Panchatv Bharat restatement cuts FY24 profit 25% and net worth 17%

Panchatv Bharat Limited’s restatement cut FY24 profit after tax by 25.4% to Rs 2.02 crore from Rs 2.71 crore and reduced net worth by 16.7% to Rs 3.39 crore from Rs 4.07 crore. The Rs 68.91 lakh profit change chiefly reflects the disclosed Rs 70.76 lakh tax-expense adjustment.

How did Panchatv Bharat’s restatement cut FY24 profit and net worth?

Panchatv Bharat’s restatement changed both earnings and capital reported for the year ended March 31, 2024. Audited profit after tax of Rs 2.71 crore was restated to Rs 2.02 crore, a reduction of Rs 68.91 lakh, while audited net worth of Rs 4.07 crore was restated to Rs 3.39 crore, a reduction of Rs 67.82 lakh.

The percentage changes differ because the two measures have different audited bases. The Rs 68.91 lakh reduction represented 25.4% of FY24 audited profit, whereas the Rs 67.82 lakh reduction represented 16.7% of FY24 audited net worth. The restatement reconciliation therefore shows a larger proportional effect on FY24 earnings than on capital at March 31, 2024.

The effect was more limited in the latest disclosed year. For the year ended March 31, 2025, audited profit after tax of Rs 2.85 crore was restated to Rs 2.79 crore, a difference of Rs 6.28 lakh, and audited net worth of Rs 9.09 crore was restated to Rs 9.05 crore, a difference of Rs 3.67 lakh.

What caused Panchatv Bharat’s FY24 profit reduction?

Panchatv Bharat’s FY24 profit reduction was principally associated with a Rs 70.76 lakh tax-expense adjustment in the restated-profit reconciliation. The adjustment exceeded the overall Rs 68.91 lakh decline because the same schedule also recorded a negative Rs 2.53 lakh balance write-off adjustment and Rs 68,000 of depreciation.

Panchatv Bharat defines income-tax expense as current tax plus deferred-tax charges or credits. Deferred tax reflects timing differences between the accounting carrying amounts of assets and liabilities and their respective tax bases, using enacted or substantively enacted tax rates at the balance-sheet date. The accounting policy also says deferred-tax assets are recognised only where future taxable profit is probable enough to permit their use.

The Rs 2.53 lakh balance write-off relates to the historical presentation of promoter-operated proprietorship firms. Panchatv Bharat says that, before March 2024, promoters operated as proprietorship firms and differences in inter-firm trading transactions were eliminated in preparing consolidated financial statements for previous years. Eliminating such transactions prevents both sides of transactions within the predecessor businesses from remaining in consolidated historical results.

Panchatv Bharat also restated depreciation under the Companies Act, 2013, rather than the Income Tax Act basis used earlier. The accounting policy specifies the straight-line method, or SLM, at rates under Schedule II of the Companies Act, with pro-rata depreciation for assets added or disposed during the year. The FY25 reconciliation separately lists Rs 3.04 lakh of depreciation and a negative Rs 76,000 tax adjustment, showing that the items disclosed for FY25 differed from the FY24 tax adjustment.

Why did Panchatv Bharat’s FY24 net worth fall after restatement?

Panchatv Bharat’s FY24 net worth declined because the reconciliation includes the Rs 68.91 lakh change in profit or loss among adjustments to capital. Net worth was Rs 3.39 crore after restatement at March 31, 2024, compared with Rs 4.07 crore in the audited financial statements, with the schedule reporting a closing adjustment balance of negative Rs 67.82 lakh.

The FY24 reconciliation identifies several components in addition to the profit change. It lists a negative Rs 31.60 lakh opening adjustment, a Rs 32.69 lakh capital-account adjustment, a negative Rs 1.39 lakh reserves-and-surplus adjustment, and a Rs 2.28 lakh deferred-tax-liability adjustment with reserves. These entries show that the net-worth restatement included opening balances, capital and reserves as well as the FY24 earnings change.

Panchatv Bharat’s FY23 figures show a larger percentage net-worth reduction than FY24. Audited net worth of Rs 1.42 crore at March 31, 2023 was restated to Rs 1.10 crore, a Rs 31.60 lakh or 22.3% reduction. By contrast, the March 31, 2025 difference was Rs 3.67 lakh, indicating that the disclosed adjustment to net worth was substantially smaller in FY25 than in the two earlier reported periods.

Which accounting policies shape the restated comparisons?

Panchatv Bharat states that financial information for 2022-23 and 2023-24 includes consolidated financial statements prepared under Indian Accounting Standards, or Ind AS, prescribed under the Companies (Indian Accounting Standards) Rules, 2015, and other provisions of the Companies Act, 2013. The statements use historical cost and accrual accounting, and the company says its accounting policies are applied consistently.

Panchatv Bharat’s inventory policy values inventory at the lower of cost and net realisable value. The company also uses the indirect method for cash flows, under which profit before tax is adjusted for non-cash items and changes in accruals or deferrals, before cash flows are classified as operating, investing and financing activities.

Panchatv Bharat defines its operating cycle as 12 months, which is the period between acquiring assets for processing and realising them as cash or cash equivalents. Assets expected to be realised within 12 months and liabilities due within 12 months are classified as current under the stated policy. The disclosure also says previous-year figures were regrouped or reclassified where necessary, while material regroupings were stated to have no impact on net worth or profit.

Panchatv Bharat’s supplied disclosures contain two incorporation dates. The corporate-information section states March 6, 2024, while the share-capital note states March 10, 2023 and says the company was incorporated through transfer of a proprietorship firm’s business. The provided reconciliation does not resolve that date difference, although its reference to promoter-run proprietorship firms before March 2024 explains the relevance of predecessor-business eliminations.

Conclusion

Panchatv Bharat’s restatement reduced FY24 profit after tax by Rs 68.91 lakh and FY24 net worth by Rs 67.82 lakh. The profit reconciliation identifies a Rs 70.76 lakh tax-expense adjustment as the largest disclosed FY24 item, alongside the inter-firm balance write-off and depreciation adjustments, while the net-worth reconciliation also includes opening, capital, reserve and deferred-tax entries.

The next disclosure to watch is any clarification of the March 6, 2024 and March 10, 2023 incorporation dates, which remain unreconciled in the supplied material. The FY25 restatement differences of Rs 6.28 lakh in profit and Rs 3.67 lakh in net worth were smaller than the FY24 movements, so later financial statements can show whether the FY24 adjustment was confined to the historical transition period.