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Silly Monks Entertainment Limited

CIN: U92120T62013PLC090132
301, Ektha Pearl, Plot No. 2-17-89,
EIEE ON DIGITAL B P Raju Marg, Kothaguda, Kondapur,
Hyderabad, TS 500084, INDIA -

Date: October 06, 2018

Place: Hyderabad

To

The Manger —

Listing Department
National Stock Exchange of India Limited,
Exchange Plaza, 5th Floor,
Plot No. C/l, G Block,

Bandra Kurla Complex, Bandra (E),


Mumbai -400 051

Dear Sir/Madam,

Sub: Submission of Annual Report for the Financial Year 2017-18 Pursuant to Regulation 34 of SEBI

(Listing Obligations and Disclosure Requirement) Regulations, 2015.

Ref: Silly Monks Entertainment Limited (SYMBOL: SILLYMONKS)

In Compliance with Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirement)
Regulations, 2015, we are submitting herewith the Annual Report containing Notice, Director’s
Report, Consolidated & Standalone Auditors Report, Financial Statements and annexures thereto for
the financial year 2017-18 duly approved and adopted by members as per the provisions of the

Companies Act, 2013, at 05th Annual General Meeting of the Company held on 29th September, 2018.

This is for your information and for the public at large.

Kindly take the same on your record.

Yours faithfully

For Silly Monks


Entertajffnfimed

2&7? W
””

/”
Sushma Barla

Company Secretary & Compliance Officer

Encl. as above

Telefax No,040-23004518 info@sillymonks,com wwwtsillymonkscom


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Formerly known as Silly Monks Entertainment Private Limited


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Annual Report 2017-18

05TH Annual General Meeting


Saturday, 29th September, 2018
at 10.00 A.M.
at the registered office at 301,Ektha Pearl, 2-17-89, B P Raju
Marg, Kothaguda, Kondapur, Hyderabad, Telangana -
500084, India

COMPANY INFORMATION

Board of Directors

Mr. Tekulapalli Sanjay Reddy Chairman & Managing Director


Mr. Anil Kumar Pallala Whole Time Director
Mrs. Swathi Reddy Non- Executive Non - Independent Director
Dr. Rama Koti Reddy Kondamadugula Additional (Independent) Director
Mr. Prasada Rao Kalluri Independent Director

Chief Financial Officer Company Secretary & Compliance Officer


Mr. Guna Venkat Rama Naidu Ms. Sushma Barla

Registered Office: Registrar and Share Transfer Agents


301, Ektha Pearl, 2-17-89, B P Raju Marg, M/s. Bigshare Services Pvt. Ltd,
Kothaguda, Kondapur, Hyderabad – 500084, 306, Right Wing, Amrutha Ville, Opp. Yasodha Hospital,
Telangana, India. Somajiguda, Raj Bhavan Road, Hyderabad - 500 082,
Tele-Fax No.: 040 - 2300 4518 Email: bsshyd@bigshareonline.com
Email:investor@sillymonks.com Website: www.bigshareonline.com
www.sillymonks.com

Statutory Auditors Internal Auditors


M/s. Ramasamy Koteswara and Co LLP M/s. NSVR & Associates LLP
Chartered Accountants Chartered Accountants
Firm Regn. No. 010396S/S200084 Firm Regn. No. 008801S/S200060

Secretarial Auditors Bankers


M/s. P. S. Rao & Associates ICICI Bank Ltd
Company Secretaries Citi Bank N.A.
Axis Bank Ltd

Name of the Stock Exchange (Where the Company’s Equity Shares are Listed)
National Stock Exchange of India Limited – Emerge (SME Platform)
Exchange Plaza, Plot No. C/1, G-Block, Bandra-Kurla Complex, Bandra (East),
Mumbai – 400051 (M.H.) (w.e.f. 18th January, 2018)
NSE Symbol: SILLYMONKS
Annual Report 2017-18
BOARD COMMITTEES

Audit Committee:

 Dr. Rama Koti Reddy Kondamadugula Chairman


 Mr. Prasada Rao Kalluri Member
 Mr. Tekulapalli Sanjay Reddy Member

Nomination and Remuneration Committee:

 Dr. Rama Koti Reddy Kondamadugula Chairman


 Mr. Prasada Rao Kalluri Member
 Mrs. Swathi Reddy Member

Stakeholders Relationship Committee:

 Dr. Rama Koti Reddy Kondamadugula Chairman


 Mr. Prasada Rao Kalluri Member
 Mr. Tekulapalli Sanjay Reddy Member

CONTENTS PAGE NO.


Notice .................................................................................................................................................................2
Annexure to the Notice .................................................................................................................................... 10
Directors’ Report .............................................................................................................................................. 18
Annexures to Directors’ Report ....................................................................................................................... 28
Auditors Report on Financial Statements ......................................................................................................... 55
Balance Sheet.................................................................................................................................................... 62
Statement of Profit & Loss Account .................................................................................................................. 63
Cash Flow Statement ........................................................................................................................................ 64
Notes Forming Part of Financial Statements .................................................................................................... 66
Auditor’s Report on Consolidated Financial Statements .................................................................................. 79
Consolidated Balance Sheet.............................................................................................................................. 84
Consolidated Statement of Profit & Loss Account............................................................................................ 85
Consolidated Cash Flow Statement .................................................................................................................. 86
Notes Forming Part of Consolidated Financial Statements ............................................................................. 88
Attendendence Slip ........................................................................................................................................ 100
proxy Form ………………………………………………………………………………………………………………………………………………..101

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Annual Report 2017-18

NOTICE
Notice is hereby given that the 05thAnnual General Meeting of the Members of Silly Monks Entertainment
Limited will be held on Saturday, the 29th September 2018 at 10:00 A.M. at the registered office of the
Company situated at 301, Ektha Pearl, 2-17-89, B P Raju Marg, Kothaguda, Kondapur, Hyderabad – 500084,
Telangana, India to transact the following business:

ORDINARY BUSINESS:

1. To consider and adopt:

a) The audited Financial Statement of the Company for the financial year 2017-18 together with the
Report of the Board of Directors and Auditors thereon; and
b) The audited consolidated Financial Statement of the Company for the year 2017-18.

2. To appoint a director in place of Mr. Tekulapalli Sanjay Reddy (DIN: 00297272), who is liable to retire by
rotation and being eligible, offers himself for re-appointment as a Director.

SPECIAL BUSINESS:

3. Appointment of Dr. Rama Koti Reddy Kondamadugula (DIN: 00259576) as an Independent Director

To consider and if thought fit, to pass with or without modification, the following resolution as an
Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of section 149, 150 and 152 read with Schedule IV and all
other applicable provisions, if any, of the Companies Act, 2013 (“The Act”) and the Companies
(Appointment and Qualification of Directors) Rules, 2014 (including any statutory modification(s) or re-
enactment thereof, for the time being in force) Dr. Rama Koti Reddy Kondamadugula (holding DIN:
00259576), who was appointed as an Additional Director (Independent) of the Company by the Board of
Directors as per Section 161(1) of the Act, at their meeting held on 29th day of May, 2018 and who holds
office only up to the date of the ensuing Annual General Meeting, who has submitted a declaration that
he meets the criteria of independence as provided in section 149(6) of the Act and the Company hereby
approves the appointment of Dr. Rama Koti Reddy Kondamadugula, as Non-Executive Independent
Director for a term of 5 (Five) consecutive years with effect from 29th September, 2018, whose office shall
not be liable to retire by rotation.”

4. To Consider and approve the Increase in remuneration of Mr. Tekulapalli Sanjay Reddy, Chairman &
Managing Director of the Company.

To consider and if, thought fit, to pass with or without modification(s), the following resolution as a Special
Resolution:

“RESOLVED THAT pursuant to the provisions of section 196, 197 & 203, read with Schedule V and other
applicable provisions, if any, of the Companies Act, 2013 (“The Act”) and the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014 including any statutory modifications or re-

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Annual Report 2017-18
enactments thereof, and in partial modification to the approval of members of the Company accorded by
way of Special Resolution dated 15th May 2017 for appointment of Mr. Tekulapalli Sanjay Reddy as
Chairman & Managing Director of the Company with effect from 01st April 2017 for a period of 3 years,
now, as per the recommendations of Nomination & Remuneration Committee and the board of directors,
the approval of members of the Company be and is hereby accorded to increase the remuneration of Mr.
Tekulapalli Sanjay Reddy, Chairman & Managing Director, up to Rs.78,00,000/- (Rupees Seventy Eight
Lakhs Only) per annum inclusive of any remuneration directly or otherwise or by way of salary and
allowances, performance based rewards/ incentives, with effect from 01st day of September, 2018 for the
remainder of his tenure (i.e. up to 31st March 2020) (including remuneration payable in the event of loss
or inadequacy of profits in any financial year during the tenure of his appointment) with authority to the
Board of Directors to alter and vary the terms and conditions of the said appointment in such manner as
may be agreed to between the Board of Directors and Mr. Tekulapalli Sanjay Reddy.”

“RESOLVED FURTHER THAT even in the absence of or inadequacy of profits in any Financial Year, subject
to the provisions of Schedule V of the Act and such other approvals as may be required, Mr. Tekulapalli
Sanjay Reddy, be paid the remuneration as detailed above as minimum remuneration.”

“RESOLVED FURTHER THAT except for the aforesaid revision in salary, all other terms and conditions of
his appointment as Chairman & Managing Director of the Company, as approved by the Special resolution
passed at the Extraordinary General Meeting of the Company held on 15th of May 2017 shall remain
unchanged.”

5. To Consider and approve the Increase in remuneration of Mr. Anil Kumar Pallala, Whole Time Director
of the Company.

To consider and if, thought fit, to pass with or without modification(s), the following resolution as a Special
Resolution:

“RESOLVED THAT pursuant to the provisions of section 196, 197 & 203, read with Schedule V and other
applicable provisions, if any, of the Companies Act, 2013 (“The Act”) and the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014 including any statutory modifications or re-
enactments thereof, and in partial modification to the approval of members of the Company accorded by
way of Special Resolution dated 15th May 2017 for appointment of Mr. Anil Kumar Pallala, Whole Time
Director of the Company with effect from 01st April 2017 for a period of 3 years, now, as per the
recommendations of Nomination & Remuneration Committee and the board of directors, the Consent of
the Members of the Company be and is hereby accorded to increase the remuneration of Mr. Anil Kumar
Pallala, Whole Time Director, up to Rs.37,80,000/- (Rupees Thirty seven Lakhs and Eighty Thousand Only)
per annum inclusive of any remuneration directly or otherwise or by way of salary and allowances,
performance based rewards/ incentives, with effect from 01st day of September, 2018 for the remainder
of his tenure (i.e. up to 31st March 2020) (including remuneration payable in the event of loss or
inadequacy of profits in any financial year during the tenure of his appointment) with authority to the
Board of Directors to alter and vary the terms and conditions of the said appointment in such manner as
may be agreed to between the Board of Directors and Mr. Anil Kumar Pallala.”

“RESOLVED FURTHER THAT even in the absence of or inadequacy of profits in any Financial Year, subject
to the provisions of Schedule V of the Act and such other approvals as may be required, Mr. Anil Kumar
Pallala, be paid the remuneration as detailed above as minimum remuneration.”

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Annual Report 2017-18

“RESOLVED FURTHER THAT except for the aforesaid revision in salary, all other terms and conditions of
his appointment as Whole Time Director of the Company, as approved by the Special resolution passed at
the Extraordinary General Meeting of the Company held on 15th of May 2017 shall remain unchanged.

Registered Office: By order of the Board of Directors


CIN: U92120TG2013PLC090132 For Silly Monks Entertainment Limited
301, Ektha Pearl, 2-17-89, B P Raju Marg,
Kothaguda, Kondapur, Hyderabad – 500084,
Telangana, India.

Sd/-
Place: Hyderabad Ms. Sushma Barla
Date: 31st August 2018 Company Secretary & Compliance Officer

NOTES FOR MEMBERS:

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT ONE OR MORE
PROXIES TO ATTEND AND VOTE ON POLL INSTEAD OF HIM/HER AND SUCH PROXY NEED NOT BE A
MEMBER OF THE COMPANY. APPOINTING A PROXY DOES NOT PREVENT A MEMBER FROM ATTENDING
THE MEETING IN PERSON IF HE/SHE SO WISHES.

2. A person can act as a proxy on behalf of members not exceeding fifty (50) and holding in the aggregate
not more than ten percent of the total share capital of the Company carrying voting rights. A member
holding more than ten percent of the total share capital of the Company carrying voting rights may appoint
a single person as proxy and such person shall not act as a proxy for any other person or shareholder.

3. Proxies in order to be effective must be delivered at the Registered Office of the Company not less than
48 hours before the commencement of the meeting.

4. Corporate members intending to send their authorised representatives to attend the meeting are
requested to send to the Company a certified copy of the Board resolution authorizing their representative
to attend and vote on their behalf at the meeting.

5. The Explanatory Statement pursuant to section 102 of the Companies Act, 2013, which sets out details
relating to special business at the meeting, is annexed hereto.

6. Register of Members and Share Transfer Books of the Company will remain closed from Saturday, 22nd
September, 2018 to Saturday, 29th September, 2018 (Both the days inclusive).

7. Members seeking any information or clarification on the accounts are requested to send queries by E-mail
to the Company’s mail id investor@sillymonks.com at least 10 days prior to the date of Annual General
Meeting (AGM) to enable the management to reply appropriately at the AGM.

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Annual Report 2017-18
8. M/s. Bigshare Services Private Limited, is the Registrar & Share Transfer Agent (RSTA) of the Company.
All communications in respect of share transfers and change in the address of the members may be
communicated to them. Their Email: bsshyd@bigshareonline.com.

9. Shareholders are requested to immediately notify any change in their address and also intimate their
active E-Mail ID to their respective Depository Participants (DPs) and to the Registrar and Share Transfer
Agent of the Company viz. Bigshare Services Pvt. Ltd., 306, Right Wing, Amrutha Ville, Opp. Yasodha
Hospital, Somajiguda, Raj Bhavan Road, Hyderabad - 500082, having email Id
bsshyd@bigshareonline.com to receive the soft copy of the annual report and all other communication
and notice of the meetings etc., of the Company.

10. The Securities and Exchange Board of India (SEBI) has mandated the submission of Permanent Account
Number (PAN) by every participant in securities market. Members holding shares in electronic form are,
therefore, requested to submit their PAN to their Depository Participants with whom they are maintaining
their demat accounts. Members holding shares in physical form can submit their PAN details to the
Company / STA.

11. Members holding shares in the same name under different Ledger Folios are requested to apply for
consolidation of such Folios and send the relevant share certificates to the Share Transfer Agent/Company.

12. Relevant documents referred to in the accompanying Notice are open for inspection by the members at
the Registered office of the Company on all working days (except Saturdays and Holidays), between 11.00
A.M. to 1.00 P.M. up to the date of Annual General Meeting.

13. Pursuant to the requirement of SEBI (Listing Obligations and Disclosures Requirement) Regulation), 2015
the Company declares that, the equity shares of the Company are listed on the Stock Exchange at NSE –
Emerge (SME Platform).

14. The annual report for the financial year 2017-18 is being sent through email to those members who have
opted to receive electronic communication or who have registered their email addresses with the
Company/depository participants. The members will be entitled to physical copy of the annual report for
the financial year 2017-18, free of cost, upon sending a request to the Company Secretary at the registered
office of the Company situated at 301, Ektha Pearl, 2-17-89, B P Raju Marg, Kothaguda, Kondapur,
Hyderabad – 500084, Telangana, India. For any Communication, the shareholders may also send request
to the Company’s E-Mail Id: investor@sillymonks.com.

15. Shareholders may also note that the Annual Report for the year 2017-18 is also available on Company’s
website www.sillymonks.com.

16. Members who hold shares in physical form can nominate a person in respect of all the shares held by them
singly or jointly. Members who hold shares in single name are advised, in their own interest to avail of the
nomination facility. Members holding shares in dematerialized form may contact their respective
depository participant(s) for recording nomination in respect of their shares.

17. Members/Proxies are requested to bring the attendance slip filled in for attending the Meeting and copy
of Annual Report with them to attend the Meeting. Members are requested to come to the venue of the
meeting well in advance for registration. No registration will be entertained after fifteen minutes from the

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Annual Report 2017-18
scheduled time of the commencement of the meeting. The Proxy Form and the Attendance slip are
enclosed with this notice.

18. As per Notification issued by Ministry of Corporate Affairs dated 19th of March, 2015 with reference to
the Companies (Management and Administration) Rules, 2014, Companies covered under Chapter XB and
Chapter XC as per SEBI (ICDR) Regulations, 2009 will be exempted from e-voting provisions.

The Company is covered under Chapter XB of SEBI (ICDR) Regulations, as the Company listed its equity
shares on National Stock Exchange of India Limited – Emerge (SME Platform). Therefore, the Company is
not required to provide e-voting facility to its members. Though the Company is not required to provide E
voting facility, for good Corporate Governance and for the benefit of shareholders the Company is
providing E-Voting facility to the shareholders.

E-VOTING
The business as set out in the Notice may be transacted through electronic voting system and the Company is
providing facility for voting by electronic means. Pursuant to the provisions of Section 108 of the Companies
Act, 2013, read with the Companies (Management and Administration) Rules, 2014, the Company is pleased
to offer e-voting facility as an alternate to its members to cast their votes electronically on all resolutions set
forth in the Notice convening the 05th Annual General Meeting.

The Company has engaged the services of Central Depository Services India Limited (CDSL) to provide the
E-voting facility.

The Members whose names appear in the Register of Members / List of Beneficial Owners as on 21st
September 2018 (cut-off date), are entitled to vote on the resolutions set forth in this Notice.

The e-voting period will commence on Wednesday, 26th September, 2018 (09:00 hrs) and will end on Friday,
28th September, 2018 (17:00 hrs). During this period, shareholders of the Company holding shares either in
physical form or in dematerialized form, as on the cut-off date may cast their vote electronically. The e-voting
module shall be disabled by CDSL for voting thereafter. Members will not be able to cast their votes
electronically beyond the date & time mentioned above.

The Company has appointed Mr. Jineshwar Kumar Sankhala, Practising Company Secretary to act as Scrutinizer
to conduct and scrutinize the electronic voting process and poll at the Annual General Meeting in a fair and
transparent manner. The members desiring to vote through electronic mode may refer to the detailed
procedure on e-voting given hereunder.

A. The instructions for shareholders voting electronically are as under:


(i) The shareholders should log on to the e-voting website www.evotingindia.com.

(ii) Click on Shareholders.


(iii) Now Enter your User ID
a. For CDSL: 16 digits beneficiary ID,
b. For NSDL: 8 Character DP ID followed by 8 Digits Client ID,
c. Members holding shares in Physical Form should enter Folio Number registered with the
Company.

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Annual Report 2017-18
(iv) Next enter the Image Verification as displayed and Click on Login.

(v) If you are holding shares in demat form and had logged on to www.evotingindia.com and voted on an
earlier voting of any company, then your existing password is to be used.

(vi) If you are a first-time user follow the steps given below:

For Members holding shares in Demat Form and Physical Form


PAN Enter your 10-digit alpha-numeric PAN issued by Income Tax Department (Applicable for
both demat shareholders as well as physical shareholders)
• Members who have not updated their PAN with the Company/Depository
Participant are requested to use the first two letters of their name and the 8 digits
of the sequence number in the PAN field.
• In case the sequence number is less than 8 digits enter the applicable number of 0’s
before the number after the first two characters of the name in CAPITAL letters. Eg.
If your name is Ramesh Kumar with sequence number 1 then enter RA00000001 in
the PAN field.
Dividend Enter the Dividend Bank Details or Date of Birth (in dd/mm/yyyy format) as recorded in
Bank Details your demat account or in the company records in order to login.
Or Date of • If both the details are not recorded with the depository or company please enter the
Birth (DOB) member id / folio number in the Dividend Bank details field as mentioned in
instruction (iv).

(vii) After entering these details appropriately, click on “SUBMIT” tab.

(viii) Members holding shares in physical form will then directly reach the Company selection screen.
However, members holding shares in demat form will now reach ‘Password Creation’ menu wherein
they are required to mandatorily enter their login password in the new password field. Kindly note that
this password is to be also used by the demat holders for voting for resolutions of any other company
on which they are eligible to vote, provided that company opts for e-voting through CDSL platform. It is
strongly recommended not to share your password with any other person and take utmost care to keep
your password confidential.

(ix) For Members holding shares in physical form, the details can be used only for e-voting on the resolutions
contained in this Notice.

(x) Click on the EVSN for the relevant Company i.e.., Silly Monks Entertainment Limited on which you
choose to vote.

(xi) On the voting page, you will see “RESOLUTION DESCRIPTION” and against the same the option “YES/NO”
for voting. Select the option YES or NO as desired. The option YES implies that you assent to the
Resolution and option NO implies that you dissent to the Resolution.

(xii) Click on the “RESOLUTIONS FILE LINK” if you wish to view the entire Resolution details.

(xiii) After selecting the resolution you have decided to vote on, click on “SUBMIT”. A confirmation box will
be displayed. If you wish to confirm your vote, click on “OK”, else to change your vote, click on “CANCEL”
and accordingly modify your vote.

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Annual Report 2017-18

(xiv) Once you “CONFIRM” your vote on the resolution, you will not be allowed to modify your vote.

(xv) You can also take a print of the votes cast by clicking on “Click here to print” option on the Voting page.

(xvi) If a demat account holder has forgotten the login password, then Enter the User ID and the image
verification code and click on Forgot Password & entering the details as prompted by the system.

(xvii) Shareholders can also cast their vote using CDSL’s mobile app m-Voting available for android based
mobiles. The m-Voting app can be downloaded from Google Play Store. Please follow the instructions
as prompted by the mobile app while voting on your mobile.

(xviii) Note for Non – Individual Shareholders and Custodians

• Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodian are required to
log on to www.evotingindia.com and register themselves as Corporates.
• A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed
to helpdesk.evoting@cdslindia.com.
• After receiving the login details a Compliance User should be created using the admin login and
password. The Compliance User would be able to link the account(s) for which they wish to vote on.
• The list of accounts linked in the login should be mailed to helpdesk.evoting@cdslindia.com and on
approval of the accounts they would be able to cast their vote.
• A scanned copy of the Board Resolution and Power of Attorney (POA) which they have issued in favour
of the Custodian, if any, should be uploaded in PDF format in the system for the scrutinizer to verify
the same.

(xix) In case you have any queries or issues regarding e-voting, you may refer the Frequently Asked Questions
(“FAQs”) and e-voting manual available at www.evotingindia.com, under help section or write an email
to helpdesk.evoting@cdslindia.com.

B. In case of members receiving the physical copy of notice of 05th Annual General Meeting by courier (for
members whose e-mail ids are not registered with the Company/Depositories):

Please follow all the steps from S. No. (i) to S. No. (xvii) to cast vote.

C. General Instructions:

(i) The voting rights of Members shall be in proportion to the shares held by them in the paid-up equity
share capital of the Company as on 21st September, 2018.

(ii) Members can opt for only one mode of voting, i.e., either by venue voting or e-voting. In case
Members cast their votes through both the modes, voting done by e-voting shall prevail and votes
cast through venue voting will be treated as invalid.

(iii) Members who do not have access to e-voting facility have been additionally provided the facility
through Ballot Form. They may send duly completed Ballot Form to the Scrutinizer, Mr. Jinesh Kumar
Sankala, Practising Company Secretary at the Registered Office of the Company so as to reach on or

8
Annual Report 2017-18
th
before the conclusion of the 05 Annual General Meeting or can carry the same to the AGM and
deposit in the Ballot Box during the Meeting. Members have the option to request for physical copy
of Ballot Form by sending an e-mail to investor@sillymonks.com by mentioning their Folio No. / DP
ID and Client ID.

(iv) The facility for voting through polling paper shall also be made available at the meeting and the
members attending the meeting who have not already cast their vote by e-voting shall be able to
exercise their right at the meeting.

(v) The member who cast their vote by e-voting prior to the meeting may also attend the meeting but
shall not be entitled to cast their vote again.

(vi) The Scrutinizer, after scrutinising the votes cast at the meeting through poll and through remote e-
voting will, not later than three days of conclusion of the Meeting, make a consolidated scrutinizer’s
report and submit the same to the Chairman. The results declared along with the consolidated
scrutinizer’s report shall be placed on the website of the Company www.sillymonks.com and on the
website of www.cdslindia.com. The results shall simultaneously be communicated to the Stock
Exchanges.

(vii) The result of the voting on the Resolutions at the Meeting will be announced by the Chairman or any
other person authorized by him within two days of the AGM.

19. Brief profile of the directors (seeking appointment/re-appointment and/or whose remuneration is
proposed to be increased) as per SEBI (LODR) Regulations, 2015 and the Companies Act, 2013, is attached
as an annexure to this notice.

20. The Route Map of the venue of AGM is given at the last page of Annual Report.

By order of the Board of Directors


For Silly Monks Entertainment Limited

Sd/-
Place: Hyderabad Ms. Sushma Barla
Date: 31st August 2018 Company Secretary & Compliance Officer

9
Annual Report 2017-18
ANNEXURE TO THE NOTICE

ADDITIONAL INFORMATION

Brief profile of the directors seeking appointment/re-appointment/change in the remuneration at the


ensuing Annual General Meeting pursuant to Regulation 36 (3) of SEBI (LODR) Regulations, 2015

Name of the Director Tekulapalli Sanjay Reddy


Date of first appointment on the Board 20th day of September, 2013
Date of Birth 29.06.1968 (50 Years)
Commerce graduate with a management degree in
Marketing and Finance from Pune University.
28 years of rich experience in sales, distribution,
Qualification, Experience & Expertise
programming and general management in Media,
Internet and Entertainment industries. He is the
founder and promoter of the Company.
• Dream Boat Entertainment Private Limited
(Under the process of Strike off).
Directorships in other Companies
Foreign Companies:
• Dream Boat Entertainment Pte Limited
No. & % of Shares held in the Company 14,68,800 equity shares i.e., 31.64%
Husband of Smt. Swathi Reddy, Non-Executive
Relation between Directors inter-se
Director.

Name of the Director Rama Koti Reddy Kondamadugula


Date of Birth 15.07.1961 (57 Years)
He was appointed as an Additional Director by the
Date of first appointment on the Board Board of Directors of the Company at their Meeting
held on 29th May 2018.
Ph.D. in Plant Sciences from Kakatiya University,
India, M. Sc, Plant Sciences from Kakatiya University,
Warangal, India and Post-Doctoral Research: plant
Qualification, Experience & Expertise
biotechnology, University of Hyderabad, India and
University of Bayreuth, Germany. He has over 24
years of experience across Biotechnology Industry.
• Sri Bioremedies Private Limited
• Sri Greencover India Private Limited
• Sri Lakshmi Agri Biotech Private Limited
Directorships in other Companies
• Sri Biosphere Private Limited
• Sri Power Transgen Private Limited
• Sri Bioaesthetics Private Limited
No. & % of Shares held in the Company 7200 equity shares i.e.,0.155%
Relation between Directors inter-se NA

10
Annual Report 2017-18

Name of the Director Anil Kumar Pallala


Date of Birth 18.01.1982 (36 Years)
Date of first appointment on the Board 01st day of September 2014
Audio Engineer. He is a Founder, Ex-Director of
Whacked Out Media Private Limited – one of leading
Qualification, Experience & Expertise
MCN in the country, Promo/Music Producer of BIG
92.7 FM
• Chintala Sports Private Limited
Directorships in other Companies
• Inani Media Private Limited
No. & % of Shares held in the Company 3,00,000 equity shares i.e.,6.46%
Relation between Directors inter-se NA

EXPLANATORY STATEMENT IN RESPECT OF THE SPECIAL BUSINESS PURSUANT TO


SECTION 102 OF THE COMPANIES ACT, 2013

Item No. 3: Appointment of Dr. Rama Koti Reddy Kondamadugula (DIN: 00259576) as an Independent
Director
In accordance with the provisions of Section 149 read with Schedule IV to the Companies Act, 2013,
appointment of an Independent Director requires approval of members. Based on the recommendation of the
Nomination and Remuneration Committee, the Board of Directors have proposed that Dr. Rama Koti Reddy
Kondamadugula be appointed as an Independent Director of the Company.

The appointment of Dr. Rama Koti Reddy Kondamadugula shall be effective upon approval by the members
in the Meeting.

Dr. Rama Koti Reddy Kondamadugula is not disqualified from being appointed as a Director in terms of Section
164 of the Act and has given his consent to act as a Director. The Company has received a declaration from Dr.
Rama Koti Reddy Kondamadugula that he meets the criteria of independence as prescribed under sub-section
(6) of Section 149 of the Act.

In the opinion of the Board, Dr. Rama Koti Reddy Kondamadugula fulfills the conditions for his appointment
as an Independent Director as specified in the Act. Dr. Rama Koti Reddy Kondamadugula is independent of
the management and possesses appropriate skills, experience and knowledge.

Brief resume of Dr. Rama Koti Reddy Kondamadugula (Dr. KRK Reddy):

Dr. KRK Reddy is an entrepreneur and has done his Ph.D. in Plant Sciences from Kakatiya University, India, M.
Sc, Plant Sciences from Kakatiya University, Warangal, India and Post-Doctoral Research: plant biotechnology,
University of Hyderabad, India and University of Bayreuth, Germany.

After post-doctoral research, Dr. Reddy started a private bio control laboratory at Hyderabad in the year 1994
with a focus to develop safe and green alternatives for agro chemicals for crop nutrition and protection. The
in-House R&D of the company is well recognized by national and international research institutions.

11
Annual Report 2017-18
Dr. Reddy guided 50 postgraduates and 2 Doctoral students and filed 7 patents. He received several National
and International awards for his contributions in research, innovations, product development with special
reference to bio intensive integrated crop management to improve agricultural productivity.

Dr. Reddy also happens to be member in over fifteen national and international societies and bodies as well
as on the board of studies and biotech committees of Osmania University, Kakatiya University, Yogivemana
University, Nagarjuna University, and Padmavathi Mahila University. Apart from this, he also served
Department of Biotechnology, Govt. of India as member of task force on Biofertilisers and Biopesticides.
Currently he is the member of FICCI-Telangana sub-committee on Agriculture and food processing and CII-
Telangana task force on Agriculture.

Dr. Reddy received several International, National and State level awards for his contribution in the field of
agriculture technology and innovations.

Keeping in view his vast expertise and knowledge, it will be in the interest of the Company that Dr. Rama Koti
Reddy Kondamadugula is appointed as an Independent Director of the Company.

Dr. Rama Koti Reddy Kondamadugula was appointed as an Additional Director by the Board in their meeting
held on 29th May 2018. Dr. Rama Koti Reddy Kondamadugula is a member of the Audit Committee,
Nomination and Remuneration Committee and Stakeholders Relationship Committee of the Board of Directors
of the Company.

Dr. Rama Koti Reddy Kondamadugula holds 7200 shares in the Company. The Board consider that his
continued association would be of immense benefit to the Company and it is desirable to continue to avail
services of Dr. Rama Koti Reddy Kondamadugula as an Independent Director.

Accordingly, the Board recommends the resolution in relation to appointment of Dr. Rama Koti Reddy
Kondamadugula as an Independent Director, for the approval by the shareholders of the Company.

Copy of the draft letter for appointment of Dr. Rama Koti Reddy Kondamadugula as an Independent Director
setting out the terms and conditions is available for inspection by members at the registered office of the
Company.

Except Dr. Rama Koti Reddy Kondamadugula, being an appointee, none of the Directors and Key Managerial
Personnel of the Company and their relatives is concerned or interested, financial or otherwise, in the
resolution set out at Item No. 3. This Explanatory Statement may also be regarded as a disclosure under
Regulations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Your Directors recommend the Resolution for your approval.

12
Annual Report 2017-18
Item 4 & 5: To Consider and approve the Increase in remuneration of Mr. Tekulapalli Sanjay Reddy,
Chairman & Managing Director and Mr. Anil Kumar Pallala as Whole Time Director of the Company.

The members of the Company had appointed Mr. Tekulapalli Sanjay Reddy as Chairman & Managing Director
and Mr. Anil Kumar Pallala as whole Time Director of the Company by means of passing a special resolution at
their Extraordinary Meeting of the Company held on 15th May 2017 for a period of three years from with effect
from 01st April 2017, in accordance with the provisions of Sections 196, 197, 203 read with Schedule V and
other applicable provisions, if any, of the Companies Act, 2013.

The performance of the Company during the financial year 2017-18 has enhanced in comparison with the
previous year 2016-17. Company made considerable progress in terms of profitability and growth. Upon the
recommendations of the Nomination & Remuneration Committee the Board of directors of the Company at
their meeting held on 31st August 2018, increased the remuneration of Mr. Tekulapalli Sanjay Reddy and Mr.
Anil Kumar Pallala as follows with effect from 01st September, 2018.

The aforesaid Managerial remuneration for the said years falls within the purview of Section II of Part II of
Schedule V of the Companies Act, 2013. Details of remuneration payable to the abovementioned Director is
given below:

Remuneration to Mr. Tekulapalli Sanjay Reddy:

Sl. No. Particulars Amount (Rs.)


1. Basic Salary Up to Rs.39,00,000/-
2. House Rent Allowance (HRA) Up to Rs. 19,50,000/-
3. Special Allowance Up to Rs. 19,50,000/-

Remuneration to Mr. Anil Kumar Pallala:

Sl. No. Particulars Amount (Rs.)


1. Basic Salary Up to Rs.18,90,000/-
2. House Rent Allowance (HRA) Up to Rs. 9,45,000/-
3. Special Allowance Up to Rs. 9,45,000/-

THE FOLLOWING ADDITIONAL DETAILED INFORMATION AS PER SECTION – II OF SCHEDULE V IS AS FOLLOWS:

I. General Information:
a) Nature of industry Media and Entertainment (Service Sector)
b) Date or expected date of Business commenced in the year 2013, since the Company is into
commencement of commercial service sector, hence there is no date of commercial production
production.
c) In case of new companies, Not Applicable
expected date of
commencement of activities as
per project approved by
financial institutions appearing
in the prospectus.

13
Annual Report 2017-18
d) Financial performance based
on given indicators. Particulars 2017-18 2016-17 2015-16
Revenue 8,40,07,972 2,99,93,287 2,01,74,196
Profit before Tax 1,17,74,817 37,31,226 9,71,958
Provision for Taxation 22,43,691 7,10,985 2,00,740
Profit/(Loss) after tax 94,06,499 26,15,348 6,65,173
e) Foreign investments or “Dream Boat Entertainment PTE Limited” is a Wholly Owned
collaborators, if any Subsidiary of Silly Monks situated in Hong Kong.

II. Information about the appointee:


a) Background details Mr. T. Sanjay Reddy, aged about 50 Mr. Anil Kumar Pallala, aged
years, He is the founder and about 36 years, is an Audio
promoter of the Company is a Engineer. He is Co-Founder of
Media Professional, Producer, the Company. He is Founder &
Actor and known for leading some Ex-Director of Whacked Out
of the top TV Channels of India in Media Private Limited,
the regional space. He possesses incorporated in the year 2009 in
Post Graduation Degree in Business Hyderabad, India.
Administration with double
specialization in Marketing as well
as Finance from University of Pune.
b) Past remuneration The remuneration drawn by Mr. T. The remuneration drawn by Mr.
Sanjay Reddy during past Two Years Anil Kumar Pallala during the
is as follows: past Two Years is as follows:
Financial Amount (Rs.) Financial Amount (Rs.)
Year Year
2017-18 60,00,000 2017-18 30,00,000
2016-17 36,00,000 2016-17 24,00,000

c) Recognition or awards The Company has received various The Company has received
awards and recognition during his various awards and recognition
tenure as a Senior Executive of the during his tenure as a Director of
Company. Company was the the Company. Company was the
Winner of the Start-Up of the Year Winner of the Start-Up of the
2014 award by Silicon India & Best Year 2014 award by Silicon India
Start-Up Business Excellence Award & Best Start-Up Business
2017. Excellence Award 2017.
d) Job profile and his suitability Mr. T. Sanjay Reddy has been Mr. Anil Kumar Pallala has been
serving the Company since serving the Company over a long
inception in the capacity of a period of time.
Director. Over the period Company The director has contributed a
has grown up manifold on various lot for the continuous growth of
parameters. This growth to the the Company.
large extent is attributable to the In view of their Vital position, the
board proposes to increase their

14
Annual Report 2017-18
hard work and decision of the remuneration as detailed above.
director. And he is fit and proper as Whole
In view of their Vital position, the Time Director of the Company
board proposes to increase their
remuneration as detailed above.
And he is fit and proper as
Chairman & Managing Director of
the Company
e) Remuneration proposed As mentioned in item No.4 of the As mentioned in item No.5 of the
Notice. Notice.
f) Comparative remuneration In the past few years, the remuneration of Senior Executives in the
profile with respect to industry in general has gone up manifold. The proposed revision in the
industry, size of the Company, remuneration to Managing Director & Whole Time Director is purely
profile of the position and based on merit. Further, the Board, perused the proposed revision in
person the remuneration of managerial persons in other companies
comparable with the size of the Company, industry benchmarks in
general, profile and responsibilities of Mr. Sanjay Reddy & Mr. Anil
Kumar Pallala before approving their remuneration as proposed
hereinabove.
g) Pecuniary relationship directly Mr. T Sanjay Reddy has no Mr. Anil Kumar Pallala has no
or indirectly with the pecuniary relationship directly or pecuniary relationship directly or
Company, or relationship with indirectly with the Company or its indirectly with the Company or
the managerial personnel, if managerial personnel other than its managerial personnel other
any his remuneration in the capacity of than his remuneration in the
a Managing Director. He holds capacity of a Whole Time
14,68,800 equity shares i.e., Director. He holds 3,00,000
31.64% of the Company. equity shares i.e., 6.46% of the
Company.
III. Other information:
a) Reasons of loss or inadequate Since the Company has started its operations during the year 2013,
profits Company has completed 5 years of its operations; the profits of the
Company are increasing gradually. The profits of the Company are
inadequate, though the profits have increased from the previous
financial year.
b) Steps taken or proposed to be The Company has initiated certain steps to improve the margins of the
taken for improvement Company by expanding its operations broadly in Digital platform,
Movie, web series & Short film production, content aggregation and
customization and deployment of content in audio and video formats
for mobile carriers, devices and music stores in Indian and global
markets. During the year, the Company has also expanded its offices in
Chennai & Kochi.
c) Expected increase in Barring unforeseen circumstances, the Company hopes to increase the
productivity and profits in revenue and profits by improving margins in current year
measurable terms
IV. Disclosures:
1. The remuneration package of all the managerial persons are given in the respective resolutions.

15
Annual Report 2017-18

INFORMATION PURSUANT TO 1.2.5 OF THE SECRETARIAL STANDARD ON GENERAL MEETINGS (SS- 2)


REGARDING DIRECTOR SEEKING APPOINTMENT:

Name of the Director Tekulapalli Sanjay Reddy Anil Kumar Pallala


Age 50 years 36 years
Qualifications Commerce graduate with a Audio Engineer
management degree in Marketing and
Finance from Pune University.
Experience 27 years of rich experience in sales, He is a Founder, Ex-Director of
distribution, programming and general Whacked Out Media Private
management in Media, Internet and Limited – one of leading MCN in
Entertainment industries. the country, Promo/Music
Producer of BIG 92.7 FM
Terms and conditions of Except for the aforesaid revision in Except for the aforesaid revision
appointment or salary, all other terms and conditions of in salary, all other terms and
reappointment his appointment as Chairman & conditions of his appointment
Managing Director of the Company, as as Whole Time Director of the
approved by the Special resolution Company, as approved by the
passed at the Extraordinary General Special resolution passed at the
Meeting of the Company held on 15th of Extraordinary General Meeting
May 2017 shall remain unchanged. of the Company held on 15th of
May 2017 shall remain
unchanged.
Last drawn remuneration Rs.60,00,000/- p.a. Rs.30,00,000/- p.a.
Date of first appointment on 20th day of September, 2013 01st day of September, 2014
the Board
No. of share held 14,68,800 Equity Shares 3,00,000 Equity Shares
Relationship with Directors,
Husband of Smt. Swathi Reddy, Non- Mr. Anil Kumar Pallala is Not
Managers & KMP Executive Director. related to any of the directors of
Save and Except the aforesaid. Mr. T. the Company.
Sanjay Reddy is not related to any of the
directors of the Company.
Number of Board Meeting 11 11
attended during FY
Other Directorship - Dream Boat Entertainment Private - Chintala Sports Private
Limited (Under the Process of Strike Limited
off) - Inani Media Private Limited
- Dream Boat Entertainment Pte
Limited
Chairman/ Member of the N.A. N.A.
Committees of Boards of
other companies

16
Annual Report 2017-18

Thus, the Board of Directors recommends the resolution set out at Item no. 4&5of the notice for your approval,
by passing Special Resolution.

Mr. Tekulapalli Sanjay Reddy & Mr. Anil Kumar Pallala and their relatives may be deemed to be interested in
the respective resolutions proposing the appointments set out at Item No.4 and 5 in the Notice.

Save and except the aforesaid, none of the Directors and Key Managerial Personnel of the Company and their
relatives is concerned or interested, financial or otherwise, in the resolutions set out at Item No. 4 and 5 in the
Notice.

By order of the Board of Directors


For Silly Monks Entertainment Limited

Sd/-
Place: Hyderabad Ms. Sushma Barla
Date: 31st August 2018 Company Secretary & Compliance Officer

17
Annual Report 2017-18
DIRECTORS’ REPORT
To
The Members,
M/s. Silly Monks Entertainment Limited.
Your directors have pleasure in presenting their Fifth (5th) Annual Report on the business and operations of
the company together with the audited financial statements along with the report of the Auditors for the
financial year ended 31st March 2018.
1. FINANCIAL RESULTS: The performance of Silly Monks Group & Silly Monks (“The Company”) for the
current year in comparison to the previous year are as under:
CONSOLIDATED PERFORMANCE OF SILLY MONKS GROUP:
(Amount in Rs.)
Particulars Financial Year 2017-18 Financial Year 2016 -17
Revenue from Operations 15,66,29,082 11,95,78,819
Other Income 9,53,700 6,17,675
Total Revenue 15,75,82,782 12,01,96,494
Expenses 13,18,68,556 10,13,30,995
Operating Profit 2,57,14,226 1,88,65,499
Depreciation 38,11,792 27,09,825
Finance Charges 7,41,386 3,57,573
Net Profit / Loss Before Tax (PBT) 2,11,61,047 1,57,98,101
Current Tax 23,78,489 8,29,179
Deferred Tax 3,56,159 4,22,317
MAT Credit Entitlement (2,31,532) (17,423)
Net Profit (PAT) 1,86,57,932 1,45,64,028

Your Company, along with its 100% subsidiary and two of its LLPs as a Group, posted good financial results
during the year under review. Turnover of the Group is Rs.1,566.29 Lakhs and the net profit of the Company
is Rs. 186.57 Lakhs.

STANDALONE PERFORMANCE OF THE COMPANY:


(Amount in Rs.)
Particulars Financial Year 2017-18 Financial Year 2016 -17
Revenue from Operations 8,40,07,972 2,99,93,287
Other Income 9,53,700 2,30,172
Total Revenue 8,49,61,672 3,02,23,459
Expenses 6,91,67,602 2,41,04,815
Operating Profit 1,57,94,070 6118644
Depreciation 32,77,867 20,29,845
Finance Charges 7,41,386 3,57,573
Net Profit / Loss Before Tax (PBT) 1,17,74,817 37,31,226
Current Tax 22,43,691 7,10,985
Deferred Tax 3,56,159 4,22,317
MAT Credit Entitlement (2,31,532) (17,423)
Net Profit (PAT) 94,06,499 26,15,348
EPS 2.43 0.73

18
Annual Report 2017-18
2. COMPANY PERFORMANCE

Your Company posted good financial results with a net profit of Rs. 94.06 Lakhs during the year under
review, an Increase of 259.67% over previous year. Due to continuous efforts of the management the
Total Income of the company for the Current Financial year stood at Rs.849. 61 Lakhs as against previous
Total Income of Rs. 302.23 Lakhs registering an increase of 180.09% over the previous year. The Company
is looking forward to increasing its profits in the coming financial years with the support of all the
stakeholders of the Company.

3. TRANSFER TO RESERVES

The Company did not transfer any amount to the General Reserve for the Financial Year ended March 31st,
2018.

4. DIVIDEND:

No Dividend was declared for the financial year ended 31st March 2018 due to conservation of Profits for
the future expansion of business of the Company.

5. SUBSIDIARIES:

Dream Boat Entertainment Pte Limited (Hong Kong)

Dream Boat Entertainment Limited is a wholly Owned Subsidiary of the Company incorporated in Hong
Kong, involved in the business similar to that of the Company.

The statement containing the salient features of the financial statements of Subsidiary, Pursuant to Sub-
Section 3 of Section 129 of the Companies Act, 2013, in Form AOC-1 is herewith annexed to this report
and marked as Annexure - I. The statement also provides the details of performance, financial position of
the subsidiary.

Your Company does not have any Associate Companies or Joint Ventures.

6. CORPORATE SOCIAL RESPONSIBILITY (CSR):

The Company does not have any CSR policy and Company did not form any CSR Committee, as the
provisions of section 135 of the Companies Act, 2013, pertaining to Corporate Social Responsibility are not
applicable to the Company as the company does not fall under the criteria specified under Section 135
and the rules made there under.

7. DIRECTORS & KEY MANAGERIAL PERSONAL:

7.1 Director Retiring by Rotation

In accordance with the provisions of Section 152 of the Companies Act, 2013, Mr. Tekulapalli Sanjay
Reddy, Managing Director of the Company, hereby retires by rotation at the forthcoming Annual General
Meeting, and being eligible has offered himself for re-appointment at the said Meeting of the Company.

19
Annual Report 2017-18

7.2 Changes in the Board of Directors of the Company.

 The Board at their meeting held on 22nd December 2017 appointed Mr. Venkata Kama Dixitulu
Dixitula as an Additional (Independent) Director of the Company.

 Mr. Rajesh Katragadda, Non - Executive Independent Director and Mr. Sreenivasa Reddy Musani,
Non-Executive Director of the Company have resigned from the position of directorship, with effect
from 22.12.2017.

 Later, Mr. Venkata Kama Dixitulu Dixitula, Additional (Independent) Director has resigned from the
position of Director with effect from 30th March 2018.

 The Board of Directors have appointed Dr. Rama Koti Reddy Kondamadugula as an Additional
Director of the Company at their board meeting held on 29th day of May 2018, who holds office till
the ensuing Annual General Meeting. The Board based on the recommendation of Nomination and
Remuneration Committee considered the appointment of Rama Koti Reddy Kondamadugula as an
Independent Director subject to the approval of shareholders.

Accordingly, a resolution seeking approval of Shareholders for his as an Independent Director for a period
of five years is included at Item No.3 of the Notice appointment convening the Annual General Meeting.

As on the date of this report, the following are the Board of Directors of the Company:

7.3 Changes in Key Managerial Personnel

 During the year under review Mr. Boda Narsing Rao is resigned as the Chief Financial Officer (CFO)
of the Company, with effect from 31st May, 2018.

 The Board of Director of the Company on the recommendations of Nomination and remuneration
Committee have appointed Mr. Guna Venkat Rama Naidu, as Chief Financial Officer of the Company
with effect from 01st June, 2018.

7.4 Declaration by Independent Directors

The Company has received requisite declaration from both the Independent Director of the Company, that
they meet the criteria of independence prescribed under section 149(6) of the Companies Act, 2013 (the
Act).

8. STATUTORY AUDITORS:

The Shareholders of the Company At their Annual General Meeting (AGM) held on 18th December 2014,
have appointed M/s. Ramasamy Koteswara and Co LLP (Formerly Known as M/s. Ramasamy koteswara
& Co.), Chartered Accountants, (Registration No. 010396S), Hyderabad, as Statutory Auditors of the
Company to hold office from the conclusion of that AGM till the conclusion of the 06th AGM at such
remuneration as may be decided by the Board of Directors

20
Annual Report 2017-18
9. SECRETARIAL AUDITORS:

Pursuant to the provisions of section 204 of the Companies Act, 2013, read with Companies (Appointment
and Remuneration of managerial personnel) Rules, 2014, as may be amended from time to time, M/s. P.
S. Rao & Associates, Practicing Company Secretaries were appointed to conduct the Secretarial Audit of
the Company for the financial year 2017-18.

10. BOARD MEETINGS

The Board met Eleven (11) times during the financial year 2017 -18.

The following are the details of the Board Meetings:

Sl. No. Date of Board Meeting


1. 24.05.2017
2. 30.05.2017
3. 01.06.2017
4. 12.06.2017
5. 23.08.2017
6. 04.09.2017
7. 06.11.2017
8. 22.12.2017
9. 26.12.2017
10. 15.01.2018
11. 30.03.2018

11. COMMITTEES

The Company as on date of the report has the following Committees:


1. Audit Committee;
2. Nomination and Remuneration Committee; and
3. Stakeholder Relationship Committee.

The Committees of the Company were constituted pursuant to the Board Meeting held on 12th day of
June, 2017. Later due to Mr. Rajesh Katragadda, Non-Executive Independent Director and Mr. Sreenivasa
Reddy Musani, Non-Executive Director and appointment of Mr. Venkata Rama Venkata Kama Dixitulu
Dixitula as an additional (Independent) Director and the Committees were re-constituted by the board at
their board meeting held on 22th December, 2017.

Later due to resignation of Mr. Venkata Rama Venkata Kama Dixitulu Dixitula as an Additional
(Independent) Director and appointment of Dr. Rama Koti Reddy Kondamadugula as Additional
(Independent) Director, the Board at their meeting held on 29th May, 2018 has reconstituted the
Committees.
The Composition of the Committees as on the date of the report are as follows:

21
Annual Report 2017-18
a) Audit committee:

Sl. No. Name of the Director Position in the Committee


1. Dr. Rama Koti Reddy Kondamadugula Chairman
2. Mr. Prasada Rao Kalluri Member
3. Mr. Tekulapalli Sanjay Reddy Member

All the recommendations made by the Audit Committee of the Company have been considered and
accepted by the Board of Directors of the Company.

b) Nomination and Remuneration Committee

Sl. No. Name of the Director Position in the Committee


1. Dr. Rama Koti Reddy Kondamadugula Chairman
2. Mr. Prasada Rao Kalluri Member
3. Mrs. Swathi Reddy Member

c) STAKEHOLDER’S RELATIONSHIP COMMITTEE

Sl. No. Name of the Director Position in the Committee


1. Dr. Rama Koti Reddy Kondamadugula Chairman
2. Mr. Prasada Rao Kalluri Member
3. Mr. Tekulapalli Sanjay Reddy Member

12. NOMINATION AND REMUENRATION POLICY:

A committee of the Board named as “Nomination and Remuneration Committee” has been constituted to
comply with the provisions of section 178 of Companies Act, 2013 and to recommend a policy of the
Company on directors' appointment and remuneration, including criteria for determining qualifications,
positive attributes, independence of a director and other matters and to frame proper systems for
identification, appointment of Directors & KMPs, Payment of Remuneration to them and Evaluation of
their performance and to recommend the same to the Board from time to time. The policy is also posted
in the investors section of the company’s website.

13. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS MADE BY THE COMPANY UNDER THE
PROVISIONS OF SECTION 186 OF THE COMPANIES ACT, 2013

Details of Loans, Guarantees and Investments covered under the provisions of Section 186 of the
Companies Act, 2013 are given in the notes to the Financial Statements.

14. DEPOSITS:
Your Company has not accepted any deposits and as such no principal or interest was outstanding as on
the date of the Balance sheet.

22
Annual Report 2017-18
15. DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to Section 134 (5) of the Companies Act, 2013 Your Directors’ confirm that:
i) In preparation of annual accounts for the financial year ended 31st March, 2018, the applicable
Accounting Standards have been followed along with proper explanation relating to material
departures;
ii) The Directors have selected such accounting policies and applied them consistently and made judgments
and estimates that are reasonable and prudent so as to give true and fair view of the state of affairs of
the Company at the end of the financial year ended 31st March, 2018 and of the profit and loss of the
Company for the year
iii) The Directors have taken proper and sufficient care for their maintenance of adequate accounting
records in accordance with the provisions of the Companies Act for safeguarding the assets of the
Company and for preventing and detecting fraud and other irregularities.
iv) The Directors had prepared the annual accounts on a ‘going concern’ basis;
v) The directors had laid down internal financial controls to be followed by the company and that such
internal financial controls are adequate and were operating effectively; and
vi) 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.
16. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

During the FY under review, transactions were conducted by the Company pursuant to the Agreements
entered into with its Related Parties during previous years; the same were on an arm’s length basis and in
the ordinary course of business. There are no materially significant related party transactions made by the
Company with the Promoters, Directors, Key Managerial Personnel or any related party which may have
a potential conflict with the interest of the Company at large.

The details of related party transactions which were entered during the previous year / current year are
provided in Financial Statements, under the head measurement and disclosures as per the Accounting
Standards.
The particulars of contracts or arrangements with related parties referred to in sub-section (1) of Section
188 of the Companies Act, 2013 are given in Form AOC-2 is herewith annexed as Annexure –II to this
report.

17. SHARE CAPITAL


The Authorised Share Capital of the Company as on date of Balance Sheet is Rs. 5,00,00,000/- divided into
50,00,000 equity shares of Rs.10/- each.

The paid-up share capital of the company as on date of balance sheet is Rs. 4,64,15,000/- divided into
46,41,500 equity shares of Rs. 10/- each.

During the year, your Company has issued 31,47,000 Bonus Shares in the ratio of 6:1 i.e. 6 equity shares
for every 1 equity share held to the shareholders by way of capitalization of Securities Premium Account.
Company came out with Initial Public Offer (IPO) by offering 9,70,000 equity shares of face Value of Rs.
10/- and a premium of Rs.110/- per share.

23
Annual Report 2017-18
During the year under review, the Company has not issued shares with differential voting rights, sweat
equity shares or Employee Stock Options.

18. AUDITORS’ REPORT

There are no qualifications, reservations or adverse remarks made by M/s. Ramasamy Koteswara and Co
LLP, Chartered Accountants, Statutory Auditors in their report for the Financial Year ended 31st March
2018.

The Statutory Auditors have not reported any incident of fraud to the Audit Committee of the Company
under sub-section (12) of section 143 of the Companies Act, 2013, during the year under review.

19. SECRETARIAL AUDIT REPORT

There are no qualifications, reservations or adverse remarks made by M/s. P. S. Rao & Associates,
Practicing Company Secretaries in their report for the Financial Year ended 31st March 2018. The
secretarial audit report for F.Y. 2017-18 forms part of this Report as Annexure- III.

20. EXTRACT OF ANNUAL RETURN:

An Extract of Annual return prepared in accordance with the provisions of the section 92 (3) of the
Companies Act, 2013 in the form MGT-9 is Annexed as Annexure – IV to this report.

21. MANAGEMENT DISCUSSION AND ANALYSIS:

Pursuant to Regulation 34 (2) (e) of SEBI (LODR) Regulations, 2015, a report on Management Discussion &
Analysis is herewith annexed as Annexure-V.

22. RISK MANAGEMENT POLICY

The Company has developed and implementing a risk management policy which includes the identification
therein of elements of risk, which in the opinion of the board may threaten the existence of the Company.

23. Conservation of Energy, Technology absorption, Foreign Exchange Earnings and Outgo:
a) Conservation of Energy, Technology Absorption:
The particulars prescribed by section 134(3)(m) the Companies Act, 2013, pertaining to disclosure
measures taken in relation to conservation of energy and technology absorption are not applicable.
b) Foreign Exchange earnings and Outgo:
Foreign Exchange Earnings: Rs. 2,12,80,326/-
Foreign Exchange Outgoings: 0

24. CONVERSION OF COMPANY FROM PRIVATE LIMITED TO PUBLIC LIMITED:

During the year under review, the Company has converted from Private Limited Company to Public limited
Company by passing a Special Resolution at the Extraordinary General meeting of the members of the
Company held on 15th day of May 2017, and the Company has obtained fresh Certificate of Incorporation

24
Annual Report 2017-18
th
dated, 24 day of May 2017 from the Registrar of Companies, for the state of Telangana and Andhra
Pradesh.
25. INITIAL PUBLIC OFFER (IPO):

During the year under review, the Company has come out with an Initial Public offer of 12,60,000
(comprising a fresh issue of 9,70,000 equity Shares and Offer for sale (OFS) of 2,90,000 equity Shares)
equity shares of Rs.10/- each at a premium of Rs.110/- per share.
Your directors are pleased to inform that, the Company has successfully completed its IPO. The issue got
oversubscribed by 17.23 times.

Company has received trading approval from NSE – Emerge and listed its shares on SME platform of NSE
(Emerge) with effect from 18th January, 2018, having the symbol “SILLYMONKS”

26. MATERIAL CHANGES AFTER THE CLOSURE OF THE FINANCIAL YEAR:


Your directors of pleased to inform you that, the Company has acquired following Companies post closure
of the Financial Year 2017-18.

Name of the Company Details of Shares acquired Date of Approval of Board


INANI Media Private Limited 51% of the total paid up share capital 19th July, 2018
of the Company
Chintala Sports Private Limited 51% of the total paid up share capital 02nd August, 2018
of the Company

Upon acquisition of shares in the aforesaid Companies, both the Companies have become Subsidiary
Companies to your Company in terms of provisions of section 2 (87) of the Companies Act, 2013, by virtue
shareholding.
27. HUMAN RESOURCES:
Your Company considers its Human Resources as the key to achieve its objectives. Keeping this in view,
your Company takes utmost care to attract and retain quality employees. The employees are sufficiently
empowered and such work environment propels them to achieve higher levels of performance. The
unflinching commitment of the employees is the driving force behind the Company’s vision. Your Company
appreciates the spirit of its dedicated employees.

28. CORPORATE GOVERNANCE REPORT:


As the securities of the Company are listed on National Stock Exchange of India Limited - SME platform
Emerge, by virtue of Regulation 15 of securities and Exchange Board of India (Listing Obligations and
Disclosure) Regulation, 2015 (The Regulations), the compliance with the corporate Governance provisions
as specified in regulation 17 to 27 and Clause (b) to (i) of sub-regulation 2 of Regulation 46 and para C, D
& E of Schedule V of the regulations, are not applicable to the Company. Hence the Corporate Governance
does not form part of this Board’s report.

29. FORMAL ANNUAL EVALUATION OF PERFORMANCE OF THE MEMBERS OF THE BOARD AND COMMITTEES

Pursuant to the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, the Board has carried out the annual performance evaluation of its own

25
Annual Report 2017-18
Performance, the Directors individually as well as the evaluation of the working of its Audit and other
Committees.
A structured questionnaire was prepared after taking into consideration inputs received from the
Directors, covering various aspects of the Board’s functioning such as adequacy of the composition of the
Board and its Committees, Board culture, execution and performance of specific duties, obligations and
governance.
A separate exercise was carried out to evaluate the performance of individual Directors including the
Chairman of the Board, who were evaluated on parameters such as level of engagement and contribution,
independence of judgement, safeguarding the interest of the Company and its minority shareholders etc.
The performance evaluation of the Independent Directors was carried out by the entire Board. The
performance evaluation of the Chairman and the Non-Independent Directors was carried out by the
Independent Directors who also reviewed the performance of the Secretarial Department. The Directors
expressed their satisfaction with the evaluation process.

30. CHANGE IN THE NATURE OF BUSINESS:

There was no change in the nature of business of your Company during the financial year ended 31st
March, 2018.

31. SIGNIFICANT OR MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS

There are no orders passed by the Regulators / Courts which would impact the going concern status of
your Company and its future operations. Further, we confirm that there were no instances of fraud to be
reported by the Auditors vide their Report for the FY 2017-18.

32. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:


Your Company has an adequate system of internal financial controls with reference to financial
statements, including but not limited to safeguard and protection of assets from loss, their unauthorized
use or disposition. All the transactions were properly authorized, recorded and reported to the
Management. The Company is following all the applicable Accounting Standards for properly maintaining
the books of accounts and reporting in the financial statements. Your Company continues to ensure proper
and adequate systems and procedures commensurate with its size and nature of its business.

33. VIGIL MECHANISM:

The Company has a Whistle Blower Policy framed to deal with instance of fraud and mismanagement, if
any in the Group. The details of the Policy are posted on the website of the Company www.sillymonks.com.

34. POLICY ON SEXUAL HARASSMENT:

The company has adopted policy on prevention of sexual harassment of women at workplace in
accordance with The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013.

During the financial year ended March 31, 2018, the company has not received any complaints pertaining
to sexual harassment.

26
Annual Report 2017-18

35. PARTICLARS OF EMPLOYEES

The information required pursuant to Section 197 (12) read with Rule 5 (1) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014, in respect of employees of the Company is
herewith annexed as Annexure- VI.

In terms of Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules,
2014, the Company does not have any employee who is employed throughout the financial year and in
receipt of remuneration of Rs. 120 Lakhs or more, or employees who are employed for part of the year
and in receipt of Rs. 8.50 Lakhs or more per month.

The Company does not have any employee who is employed throughout financial year or part thereof,
who was in receipt of remuneration in financial year under review which in aggregate, or as the case may
be, at a rate which in the aggregate is in excess of that drawn by the Managing Director or Whole time
director and holds by himself/herself or along with his/her spouse and dependent children not less than
2% of the equity shares of the Company.

36. ACKNOWLEDGMENT AND APPRECIATION:

Your Directors take this opportunity to thank the Clients, shareholders, bankers, business associates for
their consistent support and continued encouragement to the Company.

Further your Directors convey their appreciation for the whole hearted and committed efforts by all its
employees.

Your Directors gratefully acknowledge the ongoing co-operation and support provided by the Central and
State Governments, Stock Exchanges, RBI and other Regulatory Bodies.

By Order of The Board of Directors


For Silly Monks Entertainment Limited

Sd/-
Tekulapalli Sanjay Reddy
Place: Hyderabad Chairman & Managing Director
Date: 31st August, 2018 DIN: 00297272

27
Annual Report 2017-18
ANNEXURES TO DIRECTORS’ REPORT
ANNEXURE - I
Form AOC-1
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules,
2014)
Statement containing salient features of the financial statement of subsidiaries/associate companies
/joint ventures
Part "A": Subsidiaries
Subsidiaries Financial Highlights (Amount In Rs.)
Sl. No. Particulars Dream Boat Event Monks Monkstar
Entertainment Entertainment Music LLP
Pte. Limited LLP
1. Reporting period for the subsidiary Not Applicable Not Applicable Not Applicable
concerned, if different from the
holding company's reporting period
2. Reporting currency and Exchange 1 USD = Not Applicable Not Applicable
rate as on the last date of the 65.0815
relevant Financial year in the case of
foreign subsidiaries
3. Share capital 80,000 1,00,000 5,00,000
4. Reserves & surplus 2,46,13,847 10,61,501 95,88,042
5. Total assets 3,99,80,580 17,23,347 1,05,74,401
6. Total Liabilities 3,99,80,580 17,23,347 1,05,74,401
7. Investments Nil Nil Nil
8. Turnover 8,85,59,420 31,14,286 40,76,342
9. Profit/Loss before taxation 1,02,92,947 (13,36,002) 4,29,285
10. Provision for taxation (Includes DTL/ - - 1,34,798
DTA)
11. Profit after taxation 1,02,92,947 (13,36,002) 2,94,487
12. Proposed Dividend - -
13. % of shareholding 100% 64% 67%

None of the above subsidiaries have been liquidated or sold during the year.
Part “B”: Associates and Joint Ventures – Not Applicable
As per my report of even date.
For Ramasamy Koteswara Rao and Co LLP, By order of the Board
Chartered Accountants
Firm Regn No. 010396S/S200084
Sd/- Sd/-
(CV Koteswara Rao) Tekulapalli Sanjay Reddy
Chairman & Managing Director
Partner
Membership No-028353 Sd/- Sd/- Sd/-
Place: Hyderabad Boda Narsing Rao Sushma Barla Anil Kumar Pallala
Date: 29.05.2018 Chief Financial Officer Company Secretary Whole Time Director

28
Annual Report 2017-18
Annexure - II
Form No. AOC-2
DETAILS OF RELATED PARTY TRANSACTIONS
(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of the Companies
(Accounts) Rules, 2014)

This form is pertaining to disclosure of particulars of contracts/arrangements entered into by the company
with related parties referred to in subsection (1) of section 188 of the Companies Act, 2013 including certain
arms’ length transactions under third proviso thereto

1. Details of contracts or arrangements or transactions not at arm’s length basis: NIL

The company has not entered into any contract or arrangement or transaction which is not at arm’s length
basis during the year under review.

2. Details of material contracts or arrangement or transactions at arm’s length basis:

Name(s) of Nature of Nature of Duration of Salient terms Date(s) of Amount


the Related Relationship contracts/ the of the approval In Rs.
Party arrangements/ contracts / contracts or by
transactions arrangement arrangements the Board,
/ or if any
transactions transactions
including the
value, if any
Dream Boat Investment Service Income 01.04.2015 - Not Not 1,95,92,826
Entertainment Held in On going applicable applicable
Pte Ltd Foreign
Entity
Events Monks Investment Service 01.04.2017 - Not Not 20,06,005
Entertainment held in LLP Charges On going applicable applicable
LLP Expense
Monkstar LLP Investment Service 01.04.2017 - Not Not 33,08,887
held in LLP Charges On going applicable applicable
Expense

By Order of The Board of Directors


For Silly Monks Entertainment Limited

Sd/-
Tekulapalli Sanjay Reddy
Place: Hyderabad Chairman & Managing Director
Date: 31st August, 2018 DIN: 00297272

29
Annual Report 2017-18
ANNEXURE - III
SECRETARIAL AUDIT REPORT
For the Financial Year ended on 31st March 2018
[Pursuant to Section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies
(Appointment and Remuneration Personnel) Rules, 2014]

To,
The Members,
M/s. Silly Monks Entertainment Limited
Hyderabad-500084

We have conducted the secretarial audit of the compliance of applicable statutory provisions and the
adherence to good corporate practices by M/s SILLY MONKS ENTERTAINMENT LIMITED (hereinafter called
The Company) having its registered office situated at 301, Ektha Pearl, 2-17-89, B P Raju Marg, Kothaguda,
Kondapur Hyderabad – 500084. Secretarial Audit was conducted in a manner that provided us a reasonable
basis for evaluating the corporate conducts/statutory compliances and expressing my opinion thereon.

Based on our verification of the Company books, papers, minute books, forms and returns filed and other
records maintained by the company and also the information provided by the Company, its officers, agents
and authorized representatives during the conduct of secretarial audit, We hereby report that in our opinion,
the company has, during the audit period covering the financial year 2017-2018 complied with the statutory
provisions listed here under and also that the Company has proper Board-processes and compliance-
mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

We have examined the books, papers, minute books, forms and returns filed and other records maintained by
the Company for the financial year ended on 31st March, 2018 according to the provisions of:

(i) The Companies Act, 2013 (the Act) and the rules made there under, as applicable
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made there under
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed there under;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the
extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial
Borrowings;
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of
India Act, 1992 (‘SEBI Act’):-
a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015.
c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2009; in connection with Public issue of Equity Shares
d) The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations,
2014; (not applicable during the audit period)
e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations,
2008; (not applicable during the audit period)
f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act and dealing with client;

30
Annual Report 2017-18
g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; (not
applicable during the audit period) and
h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998; (not
applicable during the audit period) and
i) The SEBI (Listing Obligations & Disclosure Requirements) 2015, entered into by the Company
with Stock Exchange; As Applicable.

Other specifically applicable laws to the Company:

 Cinematograph Act, 1952, Copyright Act, 1957 and the rules made thereunder, being laws that are
specifically applicable to the Company based on their sector/industry

We have also examined compliance with the applicable clauses of the Secretarial Standards issued by the
Institute of Company Secretaries of India.

During the period under review the Company has complied with the provisions of the Act, Rules, Regulations,
Guidelines, Standards, etc. mentioned above:

We further report that


 The Board of Directors of the Company is duly constituted with proper balance of Executive Directors,
Non-Executive Directors and Independent Directors. The changes in the composition of the Board of
Directors that took place during the period under review were carried out in compliance with the
provisions of the Act.

 Adequate notice is given to all Directors to schedule the Board Meetings, agenda and detailed notes on
agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further
information and clarifications on the agenda items before the meeting and for meaningful participation at
the meeting.

 All decisions at Board Meetings and Committee Meetings are carried out unanimously as recorded in the
minutes of the meetings of the Board of Directors or Committee of the Board, as the case may be.

• Meetings at shorter Notice, if any, are conducted with adequate consent of the Directors.

 There are adequate systems and processes in the company commensurate with the size and operations
of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

 There were no such specific events/actions in pursuance of the above referred laws, rules, regulations,
etc., having a major bearing on the Company’s affairs.

 During the period under review the Company has complied with the provisions of the Act, Rules,
Regulations, Guidelines, Standards, etc. mentioned above subject to the following observations.

- In certain cases, there was a delay in filling of forms with Registrar of Companies.
We further report that:
There are adequate systems and processes in the company commensurate with the size and operations of the
company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

31
Annual Report 2017-18
We further report that during the Audit period, following events occurred which are having a major
bearing on the Company’s affairs-

 The company has converted its Status from Private Limited to Limited Company during the Year.
 The Board of Directors was restructured; Independent Directors were appointed, and committees
were formed in terms of provisions of Companies Act, 2013 and SEBI Regulations.
 During the year, the Company has issued 31,47,000 Bonus Shares in the ratio of 6:1 i.e. 6 equity shares
for every 1 equity share held to the shareholders by way of capitalization of Securities Premium
Account.
 In the month of January 2018, the company has come out with an Initial Public Offer (IPO) and offered
12,60,000 equity shares comprising offer for sale of 2,90,000 (Two Lakhs and Ninety Thousand only)
equity shares by the promoters of the Company (the Selling Shareholders) and Fresh Issue of 9,70,000
(Nine Lakhs and Seventy Thousand only) equity shares, at a face value of Rs.10/- (Rupees Ten Only)
and at a premium of Rs.110/- (Rupees One Hundred and Ten only) per share.
 The IPO got successfully subscribed by Public and Board has allotted 9,70,000 (Nine Lakhs and Seventy
Thousand only) fresh equity shares at its meeting held on 15th January 2018 and the got its 46,41,500
equity shares listed at National Stock Exchange of India Limited - Emerge (SME Segment) w.e.f 18th
January 2018.
 This resulted in corresponding change in the capital structure of the Company.

For P S Rao & Associates


Company Secretaries

Sd/-
Jineshwar Kumar Sankhala
Company Secretary
M. No: 21697
C P No: 18365
Place: Hyderabad
Date: 25.08.2018

32
Annual Report 2017-18
ANNEXURE-IV
FORM NO. MGT 9
EXTRACT OF ANNUAL RETURN
As on financial year ended on 31.03.2018
Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management &
Administration) Rules, 2014.

I. REGISTRATION &OTHER DETAILS:

1. CIN U92120TG2013PLC090132
2. Registration Date 20/09/2013
3. Name of the Company Silly Monks Entertainment Limited
4. Category/Sub-category of the Company Public Company/ Limited by Shares
5. Address of the Registered office & 301, Ektha Pearl, 2-17-89, B P Raju Marg, Kothaguda,
contact details Kondapur Hyderabad - Telangana 500084, India.
Email: info@sillymonks.com
6. Whether listed company Yes
7. Name, Address & contact details of the Bigshare Services Private Limited
Registrar & Transfer Agent, if any. 306, Right Wing, Amrutha Ville, Opp. Yasodha
Hospital, Somajiguda, Raj Bhavan Road, Hyderabad -
500 082.
Email Id bsshyd@bigshareonline.com

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY (All the business activities contributing 10 % or more
of the total turnover of the company shall be stated):

S. No. Name and Description of main products / services NIC Code of the % to total
Product/service turnover of the
compan
1. Motion picture, video and television programme 59 100.00%
production, sound recording and music publishing
activities (Publishing, Digital & Social Media)

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:

Sl. No. Name and Address of CIN/GLN Holding/ Subsidiary % of shares Applicable
the Company / Associate held Section
1. Dream Boat NA Subsidiary 100% 2(87)
Entertainment Pte Ltd.
2. Monkstar Music LLP AAD-8082 Subsidiary 67% 2(87)
3. Event Monks AAD-2703 Subsidiary 64% 2(87)
Entertainment LLP

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

a) Category-wise Share Holding:

33
Annual Report 2017-18
Category of No. of Shares held at the beginning No. of Shares held at the end of the %
Shareholders of the year [As on 31-March-2017] year [As on 31-March-2018] Change
Demat Physica Total % of Demat Physic Total % of during
l Total al Total the
Shares Shares year
A. Promoters
(1) Indian
a) Individual/ HUF - 318000 318000 60.63 1936000 0 1936000 41.71 (18.92)
b) Central Govt. - - - - - - - - -
c) State Govt.(s) - - - - - - - - -
d) Bodies Corp. - - - - - - - - -
e) Banks / FI - - - - - - - - -
f) Any other - - - - - - - - -
Sub-total (A)(1) - 318000 318000 60.63 1936000 0 1936000 41.71 (18.92)
(2) Foreign
a) NRI Individuals - - - - - - - - -
b) Other Individuals - - - - - - - - -
c) Bodies Corp. - - - - - - - - -

d) Banks / FI - - - - - - - - -
e) Any other - - - - - - - - -
Sub-total (A)(2) - - - - - - - - -
Total Shareholding of - 318000 318000 60.63 1936000 0 1936000 41.71 (18.92)
Promoter
(A)= (A)(1)+(A)(2)
B. Public Shareholding
1. Institutions
a) Mutual Funds - - - - - - - - -
b) Banks / FI - - - - - - - - -
c) Central Govt - - - - - - - - -
d) State Govt(s) - - - - - - - - -
e) Venture Capital - - - - - - - - -
Funds
f) Insurance - - - - - - - - -
Companies
g) FIIs - - - - - - - - -
h) Foreign Venture - - - - - - - - -
Capital Funds
i) Others (specify) - - - - - - - - -
Sub-total (B)(1):- - - - - - - - - -

2. Non-Institutions
a) Bodies Corp.
i) Indian - 106500 106500 20.31 907509 0 907509 19.55 (0.76)
ii) Overseas - - - - - - - - -
b) Individuals - - - - - - - - -
i) Individual - - - - 679994 - 679994 14.65 14.65
shareholders holding

34
Annual Report 2017-18
nominal share capital
up to Rs. 1 lakh
ii) Individual - 100000 100000 19.07 906400 0 906400 19.52 0.45
shareholders holding
nominal share capital
in excess of Rs 1 lakh
c) Others (specify)
Clearing Member - - - - 48397 - 48397 1.04 1.04
Market Maker - - - - 70800 - 70800 1.53 1.53
Trust - - - - 13200 - 13200 0.28 0.28
Non-Resident - - - - 79200 - 79200 1.71 1.71
Individuals
Foreign Portfolio - - - - - - - - -
Investors – Corporate
(FPI)
Sub-total (B)(2):- - 206500 206500 39.37 2705500 0 2705500 58.28 11.57
Total Public - 206500 206500 39.37 2705500 0 2705500 58.28 11.57
Shareholding
(B)=(B)(1)+ (B)(2)
C. Shares held by - - - - - - - - -
Custodian for GDRs &
ADRs
Grand Total (A+B+C) - 524500 524500 100.00 4641500 0 4641500 100.00 0.00

b) Shareholding of Promoters/ Promoters Group:-


Shareholding at the beginning of Shareholding at the end of the %
the year year change
No. of % of %of No. of % of %of in
Shares total Shares Shares total Shares shareho
S. Shareholder’s
Shares Pledged / Shares Pledged / -lding
No. Name
of the encumber of the encumber during
compan ed to compan ed to the year
y total y total
shares shares
Promoters
1 Tekulapalli Sanjay 240000 45.76% 0 1440000 31.02 0 (14.74%)
Reddy
2 Anil Kumar Pallala 50000 9.53% 0 300000 6.46 0 (3.07%)
Total 290000 55.29% 0 1740000 37.48% 0 (17.81%)
Promoter’s Group
3 Swathi Reddy 11000 2.10% 0 77000 1.65% 0 (0.45%)
4 Gaurika Reddy 6500 1.24% 0 45500 0.98% 0 (0.26%)
5 Karyampudi Koti 4000 0.76% 0 28000 0.60% 0 (0.16%)
Sridevi
6 Tekulapalli 6500 1.24% 0 45500 0.98% 0 (026%)
Mahikaansh Reddy
Total 28000 5.34% 0 196000 4.21% 0 (1.13%)

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Annual Report 2017-18
c) Change in Promoters’ Shareholding (please specify, if there is no change):-

Date Reason Shareholding at the Cumulative


Particulars beginning of the year shareholding during the
year
No. of % of total No. of % of total
shares shares of shares shares of
the the
company company
Promoters
1. Tekulapalli Sanjay Reddy
At the beginning of the 01.04.2017
240000 45.76% - -
year
24.05.2017 Bonus Issue 1440000 39.22% 1680000 45.76%
Changes during the year 15.01.2018 Offer for
(240000) 5.17 1440000 31.02%
Sale (IPO)
At the end of the year 31.03.2018 - - 1440000 31.02%
2. Anil Kumar Pallala
At the beginning of the 01.04.2017
50000 9.53% - -
year
Changes during the year 24.05.2017 Bonus Issue 300000 8.17% 350000 9.53%
15.01.2018 Offer for
(50000) (1.08%) 300000 6.46%
Sale (IPO)
At the end of the year 31.03.2018 - - 300000 6.46%
Promoter’s Group
3. Swathi Reddy
At the beginning of the 01.04.2017 -
11000 2.10% - -
year
Changes during the year 24.05.2017 Bonus Issue 66000 1.80% 77000 2.10%
At the end of the year 31.03.2018 - 77000 1.66%
4. Gaurika Reddy
At the beginning of the 01.04.2017 -
6500 1.24% - -
year
Changes during the year 24.05.2017 Bonus Issue 39000 - 45500 1.24%
At the end of the year 31.03.2018 - - - 45500 0.98%
5. Karyampudi Koti Sridevi
At the beginning of the 01.04.2017 -
4000 0.76% - -
year
Changes during the year 24.05.2017 Bonus Issue 24000 0.65 28000 0.76%
At the end of the year 31.03.2018 - - - 28000 0.60%
6. Tekulapalli Mahikaansh Reddy
At the beginning of the 01.04.2017 -
6500 1.24% - -
year
Changes during the year 24.05.2017 Bonus Issue 39000 - 45500 1.24%
At the end of the year 31.03.2018 - - - 45500 0.98%

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Annual Report 2017-18
d) Shareholding Pattern of top ten Shareholders (Other than Directors, Promoters and Holders of GDRs
and ADRs):

Particulars Date Reason Shareholding at the Cumulative


beginning of the year shareholding during
the year
No. of % of total No. of % of total
shares shares of shares shares of
the the
company company
1. Ektha.Com Private Limited
At the beginning of the year 01.04.2017 106500 20.31% - -
Changes during the year 24.05.2017 Bonus Issue 639000 17.40% 745500 20.31%
At the end of the year 31.03.2018 - - 745500 16.06%
2. Korrapati Ranganathasai
At the beginning of the year 01.04.2017 100000 19.07% - -
24.05.2017 Bonus Issue 600000 16.64% 700000 19.07%
Changes during the year 15.01.2018 IPO
1200 0.03% 701200 15.11%
allotment
At the end of the year 31.03.2018 - - 701200 15.11%
3. Manoj Agarwal
At the beginning of the year 01.04.2017 0 0
15.01.2018 Purchase 22800 0.49 22800 0.49%
26.01.2018 Sale (4800) -0.10 18000 0.39%
02.02.2018 Purchase 101454 2.19 119454 2.57%
Changes during the year
09.02.2018 Purchase 1411 0.03 120865 2.60%
16.02.2018 Purchase 893 0.02 121758 2.62%
16.03.2018 Purchase 642 0.01 122400 2.64%
At the end of the year 31.03.2018 122400 2.64%
4. Aryaman Capital Markets Limited
At the beginning of the year 01.04.2017
15.01.2018 Purchase 72000 1.55 72,000 1.55%
26.01.2018 Sale (10800) (0.23) 61,200 1.32%
02.02.2018 Purchase 3600 0.08 64,800 1.40%
09.02.2018 Purchase 1200 0.03 66,000 1.42%
Changes during the year 16.02.2018 Sale (3600) (0.08) 62,400 1.34%
23.02.2018 Purchase 3600 0.08 66,000 1.42%
02.03.2018 Purchase 1200 0.03 67,200 1.45%
09.03.2018 Purchase 4800 0.10 72,000 1.55%
30.03.2018 Purchase 1200 0.03 73,200 1.58%
At the end of the year 31.03.2018 73,200 1.58%
5. Divi Satya Sayee Babu
At the beginning of the year 01.04.2017
15.01.2018 Purchase 3600 0.08 3,600 0.08
Changes during the year 26.01.2018 Purchase 25200 0.54 28,800 0.62
09.02.2018 Purchase 1200 0.03 30,000 0.65

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Annual Report 2017-18
23.02.2018 Purchase 2400 0.05 32,400 0.70
02.03.2018 Purchase 4800 0.10 37,200 0.80
09.03.2018 Purchase 6000 0.13 43,200 0.93
At the end of the year 31.03.2018 43,200 0.93
6. Vinod Lodha
At the beginning of the year 01.04.2017
15.01.2018 Purchase 19200 0.41 19,200 0.41
Changes during the year
21.03.2018 Purchase 12000 0.25 31,200 0.67
At the end of the year 31.03.2018 31,200 0.67
7. Tradewell Capfin Private Limited
At the beginning of the year 01.04.2017
Changes during the year 09.02.2018 Purchase 30000 0.65 30000 0.65
At the end of the year 31.03.2018 30000 0.65
8. Maverick Financial Services Private Limited
At the beginning of the year 01.04.2017
26.01.2018 Purchase 22800 0.49 22,800 0.49
09.02.2018 Purchase 6000 0.13 28,800 0.62
Changes during the year
23.02.2018 Sale (28800) (0.62) 0 0.00
02.03.2018 Purchase 28800 0.62 28,800 0.62
At the end of the year 31.03.2018 28,800 0.62
9. Avinash Bhikaji Tawade
At the beginning of the year 01.04.2017
26.01.2018 Purchase 6000 0.13 6,000 0.13
02.02.2018 Purchase 6000 0.13 12,000 0.26
09.02.2018 Purchase 3600 0.08 15,600 0.34
Changes during the year 02.03.2018 Purchase 2400 0.05 18,000 0.39
09.03.2018 Purchase 3600 0.08 21,600 0.47
16.03.2018 Purchase 3600 0.08 25,200 0.54
23.03.2018 Purchase 1200 0.03 26,400 0.57
At the end of the year 31.03.2018 26,400 0.57
10. JM Financial Services Ltd.
At the beginning of the year 01.04.2017
26.01.2018 Purchase 136800 2.95 136,800 2.95
02.02.2018 Sale (132654) (2.86) 4,146 0.09
09.02.2018 Sale (1411) (0.03) 2,735 0.06
Changes during the year 16.02.2018 Purchase 20707 0.45 23,442 0.51
23.02.2018 Sale (10800) (0.23) 12,642 0.27
09.03.2018 Purchase 14400 0.31 27,042 0.58
16.03.2018 Sale (4242) (0.09) 22,800 0.49
At the end of the year 31.03.2018 22,800 0.49

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Annual Report 2017-18
e) Shareholding of Directors and Key Managerial Personnel:

Particulars Date Reason Shareholding at the Cumulative


beginning of the year shareholding during the
year
No. of % of total No. of % of total
shares shares of shares shares of the
the company
company
1. Tekulapalli Sanjay Reddy
At the beginning of the year 01.04.2017 240000 45.76% - -
24.05.2017 Bonus
1440000 39.22% 1680000 45.76%
Issue
Changes during the year
15.01.2018 Offer for
(240000) 5.17 1440000 31.02%
Sale (IPO)
At the end of the year 31.03.2018 - - 1440000 31.02%
2. Anil Kumar Pallala
At the beginning of the year 01.04.2017 50000 9.53% - -
Changes during the year 24.05.2017 Bonus
300000 8.17% 350000 9.53%
Issue
15.01.2018 Offer for
(50000) (1.08%) 300000 6.46%
Sale (IPO)
At the end of the year 31.03.2018 - - 300000 6.46%
3. Swathi Reddy
At the beginning of the year 01.04.2017 - 11000 2.10% - -
Changes during the year 24.05.2017 Bonus
66000 1.80% 77000 2.10%
Issue
At the end of the year 31.03.2018 - 77000 1.66%
4. Venkata Kama Dixitulu Dixitula
At the beginning of the year 01.04.2017 - - - - -
Changes during the year - - - - - -
At the end of the year 31.03.2018 - - - - -
5. Prasada Rao Kalluri
At the beginning of the year 01.04.2017 - - - - -
Changes during the year - - - - - -
At the end of the year 31.03.2018 - - - - -
6. Boda Narsing Rao
At the beginning of the year 01.04.2017 - - - - -
Changes during the year - - - - - -
At the end of the year 31.03.2018 - - - - -
7. Sushma Barla
At the beginning of the year 01.04.2017 - - - - -
Changes during the year - - - - - -
At the end of the year 31.03.2018 - - - - -

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Annual Report 2017-18
V. INDEBTEDNESS - Indebtedness of the Company including interest outstanding/accrued but not due for
payment.
(Amount in Rs.)
Secured Loans Unsecured Deposits Total
Excluding Deposits Loans Indebtedness
Indebtedness at the beginning of the financial year
i) Principal Amount 87,96,902 - - 87,96,902
ii) Interest due but not paid - - - -
iii)Interest accrued but not due - - - -
Total (i+ii+iii) 87,96,902 - - 87,96,902
Change in Indebtedness during the financial year
* Addition - 40,36,000 - 40,36,000
* Reduction 87,96,902 - - 87,96,902
Net Change (87,96,902) - - (47,60,902)
Indebtedness at the end of the financial year
i) Principal Amount - 40,36,000 - 40,36,000
ii) Interest due but not paid - - - -
iii)Interest accrued but not due - - - -
Total (i+ii+iii) 0 40,36,000 - 40,36,000

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:


(Amount in Rs.)
Sl. No. Particulars of Remuneration Name of MD/WTD/ Manager
Designation CMD WTD Total Amount
1. Gross salary Tekulapalli Anil Kumar
Sanjay Reddy Pallala
(a) Salary as per provisions contained in
60,00,000 30,00,000 90,00,000
section 17(1) of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) - - -
Income-tax Act, 1961
(c) Profits in lieu of salary under section - - -
17(3) Income- tax Act, 1961
2. Stock Option - - -
3. Sweat Equity - - -
4. Commission - - -
- as % of profit
- others specify
5. Others, please specify - - -
Total (A) 60,00,000 30,00,000 90,00,000
Ceiling as per the Act *
* Remuneration payable to Managerial Personnel exceeds the limits specified under Section 197 of the
Companies Act, 2013.

40
Annual Report 2017-18
Approval of the members of the Company has obtained, by passing a Special Resolution at the
Extraordinary meeting of the members of the Company held on 15th May 2017, to pay the remuneration to
the Managerial Personnel as per the provisions of Section II of Part II of Schedule V of the Companies Act,
2013.
B. Remuneration to other Directors:
(Amount in Rs.)
Sl. No. Particulars of Remuneration Name of Directors
1. Independent Directors Venkata Kama Prasada Total Amount
Dixitulu Dixitula Rao Kalluri
Fee for attending board committee - 65,000 65,000
meetings
Commission - - -
Others, please specify - - -
Total (1) - 65,000 65,000
2. Other Non-Executive Directors Swathi Reddy Total
Fee for attending board committee - -
meetings
Commission - -
Others, please specify - -
Total (2) - -
Total (B)=(1+2) - -
Total Managerial Remuneration - -
Overall Ceiling as per the Act - - -

C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD – Not Applicable


(Amount in Rs.)
Sl. No. Particulars of Remuneration Name of Key Managerial
Total
Personnel
Amount
1. Designation CFO CS
Gross salary Boda Narsing Rao Sushma
Barla
(a) Salary as per provisions contained
in section 17(1) of the Income-tax Act, 5,04,000 3,60,000 8,64,000
1961
(b) Value of perquisites u/s 17(2) - - -
Income-tax Act, 1961
(c) Profits in lieu of salary under section - - -
17(3) Income- tax Act, 1961
2. Stock Option - - -
3. Sweat Equity - - -
4. Commission - - -
- as % of profit
- others, specify
5. Others, please specify - - -
Total (A) 5,04,000 3,60,000 8,64,000

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Annual Report 2017-18

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES

Type Section of Brief Details of Penalty / Authority Appeal


the Description Punishment/ [RD / NCLT/ made, if any
Companies Compounding COURT] (give Details)
Act fees imposed
A. COMPANY
Penalty
Punishment
Compounding
B. DIRECTORS
Penalty
Punishment
Compounding
C. OTHER OFFICERS
IN DEFAULT
Penalty
Punishment
Compounding

By Order of The Board of Directors


For Silly Monks Entertainment Limited

Sd/-
Tekulapalli Sanjay Reddy
Place: Hyderabad Chairman & Managing Director
Date: 31st August, 2018 DIN: 00297272

42
Annual Report 2017-18
ANNEXURE-V
MANAGEMENT DISCUSSION ANALYSIS

a) COMPANY OVERVIEW

In this digital era, the world is no longer what it used to be. It takes courage and flexibility to embrace that
change. We at Silly Monks do just that!

Drawing upon years of experience in the fields of technology, media, and content creation, we at Silly Monks
Entertainment identify ourselves as an internet publishing, content creation, mobile distribution, marketing,
advertising and strategic consulting company.

Our eclectic team of young men and women from a range of backgrounds; highly educated and with street
smarts, make a deadly combination. This helps us bring an element of uniqueness to our work. We are
constantly growing and raising our standards to improve our performance.

OUR BUSINESS LINES / MODEL ARE AS ARE AS ILLUSTRATED BELOW:

Google Ad word Digital Media Publishing

Advertising
Audio content Movie/Content
Production Distribution

Celebrities SILLYMONKS ENTERTAINMENT App Development


Social LTD
Media management

Dream Boat Entertainment Pte Ltd Monkstar Music LLP Event Monks Entertainment LLP
(100% Subsidiary) (67% Subsidiary) (64% Subsidiary)

Formed as an SPV Company Live Band Performances, promoting Event Management


in Hong Kong For the Music talent such as singers, bands or
You Tube Business line. Composers for creative content creations

We are a ‘South India’ based entertainment & media startup with a focus of being a recognized & fast-growing
player in areas such as digital media publishing, movie/content production, celebrities social media

43
Annual Report 2017-18
management, App development, Audio content Distribution, Google Ad word and online / digital Advertising,
event management, and live band performances.

Our main focus currently is Digital Media Publishing. We publish our content on various platforms such as
YouTube, Facebook, Amazon, Vuclip etc. The contents that are being published over these platforms are either
created by us i.e. by our in-house production or acquired through outright purchase or through syndicated
method. In case of content which is bought by us, we own the copy rights of the content through an agreement
with assignor and hence the publishing revenue is fully accrued to us. When the content is through syndication,
we share the revenue with the content partner.

We are a Youtube MCN (Multi Channel Network). We have an exhaustive spread of creative endeavours. The
Silly Monks creative team works towards creating interesting and innovative new content, including videos,
music and movie-based entertainment. We also keep our radars on, to spot new talent and give them the
break they truly deserve. Through inventive reprocessing and web optimization, we ensure the visibility and
accessibility of our content. We also have trained professionals who maximize the profit and track
unauthorized content duplication.

b) INDUSTRY STRUCTURE AND DEVELOPMENTS

INDIAN ECONOMIC SCENARIO


India has emerged as the fastest growing major economy in the world as per the Central Statistics Organisation
(CSO) and International Monetary Fund (IMF). The Government of India has forecasted that the Indian
economy will grow by 7.1 per cent in FY 2016-17. As per the Economic Survey 2016-17, the Indian economy
should grow between 6.75 and 7.5 per cent in FY 2017-18.

Digital Media Publishing Industry Global and Indian Economy

Global Trends: Transition to On-Demand Content


Media consumption across the globe is increasingly happening in digital formats. The increase in the number
of devices capable of supporting digital media along with increasing internet access speed, has provided
consumers with an option to access the media content of his choice be it information, entertainment or social
activity anytime, anywhere. Media consumption in the US has shown tremendous increase and has seen a
significant jump from traditional media to new (digital) media. The rise of digital media players such as Netflix,
Hulu, Amazon, Apple TV, Roku, and Boxee, etc. are challenging the traditionally maintained supremacy of the
television as the main entertainment hub.

Mobile devices driving the digital consumption Online media consumption has shown tremendous growth
over the past few years. Among the digital devices, mobile devices have taken over as the preferred medium
of consuming online media. The smartphone market has seen an unprecedented growth in the last 5 years.
Smartphone devices across the globe grew at a CAGR of 17% as compared to 9.5% growth in all mobile devices.
Smartphones crossed 2 billion mark in 2014 and are expected to reach 4.6 billion by 2019. This increase in the
number of mobile devices is making it easier for consumers to access music and video content on the go. In
2014, the smartphone mobile data traffic alone stood at 1.73 EB per month (69% of global mobile data traffic),

44
Annual Report 2017-18
which is expected to grow 10-fold from 2014 to 2019, a compound annual growth rate (CAGR) of 60%. Tablet
mobile data traffic will grow 20-fold from 2014 to 2019 (CAGR of 83%) to reach 3.2 EB per month.

The internet has been and continues to be a disruptive force impacting distribution and consumption channels
for media. With better networks, coverage, and advanced technologies (3G, 4G / LTE) the data consumption
across the globe has risen. Audio & Video drive the global digital media consumption Most of this data growth
is attributed to different digital media especially the entertainment services like video, audio etc.

Globally, video and audio traffic has dominated the internet data consumption for some years now. The
devices used to access digital content have evolved in the last few years that have increased the array of
platforms on which a user can stream audio and video content. Netflix share of internet traffic in North
America increased further and accounted for 34% of data flowing to consumers during the peak times in first
half of 2014. 2 Over-the-top (OTT) service providers like YouTube and Subscription-based digital content
providers like Spotify have also acted as a catalyst in the growth of audio/video data streaming. The global
audio and video traffic combined is expected to reach 82% of all internet traffic by 2018.

Digital Media Landscape in India

In line with global trends, the Indian consumer is increasingly consuming the content on digital platforms. This
trend is observed for all type of content including news (text), music (audio), or video. Increasing internet
penetration and mobile device proliferation and convenience of consuming the content anytime, anywhere
are the key drivers for this trend.

Rapidly increasing internet users


India added 43 million internet users (20.5% growth) from October 2013 to September 2014 and total internet
users crossed 254 million 6 in September 2014. Out of these, 235 million users accessed internet through
mobile devices. The growth in internet users was seen both in rural and urban parts of India. Internet users in
rural India is expected to reach 138 million by June 2015, while 216 million internet users are expected to be
in urban India by then. With improved networks, better access to internet, multimedia service-capable mobile
devices and application development ecosystem, more and more media consumption would happen on digital
platforms.

India has around 300,000 app developers and is already the second largest Android developer community in
the world after the US. While the internet user base in India is growing at a rapid rate; most of these users
(75%) belongs to the age group of less than 35 years. More than half of the app users in India are aged between
18 and 24 years and a further 29% between 25 and 35. 45% of these users reside in the top 4 metros.

45
Annual Report 2017-18

Higher spend on entertainment services by youth


On an average, an internet connected user in India spends 14% of his or her time and 17% of his or her monthly
spending on entertainment. Combined spend by an internet user on Mobile and Entertainment increased by
34% in two years from 2012 to 2014.

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Annual Report 2017-18
India Media and Entertainment Industry

The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy and is making high
growth strides. Proving its resilience to the world, the Indian M&E industry is on the cusp of a strong phase of
growth, backed by rising consumer demand and improving advertising revenues. The industry has been largely
driven by increasing digitization and higher internet usage over the last decade. Internet has almost become
a mainstream media for entertainment for most of the people.
Market Dynamics

The Indian media & entertainment sector is expected to grow at a Compound Annual Growth Rate (CAGR) of
14.3 per cent to touch M 2.26 trillion (US$ 33.9 billion) by 2020, while revenues from advertising is expected
to grow at 15.9 per cent to M 99,400 crore (US$ 14.91 billion).Over FY 2015-20, radio will likely grow at a CAGR
of 16.9 per cent, while digital advertising will grow at 33.5 per cent. The largest segment, India’s television
industry, is expected to grow at a CAGR of 15 per cent, while print media is expected to grow at a CAGR of 8.6
per cent. India is one of the highest spending and fastest growing advertising market globally.

The Foreign Direct Investment (FDI) inflows in the Information and Broadcasting (I&B) sector (including Print
Media) in the period April 2000 – December 2016 stood at US$ 6.3 billion, as per data released by Department
of Industrial Policy and Promotion (DIPP).
(https://www.ibef.org/industry/media-entertainment-india.aspx)

The digital media entertainment sector is a niche space that is growing and will set the standards of things to
come in the near future, globally. With media consumption across the globe increasingly happening in digital
formats, marketers are shifting their advertising spends towards digital media There is a marked shift in
consumer preferences towards digital media consumption as compared to traditional forms of media which
include TV, print press, and radio.

Silly Monks Entertainment is one of the leading Digital Entertainment Companies in India operating
successfully since 2013, headquartered in Hyderabad. SMEL is associated with some of the biggest names in
digital property management, OTT platforms, social media, movies, music ... and the list goes on – Facebook,
YouTube, Google, Yahoo, Amazon, Yupp TV, VuClip, Spuul, Hungama, Idea among them. Along with all else,
the team has worked with producers of some of the biggest blockbusters out of the Southern movie industry
in recent times – viz. #Baahubali, #Rudramadevi, Shankar’s #I, #Aagadu, #Peruchazhi, #Kali, #Magalirmattum,
#Garudavega, #GautamiputraSatakarni, #Mahanati; as well as producing the first ever Telugu web series for
Amazon Prime, #Gangstars. Upping the ante, Silly Monks has consolidated a virtual monopoly in the Deccani
movie world too.
Keeping in trend with the industry space it occupies, SMEL has a strong presence in the Indie music and event
space too. Operating in a fast evolving and competitive industry has its perks since the players define their
own niches as they grow.

c) Segment-wise or product wise performance


The segment wise performance of the company can be analyzed on the basis of the Audited Financial
Statements for the financial year 2017-18 annexed with this report.
d) Opportunities and Threats:

In line with global trends, the Indian consumer is increasingly consuming the content on digital platforms. This
trend is observed for all type of content including news (text), music (audio), or video. Increasing internet

47
Annual Report 2017-18
penetration and mobile device proliferation and convenience of consuming the content anytime, anywhere
are the key drivers for this trend.

Growth opportunities/ parameters for SMEL are based on the following:


• Rapidly increasing number of internet users
• Higher spend on entertainment services by youth
• Rising data consumption with smartphone penetration
• Ever growing need for unique content for various segments
• Increasing pan-India presence to garner more visibility and which helps in acquisiton of quality content

Only threats beyond our control could stop the juggernaut from it’s path. That is what we like to believe as we
continue to grow.

(d) Outlook

The team continues to rely on the core strengths of experience and a strategically qualified team of
professionals, but more so with a strong focus on quality content we believe that we have became a well
known brand name in the business of Digital Media Marketing. The growing market in that space gives us a
larger playing field.

The digital media entertainment space is as yet a niche space and yet with the foreseen growth, it can only get
more interesting in the days ahead. Our main strategy is to continually build on the diverse content library and
strong fiscal planning and growth projections.

(e) Risks and Concerns

Risks are a part of every growing entity and especially when it concerns businesses that are in a sunrise industry
as ours. There are always risks and concerns and the only way to deal with them are to plan strategically. To
be aware always of every risk potential is the only thumb rule we follow.

However the main risks that would be incomparable in terms of our growth would probably be:

• Force Majeure – superior or overpowering force beyond control of mankind


• Collapse of the Internet/ shutting down of Google / Facebook serverts
• Facebook monetising content that may reduce YouTube viewership

e) Internal control systems and their adequacy

The Company has adequate and efficient internal control systems that provide protection of all the assets
against losses from unauthorized use and for appropriate reporting of transactions. The Company has
implemented proper controls which are reviewed at regular intervals to ensure that the authenticity of
the transactions.

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Annual Report 2017-18
f) Discussion on financial performance with respect to operational performance

FINANCIAL CONDITION (STANDALONE)

Capital Structure:
The Paid-up Share Capital of the Company as on 31st March 2018 is Rs. 46,41,500 divided into 4,64,150
Equity Shares of Rs.10/- each fully paid up.

Other Equity:
The Reserves and Surplus of the company as on 31st March 2018 stand at Rs. 11,60,36,237/- as compared
to Rs. 3,62,20,125 in the previous year. The increase of Reserves is due to Issue of Shares of Rs. 4,11,70,000
for the FY 2017-18.

Fixed Assets:
The Company invested on Fixed Assets Rs. 3,41,39,299 in the financial year 2017-18.

Sundry Debtors:
Sundry debtors increased to Rs. 2,60,24,443 as on 31st March 2018 as compare with previous year
Rs21,97,800. These debtors are considered good and realizable.

Cash and Bank Balances:


Cash and Bank balances with Scheduled Banks stood to Rs. 6,07,64,008 as against Rs. 86,44,339 in the
previous years.

Loans and Advances:


Long Term Loans and Advances is Rs. 1,55,90,593 as against Rs. 1,50,30,075 in the previous year. Short
Term Loans and Advances is Nil as against Nil in the previous year.

Current Liabilities:
Current Liabilities as on 31st March 2018 is Rs. 62,08,994 as against Rs.76,81,323 in the previous Year.

FINANCIAL CONDITION (CONSOLIDATED):

Reserves and Surplus


The Reserves and Surplus of the company as on 31st March 2018 stand at Rs. 13,95,41,982/- as compared
to Rs. 5,00,90,657 in the previous year.

Fixed Assets
The Company invested on Fixed Assets Rs. 3,43,50,894 in the financial year 2017-18.

Sundry Debtors:
Sundry debtors increased to Rs. 4,15,80,732 as on 31st March 2018 as compare with previous year
Rs1,13,77,493. These debtors are considered good and realizable.

Cash and Bank Balances:


Cash and Bank balances with Scheduled Banks stood to Rs.7,50,66,934 as against Rs.2,63,00,199 in the
previous years.

49
Annual Report 2017-18

Loans and Advances:


Long Term Loans and Advances is Rs.1,55,90,593 as against Rs.1,50,30,075 in the previous year. Short
Term Loans and Advances is Nil as against Nil in the previous year.

Current Liabilities:
Current Liabilities as on 31st March 2018 is Rs. 1,52,53,852 as against Rs.2,41,36,155 in the previous Year.

STANDALONE OPERATIONAL RESULTS:

Turnover:
During the financial year 2017-18 the turnover of the Company was Rs. 8,40,07,972 as against Rs.
2,99,93,287 in the previous year and income from other sources as on 31st March 2018 was Rs. 9,53,700
as against Rs. 2,30,172 in the previous year.

Depreciation:
The Company has provided Rs.32,77,867 for depreciation during the financial year 2017-18 as against Rs.
20,29,845 in the previous years.

Provision for Tax:


The Company has provided for tax Rs.4,35,978 in the financial year 2017-18 as against Rs.7,10,985 in the
previous financial year.

Net Profit:
The Net Profit of the Company after tax is Rs.94,06,499 for the financial year 2017-18 as against Rs.
26,15,348 in the previous year.

Earnings per Share:


The Earnings per Share of the Company as on 31st March, 2018 is Rs. 2.43 per share for Face Value of Rs.
10 as against Rs. 0.73 per share for Face Value of Rs.10 in the previous year.

CONSOLIDATED OPERATIONAL RESULTS:

Turnover
During the financial year 2017-18 the turnover of the Company was Rs. 15,75,82,782 as against Rs.
12,01,96,494 in the previous year and income from other sources as on 31st March 2018 was Rs. 9,53,700
as against Rs. 6,17,675 in the previous year.

Depreciation
The Company has provided Rs.38,11,792 for depreciation during the financial year 2017-18 as against Rs.
27,09,825 in the previous years.

Provision for Tax:


The Company has provided for tax Rs.23,78,489 in the financial year 2017-18 as against Rs.8,29,179 in the
previous financial year.

50
Annual Report 2017-18

Net Profit:
The Net Profit of the Company after tax is Rs.1,86,57,932 for the financial year 2017-18 as against Rs.
1,45,64,028 in the previous year.

Earnings per Share:


The Earnings per Share of the Company as on 31st March, 2018 is Rs. 4.92 per share for Face Value of Rs.
10 as against Rs. 4.03 per share for Face Value of Rs.10 in the previous year.

(h) Material developments in Human Resources/Industrial Relations front including number of people
employed

Human capital
Our employees are our most important assets. We believe that the quality and level of service that our
professionals deliver are among the highest in the Digital Media services. We are committed to remaining
among the industry’s leading employers.

The Company has a mix of both experienced with 20 plus years in the industry as well as others with 10
plus and some with 2 to 3 plus years experience which gives us fresh lease and extra edge to the
competitors.

As on 31st March 2018, we had 22 employees in total. We have hired 9 employees between March 2017
and April 2018 (includes attrition).

The key aspects of our HR practice include recruitment, training and development, and compensation.

Recruitment

The year 2017-2018 has been a very aggressive year for the company considering the Initial Public Offer.
The Company had acquired good projects which required credible manpower in YouTube Creators, Social
Media, App development, Mobile & OTT platforms, Brand Management, Film Productions, Digital
promotions for films. We have hired efficient and experienced manpower from recruiters and employee
referrals. We rely on a rigorous selection process involving technical interviews with senior management
and HR interviews to identify the best applicants. This selection process is continually assessed and refined
based on the performance tracking of past recruits.

Compensation

Our technology professionals receive competitive salaries and benefits. Overall compensation at the
Company as compared to competitors is highly competitive. We believe to have best of talents in the
organization as we deal with reputed projects. HR team is exploring possible options to include other
health and reimbursement benefits to employees in the next 24 months as a long-term plan.

51
Annual Report 2017-18
CAUTIONARY STATEMENT:

Statements in this management discussion analysis describing the Company’s objectives, projections,
estimates, expectations may be forward looking within the meaning of applicable securities-laws and
regulations. Actual results may differ materially from those expressed in the statement. Important factors that
could make difference to Company’s operations include economic conditions affecting the domestic market
and the overseas markets in which the Company operates, changes in the Government regulations, tax laws
and other statutes and other incidental factors.

By Order of The Board of Directors


For Silly Monks Entertainment Limited

Sd/-
Tekulapalli Sanjay Reddy
Place: Hyderabad Chairman & Managing Director
Date: 31st August, 2018 DIN: 00297272

52
Annual Report 2017-18
Annexure – VI

Details pertaining to Employees as required under Section 197(12) of the Companies Act, 2013

Statement of Particulars of Employees Pursuant to Provisions of Section 197(12) of the Companies Act 2013
read with Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

i) In the financial year, there was increase in the remuneration of Managing Director and Whole-Time
Director.

ii) In the financial year, there was no increase in remuneration of each Director other than Managing Director
and Whole-Time Director, Chief Financial Officer and Company Secretary.

iii) In the financial under review, there was a increase of 29.69% in the median remuneration of employees.

iv) There were 10 permanent employees on the rolls of Company as on 31st March, 2018.

v) We herewith affirm that remuneration to the Directors and Key Managerial Personnel is as per the
remuneration policy of the Company.

53
Annual Report 2017-18
Top 10 Employees in terms of remuneration:

Employee Age Qualificat Designation DOJ Remuner % of Experie Last Relations


Name ions ation Increase nce Employer with MGT
Tekulapalli 50 MBA Chairman & 01.04.2014 5,00,000 66.67% 27 Zee Husband of
Sanjay Managing Entertain Mrs.
Reddy Director ment Swathi
Reddy,
Non-
Executive
Director
Anil Kumar 36 Diploma Whole Time 01.09.2013 2,50,000 25% 16 Big 92.7 -
Pallala Director FM
Myneni 32 B.A Head 11.08.2016 1,25,000 No 12 Vega -
Nagasri Mobile-vas Increment Entertain
ment Pvt.
Limited

Sridevi Koti 32 BPT Sr. manager 01.09.2013 1,00,000 No 11 Whacked -


Karyampudi (publishing) Increment Out
Vijay TR 47 B.com Head-news 15.02.2018 1,00,000 N.A 25 UTV -
media Entertain
ment
Naveen A 42 MBA Head- Digital 16.02.2018 1,25,000 N.A 20 FCB ULKA -
mktg
Naveen .C 31 B.com Head- 02.07.2016 53,750 No 11 IQLIK -
Acquisition Increment
Anindita 50 MBA Head- 20.10.2017 50,000 N.A 28 Netzreze -
Dhar Marketing pte.de
Narsing Rao 34 MBA CFO 01.09.2013 42,000 33.95% 11 Wacked -
B out
Sushma 24 CS CS & 17.04.2017 30000 N.A 0 -
Barla Compliance
officer

By Order of The Board of Directors


For Silly Monks Entertainment Limited
Sd/-
Tekulapalli Sanjay Reddy
Place: Hyderabad Chairman & Managing Director
Date: 31st August, 2018 DIN: 00297272

54
Annual Report 2017-18
INDEPENDENT AUDITOR’S REPORT

To the Members of
SILLY MONKS ENTERTAINMENT LIMITED
(FORMERLY KNOWN AS SILLY MONKS ENTERTAINMENT PRIVATE LIMITED)

Report on the Financial Statements

We have audited the accompanying financial statements of SILLY MONKS ENTERTAINMENT LIMITED
(FORMERLY KNOWN AS SILLY MONKS ENTERTAINMENT PRIVATE LIMITED)(the “Company”), which comprise
the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss and the Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and other explanatory information
(together hereinafter referred to as “financial statements”).

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies
Act, 2013 (“the Act”) with respect to the preparation of these financial statements that give a true and fair
view of the financial position, financial performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the Accounting Standards specified under Section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken
into account the provisions of the Act, the accounting and auditing standards and matters which are required
to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the
Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal financial control relevant to the Company’s
preparation of the financial statements that give a true and fair view in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the
Company has in place inadequate internal financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the appropriateness of the accounting policies

55
Annual Report 2017-18
used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as
evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the financial statements

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial
statements give the information required by the Act in the manner so required and give a true and fair view
in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company
as at March 31, 2018, its Profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s report) Order, 2016 (“the Order”) issued by the Central
Government of India in terms of sub-section (11) of section 143 of the Act, we give in the ”Annexure A” a
statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143 (3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our Knowledge
and belief were necessary for the purpose of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company so far as
it appears from our examination of those books;

c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report
are in agreement with the books of account;

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified
under section 133 of the Act, read with Rule 7 of the Companies (Accounts)Rules, 2014 and the
Companies (Indian Accounting Standards) Rules, 2015, as amended;

e) On the basis of written representations received from the directors as on March 31, 2018, and taken
on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from
being appointed as a director in terms of section 164 (2) of the Act;

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company
and the operating effectiveness of such controls, refer to our separate Report in “Annexure B” to this
report;

g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11of
the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:

56
Annual Report 2017-18
(i) The Company does not have any pending litigations to which would have an impact on its financial
position.

(ii) The Company did not have any long-term contracts including derivative contracts for which there
were any material foreseeable losses.

(iii) There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company.

For Ramasamy Koteswara Rao and Co LLP


Chartered Accountants
Firm Registration No: 010396S/S200084

Sd/-
Place: Hyderabad (C V Koteswara Rao)
Date: 29-05-2018 Partner
Membership No-028353

57
Annual Report 2017-18
Annexure A to the Auditors’ Report (referred to in paragraph 1 of our Report of even date to the Members
of “SILLY MONKS ENTERTAINMENT LIMITED (FORMERLY KNOWN AS SILLY MONKS ENTERTAINMENT
PRIVATE LIMITED)” for the year ended (March 31, 2018)

On the basis of such checks as we considered appropriate and according to the information and explanation
given to us during the course of our audit, we report that;

i. (a) The Company has maintained proper records showing full particulars, including quantitative details
and situation of fixed assets,
(b) All fixed assets have been physically verified by the management during the year in accordance
with a phased program of verification which, in our opinion is reasonable having regard to the size of
the company and the nature of its assets. According to the information furnished to us, no material
discrepancies have been noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of
the records of the Company, the company does not have any immovable properties so reporting under
this clause is not applicable to the Company.
ii. The Company is a service company, primarily rendering digital marketing services. Accordingly, it does
not hold any physical inventories. Thus, paragraph 3(ii) of the Order is not applicable to the Company.
iii. The Company has granted loans to parties covered in the register maintained under section 189 of the
Companies Act, 2013 ('the Act').
a. In our opinion, the rate of interest and other terms and conditions on which the loans had
been granted to the parties listed in the register maintained under Section 189 of the Act were
not, prima facie, prejudicial to the interest of the Company.
b. In the case of the loans granted to the parties listed in the register maintained under section
189 of the Act, the borrowers have been regular in the payment of the principal and interest
as stipulated.
c. There are no overdue amounts in respect of the loan granted to parties listed in the register
maintained under section 189 of the Act.

iv. In our opinion and according to the information and explanations given to us, the company has
complied with the provisions of section 185 and 186 of the Companies Act, 2013 In respect of loans,
investments, guarantees, and security.

v. The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and
the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of
clause 3(v) of the Order are not applicable.

vi. The Central Government has not prescribed the maintenance of cost records under section 148(1) of
the Act, for any of the services rendered by the Company.

vii. (a) According to information and explanations given to us and on the basis of our examination of the
books of account, and records, the Company has been generally regular is depositing undisputed
statutory dues including Income Tax, Sales Tax, Value Added Tax, Cess and any other statutory dues
with the appropriate authorities. According to the information and explanations given to us, no
undisputed amounts payable in respect of the above were in arrears as at March 31, 2018 for a period
of more than six months from the date on when they become payable.

58
Annual Report 2017-18
(b) According to the information and explanation given to us, there are no dues of income tax, Sales
tax, Service tax, duty of customs, duty of excise, Value Added Tax and any other laws outstanding on
account of disputes.
viii. The Company has not defaulted in any repayment of loans or borrowings from any financial institution,
banks, government or debenture holders during the year. Accordingly, paragraph 3(viii) of the Order
is not applicable.

ix. According to the information and explanations given to us the company had raised Rs. 1,118.39 lakhs
by way of Initial Public Offer out of which the company has utilised Rs.546.39 lakhs for the purpose
for which it was raised and a sum of Rs.572.00 Lakhs have been temporarily parked in fixed deposit
with bank.

x. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the
financial statements and according to the information and explanations given by the management, we
report that no fraud by the company or on the company by the officers and employees of the Company
has been noticed or reported during the year.

xi. According to the information and explanations given by the management, the managerial
remuneration has been paid / provided in accordance with the requisite approvals mandated by the
provisions of section 197 read with Schedule V to the Companies Act, 2013.
xii. In our opinion, the Company is not a Nidhi company. Therefore, the provisions of clause 3(xii) of the
order are not applicable to the Company and hence not commented upon.
xiii. According to the information and explanations given by the management, transactions with the
related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable
and the details have been disclosed in the notes to the financial statements, as required by the
applicable accounting standards.
xiv. According to the information and explanations given to us and on an overall examination of the
balance sheet, the Company has made the preferential allotment and private placement of shares
during the year under review and complied with applicable provisions of the companies Act, 2013.
xv. According to the information and explanations given by the management, the Company has not
entered into any non-cash transactions with directors or persons connected with him as referred to in
section 192 of Companies Act, 2013.Accordingly, the provision of clause 3 (xv) of the Order is not
applicable to the Company and hence not commented upon.
xvi. According to the information and explanations given to us, the provisions of section 45-IA of the
Reserve Bank of India Act, 1934 are not applicable to the Company and hence not commented upon.

For Ramasamy Koteswara Rao and Co LLP


Chartered Accountants
Firm Registration No: 010396S/S200084

Sd/-
Place: Hyderabad (C V Koteswara Rao)
Date: 29-05-2018 Partner
Membership No-028353

59
Annual Report 2017-18
ANNEXURE B TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF
SILLY MONKS ENTERTAINMENT LIMITED (FORMERLY KNOWN AS SILLY MONKS ENTERTAINMENT PRIVATE
LIMITED)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies
Act, 2013 (“the Act”)

To the Members ofSILLY MONKS ENTERTAINMENT LIMITED (FORMERLY KNOWN AS SILLY MONKS
ENTERTAINMENT PRIVATE LIMITED)

We have audited the internal financial controls over financial reporting of SILLY MONKS ENTERTAINMENT
LIMITED (FORMERLY KNOWN AS SILLY MONKS ENTERTAINMENT PRIVATE LIMITED) (“the Company”) as of
March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended
on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s Management is responsible for establishing and maintaining internal financial controls based
on the internal control over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Company’s
policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing as specified
under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial
controls and, both issued by the Institute of Chartered Accountants of India.

Those Standards and the Guidance Note require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether adequate internal financial controls over
financial reporting was established and maintained and if such controls operated effectively in all material
respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial
controls system over financial reporting and their operating effectiveness. Our audit of internal financial
controls over financial reporting included obtaining an understanding of internal financial controls over
financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures selected depend
on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient

60
Annual Report 2017-18
and appropriate to provide a basis for our audit opinion on the internal financial controls system over financial
reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. A company’s internal financial
control over financial reporting includes those policies and procedures that
(1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and
directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use,
or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to error or
fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial control over financial
reporting may become inadequate because of changes in conditions, or that the degree of compliance with
the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over
financial reporting and such internal financial controls over financial reporting were operating effectively as at
March 31, 2018, based on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For Ramasamy Koteswara Rao and Co LLP


Chartered Accountants
Firm Registration No: 010396S/S200084

Sd/-
Place: Hyderabad (C V Koteswara Rao)
Date: 29-05-2018 Partner
Membership No-028353

61
Annual Report 2017-18
BALANCE SHEET
SILLY MONKS ENTERTAINMENT LIMITED
(FORMERLY KNOWN AS SILLY MONKS ENTERTAINMENT PRIVATE LIMITED)
Flat No. 301, EKTHA PEARL, 2-17-89, B P RAJU MARG, KOTHAGUDA,
KONDAPUR,HYDERABAD,TELANGANA 500084
Standalone Balance Sheet as at 31st March 2018
Particulars Note No. 2017-18 2016-17
1 2 3 4
I EQUITY AND LIABILITIES

1 Shareholders’ funds
a) Share capital 1 46,415,000 52,45,000
b) Reserves and surplus 2 116,036,237 3,62,20,125
2 Non-current liabilities
a) Long-term borrowings 3 4,036,000 49,18,880
b) Deferred Tax Liability 1,351,841 9,95,682
3 Current liabilities
a) Short Term Borrowings 4 - -
b) Trade payables 5 2,029,892 12,00,275
c) Short Term Provisions 6 2,243,691 7,10,985
d) Other current liabilities 7 1,935,411 57,70,063
TOTAL 174,048,072 5,50,61,010
II ASSETS
1 Non-Current assets
a) Fixed assets
i) Tangible assets 8 12,139,404 1,49,33,318
ii) Intangible Assets 17,804,198 71,63,517
iii) Capital Work-in-Progress 20,389,995 28,87,370
b) Non Current Investments 9 13,324,953
c) Long Term Loans & Advances 10 15,590,593 30,17,921
1,50,30,075
2 Current assets
a) Trade receivables 11 26,024,443 21,97,800
b) Cash and cash equivalents 12 60,764,008 86,44,339
c) Short-term loans and advances 13 2,102,540 734,103
d) Other Current assets 14 5,907,938 4,52,567
TOTAL 174,048,072 5,50,61,010

Significant Accounting Policies A


As per our report of even date attached
For Ramasamy Koteswara Rao and Co LLP, By order of the Board
Chartered Accountants
Firm Regn No. 010396S/S200084 Sd/-
Sd/- Tekulapalli Sanjay Reddy
(CV Koteswara Rao) Chairman & Managing Director
Partner
Membership No-028353 Sd/- Sd/- Sd/-
Place: Hyderabad Boda Narsing Rao Sushma Barla Anil Kumar Pallala
Date: 29.05.2018 Chief Financial Officer Company Secretary Whole Time Director

62
Annual Report 2017-18
STATEMENT OF PROFIT & LOSS ACCOUNT
SILLY MONKS ENTERTAINMENT LIMITED
(FORMERLY KNOWN AS SILLY MONKS ENTERTAINMENT PRIVATE LIMITED)
Flat No. 301, EKTHA PEARL, 2-17-89, B P RAJU MARG, KOTHAGUDA,
KONDAPUR,HYDERABAD,TELANGANA 500084
STATEMENT OF PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2018
Particulars Note No. 2017-18 2016-17
I Revenue from operations 15 84,007,972 2,99,93,287

II Other income 16 953,700 2,30,172

III Total Revenue (I + II) 84,961,672 3,02,23,459


IV Expenses:
Direct Cost 17 40,553,663 75,75,510
Employee benefits expense 18 15,508,869 1,14,05,136
Finance Cost 19 741,386 3,57,573
Depreciation and amortization expense 6 3,277,867 20,29,845
Other expenses 20 13,105,070 51,24,169
Total expenses 73,186,855 2,64,92,233

V Profit before tax (III-IV) 11,774,817 37,31,226


VI Tax expense:
(a) Current tax 2,243,691 7,10,985
(b) Deferred tax 356,159 4,22,317
(c) MAT Credit Entitlement 21 (231,532) (17,423)

VII Profit (Loss) for the period (V-VI) 9,406,499 26,15,348

IX Earnings per equity share:


1) Basic 2.43 0.73
2) Diluted 2.43 0.73
Significant Accounting Policies
As per our report of even date attached
For Ramasamy Koteswara Rao and Co LLP, By order of the Board
Chartered Accountants
Firm Regn No. 010396S/S200084 Sd/-
Sd/- Tekulapalli Sanjay Reddy
(CV Koteswara Rao) Chairman & Managing Director
Partner
Membership No-028353 Sd/- Sd/- Sd/-
Place: Hyderabad Boda Narsing Rao Sushma Barla Anil Kumar Pallala
Date: 29.05.2018 Chief Financial Officer Company Secretary Whole Time Director

63
Annual Report 2017-18
CASH FLOW STATEMENT

SILLY MONKS ENTERTAINMENT LIMITED


(FORMERLY KNOWN AS SILLY MONKS ENTERTAINMENT PRIVATE LIMITED)
Flat No. 301, EKTHA PEARL, 2-17-89, B P RAJU MARG, KOTHAGUDA,
KONDAPUR,HYDERABAD,TELANGANA 500084
STANDALONE CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2018
Particulars 2017-18 2016-17
A. CASH FLOW FROM OPERATING ACTIVITIES:
Net Profit before Tax 11,774,817 37,31,226
Adjustments for:
Depreciation 3,277,867 20,29,845
IPO Expenditure Written Off (4,820,387) -
Finance Cost 741,386 3,57,573
Profit on Sale of Fixed Assets 2,159,286 (14,132)
Operatine Profit Before Working Capital Changes 13,132,969 61,04,512
Adjustments for Changes in Current and Non Current
Liabilities and Assets
Increase/(Decrease) in Trade Payables 829,616 8,50,484
Increase/(Decrease) in Other Current Liabilities (3,834,651) 44,36,931
Increase/(Decrease) in Short Tern Borrowings - (33,94,289)
(Increase)/Decrease in Current Investments - -
(Increase)/Decrease in Inventories - -
(Increase)/Decrease in Trade Receivables (23,826,643) 15,04,406
(Increase)/Decrease in Short Term Loans & Advances (1,368,438) (9,44,447)
(Increase)/Decrease in Other Current Assets (5,455,371) (1,04,982)
(Increase)/Decrease in Non Current Investments (10,307,032) (8,01,949)
(Increase)/Decrease in Long Term Loans & Advances (560,518) (14,470,986)
Cash Generated from Operating Activities (31,390,067) (6,820,320)
Taxes paid (479,452) (2,00,740)
Net Cash from Operating Activities (A) (31,869,519) (7,021,060)
B. CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of Fixed Assets (34,139,299) (1,78,85,230)
Sale of Fixed Assets 3,352,754 2,01,700
Net Cash from Investing Activities (B) (30,786,545) (1,76,83,530)
C. CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from Long Term Borrowings (882,880) 35,11,679
Interest paid (741,386) (3,57,573)
Proceeds from issue of shares 116,400,000 3,00,33,000
Net Cash from Financing Activities (C) 114,775,734 33,187,106

Net Increase/(Decrease) in Cash and Cash Equivalents (A+B+C) 52,119,670 8,482,516


Cash & Cash Equivalents at Beginning of Period 8,644,338 1,61,822

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Annual Report 2017-18

Cash & Cash Equivalents at End of Period 60,764,008 8,644,338


Cash & Cash Equivalents comprise:
Cash in Hand 290,680 1,49,295’
Balance with Banks in Current A/c 3,072,556 79,35,952
Balance with Banks in Deposit A/c 57,400,773 559,091
As per our report of even date
For Ramasamy Koteswara Rao and Co LLP, By order of the Board
Chartered Accountants
Firm Regn No. 010396S/S200084 Sd/-
Sd/- Tekulapalli Sanjay Reddy
(CV Koteswara Rao) Chairman & Managing Director
Partner
Membership No-028353 Sd/- Sd/- Sd/-
Place: Hyderabad Boda Narsing Rao Sushma Barla Anil Kumar Pallala
Date: 29.05.2018 Chief Financial Officer Company Secretary Whole Time Director

65
Annual Report 2017-18
NOTES FORMING PART OF FINANCIAL STATEMENTS
Note 1
Share capital
2017-18 2016-17
Share Capital
Number Amount Number Amount
Authorised
Equity Shares of ` 10/-each 5,000,000 50,000,000 550,000 5,500,000
Issued, Subscribed & Paid up
Equity Shares of ` 10/- paid up each 4,641,500 46,415,000 524,500 5,245,000

Total 4,641,500 46,415,000 524,500 5,245,000

Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting
period
2017-18 2016-17
Particulars
Number Amount Number Amount
Shares outstanding at the beginning of the 524,500 5,245,000 418,000 4,180,000
year
Shares Issued during the year 970,000 9,700,000 106,500 1,065,000
Bonus Shares Issued during the year 3,147,000 31,470,000
Shares bought back during the year - -
Shares outstanding at the end of the year 4,641,500 46,415,000 524,500 5,245,000

Shares in the company held by each shareholder holding more than 5 percent shares
2017-18 2016-17
Name of Shareholder No. of Shares held % of Holding No. of Shares % of
held Holding
T. Sanjay Reddy 1,440,000 31.02% 240,000 45.76%
Korrapati Ranganathasai 701,200 15.11% 100,000 19.07%
Ektha.com Pvt Ltd 745,500 16.06% 106,500 20.31%
Anil Kumar Pallala 300,000 6.46% 50,000 9.53%

Note 2
Reserves and surplus
Particulars 2017-18 2016-17
A. Securities Premium Account
Opening Balance 32,868,000 3,900,000
(+) Addition During the Year 106,700,000 28,968,000
(-) Bonus During the Year 31,470,000 -
(-) IPO Expenditure Written off 4,820,387
Closing Balance 103,277,613 32,868,000

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Annual Report 2017-18

B. Surplus
Opening Balance 3,352,125 736,778
(+) Current Year Transfer 9,406,499 2,615,348
(-) Written Back in Current Year -
Closing Balance 12,758,624 3,352,125
Total 116,036,237 36,220,125

Note 3
Long Term Borrowings
Particulars 2017-18 2016-17
(a) Secured loans
(i) From Banks - 8,796,902
Less: Current Maturities of Long Term Borrowings - (3,878,022)
(b) Unsecure loans
(i) From Related Parties
Loan From Director 4,036,000 -
Total 4,036,000 4,918,880

Note 4
Short Term Borrowings
Particulars 2017-18 2016-17
(a) Secured loans
(i) From Banks - -
Total - -

Note 5
Trade payables
Particulars 2017-18 2016-17
Sundry Creditors 2,029,892 1,200,275
Total 2,029,892 1,200,275

Note 6
Short Term Provisions
Particulars 2017-18 2016-17

Provision for Current Tax 2,243,691 710,985


Total 2,243,691 710,985

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Annual Report 2017-18
Note 7
Other Current Liabilities
Particulars 2017-18 2016-17
(i) Statutory Liabilities 442,841 45,564
(ii) Audit fee Payable 169,500 119,500
(iii) Advance from Customers - -
(iv) Others Payables 1,323,071 1726976
(v) Current Maturities of Long Term Borrowings - 3878022

Total 1,935,411 5,770,063

Note 9
Non-Current Investment
Particulars 2017-18 2016-17
Investment in Unquoted Shares
Long Term Investment 80,000 80,000
Investments in Partnership Firms
Long Term Investment in LLP s 13,244,953 2,937,921

Total 13,324,953 3,017,921

Note 10
Long Term Loans & Advances

Particulars 2017-18 2016-17

Inter Corporate Deposits 9,772,575 10,972,575


Other Advances 2,700,000 2,530,000
Deposits
Rental Deposit 1,560,000 1,500,000
Other Deposit 46,018 27,500
Deposits with Stock Exchange Authorities 1,512,000 -
Sub Total 3,118,018 1,527,500
Total 15,590,593 15,030,075

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Annual Report 2017-18

Note 11
Trade Receivables
Particulars 2017-18 2016-17
(a) Trade receivables outstanding for a period

less than 6 months 26,024,443 2,197,800


Total 26,024,443 2,197,800

Note 12
Cash and cash equivalents
Particulars 2017-18 2016-17
(a) Balances with banks
-Current Account 3,072,556 7,935,952
-In Fixed Deposits 57,400,773 559,091
(b) Cash in hand 290,680 149,298
Total 60,764,008 8,644,341

Note 13
Short-term loans and advances
Particulars 2017-18 2016-17
(i) Advance to Employees 83,000 14,182
(ii) Advance to Vendors 1,519,540 134,741
(iii) Other Loans & Advances 500,000 585,180
Total 2,102,540 734,103

Note 14
Other Current Assets
Particulars 2017-18 2016-17
(i) Balances with revenue authorities 4,685,290 332,452
(ii) GST (Net off) 871,001 -
(iii) Mat Credit Entitlement 351,647 120,115
Total 5,907,938 452,567

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Annual Report 2017-18
Note 15
Revenue from operations
Particulars 2017-18 2016-17
Revenue from Sale of Services
Domestic Services 6,27,27,645 57,88,005
Foreign Services 2,12,80,326 2,42,05,281
Total 8,40,07,971 2,99,93,287

Note 16
Other Income
Particulars 2017-18 2016-17
Interest Income on Fixed Deposit 953,700 30,859
Interest Income Others - 178,250
Profit on Sale Of Fixed Assets - 21,063
Total 953,700 230,172

Note 17
Direct Cost
Particulars 2017-18 2016-17
Digital Marketing Expenses 36,582,966 6,680,387
Professional Charges 2,092,719 133,994
PRO's Charges 422,400 468,129
Voice Chat Expenses 1,455,578 293,000
Total 40,553,663 7,575,510

Note 18
Employee Benefits Expense
Particulars 2017-18 2016-17
Salaries and incentives 6,278,490 5,481,514
Directors Remuneration 9,000,000 5,700,000
Staff welfare expenses 230,379 223,622
Total 15,508,869 11,405,136

Note 19
Finance Cost
Particulars 2017-18 2016-17
Interest Paid on Loans 741,386 357,573
Total 741,386 357,573

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Annual Report 2017-18
Note 20
Other expenses
Particulars 2017-18 2016-17
Electricity Charges 652,418 551,073
Administration Expenses 417,923 512,924
Office Expenses 713,618 438,692
Tours, Travelling and Conveyance Expenses 694,878 361,165
Registration Filing Fees 548,897 53,000
Printing & Stationery 95,567 91,351
Rent 3,267,700 2,356,376
Service Charges (Exp) 3,536,111 -
Postage, Telephone and Internet 77,238 15,465
Foreign Exchange Loss - 129,525
Processing Charges - 20,584
Bank Charges 13,906 19,180
Business Promotion 88,563 204,877
Rates and Taxes 37,227 21,793
Commission Charges 117,000 43,400
Repairs & Maintenance 71,400 242,835
Loss on Sale Of Fixed Assets 2,159,286 6,931
Audit fee 50,000 55,000
Other Misc Expenses 180,780
Membership Fees 30,600 -
Interest on late payment of taxes 142,235 -
Vehicle Maintenance 209,723 -
Total 13,105,070 5,124,169

Details of Deferred Tax For the FY 2017-18


WDV of Assets under Companies act 29,943,601
WDV of Assets under Income Tax Act 25,417,854
Timing Differences 4,525,747
Preliminary Expenses -
Deferred Tax Liability 1,351,841
Deferred Tax Already Provided 995,682
Deferred Tax To Be Provided in P&L 356,159

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Annual Report 2017-18
Note 8 Fixed Assets
Amount in Rs
Gross Block Accumulated Depreciation Net Block
Balance as Additions Disposals Balance as Balance as Depreciation On Balance as Balance as Balance as
Fixed Assets
SL. at 1st April at 31st at 1st charge for disposals at 31st at 31st at 31st
No 2017 March April 2017 the year March March March
2018 2018 2018 2017
Tangible Assets
1 2,563,205 1,708,841 - 4,272,046 1,669,755 565,785 - 2,235,540 2,036,506 893,450
Computer
2 Furniture’s and 1,779,092 17,000 - 1,796,092 144,895 170,958 - 315,853 1,480,239 1,634,197
Fixtures
3 Office 567,156 69,000 - 636,156 270,998 113,943 - 384,941 251,215 296,158
Equipment's
4 Recording 59,000 106,975 165,975 14,132 10,226 - 24,358 141,617 44,868
Equipment
5 12,485,556 - 6,258,541 6,227,015 420,911 1,014,580 746,501 688,990 5,538,025 12,064,645
Vehicles
6 - 2,793,596 - 2,793,596 - 101,794 - 101,794 2,691,802 -
Studio
17,454,009 4,695,412 6,258,541 15,890,880 2,520,691 1,977,286 746,501 3,751,476 12,139,404 14,933,318
Total
Intangible Assets
1 Software's 738,968 427,608 1,166,576 630,838 379,250
2 Trademark 62,500 - 62,500 359,718 176,019 - 535,737 35,705 39,850
3 Copyrights 2,470,145 11,513,654 13,983,799 22,650 4,145 - 26,795 13,366,561 2,359,708
4 Content 6,136,156 - 6,136,156 110,437 506,801 - 617,238 3,771,093 4,384,709
Development
Total 9,407,769 11,941,262 - 21,349,031 1,751,447 613,616 - 2,365,063 17,804,198 7,163,517
1 Capital Work in 2,887,370 17,502,625 - 20,389,995 20,389,995 2,887,370
- - - -
progress

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Annual Report 2017-18

COMPUTATION OF DEPRECIATION U/S 32 OF INCOME TAX ACT, 1961


Rate of WDV Additions Deletions TOTAL Depreciation WDV
DESCRIPTION Dep As At Before After AS AT
01/04/2017 9/30/2017 30/09/2017 31/03/2018
% Rs. Rs. Rs. Rs. Rs. Rs. Rs.

10% BLOCK
1. Furniture & Fittings 10% 1,565,477 - 17,000 - 1,582,477 157,398 1,425,080
2. Studio 10% - 2,793,596 - - 2,793,596 279,360 2,514,236

15% BLOCK
1. Air Conditioner 15% 60,553 - 60,553 9,083 51,470
2. Vehicles 15% 11,105,737 3,940,293 7,165,444 1,665,861 5,499,584
3. Office Equipments 15% 191,183 7,500 61,500 - 260,183 34,415 225,768

25% BLOCK
1. Trademark 25% 20,241 - 20,241 5,060 15,181
2. Copy Rights 25% 2,014,521 2,343,870 9,169,784 - 13,528,175 2,235,821 11,292,354
3,087,283 - 3,087,283 771,821 2,315,462
3. Content Development 25%

40% Block
1. Computers & Softwares 40% 715,811 628,489 1,507,960 - 2,852,260 839,312 2,012,948
2. Recording Software 40% 2,643 106,975 - - 109,618 43,847 65,771

TOTAL 18,763,450 5,880,430 10,756,244 3,940,293 31,459,831 6,041,977 25,417,854

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Annual Report 2017-18
NOTES FORMING PART OF THE STANDALONE FINANCIAL STAEMENTS
A. Significant Accounting Policies– (AS-1):

1. Company Overview:

Silly Monks Entertainment Limited (Formerly Known as Silly Monks Entertainment Private limited)
Limited Company engaged in digital marketing solutions to businesses, agencies and online
publishers. The Company connects Advertisers with their Audience across any form of Digital Media,
using its massive local presence to deliver appropriate messages to the right audience, through the
most relevant Digital channels. The Company was incorporated on 20th September, 2013 in
Hyderabad and listed on NSE (MSME Segment) dated 18th January, 2018.

2. Basis of Preparation of Financial Statements:

The Financial statements have been prepared under the historical cost convention on accrual basis.
The mandatory applicable accounting standards in India and the provisions of the companies Act,
2013 have been followed in preparation of these financial statements.
All assets and liabilities have been classified as current or non-current as per the operating cycle
criteria set out in the Revised Schedule III to the Companies Act, 2013.
3. Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect
the reported amount of assets and liabilities on the date of the financial statements and the
reported amount of revenues and expenses during the reporting period. Difference between the
actual results and estimates are recognized in the period in which the results are known /
materialized.
4. Revenue Recognition:

Digital Marketing Services:


a) The Contracts between the Company and its Customers are either time or material
contracts or fixed price contracts.
b) Revenue from fixed price contracts is recognized according to the milestones achieved
as specified in the contracts on the proportionate-completion method based on the
work completed. Any anticipated losses expected upon the contract based on the work
completed. Any anticipated losses expected upon the contract completion are
recognized immediately. Changes in job performance, condition and estimates
profitability may result in revisions and corresponding revenues and cost are recognized
in the period in which such changes are identified.
c) In respect of time and material contract, revenue is recognized in the period in which
the services are provided.
d) Revenue is recognized to the extent that it is probable that the economic benefits will
flow to the company and revenue can be reliably measured.
e) Interest income is recognized on a time proportion basis taking into account the
amount outstanding and the applicable rates.

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Annual Report 2017-18

5. Fixed Assets:
Tangible Assets:
Fixed assets are carried at cost of acquisition less accumulated depreciation. Cost includes non-
refundable taxes, duties, freight, borrowing costs and other incidental expenses related to the
acquisition and installation of the respective assets.
Intangible Assets:
Intangible assets are recorded at consideration paid for acquisition and other direct costs that can
be directly attributed, or allocated on a reasonable and Consistent basis, to creating, producing
and making the asset ready for its intended use.
6. Depreciation:
Depreciation on fixed assets is provided on straight-line method using the lives of assets given in
Schedule II of the Companies Act, 2013.
7. Tax Expense:
Income tax expense comprises current tax, deferred tax, Minimum alternative Tax.

Current tax
The current change for income tax is calculated in accordance with the relevant tax regulations
applicable to the company.
Deferred tax
Deferred tax charge or credit reflects the tax effects of timing differences between accounting
income and taxable income for the year. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates that have enacted or substantially
enacted by the balance sheet date. Deferred tax asset is recognized only to the extent there is
reasonable certainty that the assets can be realized in future.
Minimum Alternative Tax (MAT) credit
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future
economic benefits in the form of adjustments of future income tax liability, is considered as an
asset if there is convincing evidence that the company will pay normal tax after the tax holiday
period. Accordingly, it is recognized as an asset in the balance sheet when it is probable that the
future economic benefit associated with it will flow to the company and asset can be measured
reliably
8. Earnings Per Share:

The earnings considered in ascertaining the companies earning per share comprise
net profit after tax and includes the post-tax effect of any extra-ordinary/exceptional
item is considered. The number of shares used in computing basic earnings per
share is the weighted average number of shares outstanding during the year.

The no. of shares used in computing diluted earnings per share comprises the weighted
average no. of shares considered for deriving basic earnings per share and also the
weighted average no. of equity shares that could have been issued on the conversion
of all dilutive potential equity shares.

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Annual Report 2017-18

Particulars 2017-18 2016-17


Net Profit/(Loss) attributable to Equity Share 94,06,499 26,15,348
Holders
Opening No of shares 5,24,500 4,18,000
Shares issued during the year 9,70,000 1,06,500
Bonus Shares Issued during the year 31,47,000 31,47,000

Total no of Equity shares 46,41,500 36,71,500


Weighted Average Number of Equity Shares 38,70,815 35,95,100
Basic and Diluted Earnings per Share 2.43 0.73

9. Other Notes to Accounts and Disclosures:

a) Related party disclosures (AS-18):

Related parties where control exists or where significant influence exists and with whom
transactions have taken place during the current and previous

Key Management Personnel represented on the Board


• Tekulapalli Sanjay Reddy
• Anil Kumar Pallala
• Swathi Reddy
• Sreenivasa Reddy Musani
• Katragadda Rajesh
• Prasad Rao Kalluri

Enterprises where principal shareholders/ directors have control or significant influence


(“Significant interest entities”)
• Dream Boat Entertainment Pte Ltd
• Events Monks Entertainment LLP
• Monkstar Music LLP

The following is a summary of significant related party transactions:

a) Particulars of Transactions with related parties:

Sl. Name of the Company/ Relation with the Nature of During the During the
No. Party Party Transaction Current Previous
Year (In Rs.) Year (In Rs.)
1 Dream Boat Investment Held in Service 1,95,92,826 1,97,94,934
Entertainment Pte Ltd Foreign Entity Income

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Annual Report 2017-18
2 Dream Boat Investment Held in Capital 80,000 80,000
Entertainment Pte Ltd Foreign Entity investment
3 Events Monks Investment held in Service 20,06,005 0
Entertainment LLP LLP Charges
Expense
4 Monkstar LLP Investment held in Service 33,08,887 0
LLP Charges
Expense
5 Events Monks Investment held in Capital 30,04,656 14,73,026
Entertainment LLP LLP investment
6 Monkstar LLP Investment held in Capital 1,02,40,297 14,64,896
LLP investment
7 Tekulapalli Sanjay Reddy Chairman & Salary 60,00,000 36,00,000
Managing Director
8 Anil Kumar Pallala Whole Time Director Salary 30,00,000 21,00,000
9 Tekulapalli Sanjay Reddy Chairman & Rent Paid Nil 3,03,187
Managing Director
10 Swathi Reddy Director Rent Paid Nil 3,03,187
11 Ektha India Pvt Ltd Significant Control by Loan given Nil 20,00,000
Shareholder
12 Ektha India Pvt Ltd Significant Control by Fixed asset Nil 15,00,000
Shareholder Purchased

b) The Details of Utilisation of IPO Proceeds

The Details of Utilisation of IPO Proceeds - Rs. 1118.39 Lakhs


(Net off IPO Related Expenses) are as Follows
Amt in Lakhs
Particulars As Per Unutilised Upto Unutilised Upto
Prospectus 31-03-2018 31-03-2018
Expanding Content Portfolio 830.50 504.11 326.39
Setting Up Branches 245.61 - 245.61
General Corporate Purposes 42.28 42.28 -
Total 1,118.39 546.39 572.00

Unutilised amounts of the IPO proceeds as at 31st March, 2018 have been temporarily parked in fixed
deposit with bank.

c) Provisions, Contingent Liabilities and Contingent Assets: – (AS-29):


Contingent Liabilities:

i) Guarantees and letters of credit: Nil


ii) Bank Guarantees: Rs. Nil

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Annual Report 2017-18

d) General Notes to the financial statements:

The Previous year’s figures have been regrouped and recast wherever necessary to bring them in line with the
current year’s figures. All the amounts presented in financial statements are in rupees except basic and diluted
EPS & unless specified.

For Ramasamy Koteswara Rao and Co LLP, By order of the Board


Chartered Accountants
Firm Regn No. 010396S/S200084 Sd/-
Sd/- Tekulapalli Sanjay Reddy
(CV Koteswara Rao) Chairman & Managing Director
Partner
Membership No-028353 Sd/- Sd/- Sd/-
Place: Hyderabad Boda Narsing Rao Sushma Barla Anil Kumar Pallala
Date: 29.05.2018 Chief Financial Officer Company Secretary Whole Time Director

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Annual Report 2017-18
AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL STATEMENTS

To the Members of
SILLY MONKS ENTERTAINMENT LIMITED
(Formerly Known as SILLY MONKS ENTERTAINMENT PRIVATE LIMITED)

Report on the Consolidated Financial Statements

We have audited the accompanying Consolidated financial statements of SILLY MONKS ENTERTAINMENT
LIMITED ( Formerly Known as SILLY MONKS ENTERTAINMENT PRIVATE LIMITED (“the Holding Company”),
its subsidiaries (‘the Holding Company and its Subsidiaries together referred to as the group”), which comprise
the consolidated Balance Sheet as at March 31, 2018, the Statement of consolidated Profit and Loss, including
the and consolidated Cash Flow Statement for the year then ended, and a summary of significant accounting
policies and other explanatory information (together hereinafter referred to as “Consolidated financial
statements”).

Management’s Responsibility for the consolidated Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies
Act, 2013 (“the Act”) with respect to the preparation of these Consolidated financial statements that give a
true and fair view of the financial position, financial performance including and consolidated cash flows in
accordance with accounting principles generally accepted in India, as specified under section 133 of the Act.,
read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Indian Accounting Standards)
Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and prudent; and the design, implementation and
maintenance of adequate internal financial control that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to the preparation and presentation of the Consolidated
financial statements that give a true and fair view and are free from material misstatement, whether due to
fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We
have taken into account the provisions of the Act, the accounting and auditing standards and matters which
are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit of the consolidated financial statements in accordance with the Standards on
Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the
Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to
the Company’s preparation of the consolidated financial statements that give a true and fair view in order to

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Annual Report 2017-18
design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the
Company’s Directors, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the consolidated financial statements.

Opinion
In our opinion and to the best of our information and according to the explanations given to us, the
consolidated financial statements give the information required by the Act in the manner so required and give
a true and fair view in conformity with the accounting principles generally accepted in India, of the state of
consolidated affairs of the Company as at March 31, 2018, its consolidated Profit and consolidated cash flows
for the year ended on that date.

Other Matters
The financial statements of subsidiaries have been audited by other auditors whose financial statements
reflects total assets of Rs.5,22,78,328/- as at 31st March 2018 total revenues of Rs.9,57,50,048/- and total net
profits of Rs. 92,23,118/- and whose reports have been furnished to us and our opinion is based solely on
the reports of the other auditors.

Our opinion is not qualified in respect of the above matter.

Report on Other Legal and Regulatory Requirements

1. As required by section 143 (3) of the Act, we report, to the extent applicable, that:

a) We have sought and obtained all the information and explanations which to the best of our
Knowledge and belief were necessary for the purpose of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company so far
as it appears from our examination of those books;

c) The Consolidated Balance Sheet, Statement of Consolidated Profit and Loss and Consolidated Cash
Flow Statement dealt with by this Report are in agreement with the books of account;

d) In our opinion, the aforesaid Consolidated financial statements comply with the Accounting
Standards specified under section 133 of the Act, read with Rule 7 of the Companies
(Accounts)Rules, 2014 and the Companies (Indian Accounting Standards) Rules, 2015, as
amended;

e) On the basis of written representations received from the directors of the Holding Company as on
March 31, 2018 taken on record by the Board of Directors of Holding Company none of the
directors are disqualified as on March 31, 2018 from being appointed as a director in terms of
Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the
Company and the operating effectiveness of such controls, refer to our separate Report in
“Annexure” to this report;

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Annual Report 2017-18

g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule
11of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financial position.
ii. The Company did not have any long-term contracts including derivative contracts for which
there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company.

For Ramasamy Koteswara Rao and Co LLP


Chartered Accountants
Firm Registration No: 010396S/S200084

Sd/-
Place: Hyderabad (C V Koteswara Rao)
Date: 29-05-2018 Partner
Membership No-028353

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Annual Report 2017-18

ANNEXURE TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE CONSOLIDATED FINANCIAL
STATEMENTS OF SILLY MONKS ENTERTAINMENT LIMITED (Formerly Known as SILLY MONKS
ENTERTAINMENT PRIVATE LIMITED)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies
Act, 2013 (“the Act”)

To the Members of SILLY MONKS ENTERTAINMENT LIMITED (Formerly Known as SILLY MONKS
ENTERTAINMENT PRIVATE LIMITED)

We have audited the internal financial controls over financial reporting of SILLY MONKS ENTERTAINMENT
LIMITED (Formerly Known as SILLY MONKS ENTERTAINMENT PRIVATE LIMITED) (“the holding company”) and
its subsidiaries (‘the holding company and its subsidiaries together referred to as the group”) as of March 31st
, 2018 in conjunction with our audit of the Consolidated financial statements of the company for the year
ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s Management is responsible for establishing and maintaining internal financial controls based
on the internal control over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include
the design, implementation and maintenance of adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Company’s
policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial information, as
required under the Companies Act, 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing as specified
under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial
controls and, both issued by the Institute of Chartered Accountants of India.

Those Standards and the Guidance Note require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether adequate internal financial controls over
financial reporting was established and maintained and if such controls operated effectively in all material
respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial
controls system over financial reporting and their operating effectiveness. Our audit of internal financial
controls over financial reporting included obtaining an understanding of internal financial controls over
financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk. The procedures selected depend

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Annual Report 2017-18
on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting


A company's internal financial control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. A company’s internal financial
control over financial reporting includes those policies and procedures that

(1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and
directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use,
or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting


Because of the inherent limitations of internal financial controls over financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to error or
fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial control over financial
reporting may become inadequate because of changes in conditions, or that the degree of compliance with
the policies or procedures may deteriorate.

Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over
financial reporting and such internal financial controls over financial reporting were operating effectively as at
March 31, 2018, based on the internal control over financial reporting criteria established by the Company
considering the essential components of internal control stated in the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For Ramasamy Koteswara Rao and Co LLP


Chartered Accountants
Firm Registration No: 010396S/S200084

Sd/-
Place: Hyderabad (C V Koteswara Rao)
Date: 29-05-2018 Partner
Membership No-028353

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Annual Report 2017-18
CONSOLIDATED BALANCE SHEET
SILLY MONKS ENTERTAINMENT LIMITED
(FORMERLY KNOWN AS SILLY MONKS ENTERTAINMENT PRIVATE LIMITED)
Flat No. 301, EKTHA PEARL, 2-17-89, B P RAJU MARG, KOTHAGUDA,
KONDAPUR,HYDERABAD,TELANGANA 500084
Consolidated Balance Sheet as at March 31, 2018
Particulars Note No. 2017-18 2016-17
I EQUITY AND LIABILITIES
1 Shareholders’ funds
Share capital 1 4,64,15,000 52,45,000
Reserves and surplus 2 13,95,41,982 5,00,90,657
2 Minority Interest (4,66,810) (83,030)
3 Non-current liabilities 3 40,45,176 49,28,030
Long-term borrowings 13,51,841 9,95,682
Deferred Tax Liability
4 Current liabilities -
4 -
Short Term Borrowings 32,32,883
5 85,65,140
Trade payables 96,42,480
6 1,47,41,836
Other current liabilities 23,78,489
7 8,29,179
Short Term Provisions
TOTAL 20,61,41,041 8,53,12,494
II ASSETS
1 Non-Current assets
Fixed assets
i) Tangible assets 8 1,21,39,404 1,49,33,318
ii) Intangible Assets 2,24,66,366 1,21,48,015
iii) Capital Work-in-Progress 2,15,56,713 40,54,088 -
Non-current investments - 1,50,30,075
Long-term loans and advances 9 1,55,90,593

2 Current assets 1,13,77,493


Trade receivables 10 4,15,80,732 2,57,41,108
Cash and cash equivalents 11 7,50,66,934 14,35,714
Short-term loans and advances 12 1,09,88,648 4,72,568
Other Current assets 13 67,51,650
TOTAL 20,61,41,041 8,53,12,494
Significant Accounting Policies A
As per our report of even date attached
For Ramasamy Koteswara Rao and Co LLP, By order of the Board
Chartered Accountants
Firm Regn No. 010396S/S200084 Sd/-
Sd/- Tekulapalli Sanjay Reddy
(CV Koteswara Rao) Chairman & Managing Director
Partner
Membership No-028353 Sd/- Sd/- Sd/-
Place: Hyderabad Boda Narsing Rao Sushma Barla Anil Kumar Pallala
Date: 29.05.2018 Chief Financial Officer Company Secretary Whole Time Director

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Annual Report 2017-18
CONSOLIDATED STATEMENT OF PROFIT & LOSS ACCOUNT
SILLY MONKS ENTERTAINMENT LIMITED
(FORMERLY KNOWN AS SILLY MONKS ENTERTAINMENT PRIVATE LIMITED)
Flat No. 301, EKTHA PEARL, 2-17-89, B P RAJU MARG, KOTHAGUDA,
KONDAPUR,HYDERABAD,TELANGANA 500084
Statement of Consolidated Profit and Loss Account for the Year Ended 31st March, 2018
Particulars Note No. 2017-18 2016-17
I Revenue from operations 13 15,66,29,082 11,95,78,819
II Other income 14 9,53,700 6,17,675

Total Revenue 15,75,82,782 12,01,96,494


III Expenses:

Direct Cost 15 10,46,15,100 8,28,47,080


Employee benefits expense 16 1,55,08,869 1,14,05,136
Finance Cost 17 7,41,386 3,57,573
Depreciation and amortization expense 18 38,11,792 27,09,825
Other expenses 19 1,17,44,588 70,78,779
IV Total expenses
13,64,21,734 10,43,98,393
V Profit before tax (II-III)
2,11,61,047 1,57,98,101
Tax expense:
(a) Current tax 23,78,489 8,29,179
(b) Deferred tax 3,56,159 4,22,317
(c) MAT Credit Entitlement (2,31,532) (17,423)

VI Profit (Loss) for the period (V-VI) 1,86,57,932 1,45,64,028

Profit attributable to Minority (3,83,780) 89,930


Profit attributable to Owners 1,90,41,712 1,44,74,098

VII Earnings per Equity Share:


1) Basic 4.92 4.03
2) Diluted 4.92 4.03

Significant Accounting Policies

As per our report of even date attached


For Ramasamy Koteswara Rao and Co LLP, By order of the Board
Chartered Accountants
Firm Regn No. 010396S/S200084 Sd/-
Sd/- Tekulapalli Sanjay Reddy
(CV Koteswara Rao) Chairman & Managing Director
Partner
Membership No-028353 Sd/- Sd/- Sd/-
Place: Hyderabad Boda Narsing Rao Sushma Barla Anil Kumar Pallala
Date: 29.05.2018 Chief Financial Officer Company Secretary Whole Time Director

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Annual Report 2017-18
CONSOLIDATED CASH FLOW STATEMENT

SILLY MONKS ENTERTAINMENT LIMITED


(FORMERLY KNOWN AS SILLY MONKS ENTERTAINMENT PRIVATE LIMITED)
Flat No. 301, EKTHA PEARL, 2-17-89, B P RAJU MARG, KOTHAGUDA,
KONDAPUR,HYDERABAD,TELANGANA 500084
Statement of Profit and Loss Account for the Year Ended 31st March, 2018
Particulars 2017-18 2016-17
A. CASH FLOW FROM OPERATING ACTIVITIES:
Net Profit before Tax 2,11,61,047 1,64,30,433
Adjustments for:
Depreciation/Amortisation 38,11,792 27,09,825
IPO Expenditure written off -48,20,387 -
Loss on Sale of Fixed Assets 21,59,286 -
Interest paid 7,41,386 3,57,573
Operatine Profit Before Working Capital Changes 2,30,53,125 1,94,97,831
Adjustments for Changes in Working Capital:
Increase/(Decrease) in Trade Payables (53,32,257) (7,07,967)
Increase/(Decrease) in Other Current Liabilities (50,99,355) 1,26,84,380
Increase/(Decrease) in Other Long Term Liabilities - (33,94,289)
Increase/(Decrease) in Current Investments - -
(Increase)/Decrease in Inventories - -
(Increase)/Decrease in Trade Receivables (3,02,03,239) (17,28,692)
(Increase)/Decrease in Short Term Loans & Advances (1,01,12,026) (10,86,967)
(Increase)/Decrease in Other Current Assets (61,58,967) (1,16,363)
Increase/(Decrease) in Long Term Investments - -
Increase/(Decrease) in Long Term Loans & Advances (5,60,518) (1,44,70,984)
Increase/(Decrease) in Other Non Current Assets - (17,423)

Cash Generated from Operating Activities (3,44,13,237) 1,06,59,545


Taxes paid (5,97,648) (2,00,740)
Net Cash from Operating Activities (A) (3,50,10,885) 1,04,58,785
B. CASH FLOW FROM INVESTING ACTIVITIES:
(Purchase)/ Sale of Fixed Assets (3,43,50,894) (1,88,57,418)
(Purchase)/ Sale of Fixed Assets 33,52,754 -
Net Cash from Investing Activities (B) (3,09,98,140) (1,88,57,418)

C. CASH FLOW FROM FINANCING ACTIVITIES:


Proceeds from/ (Repayment of) Borrowings (8,82.854) 35,11,491
Proceeds from Share Capital (including Share Premium) 11,64,00,000 3,00,33,000
Interest paid (7,41,386) (3,57,573)
Addition/(withdrawal) of Capital by Minority - -

Net Cash from Financing Activities (C) 11,47,75,760 3,31,86,919

4,87,66,734 2,47,88,286
Cash & Cash Equivalents at Beginning of Period 2,63,00,200 15,11,914

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Annual Report 2017-18
Cash & Cash Equivalents at End of Period 7,50,66,934 2,63,00,200
Cash & Cash Equivalents comprise:
Cash in Hand 6,17,512 2,55,078
Balance with Banks in Current A/c 1,70,48,650 2,54,86,030
Balance with Banks in Deposit A/c 5,74,00,773 5,59,091

As per our report of even date attached

For Ramasamy Koteswara Rao and Co LLP, By order of the Board


Chartered Accountants
Firm Regn No. 010396S/S200084 Sd/-
Sd/- Tekulapalli Sanjay Reddy
(CV Koteswara Rao) Chairman & Managing Director
Partner
Membership No-028353 Sd/- Sd/- Sd/-
Place: Hyderabad Boda Narsing Rao Sushma Barla Anil Kumar Pallala
Date: 29.05.2018 Chief Financial Officer Company Secretary Whole Time Director

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Annual Report 2017-18
NOTES FORMING PART OF FINANCIAL STATEMENTS
Note 1
Share capital
2017-18 2016-17
Share Capital
Number Amount Number Amount
Authorised
Equity Shares of ` 10/-each 5,00,000 5,00,00,000 550,000 55,00,000
Issued, Subscribed & Paid up
Equity Shares of ` 10/- paid up each 46,41,500 4,64,15,000 5,24,500 52,45,000

Total 46,41,500 4,64,15,000 5,24,500 52,45,000

Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting
period
2017-18 2016-17
Particulars
Number Amount Number Amount
Shares outstanding at the beginning of the
year 5,24,500 52,45,000 418,000 4,180,000
Shares Issued during the year 9,70,000 97,00,000 106,500 1,065,000
Bonus shares Issued during the year 31,47,000 3,14,70,000 - -
Shares outstanding at the end of the year 46,41,500 4,64,15,000 524,500 5,245,000

Shares in the company held by each shareholder holding more than 5 percent shares
2017-18 2016-17
Name of Shareholder No. of Shares held % of Holding No. of Shares % of
held Holding
T. Sanjay Reddy 14,40,000 3.01% 240,000 4.58%
Sai Korrapati 7,01,200 1.51% 100,000 1.91%
Ektha.com Pvt Ltd 7,45,500 1.61% 106,500 2.03%
Anil Kumar Pallala 3,00,000 0.65% 50,000 0.95%

a) The Company has issued only one class of equity shares having a par value of Rs.10/- per share.
Each holder of share is entitled to one vote per share. The company does not declared any
dividends.

Note 2
Reserves and surplus
Particulars 2017-18 2016-17
A. Securities Premium Account
Opening Balance 3,28,68,000 39,00,000
Add: Securities Premium During the Year 10,67,00,000 2,89,68,000

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Annual Report 2017-18
(-) Bonus During the Year 3,14,70,000 -
(-) IPO Expenditure Written off
Net Profit/(Loss) for the period - -
Closing Balance 10,32,77,613 3,28,68,000

B. Surplus
Opening balance 1,72,22,657 21,61,472
(+) Net Profit/(Net Loss) For the current year 1,90,41,712 1,44,74,098
Excess Loss - 5,87,088
Closing Balance 3,62,64,369 1,72,22,657

TOTAL 13,95,41,982 5,00,90,657

Note 3
Long Term Borrowings
Particulars 2017-18 2016-17
- Secured Loans
Loan From Bank - 49,18,880
- 49,18,880
- Un Secured Loans
From Related Parties 40,45,176 9,150
TOTAL 40,45,176 49,28,030

NOTE 4
Short Term Borrowings
Particulars 2017-18 2016-17

(a) Secured loans


(i) From Banks - -

NOTE 5
Trade payables
Particulars 2017-18 2016-17
Sundry Creditors Others 32,32,883 85,65,140

TOTAL 32,32,883 85,65,140

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Annual Report 2017-18
NOTE 6
Short Term Provisions
Particulars 2017-18 2016-17
Provision for Current Tax 23,78,489 8,29,179

TOTAL 23,78,489 8,29,179

NOTE 7
Other Current Liabilities
Particulars 2017-18 2016-17
(i) Audit fee Payable 1,94,500 1,39,500
(ii) Current Maturities of Long Term Borrowings - 38,78,022
(iii) Statutory Liabilities 10,27,674 62,160
(iv) Other Payables 84,20,306 1,06,62,154
TOTAL 96,42,480 1,47,41,836

Note 9
Long Term Loans & Advances
Particulars 2017-18 2016-17
Inter Corporate Deposits 97,72,575 1,09,72,575
Other Advances 27,00,000 25,30,000
Deposits
Rental Deposit 15,60,000 15,00,000
Other Deposit 46,018 27,500
Deposits with Stock Exchange Authorities 15,12,000 -
Sub Total 31,18,018 15,27,500
TOTAL 1,55,90,593 1,50,30,075

Note 10
Trade Receivables
Particulars 2017-18 2016-17
(a) Trade receivables outstanding for a period 4,15,80,732 1,13,77,493
less than 6 months

TOTAL 4,15,80,732 1,13,77,493

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Annual Report 2017-18
Note 11
Cash and cash equivalents
Particulars 2017-18 2016-17
(a) Balances with banks
-In Current Accounts 1,70,48,650 2,54,86,030
-In Fixed Deposit Accounts 5,74,00,773 5,59,091
(b) Cash in hand 6,17,512 2,55,078
TOTAL 7,50,66,934 2,63,00,199

Note 12
Short-term loans and advances
Particulars 2017-18 2016-17
Advance to Employees 83,000 14,182
Advance to Vendors 15,26,684 1,34,741
Other Loans & Advances 93,78,964 7,27,700
TOTAL 1,09,88,648 8,76,623

Note 13
Other Current Assets
Particulars 2017-18 2016-17
(i) Balances with revenue authorities 52,96,918 4,72,568
(ii) Mat Credit Entitlement 3,51,647 1,20,115
(iii) GST (Net off) 9,77,191 -
(iv) Other Advances & Receivables 1,25,894 -
Total 67,51,650 5,92,683

Note 14
Revenue From Operations
Particulars 2017-18 2016-17
Revenue from Sale of Services
- From Domestic 6,63,82,162 75,50,227
- From Export 9,02,46,920 11,20,28,592
TOTAL 15,66,29,082 11,95,78,819

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Annual Report 2017-18
Note 15
Other Income
Particulars 2017-18 2016-17
Interest Receivable on Fixed Deposit 9,53,700 30,859
Interest Income Others - 1,78,250
Profit on Sale of Fixed Assets - 21,063
Foreign Exchange Gain - 3,87,503
TOTAL 9,53,700 6,17,675

NOTE 16
Direct Cost
Particulars 2017-18 2016-17
Rupees Rupees
Event Management Expenses 60,86,672 7,79,500
Digital Marketing Expenses 8,23,17,793 6,22,16,616
Professional Charges 1,43,32,657 1,68,53,452
PRO’s Charges 4,22,400 4,68,129
Yup TV Expenses - 22,36,383
Voice Chat Expenses 14,55,578 2,93,000
Total 10,46,15,100 8,28,47,080

Note 17
Employee Benefits Expense
Particulars 2017-18 2016-17
Rupees Rupees
Salaries and incentives 62,78,490 54,81,514
Directors Remuneration 90,00,000 57,00,000
Staff welfare expenses 2,30,379 2,23,622
TOTAL 1,55,08,869 1,14,05,136

NOTE 18
Finance Cost
Particulars 2017-18 2016-17
Rupees Rupees
Interest Paid on Loans 7,41,386 3,57,573
TOTAL 7,41,386 3,57,573

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Annual Report 2017-18

NOTE 19
Other expenses
Particulars 2017-18 2016-17
Rupees Rupees
Audit Fee 78,600 65,000
Electricity Charges 6,52,418 5,51,073
Administration Expenses 21,37,056 5,12,924
Office Expenses 7,14,313 4,46,771
Tours, Travelling and Conveyance Expenses 8,97,384 3,91,090
Registration Filing Fees 5,48,897 53,000
Printing & Stationery 96,007 91,351
Rent 32,67,700 23,56,376
Postage, Telephone and Internet 77,238 15,465
Foreign Exchange Loss (46,400) 2,93,252
Processing Charges - 20,584
Bank Charges 1,47,777 45,008
Business Promotion 88,563 2,04,877
Rates and Taxes 27,227 21,793
Commission Charges 1,17,000 15,63,008
Repairs & Maintenance 71,400 2,42,835
Membership Fees 30,600 -
Other Expenses 6,79,522 1,97,441
Loss on Sale Of Vehicles 21,59,286 6,931
TOTAL 1,17,44,588 70,78,779

Details of Deferred Tax for the FY 2017-18


WDV of Assets under Companies act 22,096,835
WDV of Assets under Income Tax Act 18,763,450
Timing Differences 3,333,384
Preliminary Expenses -
Deferred Tax Liability 995,682
Deferred Tax Already Provided 573,365
Deferred Tax To Be Provided in P&L 422,317

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Annual Report 2017-18
Note 8
Amount in Rs
Gross Block Accumulated Depreciation Net Block
Fixed Assets Balance as Additions Disposals Balance as Balance as Depreciatio On Balance as Balance as Balance as at
SL. at 1st April at 31st at 1st n charge disposals at 31st at 31st 31st March
No 2017 March 2018 April 2017 for the year March March 2018 2017
2018
Tangible Assets
1 2,563,205 1,708,841 4272046.04 2235540 2036506 893450
Computer
2 Furniture’s and 1,779,092 17,000 - 1796092 1,669,755 565,785 315854 1480238 1634197
Fixtures
3 Office 5 67,156 69,000 - 636156 144,895 170,958 384940 251216 296158
Equipment's
4 Recording 59,000 106,975 - 165975 270,998 113,943 24358 141617 44868
Equipment
5 1 2,485,556 - 6227015 14,132 10,226 688990 5538025 12064645
Vehicles
6 2,793,596 6,258,541 2793596 420,911 1,014,580 746,501 101794 2691802 0
Studio
17,454,009 4,695,412 - 15890880.04 - 101,794 3751476 12139404 14933318
Total
Intangible 6,258,541 2,520,691 1,977,286 746,501
Assets
1 Software's 738,968 427,608 1166576 359,718 176,019 535738 630838 379250
2 Trademark 81,000 81000 30,149 5,411 - 35560 45440 50851
3 Copyrights 2,484,145 11,725,249 14209394 112,787 1,039,460 - 1152247 13057147 2371358
4 Content 1 1,330,581 - 11330581 2,425,779 613,616 - 3039394 8291187 8904802
Development
5 Goodwill 4 41,754 - 441754.4352 - 441754 441754
Total 14,634,694 12,152,857 26787551 2928433 1834506 4762939 22466366 12148015

1 Capital Work in 4,054,088 17,502,625 - 21,556,713 - - - - 21556713 4054088


progress

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Annual Report 2017-18

NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STAEMENTS

A. Significant Accounting Policies– (AS-1):

1. Corporate Information

Silly Monks Entertainment Limited (Formerly Known as Silly Monks Entertainment Private Limited) is
Limited Company engaged in digital marketing solutions to businesses, agencies and online publishers.
The Company connects Advertisers with their Audience across any form of Digital Media, using its
massive local presence to deliver appropriate messages to the right audience, through the most
relevant Digital channels. The Company was incorporated on 20th September, 2013 in Hyderabad and
listed on NSE (MSME Segment) dated 18th January, 2018.

2. Significant Accounting policies

a) Basis of Accounting and preparation of Consolidated financial statements:

The consolidation financial statement of the Company and its subsidiaries (together the Group) have
been prepared in accordance with the Generally Accepted Accounting Principles in India (India GAAP)
to Section 133 of Companies Act,2013 read with Rule 7 of the Companies (Accounts) Rules,2014 and
the relevant provisions of the Companies Act,2013 (“the 2013 Act”) as Applicable. The consolidated
financial statement has been prepared on accrual basis under the historical cost convention.

b) Principles of Consolidation:

The consolidated financial statements have been prepared on the following basis:

a) The financial statements of the Company and its subsidiary companies have been consolidated on
a line-by-line basis by adding together the book values of like items of assets, liabilities, income
and expenses, after fully eliminating intra-group balances, intra-group transactions and resulting
unrealized profits or losses on intra-group transactions as per Accounting Standard (AS) 21 -
"Consolidated Financial statements" specified under Section 133 of Companies Act, 2013.
b) In case of associates where the Company directly or indirectly through its subsidiaries holds 20%
or more of equity, Investments in associates are accounted under the equity method as per
Accounting Standard(AS) 23 - Accounting for Investments in Associates in Consolidated Financial
Statements" specified under Section 133 of Companies Act, 2013.

c) The financial statements of the subsidiaries, and the associates used in the consolidation are
drawn up to the same reporting date as that of the Company, i.e. March 31, 2018.

d) The excess of cost to the Group, of its investment in the subsidiaries over the Group's share of
equity is recognized in the consolidated financial statements as Goodwill and tested for
impairment annually. The excess of the Group's share of equity of the subsidiaries on the
acquisition date, over its cost of investment is treated as Capital Reserve. The Goodwill / Capital
reserve is determined separately for each subsidiary company and such amounts are not setoff
between different entities.

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Annual Report 2017-18

e) Minority interest in the net assets of the consolidated subsidiaries is identified and presented in
consolidated balance sheet separately from current liabilities and equity of the company.

f) Minority Interest in the net assets of consolidated subsidiaries consists of:


i) The amount of equity attributable to minorities at the date on which investment in a
subsidiary is made; and
ii) The minorities' share of movements in the equity since the date the parent subsidiary
relationship came into existence.

g) Minority interest in the net profit and loss for the year of consolidated subsidiaries is identified
and adjusted against the profit after tax of the group. Intra-group balances and intra-group
transactions and resulting unrealized profits / loss has been eliminated.

h) The consolidated financial statements are prepared to the extent possible using uniform
accounting policies for like transactions and other events in similar circumstances and are
presented to extent possible, in the same manner as the Company's separate financial statements.

c) The following subsidiary companies are consolidated in the consolidated financial statements.

Name of Subsidiary Country Of Incorporation/ Proportion of Ownership


Residence Interest/ Proportion of
Voting Power Held
Events Monks Entertainment LLP India 64%
Monkstar Music LLP India 67%
Dream Boat Entertainment Pte Limited China 100%

d) Use of Estimates:

The preparation of the consolidated financial statements in conformity with Indian GAAP requires the
Management to make estimates and assumptions that affect the reported amounts of assets and
liabilities (including contingent liabilities) and the reported income and expenses during the year. The
Management believes that the estimates used in preparation of the consolidated financial statements
are prudent and reasonable. Future results could differ due to these estimates and the differences
between the actual results and the estimates are recognized in the periods in which the results are
known / materialize.
e) Fixed Assets

Fixed assets are stated at cost of acquisition or construction less accumulated depreciation. Cost
includes all incidental expenses related to acquisition and installation, other pre-operation expenses
and interest in case of construction. Carrying amount of cash generating units / assets are reviewed
at balance sheet date to determine whether there is any indication of impairment. If such indication
exists, the recoverable amount is estimated as the net selling price or value in use, whichever is
higher. Impairment loss, if any, is recognized whenever carrying amount exceeds the recoverable
amount.

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f) Depreciation / Amortization

Depreciation has been provided on Straight line basis except for Fixed Assetsof subsidiaries Events
Monks Entertainment LLP and Monkstar Music LLP, at the rate determined with reference to the
useful lives specified in Schedule II of the Companies Act, 2013.The impact of the change in useful life
of fixed assets has been considered in accordance with the provision of Schedule II.

Assets acquired on lease are depreciated over the period of the lease. Leasehold improvements are
amortized over the period of lease.
Assets costing less than ` 5,000/- are depreciated at 100% in the year of acquisition

Depreciation has been provided on straight line basis, at the Life’s specified in Schedule II of the
Companies Act, 2013.

g) Investments :

Investments are valued at cost. Provision for diminution, if any, in the value of each investments in
Subsidiary companies are valued as per accounting standard-21 accounting for Investments in
subsidiaries in Consolidated Financial Statements. i.e. Investment recorded at cost identifying good
will arising at Value of investment over the face value of the investment.

h) Revenue Recognition:

Digital Marketing Services:

f) The Contracts between the Company and its Customers are either time or material contracts or
fixed price contracts.
g) Revenue from fixed price contracts is recognized according to the milestones achieved as
specified in the contracts on the proportionate-completion method based on the work
completed. Any anticipated losses expected upon the contract based on the work completed.
Any anticipated losses expected upon the contract completion are recognized immediately.
Changes in job performance, condition and estimates profitability may result in revisions and
corresponding revenues and cost are recognized in the period in which such changes are
identified.
h) In respect of time and material contract, revenue is recognized in the period in which the services
are provided.
i) Revenue is recognized to the extent that it is probable that the economic benefits will flow to
the company and revenue can be reliably measured.
j) Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the applicable rates.

i) Taxes on Income:
Tax expenses for the year comprises of current tax and deferred tax.

Current tax
The current change for income tax is calculated in accordance with the relevant tax regulations
applicable to the company.

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Annual Report 2017-18

Deferred tax
Deferred tax charge or credit reflects the tax effects of timing differences between accounting income
and taxable income for the year. The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have enacted or substantially enacted by
the balance sheet date. Deferred tax asset is recognized only to the extent there is reasonable
certainty that the assets can be realized in future.

Minimum Alternative Tax (MAT) credit


Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future
economic benefits in the form of adjustments of future income tax liability, is considered as an asset
if there is convincing evidence that the company will pay normal tax after the tax holiday period.
Accordingly, it is recognized as an asset in the balance sheet when it is probable that the future
economic benefit associated with it will flow to the company and asset can be measured reliably.

j) Earnings per Share


The earnings considered in ascertaining the companies earning per share comprise net profit
after tax and includes the post-tax effect of any extra-ordinary/exceptional item is considered.
The number of shares used in computing basic earnings per share is the weighted average
number of shares outstanding during the year.

The no. of shares used in computing diluted earnings per share comprises the weighted average
no. of shares considered for deriving basic earnings per share and also the weighted average
no. of equity shares that could have been issued on the conversion of all dilutive potential equity
shares.

Particulars 2017-18 2016-17


Net Profit/(Loss) attributable to Equity Share Holders 1,90,41,712 1,44,74,098
Opening No of shares 5,24,500 4,18,000
Shares issued during the year 41,17,000 1,06,500
Bonus Shares Issued during the year 31,47,000 31,47,000
Total no of Equity shares 46,41,500 36,71,500
Weighted Average Number of Equity Shares 38,70,815 35,95,100
Basic and Diluted Earnings per Share 4.92 4.03

k) Provisions & Contingent Liability

The Company recognizes a provision when there is a present obligation as a result of a past obligating
event that probably requires an outflow of resources and a reliable estimate can be made of the
amount of the obligation. A disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not, require an outflow of resources.
Where there is a possible obligation or a present obligation that the likelihood of outflow of resources
is remote, no provision or disclosure is made.

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Annual Report 2017-18
l) OTHER NOTES TO THE ACCOUNTS

i. Minority Interest Identified by considering Share of reserves (net of losses) relating to current
year has been transferred.

ii. Related Party transactions

The flowing transactions were carried out with the related parties in the ordinary course of
business during the year. (Rs. In Lakhs)
S. No Nature of Transactions 2017-18 2016-17
1 Service Income 195.93 197.79
2 Investment made 133.25 30.17
3 Inter Corporate Loans 0 0
4 Loan Repaid 0 0
5 Loan Given 0 0
6 Rent Expenses 0 6.06
7 Director Remuneration 90.00 57.00
8 Service Expenses 53.15 0

iii. The figures for the previous year have been regrouped wherever necessary to conform to
current year’s classification, Subsidiary company financials. All the amounts presented in
financial statements are in rupees except basic and diluted EPS & unless specified.

For Ramasamy Koteswara Rao and Co LLP, By order of the Board


Chartered Accountants
Firm Regn No. 010396S/S200084 Sd/-
Sd/- Tekulapalli Sanjay Reddy
(CV Koteswara Rao) Chairman & Managing Director
Partner
Membership No-028353 Sd/- Sd/- Sd/-
Place: Hyderabad Boda Narsing Rao Sushma Barla Anil Kumar Pallala
Date: 29.05.2018 Chief Financial Officer Company Secretary Whole Time Director

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Annual Report 2017-18

SILLY MONKS ENTERTAINMENT LIMITED


CIN: U92120TG2013PLC090132
Registered Office: 301, Ektha Pearl, 2-17-89, B P Raju Marg, Kothaguda, Kondapur,
Hyderabad – 500084, Telangana, India
Website – www.sillymonks.com Email – investor@sillymonks.com

ATTENDANCE SLIP FOR ANNUAL GENERAL MEETING


(To be surrendered at the venue of the meeting)
I, certify that I, am a registered shareholder/proxy/representative for the registered shareholder(s) of Silly
Monks Entertainment Limited.

I, hereby record my presence at the Annual General Meeting of the shareholders of Silly Monks Entertainment
Limited held on Saturday, 29th day of September, 2018 at 10.00 A.M. at the registered office of the Company
situated at 301, Ektha Pearl, 2-17-89, B P Raju Marg, Kothaguda, Kondapur, Hyderabad – 500084, Telangana,
India.

Reg. Folio No. DP ID*


No. of Shares Client ID*

*Applicable if the shares held in electronic form


Name & Address of Member

_________________________________
Signature of Shareholder/Proxy/Representative
(Please Specify)

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Annual Report 2017-18

SILLY MONKS ENTERTAINMENT LIMITED


CIN: U92120TG2013PLC090132
Registered Office: 301, Ektha Pearl, 2-17-89, B P Raju Marg, Kothaguda, Kondapur,
Hyderabad – 500084, Telangana, India
Website – www.sillymonks.com Email – investor@sillymonks.com

Form No. MGT-11


PROXY FORM

[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies (Management and
Administration) Rules, 2014]

CIN U92120TG2013PLC090132
Name of the company SILLY MONKS ENTERTAINMENT LIMITED
Registered office 301, Ektha Pearl, 2-17-89, B P Raju Marg, Kothaguda, Kondapur, Hyderabad –
500084, Telangana, India.
Name of the member(s)
Registered Address
Email Id
Folio No / Client ID DP ID :

I /We, being the member(s) of____________ shares of the above-named company, hereby appoint

1. Name
Address Signature
E-mail Id
or failing him
2. Name
Address Signature
E-mail Id
or failing him

as my / our proxy to attend and vote (on a poll) for me / us and on my / our behalf at the Annual General
Meeting of the Company to be held on Saturday, 29th day of September, 2018 at 10.00 A.M. at 301, Ektha
Pearl, 2-17-89, B P Raju Marg, Kothaguda, Kondapur, Hyderabad – 500084, Telangana, India and at any
adjournment thereof in respect of such resolutions as are indicated below:

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Annual Report 2017-18

Sl. No. Resolutions For Against


1. To consider and adopt:
a) The audited Financial Statement of the Company for the financial year
2017-18 together with the Report of the Board of Directors and Auditors
thereon; and
b) The audited consolidated Financial Statement of the Company for the
year 2017-18.
2. To appoint a director in place of Mr. Tekulapalli Sanjay Reddy (DIN:
00297272), who is liable to retire by rotation and being eligible, offers
himself for re-appointment as a Director.
3. Appointment of Dr. Rama Koti Reddy Kondamadugula (DIN: 00259576) as
an Independent Director
4. To Consider and approve the Increase in remuneration of Mr. Tekulapalli
Sanjay Reddy, Chairman & Managing Director of the Company.
5. To Consider and approve the Increase in remuneration of Mr. Anil Kumar
Pallala, Whole Time Director of the Company.

Signed this …………. day of ………………. 2018.


Signature of shareholder: _________Signature of Proxy holder(s): __________

Affix
Revenue
Note: This form of proxy in order to be effective should be duly completed and deposited at Stamp
the Registered Office of the Company, not less than 48 hours before the commencement of
the Meeting.

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Annual Report 2017-18

ROUTE MAP OF THE VENUE OF 05TH ANNUAL GENERAL MEETING


Address: 301, Ektha Pearl, 2-17-89, B P Raju Marg, Kothaguda, Kondapur,
Hyderabad – 500084, Telangana, India

103