Mar 31, 2015
Dear Members,
We have pleasure in presenting the Twenty fourth Annual report together
with Audited accounts for the year ended 31st March, 2015.
FINANCIAL SUMMARY/HIGHLIGHTS, OPERATIONS, STATE OF AFFAIRS:
The performance during the period ended 31st March, 2015 has been as
under:
(Rs.)
Particulars 2014-15 2013-14
Total Income 3,298,530 1,74,03,162
Total Expenditure 17,78,11,779 6,50,34,154
Profit Before Tax (17,45,13,249) (4,76,30,992)
Provision for Tax - (1,04,22,166)
Profit/(Loss) after Tax (17,45,13,249) (3,72,08,827)
Transfer to General Reserves - -
Profit available for appropriation (17,45,13,249) (3,72,08,827)
Provision for Proposed Dividend - -
Provision for Corporate Tax - -
Balance Carried to Balance Sheet (14,45,85,346) 2,99,27,903
PERFORMANCE REVIEW:
The Company has recorded a turnover of Rs. 3,298,530 and sustained a
Loss of Rs. 17,45,13,249 in the current year against the turnover of
Rs. 17,403,162 and a Loss of Rs. 37,208,827 in the previous financial
year ending 31.03.2014.
EVENTS SUBSEQUENT TO THE DATE OF FINANCIAL STATEMENTS:
There were no material changes and commitments affecting financial
position of the company between 31st March and the date of Board's
Report. CHANGE IN THE NATURE OF BUSINESS:
During the year the Company has not changed its business activities.
DIVIDEND:
Your Directors have decided not to recommend dividend for the year as
the Company do not have profit.
BOARD MEETINGS:
The Board of Directors met 6 times during the year on 15.05.2014,
22.05.2014, 14.08.2014, 14.11.2014, 14.02.2015, and 27.03.2015 and the
maximum gap between any two meetings was less than four months, as
stipulated under Clause 49.
DIRECTORS AND KEY MANANGERIAL PERSONNEL:
During the year Ms. L. Hemalatha and Mr. B. Mohan Rao were appointed as
the Directors of the Company.
Notices have been received from Members proposing candidature of Ms. L.
Hemalatha and Mr. B. Mohan Rao for the office of Director of the
Company.
In accordance with the Companies Act, 2013 read with Articles of
Association of the company the Director namely Mr. L. Maruti Sanker
retires by rotation and being eligible, offers himself for
re-appointment at this ensuing Annual General Meeting. Your Directors
recommend his re-appointment.
POLICY FOR SELECTION OF DIRECTORS AND DETERMINING DIRECTORS'
INDEPENDENCE:
1. Scope:
This policy sets out the guiding principles for the Nomination &
Remuneration Committee for identifying persons who are qualified to
become Directors and to determine the independence of Directors, in
case of their appointment as independent Directors of the Company.
2. Terms and References:
2.1 "Director" means a director appointed to the Board of a Company.
2.2 "Nomination and Remuneration Committee means the committee
constituted in accordance with the provisions of Section 178 of the
Companies Act, 2013 and clause 49 of the Equity Listing Agreement.
2.3 "Independent Director" means a director referred to in sub-section
(6) of Section 149 of the Companies Act, 2013 and Clause 49(II)(B) of
the Equity Listing Agreement.
3. Policy:
Qualifications and criteria
3.1.1 The Nomination and Remuneration Committee, and the Board, shall
review on annual basis, appropriate skills, knowledge and experience
required of the Board as a whole and its individual members. The
objective is to have a board with diverse background and experience
that are relevant for the Company's operations.
3.1.2 In evaluating the suitability of individual Board member the
Nomination and Remuneration Committee may take into account factors,
such as:
* General understanding of the company's business dynamics, global
business and social perspective;
* Educational and professional background
* Standing in the profession;
* Personal and professional ethics, integrity and values;
* Willingness to devote sufficient time and energy in carrying out
their duties and responsibilities effectively.
3.1.3 The proposed appointee shall also fulfill the following
requirements:
* shall possess a Director Identification Number;
* shall not be disqualified under the companies Act, 2013;
* shall Endeavour to attend all Board Meeting and Wherever he is
appointed as a Committee Member, the Committee Meeting;
* shall abide by the code of Conduct established by the company for
Directors and senior Management personnel;
* shall disclose his concern or interest in any company or companies or
bodies corporate, firms, or other association of individuals including
his shareholding at the first meeting of the Board in every financial
year and thereafter whenever there is a change in the disclosures
already made;
* Such other requirements as any be prescribed, from time to time,
under the companies Act, 2013, Equity listing Agreements and other
relevant laws.
3.1.4 The Nomination & Remuneration Committee shall evaluate each
individual with the objective of having a group that best enables the
success of the company's business.
3.2 criteria of independence
3.2.1 The Nomination & Remuneration Committee shall assess the
independence of Directors at time of appointment/ re-appointment and
the Board shall assess the same annually. The Board shall re-assess
determinations of independence when any new interest or relationships
are disclosed by a Director.
3.2.2 The criteria of independence shall be in accordance with the
guidelines as laid down in companies Act, 2013 and Clause 49 of the
Equity Listing Agreement.
3.2.3 The independent Director shall abide by the "code for independent
Directors "as specified in Schedule IV to the companies Act, 2013.
3.3 other directorships/committee memberships
3.3.1 The Board members are expected to have adequate time and
expertise and experience to contribute to effective Board performance
Accordingly, members should voluntarily limit their directorships in
other listed public limited companies in such a way that it does not
interfere with their role as director of the company. The Nomination
and Remuneration Committee shall take into account the nature of, and
the time involved in a director service on other Boards, in evaluating
the suitability of the individual Director and making its
recommendations to the Board.
3.3.2 A Director shall not serve as director in more than 20 companies
of which not more than 10 shall be public limited companies.
3.3.3 A Director shall not serve an independent Director in more than 7
listed companies and not more than 3 listed companies in case he is
serving as a whole-time Director in any listed company.
3.3.4 A Director shall not be a member in more than 10 committee or act
chairman of more than 5 committee across all companies in which he
holds directorships.
For the purpose of considering the limit of the committee, Audit
committee and stakeholder's relationship committee of all public
limited companies, whether listed or not, shall be included and all
other companies including private limited companies, foreign companies
and companies under section 8 of the companies Act, 2013 shall be
excluded.
Remuneration policy for Directors, key managerial personnel and other
employees
1. Scope:
1.1 This policy sets out the guiding principles for the Nomination and
Remuneration committee for recommending to the Board the remuneration
of the directors, key managerial personnel and other employees of the
company.
2. Terms and Reference:
In this policy the following terms shall have the following meanings:
2.1 "Director" means a director appointed to the Board of the company.
2.2 "key managerial personnel" means
(i) The Chief Executive Officer or the managing director or the
manager;
(ii) The company secretary;
(iii) The whole-time director;
(iv) The chief financial Officer; and
(v) Such other office as may be prescribed under the companies Act,
2013
2.3 "Nomination and Remuneration committee" means the committee
constituted by Board in accordance with the provisions of section 178
of the companies Act, 2013 and clause 49 of the Equity Listing
Agreement.
3. Policy:
3.1 Remuneration to Executive Director and key managerial personnel
3.1.1 The Board on the recommendation of the Nomination and
Remuneration (NR) committee shall review and approve the remuneration
payable to the Executive Director of the company within the overall
approved by the shareholders.
3.1.2 The Board on the recommendation of the Nomination and
Remuneration committee shall also review and approve the remuneration
payable to the key managerial personnel of the company.
3.1.3 The remuneration structure to the Executive Director and key
managerial personnel shall include the following components:
(i) Basic pay
(ii) Perquisites and Allowances
(iii) Stock Options
(iv) Commission (Applicable in case of Executive Directors)
(v) Retrial benefits
(vi) Annual performance Bonus
3.1.4 The Annual plan and Objectives for Executive committee shall be
reviewed by the NR committee and Annual performance Bonus will be
approved by the committee based on the achievement against the Annual
plan and Objectives.
3.2 Remuneration to Non - Executive Directors
3.2.1 The Board, on the recommendation of the Nomination and
Remuneration Committee, shall review and approve the remuneration
payable to the Non - Executive Directors of the Company within the
overall limits approved by the shareholders as per the provisions of
Companies Act, 2013.
3.2.2 Non - Executive Directors shall be entitled to sitting fees
attending the meetings of the Board and the Committees thereof.
3.3. Remuneration to other employees
3.3.1. Employees shall be assigned grades according to their
qualifications and work experience, competencies as well as their roles
and responsibilities in the organization. Individual remuneration shall
be determined within the appropriate grade and shall be based on
various factors such as job profile skill sets, seniority, experience
and prevailing remuneration levels for equivalent jobs.
DECLARATION FROM INDEPENDENT DIRECTORS ON ANNUAL BASIS:
The Company has received necessary declaration from Mr. M. Rama Mohan
Rao and Mr. A. Seetarama Murthy, Independent Directors of the Company
under Section 149(7) of the Companies Act, 2013 that they as
Independent Directors of the Company meet with the criteria of their
Independence laid down in Section 149(6).(Annexure II)
AUDIT COMMITTEE:
The Audit Committee of the Company is constituted in line with the
provisions of Clause 49 of the Listing Agreements with the Stock
Exchanges read with Section 177 of the Companies Act, 2013.
II) The terms of reference of the Audit Committee include a review of
the following:
* Overview of the Company's financial reporting process and disclosure
of its financial information to ensure that the financial statements
reflect a true and fair position and that sufficient and credible
information is disclosed.
* Recommending the appointment and removal of external auditors,
fixation of audit fee and also approval for payment for any other
services.
* Discussion with external auditors before the audit commences, of the
nature and scope of audit as well as post-audit discussion to ascertain
any area of concern.
* Reviewing the financial statements and draft audit report including
quarterly / half yearly financial information.
* Reviewing with management the annual financial statements before
submission to the Board, focusing on:
1. Any changes in accounting policies and practices;
2. Qualification in draft audit report;
3. Significant adjustments arising out of audit;
4. The going concern concept;
5. Compliance with accounting standards;
6. Compliance with stock exchange and legal requirements concerning
financial statements and
7. Any related party transactions
* Reviewing the company's financial and risk management's policies.
* Disclosure of contingent liabilities.
* Reviewing with management, external and internal auditors, the
adequacy of internal control systems.
* Reviewing the adequacy of internal audit function, including the
audit character, the structure of the internal audit department,
approval of the audit plan and its execution, staffing and seniority of
the official heading the department, reporting structure, coverage and
frequency of internal audit.
* Discussion with internal auditors of any significant findings and
follow-up thereon.
* Reviewing the findings of any internal investigations by the internal
auditors into the matters where there is suspected fraud or
irregularity or a failure of internal control systems of a material
nature and reporting the matter to the Board.
* Looking into the reasons for substantial defaults in payments to the
depositors, debenture holders, shareholders (in case of non- payment of
declared dividends) and creditors.
* Reviewing compliances as regards the Company's Whistle Blower Policy.
III) The previous Annual General Meeting of the Company was held on
30.09.2014 and Chairman of the Audit Committee, attended previous
AGM.
IV) The composition of the Audit Committee and the attendance of each
member of the Audit Committee are given below:
The Company has complied with all the requirements of Clause 49 (II) (A)
of the Listing Agreement relating to the composition of the Audit
Committee. During the financial year 2014-2015, (5) four meetings of the
Audit Committee were held on the 22.05.2014, 14.08.2014, 14.11.2014 and
14.02.2015.
The details of the composition of the Committee and attendance of the
members at the meetings are given below:
1) Mr. M. Ramamohan Rao -- Chairman
2) Mr. A.S.R. Murthy -- Member
3) Mr. L. Maruti Sanker -- Member
4) Ms. L. Hemalatha -- Member
Name Designation Category No. of
meetings held
during their
tenure
Mr. M. Rammohan Rao Chairman NED (I) 4
Mr. ASR Murthy Member NED(I) 4
Mr. L. Maruti Sanker Member ED(P) 4
* Ms. L. Hemalatha Member ED (P) 0
Name No. of
meetings
attended
Mr. M. Rammohan Rao 4
Mr. ASR Murthy 3
Mr. L. Maruti Sanker 4
* Ms. L. Hemalatha 0
NED (I): Non Executive Independent Director
ED (P): Executive Director Promoter
* Appointed w.e.f 27.03.2015
NOMINATION & REMUNERATION COMMITTEE:
The details of composition of the Committee are given below:
Name Designation Category
Mr. A.S.R. Murthy Chairman NED (I)
Mr. M. Ramamohan Rao Member NED(I)
Mr. L. Maruti sanker Member ED (P)
* Ms. L. Hemalatha Member ED (P)
Name No. of No. of
meetings held meetings
during their attended
tenure
Mr. A.S.R. Murthy 4 3
Mr. M. Ramamohan Rao 4 4
Mr. L. Maruti sanker 4 4
* Ms. L. Hemalatha 0 0
NED (I): Non Executive Independent Director
ED (P): Executive Director Promoter
* Appointed w.e.f 27.03.2015
Terms of reference:
The main term of reference of the Committee is to approve the
fixation/revision of remuneration of the Managing Director/Whole Time
Director of the Company and while approving:
* To take into account the financial position of the Company, trend in
the industry, appointee's qualification, experience, past performance,
past remuneration etc.
* To bring out objectivity in determining the remuneration package
while striking a balance between the interest of the Company and the
Shareholders.
Remuneration Policy:
The objectives of the remuneration policy are to motivate Directors to
excel in their performance, recognize their contribution and retain
talent in the organization and reward merit.
The remuneration levels are governed by industry pattern,
qualifications and experience of the Directors, responsibilities
shouldered, individual performance etc.
No remuneration has been paid to the Executive Directors during the
year.
STAKEHOLDER RELATIONSHIP COMMITTEE (SHAREHOLDERS/INVESTOR GRIEVANCE AND
SHARE TRANSFER COMMITTEE):
Composition, meetings and the attendance during the year:
The Shareholders/Investors Grievance Committee was constituted to look
into the redressing of Shareholders and Investors complaints concerning
transfer of shares, non receipt of Annual Reports, and non receipt of
Dividend and other allied complaints.
A. The details of composition of the Committee are given below:
Name Designation Category
Mr. L. Maruti Banker Chairman ED (P)
M. Rammohan Rao Member NED(I)
Mr. A.S.R. Murthy Member NED(I)
*Ms. L. Hemalatha Member ED (P)
Name No. of No. of
meetings held meetings
during their attended
tenure
Mr. L. Maruti Banker 4 4
M. Rammohan Rao 4 4
Mr. A.S.R. Murthy 4 4
*Ms. L. Hemalatha 0 0
NED (I): Non Executive Independent Director
ED (P): Executive Director Promoter
* Appointed w.e.f 27.03.2015
B. Powers:
The Committee has been delegated with the following powers:
* to redress shareholder and investor complaints relating to transfer
of shares, Dematerialization of Shares, non-receipt of Annual Reports,
non-receipt of declared dividend and other allied complaints.
* to approve, transfer, transmission, and issue of duplicate / fresh
share certificate(s)
* Consolidate and sub-division of share certificates etc.
* To redress, approve and dispose off any, other complaints,
transactions and requests etc., received from any shareholder of the
company and investor in general.
The Board has delegated the power to process the transfer and
transmission of shares to the Registrar and Share Transfer Agents, who
process share transfers within a week of lodgment in the case of shares
held in physical form.
The Company has designated an e-mail ID called [email protected]
for redressal of shareholders' complaints/grievances.
RISK MANAGEMENT COMMITTEE
A.) Composition:
The Details of composition of the Committee are given below:
Name Designation Category
Mr. L. Maruti Sanker Chairperson ED(P)
Mr. M. Rama mohan Rao Member NED(I)
NED (I) : Non Executive Independent Director
NED (Ni) : Non Executive Non-Independent
Role and Responsibilities of the Committee includes the following:
* Framing of Risk Management Plan and Policy
* Overseeing implementation of Risk Management Plan and Policy
* Monitoring of Risk Management Plan and Policy
* Validating the process of risk management
* Validating the procedure for Risk minimization.
* Periodically reviewing and evaluating the Risk Management Policy and
practices with respect to risk assessment and risk management
processes.
* Continually obtaining reasonable assurance from management that all
known and emerging risks have been identified and mitigated or managed.
VIGIL MECHANISM:
Vigil Mechanism Policy has been established by the Company for
directors and employees to report genuine concerns pursuant to the
provisions of section 177(9) & (10) of the Companies Act, 2013. The
same has been placed on the website of the Company.
DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to the provisions of Sec. 134(5) of the Companies Act, 2013
the Board of Directors of your Company hereby certifies and confirms
that:
a. In the preparation of the Annual Accounts, the applicable
accounting standards have been followed along with proper explanation
relating to material departures;
b. The Directors have selected such accounting policies and applied
them consistently and made judgment and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company at the end of the financial year and of the profit and
loss of the Company for that period;
c. The Directors have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 2013 for safeguarding the Assets of
the Company and for preventing and detecting fraud and other
irregularities;
d. The Directors have prepared the Annual accounts on a going concern
basis.
e. The Directors of the Company had laid down internal financial
controls and such internal financial controls are adequate and were
operating effectively.
f. The directors had devised proper systems to ensure compliance with
the provisions of all applicable laws and that such systems were
adequate and operating effectively.
STATUTORY COMPLIANCE:
The Company has complied with the required provisions relating to
statutory compliance with regard to the affairs of the Company in all
respects.
SUBSIDIARY COMPANY:
Your Company does not have any subsidiary.
EXTRACT OF ANNUAL RETURN:
As required pursuant to section 92(3) of the Companies Act, 2013 and
rule 12(1) of the Companies (Management and Administration) Rules,
2014, an extract of annual return in MGT 9 as a part of this Annual
Report (FORMAT IN ANNEXURE I)
AUDITORS:
M/s. M.M Reddy & Co, Chartered Accountants, Statutory Auditors of the
Company retire at the ensuing Annual General Meeting and being
eligible, have expressed their willingness for re-appointment. Your
directors propose the appointment of M/s. M.M Reddy & Co, Chartered
Accountants, as statutory auditors to hold office until the conclusion
of the next Annual General Meeting of the company.
INTERNAL AUDITORS:
M/s. Chanamolu & Co. Chartered Accountants, Hyderabad are the internal
Auditors of the Company.
SECRETARIAL AUDIT:
Pursuant to the provisions of Section 134(3)(f) & Section 204 of the
Companies Act, 2013, Secretarial audit report as provided by M/s. S. S.
Reddy & Associates, Practicing Company Secretaries is annexed to this
Report as annexure.
AUDIT REPORTS:
(a) Statutory Auditors Report:
The Board has duly reviewed the Statutory Auditor's Report on the
Accounts for the year ended March 31, 2015 and has noted that the same
does not have any reservation, qualification or adverse remarks.
However, the Board decided to further strengthen the existing system
and procedures to meet all kinds of challenges and growth in the market
expected in view of the robust capital market in the coming years.
(b) Secretarial Audit Report:
The Board has duly reviewed the Secretarial Audit Report on the
Compliances according to the provisions of section 204 of the Companies
Act 2013, and noted that the secretarial Audit Report contains the
following observations.
The Board has duly reviewed the Secretarial Audit Report on the
Compliances according to the provisions of section 204 of the Companies
Act 2013, and noted is at the same that the company has not appointed
company secretary, CFO and Internal Auditor during the year but the
company is taking necessary measures to appoint the same at the
earliest.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
EARNINGS AND OUT GO:
The required information as per Sec.134 (3) (m) of the Companies Act
2013 is provided hereunder:
A. Conservation of Energy
Adequate measures have been taken to reduce energy consumption,
wherever possible. Total energy consumption and energy consumption per
unit of production is not applicable as company is not included in the
industries specified in the schedule.
B. Technology Absorption
1. Research and Development (R&D) : Nil
2. Technology absorption, adoption and innovation : Nil
C. Foreign Exchange Earnings and Out Go
1. Foreign Exchange Earnings : Rs. 19,54,141/-
2. Foreign Exchange Outgo : Nil
PUBLIC DEPOSITS:
Your Company has not accepted any deposits falling within the meaning
of Sec.73 of the Companies Act, 2013 read with the Companies
(Acceptance of Deposits) Rules, 2014 during the financial year under
review.
SIGNIFICANT & MATERIAL ORDERS PASSED BY THE REGULATORS:
During the period under review there were no significant and material
orders passed by the regulators or Courts or Tribunals impacting the
going concern status and the company's operations in future.
INSURANCE:
The company's properties have been adequately insured against major
risks. All the insurable interests of your Company including
machinery, stock and liabilities under legislative enactments are
adequately insured.
PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS:
The company has not given loans, Guarantees or made any investments
during the year under review.
RISK MANAGEMENT POLICY:
Your Company follows a comprehensive system of Risk Management. Your
Company has adopted a procedure for assessment and minimization of
probable risks. It ensures that all the risks are timely defined and
mitigated in accordance with the well structured risk management
process.
CORPORATE SOCIAL RESPONSIBILITY POLICY:
Since your Company does not have the net worth of Rs. 500 Crores or
more, or turnover of Rs. 1000 Crores or more, or a net profit of Rs. 5
Crores or more during the financial year, so section 135 of the
Companies Act, 2013 relating to Corporate Social Responsibility is not
applicable to the Company and hence the Company need not adopt any
Corporate Social Responsibility Policy
RELATED PARTY TRANSACTIONS:
During the year, the Company had not entered into any
contract/arrangement/transaction with related parties which could be
considered material in accordance with the policy of the company on
materiality of related party transactions.
The Policy on materiality of related party transactions and dealing
with related party transactions as approved by the Board may be
accessed on the Company's website at www.7seasent.com.
FORMAL ANNUAL EVALUATION:
As per section 149 of the Companies Act, 2013 read with clause VII (1)
of the schedule IV and rules made thereunder, the independent Directors
of the company had a meeting on 27.03.2015 without attendance of non-
independent directors and members of management. In the meeting the
following issues were taken up:
(a) Review of the performance of non-independent Directors and the
Board as a whole;
(b) Review of the performance of the Chairperson of the company, taking
into account the views of executive directors and non-executive
directors;
(c) Assessing the quality, quantity and timeliness of flow of
information between the company management and the Board that is
necessary for the Board to effectively and reasonably perform their
duties.
The meeting also reviewed and evaluated the performance of non-
independent Directors. The company has 3 (three) non-independent
Directors namely:
i) Mr. L. Maruti Sanker
ii) Mr. B. Mohan Rao
iii) Ms. L. Hemalatha
The meeting recognized the significant contribution made by non-
independent directors in the shaping up of the company and putting the
company on accelerated growth path. They devoted more time and
attention to bring up the company to the present level.
The meeting also reviewed and evaluated the performance of the Board as
whole in terms of the following aspects:
* Preparedness for Board/Committee meetings
* Attendance at the Board/Committee meetings
* Guidance on corporate strategy, risk policy, corporate performance
and overseeing acquisitions and disinvestments.
* Monitoring the effectiveness of the company's governance practices
* Ensuring a transparent board nomination process with the diversity of
experience, knowledge, perspective in the Board.
* Ensuring the integrity of the company's accounting and financial
reporting systems, including the independent audit, and that
appropriate systems of control are in place, in particular, systems for
financial and operational control and compliance with the law and
relevant standards.
It was noted that the Board Meetings have been conducted with the
issuance of proper notice and circulation of the agenda of the meeting
with the relevant notes thereon.
DISCLOSURE ABOUT COST AUDIT:
Cost Audit is not applicable to your Company.
REMUNERATION TO EACH DIRECTOR:
Under section 197(12) of the Companies Act, 2013, and Rule 5(1)(2) &
(3) of the Companies(Appointment & Remuneration) Rules, 2014, a
remuneration of Rs. 24,00,000/- p.a. is being paid to Mr. L. Maruti
Sanker, Managing Director of the Company.
The required disclosures are given as Annexure.
CORPORATE GOVERNANCE AND SHAREHOLDERS INFORMATION:
Since the paid up capital of the Company is less than Rs. 10 Crores and
Net worth of the Company is less than Rs. 25 Crores, Corporate
Governance is Not Applicable.
INDUSTRY BASED DISCLOSURES AS MANDATED BY THE RESPECTIVE LAWS GOVERNING
THE COMPANY:
The Company is not a NBFC, Housing Companies etc., and hence Industry
based disclosures is not required.
SECRETARIAL STANDARDS
EVENT BASED DISCLOSURES:
S.No. Particulars
1 Issue of sweat equity share NA
2 Issue of shares with differential rights NA
3 Issue of shares under employee's stock option scheme NA
4 Disclosure on purchase by company or giving of loans by NA
it for purchase of its shares
5 Buy-back shares NA
6 Disclosure about revision NA
7 Preferential Allotment NA
EMPLOYEE RELATIONS:
Your Directors are pleased to record their sincere appreciation of the
contribution by the staff at all levels in the improved performance of
the Company.
None of the employees is drawing Rs. 5,00,000/- and above per month or
Rs. 60,00,000/- and above in aggregate per annum, the limits
prescribed under Section 134 of the Companies Act, 2013.
DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has in place an Anti Sexual Harassment Policy in line with
the requirements of The Sexual Harassment of Women at workplace
(Prevention, Prohibition and Redressal) Act, 2013. Internal Complaint
Committee (ICC) has been set up to redress complaints received
regarding sexual harassment. All employees are covered under this
policy.
The following is the summary of sexual harassment complaints received
and disposed during the calendar year.
No. of complaints received : Nil
No. of complaints disposed off : Nil
ACKNOWLEDGEMENTS:
Your directors would like to express their grateful appreciation for
assistance and co-operation received from clients, banks, investors,
Government, other statutory authorities and all others associated with
the company. Your directors also wish to place on record their deep
sense of appreciation for the excellent contribution made by the
employees at all levels, which enabled the company to achieve sustained
growth in the operational performance during the year under review.
For and on behalf of the Board of
M/s. 7Seas Entertainment Limited
Sd/- Sd/-
L. Maruti Sanker L .Hemalatha
Place: Hyderabad Managing Director Whole time Director
Date: 14.08.2015 (DIN: 01095047) ( DIN: 02226943)
Mar 31, 2014
The Members
We have pleasure in presenting the 23rd Annual Report with Audited
Statements of Accounts for the year ended 31st March 2014.
FINANCIAL RESULTS:
(Lakhs)
Particulars 2013-14 2012-13
Income 174.03 1073.65
Expenditure 650.34 1057.39
Profit/Loss for the year (372.09) 4.16
Add: Profit brought forward 671.37 667.20
Profit / (Loss) carried to Balance Sheet 299.28 671.37
DIVIDEND:
Your Directors express their inability to recommend dividend for the
year.
PUBLIC DEPOSITS:
Your Company has not accepted any deposits falling within the meaning
of Sec.58A of the Companies Act, 1956 read with the Companies
(Acceptance of Deposits) Rules, during the financial year under review.
LISTING:
The equity shares of your company are listed on The Ahmedabad Stock
Exchange Limited and are being traded on Indo Next Model of BSE
Limited.
ALLOTMENT OF EQUITY SHARES:
During the year the company has converstion of warrants of into equity
Shares. The company paid up capital 71,10,9000 divided into 71,10,900
equity shares of Rs. 10/- each.
SUBSIDIARY COMPANY:
Company is in process to close its subsidiary M/s Fortune 7Inc, USA due
to reduced business volume and unviable business opportunities for M/s.
Fortune 7lnc, U.S.A 100% subsidiary of the Company, after taking
appropriate approvals.
MANAGEMENT DISCUSSION AND ANALYSIS:
A detailed review of operations, performance and future outlook of your
Company and its businesses is given in the Management Discussion and
Analysis, which forms part of this Report as Annexure.
INSURANCE:
The company''s assets have been adequately insured against major risks.
DIRECTORS:
The Board of Directors of the Company has decided to adopt the
provisions with respect to appointment and tenure of Independent
Directors which is consistent with the Companies Act, 2013 and the
amended Listing Agreement. With the changes in the Companies Act, the
Company would not have any upper age limit of retirement of Independent
Directors from the Board and their appointment and tenure will be
governed by the provisions of Companies Act, 2013. In line with the
requirements of the Companies Act, 2013, it is therefore proposed to
appoint existing independent directors, as Independent Directors on the
Board of the Company for a term up to five consecutive years. A brief
profile of proposed Independent Directors, including nature of their
expertise, is provided in this Annual Report.
Notices have been received from Members proposing candidature of the
Directors namely Mr. ASR Murthy, and Mr. Ramamohan Rao for the office
of Independent Directors of the Company. In the opinion of the Board,
they fulfill the conditions specified in the Companies Act, 2013 and
the Rules made there under for appointment as Independent Directors of
the Company.
DIRECTORS'' RESPONSIBILITY STATEMENT:
Pursuant to the requirement under Section 217 (2AA) of the Companies
Act, 1956 with respect to the Directors'' Responsibility Statement, it
is hereby confirmed that:
i. In the preparation of the annual accounts for the year ended 31st
March, 2014, the applicable accounting standards have been followed and
there are no material departures.
ii. We have selected appropriate accounting policies and applied them
consistently and have made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the Company as on 31st March 2014 and of the profit of the company
for the financial year ended 31st March 2014.
iii. We have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities; and
iv. We have prepared the annual accounts for the financial year ended
31st March, 2014 on a going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION & FOREIGN EXCHANGE
EARNINGS AND OUTGO:
The required information as per Sec.217 (1) (e) of the Companies Act
1956 is provided hereunder:
A. Conservation of Energy:
Your Company''s operations are not energy intensive. Adequate measures
have been taken to conserve energy wherever possible by using energy
efficient computers and purchase of energy efficient equipment.
B. Technology Absorption:
1. Research and Development (R&D) : NIL
2. Technology absorption, adoption and innovation : NIL
C. Foreign Exchange Earnings and Out Go:
Foreign Exchange Earnings : Rs. 31.67 lacs
Foreign Exchange Outgo : NIL
PARTICULARS OF EMPLOYEES:
There is no employee who is falling under section 217 (2A). Therefore,
the disclosures required to be made under section 217 (2A) of the
Companies Act, 1956 and the rules made there under are not applicable.
CODE OF CONDUCT:
The Code of Conduct has been circulated to all the members of the Board
and Senior Management and the compliance of the same has been affirmed
by them. Code of Conduct has also been placed on the website of the
company. A declaration signed by the Managing Director is given in
Annexure.
AUDITORS:
Your directors propose the appointment of M/s. M. M. Reddy & Co. as
statutory auditors to hold office until the conclusion of the next
Annual General Meeting of the company.
CORPORATE GOVERNANCE:
As a listed company, necessary measures have been taken to comply with
the listing agreements of Stock Exchanges. A report on Corporate
Governance, along with a certificate of compliance from the Auditors
forms part of this Report as Annexure.
ACKNOWLEDGEMENTS:
Your directors would like to express their grateful appreciation for
assistance and co- operation received from clients, banks, investors,
Government, other statutory authorities and all others associated with
the company. Your directors also wish to place on record their deep
sense of appreciation for the excellent contribution made by the
employees at all levels, which enabled the company to achieve sustained
growth in the operational performance during the year under review.
DECLARATION BY MANAGING DIRECTOR OF AFFIRMATION BY DIRECTORS AND SENIOR
MANAGEMENT PERSONNEL OF COMPLIANCE WITH THE CODE OF CONDUCT:
The shareholders
I, L. Maruti Sanker, Managing Director of the Company do hereby declare
that the directors and senior management of the Company have exercised
their authority and powers and discharged their duties and functions in
accordance with the requirements of the code of conduct as prescribed
by the company and have adhered to the provisions of the same.
For and on behalf of the Board
For 7Seas Entertainment Limited
Place: Hyderabad Sd/-
Date: 14.08.2014 L. Maruti Sanker
Managing Director
(DIN : 01095047)
Mar 31, 2013
To The Members
The have pleasure in presenting the 22nd Annual Report with Audited
Statements of Accounts for the year ended 31st March 2013.
FINANCIAL RESULTS: (Rupees in Lakhs)
On Standalone Basis:
Particulars 2012-13 2011-12
Income 1073.65 1696.30
Expenditure 1057.39 1246.25
Profit for the year 4.16 299.18
Add: Profit
brought forward 667.20 395.81
Profit / (Loss) carried
to Balance Sheet 671.37 667.20
On Consolidated Basis:
Particulars 2012-13 2011-12
Income 1250.24 2309.09
Expenditure 1255.60 1837.86
Profit for the year (17.46) 316.98
Add: Profit brought forward 691.43 402.24
Profit / (Loss) carried
to Balance Sheet 673.97 691.43
PERFORMANCE REVIEW :
During the financial year 2012-13, the global economic environment was
on a slow growth path. There were signs of faster growth in certain
geographies, primarily in the emerging markets. The prevailing
uncertainties were challenging, which called for much higher level of
efficiency and preparedness for participants in the market.
The Company on standalone basis has recorded a turnover of Rs. 1073.65
Lakhs and the profit of Rs. 4.16 Lakhs in the current year against the
turnover of Rs. 1696.30 lakhs and profit of Rs. 299.18 Lakhs in the
previous financial year ending 31.03.2012.
The Company has been continuously working on quality up gradation and
austerity measures for achieving efficient running of the organization.
DIVIDEND :
Keeping the Company''s expansion and growth plans in mind, your
Directors have decided not to recommend dividend for the year.
PUBLIC DEPOSITS :
Your Company has not accepted any deposits falling within the meaning
of Sec.58A of the Companies Act, 1956 read with the Companies
(Acceptance of Deposits) Rules, during the financial year under review.
LISTING :
The equity shares of your company are listed on The Ahmedabad Stock
Exchange and are being traded on IndoNext Model of BSE Limited.
ALLOTMENT OF EQUITY SHARES :
In the month of April, 2013, the Company has converted 5,50,000
convertible warrants into 5,50,000 equity shares of Rs. 10 /- each with
the premium of Rs. 35/- per share.With this the paid up capital of the
Company stands at Rs. 7,03,59,000 divided into 70,35,900 equity shares
of Rs. 10/each.
SUBSIDIARY COMPANY :
Company is in process to close its subsidiary M/s Fortune 7Inc, USA due
to reduced business volume and unviable business opportunities for M/s.
Fortune 7lnc, U.S.A 100% subsidiary of the Company, after taking
appropriate approvals.
MANAGEMENT DISCUSSION AND ANALYSIS :
A detailed review of operations, performance and future outlook of your
Company and its businesses is given in the Management Discussion and
Analysis, which forms part of this Report as Annexure.
INSURANCE :
The company''s assets have been adequately insured against major risks.
DIRECTORS :
In accordance with the Companies Act, 1956 read with Articles of
Association of the company, the Director namely Mr. A.S.R. Murthy
retires by rotation and is eligible for re-appointment. Your Board
recommends the re appointment of the Director above in the best
interests of the company.
During the year the director namely Mr. D.V.S. Prasad resigned from the
Board w.e.f. 28.09.2012. The Board placed on record its sincere
appreciation for the valuable services rendered by him during his
tenure as director of the company.
BRIEF PROFILE OF MR. A.S.R.MURTHY :
Particulars Mr. A.S.R. Murthy
Date of Birth 22.11.1968
Date of Appointment 23.07.2011
Qualifications Graduate
No. of Shares held in the Company Nil
Directorships held in other companies Nil
(excluding private limited and
foreign companies)
Positions held in mandatory committees Nil
of other companies__
DIRECTORS'' RESPONSIBILITY STATEMENT:
In pursuance of Section 217(2AA) of the Companies Amendment Act, 2000
your directors confirm:
(I) that in the preparation of the annual accounts, the applicable
accounting standards have been followed;
(ii) that they have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the company as at the end of the financial year 31.03.2013 and of the
profits of the company for that period;
(iii) that they have taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act,1956 for safe guarding the assets of
the company and for preventing and detecting fraud and other
irregularities;
(iv) that they have prepared the annual accounts on a going concern
basis.
A. Conservation of Energy :
Your Company''s operations are not energy intensive. Adequate measures
have been taken to conserve energy wherever possible by using energy
efficient computers and purchase of energy efficient equipment.
B. Technology Absorption:
1. Research and Development (R&D) : NIL
2. Technology absorption, adoption and innovation : NIL
PARTICULARS OF EMPLOYEES :
There is no employee who is falling under section 217 (2A). Therefore,
the disclosures required to be made under section 217 (2A) of the
Companies Act, 1956 and the rules made there under are not applicable.
CODE OF CONDUCT :
The Code of Conduct has been circulated to all the members of the Board
and Senior Management and the compliance of the same has been affirmed
by them. Code of Conduct has also been placed on the website of the
company. A declaration signed by the Managing Director is given in
Annexure.
AUDITORS :
Your directors propose the appointment of M/s. M M Reddy & Co. as
statutory auditors to hold office until the conclusion of the next
Annual General Meeting of the company.
CORPORATE GOVERNANCE :
As a listed company, necessary measures have been taken to comply with
the listing agreements of Stock Exchanges. A report on Corporate
Governance, along with a certificate of compliance from the Auditors
forms part of this Report as Annexure.
ACKNOWLEDGEMENTS :
Your directors would like to express their grateful appreciation for
assistance and co-operation received from clients, banks, investors,
Government, other statutory authorities and all others associated with
the company. Your directors also wish to place on record their deep
sense of appreciation for the excellent contribution made by the
employees at all levels, which enabled the company to achieve sustained
growth in the operational performance during the year under review.
DECLARATION BY MANAGING DIRECTOR OF AFFIRMATION BY DIRECTORS AND SENIOR
MANAGEMENT PERSONNEL OF COMPLIANCE WITH THE CODE OF CONDUCT:
The shareholders
I, L. Maruti Sanker, Managing Director of the Company do hereby declare
that the directors and senior management of the Company have exercised
their authority and powers and discharged their duties and functions in
accordance with the requirements of the code of conduct as prescribed
by the company and have adhered to the provisions of the same.
For and on behalf of the Board
For 7Seas Entertainment Limited
Place: Hyderabad Sd/-
Date: 14.08.2013 L. Maruti Sanker
Managing Director
Mar 31, 2012
The have pleasure in presenting the 21st Annual Report with Audited
Statements of Accounts for the year ended 31st March 2012.
FINANCIAL RESULTS
On Standalone basis
(Rupees in Lakhs)
Particulars 2011-12 2010-11
Income 1695.95 868.34
Expenditure 1246.25 714.10
Profit for the year 299.18 122.72
Less: MAT credit 27.79 0.00
Add: Profit brought forward 395.81 273.09
Profit carried to Balance Sheet 667.20 395.81
On Consolidated basis
(Rupees in Lakhs)
Particulars 2011-12 2010-11
Income 2308.74 1362.95
Expenditure 1837.86 1202.69
Profit for the year 316.98 126.93
Less: MAt credit 27.79 0.00
Add: Profit brought forward 402.24 275.31
Profit carried to Balance Sheet 691.43 402.24
PERFORMANCE REVIEW
A) STANDALONE
The Ministry of Corporate Affairs (MCA) vide notification no. S.o.
447(E) dated 28th February, 2011 amended the existing Schedule VI to
the Companies Act, 1956. the Revised Schedule VI is applicable from
financial year commencing from 1st April, 2011. the financial
statements of your Company for the year ended 31st March, 2012 have
been prepared in accordance with the Revised Schedule VI and
accordingly, the previous year's figures have been reclassified/
regrouped to conform to this year's classification.
The Company has recorded a turnover of Rs.1695.95 Lakhs and the profit
of Rs. 299.18 Lakhs in the current year against the turnover of Rs.
868.34 lakhs and profit of Rs. 122.72 Lakhs in the previous financial
year ending 31.03.2011.
The Company has been continuously working on quality up gradation and
austerity measures for achieving efficient running of the organization.
B) CONSOLIDATION
the Company has recorded a turnover of Rs.2308.74 Lakhs and the profit
of Rs. 316.98 Lakhs in the current year against the turnover of Rs.
1362.95 Lakhs and profit of Rs. 126.93 Lakhs in the previous financial
year ending 31.03.2011.
The Consolidated Financial Statements of your company for the financial
year 2011-2012, have been prepared in compliance with applicable
Accounting Standards and where applicable Listing Agreement as
prescribed by the Securities and Exchange Board of India.
DIVIDEND
Keeping the Company's expansion and growth plans in mind, your
Directors have decided not to recommend dividend for the year.
PUbLIC DEPOSITS
Your Company has not accepted any deposits falling within the meaning
of Sec.58A of the Companies Act, 1956 read with the Companies
(Acceptance of Deposits) Rules, during the financial year under review.
Listing
The equity shares of your company are listed on the Ahmedabad Stock
Exchange and are being traded on IndoNext Model of Bombay Stock
Exchange.
CAPITAL OF THE COMPANY
During the period, the company has allotted 1,00,000 equity shares on
conversion of warrants into equity shares to the promoter at an issue
price of Rs 50/- each. Further 1,82,960 equity shares were allotted to
the employees on exercise of conversion of 1,82,960 options at an
exercise price of Rs 14.85/- per option. In view of the above
allotments, the outstanding shares of the Company during the year
increased from 62,02,940 equity shares of Rs. 10/- each to 64,85,900
equity shares of Rs. 10/- each.
UTILISATION OF FUNDS
During the period the company has raised funds of about Rs.77.17 Lakhs
by way of preferential allotment of shares / ESoPs etc. the amount has
been spent towards the capital expenditure and working capital
requirements etc., of the Company.
SUBSIDIARY COMPANY
Your Company has one wholly owned subsidiary company in the name of
Fortune 7 Inc, located in uSA with an intention to expand its products
range outside India.
MANAGEMENT DISCUSSION AND ANALYSIS
A detailed review of operations, performance and future outlook of your
Company and its businesses is given in the Management Discussion and
Analysis, which forms part of this Report.
INSURANCE
The company's assets have been adequately insured against major risks.
DIRECTORS
In accordance with the Companies Act, 1956 read with
Articles of Association of the company the Director namely Mr.
Ramamohan Rao retires by rotation and is eligible for re- appointment.
Your Board recommends the re appointment of the Director above in the
best interest of the Company.
DIRECTORS' RESPONSIBILITY STATEMENT
In pursuance of Section 217(2AA) of the Companies Amendment Act, 2000
your directors confirm i) that the directors in the preparation of the
annual accounts the applicable accounting standards have been followed
along with proper explanations relating to material departures. ii)
that the directors had selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable
and prudent so as to give a true and fair view of the state of affairs
of the company at the end of the financial year. iii) that the
directors had taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of this
Act for safe guarding the assets of the company and for preventing and
deleting fraud and other irregularities. iv) that the directors had
prepared the annual accounts on the going concern basis.
CONSERVATION OF ENERGY, TECHNOLOGY
aBsorption & foreign eXchange earnings and out go the required
information as per Sec.217 (1) (e) of the Companies Act 1956 is
provided hereunder:
A. CONSERVATION OF ENERGY
Your Company's operations are not energy intensive. Adequate measures
have been taken to conserve energy wherever possible by using energy
efficient computers and purchase of energy efficient equipment.
B. TECHNOLOGY ABSORPTION
1. Research and Development (R&D) : NIL
2. Technology absorption,
adoption and innovation : NIL
c. Foreign exchange earnings and out go
Foreign Exchange Earnings : Rs.1398.40 lacs
Foreign Exchange outgo : NIL
PARTICULARS OF EMPLOYEES
There is no employee who is falling under section 217 (2A). therefore,
the disclosures required to be made under section 217 (2A) of the
Companies Act, 1956 and the rules made there under are not applicable.
EMPLOYEES STOCK OPTION SCHEME
The members of the Company in the AGM held on 22.09.2011 approved
formulation of 'Employees Stock option Scheme - 2011'. A certificate
has been obtained from the Statutory Auditor regarding compliance with
the ESoP guidelines.
CODE OF CONDUCT
The Code of Conduct has been circulated to all the members of the Board
and Senior Management and the compliance of the same has been affirmed
by them. Code of Conduct has also been placed on the website of the
company. A declaration signed by the Managing Director is given in
Annexure.
AUDITORS
Your directors propose the appointment of M/s. M M Reddy & Co. as
statutory auditors to hold office until the conclusion of the next
Annual General Meeting of the Company.
CORPORATE GOVERNANCE
As a listed company, necessary measures have been taken to comply with
the listing agreements of Stock Exchanges. A report on Corporate
Governance, along with a certificate of compliance from the Auditors,
Forms part of this Report as Annexure.
AWARDS TO THE COMPANY
a. the Company for the 4th year in a row has won the International
Stevie Business Award 2011 in creative and media award category for
best website design for its free mobile content portal www.mobizill.com
b. Has won 'Game Site Standard of Excellence Award from Web Marketing
Association for the year 2011 for its online gaming portal
www.onlinerealgames.com
c. Has won two FICCI (BAF) Awards 2012 in online games category for
its online game 'kiLLer instinct' and in mobile game category for its
mobile game 'aLeXia the great'.
d. Has won the 24 FPS 2011 MAAC International Animation Award under
'Best Game Design' category for its online casual game 'the darkman'
e. Has won Appreciation Award from CSI (Computer Society of India)
2011 for its online casual game 'the darkman'
ACKNOWLEDGEMENTS
Your directors would like to express their grateful appreciation for
assistance and co-operation received from clients, banks, investors,
Government, other statutory authorities and all others associated with
the company. Your directors also wish to place on record their deep
sense of appreciation for the excellent contribution made by the
employees at all levels, which enabled the company to achieve sustained
growth in the operational performance during the year under review.
DECLARATION BY MANAGING DIRECTOR OF AFFIRMATION bY DIRECTORS AND SENIOR
MANAGEMENT PERSONNEL OF COMPlIANCE WITH THE CODE OF CONDUCT THE
SHAREHOLDERS
I, L. Maruti Sanker, Managing Director of the Company do hereby declare
that the directors and senior management of the Company have exercised
their authority and powers and discharged their duties and functions in
accordance with the requirements of the code of conduct as prescribed
by the company and have adhered to the provisions of the same.
For and on Behalf of the Board
7SEAS ENTERTAINMENT LIMITED
Sd/-
Place : Hyderabad L. MARUTI SANKER
Date : 31.07.2012 Managing Director
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