GV Films Limited reported a standalone net profit of ₹21.72 lakh for the financial year ended March 31, 2026, reversing the net loss of ₹11.94 lakh recorded in the previous year. The company filed revised audited financials with the exchange to correct discrepancies identified by the exchange. The statutory auditors, A. John Morris & Co., issued a qualified opinion on the standalone and consolidated financial results, citing significant gaps in accounting records and compliance.

Audit Qualifications and Financial Gaps

The qualification stems from the company's failure to recognise defined benefit obligations for gratuity and pension liabilities in accordance with Ind AS 19. Consequently, the auditors stated they were unable to comment on the correctness of employee benefit costs charged to the Statement of Profit and Loss. The audit report further highlighted that the auditors did not receive balance confirmations for trade payables, trade receivables, investments, loans, advances, and capital work in progress. While management represented that these balances are realisable or settleable in the ordinary course of business, the absence of confirmations prevented the auditors from determining if provisions for doubtful debts or write-offs were necessary. Additionally, the auditors noted the presence of several inoperative bank accounts and were unable to form an opinion on the correctness of their balances due to missing confirmations.

Attention was also drawn to the non-furnishing of the underlying agreement for Foreign Currency Convertible Bonds (FCCBs) issued by the company. While management provided details of interest payable amounting to ₹61.49 lakh, the lack of original documentation meant the auditors could not verify the outstanding balance of the FCCBs or the accuracy of the interest liability. The auditors also flagged a material departure from Ind AS 37 regarding a TDS demand of ₹16.96 lakh, which was disclosed as a contingent liability rather than being provided for.

Financial Performance and Liabilities

For the year ended March 31, 2026, the company reported total income of ₹521.07 lakh, an increase from ₹420.15 lakh in the previous year. This rise was primarily driven by other income, which stood at ₹297.82 lakh. Finance costs for the period increased to ₹394.45 lakh from ₹319.86 lakh in the prior year. On the balance sheet, total assets increased to ₹1,736.17 crore as of March 31, 2026, up from ₹1,701.93 crore a year earlier.

The financial statements disclose several contingent liabilities and ongoing legal proceedings. These include a tax demand of ₹1,213 lakh for Assessment Year 2016-17, against which the company has filed an appeal, and a Goods and Services Tax demand of ₹341.80 lakh. The company also faces a show cause notice from the Commissioner of Customs Appeals under FEMA, with proceedings currently pending adjudication.

Regulatory and Governance Issues

The company received a notice from the Bombay Stock Exchange (BSE) directing the suspension of trading in its equity securities effective March 2, 2026, due to non-compliance with Regulation 17(1) of the SEBI LODR Regulations regarding board composition. Consequently, the promoter group's shareholding has been frozen. To address this, the company reconstituted its board by appointing new independent and non-executive directors. The board also approved availing secured financial assistance of up to ₹95 crore from M/s Sanctum Trading Corporation Private Limited and evaluated a proposal for issuing Redeemable Preference Shares up to ₹50 crore.

Key Financial Metrics

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE395B01048/ad8cfb8f-f7fa-4438-a8c1-b5413b14cfb0.pdf

GV Films Limited announced significant board changes and strategic discussions following its board meeting held on March 10, 2026. The meeting, conducted at the company's registered office in Mumbai, resulted in key appointments and important financial proposals that could shape the company's future direction.

New Independent Director Appointments

The board approved the appointment of three new independent directors, each bringing distinct expertise to strengthen the company's leadership structure.

Director Profiles and Expertise

Amit Kumar Bera joins the board with extensive experience in media and hospitality industries. According to the company, his presence and advisory capabilities are expected to help flourish the business significantly.

Samrat Mondal brings valuable financial services experience spanning over 12 years, along with expertise in media and hospitality sectors. The company expects his guidance and strategic input to benefit operations in the coming period.

Dewesh Kumar contributes the most extensive experience among the new appointees, with 28 years of professional expertise across diverse sectors including hospitality, healthcare, marketing, finance, and legal matters. His background includes leadership and advisory positions across corporate sector, central government, state government bodies, and reputed international organizations.

Strategic Financial Proposal

The board also discussed a significant financial proposal involving the issuance of redeemable preference shares. The proposal covers issuing shares worth up to Rs. 50 crores, which could be executed in one or more tranches based on the company's requirements and market conditions.

Meeting Details

The board meeting commenced at 11:30 a.m. and concluded at 2:00 p.m. at the company's registered office located at Gala No B 14 B 1st Floor Pravasi Industrial Estate, Goregaon Mulund Link Road, Goregaon East, Mumbai. The meeting was conducted under the chairmanship of CEO & Managing Director Balagiri Vethagiri and concluded with a vote of thanks to the chair.

These appointments and strategic discussions reflect GV Films Limited's commitment to strengthening its governance structure while exploring growth financing options through preference share issuance.