11 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.

12 Earnings Per Share:

Basic Earnings per share is computed by dividing the net profit after tax by the weighted average number of equity
shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit after tax
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.

13 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.

14 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.

15 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.

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, the assets other than Property, Plant and Equipment, Intangible Assets and non¬
current investments have value on realization in the ordinary course of business 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.

7 Where the Company has borrowings from banks or financial institutions on the basis of security of current
assets, the following are the details of statements submitted to bank:-

B. The 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.

8 The company is not declared as wilful defaulter by any bank or financial institution or other lender during the
reporting period.

9 The company has not entered into any transactions with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956.

10 The Company do not have any charges or satisfaction yet to be registered with Registrar of Companies beyond
the statutory period.

11 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.

12 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.

13 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;

15 Corporate Social Responsibility:

The Company is covered under section 135, amount of expenditure incurred on corporate social responsibility
activities are as follows:

a. amount required to be spent by the company during the year is INR 40.68 lakhs

b. amount of expenditure incurred is Nil

c. shortfall at the end of the year out of the amount required to be spent by the Company during the year is INR
40.68 lakhs

d. total of previous years shortfall is NIL

e. The reason for above shortfalls by way of a note, (a) the company intends to transfer the unspent amount to
the Prime Minister's National Relief Fund within six months from the end of the financial year.

f. The nature of CSR activities undertaken by the Company - Nil

g. Details of related party transactions - Nil

18 The company has not set aside any material amounts to reserve, but not including provisions made to meet any
specific liability, contingency or commitment known to exist at the date as to which the balance sheet is made
up.

19 The company has not set aside any material amounts to provisions made for meeting specific liabilities,
contingencies or commitments.

20 (a) Dividends from subsidiary companies - Nil

(b) Provisions for losses of subsidiary companies - Nil

21 Value of Imports:

Value of imports calculated on C.I.F basis by the company during the financial year is as follows:

23 The amount remitted during the year in foreign currencies on account of dividends with a specific mention of
the total number of non-resident shareholders, the total number of shares held by them on which the dividends
were due and the year to which the dividends related - Nil

24 Undisclosed income:

There are no transactions that were not recorded in the books of account, and which has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of the Income
Tax Act, 1961). There is no previously unrecorded income and related assets have been recorded in the books of
account during the year.

25 Details of Crypto Currency or Virtual Currency:

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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,
2025, 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.

27 Income Taxes:

I . Minimum Alternate Tax

The Company has opted the lower tax regime under section 115BAA of the Income Tax Act, 1961. Hence,

there is no Minimum Alternate Tax credit recognised in the reporting year.

29 Employee Benefit (Incurred in India):

A. (1) Provident Fund - The Company has contributed ' 94.66 Lakhs for the year 2025 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.

III. Details of Interest and Penalties

1) Interest on Shortfall in payment of Advance Tax Interest under Section 234C - INR 31.54 Lakhs

2) Any Penalties levied under Income Tax Act - Nil

3) Excess/Short Provision of Taxes relating to earlier years - INR 54.34 Lakhs

30 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 INR 3000 Lakhs and there are undrawn borrowing facilities that
may be available for future operating activities amounting to INR 392 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 the
cash flow statement.

31 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 not 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 that are 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 does not have any restrictions on the title and the carrying amounts of 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 acquisition of intangible assets through business combinations

32 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.

33 Leases

Operating lease agreement has been made by the Company for Rental of Office premises with Kosmo One
Business Park Limited for Chennai, with iSprout Business Centre Private Limited for Hyderabad & with Techniplex
for Mumbai Office.

The total of future minimum lease payments under non - cancellable operating leases for each of the following
periods:

For and on behalf of the Board of Directors of As per our report of even date attached

Phantom Digital Effects Limited Poornima Raghu For L.U.KRISHNAN & CO

Company Secretary Chartered Accountants

Mem No: A66317 Firm's Registration.No: 001527S

Bejoy Arputharaj S Binu Joshua P K Manoj

Chariman & Manging Director Whole Time Director and CFO Partner

DIN: 03459098 DIN: 03459073 Membership Number: 207550

UDIN:25207550BMJDIK4485

Syntia Moses Darry

Place: Chennai Whole Time Director Place: Chennai

Date: 30-05-2025 DIN: 03459055 Date: 30-05-2025