Sri Adhikari Bros. Tele Network Completes Resolution Plan Ahead of Schedule, Reports Q1 Results

Sri Adhikari Bros. Tele Network Limited (SABTNL) has announced the successful completion of its resolution plan one year ahead of schedule, marking a significant milestone in the company's financial recovery. The media and entertainment firm also released its unaudited financial results for the first quarter, revealing ongoing challenges in revenue generation.

Early Completion of Resolution Plan

SABTNL informed shareholders on May 27 that it had fulfilled all obligations under its resolution plan, paying off all financial and operational creditors as stipulated. This early completion demonstrates the company's commitment to financial restructuring and its ability to meet its debt obligations ahead of the projected timeline.

Q1 Financial Performance

For the quarter ended June 30, SABTNL reported the following key financial metrics:

Particulars	Q1 (₹ in Lacs)	Q1 PY (₹ in Lacs)
Revenue from Operations	3.47	100.00
Other Income	33.60	-
Total Income	37.07	100.00
Total Expenditure	220.64	93.52
Net Loss	(183.57)	6.48

The company's revenue from operations saw a significant decline compared to the same quarter last year, dropping from ₹100.00 lacs to ₹3.47 lacs. However, other income of ₹33.60 lacs partially offset this decrease. Despite these challenges, SABTNL reported a net loss of ₹183.57 lacs for the quarter, compared to a profit of ₹6.48 lacs in the previous year's corresponding quarter.

Strategic Initiatives and Future Outlook

SABTNL's management has emphasized its focus on collaborating with young talent to execute new ideas and drive business growth. The company is ramping up efforts to adapt to the evolving media and entertainment industry landscape, aiming to leverage its pioneering status in the field.

Corporate Governance and Transparency

In line with its commitment to transparency, SABTNL has appointed CS Krina Gokulkumar Shah as the Secretarial Auditor for a term of five consecutive years, subject to shareholder approval. This appointment aligns with the company's efforts to maintain strong corporate governance practices.

Divestment of Subsidiary

The Board of Directors has approved the sale of SABTNL's 35.68% stake in its subsidiary, Westwind Realtors Private Limited (WRPL), to Sri Adhikari Brothers Assets Holding Private Limited (SABAHPL). This transaction, valued at approximately ₹18.20 crores, is expected to be completed by August 31, after which WRPL will cease to be a subsidiary of SABTNL.

While SABTNL faces ongoing financial challenges, as evidenced by its Q1 results, the company's successful completion of its resolution plan and strategic initiatives demonstrate its commitment to financial recovery and future growth in the dynamic media and entertainment sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.07%	+0.06%	-12.76%	+65.78%	-19.57%	+1,882.91%

Sri Adhikari Bros. Tele Network Limited (SABTNL) has announced several significant developments in its recent board meeting, including financial results for the first quarter, appointment of a new auditor, and plans to divest its stake in a subsidiary.

Financial Performance

The company reported a standalone net loss of Rs. 183.57 lakhs for the quarter, compared to a profit of Rs. 6.48 lakhs in the same quarter last year. The consolidated net loss stood at Rs. 185.50 lakhs. Revenue from operations saw a sharp decline, dropping to Rs. 3.47 lakhs from Rs. 100.00 lakhs year-over-year on a standalone basis.

Particulars (in Rs. Lakhs)	Q1 (Standalone)	Q1 (Standalone) YoY	Q1 (Consolidated)	Q1 (Consolidated) YoY
Revenue from Operations	3.47	100.00	3.47	109.18
Total Income	37.07	100.00	37.07	109.29
Net Profit/(Loss)	(183.57)	6.48	(185.50)	5.37

The company's auditors noted a material uncertainty regarding SABTNL's ability to continue as a going concern, citing higher current liabilities than assets and the inability to generate substantial operational revenue.

New Auditor Appointment

The board approved the appointment of CS Krina Gokulkumar Shah as the Secretarial Auditor for a five-year term. This appointment is subject to shareholder approval at the upcoming Annual General Meeting.

Subsidiary Divestment

SABTNL announced plans to sell its 35.68% stake in its subsidiary, Westwind Realtors Private Limited (WRPL), to Sri Adhikari Brothers Assets Holding Private Limited (SABAHPL) for Rs. 18.20 crores. The transaction involves the sale of premises shares and parking spaces across multiple floors of the Adhikari Chambers Building in Mumbai.

The sale includes:

1,00,000 Class B Premises Shares and 14,400 parking space shares (1st Floor) for Rs. 6.06 crores
1,05,000 Class A Premises Shares and 16,200 parking space shares (4th Floor) for Rs. 6.07 crores
1,05,000 Class A Premises Shares and 16,200 parking space shares (5th Floor) for Rs. 6.07 crores

This transaction has been approved as a related party transaction, with SABAHPL being identified as a related party to SABTNL.

Other Notable Points

The company has fully repaid its bank liabilities in accordance with the NCLT-approved Resolution Plan, although it's yet to receive No Dues Certificates from Dhanlaxmi Bank and Central Bank of India.
The impact of pending direct and indirect tax assessments has not been accounted for in the quarter.

As SABTNL navigates through these significant changes, the company's management remains committed to enhancing shareholder value through sustainable growth strategies. However, the financial results and auditor's notes highlight ongoing challenges that the company needs to address to ensure its long-term viability.