Qualified Audit Opinion Basis

Auditors issued a qualified opinion due to several material uncertainties:

  • ₹69,402.79 lakh deposited to Sahara-SEBI Refund account regarding OFCD repayment dispute with Sahara India Real Corporation Limited & Sahara Housing Investment Corporation Limited. SEBI has seized company's Fixed Deposit and Non-Current Investment per Supreme Court order dated November 21, 2013. Fixed Deposit accounts were defrozen per Supreme Court order dated June 4, 2014, subject to transfer to SEBI special account. Matter remains pending at Supreme Court - consequential impact on financial results cannot be determined.
  • Material uncertainty over going concern: Company lacks sufficient funds to pay creditors, has long-pending debtor recoveries, stuck advances for movie production due to inability to invest further funds, and low operational performance compared to peers.
  • SEBI has initiated penal actions per circular no. SEBI/HO/CFD/CFD-SEC-1/P/CIR/2020/12 dated January 22, 2020 due to non-compliance with Regulation 33. Trading of company shares has been suspended for a long period, and SEBI may freeze Promoters' Demat accounts.
  • ₹19,160.00 lakh content advances given to producers/film houses/actors for acquisition/development of film content/rights remain pending with substantial delay in project completion. Recoverability is doubtful given company's financial position.
  • Bank balance confirmation for accounts with book balance of ₹212.92 lakh could not be obtained as accounts are dormant. Potential adjustments required are not determinable.
  • Investment in subsidiary carried at cost exceeds subsidiary's net assets including goodwill, but impairment testing not performed. Loss would be higher and investment value lower if impairment reviewed.
  • License period for media content television rights given to related party has expired without new agreement, though content continues to be used. Management states fresh agreement will be entered soon.

Emphasis of Matter

  • Gratuity Trust was dissolved and refunded amount, but company hasn't created new recognized gratuity fund trust or made alternative arrangements.
  • Bonus liability of ₹26.03 lakh up to FY 2021-22 remains unpaid beyond statutory eight-month period, subjecting company to penalty under Payment of Bonus Act, 1965.

Financial Results (₹ in Lakhs)

For Year Ended March 31, 2026:

  • Total Income from Operations (net): ₹2.05 (Previous Year: ₹20.92)
  • Net Loss before tax: ₹(80.02) (Previous Year: ₹(60.72))
  • Net Loss after tax: ₹(80.02) (Previous Year: ₹(60.72))
  • Total Comprehensive Loss: ₹(78.28) (Previous Year: ₹(63.53))
  • Equity Share Capital: ₹2,152.50 (unchanged)
  • Reserves: ₹15,813.75 (Previous Year: ₹15,892.03)
  • Basic EPS: ₹(0.36) (Previous Year: ₹(0.30))
  • Diluted EPS: ₹(0.36) (Previous Year: ₹(0.30))

For Quarter Ended March 31, 2026:

  • Total Income from Operations (net): ₹1.73
  • Net Loss before tax: ₹(31.98)
  • Net Loss after tax: ₹(31.98)
  • Total Comprehensive Loss: ₹(30.24)
  • Basic EPS: ₹(0.14)
  • Diluted EPS: ₹(0.14)

Detailed Income Statement (Year Ended March 31, 2026)

  • Revenue from Operations: ₹2.05
  • Other Income: Not separately quantified
  • Total Expenses: ₹82.06
  • Employee benefits expense: ₹56.82
  • (Increase)/decrease in inventory: ₹24.54
  • Other expenses: ₹0.70
  • Depreciation & amortization: Not separately quantified
  • Finance costs: Negative ₹0.20 (credit)

Balance Sheet Position as at March 31, 2026 (₹ in Lakhs)

Assets:

  • Total Assets: ₹23,053.38
  • Non-current Assets: ₹10,766.58
  • Property, plant and equipment: ₹18.46
  • Investments: ₹10,331.28
  • Other financial assets: ₹5.00
  • Current tax assets (net): ₹411.84
  • Current Assets: ₹12,286.81
  • Other financial assets: ₹9.95
  • Trade receivables: ₹11.19
  • Cash and cash equivalents: ₹15.70
  • Bank balances (other): ₹4.52
  • Other current assets: ₹21.29

Liabilities and Equity:

  • Total Equity: ₹17,966.25
  • Equity Share Capital: ₹2,152.50
  • Other Equity: ₹15,813.75
  • Non-current Liabilities: ₹42.72
  • Net employee defined benefit liabilities: ₹42.72
  • Current Liabilities: ₹5,044.41
  • Trade payables: ₹4,814.71
  • Other financial liabilities: ₹212.35
  • Net employee defined benefit liabilities: ₹17.35

Additional Information

  • Financial results prepared in compliance with Indian Accounting Standards (Ind AS)
  • Results reviewed by Audit Committee and approved by Board of Directors on May 30, 2026
  • Previous period figures regrouped/rearranged for consistency
  • Full results available on BSE website (www.bseindia.com) and company website