2.10 Provisions

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

2.11 GST input credit

GST input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilizing the credits.

2.12 IPO Expense

IPO expenses are debited to the Share Premium account under reserve and surplus.

2.13 Property, Plant & Equipment and Intangible Assets

Property, Plant & Equipment and Intangible Assets are stated at their original cost and include all expenses relating to their acquisition and installation.

2.14 Depreciation Amortization

• Depreciation on Property, Plant & Equipment and Intangible Assets has been provided on written down value method in terms of life span of assets as specified in Schedule II of the Companies Act, 2013. In Schedule II of Companies Act 2013 no useful life particularly for Drones is mentioned, thus, the company has considered the useful life of Drones under Plant and Machinery of five (5) years.

• Depreciation on lease hold improvement is amortised on period of lease including the first extendable lease period.

2.15 Impairment/Discarding of Assets

The company periodically assesses using internal sources (keeping in view the nature of assets at present) whether there is an indication that an asset may be impaired. The difference between the book value and recoverable value of relevant assets being Impairment loss, when crystallizes, is charged against revenue of the year.

2.16 Foreign Currency Transactions

Foreign exchange transactions during the year are recorded at the exchange rate prevailing on the date of the transaction. Gains or losses arising out of fluctuations in exchange rate between transaction date and settlement date are recognized in the Statement of Profit and Loss.

2.17 Current and non-current classification

All assets and liabilities are classified into current and non-current.

Assets

An asset is classified as current when it satisfies any of the following criteria :-

It is expected to be realized in, or is intended for sale or consumption in, the company's normal operating cycle,

It is held for the purpose of being traded,

It is expected to be realized within 12 months after the reporting date, or

It is cash or cash equivalents unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial Assets.

All other assets are classified as non-current.

Liability

A Liability is classified as current when it satisfies any of the following criteria:-It is expected to be settled in the company's normal operating cycle,

It is held Primarily for the purpose of being traded,

It is due to be settled within 12 months from the reporting date, or

The company does not have an unconditional right to defer settlement of liability at least 12 months after the reporting date. Terms of the liability that could at the option of the counter party, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include the current portion of non-current financial liabilities.

All other liabilities are classified as non-current.

2.18 Cash and cash Equivalents

Cash and cash equivalent Cash and cash equivalents comprise cash balances on hand, cash balance with bank and highly liquid investments with original maturities, at the date of purchase/investment, of three months or less.

2.19 Operating Cycle

Operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents, Based on the nature of activities and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle within twelve months for the purposes of current/ non-current classification of its assets and liabilities

Note - 28 Segment Reporting (AS 17)

The company operates only in one segment i.e. "Providing of services related to drone industry and trading" Accordingly, There is no separate reporting segments as per AS 17 'Segment Reporting'.

Note - 29 Disclosures under Accounting Standards (AS 18)

As per Accounting Standard 18 on ''Related Party Disclosure" prescribed by the companies (Accounting Standards) Rules, 2006 issued by the central government, in consultation with the National Advisory Committee on Accounting Standards, the disclosure of transactions with the related parties as defined in the Accounting standard are given below:-

The lease rentals charged during the year and maximum obligation on long term, non cancellable operating leases payable are as per the rentals in the respective agreements. Lease payments made under operating leases amounting to Rs. 45,51,277.11 (PY Nil) have been recognised as an expense in the statement of profit and loss. Most of the leases entered by the company are medium and long term in nature and the underlying leases are commensurate with company's current and future operational plan.

The total of future minimum lease payments under non cancellable operating lease are as follows:

Note - 33 Borrowings from Banks and Financial Institutions on the basis of security against Current Assets

The company has availed an OD limit against security of Fixed Deposit. There is no requirement to submit the quarterly returns to the Bank.

Note - 34

There are no loans and advances in the nature of loans which are granted to related parties ( as defined under Companies Act 2013) that are

Note - 38 Transaction with companies struck off under section 248/56 of Companies Act, 2013.

The company has no transactions with any struck off companies u/s 248 of the Act.

Note - 39 Statutory Fillings with MCA

a) The company has filed AOC-4 and MGT-7 for the FY ending 2023 on 12th July 2023.

Filing of Annual Return in form AOC-4 is after the prescribed due date and filing of MGT- 7 is within due date.

Note - 40 Other Notes

(i) Financial statements are prepared as per requirement of the Schedule III of the Companies Act, 2013.

(ii) During the year the company has issued bonus shares in the ratio of 5:2 on 15/5/2023 before the IPO.

(iii) During the year the company has issued 68 lakh shares of face value of Rs. 10/- at a premium of Rs. 55/- per share through an IPO and got listed on NSE Emerge- on 21/07/2023.

(iv) Trade Receivables include receivables outstanding for more than 1 year for which confirmations from party is pending for Rs. 1,52,80,517.96. The Management believes the amount is fully recoverable hence no provision on doubtful debt has been considered for the same.

(v) Out of the trade payables to MSME which are beyond the due date which are for purchase of capital goods are not considered as disallowable u/s 43B(h) of the income tax act 1961 for the purpose of calculation of the income tax liability.

(vi) In the opinion of the Board of Directors and Management, all the assets other than, Property, Plant and Equipment, Intangible assets and non-current investments have a value on realisation in the ordinary course of business which is at least equal to the amount at which they are stated.

(vii) The Company does not have any immovable property whose title deed is not held in name of the company.'

(viii) The company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

(ix) The Company has complied with the number of layers for its holding in downstream companies prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

(x) Company has not advanced or loaned or invested funds to any other person(s) or entity(is), 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.

(xi) The Company has not received any fund from any person(s) or entity(is), 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.

(xii) The Company does not have any 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.

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

Note - 41 Previous year's figures

Previous year figures have been regrouped/rearranged wherever considered necessary to make them comparable with current year figures.

Note No. 1 to 42 form integral part of Balance Sheet & Profit & Loss A/c

For G A M S & ASSOCIATES LLP For and on behalf of the Board of Directors

Chartered Accountants Drone Destination Limited

Firm Regn. No. N500094

Sd/- Sd/-

Sd/- Chirag Sharma Shashi Bala

Managing Director Director

DIN :05271919 DIN :01547327

CA S C Singhal Sd/- Sd/-

Partner

M. No. 088157 Shekhar Ayushi Gupta

Place: New Delhi Chief Financial Officer Company Secretary

Date: 24th May 2024 PAN:BOHPS5173L M No. A49249