RLF Limited has issued a clarification to BSE Limited regarding recent price movements in its shares, responding to a surveillance inquiry dated January 28, 2026. The company addressed concerns about share price volatility by confirming its compliance with disclosure requirements and attributing the movements to market-driven factors.

Response to BSE Surveillance Inquiry

The clarification came in response to BSE Limited's email seeking explanation for the movement in RLF's security price in recent trading sessions. Company Secretary Deepti Mittal signed the response on January 29, 2026, addressing the surveillance department's concerns about unusual price activity.

Disclosure Compliance and Transparency

RLF Limited emphasized its commitment to regulatory compliance, stating that it has consistently informed BSE of all events and information impacting company operations and performance. The company confirmed adherence to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, particularly Regulation 30 requirements for price-sensitive information disclosure.

No Undisclosed Information

The company categorically stated that there is no undisclosed price-sensitive information or pending announcements that would require disclosure to the stock exchange. RLF clarified that no impending corporate actions or material developments remain uninformed to BSE Limited at this time.

Market-Driven Price Movement

RLF attributed the recent share price movements to prevailing market conditions, emphasizing that such volatility appears to be market-driven rather than company-specific. The management clarified that it has no control over or knowledge of the specific reasons behind the price movements, and stressed that company leadership is not connected to the share price volatility.

Continued Compliance Commitment

The company reaffirmed its commitment to maintaining transparency and regulatory compliance going forward. RLF assured BSE that it will continue to promptly inform the exchange of all material events, information, and corporate actions as required under SEBI regulations, maintaining its track record of timely disclosures to market participants.

RLF Limited , a company operating in textile embroidery and sports academy segments, has announced its unaudited financial results for the second quarter and half-year ended September 30, 2025. The company's performance shows a significant downturn compared to the same period last year.

Financial Performance

RLF Limited reported a net loss of Rs 9.82 lakhs for the quarter ended September 30, 2025, compared to a profit of Rs 3.99 lakhs in the corresponding quarter of the previous year. The company's revenue from operations declined sharply to Rs 3.79 lakhs from Rs 14.51 lakhs year-on-year.

For the half-year period, the company posted a loss of Rs 10.71 lakhs against a profit of Rs 8.01 lakhs in the same period last year. The total revenue for H1 FY2026 stood at Rs 31.49 lakhs, down from Rs 58.89 lakhs in H1 FY2025.

Operational Highlights

The company operates in two reportable business segments: Textile Embroidery and Sports Academy. The decline in revenue suggests challenges in both these segments during the quarter.

Financial Position

As of September 30, 2025, RLF Limited's balance sheet shows:

• Total assets of Rs 3,236.20 lakhs
• Total equity of Rs 2,750.09 lakhs
• Cash and cash equivalents of Rs 8.40 lakhs

Auditor's Observations

The independent auditor's review report highlighted several issues:

1. Outstanding foreign currency receivables of USD 31,211.86 from certain debtors for more than three years.
2. Unbooked interest income of approximately Rs 0.90 lakhs on loans to group companies.
3. Unbooked finance costs of Rs 1.43 lakhs on borrowings from group companies and key management personnel.
4. Default in employee provident fund contributions of Rs 0.85 lakhs, outstanding for over four years.
5. No provision made for interest and penalties on outstanding statutory liabilities.

Management Initiatives

The company's management is taking various initiatives, including monetization of assets and recovery of long-outstanding dues, to meet its financial obligations.

Conclusion

RLF Limited faces significant challenges as reflected in its Q2 FY2026 results. The sharp decline in revenue and the shift from profit to loss indicate a difficult operating environment. The company will need to address the auditor's concerns and successfully implement its initiatives to improve its financial position in the coming quarters.