Sea TV Network Limited interest omission lifts loss by Rs 1.35 crore

Sea TV Network Limited (Sea TV) would have reported a first-half loss Rs 1.35 crore higher for the half year ended September 30, 2026 had it recognised interest on unsecured loans, according to its statutory auditor’s November 4, 2026 limited review. The auditor said the omitted expense did not comply with Ind AS 109 requirements.

Why was Sea TV's first-half loss understated?

Sea TV’s loss for the half year ended September 30, 2026 would have been higher by Rs 1.35 crore if it had provided for interest on unsecured loans, Doogar & Associates said in review reports dated November 4, 2026. The auditor said Sea TV computed the amount and disclosed its effect on retained earnings in note 4 to the accompanying unaudited standalone financial results.

The omission also affected the quarter ended September 30, 2026. Doogar & Associates said recognition of the interest would have increased Sea TV’s quarterly loss by Rs 68.13 lakh. The half-year amount covers six months, while the quarterly amount covers three months, making the first-half impact materially higher than the effect identified for the September quarter alone.

The review reports describe the matter as an unprovided interest expense on unsecured loans, not as a change in revenue or a disclosed cash outflow. Sea TV’s filing does not provide the reported quarterly or half-year loss before this interest adjustment. It also does not state the underlying unsecured-loan balance that generated the Rs 1.35 crore first-half amount.

What did Ind AS 109 require Sea TV to do?

Doogar & Associates said Sea TV’s non-recognition of current-quarter interest expense did not comply with the principles of Indian Accounting Standard 109, or Ind AS 109, Financial Instruments. The auditor said that standard requires financial liabilities to be measured at amortised cost using the effective-interest method, subject to a contractual waiver of interest.

The report says the requirement applies irrespective of actual payment. In practical accounting terms, the auditor’s observation is that the absence of a payment during the quarter ended September 30, 2026 did not by itself remove the need to recognise the interest expense identified in note 4, unless the interest had been contractually waived.

The auditor linked the omission to retained earnings as well as the period’s loss. Retained earnings are accumulated profits or losses within shareholders’ equity, but the supplied filing pages do not state Sea TV’s retained-earnings balance at September 30, 2026. They only identify the disclosed effect of unprovided interest of Rs 68.13 lakh for the quarter and Rs 1.35 crore for the half year.

Did Sea TV's auditor modify its review conclusion?

No, Doogar & Associates did not modify its review conclusion on Sea TV’s standalone or consolidated results for the quarter and half year ended September 30, 2026. In both reports dated November 4, 2026, the auditor said nothing had come to its attention that caused it to believe the statements failed to make required disclosures or contained a material misstatement.

The reports distinguish a limited review from an audit. Doogar & Associates said its procedures principally involved inquiries and analytical procedures, which are less extensive than an audit performed under Standards on Auditing. It therefore did not express an audit opinion on Sea TV’s September 2026 financial information.

The interest matter was nevertheless specifically drawn to readers’ attention in each review report. The consolidated and standalone reports cite the same Rs 68.13 lakh quarterly effect and Rs 1.35 crore half-year effect. The filing therefore combines an unmodified review conclusion with an accounting-compliance observation concerning the recognition of unsecured-loan interest.

Which subsidiaries were in Sea TV's consolidated review?

Sea TV’s consolidated review included two subsidiaries, Jain Telemedia Services Limited and Sea News Network Limited, according to Annexure I to the November 4, 2026 filing. The consolidated report covers the quarter and half year ended September 30, 2026 and identifies those entities as subsidiaries within the group.

Doogar & Associates said it did not review the financial results of the two subsidiaries included in the consolidated statement. Instead, those financial results were certified by the respective managements. The auditor said its conclusion, to the extent it related to amounts and disclosures for those two subsidiaries, was based on those management-certified statements and procedures it performed.

The auditor said its consolidated conclusion was not modified in respect of the two unreviewed subsidiaries. The supplied text contains an incomplete reference to Rs 7.63 crore in the paragraph concerning subsidiary results, but the figure’s accompanying description is incomplete. The filing pages therefore do not provide a reliable comparable subsidiary revenue or profit figure for September 2026.

What governance actions did Sea TV disclose?

Sea TV’s board approved unaudited standalone and consolidated results for the second quarter and half year ended September 30, 2026 at its November 4, 2026 meeting. The meeting, held through video conferencing and other audio-visual means, began at 4:15 p.m. Indian Standard Time and concluded at 5:16 p.m.

The board accepted the resignation of Ashutosh Agarwal & Co., Chartered Accountants, as internal auditor, effective from the close of business on November 5, 2026. Sea TV said the action followed the firm’s October 25, 2026 resignation letter and the Audit Committee’s recommendation.

The filing also records the appointment of Singhal Manish & Associates, Chartered Accountants, as internal auditor from the close of business on November 5, 2026. Sea TV said the action followed a consent letter dated October 26, 2026. The board also authorised company secretary and compliance officer Aman Khandelwal to represent Sea TV before courts, tribunals and other authorities.

Conclusion

Sea TV’s September 2026 filing identifies a measurable accounting issue: recognising omitted interest on unsecured loans would have increased its quarterly loss by Rs 68.13 lakh and its first-half loss by Rs 1.35 crore. Doogar & Associates said the non-recognition was inconsistent with the Ind AS 109 effective-interest method requirement unless the interest was contractually waived.

The next disclosed event is the internal-auditor transition effective from the close of business on November 5, 2026, when Ashutosh Agarwal & Co. was due to cease and Singhal Manish & Associates was due to begin. The supplied filing does not disclose a separate timetable for correcting the interest recognition or restating the September 2026 results.