(p) PROVISIONS AND CONTINGENT LIABILITIES &
ASSETS

Provisions are 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 of the obligation. If the effect of the time
value of money is material, provisions are discounted
using equivalent period government securities interest
rate. Unwinding of the discount is recognised in the
Standalone statement of profit and loss as a finance
cost. Provisions are reviewed at each balance sheet date
and are adjusted to reflect the current best estimate.

Contingent liabilities are disclosed when there is
a possible obligation arising from past events, the
existence of which will be confirmed only 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 either not probable that an outflow of
resources will be required to settle or a reliable estimate
of the amount cannot be made. Information on
contingent liability is disclosed in the Notes to the
Standalone Ind AS financial statements.

Contingent assets are not recognised. However, when
the realisation of income is virtually certain, then the
related asset is no longer a contingent asset, but it is
recognised as an asset.

(q) OPERATING SEGMENTS

The Company is exclusively engaged in the business
of manufacture and marketing of UAV systems which
are used for security and surveillance. The ancillary
business of providing training and maintenance service
revolve around the main business of manufacture and
marketing of UAV systems. Based on Management
Approach , the Chief Operating Decision Maker
evaluates the Company's performance and allocates
the resources based on an analysis of overall country
level performance indicators.

The Company prepares its segment information in
conformity with the accounting policies adopted for
preparing and presenting the financial statements of
the Company as a whole."

3 RECENT PRONOUNCEMENT

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time.

In May 2025, MCA notified amendments to Ind AS 21
- The Effects of Changes in Foreign Exchange Rates,
applicable w.e.f. April 1, 2025. The Company has
reviewed the amendment and based on its evaluation
has determined that it does not have any significant
impact in its financial statements.

In August 2025, MCA notified the following
amendments to:

Ind AS 1, Presentation of Financial Statements,
applicable w.e.f. April 1, 2025 - The amendment relates
to classification of liabilities as current or non-current
and non-current liabilities with covenants. In the
context of classifying a liability as current, it removes the
requirement of existence of a right to defer settlement
for at least 12 months after the reporting date and
instead requires that the said right should exist on the
reporting date and have substance. The amendment
also introduces guidance on classification of liabilities
with covenants. The Company has no impact of these
amendments in its classification criteria of current and
non-current liabilities.

Ind AS 7, Statement of Cash Flows and Ind AS 107,
Financial Instruments: Disclosures, applicable w.e.f.
April 1, 2025 - The amendment in Ind AS 7 requires to
inform users of financial statements of the existence of
supplier finance arrangements and explain the nature
of the arrangements, the carrying amount of liabilities
and the range of payment due dates. Ind AS 107 has
been amended to add supplier finance arrangements as
a factor that may cause concentration of liquidity risk.
The Company has reviewed the amendment and based
on its evaluation has determined that it does not have
any impact in its financial statements.

Ind AS 12, International Tax Reform - Pillar Two Model
Rules applicable immediately - The amendments
provide a temporary mandatory relief from deferred
tax accounting for top-up tax and disclose that they
have applied the relief. This relief is immediate and
applies retrospectively. The Company has reviewed
the amendment and based on its evaluation has
determined that it does not have any impact in its
financial statements.

Note :

(i) There are no loans due by directors or other officers of the company or any of them either severally or jointly with
any other persons or amounts due by firms or private companies respectively in which any director is a partner or a
director or a member.

(ii) There are no loans or advances in the nature of loans are granted to promoters, directors, Key management
personnel (KMP) 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.

(b) Rights, preferences and restrictions attached to equity shares:

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and
share in the Company's residual assets. The equity shares are entitled to receive dividend as declared from time to time.
The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up
equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums
presently payable have not been paid.

Failure to pay any amount called up on shares may lead to forfeiture of the shares.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company,
remaining after distribution of all preferential amounts in proportion to the number of equity shares held and after
payment to the secured and unsecured loan.

B. Nature and purpose of reserves:

Securities Premium - Securities premium is used to record the premium on issue of shares. Securities premium is utilised
in accordance with the provisions of the Act.

General Reserve - On redemption of the debentures for which the debenture redemption reserve was created, the
Company has transferred the balance in the debenture redemption reserve to the General Reserve.

Share Based Payment Reserve - The fair value of the equity-settled share based payment transactions is recognised in
Standalone statement of profit and loss with corresponding credit to Share Based Payment Reserve and utilised on issue
of shares.

Retained Earnings - Retained earnings are the profits that the company has earned till date or losses incurred till date,
less any transfers to general reserve, dividends or other distributions paid to shareholders.

Note - NR 0.00 denotes amount less than NR 5,000

Secured :

Note (a (i)): Cash credit (fund and Non fund based) facility taken from HDFC Bank Limited and carries interest based
prevalent base rate plus margin (31 March 2026: 8.25%, 31 March 2025: 9.03% p.a) on actual amount utilised and the
same is repayable on demand. The overdraft facility is secured by personal guarantee of promoters and pari passu charge
over over book debts, inventories (excluding inventory of infantry project), movable assets and others assets acquired by
the Company.

Note (a (ii)): Cash credit (fund and Non fund based) facility taken from Axis Bank Limited and carries interest based
prevalent base rate plus margin (March 31, 2026 : 8.25% p.a, and March 31, 2025 : 9.25% p.a), on actual amount utilised
and the same is repayable on demand. The overdraft facility is secured by personal guarantee of promoters and pari
passu charge over book debts, inventories (excluding inventory of infantry project), movable assets and others assets
acquired by the Company.

Note (a (iii)): Cash credit (cashflow deficit and Non fund based) facility taken from Exim Bank and carries interest based
prevalent base rate plus margin (March 31, 2026 :8.50% and March 31, 2025 :9.50%). The Company has obtained cash
credit facility with sanctioned amount of INR 1500.00 million carries interest based prevalent base rate plus margin for
Infantry project and this overdraft facility is secured by personal guarantee of promoters and pari passu charge over book
debts (only for Infantry project), inventories (only for Infantry project), movable assets and others assets acquired by the
Company.

Note : The Company has filed monthly returns/statements of current assets with banks and the amounts reported are in
agreement with the books of account.

Critical estimates in calculating amounts

The Company has recognised revenue amounting to INR 2194.91 million for March 31, 2026, INR 1588.55 million for
March 31, 2025, for sale of product UAVs and spare items to customers . The buyers have the right to warranty for the
product sold as per the respective contracts. The company believes that, based on past experience with similar sales of
products, the warranty rate will not exceed 0.90%. The company has, therefore, recognised revenue on these transactions
with a corresponding provision against revenue for estimated warranty.

(iii) Assumptions

With the objective of presenting the plan obligations of the defined benefits plans at their fair value on the Balance Sheet,
assumptions under Ind AS 19 are set by reference to market conditions at the valuation date.

The obligations are measured at the present value of estimated future cash flows by using a discount rate that is
determined with reference to the market yields at the Balance Sheet date on Government Bonds, which is consistent with
the estimated terms of the obligation.

The estimates of future salary increases, considered in actuarial valuation, takes into account of inflation, seniority,
promotion and other relevant factors, such as supply and demand in the employment market.

On November 21, 2025, the Government of India notified the four Labour Codes—the Code on Wages, 2019, Industrial
Relations Code, 2020, Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code,
2020—consolidating 29 existing labour laws. The Ministry of Labour & Employment published draft Central Rules and
FAQs to enable assessment of the financial impact due to changes in regulations. The Company has assessed and

34. SHARE BASED PAYMENT

EMPLOYEE STOCK OPTION SCHEME, 2018 (EMPLOYEE STOCK OPTION PLAN) (ESOS/ESOP)

By way of a resolution passed by the Board on April 10, 2018 and a resolution passed by shareholders on May 2,2018,
ESOS or ESOP 2018 was instituted pursuant to a resolution. The ESOP 2018 was amended by our Company pursuant to
a resolution of our Board on December 9, 2020 and resolution dated December 31, 2020 of our Shareholders.

The ESOP 2018 was subsequently amended by our Company pursuant to a resolution of our Board on March 25, 2022
and resolution dated April 28, 2022 of our Shareholders. The maximum number of options which can be granted under
ESOP 2018 is 21,935 options (prior to any bonus issue or Split of equity shares).

The primary objective of the plan is to reward the key employee for his association, dedication and contributions to the
goals of the company. The plan is established is with effect from May 2, 2018 on which the shareholders of the Company
have approved the plan by the way of special resolution and it shall continue to be in force until its termination by the
Company as per provisions of Applicable laws, or the date on which all of the Options available for issuance under the
plan have been issued and exercised , whichever is earlier.

D. Details of guarantees of key management personnel:

i) Personal guarantee for borrowings taken by the Company of Mr. Ankit Mehta, Mr. Rahul Singh, Mr. Ashish Bhat
and Mr. Vipul Joshi given to Axis bank, HDFC bank and Export Import Bank of India in FY 2025-26.

36. OPERATING SEGMENT

The Company is exclusively engaged in the business of manufacture and marketing of UAV systems which are used for
security and surveillance. The ancillary business of providing training and maintenance service evolve around the main
business of manufacture and marketing of UAV systems. Based on Management Approach, the Chief Operating Decision
Maker evaluates the Company's performance and allocates the resources based on an analysis of overall country level
performance indicators.

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and
presenting the financial statements of the Company as a whole.

The Chief Executive Officer of the Company, who is responsible for allocating resources and assessing performance of the
operating segments, has been identified as the Chief Operating Decision Maker (CODM).

There is only one reporting segment and has no reportable segment as per IND AS 108 - Operating Segment

37. CAPITAL MANAGEMENT

The Company defines capital as total equity including issued equity capital, share premium and all other equity reserves
attributable to equity holders of the Company (which is the Company's net asset value). The Company manages its capital
so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders. The capital structure
of the Company is based on management's judgement of its strategic and day-to-day needs with a focus on total equity
so as to maintain investor, creditors and market confidence.

The Company monitors capital using a ratio of 'adjusted net debt' to 'adjusted equity'. For this purpose, adjusted net
debt is defined as total liabilities, comprising interest-bearing loans and borrowings less cash and cash equivalents.
Adjusted equity comprises all components of equity.

The fair value of financial instruments as referred to in note (A) above have been classified into three categories
depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in
active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level
3 measurements).

Level 1: Quoted prices for identical instruments in an active market;

Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and
Level 3: Inputs which are not based on observable market data.

The fair values of the financial assets and liabilities are defined as the price that would be received on sale of an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and
assumptions used to estimate the fair values are consistent with those used for the year ended March 31, 2026 and
March 31, 2025.

Financial assets and liabilities measured at fair value as at Balance Sheet date:

The fair values of investments in mutual fund units is based on the net asset value ('NAV') as stated by the issuers of these
mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will
issue further units of mutual fund and the price at which issuers will redeem such units from the investors.

Other financial assets and liabilities

Fair value of financial assets and liabilities measured at amortised cost (cash and cash equivalents, other bank balance,
trade receivables, other financial assets, trade payables, borrowings, lease liabilities and other financial liabilities) is not
materially different from the amortised cost. Further, impact of time value of money is not significant for the financial
instruments classified as current. Accordingly, the fair value has not been disclosed separately as it approximates the
carrying value.

39. FINANCIAL RISK MANAGEMENT

The Company's business activities are exposed to a variety of financial risks, namely liquidity risk, market risk and credit
risk. The Company's senior management has the overall responsibility for establishing and governing the Company's
risk management framework. The Company has constituted a Risk Management Committee, which is responsible for
developing and monitoring the Company's risk management policies. The Company's risk management policies are
established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and
controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key
risks and mitigating actions are also placed before the Audit Committee of the Company.

(A) Credit risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or fail to pay
amounts due causing financial loss to the Company. The potential activities where credit risks may arise include
from cash and cash equivalents and security deposits and principally from credit exposures to customers relating
to outstanding receivables. The maximum credit exposure associated with financial assets is equal to the carrying
amount. Details of the credit risk specific to the company along with relevant mitigation procedures adopted have
been enumerated below:

Trade receivables

The Company's exposure to credit risk is the exposure that Company has major business dealings with few parties
to whom sales are made on credit basis and the contracted consideration is yet to be received.

The Company provides for allowance for impairment that represents its estimate of expected losses in respect of
trade and other receivables. The Company has used a practical expedient by computing the expected credit loss
allowance for trade receivables based on a simplified provision matrix.

The Company has considered an assessment of past history and has taken into account various factors including
future forecast conditions for determination of allowance for expected credit loss.

Refer to note 9 for ageing for trade receivables from the due date of payment.

The provision for impairment of trade receivables, movement of which has been provided in note 9

Other financial assets

The Company maintains exposure in cash and cash equivalents and term deposits with banks. The Company has
set counter-party limits based on multiple factors including financial position, credit rating, etc. The Company's
maximum exposure to credit risk as at March 31, 2026 and March 31, 2025 is the carrying value of each class of
financial assets.

(B) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are proposed to be settled by delivering cash or other financial asset. The Company's financial
planning has ensured, as far as possible, that there is sufficient liquidity to meet the liabilities whenever due, under
both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's
reputation.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet
operational needs. Any short-term surplus cash generated, over and above the amount required for working capital
management and other operational requirements, is retained as cash and cash equivalents (to the extent required)
and any excess is invested in interest bearing term deposits with appropriate maturities to optimise the cash returns
on investments while ensuring sufficient liquidity to meet its liabilities.

(C) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will
affect the Company's income or the value of its holdings of financial instruments.

The Company size and operations result in it being exposed to the following market risks that arise from its use of
financial instruments:

- currency risk

- price risk

- interest rate risk

(i) currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in
foreign exchange rates. The functional currency of the Company is Indian Rupees . The Company does not enter into
any derivative instruments for trading or speculative purposes. The Company's borrowings are all in Indian rupees.

(ii) Price risk

The Company is mainly exposed to the price risk due to its investment in mutual funds and bonds. The price risk
arises due to uncertainties about the future market values of these investments. The Company has laid policies and
guidelines which it adheres to in order to minimise price risk arising from investments in mutual funds and bonds

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased /
decreased profit or loss by amounts shown below. This analyses assumes that all other variables, in particular,
foreign currency exchange rates, remain constant. This calculation also assumes that the change occurs at the
balance sheet date and has been calculated based on risk exposures outstanding as at that date. The year end
balances are not necessarily representative of the average debt outstanding during the year.

Note: In respect of Supreme Court Judgement on which allowances paid to the employees should be identified for
inclusion in basic wages for the purposes of computation of Provident Fund contribution. In view of the management,
the liability for the period from the date of the SC order to March 31, 2019 is not significant and has not been given effect
to in the books of account.

There are no other contingent liabilities as on March 31, 2026: INR Nil (March 31, 2025: INR Nil)

C. Contingent assets

There are no other contingent Assets as on March 31, 2026 : INR Nil (March 31, 2025:INR Nil)

42. OTHER STATUTORY DISCLOSURES

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.

(ii) The Company have not traded or invested in Crypto currency or Virtual Currency during reporting periods.

(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 (Ultimate Beneficiaries) or

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

(v) 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)

(vi) The Company does not have any borrowings from banks and financial institutions that are used for any other
purpose other than the specific purpose for which it was taken at the reporting balance sheet date.

(vii) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.

(viii) The Company is not declared as a wilful defaulter by any bank or financial institution or other lender during the any
reporting period.

(ix) The Company shall disclose as to whether the fair value of investment property (as measured for disclosure purposes
in the financial statements) is based on the valuation by a registered valuer as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017. Since, the Company does not have any investment property during
any reporting period, the said disclosure is not applicable.

(x) Section 8 of the Companies Act, 2013 companies are required to disclose grants or donations received during the
year. Since, the Company is not covered under Section 8 of the Companies Act, 2013, the said disclosure is not
applicable.

(xi) There are no scheme of arrangements which have been approved by the Competent Authority in terms of sections
230 to 237 of the Companies Act, 2013 during the reporting periods.

(xii) The Company has not identified any transactions or balances in any reporting periods with companies whose name
is struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

(xiii) There are no charge or satisfaction yet to be registered with ROC beyond the statutory period by the company as at
the reporting periods.

(xiv) The Company has neither declared nor paid any dividend during the reporting period.

43. MANAGERIAL REMUNERATION

The remuneration paid by the Company to its Chief Executive Officer and three whole time directors during the current
year, is in accordance with the provisions of Section 197 read with Schedule V to the Act. The remuneration paid to the
Chief Executive Officer and three whole time directors is as per the limits laid down under Section 197 read with Schedule
V to the Act and as approved by the shareholder's for the Chief Executive Officer and two whole time directors through
special resolution in the Annual General Meeting held on July 31, 2025 and for one whole time director through special
resolution in postal ballot dated September 6, 2025.

44. UTILISATION OF IPO PROCEEDS

During the quarter ended 30 September, 2023, the Company has completed its initial public offer ("IPO") of 84,41,764
equity shares of face value of INR 10 each at an issue price of INR 672 per share (including share premium of INR 662
per share) consisting of a fresh issue of 35,72,052 equity shares aggregating to INR 2,400 million and an offer for sale of
48,69,712 equity shares aggregating to INR 3,272.45 million. The equity shares of the Company were listed on National
Stock Exchange of India Limited (NSE) and BSE Limited (BSE) w.e.f. 7 July, 2023. Expenses incurred by the Company in
connection with the IPO have been recovered from the selling shareholders.

The total offer expenses in relation to the fresh issue are INR 148.40 million.

45. CORPORATE SOCIAL RESPONSIBILITY (CSR)

The aggregate amount of expenditure incurred during the year by the Company on Corporate Social Responsibility (CSR)
is INR 3.10 million (previous year INR 9.84 million) and is shown separately under note 31 based on Guidance Note on
Accounting for Expenditure on CSR Activities issued by the ICAI.

As per section 135 of the Companies Act, 2013, the Following year wise amount was utilized as financial contribution
towards CSR Activities:

46. SUBSEQUENT EVENTS

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to the
approval of financial statements to determine the necessity for recognition and/or reporting of subsequent events and
transactions in the financial statements. As of April 30, 2026, there were no subsequent events and transactions to be
recognized or reported that are not already disclosed.

Material Accounting Policies and Notes on Accounts form an integral part of the Standalone Financial statements.