Radaan Mediaworks has received an income tax demand of ₹1,72,49,691, impacting its cash flow obligations for the immediate term. The demand covers TDS (Tax Deducted at Source) liabilities for Financial Years 2021-22, 2022-23, and 2024-25, as notified by the Deputy Commissioner of Income-Tax, TDS Circle-2, Chennai. The company clarified that this is not a disputed liability and the full amount has already been recorded in its books of account, meaning no additional provision is required beyond what is reflected in prior limited review reports.

The order was issued under Section 156 of the Income Tax Act, 1961, based on findings under Section 201(1) and 201(1A). The specific orders are numbered TDS CIRCLE-2/CHERO2485A/2021-22, TDS CIRCLE-2/CHERO2485A/2022-23, and CIRCLE-2/CHERO2485A/2024-25. All were dated July 28, 2026. The disclosure was made pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.

Demand Details

The total figure includes interest accrued on the outstanding TDS amounts. The company stated it is examining the orders and will take appropriate steps to comply with the payment direction.

What the Numbers Show

The fact that the entire ₹1.72 crore demand was already recorded in the books indicates that Radaan Mediaworks had anticipated this liability or recognized it during previous audit cycles. This pre-provisioning shields the company from any sudden hit to net profit margins upon settlement. However, the outflow represents a reduction in operating cash reserves. The span of the demand across three non-consecutive financial years (skipping FY2023-24) suggests periodic reassessment of TDS compliance rather than a single systemic failure in one year. Investors should monitor whether similar notices arise for other periods or if this resolves the outstanding TDS queries for the cited years.

Radaan Mediaworks India Limited reported a widened net loss of ₹482.36 lakh for the financial year ended March 31, 2026, compared to a profit of ₹33.73 lakh in the previous year, as statutory auditors flagged significant uncertainty over the company's ability to continue as a going concern. The company's net worth has fully eroded, and it faces a liquidity crunch with undisputed statutory dues of ₹355.81 lakh remaining unpaid as at March 31, 2026. Despite these conditions, the financial statements were prepared on a going concern basis based on management's confidence in meeting obligations and a revival plan for the digital segment of its subsidiary, Radaan Media Ventures Pte Ltd.

The Board of Directors, in its meeting held on May 29, 2026, approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The meeting also sanctioned the re-appointment of M/s. V Padmaja & Associates as internal auditors for FY 2026-27. SRSV & Associates, the statutory auditors, issued a qualified opinion on the results, citing material uncertainty relating to going concern and investments in the subsidiary amounting to ₹9.35 lakh that have not been impaired as per IND AS 36.

Revenue from operations for the year stood at ₹534.53 lakh, a sharp decline from ₹2,287.10 lakh in the prior year. Total income for FY26 was ₹643.97 lakh, down from ₹2,288.04 lakh in FY25. The company's total expenditure for the year was ₹1,128.34 lakh, significantly lower than the ₹2,258.14 lakh recorded in the previous financial year. Finance costs for the year amounted to ₹171.41 lakh, while employee benefit expenses stood at ₹115.40 lakh.

Financial Performance

The company's financial position reflects the stress, with total equity reported as a negative figure of ₹1,590.40 lakh as at March 31, 2026, compared to negative equity of ₹1,108.12 lakh in the previous year. Current liabilities exceeded current assets, with total current liabilities at ₹1,954.61 lakh against total current assets of ₹417.40 lakh. The cash and cash equivalents balance dropped to ₹4.86 lakh by the end of FY26 from ₹83.72 lakh at the beginning of the year.

Operational and Regulatory Disclosures

The notes to the accounts reveal that the cancellation of a construction agreement and sale deed for a property resulted in the recovery of ₹1,941.54 lakh, comprising land consideration, construction payments, and capitalised interest. This transaction contributed to a net cash inflow from investing activities of ₹1,919.75 lakh for the year. Additionally, provisions of ₹29.67 lakh relating to operational activities, no longer required for settlement, were reversed and included in other income.

The company stated that it functions under a single reportable segment, 'Media & Entertainment'. It also noted that the impact of new Labour Codes notified by the Government of India was assessed and found to be not material, hence not presented as an exceptional item. The auditors' report confirmed that the figures for the quarter ended March 31, 2026, are balancing figures derived from audited annual results and previously published unaudited year-to-date figures.