India, Oct. 28 -- Earlier this month, Karan Johar's Dharma Productions generated quite a lot of frenzy in the cinema business world when they sold 50% stake to Adar Poonawalla for Rs.1000 crore. As one of the biggest and most influential production houses in Indian cinema, Dharma was long considered infallible, almost invincible. However, the deal showed that there was a lot wrong with the company beneath the glitzy exterior. Now, the company's financials - which have been revealed this week - show just how dire the situation was. (Also read: Karan Johar makes Adar Poonawalla Dharma Productions' co-owner, sells 50% stake for Rs.1000 crore)

Dharma had been on the rise throughout the 2010s under Karan Johar's stewardship. As the filmmaker ...