Diligent Media Corporation540789Auditor qualification or
Q2 FY27 results: qualified auditor conclusion, going-concern doubt flagged
Board on 3 Nov 2026 approved unaudited results for Q2 and H1 FY27 and a declaration authorising Executive Director – Finance Nagendra Bhandari to sign them; outcomes on other items are being shared separately.
By ScoutQuest · · 3 min read
- Total income (Q2)
- Rs. 171.17 lakhs
- Profit/(loss) after tax (Q2)
- Rs. 14.13 lakhs
- Total equity as at 30 September 2026
- (25,204.64) lakhs
Board meeting outcome
- The Board approved the unaudited financial results for the quarter and half year ended 30 September 2026, for FY 2026-27, prepared under Ind AS and reviewed by MGB & Co. LLP, Chartered Accountants.
- A declaration confirms that Nagendra Bhandari, Whole Time Director designated Executive Director – Finance, is authorised to sign the results.
- The meeting ran from 1730 Hrs to 2005 Hrs, and outcomes on items other than the results are being submitted separately. The company operates in one segment, the digital media business.
Numbers from the results (Rs. in lakhs, unaudited)
- Revenue from operations: 145.30 for the quarter ended 30 September 2026.
- Total income: 171.17 for the quarter.
- Profit/(loss) after tax: 14.13 for the quarter — a swing to profit from a loss in the same quarter a year earlier — and 54.12 for the half year.
Auditor's qualified conclusion
The limited review report carries a qualified conclusion. The point flagged is the accounting for inter corporate deposits (ICDs) the company gave to Veena Investments Private Limited (VIPL) and the preference shares VIPL holds.
- ICDs outstanding: Rs. 17,340.27 lakhs as at 30 September 2026.
- NCRPS held by VIPL: Rs. 43,626.56 lakhs — 6% Non-cumulative, Non-convertible, Redeemable Preference Shares, redeemable on 01 November 2036, for which early redemption was sought.
- An Arbitration Award dated 20 August 2025 directs that the NCRPS be redeemed/cancelled at a value of Rs. 17,340.27 lakhs, with VIPL setting off the entire ICDs outstanding against that value.
- The Board on 18 September 2025 approved a Scheme of Reduction and cancellation of NCRPS Capital: Rs. 17,340.27 lakhs adjusted against the ICDs, and the remaining paid-up value of NCRPS Capital of Rs. 26,286.29 lakhs to be reduced in its entirety. The scheme was shared with BSE and NSE on 07 October 2025 and 08 October 2025 and is pending approval.
- Because of this, the company has not accrued interest from 01 January 2025 and has not performed an impairment assessment on the outstanding balance under Ind AS 109. The auditor states it is unable to determine whether any adjustment is required to the carrying amount as at 30 September 2026.
Going concern
- The auditor flags a material uncertainty that may cast significant doubt on the company's ability to continue as a going concern, citing negative net worth as at 30 September 2026.
- Total equity as at 30 September 2026: (25,204.64) lakhs.
- Management's note says current assets exceed current liabilities, and that cost rationalisation, better collections and the Board-approved business plan are expected to let the company meet its obligations, so the results are prepared on a going concern basis. The auditor's conclusion is not modified on this point.
SEBI matters noted as emphasis of matter
- A Show Cause Notice dated 12 February 2026 issued to the company as a co-noticee, alleging violation of provisions of the SEBI Act, 1992 and regulations; the settlement application shared by the company has been rejected by SEBI and the proceedings are pending.
- A Show Cause Notice dated 05 October 2026 alleging violation of SEBI Regulations on requisite disclosure of an arrangement with a related party in earlier years; the company has sought inspection of documents. The auditor's conclusion is not modified on these matters.
What to watch
- Approval and execution of the NCRPS reduction and cancellation scheme.
- Resolution of the auditor's qualification on the carrying value of the ICDs/NCRPS.
- Developments in the two SEBI proceedings.
Also from Diligent Media Corporation
Board approves re-appointment of Executive Director – Finance; three officials elevated as Senior Management Personnel
3 Nov 2026
Board meeting on November 03, 2026 to consider, approve Q2 and half-year FY27 unaudited results
13 Oct 2026
Board approves appointment of Ms. Aanchal David as Independent Woman Director for 5 years
25 Sep 2026
More numbers
- Revenue from operations, quarter ended 30 Sep 2026145.30
- Total income, quarter ended 30 Sep 2026171.17
- Profit/(loss) after tax, quarter ended 30 Sep 202614.13
- Profit/(loss) after tax, half year ended 30 Sep 202654.12
- ICDs outstanding from Veena Investments Private LimitedRs. 17,340.27 lakhs
- NCRPS of the Company held by VIPLRs. 43,626.56 lakhs
- Remaining paid-up value of NCRPS Capital to be reducedRs. 26,286.29 lakhs
- Total equity as at 30 September 2026(25,204.64)
Source: BSE · 3 Nov 2026
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