Board Meeting Details

The Board meeting commenced at 12:00 PM and concluded at 7:30 PM on 29th May 2026.

Key Approvals and Updates

1. Financial Results Approval: Board approved Audited Standalone and Consolidated Financial Statements for quarter and financial year ended 31st March 2026, as recommended by the Audit Committee. Financial results along with statutory auditors' report including unmodified opinion are enclosed as Annexure-1.

2. Large Corporate Disclosure: Submitted disclosure as per SEBI circular regarding large corporate status (Annexure-2), indicating nil qualified borrowings at start and end of FY2025-26, and no incremental borrowing or debt securities issuance during the year.

3. Internal Auditor Appointment: Appointed M/s. Phanindra & Associates Chartered Accountants as Internal Auditors for FY2026-2027, as recommended by Audit Committee. Details provided as per Regulation 30 and SEBI Master Circular in Annexure-3.

4. Director Appointment: Appointed Mr. Dileep Badey (DIN: 11493915) as Additional Non-Executive Independent Director effective 29th May 2026, to hold office till ensuing AGM. Profile details: over 15 years experience in engineering, project management and real estate development; holds Bachelor's degree in Civil Engineering and postgraduate qualification in Advanced Construction Management from NICMAR. Details in Annexure-4.

5. Committee Reconstitution: Approved reconstitution of various Board committees effective 29th May 2026 (Annexure-5):

  • Audit Committee: Mr. Subramanian Parameswaran (Chairman), Mr. Prasad Veera Potluri (Member), Mr. Dileep Badey (Member)
  • Nomination and Remuneration Committee: Mr. Dileep Badey (Chairman), Mr. Subramanian Parameswaran (Member), Mr. Poonamallee Jayavelu Bhavani (Member)
  • Stakeholders Relationship Committee: Mr. Dileep Badey (Chairman), Mr. Subramanian Parameswaran (Member), Mr. Poonamallee Jayavelu Bhavani (Member)
  • Corporate Social Responsibility Committee: Mr. Subramanian Parameswaran (Chairman), Mr. Dileep Badey (Member), Mr. Poonamallee Jayavelu Bhavani (Member)

6. Resignation: Accepted resignation of Ms. Hemalatha Vijayakumar, Company Secretary and Compliance Officer, effective close of business hours on 29th May 2026. Details in Annexure-6.

Standalone Financial Performance (FY2025-26)

Income Statement Highlights (₹ lakhs):

  • Revenue from operations: ₹1.61 (Q4), ₹1.10 (FY); Other Income: ₹133.48 (Q4), ₹548.52 (FY)
  • Total Income: ₹135.09 (Q4), ₹549.62 (FY)
  • Employee benefit expenses: ₹14.06 (Q4), ₹16.30 (FY)
  • Finance Cost: ₹87.27 (Q4), ₹284.26 (FY)
  • Profit before tax: ₹13.50 (Q4), ₹218.56 (FY)
  • Net Profit: ₹13.50 (Q4), ₹218.56 (FY)
  • Total Comprehensive Income: ₹14.67 (Q4), ₹219.74 (FY)
  • EPS: ₹0.03 (Q4 basic & diluted), ₹0.42 (FY basic & diluted)

Balance Sheet Position (as at 31st March 2026, ₹ lakhs):

  • Property, Plant & Equipment: ₹8.55
  • Investments: ₹5,810.12
  • Inventories: ₹3,017.94 (mainly films under production)
  • Cash and cash equivalents: ₹5.06
  • Total Assets: ₹9,015.46
  • Equity Share Capital: ₹5,225.00
  • Other Equity: negative ₹9,249.77
  • Total Equity: negative ₹4,024.77
  • Borrowings: ₹2,937.03 (non-current)
  • Total Liabilities: ₹13,040.23

Cash Flow (FY2025-26, ₹ lakhs):

  • Net cash used in operating activities: ₹565.00
  • Net cash used in investing activities: ₹3.86
  • Net cash from financing activities: ₹568.37
  • Net decrease in cash: ₹0.49

Consolidated Financial Performance (FY2025-26)

Income Statement Highlights (₹ lakhs):

  • Total Income: ₹490.65 (FY)
  • Profit before tax: ₹57.24 (FY)
  • Net Profit: ₹57.24 (FY)
  • Total Comprehensive Income: ₹58.40 (FY)
  • Net profit attributable to owners: ₹52.82 (FY)
  • EPS: ₹0.11 (FY basic & diluted)

Balance Sheet Position (as at 31st March 2026, ₹ lakhs):

  • Total Assets: ₹29,144.47
  • Inventories: ₹25,595.74
  • Equity Share Capital: ₹5,225.00
  • Other Equity: negative ₹12,198.60
  • Non-controlling interest: ₹689.13
  • Total Equity: negative ₹6,284.47
  • Borrowings: ₹23,471.30 (₹21,664.30 non-current + ₹1,807.00 current)

Critical Notes to Financial Statements

1. Film Production Inventory: Expenditure on films under production amounting to ₹3,017.94 lakhs mainly comprises payments to artists and co-producers. Company evaluating options for optimal utilization and confident of realizing entire value, though auditors have qualified conclusion.

2. Subsidiary Investment: PVP Capital Limited (wholly-owned subsidiary) has negative net worth of ₹616.19 lakhs, surrendered NBFC registration to RBI, defaulted on bank loans, and not remitted statutory dues. Board believes no impairment needed for ₹2,521.74 lakhs investment, but auditors disagree and qualified conclusion.

3. Going Concern: Company has negative net worth of ₹4,024.77 lakhs (standalone) and ₹6,284.47 lakhs (consolidated), incurring continuous losses. Board believes going concern appropriate due to cost reduction, lender support, future movie projects, and potential merger with holding company. Auditors highlight material uncertainty regarding going concern.

4. Segment Reporting: Board considers movie production and financing as single operation, hence segment reporting under Ind AS 108 not applicable.

5. Quarterly Figures: Figures for quarters ended March 2025 and March 2026 are balancing figures between audited full year and published unaudited figures up to third quarter.

Auditor's Qualified Opinion

Statutory auditors R P S V & Co. issued qualified opinion on both standalone and consolidated results citing:

1. Doubtful recovery of ₹2,879.83 lakhs from film production advances without sufficient documentary evidence

2. Inability to assess impairment of ₹2,521.74 lakhs investment in PVP Capital Limited

3. Material uncertainty regarding going concern due to negative net worth, continuous losses, and adverse financial ratios

Additional Information

Results available at company website www.pvpcinema.com and www.bseindia.com