అకౌంట్స్ గమనికలుAfcom Holdings Ltd.

2.17 Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the

obligation, and a reliable estimate can be made of the amount. Provisions (other than for retirement benefits)
are not discounted to present value and are based on the best estimate required to settle the obligation at
the reporting date; they are reviewed at each reporting date and adjusted to reflect the current best estimate.
The Company has in its fleet aircraft on lease. As contractually agreed under the lease contracts (except for leases where
the Company has a right to purchase the aircraft and the Company is reasonably certain to exercise that right at the
commencement date), the aircraft have to be redelivered to the lessors at the end of the lease term under stipulated
contractual return conditions. The redelivery obligations are determined by management based on historical trends
and data, and are recorded under ‘provision for Aircraft redelivery'' at the present value of expected outflow, where
effect of the time value of money is material with the corresponding value capitalised under ‘Right of use assets''.
Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company,
or a present obligation that arises from past events where it is not probable that an outflow of economic benefits will
be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the
probability of outflow of economic benefits is remote.

2.18 Commitments

Commitments are future liabilities for contractual expenditure and include the estimated amount of contracts remaining
to be executed on capital account and not provided for, and other non-cancellable commitments, to the extent considered
material and relevant in the opinion of management. Other commitments relating to purchases/sales made in the normal
course of business are not disclosed to avoid excessive detail.

2.19 Borrowing Costs

Borrowing costs comprise interest and other costs incurred in connection with the borrowing of funds, including exchange
differences to the extent regarded as an adjustment to borrowing costs. Borrowing costs directly attributable to the
acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset until it is
ready for its intended use or sale; a qualifying asset is one that necessarily takes twelve months or more to get ready for
its intended use or sale. Capitalisation is suspended during extended periods in which active development is interrupted,
and such costs are charged to the Statement of Profit and Loss. All other borrowing costs are recognised as an expense
in the period in which they are incurred.

2.20 Cash and Cash Equivalents

Cash and cash equivalents comprise cash-in-hand, balances in current accounts and short-term, highly liquid deposits
with an original maturity of three months or less from the date of acquisition that are readily convertible into known
amounts of cash and subject to an insignificant risk of changes in value. Other bank balances comprise deposits with an
original maturity of more than three months but less than twelve months. For the Statement of Cash Flows, cash and cash
equivalents exclude balances that are not available for general use as at the reporting date.

2.21 Earnings per Share

Basic earnings per share is computed by dividing the profit attributable to equity shareholders of the Company by the
weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed using the
weighted average number of equity shares and dilutive potential equity shares outstanding during the year, except where
the result would be anti-dilutive.

2.22 Segment Reporting

The Company has determined that it operates as a single operating segment. An operating segment is defined as a
component that engages in business activities generating revenues and incurring expenses, with discrete financial
information available.The board of directors serves as the Chief Operating Decision Maker (CODM), overseeing all major
decisions regarding business planning, budgeting, expansion, alliances, joint ventures, mergers and acquisitions, and
facility expansions.Accordingly, no separate segment disclosures are required.

2.23 Supplementary rentals, aircraft repair and maintenance and Aircraft Fuel Expenses

Under certain aircraft and engine lease arrangements, the Company recognises monthly supplementary rental expenses
which are determined based on aircraft and engine utilisation, calculated with reference to the number of hours flown
or cycles operated during the period as an expense in the Statement of Profit and Loss and adjusted towards the Lease
liability. Aircraft repairs and maintenance includes additional accrual, beyond supplementary rentals, for the estimated
future costs of engine maintenance checks. These accruals are based on contracted terms, past trends for costs
incurred on such events, future expected utilization of engine, condition of the engine and expected maintenance interval
and are recorded over the period of the next expected maintenance visit. Aircraft maintenance covered by third party
maintenance agreements, wherein the cost is charged to the Statement of Profit and Loss at a contractual rate per hour
in accordance with the terms of the agreements. The Company recognises aircraft repair and maintenance cost (other
than major inspection costs) in the Statement of Profit and Loss on incurred basis. Aircraft fuel expenses are recognised
in the Statement of Profit and Loss as uplifted and consumed, net of any discounts

2.24 Statement of Cash Flows

The Statement of Cash Flows is prepared by segregating cash flows into operating, investing and financing activities.
Cash flow from operating activities is reported using the indirect method, whereby profit before tax is adjusted for the
effects of non-cash items such as depreciation and provisions, changes in working capital, and all items for which the
cash effects are investing or financing cash flows. Cash and cash equivalents shown in the Statement of Cash Flows
exclude items that are not available for general use as at the reporting date.

Recent Accounting Pronouncements

The Ministry of Corporate Affairs (MCA) notifies new standards or amendments to existing standards under the
Companies (Indian Accounting Standards) Rules from time to time. The amendments to Ind AS 1 (classification of
liabilities as current or non-current and liabilities with covenants), Ind AS 7 and Ind AS 107 (supplier finance arrangements)
and Ind AS 12 (International Tax Reform - Pillar Two Model Rules) have been considered. The Company has evaluated these
amendments and determined that they do not have a material impact on its financial statements.

Nature and purpose of other reserves
Retained Earnings

Retained earnings represents the net profits after all distributions and transfers to other reserves.

Other comprehensive income

The Company recognises change on account of remeasurement of the net defined benefit liability as part of other
comprehensive income with separate disclosure, which comprises of actuarial gains and losses.

Securities Premium Reserve:

Represents the amount received by the Company in excess of the face value of equity shares issued and is utilised in accordance
with the provisions of the Companies Act, 2013.

*Initial Public Offering issue expenses of ^884.39 lakhs incurred in connection with the initial public offering (listed on BSE
SME on 9 August 2024) have been adjusted against the securities premium account in accordance with Section 52 of the
Companies Act, 2013.

Convertible Share Warrants:

During the period, the Company allotted 11,65,000 Convertible Equity Share Warrants on a preferential basis to "Promoter &
Promoter Group" and "Non-Promoter" as approved in the Annual General Meeting held on September 25, 2025. Each warrant
is issued at a price of Rs. 863.17, comprising a subscription price of Rs. 215.79 (25% of the issue price) and a warrant exercise
price of Rs. 647.38 (75% of the issue price). Each warrant entitles the holder to apply for one fully paid-up equity share of the
Company with a face value of ^10 upon payment of the balance Rs. 647.38 per warrant. Conversion can occur within 18 months
from the date of allotment of share warrants as per the Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2018.

Company as a Lessee:

The Company''s lease asset classes primarily comprise aircraft and office premises. The Company assesses at the inception
of a contract whether the contract is, or contains, a lease. A contract is, or contains, a lease if it conveys the right to control
the use of an identified asset for a period of time in exchange for consideration. The lease contracts typically include renewal
options, escalation clauses, and other customary terms associated with commercial leasing arrangements.

Information about leases for which the company is a lessee is presented below:

NOTE 37 : PROVISION FOR AIRCRAFT REDELIVERY

Provision for Aircraft Redelivery Obligations:

The Company has entered into lease arrangements for certain aircraft which require the aircraft to be returned to the respective
lessors upon expiry of the lease term in accordance with the contractual redelivery conditions. The Company recognises a
provision towards the estimated costs associated with fulfilling these redelivery requirements. The provision is determined

by management based on the expected future costs, taking into consideration historical experience, contractual obligations
and other relevant available information. Where the impact of the time value of money is considered material, the provision is
recognised at the present value of the estimated future expenditure.

The measurement of the provision for redelivery and overhaul cost includes assumptions primarily relating to expected costs
and discount rates commensurate with the expected obligation maturity schedules. An estimate is therefore made to ensure
that the provision corresponds to the present value of the expected costs to be borne by the Company. Judgement is exercised
by management given the long-term nature of assumptions that go into the determination of the provision. The assumption
made in relation to the current year are consistent with those in the previous year.

NOTE 38: EMPLOYEE BENEFITS OBLIGATION

A. Defined Contribution Plan

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying
employees towards provident fund, Employee State insurance administered and managed by the government of India.
The Company has no obligations other than to make the specified contributions. The contributions are charged to the
statement of profit and loss as they accrue.

B. Gratuity And Other Post Employment Benefit Plans (Unfunded)

The Company operates an unfunded defined benefit gratuity plan for eligible employees. The gratuity plan is governed
by the provisions of the Payment of Gratuity Act, 1972 and other applicable labour laws. Employees who have completed
the prescribed period of continuous service are entitled to gratuity benefits. The amount of gratuity payable is
determined based on the employee''s length of service and last drawn salary. The gratuity provision has been computed
considering the revised gratuity provisions under the new labour framework, wherever applicable

Interest rate risk

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields falls, the defined
benefit obligation will tend to increase

Salary Inflation Risk

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability
and retirement. The effect of these decrements on the defined benefit obligation depends upon the combination of salary
Increase, discount rate and vesting criteria.

NOTE 40: RELATED PARTY DISCLOSURES

In accordance with the requirements of IND AS 24, on Related party disclosures, name of the related party, related party
relationship, transactions and outstanding balances including commitments where control exits and with whom transactions
have taken place during reported periods, are:

(1) GST demand of ^31.94 lakhs pertaining to FY 2020-21 was raised pursuant to an order dated February 16, 2024. The
Company had filed an appeal against the said order on June 16, 2025. The appeal has subsequently been disposed of
in favour of the Company, and accordingly, the matter has been closed. Based on the disposal of the appeal, no further
liability is expected to arise in respect of the said matter.

(2) In respect of Assessment Year 2022-23 (FY 2021-22), an income tax demand amounting to ^658.53 lakhs has been raised
by the Income Tax Department, against which the Company has filed an appeal before the Commissioner of Income
Tax (Appeals) [CIT(A)]. The appeal is currently pending for disposal. In connection with the said appeal, the Company
has paid an amount of ^23.74 lakhs as deposit towards the disputed demand. The management, based on the facts and
circumstances of the case and the advice received, is of the view that the Company has reasonable grounds in support
of its position and, accordingly, no provision has been recognised in the financial statements in respect of the balance
disputed demand.

(3) The Company has an outstanding TDS demand of ^33.54 lakhs as per the income-tax records, comprising ^33.24 lakhs
pertaining to FY 2025-26 and ^0.30 lakhs pertaining to FY 2024-25. The Company intends to file a rectification application
with the appropriate authorities in respect of the outstanding demand.

NOTE 46: SEGMENT REPORTING

A. Basis for Segmentation

The Company has determined that it operates as a single operating segment. An operating segment is defined as a
component that engages in business activities generating revenues and incurring expenses, with discrete financial
information available.

The board of directors serves as the Chief Operating Decision Maker (CODM), overseeing all major decisions regarding
business planning, budgeting, expansion, alliances, joint ventures, mergers and acquisitions, and facility expansions.

Entity wide disclosures

B. Information about reportable segments

The Company is engaged in the business of air cargo and logistics services, which is considered as a single reportable
business segment, in the context of Indian Accounting Standards 108 - "Operating Segments’tAccordingly, no separate
segment disclosures are required.

C. Information about geographical areas

Company operates primarily under a single geographic location i.e. India and accordingly, there are no separate reportable
geographical segments.

The carrying value of all financial assets and liabilities measured at amortized cost approximated to their fair value.

Level 1: It includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques
which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant
inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
The fair value of financial assets and liabilities included in Level 3 is determined in accordance with generally accepted pricing
models based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes
of similar instruments.

The Company''s borrowings have been contracted and amortised based on the Effective interest rate. Accordingly, the carrying
value of such borrowings (including interest accrued but not due) which approximates fair value.

The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other financial assets and liabilities,
approximates the fair values, due to their short-term nature. Fair value of non-current financial assets which includes bank
deposits (due for maturity after twelve months from the reporting date) and security deposits is smiliar to the carrying value as
there is no significant differences between carrying value and fair value.

The fair value for security deposits (amortised cost) were calculated based on discounted cash flows using a current lending
rate. The interest income on such security deposit is cumulated year on year and the carrying amount is represented as PV of
Security deposit in addition to the interest income.

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk
management framework. The Board of Directors have authorised senior management to establish the processes and ensure
control over risks through the mechanism of properly defined framework in line with the businesses of the company.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set
appropriate risks limits and controls, to monitor risks and adherence to limits. Risk management policies are reviewed regularly
to reflect changes in market conditions and the Company''s activities.

The Company has policies covering specific areas, such as interest rate risk, foreign currency risk, other price risk, credit risk,
liquidity risk, and the use of derivative and non-derivative financial instruments. Compliance with policies and exposure limits
is reviewed on a continuous basis.

(ii) Market risk

Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, the Company mainly has
exposure to two type of market risk namely: currency risk and interest rate risk. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while optimising the return.

(a) Currency risk

Currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign
exchange rates. The fluctuation in foreign currency exchange rates may have potential impact on the Statement of Profit
and Loss account and equity, where any transaction references more than one currency or where assets/liabilities are
denominated in a currency other than the functional currency of the entity.

The Company is exposed to the effects of fluctuations in prevailing foreign currency exchange rates on its financial position
and cash flows, to the extent of its earnings and expenses denominated in foreign currencies. Considering the countries
and economic environment in which the Company operates, its operations are subject to risks arising fromfluctuations in
exchange rates in those countries. The risks primarily relate to fluctuations in U.S. dollar against the functional currency of
the Company.

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Company''s receivables from customers.

The company''s credit risk primarily arises from Trade receivables and other financial assets viz. Security deposits, Interest
accrued on FD and advances to employees. The company''s maximum exposure to credit risk is limited to the carrying
value of its financial assets at the reporting date.

Since the Company conducts its sales on a credit basis, it is exposed to credit risk from its customers. To mitigate this
risk, the Company has established robust internal controls and credit policies, including credit evaluation of customers,
defined credit limits, and continuous monitoring of outstanding receivables. The Company has a limited history of
customer defaults, and the credit quality of its trade receivables, particularly those that are not overdue, is considered
strong. The Company also assesses expected credit losses on its trade receivables on an ongoing basis. As a result, the
Company does not expect significant credit risk arising from non-performance by its customers or counterparties.

through the Company''s efforts in closely monitoring forecasted and actual cash flows, as well as aligning the maturity
schedules of financial assets and liabilities.

The treasury department oversees liquidity, funding, and settlement management, while senior management supervises
the processes and policies governing these risks. The Company''s financial liabilities primarily consist of long-term and
short-term bank borrowings and trade payables.

The table below presents the maturity schedule of these liabilities, indicating the remaining period from the balance sheet
date to their contractual maturity.

Sensitivity analysis

A reasonably possible strengthening / (weakening) of the Indian Rupee against the below currencies as at March 31, 2026
and March 31, 2025 would have affected the measurement of financial instruments denominated in foreign currency and
affected the Statement of Profit and Loss by the amounts shown below. This analysis is performed on foreign currency
denominated monetary financial assets and financial liabilities outstanding as at the year end. This analysis assumes that
all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

(ii) Interest Rate Risk

Interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Company''s main interest rate risk arises from long-term borrowings with variable rates, which expose
the Company to cash flow interest rate risk. Therefore, the Borrowings are valued at effective Interest rate.

(iii) Liquidity Risk

The Company requires funding for both short-term operational needs and long-term expansion initiatives. It is dedicated
to maintaining a strong liquidity ratio, reducing debt, and strengthening the balance sheet. Liquidity risk is managed

Note: For the purpose of maturity cycle of long-term borrowings & Lease Liabilities, current maturities of the long term
borrowings & Lease liabilities grouped under Current Liabilities have been regrouped to Long term Borrowings. Thus, this
regrouping doesn''t effect the grouping done in the financial statements.

C) Capital Management

For the purpose of the Company''s capital management, capital includes issued equity share capital and all other equity
reserves attributable to the equity holders of the Company.

Management assesses the Company''s capital requirements in order to maintain an efficient overall financing structure.
The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions
and the risk characteristics of the underlying assets.

To maintain or adjust the capital structure, the Company may return capital to shareholders, raise new debt or issue new
shares.

The Company monitors capital on the basis of the debt to capital ratio, which is calculated as interest-bearing debts
divided by total capital (equity attributable to owners of the parent plus interest-bearing debts).

NOTE 48(A): DISCLOSURE PURSUANT TO IND AS 101 “FIRST TIME ADOPTION OF INDIAN
ACCOUNTING STANDARDS”

The company has prepared its Separate Financial statements which complies with IND AS applicable for the year ending as
on March 31, 2026 for comparative purpose for the period ending March 31, 2025. In preparing these financial statements, the
Company''s opening balance sheet has been prepared as at April 1, 2024 being the Company''s date of transition to Ind AS.
This note explains the principal adjustments made by the Company in restating its IGAAP financial statements, including the
balance sheet as at April 1, 2024 and the financial statements for the year ended March 31, 2026.

NOTE 48(B): MAJOR ADJUSTMENTS CARRIED OUT WHILE TRANSITION FROM IGAAP TO
IND AS (CONTD.)

i) Ind AS 116 - Leases

The Company has adopted Ind AS 116, Leases, and, on the date of transition, has recognised the Right-of-Use
(ROU) assets and corresponding lease liabilities at the present value of future lease payments, discounted
using the applicable rate of interest as at the date of transition, in respect of leases outstanding for more than
one year. Accordingly, the ROU assets have been measured at an amount equal to the corresponding lease
liability, subject to adjustments as required under Ind AS 116. The measurement of ROU assets also involves
the computation of depreciation from the relevant lease commencement date up to the date of transition.
Consequently, an adjustment of ^25.02 lakhs has been recognised in retained earnings as at April 1, 2024,
being the beginning of the earliest comparative period presented, in respect of the transition to Ind AS 116.
During FY 2024-25, the Company entered into aircraft lease arrangements and recognised ROU assets and corresponding
lease liabilities amounting to ^25,710.34 lakhs and ^25,188.42 lakhs respectively, in accordance with Ind AS 116. Further, an
adjustment of ^ 221.90 lakhs has been recognised towards the ROU assets and corresponding lease liabilities (net) arising
from Ind AS adjustments in respect of such aircraft and other leases for the FY 24-25."

Financial assets and liabilities were reclassified based on their contractual cash flow characteristics and the business
model in which they are held. Fair valuation of financial instruments, such as investments in equity or debt securities,
was done. This may lead to adjustments in the carrying amount of loans. On the date of transition, the carrying amount
financial assets and liabilities as per IGAAP and IND AS were restated and reclassified.

On the date of transition to Ind AS, security deposits were reclassified from "Other Deposits" under non-current assets
and accounted for in accordance with Ind AS 109, Financial Instruments. The security deposits were bifurcated into (i)
a financial asset representing the present value of the amount receivable upon closure of the respective leases, and
(ii) prepaid lease rentals representing the difference between the initial security deposit paid and its present value,
which is recognised under "Other Non-current Assets". The prepaid lease rentals are amortised over the lease term,
while interest income is recognised on the financial asset representing the present value of the security deposit.
As at the transition date, the original security deposit amounted to ^37.02 lakhs, with a present value of ^27.85
lakhs. The resultant difference of ^8.66 lakhs was recognised as prepaid lease rental. On transition to Ind
AS, an amount of ^0.51 lakhs was adjusted against retained earnings, representing the net impact arising
from the remeasurement of the security deposit and recognition of the corresponding prepaid lease rental.
During FY 2024-25, security deposits amounting to ^2,035.13 lakhs pertaining to aircraft leases were remeasured and
accounted for at amortised cost. Accordingly, ^1,238.54 lakhs was recognised as security deposits at amortised cost and
^758.03 lakhs was recognised as prepaid lease rentals and ^38.56 lakhs was recognised as Forex Loss.

(iii) Ind AS - 21 Effects of Changes in Foreign Exchange Rates

In accordance with Ind AS 21, *The Effects of Changes in Foreign Exchange Rates*, foreign currency monetary
items are translated into the functional currency at the closing exchange rate prevailing at the reporting
date. Accordingly, lease liabilities arising from aircraft leases and security deposits denominated in foreign
currencies are retranslated at the applicable closing exchange rate as at the reporting date. The resulting
exchange differences are recognised in the Statement of Profit and Loss as foreign exchange gain/(loss).
For the year ended March 31, 2025, the Company has recognised a foreign exchange loss of ^652.45 lakhs in the Statement
of Profit and Loss, primarily arising from the translation of foreign currency denominated lease liabilities and security
deposits.

iv) Ind AS 12 - Income Taxes

Upon adoption of Ind AS, deferred tax assets and liabilities were remeasured based on the temporary differences arising
between the carrying amounts of assets and liabilities in the financial statements and their tax bases, using the applicable
tax rates. The impact of remeasurement was recognized in retained earnings as of the transition date. Deferred tax
adjustments also accounted for newly recognized items, such as recognition of ROU Asset and Lease liability. Comparative
figures were restated to reflect these changes. The overall adjustments to ensure compliance with Ind AS 12 "Income
Taxes, On transition date, deferred tax asset has been recognised at amount of Rs.8.71 lakhs. For the FY 25-26, an amount
of Rs. 224.46 Lakhs has been recognised as adjustment to Deferred tax.

(v) Ind AS 37 - Provision for Aircraft Redelivery

Pursuant to the aircraft lease arrangements entered into by the Company, the lessee is contractually required to
undertake certain maintenance and restoration activities to meet the stipulated return conditions of the aircraft at the
end of the lease term. In accordance with Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets, a provision
is recognised when the Company has a present obligation arising from a past event, an outflow of economic resources
is probable, and the amount of the obligation can be reliably estimated. Accordingly, during FY 2024-25, the Company
recognised a provision of ^521.92 Lakhs towards the estimated costs of redelivery of aircraft, measured at the present
value of the expected future expenditure, where the effect of the time value of money is material. The provision is
reviewed at each reporting date and adjusted to reflect the current best estimate of the expenditure required to settle
the obligation. The unwinding of the discount on the provision is recognised as a finance cost in the Statement of Profit
and Loss over the period until the settlement of the obligation.

Employee benefits were adjusted in line with Ind AS 19 "Employee Benefits." Actuarial gains and losses for defined benefit
plans were recognized in other comprehensive income, rather than being deferred or recognized in profit or loss. The
present value of defined benefit obligations were remeasured, with any adjustments impacting retained earnings at the
transition date. Comparative figures were restated to reflect these changes.

On the date of transition, no adjustment was required to retained earnings in respect of defined benefit liabilities, as the
relevant actuarial gains and losses, which were previously recognised as part of interest on the defined benefit obligation,
were reclassified and recognised in Other Comprehensive Income (OCI) in accordance with Ind AS 19.

(vii) Ind AS 8 - Accounting Policies, Changes in Accounting Estimates, and Errors

The company applied Ind AS 8 "Accounting Policies, Changes in Accounting Estimates, and Errors" to ensure consistency
in financial reporting. Changes in accounting policies were applied retrospectively, with adjustments made to prior
periods'' financial statements for comparability. Any errors identified were corrected retrospectively by restating the
relevant prior period figures. Changes in accounting estimates were applied prospectively from the date of change. The
cumulative effects of these adjustments were reflected in the opening balance of retained earnings as of the earliest
period presented.

Following are the errors adjusted on the date of transition i.e as at April 1, 2024

(a) Issues expenses pertaining to Initial Public offer have been written off completely in the year in which it was incurred. As
per the standard, issue expenses can''t be recognised as asset and the asset shall be written off as expenses in the finan¬
cial year in which it was incurred. Thus, the error of carrying the issue expenses is completely treated as expenses and
adjusted against the Securities Premium. The Issue expenses written off amounts to Rs. 370.64 lakhs

(b) Supplemental rent in the nature of maintenance reserves is recognised as an expense when the related maintenance
services are received, rather than being recognised as an asset. Accordingly, the accounting treatment followed in earlier
years, whereby such supplemental rent was recognised as an asset, has been identified as a prior period error in accor¬
dance. The comparative figures have therefore been restated retrospectively, resulting in an adjustment of ^472.27 lakhs
to the previously recognised asset and the corresponding impact on retained earnings.

(c) The Property, Plant and Equipment - Tangible assets and Intangible assets have been carried at a value ( Cost - Accumu¬
lated depreciation). On sale of asset, the accumulated depreciation were not written off. Thus, the accumulated value of
the assets sold have been restated/written off and has been adjusted against the retained earnings amounting to Rs. 0.49
Lakhs.

NOTE 52: EVENTS HAPPENED AFTER THE REPORTING PERIOD

The Company has evaluated all events and transactions occurring after the reporting date up to the date on which these finan¬
cial statements were approved for issue by the Board of Directors. Based on such evaluation, there are no material adjusting or
non-adjusting events after the reporting period requiring adjustment to, or disclosure in, the financial statements other than
those already disclosed (if any).

NOTE 50: DETAILS WITH RESPECT TO THE BENAMI PROPERTIES:

No proceedings have been initiated or pending against the entity under the Benami Transactions (prohibition) Act, 1988 for the
the year ended March 31, 2026.

NOTE 51: UNDISCLOSED INCOME

There is no such income which has not been disclosed in the books of accounts. No such income is is surrendered or disclosed
as income during the year in the tax assessments under Income Tax Act, 1961.

NOTE 56: RELATIONSHIP WITH STRUCK OFF COMPANIES:

No transaction has been made with the company strruck off under section 248 of The Companies Act, 2013 or section 560 of
Companies Act, 1956 during the year ended March 31, 2026.

NOTE 57: REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF
COMPANIES:

All applicable cases where registration of charges or satisfaction is required with Registrar of Companies have been done. No
registration or satisfaction is pending for the period ended March 31, 2026

NOTE 58: COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES:

The Company does not have any subsidiary and accordingly, the provisions relating to compliance with the number of layers
of companies prescribed under clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restriction on
Number of Layers) Rules, 2017 are not applicable.

NOTE 59: LOAN OR ADVANCES GRANTED TO THE PROMOTERS, DIRECTORS AND KMPS
AND THE RELATED PARTIES:

No loan or advances in the nature of loans are granted to the promoters, directors, key managerial persons 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

NOTE 60: PRESENTATION OF FINANCIAL STATEMENTS

Previous year''s figures have been regrouped / reclassified as per the current year''s presentation for the purpose of comparability
in accordance with Schedule III and IND AS requirements.

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