Annual Report for the FY 2025-26

7SEAS ENTERTAINMENT LIMITED 35th ANNUAL REPORT 2025-26 About this Annual Report This Annual Report presents the performance, strategy, governance and statutory disclosures of 7Seas Entertainment Limited for the financial year ended 31 March 2026. The narrative sections explain how the Company develops and manages its game portfolio, applies technology within its production workflows and approaches capital allocation, risk and governance. The financial information presented in this Annual Report is based on the Company’s standalone financial statements for FY2025–26, prepared in accordance with Indian Accounting Standards (Ind AS), and should be read together with the accompanying notes and the Independent Auditor’s Report. Figures are stated in Indian Rupees; amounts in the financial review are expressed in lakh unless otherwise specified. Contents Particulars Page No. Corporate Overview 2-4 Message from the Managing Director 5 Management Discussion and Analysis 6-10 Corporate Information 11 Notice of the 35th Annual General Meeting 12-20 Board’s Report 21-27 Annexure I — Conservation of Energy, Technology Absorption and Foreign-Exchange Earnings and Outgo 28 Annexure II — Secretarial Audit Report in Form MR-3, including its Annexure A 29-31 Annexure III — Employees and Remuneration Disclosures 32 Report on Corporate Governance 33-44 Managing Director and Chief Financial Officer Certification 45 Declaration on Compliance with the Code of Conduct 46 Certificate on Corporate Governance 47 Certificate of Non-Disqualification of Directors 48 Independent Auditor’s Report and its Annexures 49-56 Standalone Balance Sheet 57 Standalone Statement of Profit and Loss 58 Standalone Statement of Changes in Equity 59 Standalone Statement of Cash Flows 60 Notes to the Standalone Financial Statements 61-85 7SEAS ENTERTAINMENT LIMITED 35th ANNUAL REPORT 2025-26 COMPANY AT A GLANCE 7Seas Entertainment Limited is an India-based developer and publisher of digital games and interactive content. Head- quartered in Hyderabad, the Company focuses on mobile and casual gaming, with capabilities spanning concept devel- opment, game design, software engineering, art, quality assurance, release management and ongoing product improve- ment. The Company’s portfolio strategy seeks to address different player interests through a mix of gaming formats and genres. During FY2025–26, management focused on strengthening development and delivery processes, broadening its development focus towards sports, racing and simulation experiences, and integrating selected AI-assisted tools into design and testing workflows. Particulars Details Company name 7Seas Entertainment Limited Year of incorporation 1991 Corporate Identity Number L72900TG1991PLC013074 Headquarters Hyderabad, Telangana, India Stock exchange BSE Limited Scrip code / Scrip ID 540874 / 7SEASL ISIN INE454F01010 Principal activities Software development, game development and digital-content creation Reporting segment A single reportable business segment Authorised share capital as at 31 March 2026 25.00 crore, divided into 2,50,00,000 equity shares of 10 each Paid-up equity share capital as at 23,11,22,450, divided into 2,31,12,245 equity shares 31 March 2026 of Rs. 10 each Website www.7seasent.com FY2025–26 PERFORMANCE The Company recorded growth in revenue and profitability during FY2025–26. Revenue from operations increased by approximately 23.1%, while profit after tax increased by approximately 33.9% over the previous financial year. Financial highlights in lakh Revenue from operations 2,011.55 Profit after tax 222.90 Total assets as at 31 March 2026 3,073.35 Total equity as at 31 March 2026 2,934.75 Comparative financial performance Rs. in lakh, except percentages Particulars FY2025–26 FY2024–25 Year-on-year growth Revenue from operations 2,011.55 1,634.29 23.1% Total income 2,013.72 1,646.10 22.3% Profit before tax 222.90 179.58 24.1% Profit after tax 222.90 166.47 33.9% 7SEAS ENTERTAINMENT LIMITED 35th ANNUAL REPORT 2025-26 These highlights should be read together with the standalone financial statements and accompanying notes forming part of this Annual Report. BUSINESS MODEL AND VALUE CREATION 7Seas combines creative development, technical capabilities and financial resources to develop games and digital content. Its development process connects concept selection with design, engineering, testing, release and subsequent improvement. The Company’s approach is to apply shared capabilities across its portfolio while assessing the requirements and commercial potential of individual products. Management oversight supports resource allocation, development priorities and product-release decisions. Business stage Principal activities Intended contribution Concept and Assess game concepts, target Establish clear priorities for development portfolio selection audiences, development requirements resources and commercial potential Design and Develop gameplay, software, artwork, Create engaging and technically sound development interfaces and supporting content products Testing and release Test functionality, performance and Improve product quality and release preparation usability; review applicable platform readiness requirements Publishing and Support distribution, review player Improve player experience and inform product feedback and assess product perfor- subsequent updates improvement mance Governance and Review budgets, development progress, Support accountable execution and capital allocation material risks and use of funds considered investment decisions PORTFOLIO PRIORITIES The Company’s portfolio strategy combines continued attention to casual and mobile gaming with selective development across sports, racing and simulation genres. The objective is to broaden the range of experiences offered to players while making effective use of the Company’s engineering, design, art and testing capabilities. Portfolio decisions are intended to balance creative potential with development requirements, product quality and com- mercial viability. Priority area Development focus Casual and mobile gaming Accessible gameplay, intuitive interfaces, shorter play sessions and repeat engagement Sports gaming Sports-based themes, responsive controls and engaging gameplay Racing and simulation Physics-based interactions, progression and varied gameplay experiences Digital-content extensions Short-form content and promotional formats intended to support product discovery and audience engagement 7SEAS AI — SUPPORTING DEVELOPMENT, RETAINING ACCOUNTABILITY During FY2025–26, the Company integrated selected AI-assisted capabilities into parts of its development process. These applications are intended to support faster design exploration, more efficient testing and the evaluation of alternative visual and interface concepts. The Company’s approach places creative and technical judgment with its teams. AI-assisted output requires appropriate review before being incorporated into products, with attention to quality, intellectual-property rights, confidentiality and player experience. 7SEAS ENTERTAINMENT LIMITED 35th ANNUAL REPORT 2025-26 Workflow Intended application Review and accountability Testing and quality Assist in identifying recurring defects and Technical review and validation before assurance evaluating additional test scenarios release 3D and visual Support exploration of character placement, Review of quality, suitability and rights design environments and asset combinations provenance User-interface and Support prototyping and comparison of Human assessment of usability, accessi- user-experience interface alternatives bility and clarity design Production support Assist with repetitive analysis and Management review of outputs and documentation responsibility for decisions The public expansion of the Company’s AI-enabled gaming and digital-content initiatives under the “7Seas AI” positioning in May 2026 was a subsequent development and [Showing first 8,000 characters — download PDF for full document]