Landmarc Leisure Corporation reported a net profit of ₹4.67 lakh for the quarter ended June 30, 2026 (Q1FY27), reversing a net loss of ₹18.81 lakh recorded in the same period last year. The Mumbai-based entertainment and leisure company saw its revenue from operations rise to ₹29.54 lakh from ₹2.32 lakh in Q1FY26, driven primarily by its Motion Pictures business segment. Despite the operational improvement, the company’s financial results carry significant caveats, including a qualified auditor’s opinion regarding unregularized interest-free loans and substantial security deposits held with entities under insolvency proceedings.

The Board of Directors approved the unaudited financial results and the Directors’ report for the fiscal year ended March 31, 2026, during a meeting held on August 11, 2026. In compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, the company also announced key governance appointments. Based on the Audit Committee’s recommendation, the Board appointed M/s. S M M P & Company, Chartered Accountants (Firm Registration no. 120438W), as Statutory Auditors for a term of five years, commencing from the conclusion of the 35th Annual General Meeting (AGM) until the conclusion of the 40th AGM in 2031, subject to shareholder approval.

Additionally, the Board appointed M/s. M. K. Saraswat & Associates LLP, Company Secretaries in Practice (Unique Identification No. S2012MH191300), as Secretarial Auditors for a five-year period from April 1, 2026, to March 31, 2031, also subject to shareholder approval. The company scheduled its 35th AGM for September 24, 2026, to be conducted via Video Conferencing or Other Audio-Visual Means. The cut-off date for determining voting eligibility is September 17, 2026, with the Register of Members and Share Transfer Books closed from September 18 to September 24, 2026.

Financial Performance Highlights

Revenue from operations stood at ₹29.54 lakh in Q1FY27, compared to ₹24.87 lakh in the preceding quarter and ₹2.32 lakh in Q1FY26. The Motion Pictures Business contributed ₹26.24 lakh to revenue, while Consultancy Services added ₹0.75 lakh. Other income accounted for ₹2.55 lakh. Total expenses were ₹24.87 lakh, comprising employee benefit expenses of ₹7.46 lakh, depreciation of ₹0.40 lakh, and other expenses of ₹17.01 lakh. The company reported no finance costs or tax expenses for the quarter.

Auditor Qualifications and Risk Factors

M/s. S K H D & Associates, the current statutory auditors, issued a qualified review report on the quarterly results. The qualification stems from four primary issues:

1. Unregularized Loans: The company provided interest-free loans totaling ₹476.10 lakh to four parties. Term sheets and supporting documents are still being regularized, preventing the auditors from verifying compliance with Ind AS 109.
2. IBC Deposit – SKM Real Infra: A deposit of ₹2,218.28 lakh remains with SKM Real Infra Limited (formerly SKM Fabrics), which is under resolution under the Insolvency and Bankruptcy Code (IBC). The company has filed a claim of ₹6,376.71 lakh but has not provided for doubtful debts on the deposit balance, potentially overstating profits.
3. IBC Deposit – Shree Ram Urban Infrastructure: A security deposit of ₹1,500 lakh is held by Shree Ram Urban Infrastructure Limited, which has gone into liquidation. Confirmation of this amount is unavailable, and no provision has been made, further risking profit overstatement.
4. Gratuity Provision: The company did not conduct an actuarial valuation as per Ind AS 19, relying instead on management estimates for gratuity provisions. The shortfall in this provision is currently unascertainable.

Strategic Shifts and Fund Utilization

Management indicated a strategic pivot away from wellness activities toward films, media, and TV channel businesses. Consequently, the company is restructuring agreements related to wellness centers to reallocate resources effectively. Discussions are ongoing to resolve the status of advances given to SKM Real Infra and Shree Ram Urban Infrastructure.

Regarding funds raised through a preferential issue on October 6, 2025, the company utilized ₹18.98 crore out of the total ₹19.98 crore raised. The funds are allocated for creating Marathi and Hindi movie content libraries, music content, and general corporate purposes. No deviation in the utilization of these funds was reported.

Landmarc Leisure Corporation Limited has appointed M/s. Pimple & Associates as its new Secretarial Auditor to fill the casual vacancy created by the resignation of M/s. Amit Jalan & Associates. The Board of Directors approved the appointment at a meeting held on June 22, 2026. The new firm will hold office until the conclusion of the ensuing Annual General Meeting for the F.Y. 2025-26 to conduct the Secretarial Audit of the Company.

The resignation of the previous auditor, Mr. Amit Shiv Hari Jalan, was tendered effective June 22, 2026. He confirmed that there were no material reasons for his resignation other than those stated in his resignation letter. The company received this confirmation and will file the necessary intimations with the relevant regulatory authorities.

The disclosures were made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement was also made in accordance with Part A of Schedule III of the said regulations and the SEBI Master Circular dated January 30, 2026.

Auditor Details

The following table outlines the key details regarding the change in the secretarial auditor's position:

M/s. Pimple & Associates is a firm of Practicing Company Secretaries. The firm's profile indicates a focus on providing services related to various corporate law matters, including secretarial compliance audits. The company's Whole-time Director, Mahadevan Ramanathan Kavassery, signed the intimation sent to the stock exchange.