12 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. Provisions are not operating for future operating losses.

13 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.

14 Current and Non Current classification:

An asset shall be classified as current when it satisfies any of the following criteria:

(a) it is expected to be realized in, or is intended for sale or consumption in, the company's normal
operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realized within twelve months after the reporting date; or

it is Cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting date.

All other assets shall be classified as non-current.

An operating cycle is the time between the acquisition of assets for processing and their realization in
Cash or cash equivalents. Where the normal operating cycle cannot be identified, it is assumed to have a
duration of twelve months.

A liability shall be classified as current when it satisfies any of the following criteria:

(a) it is expected to be settled in the company's normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within twelve months after the reporting date; or

(d) the company does not have an unconditional right to defer settlement of the liability for at least twelve
months after the reporting date. Terms of a liability that could, at the option of the counterparty, result
in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities shall be classified as non-current.

15 Cash and Cash Equivalents:

Cash and cash equivalents comprises Cash-in-hand, Current Accounts, Fixed Deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three months or less from the date of
acquisition), highly liquid investments that are readily convertible into known amounts of cash and which
are subject to insignificant risk of changes in value. Other Bank Balances are short-term balance ( with
original maturity is more than three months but less than twelve months).

16 Operating Lease:

Lease where the Lessor effectively retains substantially all the risks and benefits of ownership of the leased
term, are classified as operating lease. Operating lease payments are recognized as an expense in the Profit
and Loss Account on a straight-line basis.

17 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.

18 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.

19 Deferred Revenue Expenditure

The Company has planned to diversify its operations from a quasi charter model-where aircraft are hired as
a complete package inclusive of fuel, crew, pilot, and maintenance-to a dry lease arrangement. Under the dry
lease model, the Company leases only the aircraft, while all other operational requirements, including hiring
of pilots and crew, fuel procurement, and maintenance, are managed independently by the Company. This
strategic shift is aimed at overcoming the limitations associated with the quasi charter model.In anticipation
of commencing operations under the dry lease model, the Company incurred various expenses, including
aircraft lease rentals, pilot and crew hiring costs, and maintenance expenditures. However, commercial
operations under the dry lease model commenced only upon receipt of the Air Operator Permit (AOP) from
the aviation authorities on 11th December, 2024.Accordingly, expenses incurred in relation to the dry lease
arrangement up to the date of obtaining the AOP have been initially recognized as Prepaid Expenses. These
expenses have subsequently been reclassified as Deferred Revenue Expenditure and are being amortized
over the lease period of aircraft.

20 Corporate Social Responsibility (CSR):

The company has contributed ' 40,50,246/- in Financial year 2024-25 towards CSR compliance as per
provisions of Section 135 of the Companies Act,2013.

*Notes

(a) TDS demand

The Company has TDS demand as per TRACES due to interest and late fees for the total demand amount of
'39,80,900/- relating to FY.2022-23, 2023-24, 2024-25. However the company has plans to file rectification
against the outstanding TDS with the appropriate authorities.

(b) Income Tax demand

The Company has Income tax demand of ' 6,58,53,330/- as per order passed by Assessing officer dated
07th March, 2024 and the Company submitted the Appeal against the order as on 03rd April, 2024 and the
proceedings are pending before the Commissioner of Income Tax (Appeals).

(c) GST Act 2017

The Company has demand of ' 31,94,272/- as per order passed by Assessing officer dated 06th February, 2024
and the Company submitted the Appeal against the order as on 16th June, 2025 and the proceedings are pending
before the Assistant Commissioner of GST (Appeals).

29. Employee Benefit Obligation

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.

31. Additional Disclosures With Respect To Amendments To Schedule III

(i) The Company have no immovable property whose title deeds are not held in the name of the company.

(ii) The Company has not revalued its Property, Plant and Equipment during the reporting period/years.

(iii) Loans and Advances granted to Promoters, Directors, KMP and Related Parties:

There are no Loans and Advances in the nature of loans that are granted to promoters, directors, KMP's and the
related parties either severally or jointly with any other person, that are repayable on demand.

(iv) There are no proceedings initiated or pending against the Parent for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

(v) The Company has made borrowing from the banks or financial institutions on the basis of security of current
assets, and the statements of current assets as required to be filed by the Company with any the banks or
financial institutions are done periodically.

(vi) The Company is not declared as willful defaulter by any bank or financial institution or other lender.

(vii) The Company has not entered into any transactions with companies struck off under section 248 of the
Companies Act, 2013.

(viii) The Company do not have any charge to be registered with Registrar of Companies beyond the statutory
period.

(ix) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies
Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017. No layer of companies has
been established beyond the limit prescribed as per above said rules/section

(x) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of
the Companies Act, 2013.

(xi) 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:

(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.

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:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

As per our Report on even date

For and on behalf of the Board of Directors of For P P N AND COMPANY

AFCOM HOLDINGS LIMITED Chartered Accountants

(Formerly known as Afcom Floldings Private Limited) Firm Reg No:

013623S

Peer review certificate No. 013578

sd/- sd/- sd/-

Deepak Parasuraman Kannan Ramakrishnan D Hitesh

Managing Director Director Partner

DIN: 00699855 DIN: 08202306 M. NO. 231991

UDIN: 25231991BMKRN02050

sd/- sd/-

Maran Ajith Kumar P K Raghunathan

Place: Chennai Company Secretary Chief Financial Officer Place: Chennai

Date: 27th May, 2025 M. No. A61367 Date:

27th May, 2025