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New Delhi, Jun 9: Multiplex operator PVR on Monday said it has cut salary across various levels, laid off employees and deferred increments during the lockdown to mitigate adverse impact of COVID-19 on the business.

The company said at present it is not generating any revenue from exhibition business and related activities as cinemas across the country are shut following the directions from the regulatory authorities.

According to the company, closure of screens during the lockdown will have a significant negative impact on profitability and liquidity.

PVR has taken measures to reduce its personnel cost, including salary cuts across various levels in the organisation during the lockdown along with "reduction in headcount by way of layoffs/retrenchment" to mitigate the adverse impact of COVID-19 on the business.

Moreover, the board of the company, in its meeting held on Monday has also approved plan to raise Rs 300 crore through rights issue.

"Since Cinema Exhibition is the only business segment, company is currently not generating any revenue from admissions, food and beverage sales or other revenue and cash flow from operations," said PVR in an update.

Beginning from March 11, PVR started closing its screens in accordance with the order passed by various regulatory authorities and within a few days most of our cinemas across the country were shut down, it added.

The company will continue to incur committed cash outflows, including employee salary pay-outs, other overheads as well as payments for older working capital.

"This has and will have a significant negative impact on profitability and liquidity during lockdown and even thereafter till business comes to normalcy," it added.

Further, once the cinemas are re-opened, we may not be able to run our cinemas at normal capacity utilisation levels on account of social distancing measures that cinemas may be required to follow as well as health concerns that the patrons may have, the multiplex operator said.

"On account of this, our revenue and cash flow generation may be impeded even once we are allowed to restart operations," it added.

The company has also deferred decision on on increments to reduce its cost, it added.

PVR has also written to developers for waiving rental and CAM (Common Area Maintenance) charges for the lockdown period.

It is in discussion with developers for reducing rentals post re-opening and has invoked force majeure clause in its agreements with them.

Besides, the company has raised additional borrowings from existing bankers to shore up liquidity.

"As of March 31, 2020 the company had cash and bank balance of Rs 316 crore. As on June 7, 2020 cash and bank balance is Rs 227 crore (including undrawn bank lines)," it added.

Over reopening of theatres, PVR said that the government has come out with a phase-wise schedule.

In these guidelines cinema halls have been kept in the third phase of re-opening, where dates will be decided based on assessment of the situation.

"We are in continuous engagement with all regulatory authorities and hope to receive the necessary permissions for restarting opening in the near future," it added.

Currently PVR operates 845 screens in 176 properties in 71 cities.

A gang has been spreading rumours about me in the Hindi film industry that is preventing him from getting work, says Academy award-winning music director A R Rahman.

Collaborations between him and the Hindi film industry have reduced as a result, he adds

The maestro had composed music for Sushant Singh Rajput's Dil Bechara said that the reason he is not doing a lot of work is that a gang has been spreading rumours about him which resulted in him getting fewer projects.

Rahman's comments come amidst a raging insider versus outsider debate in Bollywood following actor Sushant Singh Rajput's untimely demise last month.

During an interview with Radio Mirchi, the Oscar-winning music director was asked the reason for doing less Hindi films.

Rahman said there has been "misunderstanding" between him and filmmakers as some people have been spreading "false rumours" about him in the industry.

"See, I don’t say no to good movies, but I think there is a gang, which, due to misunderstandings, is spreading some false rumours. So when Mukesh Chhabra came to me, I gave him four songs in two days. He said, 'Sir, how many people said don’t go, don’t go (to him). They told me stories after stories'," he said.

"I heard that, and I said, 'yeah okay, now I understand why I am doing less (work) and why the good movies are not coming to me.' I am doing dark movies, because there is a whole gang working against me, without them knowing that they are doing harm," the composer added.

Rahman has composed the music for Rajput's last movie "Dil Bechara", which premiered on Disney+ Hotstar on Friday. The film, directed by Mukesh Chhabra, also features Sanjana Sanghi and Saif Ali Khan.

The composer further said that he is aware of people's expectations from him but the "gang" is getting in his way.

"People are expecting me to do stuff, but there is another gang of people preventing that from happening. It is fine because I believe in destiny. I believe that everything comes from God.

"So, I am taking my own movies and doing my other stuff. But all of you are welcome to come to me. You make beautiful movies, and you are welcome to come to me," Rahman added.

Dubbed ‘Mozart of Madras’, A R Rahman has composed soundtracks for movies like Swades, Dil Se, Guru, Rockstar and more recently Sushant Singh Rajput’s Dil Bechara. 

The composer won two Academy Awards in 2009 for his songs in the popular Hollywood movie, Slumdog Millionaire. The composer also received a Golden Globes Award for his work in this movie.