Paramotor Digital Technology Limited

• Expenditure towards customer acquisition, retention and brand and business promotion initiatives₹355 Cr
• Investment in technology development initiatives, cloud infrastructure services and IT assets₹94.0 Cr
• Investment in office infrastructure₹38.0 Cr
• General corporate purposes

Except as stated in this section, there are no outstanding (i) criminal proceedings (including matters which are at FIR stage even if no cognizance has been taken by any court) involving our Company, our Subsidiary, our Promoters, our Directors, our Key Managerial Personnel and Senior Management; (ii) actions taken (including all outstanding penalties and show cause notices) taken by regulatory authorities and statutory authorities against the Relevant Parties, our Key Managerial Personnel and Senior Management; (iii) disciplinary actions including any penalty imposed by SEBI or Stock Exchanges against the Promoters in the last five financial years; (iv) outstanding claims related to any direct or indirect taxes in a consolidated manner involving the Relevant Parties; or (v) other pending litigation or arbitration proceedings as determined to be material by our Board as per the Materiality Policy involving the Relevant Parties; and (vi) litigation involving our group company which have a material impact on our Company.

• We launched our Rewards and Loyalty business in the second quarter of Fiscal 2026 and our DevStack business in the first quarter of Fiscal 2026. We lack an operational track record for these businesses, and our limited experience could adversely affect our ability to scale them efficiently.(Business Operations)

• We are significantly dependent on our PPI Program Management and Distribution business, which represented 99.51% of our revenue from operations in Fiscal 2024, and our Rewards and Loyalty business, which represented 69.80% of our revenue from operations for the three months period ended June 30, 2026.(Revenue Concentration)

• We act as a program manager and business correspondent for non-reloadable prepaid payment instruments with a maximum value of ₹10,000 issued by banks and RBI licensed issuers.(Regulatory)

• We act as a distribution agent for aggregators of brand gift cards issued by merchants.(Business Operations)

• We launched our DevStack business as a dedicated business line in the first quarter of Fiscal 2026, prior to which we earned Platform Fee / Service Fee on an ancillary basis.(Business Operations)

• We launched our Rewards and Loyalty business in the second quarter of Fiscal 2026, prior to which we earned revenue from reward points on an ancillary basis.(Business Operations)

• We had six and five corporate customers using the RewardOn platform for the three months period ended June 30, 2026 and Fiscal 2026, respectively, and five customers for our DevStack business as at June 30, 2026.(Customer Concentration)

• Revenue from our Rewards and Loyalty business is recognised upon redemption of reward points for Gift Cards/Prepaid Cards by users and the expiry of reward points, rather than at the time of sale of the reward points.(Accounting Policy)