Sea TV Network Limited faced a qualification from its statutory auditors regarding the financial year ended March 31, 2026, due to the non-recognition of interest on unsecured loans. This development was disclosed during the company's 22nd Annual General Meeting held on September 28, 2026.

The audit report highlighted a specific issue concerning ₹233.14 lakh in interest amounts that were not recognized in the financial statements. Management clarified that this omission stems from financial constraints preventing the servicing of interest obligations. The company is currently considering restructuring with lenders to address these liabilities.

Meeting Proceedings and Attendance

The AGM was conducted via Video Conferencing and Other Audio-Visual Means, concluding at 10:53 am after commencing at 10:00 am. A total of 35 members attended the meeting, satisfying the requisite quorum under Section 103 of the Companies Act, 2013.

The Board of Directors present included:

• Neeraj Jain, Chairman & Managing Director
• Sonal Jain, Woman Director
• Ashok Kumar Jain, Independent Director
• Anupriya Goyal, Independent Director

The Chief Financial Officer, Statutory Auditor, and Secretarial Auditor were also present. The Secretarial Audit Report for FY26 contained no adverse remarks.

Resolutions Passed

All resolutions proposed at the meeting were passed by the requisite majority through remote e-voting and e-voting during the session. The business transacted is summarized below:

Financial Health Indicators

The divergence between the clean secretarial audit and the qualified statutory audit highlights a specific liquidity challenge. While corporate governance procedures appear compliant, the inability to service interest obligations on unsecured loans signals potential cash flow pressures. The management's stated intent to restructure with lenders suggests that current operational efficiency measures are insufficient to meet immediate debt servicing requirements without external renegotiation.

Sea TV Network reported a significantly narrower standalone loss for the financial year ended March 31, 2026 (FY26), while its consolidated operations turned profitable for the first time in two years.

The company’s standalone net loss fell 63.59% year-on-year to ₹150.04 lakh from ₹412.07 lakh in FY25. On a consolidated basis, the group posted a net profit of ₹51.78 lakh, reversing a loss of ₹74.91 lakh recorded in the previous fiscal year.

Financial Performance

Standalone revenue from operations declined 8.33% to ₹562.55 lakh from ₹613.69 lakh in FY25. However, total income rose 5.44% to ₹692.43 lakh, supported by a more than doubling of other income to ₹129.88 lakh from ₹43.03 lakh.

The improvement in profitability was primarily driven by a sharp reduction in operating expenses. Total expenditure fell 19.38% to ₹842.47 lakh from ₹1,044.95 lakh. Other expenses dropped 32.01% to ₹321.67 lakh, while employee benefit expenses decreased 6.37% to ₹493.84 lakh.

On a consolidated basis, revenue from operations fell 3.50% to ₹863.45 lakh from ₹1,152.38 lakh. Despite the revenue decline, total expenses contracted 10.99% to ₹1,192.35 lakh, enabling the group to report a profit before tax of ₹51.17 lakh.

What the Numbers Show

The divergence between standalone and consolidated results highlights the critical role of subsidiaries in the group's current financial health. While the holding company continues to incur operational losses, the consolidated profit indicates that subsidiaries—specifically Jain Telemedia Services Limited and Sea News Network Limited—are generating sufficient surplus to offset the parent's deficits. Additionally, the standalone EBITDA margin improved significantly to -17.85% from -52.62%, signaling better cost control relative to revenue despite the top-line decline.

Audit Qualification and Going Concern

Statutory auditors Doogar & Associates issued a qualified opinion on the standalone financial statements. The qualification relates to the non-recognition of interest expense amounting to ₹233.14 lakh on unsecured loans. Management stated that due to financial constraints, it is unable to service these interest obligations and is seeking restructuring or waivers from lenders. No formal waiver has been executed as of the reporting date.

The auditors also highlighted material uncertainty regarding the company’s ability to continue as a going concern, citing negative net worth of ₹4,023.89 lakh and current liabilities exceeding current assets by ₹1,751.77 lakh.

Governance Changes

The board underwent significant changes during the year. Mr. Ashok Kumar Jain and Ms. Anupriya Goyal were appointed as independent directors effective August 16, 2025, replacing Mr. Narendra Kumar Jain and Mr. Rajeev Kumar Jain, who resigned in September 2025. Mr. Manish Jain was appointed as Chief Financial Officer effective March 30, 2026, succeeding Mr. Harshit Jain.