Summary of Key Information:
Reporting Period: Quarter ended June 30, 2026 (Q1 FY27)
Nature of Filing: Outcome of Board Meeting and Unaudited Financial Results
Audit Opinion:
Qualified Review Report - Auditors unable to express conclusion due to significance of matters including non-consolidation of subsidiary and overdue intercompany receivables
Key Financial Highlights [₹ in lakhs]:
Standalone Results:
Revenue from Operations: ₹39 lakh (vs ₹560 lakh in Q1 FY26, -93% YoY)
Total Income: ₹73 lakh (vs ₹2,376 lakh in Q1 FY26, -97% YoY)
Net Profit: ₹(743) lakh loss (vs ₹(6,082) lakh loss in Q1 FY26)
EPS: ₹(0.77) (vs ₹(6.39) in Q1 FY26)
Other Equity: ₹(58,593) lakh (negative equity)
Consolidated Results:
Revenue from Operations: ₹50 lakh (vs ₹587 lakh in Q1 FY26, -91% YoY)
Total Income: ₹1,108 lakh (vs ₹2,293 lakh in Q1 FY26, -52% YoY)
Net Profit: ₹(1,043) lakh loss (vs ₹(7,855) lakh loss in Q1 FY26)
EPS: ₹(1.09) (vs ₹(8.19) in Q1 FY26)
Other Equity: ₹(64,796) lakh (negative equity)
Segment-wise Performance:
The Company operates on a single reportable segment: co-production, acquisition and distribution of Indian language films in multiple formats
Corporate Actions:
- Approved Notice of 32nd Annual General Meeting
- Approved Directors Report with Annexures, Corporate Governance Report, and Management Discussion Analysis Report
- Approved Book Closure Dates and Record date for 32nd AGM
- Approved E-Voting Facility for 32nd AGM
- Appointment of Mr. C R Bhagwat as Scrutinizer for 32nd AGM
Significant Intercompany Receivables:
- Trade receivables of ₹48,813 lakh from Eros Worldwide FZE (long overdue)
- Trade payables of ₹32,155 lakh to Eros Worldwide FZE
- Net trade receivables of ₹16,658 lakh from Eros Worldwide FZE after setoff
- Additional receivables of ₹8,184 lakh (net) from Eros International Limited UK (liquidated May 2026)
- Receivables of ₹3,566 lakh from Eros International USA Inc.
- Total provision of ₹28,646 lakh made for expected credit loss (including ₹208 lakh additional provision in Q1 FY26 due to foreign exchange)
- Application filed with RBI for approval of net remittance and to condone delay
SEBI Proceedings:
- Interim Ex-Parte Order dated June 22, 2023 with certain allegations and restrictions
- Confirmatory Order dated October 13, 2023
- Show Cause Notice received July 18, 2024
- Matter currently listed for hearing on August 17, 2026 at SAT
- Content advances of ₹101,601 lakh subject to SEBI scrutiny and investigation
Enforcement Directorate Action:
- Search operation carried out under FEMA 37(3) at Registered Office concluded February 6, 2025
- Company cooperating with authorities
Subsidiary Consolidation Issue:
- Colour Yellow Production Private Limited (CYPPL) not consolidated due to unavailability of financial statements
- Dispute relating to management and control of CYPPL
- NCLT petition dismissed April 28, 2026, appeal filed with NCLAT
- Matter listed for hearing on August 17, 2026
Other Significant Information:
Going Concern Uncertainty:
- Company incurred loss before tax of ₹743 lakh (standalone) and ₹1,043 lakh (consolidated) for Q1 FY26
- Net worth fully eroded
- Defaulted on payment of statutory dues on certain occasions
- Management implementing measures: restricting borrowing facilities, cost saving initiatives, long-term contracts to monetize film/music library
- Financial statements prepared on going concern basis
Auditor's Limited Review Scope:
- Review covered 9 subsidiary entities
- One subsidiary (Digicine PTE Limited) reviewed by other auditor
- One subsidiary's results not reviewed but considered immaterial