10 Provisions and Contingent Liabilities:
A provision is recognised if, as a result of past event, the Company has a present legal obligation that can be estimated reliably and it is probable that an outflow of economic benefit will be required to settle the obligation. Provisions are determined by the best estimate of outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also 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 possible obligation or present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
11 Earnings Per Share:
Basic Earnings per share is computed by dividing the net profit or loss for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit or loss for the year attributable to the equity shareholders by the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as at the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.
12 Cash and Cash Equivalents:
Cash and cash equivalents comprise cash on hand and Cheque in hand, balance with bank, demand deposits with banks and other short term highly liquid investments that are readily convertible to known amounts of cash & which are subject to an insignificant risk of changes in value where it has a short maturity of three months or less from the date of acquisition.
13 Cash Flow Statement:
Cash flows are reported using indirect method, whereby net profit/loss before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
The Company's cash and cash equivalents consist of cash on hand and in banks and demand deposits with banks, which can be withdrawn at any time, without prior notice or penalty on the principal. For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand, in banks and demand deposits with banks, net of outstanding bank overdrafts that are repayable on demand and are considered part of the Company's cash management system. In the balance sheet, bank overdrafts are presented under borrowings within current liabilities.
14 Investments:
Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.
15 Leases
a. Financial Lease
The Company recognise the finance lease as an asset and a liability. Such recognition will be at an amount equal to the fair value of the leased asset at the inception of the lease. However, from the standpoint of the Company, if the fair value of the leased asset exceeds the present value of the minimum lease payments, the amount recorded as an asset and a liability will be the present value of the minimum lease payments. In calculating the present value of the minimum lease payments the discount rate is the interest rate implicit in the lease, if this is practicable to determine; if not, the Company's incremental borrowing rate is used.
b. Operating Lease
Lease payments under an operating lease is recognised as an expense in the statement of profit and loss on a straight line basis over the lease term unless another systematic basis is more representative of the time pattern of the user's benefit.
2 Proposed Dividend Details:
The Company has not declared dividend during the period under review.
3 During the year Company has made Qualified Institutional Placement of equity shares of 19.39 Lakhs of Rs.10 each at a premium of Rs.402.50 amounting to Rs.7999.20 Lakhs. The Company has utilized the amount received through QIP issue for the purpose as stated in the prospectus and the unutilized part amounting to Rs. 3726.66 Lakhs are kept in Fixed Deposit. Company has not issued any other securities during the year.
4 The Company has utilized the amount borrowed during the year from banks and financial institution for the purpose for which it has been raised.
5 In the opinion of the Board, all of the assets other than Property, Plant and Equipment and non current investments have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.
6 Details of Benami Property held
The Company has no proceedings which have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
8 Wilful Defaulter
The company is not declared as wilful defaulter by any bank or financial institution or other lender during the reporting period.
9 Relationship with Struck off Companies
The company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013.
10 Compliance with number of layers of companies:
The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.
11 Compliance with approved Scheme(s) of Arrangements:
No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the reporting period.
12 Utilisation of Borrowed funds and share premium:
A. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
B. Where a company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
Notes to be disclosed
1. Terms and conditions of sales and purchases: the sales and purchases transactions among the related parties are in the ordinary course of business based on normal commercial terms, conditions, market rates and memorandum of understanding signed with the related parties. For the year ended 31st March, 2024, the Company has not recorded any loss allowances for transactions between the related parties.
2. As the future liabilities for gratuity and leave encashment is provided on an actuarial basis and payment of insurance costs are made for the Company as a whole, the amount pertaining to the key management personnel is not ascertainable, therefore, not included above.
3. No amounts in respect of related parties have been written off/ written back during the year or has not made any provision for doubtful debts/ receivable.
28 Employee Benefit (Incurred in India):
A. Provident Fund - The Company has contributed Rs. 115.95 Lakhs for the year ended 2024 and Rs. 55.01 Lakhs for the year ended 2023 towards the Employees Provident Fund.
B. Gratuity - The Present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method. This method considers each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation.
Interest cost: It is the increase in the Plan liability over the accounting period resulting from the operation of the actuarial assumption of the interest rate.
Current Service Cost: is the discounted present value of the benefits from the Plan's benefit formula attributable to the services rendered by employees during the accounting period.
Actuarial Gain or Loss: occurs when the experience of the Plan differs from that anticipated from the actuarial assumptions. It could also occur due to changes made in the actuarial assumptions.
29 Cashflow Statement
(1) The Company has no significant amount of cash and cash equivalent balances held that are not readily available for use.
(2) The Company has a borrowing facility upto Rs. 1550 Lakhs and there are undrawn borrowing facilities that may be available for future operating activities amounting to Rs. 58 Lakhs.
(3) The Company has appropriate amount of Cash Flows that are required to maintain operating capacity.
(4) There are no non cash transactions happened in investing and financing activities to be excluded from Cash Flow Statement.
30 Disclosures on PPE and Intangible Assets
I. Property, plant and equipment
1) The Company do have any restrictions on title, and property, plant and equipment pledged as security for liabilities.
2) There is no amount of expenditure recognised in the carrying amount of an item of property, plant and equipment in the course of its construction.
3) There is no contractual commitments for the acquisition of property, plant and equipment.
4) There is no amount of compensation from third parties for items of property, plant and equipment that were impaired, lost or given up that is included in the statement of profit and loss.
5) The Company has no assets that are retired from active use and held for disposal
6) There is no temporarily idle property, plant and equipment at the reporting date.
7) The Company has fully depreciated property, plant and equipment that is still in use.
8) The Company has not revalued any class of property, plant and equipment during the financial year.
9) The Company has no property, plant and equipment retired from active use and not held for disposal.
II. Intangible asset
1) The carrying amount and remaining amortization period of any individual intangible asset that is material to the financial statements of the enterprise as a whole - Nil
2) The Company do have any restrictions on title, and intangible assets pledged as security for liabilities.
3) There is no contractual commitments for the acquisition of intangible assets.
4) The Company has no fully amortised intangible asset that is still in use.
5) There is no acquisitions of intangible assets through business combinations.
31 Investments
I. Profits and losses with regard to investments have been disclosed as under:
a) profits and losses on disposal of current investments- Nil
b) profits and losses on changes in the carrying amount of current investments- Nil
c) profits and losses on disposal of long-term investments- Nil
d) profits and losses on changes in the carrying amount of long- term investments- Nil
II. The Company has no significant restrictions with regard to investments in subsidiaries on the right of ownership, realisability of investments or the remittance of income and proceeds of disposals.
Note: The management shall provide remarks for any change in the ratio by more than or less than 25% as compared to preceding year.
For and on behalf of the Board of Directors of As per our report of even date attached
PHANTOM DIGITAL EFFECTS LIMITED For L.U.KRISHNAN & CO
Chartered Accountants Firm's Registration.No: 001527S
Bejoy Arputharaj Syntia Moses Darry Binu Joshua Pallavi Tongia P K Manoj
Managing Director Whole time director Whole time director and CFO Company Secretary Partner
DIN: 03459098 DIN: 03459055 DIN: 03459073 Mem No : A66438 Membership Number: 207550
UDIN:24207550BKANNV9670
Place: Chennai Date: 29-05-2024
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