Company Overview
Picturehouse Media Limited (Scrip Code: 517556) is a listed company engaged in movie production and related activities. The document represents the Annual Report for Financial Year 2025-26 and notes to consolidated financial statements, with notice for the 27th Annual General Meeting scheduled for September 30, 2026.
Financial Performance
Standalone Results:
- Total Income: ₹564.15 lakhs (FY25: ₹556.45 lakhs)
- Profit Before Tax: ₹46.46 lakhs (FY25: ₹80.69 lakhs)
- Profit After Tax: ₹47.63 lakhs including other comprehensive income (FY25: ₹81.87 lakhs)
- Basic EPS: ₹0.09 (FY25: ₹0.15)
- Negative Net Worth: ₹4,024.77 lakhs (FY25: ₹4,073.75 lakhs)
Consolidated Results:
- Net Profit: ₹57.24 lakhs (significantly lower than FY25: ₹208.53 lakhs)
- Revenue from Operations: ₹3.29 lakhs (FY25: ₹3.49 lakhs)
- Negative Net Worth: ₹6,284.47 lakhs (FY25: ₹6,342.88 lakhs)
- Total Borrowings: ₹23,471.30 lakhs (FY25: ₹21,515.72 lakhs)
Auditor Qualifications & Concerns
Statutory Auditors (RPSV & Co.) issued qualified opinion with three main concerns:
1. Inventory Recoverability: ₹3,017.94 lakhs in film production expenses advances to artists and co-producers. Management claims ₹138.09 lakhs relates to 3 movies in progress but auditors lack documentary evidence for balance ₹2,879.83 lakhs.
2. Investment Impairment: ₹2,521.74 lakhs investment in PVP Capital Limited (subsidiary with negative net worth of ₹616.19 lakhs). Subsidiary's NBFC registration cancelled by RBI, defaulted on bank loans, and not remitting statutory dues.
3. Going Concern: Material uncertainty exists due to negative net worth, continuous losses, adverse financial ratios, non-payment of statutory dues, and impact of above observations.
Asset Quality and Provisions
The company has significant exposure to impaired assets:
- Film production expenses (inventory): ₹3,017.94 lakhs (FY25: ₹2,956.52 lakhs)
- Advances for film finance: ₹16,516.47 lakhs with impairment allowance of ₹16,515.80 lakhs
- Cumulative provision: ₹14,262.35 lakhs for expected credit loss on movie finance loans of ₹14,263.02 lakhs
- Trade receivables: ₹126.00 lakhs,全部 overdue 1-2 years
Subsidiary Information
PVP Capital Limited, a wholly-owned subsidiary, has negative net worth of ₹616.19 lakhs and had its NBFC registration cancelled by RBI. New Cyberabad City Projects Private Limited became a subsidiary effective 1 October 2023 after PHML acquired 81% stake for ₹3,256.44 lakhs from PVP Ventures Limited.
AGM Resolutions
Ordinary Business:
1. Adoption of audited standalone financial statements for FY26
2. Adoption of audited consolidated financial statements for FY26
Special Business:
3. Appointment of ARS & Associates as Secretarial Auditors for 5 years (FY27-FY31)
4. Approval of material related party transactions up to ₹50 crores with BVR Malls, PVP Ventures, New Cyberabad, PVP Capital, and PVP Cinema
5. Appointment of Mr. Dileep Badey as Independent Director for 5 years
6. Appointment of Ms. P.J. Bhavani as Managing Director for 5 years with remuneration of ₹18 lakhs
Contingent Liabilities and Risks
The Group has contingent liabilities of ₹2,029.38 lakhs comprising service tax (₹1,893.40 lakhs) and income tax (₹135.98 lakhs). Significant compliance issues identified include related party transactions without prior shareholder approval, delay in submitting quarterly results, and various regulatory non-compliances.
Corporate Governance and Shareholding
Board composition includes Mr. Prasad V. Potluri (Managing Director), Mr. Subramanian Parameswaran (Independent Director), Mrs. P.J. Bhavani (Non-Executive Woman Director), and Mr. Dileep Badey (Independent Director). Major shareholders include Jhansi Sureddi (22.50%), PVP Global Ventures Private Limited (21.51%), and PVP Media Ventures Private Limited (23.54%).
Outlook
Despite negative net worth and continuous losses, the financial statements were prepared on a going concern basis based on management's assessment of future movie projects pipeline and lender support through extended repayment periods.