3 Material accounting policy information

The accounting policies set out below have been applied
consistently to all periods presented in these financial statements.

a. Property, plant and equipment

Free hold land is carried at historical cost, net of accumulated
impairment losses, if any. All other items of Property, Plant
and Equipment are at historical cost, net of accumulated
depreciation and accumulated impairment losses, if any.
Historical cost includes expenditure that is directly attributable
to the acquisition of the items.

Subsequent costs are included in the asset's carrying amount
or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the
item will flow to the Company and the cost of the item can
be measured reliably. The carrying amount of any component
accounted for as a separate asset is derecognised when
replaced. All other repairs and maintenance are charged to
profit or loss during the reporting period in which they are
incurred.

Capital work-in-progress represents Property, plant and
equipment that are not yet ready for their intended use as at
the balance sheet date.

An item of property, plant and equipment and any significant
part initially recognised is derecognised upon disposal or
when no future economic benefits are expected from its use
or disposal. Any gain or loss arising on derecognition of the
asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in
the income statement when the asset is derecognised.

Intangible Assets:

Intangible assets are stated at cost less any accumulated
amortisation and accumulated impairment losses, if any. The
Company capitalises identifiable costs relating to development
of internally generated software and these are stated net off
accumulated amortization.

Intangible assets under development comprise costs relating
to development of software that are not yet ready for their
intended use as at the balance sheet date.

Depreciation

Depreciation is calculated on a straight-line basis over the
estimated useful lives of the assets as follows:

Note: Based on technical evaluation, the Management
believes that the useful lives as given above best represent
the period over which the Management expects to use these
assets. Hence, the useful lives for these assets is different
from the useful lives as prescribed under Part C of Schedule II
of the Companies Act 2013.

Depreciation for assets purchased/sold during a year is
proportionately charged.

Amortisation

Following initial recognition of the development expenditure as
an asset, the asset is carried at cost less any accumulated
amortisation and accumulated impairment losses, if any.
Amortisation of the asset begins when development is
complete and the asset is available for use. It is amortised over
the period of expected future benefit. Amortisation expense
is recognised in the profit and loss unless such expenditure
forms part of carrying value of another asset.

Computer softwares, amortised under straight line method over
the estimated useful life of 5 to 10 years. Internally generated
software is amortised using the straight-line method over a
period of 10 years, based upon its estimated useful economic
life.

b. Impairment of Non Financial Assets

The Company assesses at each reporting date whether there
is any indication that an asset (tangible or intangible) may be
impaired. If any indication exists, the Company estimates the
asset's recoverable amount. An asset's recoverable amount
is the higher of an asset's or cash generating unit's (CGU) net
selling price and its value in use. Where the carrying amount
of an asset or CGU exceeds its recoverable amount, the
asset is considered to be impaired and is written down to its
recoverable amount. Impairment losses are recognised in the
Statement of Profit and Loss. Assessment is also done at each
Balance Sheet date as to whether there is any indication that
an impairment loss recognised for an asset in prior accounting
periods may no longer exist or may have decreased then such
reversal is recorded in the Statement of Profit and Loss.

c. Investments in Subsidiaries

The Company has accounted for it's investments in subsidiaries
at cost. (Refer note 5)

d. Inventories

Inventories are stated at lower of cost and net realisable value.

Inventories primarily consist of packing and stationery
consumables which are valued at cost (arrived at using First-in
First-out basis).

e. Revenue Recognition
Service Charges:

Company's normal business operations consist of the business
of integrated air and ground transportation and distribution of
time sensitive packages to various destinations, primarily in
India. All income relating to normal business operations is
recognised as revenue in the Statement of profit and loss. All
other income is reported as other operating income.

Revenue has been recognised when control over the services
transfers to the customer i.e., when the customer has the
ability to control the use of the transferred services provided
and generally derive their remaining benefits. The requirement
is that a contract with enforceable rights and obligations exists
and, amongst other things, the receipt of consideration is likely,
taking into account the customer's credit quality. The revenue
corresponds to the transaction price to which the Company
is expected to be entitled. Variable consideration is included
in the transaction price when it is highly probable that a
significant reversal in the amount of revenue recognised will
not occur and as soon as the uncertainty associated with the
variable consideration no longer exists. The Company does
not expect to have contracts where the period between the
transfer of the promised services to the customer and payment
by the customer exceeds one year. Accordingly, the promised
consideration is not adjusted for the time value of money.

For each performance obligation under contracts entered for
logistic services, revenue is recognised over a certain period
of time as determined by the Company.

Other Income:

- Interest Income (including Unwinding interest on Payload
Deposit and Lease Deposit):

Interest income is recognised using the effective interest
rate(EIR) method. EIR is the rate that exactly discounts
the estimated future cash payments or receipts over the
expected life of the financial instrument or a shorter period,
where appropriate, to the gross carrying amount of the
financial asset or to the amortised cost of a financial liability.
When calculating the effective interest rate, the Company
estimates the expected cash flows by considering all the
contractual terms of the financial instrument (for example,
prepayment, extension, call and similar options) but does
not consider the expected credit losses. Interest income is
included in other income in the statement of profit and loss.

- Dividend Income:

Dividend income is recognised when the right to receive
the dividend is established.

f. Foreign Currency Transactions

Functional and Presentation currency

Items included in the financial statements of the Company
are measured using the currency of the primary economic
environment in which the entity operates ('the functional
currency'). The financial statements are presented in
Indian Rupee (INR), which is the Company's functional and
presentation currency.

Transactions and balances

Foreign currency transactions are translated into functional
currency using the exchange rates at the date of the
transactions. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in
foreign currencies at year end exchange rates are recognised
in the Statement of Profit and Loss.

Foreign exchange differences regarded as an adjustment to
borrowing costs are presented in the Statement of Profit and
Loss, within finance cost. All other foreign exchange gains and
losses are presented in the Statement of Profit and Loss on a
net basis within other gains/(losses).

Non-monetary items that are measured at fair value in a foreign
currency are translated using the exchange rates at the date
when the fair value was determined. Translation differences on
assets and liabilities carried at fair value are reported as part of
the fair value gain or loss.

g. Employee Benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary
benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees
render the related service are recognised in respect of
employees' services up to the end of the reporting period and
are measured at the amounts expected to be paid when the
liabilities are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.

Compensated absences:

Accumulated compensated absences, which are expected
to be availed or encashed within 12 months from the end of
the Balance Sheet date are treated as short term employee
benefits. The liability in respect of compensated absences of
short term nature is determined based on actuarial valuation
and is provided on an estimated basis.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave are not expected to be settled
wholly within 12 months after the end of the period in which
the employees render the related service. They are therefore
measured as the present value of expected future payments to
be made in respect of services provided by employees up to
the end of the reporting period using the projected unit credit
method. The benefits are discounted using the market yields at
the end of the reporting period that have terms approximating
to the terms of the related obligation. Remeasurements as
a result of experience adjustments and changes in actuarial
assumptions are recognised in the Statement of Profit and
Loss.

Accumulated compensated absences, which are expected to
be availed or encashed beyond 12 months from the end of
Balance Sheet date are treated as other long term employee
benefits for measurement purposes. The Company's liability
is actuarially determined (using the Projected Unit Credit
Method) at the end of each year. Remeasurements, comprising
of Actuarial losses/ gains are recognised in the Statement of
Profit and Loss in the year in which they arise.

The Company presents the leave as a short term employee
benefit obligation in the balance sheet to the extent it does
not have an unconditional right to defer its settlement for 12
months after the reporting date.

(iii) Post-employment obligations

The Company operates the following post-employment
schemes:

(a) Defined benefit plans such as gratuity

(b) Defined contribution plans such as provident fund,
super annuation fund, employee's state insurance
funds and employee's pension scheme.

Defined Benefit Plans:

Gratuity:

The Company provides for gratuity, a defined benefit plan (the
'Gratuity Plan') covering eligible employees in accordance with
the Payment of Gratuity Act, 1972. The Gratuity Plan provides
a lump sum payment to vested employees at retirement,
death, incapacitation or termination of employment, of an
amount based on the respective employee's salary and the
tenure of employment. The Company's liability is actuarially
determined (using the Projected Unit Credit method) at the
end of each year. Re-measurement of the net defined benefit
liability, which comprise actuarial gains and losses, the return
on plan assets (excluding interest) and the effect of the asset
ceiling (if any, excluding interest), are recognised immediately
in other comprehensive income (OCI).

Net interest is calculated by applying the discount rate to the
net defined benefit liability or asset. The Company recognises
the following changes in the net defined benefit obligation as
an expense in the statement of profit and loss: Service costs
comprising current service costs, past-service costs, gains
and losses on curtailments, non-routine settlements; and Net
interest expense or income.

Defined Contribution Plans:

Contribution towards Provident Fund for all employees are
made to the regulatory authorities, where the Company has
no further obligations. Such benefits are classified as Defined
Contribution Schemes as the Company does not carry any
further obligations, apart from the contributions made on a
monthly basis.

Superannuation is classified as a defined contribution scheme
of the Company. Contribution due towards Superannuation
Fund for eligible employees is made to an insurance company,
and the Company has no further obligation beyond making this
payment.

The Company also contributes to State plans, namely
Employee's State Insurance Fund and Employee's Pension
Scheme 1995, and has no further obligation beyond making its
contribution.

Company's contributions to the above funds are charged to
the Statement of Profit and Loss for the year for which the
contributions are due for payment.

(iv) Bonus plans

The Company recognises a liability and an expense for
bonuses. The Company recognises a provision where
contractually obliged or where there is a past practice that has
created a constructive obligation.

(v) Share Based Payment

Employees of the Company receive Stock Options as per the
Employee Stock Option (“ESOP”) scheme maintained and
operated by the Ultimate Holding Company. The expense is
recognized in the statement of profit and loss based on a cross
charge from Ultimate Holding Company.

h. Leases

The Company assesses at contract inception whether a
contract is or contains, a lease. That is, if the contract conveys
the right to control the use of an identified asset for a period of
time in exchange for consideration.

Company as a lessee

The Company applies a single recognition and measurement
approach for all leases, except for short-term leases and
leases of low-value assets. The Company recognises lease
liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.

Right-of-use assets

The Company recognises right-of-use assets at the
commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured
at cost, less any accumulated depreciation and impairment
losses and adjusted for any remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease
liabilities recognised, initial direct costs incurred, and lease
payments made at or before the commencement date less
any initial lease incentives received. Right-of-use assets are
depreciated on a straight-line basis over the shorter of the
lease term and the estimated useful lives of the assets, as
follows:

- Building: 2 to 15 years

- Motor Vehicles and other equipments: 1 to 5 years

The right-of-use assets are also subject to impairment
assessment. Refer to the accounting policies in section 3(b)
Impairment of non-financial assets.

Lease Liabilities

At the commencement date of the lease, the Company
recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease
payments include fixed payments less any lease incentives
receivable.

In calculating the present value of lease payments, the
Company calculates it's incremental borrowing rate by
using the Government's Zero coupon yield rates adjusted
for the financial spreads for AA rated bonds at the lease
commencement date because the interest rate implicit in the
lease is not readily determinable. After the commencement
date, the amount of lease liabilities is increased to reflect
the accretion of interest and reduced for the lease payments
made. In addition, the carrying amount of lease liabilities is
remeasured if there is a modification, a change in the lease
term.

Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition
exemption to its short-term leases of buildings, equipments
(i.e., those leases that have a lease term of 12 months or less
from the commencement date and do not contain a purchase
option). It also applies the lease of low-value assets recognition
exemption to leases of equipments that are considered to be
low value. Lease payments on short-term leases and leases of
low-value assets are recognised as expense on a systematic
basis, which reflects the pattern of lessee's benefit, i.e., on an
as and when basis.

i. Income Taxes

Income tax expense comprises current and deferred tax. It is
recognised in the Statement of Profit and Loss except to the
extent that it relates to items recognised directly in equity or in
other comprehensive income(OCI).

Current tax

Tax expense for the year, comprising current tax and deferred
tax, are included in the determination of the net profit or loss for
the year. Current tax is measured at the amount expected to
be paid to the tax authorities in accordance with the provision
of The Income Tax Act, 1961.

Current tax assets and current tax liabilities are offset only if
there is a legally enforceable right to set off the recognised
amounts and it is intended to realise the asset and set off the
liability on a net basis or simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary differences
between the carrying amounts of assets or liabilities for
financial reporting purposes and the amounts used for taxation
purposes.

Deferred tax assets are recognised for unused tax losses,
unused tax credits and deductible temporary differences to
the extent that it is probable that future taxable profits will be
available against which they can be used. Deferred tax assets
are reviewed at each reporting date and are reduced to the
extent that it is no longer probable that the related tax benefit
will be realised; such reductions are subsequently reversed
when it becomes probable that such assets will be realised.

Unrecognised deferred tax assets are reassessed at each
reporting date and recognised to the extent that it has become
probable that future taxable profits will be available against
which they can be used.

Deferred tax liabilities are recognised for all taxable temporary
differences.

Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset is
realised or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the
reporting date.

Deferred tax relating to items recognised outside profit
or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Deferred tax items are
recognised in correlation to the underlying transaction either in
OCI or directly in equity.

The measurement of deferred tax reflects the tax consequences
that would follow from the manner in which the Company
expects, at the reporting date, to recover or settle the carrying
amount of its assets and liabilities. Deferred tax assets and
liabilities are offset only if:

a) the entity has a legally enforceable right to set off current
tax assets against current tax liabilities; and

b) the deferred tax assets and the deferred tax liabilities relate
to income taxes levied by the same taxation authority on
the same taxable entity.

j. Trade and other payables

These amounts represent liabilities for goods and services
provided to the Company prior to the end of financial year
which are unpaid. The amounts are unsecured and are usually
paid as per contractual terms. Trade and other payables
are presented as current financial liabilities unless payment
is not due within 12 months after the reporting period. They
are recognised initially at their fair value and subsequently
measured at amortised cost using the effective interest
method.