e. Increase in authorised equity share capital:

During the year ended March 31,2023, the Company has in aggregate increased its authorised Equity Share Capital by INR 1,800.00 lacs divided into 1,80,00,000 equity shares of INRl0/-each vide Shareholders' approval at Extraordinary General Meeting (EGM) held on March 06,2023.

f. The company has also alloted 78,15,800 fully paid up equity shares of INR 10/- each on March 16, 2023 pursuant to 1:4 bonus share issue approved by the shareholders in the Extraordinary General Meeting (EGM) held on March 08,2023, by capitalising the amount of INR 781.58 lacs of retained earnings of the company.

(a) Vehicle loan is secured by hypothecation of respective vehicle, payable in 21 monthly instalments and carries interest at 7.46% p.a.

(b) The Company has availed Overdraft facilities from various banks. Overdraft facilities are secured through first pari passu charge by way of hypothecation on current assets and immovable property owned by Directors and personal guaranty of the promoters and carry rate of interest ranging from 8.5% to 11 %. The current outstanding amount of such overdraft facilities is INR 1,705.84 lacs (March 31, 2022: INR 102.13 lacs) against the sanctioned limit of INR 5,336.00 lacs (March 31, 2022: INR 985.00 lacs).

(c) Borrowings from related parties are interest free and repayable on demand.

(d) Quarterly returns or statements of current assets filed by the company with banks or financial institutions are in agreement with the books of accounts except to the following on account of variance of entries posted in routine book closure process which is normally concluded post filing of statements with the banks. This does not have any impact on classification of loan or any debt covenants:-

Micro, Small and Medium Enterprises Development Act

Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) for the year ended March 31, 2023 and for the year ended March 31,2022 is given below. This information has been determined to the extent such parties have been identified on the basis of information available with the Company.

(i) The principal amount and the interest due thereon remaining unpaid to any supplier covered under

(iv) The amount of interest accrued and remaining unpaid at the end of each accounting year

(v) The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are actually paid to the small enterprise for the purpose of disallowance as a deductible expenditure under section 23 of the MSMED Act, 2006

Due to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditor.

(iii) Undrawn committed borrowing facility

The Company has been sanctioned working capital demand loan facility from various banks aggregating to INR 5,336.00 lacs (March 31,2022: INR 985.00 lacs). This loan is secured by way of first pari passu charge on current assets (book debts), both present and future of the company. An amount of INR 3,630.16 lacs (March 31,2022: INR 882.87 lacs) remains undrawn as at the year end.

29 Segment Reporting

A. Basis for segmentation

The operations of the Company are limited to one segment viz. "Air Cargo Service", which as per AS -17 "Segment Reporting" is considered the only reportable segment.

B. Geographic Segment

The Company provides all its services only from its offices located in India and does not have any separate identifiable geographic segment.

C. Major Customer

There are no single customers which accounted for 10% or more of the Company's revenue.

30 Related Party Disclosures

In accordance with the requirements of Accounting Standard (AS) - 18 'Related Party Disclosures’ the names of the related party where control exists/able to exercise significant influence along with the aggregate transactions / year end balances with them.

31 Employee Benefits

The Company participates in defined contribution and benefit schemes, the assets of which are held (where funded) in separately administered funds.

For defined contribution schemes the amount charged to the statement of profit or loss is the total of contributions payable in the year.

A. Defined contribution plan

The Company makes contributions towards provident fund and employee state insurance scheme to a defined contribution retirement benefit plan for qualifying employees. The Company's contribution to the Employees Provident Fund and Employees State Insurance scheme is deposited with the Regional Provident Fund Commissioner. Under the scheme, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits.

During the year, the Company has recognised I NR 3.65 Lacs (Previous year INR 3.22 Lacs) for Employer's contributions to the Provident Fund and INR 0.20 Lacs (Previous year INR 0.31 Lacs) for Employee State Insurance Scheme contribution in the Statement of Profit and Loss. The contribution payable to the plan by the Company is at the rate specified in rules to the scheme.

B. Defined benefit plan - Gratuity plan

The gratuity liability arises on retirement, withdrawal, resignation and death of an employee. The aforesaid liability is calculated on the basis of fifteen days salary (i.e. last drawn basic salary) for each completed year of service subject to completion of five years service.

Risks associated with Plan Provisions

Risks associated with the plan provisions are actuarial risks. These risks are:- (i) interest risk (discount rate risk), (ii) mortality risk and (iii) salary risk.

Interest risk (discount rate risk) A decrease in the bond interest rate (discount rate) will increase the plan liability.

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan Mortality risk participants. For this report we have used Indian Assured Lives Mortality (2012-14) ultimate table.

A change in mortality rate will have a bearing on the plan's liability.

The present value of the defined benefit plan liability is calculated with the assumption of salary increase rate of plan participants in Salary risk future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine

the present value of obligation will have a bearing on the plan's liability.

In respect of the plan in India, the most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were earned out as at March 31,2023 by Charan Gupta Consultants Private Limited. The present value of defined benefit obligation, and the related current service cost and past service cost were measured using the projected unit credit method.

The following tables summarise the components of net benefit expense recognized in the statement of profit and loss and amounts recognized in the balance sheet for the gratuity plan.

The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it come into effect and will record any related impact in the period the Code becomes effective. Based on a preliminary assessment, the Company believes the impact of the change will not be significant.

41 Other Information

(i) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(ii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(iii) 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

(iv) The Company have 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 (Uitimate Beneficiaries) or

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

(v) 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

Subsequent to the year ended March 31, 2023, the Company was converted to a Public Limited Company and accordingly was granted a Certificate of Incorporation consequent upon conversion to Public dated April 25,2023.

Subsequent to the year ended March 31,2023, the Company has completed its Initial Public Offer (IPO) of 35,40,000 equity shares of face value of I NR 10 each at and issue price of INR 103 per

43 share. The issue comprised of 100% fresh issue aggregating to INR 3,646.20 lacs. Pursuant to the IPO, the equity shares of the Company were listed on National Stock Exchange of India Limited (NSE) on August 9,2023.

44 There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

45 The Company has regrouped/reclassified certain balances of previous year to conform with current year's presentation.