q) Provisions

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 a current pre-tax
rate that reflects, when appropriate, the risks specific
to the liability. These estimates are reviewed at each
reporting date and adjusted to reflect the current
best estimates. The expense relating to a provision
is recognised in the statement of profit and loss.

r) Financial instruments

A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

All financial assets (except trade receivables) are
recognised initially at fair value plus transaction

costs that are attributable to the acquisition of
the financial asset. Transaction costs directly
attributable to the acquisition of financial assets
or financial liabilities at fair value through profit or
loss are recognised immediately in profit or loss.
Except for those trade receivables that do not
contain a significant financing component and are
measured at the transaction price in accordance
with Ind AS 115. The Company applies Expected
Credit Loss (ECL) model for measurement and
recognition of impairment loss.

Subsequent measurement

For purposes of subsequent measurement,
financial assets are classified in four categories:

• Debt instruments at amortised cost;

• Debt instruments at fair value through other
comprehensive income ('FVTOCI');

• Debt instruments and derivatives at fair value
through profit or loss ('FVTPL'); or

• Equity instruments at fair value through profit
or loss ('FVTPL') or at fair value through other
comprehensive income ('FVTOCI')

Debt instruments at amortised cost

A 'debt instrument' is measured at the amortised
cost if both the following conditions are met:

a. The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows; and

b. Contractual terms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest ('SPPI') on
the principal amount outstanding.

This category is the most relevant to the Company.
After initial measurement, such financial assets
are subsequently measured at amortised cost
using the effective interest rate ('EIR') method.
Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The
EIR amortisation is included in finance income in
the statement of profit and loss. The losses arising
from impairment are recognised in the statement
of profit and loss.

Debt instrument at FVTOCI

A 'debt instrument' is classified as at the FVTOCI if
both of the following criteria are met:

a. The objective of the business model is
achieved both by collecting contractual cash
flows and selling the financial assets; and

b. The asset's contractual cash flows represent
SPPI.

Debt instruments included within the FVTOCI
category are measured initially as well as at each
reporting date at fair value. Fair value movements
are recognized in the other comprehensive income
('OCI'). However, the Company recognizes interest
income, impairment losses and reversals and
foreign exchange gain or loss in the statement
of profit and loss. On derecognition of the asset,
cumulative gain or loss previously recognised in
OCI is reclassified to statement of profit and loss.
The Company does not have any debt instrument
as at FVTOCI.

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments.
Any debt instrument, which does not meet the
criteria for categorization as at amortized cost or
as FVTOCI, is classified as at FVTPL.

In addition, the Company may elect to designate a
debt instrument, which otherwise meets amortized
cost or FVTOCI criteria, as at FVTPL. However,
such election is allowed only if doing so reduces
or eliminates a measurement or recognition
inconsistency (referred to as 'accounting
mismatch'). The Company has not designated any
debt instrument as at FVTPL.

Debt instruments included within the FVTPL
category are measured at fair value with all
changes recognized in the statement of profit
and loss. The Company does not have any debt
instrument at FVTPL.

Equity investments

All equity investments in scope of Ind AS 109 are
measured at fair value. Equity instruments which
are held for trading are classified as at FVTPL.
For all other equity instruments, the Company
decides to classify the same either as at FVTOCI or
FVTPL. The Company makes such election on an
instrument-by-instrument basis. The classification
is made on initial recognition and is irrevocable.

If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends,
are recognized in the OCI. There is no recycling
of the amounts from OCI to statement of profit
and loss, even on sale of investment. However, the
Company may transfer the cumulative gain or loss
within equity.

Equity instruments included within the FVTPL
category are measured at fair value with all
changes recognized in the statement of profit and
loss. The Company has classified its investments

in mutual funds as investments at FVTPL and
investments in unquoted equity instruments as
investments in OCI.

Derecognition

The Company derecognises a financial asset when
the contractual rights to the cash flows from the
asset expire, or when it transfers the financial
asset and substantially all the risks and rewards
of ownership of the asset to another party. If the
Company neither transfers nor retains substantially
all the risks and rewards of ownership and continues
to control the transferred asset, the Company
recognises its retained interest in the asset and an
associated liability for amounts it may have to pay.
If the Company retains substantially all the risks
and rewards of ownership of a transferred financial
asset, the Company continues to recognise the
financial asset and also recognises a collateralised
borrowing for the proceeds received.

On de-recognition of a financial asset in its entirety,
the difference between the asset's carrying
amount and the sum of the consideration received
and receivable is recognised in the statement of
profit and loss.

Impairment of financial assets

The Company applies expected credit loss model
for recognising impairment loss on financial assets
measured at amortised cost.

The Company follows 'simplified approach' for
recognition of impairment loss allowance on trade
receivables. The application of simplified approach
does not require the Company to track changes
in credit risk rather, it recognises impairment loss
allowance based on lifetime expected credit loss
('ECL') at each reporting date, right from its initial
recognition.

For recognition of impairment loss on loans and
other financial assets, the Company determines
that whether there has been a significant increase
in the credit risk since initial recognition. If credit
risk has not increased significantly, 12-month ECL
is used to provide for impairment loss. However,
if credit risk has increased significantly, lifetime
ECL is used. If, in a subsequent period, credit
quality of the instrument improves such that there
is no longer a significant increase in credit risk
since initial recognition, then the entity reverts to
recognising impairment loss allowance based on
12-month ECL.

Lifetime ECL are the expected credit losses
resulting from all possible default events over
the expected life of a financial instrument. The
12-month ECL is a portion of the lifetime ECL

which results from default events that are possible
within 12 months after the reporting date.

As a practical expedient, the Company uses a
provision matrix to determine impairment loss
allowance on portfolio of its trade receivables. The
provision matrix is based on its historically observed
default rates over the expected life of the trade
receivables and is adjusted for forward-looking
estimates. At every reporting date, the historical
observed default rates are updated and changes in
the forward-looking estimates are analysed.

Impairment loss allowance (or reversal) for the
year is recognized in the statement of profit and
loss.

Financial liabilities

Initial recognition and measurement

All financial liabilities are recognised initially at
fair value and, in the case of financial liabilities
at amortized cost, net of directly attributable
transaction costs.

Subsequent measurement

All financial liabilities (except derivatives and fair
value liabilities) are subsequently measured at
amortised cost using the effective interest rate
method.

The effective interest method is a method of
calculating the amortised cost of a financial liability
and of allocating interest expense over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash payments
(including all fees and points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the financial liability,
or (where appropriate) a shorter period, to the net
carrying amount on initial recognition.

Derecognition

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the terms
of an existing liability are substantially modified,
such an exchange or modification is treated as
the derecognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
statement of profit and loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset
and the net amount is reported in the balance

sheet if there is a currently enforceable legal right
to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.

Investments in equity instruments of subsidiaries

These are measured at cost in accordance with Ind
AS 27 'Separate Financial Statements'.

s) Inventories

Inventories comprising expendable aircraft spares,
miscellaneous stores and in-flight inventories
which are valued at cost or net realizable value,
whichever is lower after providing for obsolescence
and other losses, where considered necessary. Cost
includes cost of purchase and other costs incurred
in bringing the inventories to their present location
and condition and is determined on a weighted
average basis. Net realisable value is the estimated
selling price in the ordinary course of business,
less the estimated costs of completion and the
estimated costs necessary to make the sale.

t) Manufacturers' incentives

Cash incentives

The Company receives incentives from original
equipment manufacturers ('OEMs') of aircraft
components in connection with acquisition of
aircraft and engines. In case of owned aircraft,
incentives are recorded as a reduction to the cost
of related aircraft and engines. In case of aircraft
and engines held under leases, the incentives are
recorded as reduction to the carrying amount of
right to use assets at the commencement of lease
of the respective aircraft.

Where the aircraft is held under finance lease as
per erstwhile Ind AS, the milestone incentives are
deferred and recognised under the head 'Other
operating revenue' in the statement of profit and
loss, on a straight line basis over the remaining
initial lease period of the respective aircraft for
which the aircraft is expected to be used. In case of
prepayment of finance lease obligations for aircraft
taken on finance lease and consequently taking
the ownership of the aircraft, before the expiry of
the lease term, the unamortised balance of such
deferred incentive is recorded as a reduction to the
carrying value of the aircraft.

Non-cash incentives

Non-cash incentives relating to aircraft are
recorded as and when due to the Company by
setting up a deferred asset and a corresponding
deferred incentive. These incentives are recorded
as a reduction to the cost of related aircraft and
engines in case of owned aircraft. In case of aircraft

held under leases, the incentives are recorded as
reduction to the carrying amount of right to use
assets at the commencement of lease of the
respective aircraft. The deferred asset explained
above is reduced on the basis of utilization against
purchase of goods and services.

u) Commission to agents

Commission expense is recognized as an expense
coinciding with the recognition of related revenues
considering various estimates including applicable
commission slabs, performance of individual
agents with respect to their targets etc.

v) Share-based payment expense

Employees (including senior executives) of the
Company receive remuneration in the form of
share-based payment transactions, whereby
employees render services as consideration for
equity instruments (equity-settled transactions).
The cost of equity-settled transactions is
determined by the fair value of instrument at the
date when the grant is made using an appropriate
valuation model.

That cost is recognised as employee benefits
expense, together with a corresponding increase
in stock options outstanding account in equity
over the period in which the performance and/
or service conditions are fulfilled. The cumulative
expense recognised for equity-settled transactions
at each reporting date until the vesting date
reflects the extent to which the vesting period has
expired and the Company's best estimate of the
number of equity instruments that will ultimately
vest. The statement of profit and loss expense (or
reversal) for a period represents the movement
in cumulative expense recognised as at the
beginning and end of that period and is recognised
in employee benefits expense.

When the terms of an equity-settled award are
modified, the minimum expense recognised is the
expense had the terms had not been modified, if the
original terms of the award are met. An additional
expense is recognised for any modification that
increases the total fair value of equity-settled
transaction, or is otherwise beneficial to the
employee as measured at the date of modification.
Where an award is cancelled by the entity or by
the counterparty, any remaining element of the
fair value of the award is expensed immediately
through statement of profit and loss.

w) Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided
to the chief operating decision maker. The chief

operating decision maker is considered to be the
Board of Directors who makes strategic decisions
and is responsible for allocating resources and
assessing performance of the operating segments.

x) Contingent liabilities and contingent assets

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond
the control of Company or present obligation that
is not recognized because it is not probable that
an outflow of resources will be required to settle
the obligation. A contingent liability also arises
in cases where there is a liability that cannot be
recognized because it cannot be measured reliably.
The Company does not recognise a contingent
liability but discloses its existence in the financial
statements.

Contingent assets are disclosed only when inflow
of economic benefits therefrom is probable and
recognize only when realization of income is
virtually certain.

y) Measurement of earnings before interest, tax,
depreciation and amortization (‘EBITDA')

The Company has elected to present EBITDA as a
separate line item on the face of the statement of
profit and loss. In its measurement, the Company
does not include depreciation and amortization,
finance income, finance costs and tax expense.

B. Recent accounting pronouncement

New and amended standards

The 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. MCA has notified below new
amendments which were effective from 1
April 2024.

(a) Introduction of Ind AS 117 - Insurance
contracts

MCA notified Ind AS 117, a comprehensive
standard that prescribe, recognition,
measurement and disclosure requirements,

to avoid diversities in practice for accounting
insurance contracts and it applies to all
companies i.e., to all "insurance contracts"
regardless of the issuer. However, Ind AS 117
is not applicable to the entities which are
insurance companies registered with IRDAI.

(b)Amendments to Ind AS 116 - Lease
liability in a sale and leaseback

The amendments require an entity to
recognise lease liability including variable
lease payments which are not linked to
index or a rate in a way it does not result
into gain on right of use asset it retains.

Standards notified but not yet effective

Ministry of Corporate Affairs ("MCA") notifies new
standard or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as amended from time to time. During the
year ended March 31, 2025, MCA has notified
following new standards or amendments to the
existing standards applicable to the Company:

(a) Lack of exchangeability - Amendments to
Ind AS 21: The amendments to Ind AS 21
“The Effects of Changes in Foreign Exchange
Rates”

The amendments specify how an entity
should assess whether a currency is
exchangeable and how it should determine
a spot exchange rate when exchangeability
is lacking. The amendments also require
disclosure of information that enables users
of its financial statements to understand how
the currency not being exchangeable into
the other currency affects, or is expected
to affect, the entity's financial performance,
financial position and cash flows.

The amendments are effective for annual
reporting periods beginning on or after April
01, 2025. When applying the amendments,
an entity cannot restate comparative
information. The Company has reviewed
the new pronouncements and based on
its evaluation has determined that these
amendments do not have a significant impact
on the financial statements.

* The Company has identified its fleet of passenger aircrafts and freighter aircrafts as separate cash generating units (CGUs)
and accordingly performed impairment assessment of passenger aircrafts in accordance with the accounting principles
under Ind AS 36 and determined the value-in-use of its cash generating units (CGUs) to compare it with the carrying value.
Management periodically assesses whether there is an indication that the asset may be impaired using a comparision between
carrying value of assets in books and the recoverable amount.

Recoverable value is considered as higher of fair value less costs of disposal and value in use.

Recoverable amount is value in use of the passenger aircrafts and freighter aircrafts and is based on discounted cash flow
method classified as level 3 fair value hierarchy due to the inclusion of one or more unobservable inputs. There has been no
change in the valuation technique as compared to the previous years.

Key assumptions:

(a) Pre-tax discount rate - 1730% , reflecting the, weighted average cost of capital and specific risk factors.

(b) Considering the overall business and market scenario, the projections has been considered of five years.

(a) *The Company entered into a Business Transfer Agreement ("BTA") with its subsidiary namely SpiceXpress and
Logistics Private Limited ("SXPL") on March 31, 2023 for transfer of its cargo business undertaking as a going
concern, on slump sale basis, for a total consideration of Rs. 25,557.70 million. As per terms of the BTA, the slump
sale consideration is to be discharged by SXPL by issuance of securities in the combination of equity shares
and compulsorily convertible debentures. Pending issuance of securities, the consideration has been disclosed
above. During the previous year, SXPL has issued 5,000,000 shares of face value of Rs. 10 each, amounting to
Rs. 50.00 million.

(b) During the year, the Company has determined that there has been a significant increase in the credit risk since
initial recognition of aforesaid receivables on account of business performance including the future projections and
relevant economic and market conditions in which SXPL operates and accordingly, has assessed for expected credit
loss, if any, with respect to such other receivables in accordance with the principles enunciated under Ind AS 109,
Financial Instruments ('Ind AS 109'). The future casflows considers key assumptions such as discount rate (pre-tax
rate) and growth rate. The discount rates used are based on weighted average cost of capital and reflects market's
assessment of the risk specific to the asset as well as time value of money.

*During the previous year, the Company has made following allotment on preferential basis in terms of SEBI (Issue of

Capital and Disclosure Requirements) Regulations, 2018:

(a) On September 4, 2023, the allotment of 34,172,000 equity shares of the face value of Rs. 10 each and 131,408,514
warrants, (having option to apply for and be allotted equivalent number of equity shares of the face value of Rs. 10
each) at an issue price of Rs. 29.84 each on preferential basis to promoter group;

(b) On September 4, 2023, the allotment of 48,123,186 equity shares of the face value of Rs. 10 each at an issue price
of Rs. 48.00 each on preferential basis to certain aircraft lessors, consequent upon conversion of their existing
outstanding dues aggregating to Rs. 2,309.91 million; and

(c) During the month of January and February 2024, the allotment of 95,600,000 equity shares of the face value of Rs.
10 each and 116,400,000 warrants, (having option to apply for and be allotted equivalent number of equity shares of
the face value of Rs. 10 each) at an issue price of Rs. 50.00 each on preferential basis to non-promoter category.

“During the year, the promoter group exercised its option to convert 131,408,514 warrants into 131,408,514 equity shares,
originally allotted on September 4, 2023, under the preferential allotment approved in terms of SEBI (Issue of Capital and
Disclosure Requirements) Regulations, 2018 resulting in allotment of 131,408,514 equity shares of the face value of Rs. 10
each at an issue price of Rs. 29.84 per share in the allotment committee meeting of the Board of Directors held on March
18, 2025, which was adjourned and resumed on March 19, 2025, and thus the equity share capital of the Company has
been updated accordingly.

Moreover, the non-promoter category was allotted 10,000,000 warrants and 1,115,000 warrants on February 21, 2024 and
May 13, 2024 respectively under the preferential allotment approved in terms of SEBI (Issue of Capital and Disclosure
Requirements) Regulations, 2018, at an issue price of Rs. 50 each who have exercised their option to convert these
warrants into equity shares. Accordingly, 10,000,000 equity shares and 1,115,000 equity shares were allotted on May 13,
2024 and August 14, 2024 respectively, and thus the equity share capital of the Company has been updated accordingly.

***The Fund Raising Committee of the Company, at its meeting held on September 20, 2024, approved the allotment
of equity shares of face value 10 each to eligible Qualified Institutional Buyers in accordance with SEBI (Issue of Capital
and Disclosure Requirements) Regulations, 2018 at a price of Rs. 61.60 per equity share (including a premium of Rs. 51.60
per equity share). Pursuant to the allotment of these shares, the paid-up equity share capital of the Company increased
from Rs. 7,946.72 million comprising of 794,672,717 fully paid-up equity shares to Rs. 12,816.86 million comprising of
1,281,685,703 fully paid-up equity shares for certain purposes as stated in the Placement Document

Out of the above QIP proceeds, Rs. 26,995.40 million have been utilised for the payment of statutory dues, settlement of
liabilities of creditors, ungrounding and maintenance, new fleet induction, employee related dues, airport dues. general
corporate and share issue expenses and the balance has been temporarily invested. pending utilisation as on 31 March
2025. Vide Board Resolution dated 25 February 2025, QIP proceeds amounting to Rs. 3000 million have been re allocated
from category designated for the purpose of "New fleet induction". Rs. 1500 million have been transferred to category
"General Corporate Purposes" and Rs. 1500 million have been transferred to Category "Settlement/payment Of certain
outstanding liabilities Of the creditors including aircraft and engine lessors, engineering vendors, financiers".

B. Term/rights attached to equity shares

The Company has only one class of equity shares having a face value of Rs. 10 per share. Each holder of equity shares is
entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend, if any, proposed
by the board of directors is subject to the approval of the shareholders in the ensuing annual general meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of
the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders

Repayment terms (Including current maturities) and security details for term loans from bank

a During the previous year, the Company has availed term loan under Emergency Credit Line Guarantee Scheme ('ECLGS')
from Yes Bank Limited amounting to Rs. 5,050.96 million (sanctioned amount Rs. 5,104.00 million). The loan is repayable in
48 equal instalments commencing after 2 years from the date of first disbursement i.e. June 29, 2023 and carries an interest
rate of 9.25% (1.00% spread over MCLR rate of the bank revised every year capped at 9.25% ). The loan is secured as follows:

- Second charge on movable fixed assets of the Company (both present and future);

- Second charge on current assets of the Company (both present and future) including receipts in foreign currency

and rupee credit (except lien marked deposits);

- Second charge on pledge of shares of the Company held by the Promoter;

- Second charge on current assets and movable fixed assets of SpiceXpress and Logistics Private Limited (subsidiary

entity); and

- 100% credit guarantee by National Credit Guarantee Trust Company Limited (NCGTC)

b The Company had availed term loan under Emergency Credit Line Guarantee Scheme ('ECLGS') from Yes Bank Limited

amounting to Rs. 1,509.80 million. The loan is repayable in 48 equal instalments commencing after 2 years from the date

of the first disburement i.e. October 6, 2022 and carries an interest rate of 9.25% (0.80% spread over MCLR rate of the
bank revised every year capped at 9.25%). The loan is secured as follows:

- Second charge on movable fixed assets of the Company;

- Second charge on current assets of the Company (both present and future) including receipts in foreign currency

and rupee credit (except lien marked deposits);

- Second charge on pledge of shares of the Company held by the Promoter; and

- 100% credit guarantee by National Credit Guarantee Trust Company Limited (NCGTC)

c. The Company had availed term loan under Emergency Credit Line Guarantee Scheme ('ECLGS') from Indian Bank Limited

amounting to Rs. 600.00 million. The loan is repayable in 48 equal instalments commencing after 2 years from the date

of first disbursement i.e. September 7, 2022 and carries an interest rate of 9.25% (1% spread over MCLR rate of the bank
revised every year capped at 9.25%). The loan is secured as follows:

- Second charge on existing credit facilities in terms of cash flow (including repayment); and

- 100% credit guarantee by National Credit Guarantee Trust Company Limited (NCGTC)

d. The Company had availed term loan under Emergency Credit Line Guarantee Scheme ('ECLGS') from Indian Bank Limited
amounting to Rs. 913.20 million (sanctioned amount: INR 1,286.40 million). The loan is repayable in 48 equal instalments
commencing after 2 years from the date of the borrowing i.e. February 4, 2023 and carries an interest rate of 9.25%
(1% spread over MCLR rate of the bank revised every year capped at 9.25% ). During the year, the Company has further
received loan disbursement from Indian Bank amounting to 362.00 million (out of total sanctioned amount: INR 1,286.40
million). The loan is secured as follows:

- Second charge on existing credit facilities in terms of cash flow (including repayment) and securities including
pledge of deposits, and;

- Second charge on current assets of the Company; and

- 100% credit guarantee by National Credit Guarantee Trust Company Limited (NCGTC)

e. The Company has availed term loan under Emergency Credit Line Guarantee Scheme ('ECLGS') from Yes Bank Limited
amounting to Rs. 1,275.17 million. The loan is repayable in 48 equal instalments commencing after 2 years from the date of
first bursement i.e. June 30, 2021 and carries an interest rate of 9.25% (0.80% spread over MCLR rate of the bank revised
every year capped at 9.25%). The loan is secured as follows:

- Second charge on movable fixed assets;

- Second charge on current assets of the Company (both present and future) including receipts in foreign currency
and rupee credit (except lien marked deposits);

- Second charge on pledge of shares of the Company held by the Promoter; and

- 100% credit guarantee by National Credit Guarantee Trust Company Limited (NCGTC)

f. The Company had availed term loan under Emergency Credit Line Guarantee Scheme ('ECLGS') from IDFC Bank Limited
('IDFC Bank') amounting to Rs. 200 million. The loan is repayable in 48 equal instalments commencing after 2 years from
the date of the borrowing i.e. August 7, 2021 and carries an interest rate of 9.25% (1.00% spread over MCLR rate of the
bank revised every year capped at 9.25%). The loan is secured as follows:

- Second pari-passu charge movable fixed assets and current assets of the Company;

- Second charge on land of the Company;

- Second charge on pledge of shares of the promoter of the Company (1.0x cover); and

- 100% credit guarantee by National Credit Guarantee Trust Company Limited (NCGTC)

Repayment terms (including current maturities) and securities details for external commercial borrowings

g The External Commercial Borrowing ('ECB') relates to the acquisition of 'Bombardier Q400 Aircrafts', accordingly, secured
against these aircrafts. The ECB has been approved by the Reserve Bank of India and is granted through a structure
between the Company and Maple Leaf Financing Limited with lending from Export Development Canada ('EDC'). As per
the terms of the agreement, the Company may opt for either fixed or a floating rate of interest benchmarked to LIBOR for
each drawdown, which coincides with the delivery of each aircraft. The interest on this ECB ranges from 3.79% to 5.36%.
During the previous year, the Company had negotiated revised payment schedule and repayment was to be commenced
from July 2023. However, in the previous year, the Company had entered into settlement agreement with EDC wherein
the ECB amounting to Rs. 7,554.55 million (inclusive of interest) appearing in the books of accounts had been settled
at Rs. 1,872.68 million which has been paid by the Company in the current year. The management of the Company had
recognised the resulting write back of Rs. 5,681.87 million as 'other income' in the previous year.

(a) Provision for redelivery obligation: The Company has in its fleet, aircraft on lease. As contractually agreed under certain
lease contracts, 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
capitalised at the present value of expected outflow, where effect of the time value of money is material.

(b) Provision for engine maintenance which represents additional accrual, beyond supplementary rentals, for the estimated
future costs of engine maintenance checks. These accruals are based on past trends for costs incurred on such events,
future expected utilisation of engine, condition of the engine and expected maintenance interval and are recorded over
the period of the next expected maintenance visit.

The weighted average remaining period of stock options as at March 31, 2025 is 5.61 years (March 31, 2024: 5.98 years).

The weighted average share price on the date of exercise of stock options during the year was Rs. 50.57 (March 31, 2024: Rs. 60.57).
Option excersiable as at March 31, 2025 is 52,500 (March 31, 2024: 388,000).

44. Employee benefits obligation

A. Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets
a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service subject to a maximum of
Rs. 2.00 million. The scheme is unfunded and accordingly the disclosures relating to plan assets are not provided.

The following tables summarise the components of net benefit expense recognised in the Statement of profit and loss
and amounts recognised in the balance sheet.

Sensitivities due to mortality and withdrawals are not material and hence impact of change due to these not
calculated.

The weighted average duration of defined benefit obligation is 6.06 years (700 years).

(viii) Risk

Salary increases - Actual salary increases will increase the plan's liability. Increase in salary increase rate assumption
in future valuations will also increase the liability.

Investment risk - If plan is funded then assets liabilities mismatch and actual investment return on assets lower than
the discount rate assumed at the last valuation date can impact the liability.

Discount rate - Reduction in discount rate in subsequent valuations can increase the plan's liability.

Mortality and disability - Actual deaths and disability cases proving lower or higher than assumed in the valuation
can impact the liabilities.

Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates
at subsequent valuations can impact plan's liability.

C. Defined contribution plan:

During the year, the Company recognized Rs. 260.77 million (March 31, 2024 - Rs. 323.56 million) as provident fund
expense under defined contribution plan and Rs. 8.46 million (March 31, 2024 - Rs. 15.63 million) for contributions to
employee state insurance scheme in the statement of profit and loss.

45. Lease liabilities

The Company's leased assets primarily consist of leases for aircraft, aircraft components (including engines) and buildings.
The Company has several lease contracts that include extension and termination options and the management has
considered both the options in determination of lease term. Potential cash flows in relation to such extension options cannot
be ascertained since the cash outflow for the extended period will depend on the negotiations with the lessors in the event
of exercising the extension options. Under certain lease arrangements of aircraft, the Company incurs variable payments
towards maintenance of the aircraft which are presented under "Supplemental lease charges - aircraft, engines and auxiliary
power units".

During the year ended March 31, 2025, the Company has recognized an expense of Rs. 7,901.31 million (March 31, 2024 Rs.
7,135.88 million) on account of short term leases which represents leased aircraft, engines and auxiliary power units having a
lease term of less than 12 months and other short-term leases. The portfolio of other short-term leases to which the Company is
committed at the end of the reporting period is not materially different from the portfolio of other short-term leases for which
expense has been recognized during the year ended March 31, 2025.

iii. The goods and services tax related demand pertains to differential amount of IGST on account of incorrect
classification as per customs chapter tariff head pertaining to bills of entry in relation to imports of various goods,
claim of input tax credit for exempt supplies and discrepancies in returns filed..

iv. The Company has received certain orders from customs authorities levying Integrated Goods and Services
Tax ('IGST') and basic customs duty on re-import of various aircraft engines and aircraft equipment repaired/
replaced outside India, which is in the opinion of the Management and based on expert advice obtained, is not
subject to such levy. Accordingly, these amounts have been considered as recoverable. Further, in January 2021,
the Company has received favourable order in reference to one of the matters for which tax is paid under protest,
from the Customs Excise and Service Tax Appellate Tribunal ('CESTAT'), New Delhi in respect of this matter.
During the year, the customs authorities have filed an appeal before the Hon'ble Supreme Court of India ('the
Supreme Court') against the CESTAT order. The matter is yet to be decided by the Supreme Court and no stay
on CESTAT order has been granted by the Supreme Court till date. Further, the customs authorities vide customs
amendment notification dated 19 July 2021 has amended earlier customs exemption notification to reiterate their
position that IGST is applicable on re-import of goods after repair. However, the Company based on the legal
advice from counsels, continues to believe that no IGST is payable on such re-import of repaired aircraft engines
and related parts. Accordingly, the above amounts, which is paid under protest till March 31, 2024 i.e. Rs. 619.58
million have been shown as recoverable.

v. The Company has received a demand order for a sum of Rs. 77.28 million, and applicable interest, as well as
penalty of Rs. 77.28 million from the service tax department for non-remittance of service tax on reverse charge
mechanism on certain payments made during the period April 18, 2006 to March 31, 2012. The Company is
contesting the order on the grounds that the services obtained by the Company were not liable to service tax
under the categories determined by the authorities and are hence not taxable services. Effective July 2012,
pursuant to the enactment of the negative list of taxable services, the Company has been paying service tax on
these services received on reverse charge basis under the relevant provisions of the Finance Act, 1994. Based
on advice by tax consultants and internal evaluation, the Company has provided an amount of Rs. 77.28 million
(including a portion of applicable interest) on a conservative basis (also refer note 31). However, the Company
continues to contest the entire demand and has filed an appeal against the adverse order with the Customs,
Excise and Service Tax Appellate Tribunal ('CESTAT') and is confident of its success. The balance amount of the
matter under litigation, (including interest and penalty) of Rs. 170.70 million, has not been accrued pending final
outcome of this matter and has been disclosed as a contingent liability.

vi. The Company has received certain orders from the service tax authorities, citing various defaults, including
failure/delay in remitting service tax collected, over past financial years as well as alleged failure in remittance of
service tax on certain other items. Based on their assessment of the demand order, the management has filed an
appeal against the order, and based on legal advice obtained, believes that the likelihood of this liability devolving
on the Company is low, and accordingly has made no adjustments to the financial statements.

vii. The customs related demand pertains to custom duty on the entire quantity of the remnant aviation turbine fuel
in fuel tank arriving from foreign airport.

viii. The Company has received a demand notice from the Regional Provident Fund Commissioner, Gurgaon for Rs.
79.91 million in respect of provident fund ('PF') dues for international workers vide Notifications GSR 706(E) dated
October 1, 2008 and GSR 148 dated September 3, 2010, for the period from November 2008 to February 2011.
The Company has responded to the notice disputing the demand and, without admitting any liability towards
the same, has deposited an amount of Rs. 1.96 million towards the PF contributions in respect of international
workers for the period from November 2008 to July 2011 under the provisions of the Employees Provident
Funds and Miscellaneous Provisions Act, 1952 ('PF Act'). Since August 2011, the Company has been making
provident fund contributions in respect of international workers under the provisions of the PF Act. During the
year ended March 31, 2012, the Company has filed a writ petition with the Hon'ble Delhi High Court contending
that the above notifications relating to international workers are unreasonable and ultra vires the PF Act. The
Court has directed that this matter be put up in the regular list and the interim order in favour of the Company
has been made absolute till disposal of the petition. In addition, a report has been filed by the Department's
Representative before the Regional Provident Fund Commissioner ("RPFC") on March 22, 2017 pursuant to which
there is an aggregate demand Rs. 144.43 million against the Company for the period from November 2008 to
January 2012. The Company has filed its reply on the report on August 18, 2017 Thereafter, the RPFC has passed
its final order on June 8, 2020 against the Company for an amount of Rs. 142.04 million towards outstanding PF
dues for its expat employees for the period of November 2008 to January 2012. The RPFC order also states that
there is an order in favour of the Company restraining the PF department from taking any coercive steps against

the Company for recovery of the said amount till the disposal of the writ petition. Pending disposal of the writ
petition, the Company has not accrued for any additional liability in respect of provident fund contributions to
international workers.

ix. The Competition Commission of India ("CCI") passed an order dated November 17, 2015 against, inter alia,
the Company, which included a demand of Rs 424.80 million. The Company's appeal against this order with
Competition Appellate Tribunal ("COMPAT") was disposed of by the COMPAT, which set aside the impugned
order on technical grounds and has referred the matter back to the CCI for fresh adjudication. Subsequent
thereto, the matter was reconsidered by CCI and a revised order dated March 7, 2018 imposing fine of Rs. 51
million was imposed on the Company. The Company has filed an appeal before COMPAT and based on legal
advice received, management is confident of a favourable outcome in this matter and accordingly no adjustments
are considered necessary in the financial statements.

x. The Company has received certain show cause notices from the income tax authorities citing various defaults,
including non-deduction of tax deducted at source on certain payments. Based on their assessment of the
contentions of the income tax authorities, the management has submitted a detailed reply to the notice, and
based on legal advice obtained, believes that the likelihood of this liability devolving on the Company is low, and
accordingly has made no adjustments to the financial statements.

xi. The Assistant Commissioner of Income-Tax ("ACIT") has filed a complaint against the Company and its erstwhile
Chairman and Managing Director in their individual capacity, over delayed payment of tax deducted at source in
contravention of section 276B of the Income-tax Act, 1961 for financial years 2013-14 and 2014-15. The matter is
sub-judice as on date and based on professional advice, the management is confident of a favourable outcome
in this matter in so far as it relates to the Company. Accordingly, no adjustments are considered necessary in the
financial statements.

c) Certain aircraft/engine lessors have filed application(s) under Section 9 of the Insolvency and Bankruptcy Code, 2016
due to alleged non-payment. The Company has certain disputes in the matter and the amounts claimed are disputed
debts and accordingly the Company is defending such matters. Basis the review of applications filed and the legal
interpretation of the law supported by views of legal expert, the management is of the view that it is not possible to
determine the effects of such applications as on date. With respect to this the Company has paid amounting to Rs.
290.59 million as under protest disclosed in other non-current assets.

48. Non-compliance of laws and regulations

There have been delays in depositing Tax Deducted at Source ('TDS') and filing of TDS returns on time as per Income-tax
Act, 1961, deposit of provident fund as per Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and deposit of
Goods and Services Tax ('GST') and filing of returns as applicable under Goods and Services Tax Act, 2017 ('GST Act'). During
the current year, the Company has made significant payments with respect to outstanding principal amounts of undisputed
dues pertaining to TDS, GST and employee provident fund and has also regularised the process of filing of returns under the
respective Acts. To the extent ascertainable and without prejudice to its rights and remedies, the Company has made accruals
for interest on delays in payment of above-mentioned statutory dues.

Further, there are non-compliances with respect to repatriation of foreign currency trade receivables and payment of trade and
other payables that are overdue beyond the timelines stipulated by the Reserve Bank of India ('RBI') under foreign exchange
management guidelines.

Furthermore, the Company has not re-appointed a Chief Financial Officer (CFO) within the time period allowed from vacancy
of such office under Section 203 of the Companies Act, 2013.

The Company has been served various demand orders by the respective regulatory authorities in respect of some of the
aforesaid non-compliances, however, has further filed representation with such authorities for getting waiver of interest
liabilities and relief from prosecution, based on its exceptional financial crisis on account of travel restrictions during Covid,
grounding of Boeing max aircrafts, rising ATF prices, etc.

The Company is in process of regularising aforesaid non-compliances under applicable laws and regulations, however, pending
such regularisation, the impact of some of the above matters, including due to fine/penalties that may be levied is presently
unascertainable and accordingly, no adjustments have been made in these standalone financial statements in this respect.

49. There have been certain delays in holding of minimum number of committee meetings in the financial year ended March
31, 2025 under Companies Act, 2013 and issuing of financial results under Regulation 33 of SEBI (Listing Obligations and
Disclosure Requirements) Regulation, 2015 during the year for the quarters ended June,30 2024, September 30, 2024,
December 31, 2024 and March 31, 2025. These have been either condoned upon payment of necessary fee or exemption/
waiver provided by relevant regulatory authority. The impact of the above matters does not have any material impact in
these standalone financial statements in this respect.

50. Advance money received against securities proposed to be issued

The Company had, in earlier financial years, received amounts aggregating to Rs. 5,790.90 million from Mr. Kalanithi Maran and
KAL Airways Private Limited (together, "Erstwhile Promoters") as advance money towards proposed allotment/subscription
of certain securities (189,091,378 share warrants and 3,750,000 non-convertible cumulative redeemable preference shares,
issuable based on approvals to be obtained), to be adjusted at the time those securities were to be issued. Pursuant to the
legal proceedings in this regard before the Hon'ble High Court of Delhi ("Court") between the Erstwhile Promoters, the present
promoter and the Company, the Company was required to secure an amount of Rs. 3,290.89 million through a bank guarantee
in favour of the Registrar General of the Court ("Registrar") and to deposit the balance amount of Rs. 2,500 million with the
Registrar. The Company has complied with these requirements in September 2017.

The parties to the aforementioned litigation concurrently initiated arbitration proceedings before a three-member arbitral
tribunal (the "Tribunal"), which pronounced its award on 20 July 2018 (the "Award"). In terms of the Award, the Company
was required to (a) refund an amount of approximately Rs. 3,082.19 million to the counterparty, (b) explore the possibility of
allotting non-convertible cumulative redeemable preference shares in respect of Rs. 2,708.70 million, failing which, refund
such amount to the counterparty, and (c) pay interest calculated to be Rs. 924.66 million (being interest on the amount
stated under (a) above, in terms of the Award). The amounts referred to under (a) and (b) above, aggregating Rs. 5,790.89
million, continue to be carried as current liabilities without prejudice to the rights of the Company under law. Further, the
Company was entitled to receive from the counterparty, under the said Award, an amount of Rs. 290.00 million of past
interest/servicing charges. Consequent to the Award, and without prejudice to the rights and remedies it may have in the
matter, the Company accounted for Rs. 634.66 million as an exceptional item (net) during the year ended 31 March 2019,
being the net effect of amount referred to under (c) and counter claim receivable of Rs. 290.00 million, above.

The Company deposited the entire principal of Rs. 5,790.9 million as per the direction of the Court in September 2017 which
has also been subsequently paid to the counterparty and there are adjustments to be made for the counter-claim of the
Company. The Company has additionally paid in aggregate Rs. 1,500.00 million to the counterparties pursuant to Court orders
dated 24 August 2023 and 2 February 2024 while keeping open the rights and contentions in pending litigations. All the
payment made to the counterparties has been included under other non-current assets.

The Company, its present promoter and the counterparties challenged various aspects of the Award, including the above-
mentioned interest obligations and rights, under Section 34 of the Arbitration and Conciliation Act, 1996 which was
dismissed by the Court vide its judgments dated 31 July 2023. Thereafter, the Company and its present promoter preferred
an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 before the Division Bench of the Court, inter-
alia, challenging the payment of entire interest amount and payment of early refund of Rs. 2,708.70 million towards non¬
convertible cumulative redeemable preference shares. The Division Bench vide its judgment dated 17 May 2024 set aside
the judgments dated 31 July 2023 of the Court and ordered to restore the petitions under Section 34 of the Arbitration and
Conciliation Act, 1996 filed by the Company and present promoter before the appropriate Court for being considered afresh
and bearing in mind the observations rendered by the Division Bench in its judgment dated 17 May 2024. Accordingly, this
matter is sub-judice as on date.

Erstwhile Promoters had also preferred an appeal under Section 37 of the Arbitration and Conciliation Act, 1996 before the
Division Bench of the Court, inter-alia, seeking damages of more than Rs. 13,000 Million which was dismissed by the said
Division Bench vide its order dated 23 May 2025. These assertions were already thoroughly examined and subsequently
rejected by the Arbitral Tribunal, the panel of three retired Supreme Court judges and the Single-Judge Bench of the Court.

In view of the foregoing and pending outcome of the aforesaid challenges at the Court and legal advice obtained, the
management is of the view that no material liability is likely to arise from aforesaid matter and accordingly, no further
adjustments have been made in this regard, to these standalone financial statements. The auditors have included 'Emphasis of
Matter' paragraph in their audit report in this regard.

The Management considers that the carrying amounts of financial assets and financial liabilities (except lease liabilities)
recognised in the financial statements approximate their fair values. The fair value of the financial assets and liabilities is
included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other
than in a forced or liquidation sale. The following methods were used to estimate the fair values:-

• Cash and cash equivalents, trade receivables, other receivables, trade payables, and other current and non-current
financial liabilities and other current and non-current financial assets approximate their carrying amounts largely due to
the short-term maturities of these financial instruments.

• The borrowings of the Company do not have any comparable instrument having the similar terms and conditions with
related security being pledged and hence the carrying value of the borrowings represents the best estimate of fair value.

55. Fair value hierarchy

The following explains the judgements and estimates made in determining the fair values of the financial instruments that are
recognised and measured at fair value. To provide an indication about the reliability of the inputs used in determining fair value,
the Company has classified its financial instruments into the three levels prescribed under the accounting standard.

Level 1: quoted prices (unadjusted) in active markets for financial instruments

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
Level 3: unobservable inputs for the asset or liability

Valuation techniques used to determine fair value

Level 1 - The use of net asset value for mutual funds on the basis of the statement received from investee party.

Level 3 - The investment in equity shares of Aeronautical Radio of Thailand Limited is not significant. Hence, the Company has
considered carrying value as fair value.

56. Financial risk management objectives and policies

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the
management of these risks. The Company's senior management is supported by a treasury team. The treasury team provides
assurance to the Company's senior management that the Company's financial risk activities are governed by appropriate
policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's
policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are
summarised below:

Market risk

Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a change in
the price of a financial instrument. Market risk comprises three types of risk: price risk, interest rate risk and foreign currency risk.

The sensitivity analyses in the following sections relate to the position as at March 31, 2025 and March 31, 2024.

Price risk

The Company's exposure to price risk arises from investments held and classified as FVTPL. To manage the price risk arising
from investments in mutual funds, the Company diversifies its portfolio of assets.

Sensitivity analysis

If price had been 50 basis points higher/lower and all other variables were held constant, the Company's loss and equity for the
year ended March 31, 2025 would decrease/increase by Rs.67.01 million (March 31, 2024: decrease/increase by Rs. 0.25 million).

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company is exposed to interest rate risk because it borrows funds at floating interest
rates. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.
As at March 31, 2025 approximately 100% of the Company's borrowings are at a variable rate of interest (March 31, 2024
- 83.70%)

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company's loss and
equity for the year ended March 31, 2025 would increase by Rs. Nil million and decrease by Rs. 44.06 million respectively
(March 31, 2024: increase by Rs. 28.74 million and decrease by Rs. 86.50 million respectively).

In management's opinion, the sensitivity analysis is unrepresentative of the inherent interest rate risk because the exposure at
the end of the reporting period does not reflect the exposure during the year.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in
foreign exchange rates.

Foreign currency sensitivity

The following demonstrates the sensitivity to a reasonably possible change in the foreign currency exchange rates, with all
other variables held constant. The impact on the Company's loss before tax is due to changes in the fair value of monetary
assets and liabilities including non-designated foreign currency derivatives. The sensitivity analysis includes only outstanding
unhedged foreign currency denominated monetary items.

If the foreign currency rates had been 5% higher/lower and all other variables were held constant, the Company's loss for the
year ended March 31, 2025 would increase/decrease by Rs. 2,542.76 million (March 31, 2024: increase/decrease by Rs. 3,183.03
million).

In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure
at the end of the reporting period does not reflect the exposure during the year.

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
investing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial
instruments. The maximum exposure to credit risks is represented by the total carrying amount of these financial assets in the
standalone balance sheet:

The Company has adopted a policy of only dealing with creditworthy counterparties, as a means of mitigating the risk of financial
loss from defaults. Trade receivables are typically unsecured and are primarily derived from cargo and other revenue streams.
Majority of the Company's passenger revenue is made against deposits made by agents. Trade receivables primarily comprise
of domestic customers, which are fragmented and are not concentrated to individual customers. The Company's exposure and
the credit ratings of its counterparties are continuously monitored. At March 31, 2025, the Company had 34 customers (March
31, 2024: 34 customers) that owed the Company more than Rs. 10 million each and accounted for approximately 84% (March
31, 2024: 81%) of all the receivables outstanding.

An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large
number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum
exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not
hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its
customers are widely dispersed and operate in largely independent markets. The average credit period ranges between 30
and 90 days.

The Company uses a simplified approach (lifetime expected credit loss model) for the purpose of computation of expected
credit loss for trade receivables. The Company is recognising expected credit losses on outstanding trade receivables at in the
range of 2-6% below 360 days and in the range of 8-100% for more than 360 days.

Credit risk related to cash and cash equivalents and bank deposits is managed by only investing in deposits with highly rated
banks and financial institutions and diversifying bank deposits and accounts in different banks. Investments primarily include
investments in equity and debt oriented mutual funds with low risk. Credit risk related to loans, other financial assets and
other receivables is managed by monitoring the recoverability of such amounts continuously. Credit risk is considered low
because the Company is in possession of the underlying asset (in case of security deposit) or as per trade experience (in case
of unbilled revenue). Further, the Company creates provision by assessing individual financial asset for significant increase in
credit risk of such financial assets over due basis 12 months expected credit loss model. The presumption under IndAS 109
with reference to significant increases in credit risk since initial recognition (when other financial assets are more than 30 days
past due). has been rebutted and is not applicable to the Company, as the Company is able to collect a significant portion of
its other financial assets that exceed the due date.

Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management
is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company has obtained
fund and non-fund based working capital lines from various banks. The Company invests its surplus funds in bank fixed deposit
and mutual funds, which carry minimal mark to market risks. The Company also constantly monitors funding options available
in the debt markets and is renegotiating payment terms with a view to maintain financial flexibility.

The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted
payments

57. Capital management

The Company's capital management is intended to create value for shareholders by facilitating the meeting of long-term and
short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual operating plans and long-term fleet expansion
plans. The funding requirements are met through internal accruals and other long-term/short-term borrowings. The Company's
policy is aimed at combination of short-term and long-term borrowings. The Company monitors capital employed using a debt
equity ratio, which is total debt divided by total equity.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2025
and March 31, 2024.

58. Details of Corporate social responsibility (‘CSR’) expenditure

The Company has met the criteria as specified under sub-section (1) of section 135 of the Companies Act, 2013 read with
the Companies (Corporate Social Responsibility Policy) Rules, 2014, however, in the absence of average net profits in the
immediately three preceding years, there is no requirement for the Company to spend any amount under sub-section (5) of
section 135 of the Act.

59. Disclosure required under section 186(4) of Companies Act, 2013 and regulation 34(3) of the Securities and Exchange
Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015:

61. Audit Trail

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014, inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which
uses accounting software for maintaining its books of accounts, shall only use such accounting software which has a feature
of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along
with the date when such changes were made and ensuring that the audit trail cannot be disabled. The new requirement is
applicable with effect from the financial year beginning on 1 April 2023.

The Company uses an accounting software for maintaining its books of account which has a feature of recording audit trail
(edit log) facility. The audit trail (edit log) feature for any direct changes made at the database level was not enabled for the
said accounting software used for maintenance of all the accounting records by the Company, however, the audit trails (edit
log) at the application level was operating for all relevant transactions recorded in the software.

Further, the Company, has used accounting software for maintenance of revenue records and payroll records which are
operated by third-party software service providers which have a feature of recording audit trail (edit log) facility. Presently,
the log has been activated at the application level. Availability of audit trail (edit logs) at database level is not covered in the
'Independent Service Auditor's Assurance Report on the Description of Controls, their Design and Operating Effectiveness'
('Type 2 report' issued in accordance with ISAE 3402, Assurance Reports on Controls at a Service Organisation).

During the year ended March 31, 2025, the Company has not enabled the feature of recording audit trail (edit log) at the
database level for the said accounting software to log any direct data changes on account of storage space constraint and
impacting database performance significantly.

Further, there is no instance of audit trail feature being tampered with in respect of the accounting software where such
feature is enabled.

62. Other statutory information

A. The Company has not advanced or loaned or invested funds to any person or any entity, including foreign entities

(Intermediaries) with the understanding that the intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by a or on behalf
of the Company (Ultimate Beneficiaries); or

(ii) 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 or any entity, including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by a or on behalf
of the Funding Party (Ultimate Beneficiaries); or

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

C. The Company have transactions and outstanding balances during the current year with companies struck off under
section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1

D. The Company does not have any Benami Property, where any proceeding has been initiated or pending against the
Company.

E. The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond
the statutory period

F. The Company has not traded or invested in crypto currency or virtual currency during the year.

G. 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.

H. The Company has not been declared as a 'Wilful Defaulter' by any bank or financial institution (as defined under the
Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve
Bank of India.

I. The Company has complied with numbers of layers prescribed under Rule (87) of section 2 of the Act read with Companies
(Restrcition on number of layers) Rules, 2017.

J. The title deeds of all the immovable properties held by the Company (other than properties where the Company is the
lessee and the lease agreements are duly executed in favour of the lessee), disclosed in Note 3 to the standalone financial
statements, are held in the name of the Company. For title deeds of immovable properties in the nature of land situated
at Gurugram, Haryana with gross carrying values of Rs 171.37 million as at March 31, 2025, which have been mortgaged

as security for loans or borrowings taken by the Company, confirmations with respect to title of the Company have been
directly obtained by us from the respective lenders.

K. The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or
both during current or previous years.

L. The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related
parties (as defined under Companies Act, 2013) either severally or jointly with any other person that are repayable on
demand or without specifying any terms or period of repayment

63. Previous year figures have been regrouped/reclassified to conform to the current year's classification. The impact of such
reclassification/regrouping is not material to the financial statements.

64. Lessor settlements

(a) During the year, the Company has entered into settlement agreement with one of a large lessor against its outstanding
dues where the lessor has agreed to restructure lease and maintenance obligations aggregating to Rs. 9,505.73 million
owed to them and upon settlement/waivers, the amount payable by the Company in aggregate to the lessors stands at
Rs. 4,281.50 million as on March 31, 2025, resulting in a gain of Rs. 5,224.23 million (in addition to the earlier settlement
executed in the quarter ended June 30, 2024). Further, as part of this settlement, the Company has agreed to issue shares
worth Rs. 4,281.50 million to the said lessor for the balance outstanding.

(b) The Company and certain lessors, other than the lessor referred in (b) above, have agreed to restructure lease obligations
and upon settlement/waivers, the amount payable by the Company in aggregate to all these shall be discharged by the
Company in the manner as may be agreed between the parties and resultant gain of Rs. 5,387.01 million during the year
ended March 31, 2025 is recognised as 'other income'.

65. Adoption of accounts

The standalone financial statements were approved for issue by the Board of Directors on June 13, 2025.

The accompanying notes to the standalone financial statements including summary of material accounting policies and other

explanatory information are an integral part of these standalone financial statements.

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors

Chartered Accountants

ICAI Firm Registration No.: 001076N/N500013

Neeraj Goel Ajay Singh Joyakesh Podder Chandan Sand

Partner Chairman & Managing Deputy Chief Company Secretary

Membership No: 099514 Director Financial Officer

Place: Gurugram Place: Gurugram Place: Gurugram Place: Gurugram

Date:June 13, 2025 Date: June 13, 2025 Date: June 13, 2025 Date: June 13, 2025