Colorchips New Media Limited has recommended the appointment of Shankar Ravi Chaganty as its Managing Director, a move aimed at leveraging his extensive administrative experience to steer the company’s operations. The Board of Directors approved the recommendation during a meeting held on July 30, 2026, and will seek final approval from shareholders at the 41st Annual General Meeting (AGM) scheduled for August 25, 2026.

The appointment of Shankar Ravi Chaganty, who holds DIN 09657821, is subject to shareholder consent. The Board cited his strong credentials and diverse knowledge in accountancy as key reasons for the selection. Chaganty brings over 34 years of experience in administration, including liaison, purchase, marketing, and infrastructure maintenance. He holds a Bachelor of Commerce degree from Andhra University.

The term of appointment is fixed for five consecutive years, effective from May 26, 2026. This start date precedes the board meeting date, indicating that Chaganty may have assumed interim responsibilities or that the term is backdated to align with operational needs, pending formal ratification.

Key Details of the Appointment

Regulatory Disclosures and AGM Schedule

The company disclosed the appointment details in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, read with SEBI Circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. The disclosure confirms that Shankar Ravi Chaganty is not related to any existing directors of the company.

The 41st AGM will be held on August 25, 2026, at 11:30 AM through Video Conference or Other Audio Visual Means (VC/OAVM). Alongside the appointment resolution, shareholders will also approve the 41st Annual Report for FY 2025-26. The Board meeting concluded at 5:00 PM on July 30, 2026, with K. Srinivasa Rao, Chief Financial Officer, signing off on the communications.

What This Means for Stakeholders

The appointment signals a focus on strengthening the company’s administrative and financial oversight. With over three decades of experience in multi-tasking administrative roles, Chaganty’s background in accountancy and infrastructure management positions him to handle complex operational challenges. Shareholders must attend the virtual AGM on August 25, 2026, to vote on this critical leadership change.

Colorchips New Media reported a narrowed standalone net loss of ₹3.28 crore for the quarter ended March 31, 2026, compared to a net loss of ₹3.99 crore in the corresponding period of the previous year. The company's revenue from operations rose to ₹58.66 lakh in Q4FY26 from ₹39.78 lakh in Q4FY25. For the full financial year ended March 31, 2026, the company recorded a net loss of ₹16.24 crore on total income of ₹3.80 crore.

The Board of Directors reviewed the audited financial results at its meeting held on May 30, 2026. The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS). The company operates in a single segment, Digital Media, and therefore segmental reporting was not provided.

Financial Performance

The company's total expenses for Q4FY26 stood at ₹39.09 lakh, a decrease from ₹43.64 lakh in the same quarter of the previous year. Employee benefits expense for the quarter was ₹14.57 lakh, while depreciation and amortisation expense amounted to ₹21.23 lakh. Finance costs were reported at ₹638.80.

For the year ended March 31, 2026, total expenses increased to ₹20.08 crore from ₹18.58 crore in the previous year. The company reported a deferred tax of ₹40.12 lakh for the year. The paid-up equity share capital remained unchanged at ₹17.01 crore, with a face value of ₹2 each.

Auditor's Report and Internal Controls

Pavan & Associates, the statutory auditors, issued an unqualified opinion on the standalone financial statements. However, the auditors issued a disclaimer of opinion on the internal financial controls with reference to financial statements. The report stated that the system of internal financial controls was not made available to enable the auditors to determine if the company had established adequate controls or whether they were operating effectively as of March 31, 2026.

The auditor also noted that the company used accounting software where the feature of recording audit trail (edit log) facility was not enabled and had not operated throughout the year for all relevant transactions. The company reported cash losses of ₹75 lakh for the current financial year and ₹914 lakh for the immediately preceding financial year. No dividend was declared or paid during the year.