Sea TV Network board approved the complete closure of its cable business operations and authorized investments, loans, or guarantees up to ₹100 crore. The decision was taken during a meeting held on September 3, 2026.

The Board also approved the notice for the 22nd Annual General Meeting (AGM), scheduled for September 28, 2026. The meeting will be conducted through Video Conferencing or Other Audio-Visual Means (OAVM).

Key Board Approvals

The Board addressed several governance and operational matters:

• AGM Logistics: The Register of Members and Share Transfer Books will remain closed from September 21 to September 28, 2026. The cut-off date for voting eligibility is September 21, 2026.
• E-Voting: Remote e-voting via CDSL will run from September 25 at 9:00 am to September 27 at 5:00 pm.
• Director Re-appointment: Mrs. Sonal Jain retires by rotation and has offered herself for re-appointment.
• Auditor Appointment: M/s. Ashutosh Agarwal & Co., Chartered Accountants, was appointed as Internal Auditor for FY27 based on Audit Committee recommendations.

Audit Observations

The Statutory Auditor reported non-payment of interest on unsecured loans, which Directors clarified. The Secretarial Auditor noted penalties arising from delays in statutory compliances, which management has addressed.

What the Numbers Show

The authorization of a ₹100 crore investment limit under Section 186 of the Companies Act, 2013, signals significant capital deployment capacity despite the simultaneous closure of the cable business. This suggests the company may be reallocating resources toward other segments or strategic initiatives not detailed in this filing.

Sea TV Network reported a widening consolidated net loss of ₹44.30 lakh in Q1FY27, reversing a profit of ₹22.33 lakh in the prior year period. The deterioration was driven by a 97% collapse in other income and a statutory auditor’s observation regarding unprovided interest expenses. Concurrently, the company accepted the resignation of its Company Secretary & Compliance Officer, Karishma Jain, effective July 28, 2026, citing personal reasons.

The financial results were approved by the Board of Directors on July 25, 2026. The resignation of Ms. Jain was intimated to the Bombay Stock Exchange pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. Ms. Jain confirmed there are no material reasons for her exit beyond personal ones and no outstanding dues with the company. The Nomination and Remuneration Committee recommended her exit, and the company is initiating the appointment of a successor under Section 203 of the Companies Act, 2013.

Financial Performance

Consolidated revenue from operations grew 28% year-on-year to ₹240.62 lakh from ₹187.65 lakh. However, this operational improvement was negated by a sharp decline in other income, which fell to ₹3.65 lakh from ₹120.44 lakh. Standalone revenue remained flat at ₹169.71 lakh against ₹184.33 lakh in Q1FY26, while standalone losses widened to ₹50.78 lakh from ₹1.75 lakh.

On a consolidated basis, employee benefits expense stood at ₹148.18 lakh, down from ₹155.72 lakh. Finance costs increased to ₹4.55 lakh from ₹1.06 lakh, and depreciation and amortization rose to ₹13.53 lakh from ₹9.40 lakh.

Auditor’s Observation on Accounting Compliance

Statutory auditors Doogar & Associates flagged a material non-compliance with Ind AS 109 – Financial Instruments in their limited review report. The company did not provide for interest on outstanding unsecured loans aggregating ₹3,382.81 lakh as of June 30, 2026. These borrowings carry an interest rate of 8% per annum.

The auditors noted that the non-recognition of the current quarter’s interest expense, amounting to ₹66.49 lakh, violates the requirement to measure financial liabilities at amortized cost using the effective interest method. Had the interest been provided, both standalone and consolidated losses would have been higher by ₹66.49 lakh. This deviation impacts retained earnings and suggests potential restatement risk if not corrected.

What the Numbers Show

The divergence between operating performance and other income highlights volatility in Sea TV Network’s profitability. While core operations generated a pre-tax loss of ₹44.30 lakh on a consolidated basis, the sharp decline in other income—from ₹120.44 lakh to ₹3.65 lakh—was the primary driver of the swing from profit to loss. This indicates that operational improvements in revenue growth were insufficient to offset the drop in non-operating gains, leaving the company heavily dependent on consistent other income streams to maintain profitability.