Phantom Digital Effects Limited

2 surprising elements for me from results.

Appreciate if experts tracking the company can help me understand:

1. Inventories: Why a sharp increase of Rs11cr in Inventories (cash outflow)? Why would there be a big Inventory on Balance Sheet for Phantom, wondering what would that constitute for VFX player?

2. ST loans: Seems this inventory is funded by short term borrowings, and therefore a similar increase in ST borrowings. This is worth clarifying with management, if they haven’t mentioned this before. Also, is it loans/advances from third parties?

Again, as mentioned in your post, ST loans should be a financing activity and not operating cash flow. However, when I checked their Annual Report, they always treated this ST borrowings as operating cash which is surprising.

They left note references on balance sheet items in their release, however do not have actual notes