Rathi Bars Suspends Operations, Anticipates Likely Default

Rathi Bars Ltd's Board of Directors, in a meeting on April 10, 2026, approved the temporary suspension of manufacturing operations. This decision was driven by several factors including income-tax search proceedings, GRAP Stage IV restrictions, an amendment to the Consent to Operate by RSPCB, and a significant 25% increase in power tariffs. The Board also noted that due to liquidity constraints, a default is likely, and the company will inform stock exchanges accordingly. To address the situation, the Board approved steps for revival and re-commencement of operations, including engaging with bankers (Axis Bank, YES Bank, HDFC Bank) for moratoriums, restructuring, and exploring fresh credit facilities. Ernst & Young and Menon & Associates were appointed as professional and legal advisors, respectively, for revival and restructuring matters. The meeting also noted the resignation of Ms. Bharti Chitkara as Company Secretary-cum-Compliance Officer.