Cinevista Limited's board approved the write-off of outstanding loans and advances totaling ₹2.38 crore to two dormant entities during its meeting on September 22, 2026. The decision follows the recommendation of the Audit Committee, which reviewed the financial status of the subsidiaries earlier in September.

The write-off targets Chimera Entertainment Private Limited (a subsidiary) and Heritage Productions Private Limited (an associate). Both companies have reported nil turnover for the last 10 years, with fully eroded net worth and negligible realizable assets. The board also plans to voluntarily strike off these entities following the accounting adjustment.

Financial Impact and Materiality

The total write-off amount constitutes 9.96% of Cinevista’s annual consolidated turnover for FY26 (₹23.972 crore). Since this figure remains below the 10% threshold defined under SEBI LODR Regulation 23, the transaction does not qualify as a material related party transaction requiring public shareholder approval. The Audit Committee’s approval suffices for this corporate action.

The impact is confined to standalone financial statements. In consolidated financial statements, there is no impact as inter-company loans are eliminated under Ind AS 110.

Breakdown of Write-off Amounts

Regulatory Compliance and Audit Review

The proposal adheres to Indian Accounting Standards Ind AS 27 and Ind AS 109. The Audit Committee noted that despite management efforts, these entities cannot continue operations sustainably. There are no outstanding external commercial debts or pending statutory liabilities against them. The board meeting commenced at 2:00 pm and concluded at 3:00 pm at the company’s registered office in Mumbai.

What the Numbers Show

The write-off represents a balance sheet cleanup rather than an operational loss from active business segments. With zero revenue generation over a decade and no third-party liabilities, the provision reflects the total loss of value in these downstream entities. The fact that the write-off is less than 10% of consolidated turnover allows the company to bypass shareholder approval, streamlining the process for removing non-performing assets from its standalone books.

Cinevista Limited Cinevista reported a sharp rise in top-line growth for the first quarter of FY27, with consolidated revenue jumping 62% year-on-year to ₹74.9 lakh. The Mumbai-based media and real estate company saw its net profit hold steady at ₹100.1 lakh, compared to ₹99.5 lakh in Q1FY26.

The Board of Directors approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, in a meeting held on August 12, 2026. The results were reviewed by the Audit Committee and subsequently approved by the Board.

Financial Performance

Revenue from operations grew significantly, driven primarily by the company's real estate business. The media business contributed minimally to the total income.

Note: Figures are in ₹ Lakhs. Standalone and Consolidated figures are identical.

Segment-wise Breakdown

The real estate segment remains the primary revenue driver, accounting for ₹74.7 lakh of the total revenue. The media business generated ₹1.7 lakh in revenue during the quarter.

While the real estate segment posted a profit before tax and interest of ₹234.3 lakh, the media business incurred a loss of ₹8.1 lakh. This divergence highlights the continued reliance on the joint development agreement with K Raheja Corp Real Estate Private Limited for profitability.

What the Numbers Show

A key observation is the structural shift in the cost base. Finance costs dropped sharply by 45% to ₹49.4 lakh from ₹90.3 lakh in the previous year's corresponding quarter. Despite this significant reduction in interest burden, net profit remained nearly flat. This indicates that the bulk of the operating profit generated—particularly from the real estate segment—is being offset by other unallocable expenditures or deferred tax provisions. Specifically, deferred tax expense stood at ₹75.1 lakh, consuming a substantial portion of the pre-tax profit.

Balance Sheet and Other Developments

The company disclosed that it has elected to apply the revaluation model under Ind AS 16 to its class of freehold land at Kanjurmarg, Mumbai. The revaluation reserve on this land has been transferred to retained earnings, with no impact on the Profit & Loss account.

Additionally, Cinevista noted that it has launched various YouTube channels and created content, expecting a decent flow of revenue in coming years as views and subscribers grow. The consolidated results include figures from subsidiaries Cinevista Eagle Plus Media Pvt. Ltd. and Chimera Entertainment Pvt. Ltd., as well as associate Heritage Productions Pvt. Ltd., all of which reported nil revenue and profit for the quarter.