Phantom Digital Effects Limited disclosed the creation and release of share pledges by its promoters and promoter group for the financial year ended March 31, 2026. The declaration, submitted to the National Stock Exchange of India Ltd., details the specific encumbrances created by the promoters during the period. While most pledges have been released, two instances of pledges created late in the financial year remain outstanding as of the date of the filing.

The disclosure was made by Bejoy Arputharaj S, a promoter of the company, on behalf of the promoter and promoter group. The filing was made in compliance with Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The document confirms the accuracy of the details provided regarding the encumbrances.

Pledge Creation and Release Details

The following table outlines the share pledges created by the promoters during the financial year, along with their current status.

Outstanding Pledges

All pledges created on the dates listed above have been released, with the exception of those created on December 29, 2025, and January 29, 2026. The outstanding pledges involve Bejoy Arputharaj S and total 42,44,690 equity shares. These encumbrances continue to remain outstanding as of the date of the declaration.

Promoter and Promoter Group

The disclosure identifies the members of the promoter and promoter group involved in these transactions. The group includes Bejoy Arputharaj S as the promoter, and Synthia Moses D and Binu Joshua Sam Manohar as members of the promoter group.

Phantom Digital Effects will not meet the statutory timeline of May 30, 2026, for the approval and submission of its audited financial results for the financial year ended March 31, 2026. The delay stems from operational and structural factors, primarily the evaluation of Indian Accounting Standards (Ind AS) related to a proposed migration from the NSE SME Emerge Platform to the Main Board. Additionally, the company is managing the complexities of consolidating overseas subsidiaries for the first time, which has extended the audit timeline.

The company has filed an application for migration to the NSE Main Board, which is at an advanced stage of consideration. In connection with this, Phantom Digital Effects is evaluating the applicability of Ind AS and related financial reporting requirements under the Companies Act, 2013, and SEBI (LODR) Regulations, 2015. This evaluation process, along with consultations with statutory auditors, has impacted the finalisation schedule for the financial results.

During the financial year 2025-26, the company completed the acquisition of Milk Visual Effects Limited in London, United Kingdom. This acquisition requires the consolidation of the subsidiary's financial statements with the holding company for the first time. The process involves significant complexity, including the alignment of accounting policies across jurisdictions, currency translation from GBP to INR, and the elimination of intercompany transactions.

The audit readiness of overseas subsidiaries was further impacted by operational transitions and the reorganisation of accounting and finance functions at Tippet Studios Inc., USA. These changes necessitated additional time for the review and streamlining of accounting records and supporting documentation. The company is undertaking additional verification procedures to ensure the completeness and accuracy of the consolidated financial statements, including the reconciliation of intercompany transactions.

The Audit Committee and the Board of Directors are closely monitoring the progress of the audit and consolidation process. Phantom Digital Effects has undertaken to submit the audited financial results to the NSE immediately upon approval by the board and to keep the exchange informed of any material developments regarding the updated timeline.