Notes to Accounts of 7Seas Entertainment Ltd.

Mar 31, 2024

C. Terms/rights attached to Equity Shares

The company has only one class of equity shares having a par value of ''10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholder.

28. Derivative instruments and un-hedged foreign currency exposure:

a) There are no outstanding derivative contracts as at March 31,2024, and March 31,2023.

b) Particulars of Un-hedged foreign currency exposure is: Nil

29. Secured Loans:

Term Loans:

From banks and financial institutions, together with interest accrued thereon, are secured by way of Vehicle Loans - primarily secured by the vehicle acquired with the loan sanction and personal guarantee of Director.

Working capital Loans:

Secured by way hypothecation on stocks, books debts and floating charge on Movable property not being pledged.

34. Foreign Currency Transactions: 965219 USD35. Details of Loans given, Investments made and Guarantee given covered Under Section 186(4) of the Companies Act, 2013.

a. The company has not extended any Corporate Guarantees in respect of loans availed by any company/firm during the reporting period.

b. The company has not made any investments during the reporting period.

36. Contingent Liabilities not provided for and commitments:

Nature of Contingent Liability	As of 31st March, 2024	As of 31st March, 2023
i. Unexpired guarantees issued on behalf of the company by Banks for which the Company has provided counter guarantee	Nil	Nil
ii. Bills discounted with banks which have not matured	Nil	Nil
iii. Corporate Guarantees issued by Company on behalf of others to Commercial Banks & Financial Institutions	Nil	Nil
iv. Collateral Securities offered to Banks for the limit Sanctioned to others	Nil	Nil
v. Legal Undertakings given to Customs Authorities for clearing the imports	Nil	Nil
vi. Cla ims against the company not acknowledged as debts
a) Excise	Nil	Nil
b) S ales Tax	Nil	Nil
c) Service Tax	Nil	Nil
d) Income Tax	Nil	Nil
e) Civil Proceedings	Nil	Nil
f) Company Law Matters	Unascertainable	Unascertainable
g) Criminal Proceedings	Unascertainable	Unascertainable
h) Others	Nil	Nil
vii. Estimated amounts of contracts remaining to be executed on Capital Account and not provided for	Nil	Nil

The information has been given in respect of such vendors to the extent they could be identified as micro and small enterprises on the basis of information available with company.

39. Financial Risk Management

In course of its business, the company is exposed to certain financial risk such as market risk (Including currency risk and other price risks), credit risk and liquidity risk that could have significant influence on the company’s business and operational/financial performance. The Board of directors reviews and approves risk management framework and policies for managing these risks and monitor suitable mitigating actions taken by the management to minimize potential adverse effects and achieve greater predictability to earnings.

40. Credit Risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the company. The company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

The company makes an allowance for doubtful debts/advances using expected credit loss model.

41. Liquidity risk

Liquidity risk refers to the risk that the company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as pre requirements. The Company’s exposure to liquidity risk is minimal as the promoters of the company is infusing the funds based on the requirements.

42. Financial figures have been rounded off to nearest rupees in lakhs and regrouped wherever is necessary.43. Notes 3 to 43 forms part of Balance Sheet and have been authenticated.

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Mar 31, 2023

1.7. Provisions

A provision is recognised when the Company has a present legal or constructive obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (other than employee benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

1.8. Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable.

Interest Income

Interest income from a financial asset is recognised using effective interest rate method. However, in respect of certain financial assets where it is not probable that the economic benefits associated with the transaction will flow to the entity and amount of revenue cannot be measured reliably, in such cases interest income is not recognised.

1.9. Dividend Income

Dividends will be recognised when the company''s right to receive has been established.

1.10. Employee benefits 1.10.1.Short term employee benefits

The undiscounted amount of short-term employee benefits are expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services.

1.10.2.Defined benefit plans

a) Provident fund

Eligible employees receive benefits from a provident fund, which is a defined contribution plan. Aggregate contributions along with interest thereon is paid at retirement, death, incapacitation or termination of employment. Both the employee and the Company make monthly contributions to the Regional Provident Fund Commissioner equal to a specified percentage of the covered employee''s salary.

b) Employee State Insurance Fund

Eligible employees (whose gross salary is less than Rs.15,000 per month) are entitled to receive benefit under employee state insurance fund scheme. The employer makes contribution to the scheme at a predetermined rate (presently 4.75%) of employee''s gross salary. The Company has no further obligations under the plan beyond its monthly contributions. These contributions are made to the fund administered and managed by the Government of India. Monthly contributions are charges to income in the year it is incurred.

1.11. Tax Expenses

The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the comprehensive income or in equity. In which case, the tax is also recognised in other comprehensive income or equity.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting date.

Current tax assets and current tax liabilities are off set only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax is also recognised in respect of carried forward tax losses and tax credits. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and assets are reviewed at the end of each reporting period.

1.12. Leases

Leases are classified as finance lease whenever the terms of the lease, transfers substantially all the risks and rewards of ownership to the lessee. Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit and Loss on a straight line basis over the period of the lease.

1.13. Borrowing costs

Borrowing costs incurred for obtaining assets which takes substantial period to get ready for their intended use are capitalized to the respective assets wherever the costs are directly attributable to such assets and in other cases by applying weighted average cost of borrowings to the expenditure on such assets. Other borrowing costs are treated as expense for the year.

Transaction costs in respect of long-term borrowings are amortized over the tenor of respective loans using effective interest method.

1.14. Earnings per equity share

(i) Basic earnings per share

Basic earnings per share are calculated by dividing:

• The profit attributable to owner of the company.

• By the weighted number of equity shares outstanding during the financial year

(ii) Diluted earnings per share

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of share outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

1.15. Financial Instruments

I. Financial assets

A. Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition.

a) Financial assets carried at amortized cost (AC)

A financial asset is measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

b) Financial assets at fair value through profit or loss (FVTPL)

A Financial asset which is not classified as AC or FVOCI are measured at FVTPL e.g. investments in mutual funds. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss is recognised in profit or loss and presented net in the Statement of Profit and Loss within other gains/(losses) in the period in which it arises.

c) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

B. Investments in subsidiaries:

The Company has accounted for its investments in subsidiaries at cost and not adjusted to fair value at the end of each reporting period. Cost represents amount paid for acquisition of the said investments.

II. Financial Liabilities:

A. Initial recognition-

All financial liabilities are recognized at fair value.

B. Subsequent measurement-

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

1.16.First time adoption of Ind As:

Transition to Ind As-

The Company has adopted Ind As with effect from 1st April 2017 with comparatives being restated. Accordingly the impact of transition has been provided in the Opening reserves as at 1st April, 2016. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind As and Schedule III.

16. Contingent Liabilities: Nil

17. Secured Loans:

Working Capital Loan from Indian Overseas Bank: First charge on all current assets by way of hypothecation of all book debts and other current assets of the Company and Collateral Security on open Plot No.38 of 313.33 Sy of Smt, L. UshaKumari in S.No.416/4 at Prabhu Nagar, Poranki, KrishnaDist, and open plot No.8 of 485 Sy of Smt. L. Hemalatha in s.No.404/1 at Poranki, KrishnaDist, AP and personal guarantee given by Directors. Due to non-payment interest on cash credit accounts, the bank has classified cash credit as NPA account.

18. Quantitative details:

The Company is engaged in the business of development & maintenance of Computer Software, offshore development and other related services. The production and sale of such software services cannot be expressed in any generic unit and hence it is not possible to give such quantitative details of sales and certain information as required under paragraph 3,4C and 4D of Part II of Schedule VI to the Companies Act, 1956. The details of Conversation of Energy, Technology absorption are given in Directors Report. R&D expenditure is not separately accounted for.

19. Related Party Transactions:

List of related parties on which the company is able to exercise control.

A. Subsidiaries:

Name of the Subsidiary company-The Company do not have any Subsidiary.

B. Transactions with key management personnel:

Particulars of remuneration and other benefits paid to key management personnel during the year ended March 31,2023:

20. Dues to micro & small-scale industrial undertakings:

As at March 31, 2023 as per available information with the company, there are no dues to small scale Industrial Undertakings.

21. Balances under trade receivable, Loans & Advances and trade payables are subjected to confirmation and reconciliation from respective parties and the classification / grouping of the parties under sundry debtors and creditors are as per the management representation.

22. Income taxes:

The provision for taxation includes tax liabilities in India on the company''s global income as reduced by exempt incomes and any tax liabilities arising overseas on income sourced from those countries. Due to continuous losses from the past few years the company has not made provision for income tax.

23. Segment reporting:

As required by the Accounting Standard (AS 17) “Segment Reporting”, the Company is mainly engaged in the area of Gaming Software Development and related services. Hence segment reporting is not applicable to the Company and to the nature of its business.

24. Auditors Remuneration:

As per our report of even date attached On behalf of the board of directors

For Sathuluri & Co. 7seas Entertainment Limited

Chartered Accountants Firm Reg No. 006383S

Sd/- Sd/-

CA S S Prakash L Maruti Sanker L Hemalatha

Partner Managing Director whole Time Director cum CFO

M. No 202710 DIN:01095047 DIN:02226943

Place: Hyderabad Date: 10/05/2023

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Mar 31, 2015

1. Contingent Liabilities : Nil

2. Secured Loans

Working Capital Loan and Term Loan from Indian Overseas Bank:

First charge on all current assets by way of hypothecation of all book debts and other current assets of the Company and Collateral Security on open Plot No.38 of 313.33 Sy of Smt, L. Usha Kumari in S.No.416/4 at Prabhu Nagar, Poranki, Krishna Dist, and open plot No.8 of 485 Sy of Smt. L. Hemalatha in s.No.404/1 at Poranki, Krishna Dist, AP and personal guarantee given by Directors. Due to non payment of instalment amounts of term loan and interest on cash credit accounts, the bank has classified both the term loan and cash credit as NPA accounts.

3. Quantitative details

The Company is engaged in the business of development & maintenance of Computer Software, offshore development and other related services. The production and sale of such software services cannot be expressed in any generic unit and hence it is not possible to give such quantitative details of sales and certain information as required under paragraph 3,4C and 4D of Part II of Schedule VI to the Companies Act, 1956. The details of Conversation of Energy, Technology absorption are given in Directors Report. R&D expenditure is not separately accounted for.

4. Related Party Transactions

List of related parties on which the company is able to exercise control.

A. Subsidiaries

Name of the Subsidiary company: Fortune 7Inc

Transactions with above company in the ordinary course of business: NIL

5. Dues to micro & small-scale industrial undertakings

As at March 31, 2015 as per available information with the company, there are no dues to small scale Industrial Undertakings.

6. Balances under trade receivable, Loans & Advances and trade payables are subjected to confirmation and reconciliation from respective parties and the classification / grouping of the parties under sundry debtors and creditors are as per the management representation.

7. Income taxes

The provision for taxation includes tax liabilities in India on the company's global income as reduced by exempt incomes and any tax liabilities arising overseas on income sourced from those countries. Due to continuous losses from the past few years the company has not made provision for income tax and differed tax.

8. Segment reporting

As required by the Accounting Standard (AS 17) "Segment Reporting", the Company is mainly engaged in the area of Gaming Software Development and related services. Hence segment reporting is not applicable to the Company and to the nature of its business.

9. The previous year figures have been recast / restated, wherever necessary, to the current period's classification.

10. Financial figures have been rounded off to nearest rupee.

11. Schedules 2 to 14 form part of Balance Sheet and have been authenticated.

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Mar 31, 2014

All amounts in the financial statements are presented in Rupees and as otherwise stated.

1. Contingent Liabilities : Nil

2. Secured Loans

Working Capital Loan and Term Loan from Indian Overseas Bank: First charge on all current assets by way of hypothecation of all book debts and other current assets of the Company and Collateral Security on open Plot No.38 of 313.33 Sy of Smt, L. Usha Kumari in S.No.416/4 at Prabhu Nagar, Poranki, Krishna Dist, and open plot No.8 of 485 Sy of Smt. L. Hemalatha in s.No.404/1 at Poranki, Krishna Dist, AP and personal guarantee given by Directors.

3. Quantitative details

The Company is engaged in the business of development & maintenance of Computer Software, offshore development and other related services. The production and sale of such software services cannot be expressed in any generic unit and hence it is not possible to give such quantitative details of sales and certain information as required under paragraph 3,4C and 4D of Part II of Schedule VI to the Companies Act, 1956. The details of Conversation of Energy, Technology absorption are given in Directors Report. R&D expenditure is not separately accounted for.

4. Related Party Transactions

List of related parties on which the company is able to exercise control.

A. Subsidiaries

Name of the Subsidiary company: Fortune 7Inc

Transactions with above company in the ordinary course of business: NIL

B. Transactions with key management personnel

Particulars of remuneration and other benefits paid to key management personnel during the year ended March 31,2014:

No commission paid to the directors and computation of net profit in accordance with Section 349 of the Companies Act, 1956, for commission payable to non-whole-time directors is not required.

5. Dues to micro & small-scale industrial undertakings

As at March 31, 2014 as per available information with the company, there are no dues to small scale Industrial Undertakings.

6. Income taxes

The provision for taxation includes tax liabilities in India on the company''s global income as reduced by exempt incomes and any tax liabilities arising overseas on income sourced from those countries.

Most of the operations are conducted through Software Technology Parks (STPs). Income from STPs are tax exempt for the earlier of 10 years commencing from fiscal year in which the unit commences software development or March 31,2011. Hence from the fiscal year ending March 31,2012 the tax exemption is waived off.

7. Segment reporting

As required by the Accounting Standard (AS 17) "Segment Reporting", the Company is mainly engaged in the area of Gaming Software Development and related services. Hence segment reporting is not applicable to the Company and to the nature of its business.

8. The Balance in Sundry Debtors, Loans & Advances are subject to confirmation, and consequential adjustments if any.

9. The previous year figures have been recast / restated, wherever necessary, to the current period''s classification.

10. Financial figures have been rounded off to nearest rupee.

11. Schedules 2 to 15 form part of Balance Sheet and have been authenticated.

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Mar 31, 2013

All amounts in the financial statements are presented in Rupees and as otherwise stated.

1. Contingent Liabilities : Nil

2. Secured Loans

Working Capital Loan and Term Loan from Indian Overseas Bank: First charge on all current assets by way of hypothecation of all book debts and other current assets of the Company and Collateral Security on open Plot No.38 of 313.33 Sy of Smt, L. Usha Kumari in S.No.416/4 at

Prabhu Nagar, Poranki, Krishna Dist, and open plot No.8 of 485 Sy of Smt. L. Hemalatha in s.No.404/1 at Poranki, Krishna Dist, AP and personal guarantee given by Directors.

3. Quantitative details

The Company is engaged in the business of development & maintenance of Computer Software, offshore development and other related services. The production and sale of such software services cannot be expressed in any generic unit and hence it is not possible to give such quantitative details of sales and certain information as required under paragraph 3,4C and 4D of Part II of Schedule VI to the Companies Act, 1956. The details of Conversation of Energy, Technology absorption are given in Directors Report. R&D expenditure is not separately accounted for.

4. Related Party Transactions

List of related parties on which the company is able to exercise control.

A. Subsidiaries

Name of the Subsidiary company: Fortune 7Inc

Transactions with above company in the ordinary course of business: NIL

No commission paid to the directors and computation of net profit in accordance with Section 349 of the Companies Act, 1956, for commission payable to non-whole-time directors is not required.

5. Dues to micro & small-scale industrial undertakings

As at March 31, 2013 as per available information with the company, there are no dues to small scale Industrial Undertakings.

6. Income taxes

The provision for taxation includes tax liabilities in India on the company''s global income as reduced by exempt incomes and any tax liabilities arising overseas on income sourced from those countries.

Most of the operations are conducted through Software Technology Parks (STPs). Income from STPs are tax exempt for the earlier of 10 years commencing from fiscal year in which the unit commences software development or March 31, 2011. Hence from the fiscal year ending March 31, 2012 the tax exemption is waived off.

7. Segment reporting

As required by the Accounting Standard (AS 17) "Segment Reporting", the Company is mainly engaged in the area of Gaming Software Development and related services. Hence segment reporting is not applicable to the Company and to the nature of its business.

8. The Balance in Sundry Debtors, Loans & Advances are subject to confirmation, and consequential adjustments if any.

9. The previous year figures have been recast / restated, wherever necessary, to the current period''s classification.

10. Financial figures have been rounded off to nearest rupee.

11. Notes 1 to 14 form part of Balance Sheet and have been authenticated.

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Mar 31, 2012

1. CONTINGENT LIABILITIES : NIL

2. SECURED LOANS

Working capital Loan and term Loan from indian overseas Bank of india: First charge on all current assets by way of hypothecation of all book debts and other current assets of the Company and Collateral Security on open Plot No.38 of 313.33 Sy of Smt, L. usha Kumari in S.No.416/4 at Prabhu Nagar, Poranki, Krishna Dist, and open plot No.8 of 485 Sy of Smt. L. Hemalatha in S.No.404/1 at Poranki, Krishna Dist, AP and personal guarantee given by Directors.

3. QUANTITATIVE DETAILS

the Company is engaged in the business of development & maintenance of Computer Software, offshore development and other related services. the production and sale of such software services cannot be expressed in any generic unit and hence it is not possible to give such quantitative details of sales and certain information as required under paragraph 3,4C and 4D of Part II of Schedule VI to the Companies Act, 1956. the details of Conversation of Energy, technology absorption are given in Directors Report. R&D expenditure is not separately accounted for.

4. RELATED PARTY TRANSACTIONS

List of related parties on which the company is able to exercise control.

A. SUBSIDIARIES

name of the subsidiary company: fortune 7inc transactions with above company in the ordinary course of business: nil

b. TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL

Particulars of remuneration and other benefits paid to key management personnel during the year ended March 31, 2012:

No commission paid to the directors and computation of net profit in accordance with Section 349 of the Companies Act, 1956, for commission payable to non-whole-time directors is not required.

5. DUES TO MICRO & SMALL-SCALE INDUSTRIAL UNDERTAKINGS

As at March 31, 2012 as per available information with the company, there are no dues to small scale Industrial undertakings.

6. INCOME TAXES

the provision for taxation includes tax liabilities in India on the company's global income as reduced by exempt incomes and any tax liabilities arising overseas on income sourced from those countries.

Most of the operations are conducted through Software technology Parks (StPs). Income from StPs are tax exempt for the earlier of 10 years commencing from fiscal year in which the unit commences software development or March 31, 2011. Hence, from the fiscal year ending March 31, 2012 the tax exemption is waived off.

7. SEGMENT REPORTING

As required by the Accounting Standard (AS 17) "Segment Reporting", the Company is mainly engaged in the area of Gaming Software

Development and related services. Hence segment reporting is not applicable to the Company and to the nature of its business.

8. the Balance in Sundry Debtors, Loans & Advances are subject to confirmation, and consequential adjustments if any.

9. the previous year figures have been recast / restated, wherever necessary, to the current period's classification.

10. Financial figures have been rounded off to nearest rupee.

11. Notes 1 to 15 form part of Balance Sheet and have been authenticated.