Complex sentence: The government misunderstood the nature of the film, considering it as a documentary for rural uplift, and recorded the loan as being for "roads improvement", a reference to the film's title.
Split into simpler sentences: The government misunderstood the nature of the film, and considered it as a documentary for rural uplift, such as the need for road improvement. The money was loaned on record for'roads improvement', a reference to the film's title.