(b) Terms/ rights attached to equity shares
The company has only one class of equity shares having par value of INR10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
During the period ended 31 March 2024, No dividend was proposed. (31 March 2023: NIL).
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Indian rupee loan from bank
1. Indian rupees loan is borrowed from Saraswat Co-operative Bank for acquistion of vehicles and carries interest rate of 7.75%- 8.60% and this loan has primary collateral by first charge by way of hypothecation against the vehicles.
2. This loan is from Axis Bank Ltd has limit of Rs. 40 lakhs and it carries a interest of 16.5%
3. This loan is from Unity Small finance Bank Ltd has a limit of 50 lakhs and it carries a interest of 16.5%
4. his loan is from Kotak Mahindra Bank Ltd has a limit of 40 lakhs and it carries a interest of 15%
From financial institutions
1. This loan is from Kisetsu Saison Finance (India) Private Limited has a limit of 20 lakhs and it carries a interest of 17.5%
2. This loan is from L&T financial services has a limit of 50 lakhs and it carries a interest of 16.5%
3. This loan is from Aditya Birla finance Ltd has a limit of 35 lakhs and it carries a interest of 16.25%
4. This loan is from Clix Capital Services has a limit of 40 lakhs and it carries a interest of 18.00%
5. This loan is from Hero Fincorp Ltd has a limit of 40.20 lakhs and it carries a interest of 17.50%
6. This loan is from Shriram Finance Ltd has a limit of 35.00 lakhs and it carries a interest of 17.50%
Defererred Revenue Expenditure
(i) Expenses related to IPO and Preferential allotment to be expense out over the period of 5 years as these expenses relates to raising the capital which will be used over long period and as per the income tax allowes to expense such expenditure over the period of benefits of the business.
26 Gratuity
Retirement benefits in the form of Gratuity and compensated absences have been valued by an independent actuary as on the Balance Sheet date. The accrued benefits are projected to the due date and valued prospectively by applying proper economic and demographic assumptions stated below. The liability is computed based on current salary levels projected to the probable due date using “Projected Unit Credit Method
27 Leases
Operating lease: company as lessee
The company has entered into commercial leases on office. These leases have an average life of between one and three years with no renewal option included in the contracts. There are no restrictions placed upon the company by entering into these leases.
28 Segment information
Operating segments are defined as components of an entity for which discrete financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”), in deciding how to allocate resources and assessing performance. The Company’s CODM is the Director and the Company has only one reportable segment i.e. Visual effet services
Visual effect services includes Animation, Comics, Roto, matchmaking, paints etc for the Films, TV series, Web series, Documentaries and commercials and creation of sets for virtual Production. The CODM evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by operating segments, viz. single segment of Visual effect services. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements.
Digikore also tapped the new segment by entering into the Digital shows like Kaise Banta hai and Fundraising Show which resulted into entering into new arena of Digital world.
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30 Contingent liabilities
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As at March 31, 2024
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As at Mar 31, 2023
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GST demand *
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-
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56.38
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Income tax demand**
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7.90
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26.18
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Total
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7.90
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82.56
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*GST demand comprise demand from the Indian tax authorities for payment of additional tax of INR 14 thousand (31 March 2023: 56.38 lakhs), upon completion of their tax review for the financial years 2018-19 . The tax demands are on account of GST payable on Reverse charge Mechanism by the company under GST Acts.
**TDS demand comprise demand from Indian tax authorities for payment of additional tds liability of 7.35 lakhs (31 March 2023: 26.18 lakhs)
The company is contesting the demands and the management, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the company's financial position and results of operations.
37 Corporate Social Responsibility (CSR)
As per provisions of section 135 of Companies Act 2013, the Company was required to spend Rs. 3.02 lakhs (Previous Year: 2023 Nil lakhs) being 2% of average net profits made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy on the activities specified in Schedule VII of the Act. The Company has spent Rs.7.80 lakhs (Previous Year: Rs. Nil lakhs) towards Corporate Social Responsibility activities.
38 Additional regulatory disclosures
1. The Company does not have any immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the company.
2. The Company has not revalued its Property, Plant and Equipment.
3. The Company has not granted loans or advances in the nature of loans are granted to promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:
(a) repayable on demand or
(b) without specifying any terms or period of repayment”
4. There are no proceedings initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder
5. The Company has been sanctioned working capital limits from banks or financial institutions on the basis of security of immovable property at any point of time during the year.
6. The Company is not declared as wilful defaulter by any bank or financial Institution or other lenders.
7. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
8. The Company has complied with the relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) sub-
ject to the compliance under process as mentioned in point 35 and the Companies Act for the relevant transactions and the transactions are not violative of the Prevention of Money-Laundering Act, 2002 (15 of 2003).
9. The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
10. The Company do not have any transactions with companies struck off.
11. The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
12. The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) 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
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries”
13. The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.
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