Padmalaya Telefilms review qualified over Rs 13.13 crore inventory

Padmalaya Telefilms Limited received a qualified limited-review conclusion for the quarter and half year ended September 30, 2026, after the auditor cited unpaid GST of Rs 56.06 lakh and missing verification or valuation evidence for Rs 13.13 crore of inventory.

Why was Padmalaya Telefilms’ review conclusion qualified?

Padmalaya Telefilms’ review conclusion was qualified because the statutory auditor identified unpaid goods and services tax, or GST, of Rs 56.06 lakh and insufficient evidence to assess whether its Rs 13.13 crore inventory required an impairment loss. P. Murali & Co. issued the limited-review report on November 14, 2026, the date on which the board approved the unaudited results for the quarter and half year ended September 30, 2026.

The report was a review of interim financial information under Standard on Review Engagements 2410, rather than a full audit. The auditor said a review provides moderate assurance and is substantially narrower than an audit. Except for the possible effects of the two qualification matters, it said nothing had come to its attention indicating that the September 30, 2026 statement failed to make required disclosures or contained a material misstatement.

What is the issue with Padmalaya Telefilms’ Rs 13.13 crore inventory?

The issue is that Padmalaya Telefilms did not provide a physical-verification report or another valuation report for inventory aggregating Rs 13.13 crore at September 30, 2026. P. Murali & Co. said that, without this evidence, it could not ascertain whether an impairment loss should be provided for the inventory.

The filing does not say the inventory is impaired, quantify any potential impairment, or identify the composition, age or location of the stock. The auditor’s qualification instead leaves unresolved whether the carrying value of Rs 13.13 crore should be reduced. The same Rs 13.13 crore inventory balance was reported at March 31, 2026.

Inventory was the largest reported asset category in the September 30, 2026 balance sheet, within total assets of Rs 19.64 crore. Total equity declined to Rs 15.46 crore from Rs 15.58 crore at March 31, 2026, while total current assets increased marginally to Rs 19.14 crore from Rs 19.13 crore.

What did the auditor say about Padmalaya Telefilms’ GST liability?

The auditor said Padmalaya Telefilms had not paid GST liability of Rs 56.06 lakh up to September 30, 2026. It listed the unpaid liability as a separate basis for the qualified conclusion, alongside the absence of inventory verification or valuation evidence.

The filing does not state when the GST became due, whether interest or penalties apply, or whether Padmalaya Telefilms paid the amount after September 30, 2026. It also does not specify the balance-sheet line in which the Rs 56.06 lakh liability was recorded. As a result, the document does not establish a precise reconciliation between the auditor’s GST figure and the reported liability classifications.

Current liabilities were Rs 3.84 crore at September 30, 2026, compared with Rs 3.71 crore at March 31, 2026. The September balance sheet separately showed current borrowings of Rs 60.90 lakh, provisions of Rs 71.03 lakh and other current liabilities of Rs 2.52 crore. P. Murali & Co. did not state that GST was omitted from the accounts; its stated matter was non-payment up to the reporting date.

How did Padmalaya Telefilms perform in the September 2026 quarter?

Padmalaya Telefilms reported a loss of Rs 10.05 lakh for the quarter ended September 30, 2026, compared with a loss of Rs 19.50 lakh in the September 2025 quarter. The loss widened from Rs 1.21 lakh in the immediately preceding quarter ended June 30, 2026.

Revenue from operations was nil in each of the three quarterly periods presented: September 2026, June 2026 and September 2025. Total income of Rs 90,000 in the September 2026 quarter consisted of other income, down from Rs 5.79 lakh in June 2026 and Rs 5.80 lakh a year earlier.

Total expenditure was Rs 10.95 lakh in the September 2026 quarter, compared with Rs 7 lakh in June 2026 and Rs 25.30 lakh in September 2025. Other expenses were Rs 8.95 lakh and employee-benefit expense was Rs 2 lakh during the latest quarter. Padmalaya Telefilms identified film production business and related services as its sole operating segment under Indian Accounting Standard 108.

For the half year ended September 30, 2026, Padmalaya Telefilms reported a loss of Rs 11.27 lakh, narrower than the Rs 26.65 lakh loss in the corresponding prior-year half year. Half-year total income fell to Rs 6.69 lakh from Rs 9.40 lakh, while total expenditure declined to Rs 17.96 lakh from Rs 36.05 lakh.

What changed in Padmalaya Telefilms’ cash and borrowings?

Padmalaya Telefilms closed September 30, 2026 with cash and cash equivalents of Rs 1.73 lakh, up from Rs 61,000 at March 31, 2026. The half-year cash-flow statement recorded net cash used in operating activities of Rs 5.38 lakh and no investing cash flows.

Financing activities generated Rs 6.50 lakh in the half year ended September 30, 2026, entirely from proceeds from short-term borrowings. Current borrowings consequently increased to Rs 60.90 lakh at September 30, 2026 from Rs 54.40 lakh at March 31, 2026.

The cash-flow statement showed no movement in inventories during the half year, consistent with the inventory balance remaining at Rs 13.13 crore at both September 30, 2026 and March 31, 2026. Other current assets increased by Rs 17,000 to Rs 5.99 crore over the same period, while total assets rose by Rs 1.27 lakh to Rs 19.64 crore.

Conclusion

Padmalaya Telefilms’ qualified review brings together two unresolved reporting matters at September 30, 2026: unpaid GST of Rs 56.06 lakh and a lack of physical-verification or valuation evidence for Rs 13.13 crore of inventory. The inventory matter concerns the largest reported asset category, which stood within total assets of Rs 19.64 crore, while the company recorded a half-year loss of Rs 11.27 lakh.

The next disclosure to watch is whether Padmalaya Telefilms supplies a physical-verification or valuation report for the Rs 13.13 crore inventory and addresses the unpaid GST identified up to September 30, 2026. The November 14, 2026 filing does not state a timetable for either action, leaving later financial results and auditor communications as the disclosed reference points for resolution.