Phantom Digital Effects Limited

@Venky_Thiriveedhi
nice explanation,

Let me give my take so what happiness is my understanding is the real cash received is in the beginning and the end of the project and in between is all revenue recognition or very small payments.

Like i get 20% as advance now as and when I complete a %of project I am supposed to recognize revenue but I have a understanding that in reality you actually dont get a lot of money in between.

and the best part is in the end till the time I dont get the payment I dont deliver the product, just think about this way that the entire movie gets delayed or is put on hold so it creates a risk for the entire small ecosystem, in this case both parties always try to come up with best solution which benefits both like in ayalaan movie phantom has the distributing rights. (so the possibility of receivables being downsized is also low)

Another thing is suppose I can recognize revenue at 20% completion of a project but by the quatre end I could only do 18% then in this case I am supposed to recognize revenue in next quarter, so by next quarte If I complete 40% I get to recognize entire thing.

another possibility to highlight is since % of work completed is subjective phantom might say I have done 20% of work and recognize revenue but client might not agree and pay in this case the entire thing becomes unpaid revenue but this effect should normalize in the subsequent quatre

BASILIC

In phantom case you work in preproduction so what %of work is done is itself a subjective matter for the company hence the revenue recognition is a bit tricky but in basilic case who work in post production has 15cr of receivable and 15cr of other asset on 53cr balance sheet 56%

PHANTOM

In phantom case 78cr of balance sheet out of 96cr which is 80% is in other current asset, receivable, inventory this is because the delay of ayalaan movie if I adjust that then their receivable+ inventory are just 40% of balance sheet

This 30cr of other current asset and 18cr of inventory will be recognized as revenue (please correct me if I am wrong here) once ayaalan movie releases (30cr of other current asset) and millstone/product is delivered (18cr inventory) so 49cr is what we are taking about.

Of course the balance sheet has been deteriorated + ayalaan successful/timely release is must, so we have to monitor things closely, expecting H2 to be better.

Basilic does not show this berceuse they work on small projects(post production) in phantom case they take like 6motnhs to 9months for a particular project (pre production)

Disc- I would exit this stock if I get to know about any significant developments without a intimating plz invest at your own risk, invested