V R Films & Studios Ltd Forensic Report - SOIC x StockScans Report

as of Aug 2026

V R Films & Studios Ltd's record shows a clean statutory audit history: seven consecutive unqualified opinions, no auditor resignations, and nil contingent liabilities in three reported years (FY2025-26, FY2023-24, and FY2022-23). But the financial statements carry internal contradictions that matter more than the clean opinions: the company says it has no borrowings while disclosing ₹8 crore of bank facilities and director-secured debt, and a change in inventory valuation decreased profit by ₹2.99 crore in a year the company reported a loss. Promoter directors are seeking five-year reappointments with remuneration caps that exceed the company's entire FY26 profit.

Key findings

  1. Inventory valuation change decreased FY2025 profit by ₹2.99 crore; first-ever consolidated statements present non-comparable figures Major - The company changed its inventory valuation method for Film distribution rights from "Release basis" to "License period basis" in FY2024-25, citing a shift in viewership to OTT; had the method not changed, profit would have been higher by ₹2,98,67,177. The new policy values rights pro-rata over the licence period of 7 to 10 years for Films, 3 to 5 years for OTT series. The first-ever consolidated statements in FY2025-26 carry comparative figures that are standalone numbers of the parent and "are therefore not comparable with the current year consolidated figures".
  2. Reported "no borrowings" contradicts actual bank facilities and director-secured debt disclosed elsewhere Major - The FY2025-26 standalone statements state "the company's capital structure is equity-based with no financing through borrowings," yet the company had undrawn cash credit facilities at period end. As at 31 March 2024, borrowings included a 5.39 crore Deutsche Bank facility secured against the director's residential property, plus HDFC Bank and IDBI Bank working capital facilities. The Integrated Filing dated 11 February 2025 states total financial indebtedness as ₹0 crore, contradicting the borrowings disclosed as at 31 March 2024.
  3. Company incorporated its first-ever subsidiary in September 2025, shifting to a consolidated reporting group Minor - V R Films & Studios Ltd incorporated subsidiary Krismicbon AI Tech Private Limited on 19 September 2025, its first subsidiary since at least FY2020-21. The company had reported no holding, subsidiary, joint venture or associate companies in FY2021-22 through FY2023-24. The investment was ₹6 lakhs, and consolidated PAT for FY2025-26 was ₹0.96 crore versus standalone PAT of ₹-0.69 crore.
  4. Unqualified audit opinions with late-fee ROC filings and cash losses Minor - B. L. Dasharda & Associates issued an unqualified opinion on the standalone Ind AS financial statements for each year from FY2020 through FY2026. Key Audit Matters were reported in all years except FY2026, where no key matters were communicated. The company filed certain E-forms with the Registrar of Companies with additional/late fees in FY2025-26 and FY2023-24. CARO reported cash losses in FY2025 and FY2024, but not in FY2026, FY2023, or FY2022.
  5. Operating cash flow has exceeded reported profit, but no dividend since FY2022 and 85% short-term borrowings Minor - Operating cash flow was 3.76 crore in FY2023 versus net profit before tax of 1.11 crore, and 3.77 crore in FY2022 versus 2.58 crore. No dividend was recommended for FY2025-26 or FY2022-23, while a dividend of Re. 1/- per share was recommended for FY ended 31st March 2022. Short-term borrowings comprised 85% of total borrowings (₹6.40 crore of ₹7.57 crore) as of FY2026.
  6. Revenue is concentrated in a single segment with no credit-loss provisioning on receivables Minor - The company has only one reportable segment, Film Distribution and Dubbing, for FY2025-26. No allowance for expected credit losses on trade receivables has been recognised under the simplified approach in FY2025-26 standalone or consolidated statements. Trade receivables outstanding for over six months, considered good, were INR 98,01,828 as at 31 Mar 2021, down from INR 2,57,24,069 in the prior year.
  7. Statutory auditor completes five-year term and is being replaced, with no resignation during any covered year Clean - M/s B. L. Dasharda & Associates served as statutory auditor from appointment at the 13th AGM on 30th September 2021 for five consecutive years, with their term concluding at the 18th AGM. The 18th AGM notice dated 13th August 2026 proposes appointing M/s Azad Jain & Co for five years. CARO reports for FY2025-26 and FY2022-23 both state "No resignation of Statutory Auditors during the year".
  8. Nil contingent liabilities and capital commitments in three reported years Clean - The company reported "Contingent liabilities & Capital Commitments: NIL" in the FY2025-26 consolidated statements and in the FY2023-24 and FY2022-23 standalone statements. The FY2025-26 Board's Report states the company has not given any guarantee during the year under review and that no proceedings are initiated or pending under the Insolvency and Bankruptcy Code. The FY2024-25 auditor's report states the company has disclosed the impact of pending litigations, if any, and has no long-term contracts with material foreseeable losses.

What to watch

Bottom line: This is an audited record with a genuinely clean core, unqualified opinions for seven straight years, no auditor resignations, and no contingent liabilities. The risk sits in the gap between what the company says and what its own disclosures show: the "no borrowings" statement versus ₹8 crore of facilities, and the inventory change that decreased FY2025 profit by ₹2.99 crore. The promoter directors' proposed remuneration, set against a ₹0.96 crore profit, is the figure to hold in mind when the 18th AGM votes come around.