Landmarc Leisure Corporation Limited is an Indian listed entity currently undergoing a fundamental strategic transformation. With nearly **30 years** of experience in the entertainment sector, the company is pivoting away from its legacy wellness and education interests to consolidate its position as a dedicated player in **Film Production, Presentation, and Media Content Creation**. --- ### **Strategic Pivot: From Wellness to Media Conglomerate** The company is executing a deliberate exit from non-core activities to focus exclusively on the **Films, Media, and TV Channel** sectors. This reorientation is designed to address historical revenue inadequacies and build a sustainable intellectual property (IP) portfolio. * **Sector Consolidation:** Management is liquidating wellness-related assets and terminating legacy agreements to redeploy capital into high-growth entertainment verticals. * **Content Library Development:** A primary strategic objective is the creation of a proprietary library of **Marathi and Hindi movies** and **Music content**. * **Market Expansion:** The company is targeting newer geographic markets and entertainment niches to diversify its distribution reach beyond traditional formats. --- ### **Capital Allocation & Growth Funding (FY 2025-26)** In **October 2025**, the company successfully executed a significant preferential allotment to fund its new growth vertical. The company issued **18,00,00,000 Equity Shares** at **₹1.11 per share** (Face Value **₹1.00** + Premium **₹0.11**), aggregating to **₹19.98 crore**. **Planned Utilization of Proceeds:** | Purpose of Funds | Amount (INR) | Allocation (%) | | :--- | :--- | :--- | | **General Corporate Purposes** | **4,95,00,000** | **25%** | | **Marathi Movies Content Library** | **4,00,00,000** | **20%** | | **Music Content Creation** | **4,00,00,000** | **20%** | | **Working Capital Requirements** | **3,85,00,000** | **20%** | | **Hindi Movies Content Creation** | **3,00,00,000** | **15%** | | **Total Capital Raised** | **19,80,00,000** | **100%** | --- ### **Operational Infrastructure & Asset Management** Landmarc Leisure operates an asset-light model, owning no **immovable properties**. Its physical footprint is managed through strategic agreements and leased spaces. * **Revenue Sharing Model:** The company occupies commercial space via a Revenue Sharing Agreement with **SKM Real Infra Limited**. * **Space Optimization:** Management has recently reduced its physical space requirements and is actively seeking a refund of **₹12.18 crore** (out of a total **₹22.18 crore** deposit) for unutilized vacant space. * **Equipment & Intangibles:** Property, Plant, and Equipment are physically verified every **3 years**. As of **September 2025**, the company reported no **Intangible Assets**, though the new content strategy is expected to build this category significantly. --- ### **Financial Performance & Accounting Discrepancies** The company has reported persistent **net losses** and **total comprehensive losses**. Financial reporting is complicated by a long-standing "Interest-Rental Offset" arrangement with two body corporates, where the company does not recognize interest income on deposits in exchange for not providing for rental expenses. **Key Financial Metrics & Audit Adjustments (FY 2022-23):** * **Unrecognized Interest Income:** **₹2.96 Crore** for the year; **₹51.21 Crore** cumulative since inception. * **Unprovided Rental Expenses:** **₹3.18 Crore** for the year; **₹15.03 Crore** cumulative since inception. * **Working Capital Support:** The Board has authorized an unsecured loan limit of **₹10,00,00,000 (Ten Crores)** from **K U Enterprises Pvt. Ltd** to support operations. * **Capital Structure:** To manage redemption obligations, the company issued **2,54,000 0% Redeemable Cumulative Preference Shares** of **₹100 each** to existing shareholders. --- ### **Risk Profile & Regulatory Challenges** Investors should note significant financial and regulatory headwinds that have led to **qualified audit conclusions**. #### **1. Asset Recovery & Insolvency Risks** A substantial portion of the company's capital is locked in entities undergoing insolvency proceedings: * **SKM Real Infra Limited:** Currently under **Resolution (IBC)**. Landmarc has filed a claim of **₹63.77 crore** against a recorded deposit of **₹22.18 crore**. * **Shree Ram Urban Infrastructure Ltd (SRUIL):** Currently in **Liquidation**. The company holds a **₹15.00 crore** interest-free security deposit here with no provision for doubtful debt currently made. #### **2. Regulatory Compliance & Governance** * **Trading Suspension:** Trading of securities is currently **suspended** due to non-payment of **Annual Listing Fees (ALF)**. * **Internal Control Weaknesses:** Auditors have identified material weaknesses in the documentation of **Loans, Borrowings, and Financial Assets**. Specifically, **₹4.67 crore** in interest-free loans to four parties lack finalized term sheets. * **Audit Trail:** The company failed to maintain a mandatory **edit log/audit trail** as required by the Companies Act since April 1, 2023. #### **3. Contingent Liabilities** | Nature of Liability | Amount | Status / Forum | | :--- | :--- | :--- | | **Income Tax Demand** | **₹7.53 crore** | Raised by IT Authority (incl. interest) | | **Disputed Service Tax** | **₹93.03 Lakhs** | Pending with Commissioner (Appeals) | | **Disputed Income Tax** | **₹20.93 Lakhs** | Pending with Commissioner (Appeals) | | **TDS Outstanding** | **₹15.26 Lakhs** | Unpaid for >6 months (as of Sept 2023) | --- ### **Future Outlook** The company’s viability hinges on the successful recovery of deposits from **SKM** and **SRUIL** and the effective deployment of the **₹19.98 crore** raised in late 2025. Management has formally requested **SEBI** to withdraw forensic audits and uplift restrictions on promoters following the decision to exit the wellness sector. The transition to a content-heavy media model represents a high-risk, high-reward attempt to revitalize the company’s balance sheet and revenue streams.