SDC Techmedia Limited, a digital cinema technology company, has reported a net loss for the half-year ended September 30, 2025, and announced the appointment of a new independent director. The company's financial results and board changes highlight its current position and future direction.

Financial Performance

SDC Techmedia Limited experienced a challenging half-year period, reporting a net loss of Rs 59.91 lakhs for the six months ended September 30, 2025. This marks a significant shift from the profit of Rs 30.43 lakhs recorded in the corresponding period of the previous year. The company's financial results reveal several key points:

The company's total revenue declined to Rs 512.15 lakhs for the half-year, compared to Rs 1,117.10 lakhs for the same period in the previous year. This reduction in revenue, coupled with relatively stable expenses, contributed to the reported loss.

Appointment of New Independent Director

In a move to strengthen its board, SDC Techmedia Limited has appointed Ms. Megha Saraf as an Additional Non-Executive Independent Director. Key details of the appointment include:

• Appointment Date: November 14, 2025
• Term: Five-year term, subject to shareholder approval
• Tenure: From November 14, 2025, to November 13, 2030

Ms. Saraf brings valuable experience to the board:

• Qualified Company Secretary, member of the Institute of Company Secretaries of India
• 11 years of work experience in Corporate Law and Finance

The company has confirmed that Ms. Saraf is not related to any existing director and is not debarred from holding a directorship by any regulatory authority.

Audit Observations

The company's financial results come with certain audit qualifications:

1. Trade Receivables: Out of total trade receivables of Rs 7,35,40,827, the auditors were unable to confirm the adequacy of provisions made for doubtful receivables, which stands at Rs 1,03,55,356.

2. TDS Defaults: The auditors noted TDS defaults of Rs 12,68,979.02 appearing in TRACES, pertaining to the period from FY 2014-15 to FY 2025-26 (up to Q2).

Management's Response

Regarding the trade receivables, the management stated that obtaining balance confirmations from entities is beyond their control. They have identified entities likely to default and created provisions accordingly. The management believes that the net trade receivables are fully recoverable.

As for the TDS defaults, the management opines that these are mostly due to errors and that rectification will nullify the defaults.

The appointment of Ms. Megha Saraf and the company's efforts to address audit qualifications indicate SDC Techmedia's commitment to improving governance and financial management. However, the financial performance for the half-year period suggests ongoing challenges that the company will need to address in the coming months.

SDC Techmedia Limited, a company listed on the BSE SME platform, has announced a significant share pledge by its promoter, Fayaz Usman Faheed. According to a recent filing with the Bombay Stock Exchange (BSE), Faheed has pledged 39,00,000 equity shares, representing 60.07% of the company's total share capital, to Martin Happy Home Private Limited.

Details of the Share Pledge

The share pledge agreement is part of a larger financial arrangement to secure a Rs. 35.00 crore loan at an annual interest rate of 12%. This marks Faheed's second encumbrance, following a previous pledge of 9,61,200 shares (14.80% of total share capital) to the same entity.

Promoter Shareholding and Encumbrance

With this latest pledge, the total promoter shareholding in SDC Techmedia stands at 48,61,200 shares, accounting for 74.87% of the company's total share capital. Notably, 100% of the promoter's shares are now encumbered.

Loan Utilization

The funds from this loan are earmarked for a specific purpose that aligns with SDC Techmedia's business operations. According to the company's disclosure, the loan proceeds will be used for:

1. Purchasing
2. Rolling out
3. Installing Sony 4K Digital Cinema Projection Systems

This investment in advanced projection technology suggests that SDC Techmedia is focusing on enhancing its digital cinema capabilities, which could potentially improve its service offerings in the media and entertainment sector.

About the Lender

Martin Happy Home Private Limited, the entity to which the shares have been pledged, operates in diverse business areas including trading, lottery, and real estate. The company's involvement in this financial arrangement with SDC Techmedia indicates a significant business relationship between the two entities.

Loan Repayment and Utilization

The loan is structured to be repaid through monthly installments. SDC Techmedia has stated that the funds will be utilized immediately, suggesting an urgent need for the capital or a readiness to implement the planned technological upgrades.

Market Implications

This substantial share pledge by the promoter could have various implications for SDC Techmedia and its shareholders:

1. It demonstrates the promoter's commitment to funding the company's growth and technological advancement.
2. However, it also increases the promoter's financial exposure and could potentially impact the stock's market perception.
3. The investment in advanced projection systems might position SDC Techmedia more competitively in the digital cinema market.

Investors and market watchers will likely keep a close eye on SDC Techmedia's performance in the coming months to assess the impact of this financial move and the subsequent technological investments on the company's operations and market position.