V. Material accounting policies

a. Current versus Non-Current Classification

All the assets and liabilities have been classified
as current or non-current as per the Company's
normal operating cycle and other criteria set out in
the Division II the Schedule III to the Act. An asset is
treated as current when it is:

• Expected to be realised or intended to be sold
in normal operating cycle*

• Held primarily for purpose of trading

• Asset is intended for sale or consumption

• Expected to be realised within twelve months
after the reporting period, or

• Cash or cash equivalent unless restricted from
being exchanged or used to settle a liability
for at least twelve months after the reporting
period.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating
cycle^*

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after
the reporting period, or

• There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period

The Company classifies all other liabilities as non¬
current.

Deferred tax assets and liabilities are classified as
non-current assets and liabilities.

*Operating cycle is the time between acquisition
of assets for processing and their realisation in
cash and cash equivalents, the Company has
ascertained its operating cycle as 12 months for the
purpose of current or non-current classification of
assets and liabilities.

b. Property, Plant and Equipment

Recognition and initial measurement

Property, plant and equipment are stated at their
cost of acquisition. The cost comprises purchase
price, duties, freight charges, initial insurance
charges, borrowing cost if capitalization criteria
are met and any other directly attributable cost of
bringing the asset to its working condition for the
intended use. Any trade discount and rebates are
deducted in arriving at the purchase price.

Subsequent costs are included in the asset's
carrying amount or recognized as a separate asset,
as appropriate, only when it is probable that future
economic benefits attributable to such subsequent
cost associated with the item willflow to the
Company. All other repair and maintenance costs
are recognized in standalone statement of profit or
loss as incurred.

Freehold land is carried at cost. All other items
of property, plant and equipment are stated at
cost less depreciation and impairment, if any,
Historical cost includes expenditure that is directly
attributable to the acquisition of the items.

In case an item of property, plant and equipment
is acquired on deferred payment basis, interest
expenses included in deferred payment is
recognized as interest expense and not included in
cost of asset.

Depreciation methods, estimated useful lives
and residual value.

Depreciation on property, plant and equipment is
provided on the straight line method arrived on the
basis of the useful life prescribed under Schedule II
of the Companies Act, 2013. The following useful
life of assets has been taken by the Company:
Management believes that useful life of assets are
same as those prescribed in Schedule II to the Act.

The residual values are not more than 5% of the
original cost of the asset. The asset's residual
values, useful lives and method of depreciation are
reviewed at each financial year end and adjusted
prospectively, if appropriate.

Where, during any financial year, any addition has
been made to any asset, or where any asset has
been sold, discarded, demolished or destroyed,
or significant components replaced; depreciation
on such assets is calculated on a pro rata basis as
individual assets with specific useful life from the
month of such addition or, as the case may be, up
to the month on which such asset has been sold,
discarded, demolished or destroyed or replaced.

Advance paid towards the acquisition of property,
plant and equipment outstanding at each Balance
Sheet date is classified as capital advance under
other non-current assets and cost of assets not
ready to use before such date are disclosed under
'Capital work in progress'

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

c. Intangible Assets

Recognition and initial measurement

Intangible assets acquired separately are measured
on initial recognition at cost. Following initial
recognition, intangible assets are carried at cost
less accumulated amortization and accumulated
impairment losses, if any.

Subsequent measurement (amortisation and useful
lives)

Allfinite-lived intangible assets are accounted
for using the cost model whereby capitalized
costs are amortized on a straight-line basis over
their estimated useful lives. The estimated useful
life of an identifiable intangible asset is based
on a number of factors including the effects of
obsolescence, demand, competition, and other
economic factors (such as the stability of the
industry, and known technological advances), and
the level of maintenance expenditures required to
obtain the expected future cash flows from the
asset. Residual values and useful lives are reviewed
at each reporting date and any change in the same
is accounted for prospectively.

De-recognition

Gains or losses arising from de-recognition of an
intangible asset are measured as the difference
between the net disposal proceeds and the
carrying amount of the asset and are recognised in
the standalone statement of profit or loss when the
asset is de-recognised.

d. Impairment of Non-Financial Assets

The Company assesses, at each reporting date,

whether there is an indication that an asset may
be impaired. If any indication exists, or when
annual impairment testing for an asset is required,
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)
fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual
asset, unless the asset does not generate cash
inflows that are largely independent of those from
other assets or groups of assets. When the carrying
amount of an asset or CGU exceeds its recoverable
amount, the asset is considered impaired and is
written down to its recoverable amount.

Impairment losses of continuing operations are
recognised in the standalone statement of Profit
and Loss and after impairment, depreciation is
provided on the revised carrying amount of the
asset over its remaining useful life.

The impairment assessment for all assets is made at
each reporting date to determine whether there is
an indication that previously recognised impairment
losses no longer exist or have decreased. If such
indication exists, the Company estimates the
asset's or CGU's recoverable amount. A previously
recognised impairment loss is reversed only if there
has been a change in the assumptions used to
determine the asset's recoverable amount since
the last impairment loss was recognised. The
reversal is limited so that the carrying amount of
the asset does not exceed its recoverable amount,
nor exceed the carrying amount that would have
been determined, net of depreciation, had no
impairment loss been recognised for the asset
in prior years. Such reversal is recognised in the
standalone statement of profit and loss.

e. Borrowing Costs

Borrowing costs directly attributable to the
acquisition, construction or production of a
qualifying asset are capitalised during the period of
time that is necessary to complete and prepare the
asset for its intended use or sale. A qualifying asset
is one that necessarily takes substantial period of
time to get ready for its intended use. All other
borrowing costs are charged to the standalone
statement of profit and loss as incurred.

f. Functional and Presentation Currency

The Standalone Financial Statements are
presented in Indian Rupees (INR), which is also the

Company's functional and presentation currency
of the Company.

Foreign Currencies

Transactions and balances

Initial recognition

Transactions in foreign currencies are initially
recorded by the Company at its functional currency
exchange rates at the transaction date.

Subsequent measurement

At each Balance sheet date, foreign currency
monetary items are reported at the closing spot
rate. Non-monetary items that are measured in
terms of historical cost in foreign currency are not
translated.

Exchange differences

Exchange differences arising on settlement of
monetary items or on reporting of monetary items
at each Balance Sheet date at the closing spot rate
are recognised in the Statement of Profit and Loss
in the period in which they arise.

g. Leases

A contract is, or contains, a lease 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 assesses whether a contract is or
contains a lease at the inception of the contact. The
contract is, or contains, a lease if fulfillment of the
contract is dependent on the use of a specific asset
or assets and the contract conveys a right to use
the asset or assets, even if that right is not explicitly
specified in a contract.

The Company's lease asset classes primarily consist
of leases for land and buildings. The company
assesses whether a contract contains a lease, at
inception of a contract. A contract is, or contains,
a lease if the contract conveys the right to control
the use of an identified asset for a period of time
in exchange for consideration. To assess whether a
contract conveys the right to control the use of an
identified asset, the company assesses whether:

I. the contract involves the use of an identified
asset

II. the company has substantially all of the

economic benefits from use of the asset
through the period of the lease and

III. the company has the right to direct the use of
the asset.

At the date of commencement of the lease, the
Company recognizes a right-of-use asset ("ROU")
and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for
leases with a term of twelve months or less (short¬
term leases) and low value leases. For these short¬
term and low value leases, the Company recognizes
the lease payments as an operating expense in
the standalone statement of profit and loss on a
straight-line basis over the term of the lease.

Certain lease arrangements include the options to
extend or terminate the lease before the end of the
lease term. ROU assets and lease liabilities includes
these options when it is reasonably certain that they
will be exercised.

Initial Measurement

The right-of-use assets are initially recognized
at cost, which comprises the initial amount of the
lease liability adjusted for any lease payments made
at or prior to the commencement date of the lease
plus any initial direct costs less any lease incentives
(if any).

The lease liability is initially measured at amortized
cost at the present value of the future lease
payments. The lease payments are discounted
using the interest rate implicit in the lease or, if
not readily determinable, using the incremental
borrowing rates in the country of domicile of these
leases.

Subsequent Measurement

Right-of-use assets are subsequently measured
at cost less accumulated depreciation and
impairment loss,( if any). ROU is depreciated from
the commencement date on a straight-line basis
over the shorter of the lease term and useful life of
the underlying asset.

Lease liability is subsequently measured by

increasing the carrying amount to reflect interest
and reducing the carrying amount to reflect the
lease payments made.

Lease liabilities are re-measured with a
corresponding adjustment to the related right of
use asset if the Company changes its assessment if
whether it will exercise an extension or a termination
option.

Lease liability and ROU asset have been separately
presented in the Balance Sheet.

The Company as a lessor

Leases for which the Company is a lessor is classified
as finance or operating lease. Leases in which the
company does not transfer substantially all the risks
and rewards incidental to ownership of an asset are
classified as operating leases. Lease income from
operating leases is recognized in the standalone
statement of profit and loss income on a straight¬
line basis over the lease term unless the receipts
are structured to increase in line with expected
general inflation to compensate for the expected
inflationary cost increases. The respective leased
assets are included in the balance sheet based on
their nature.

h. Fair Value Measurement

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is
measured or disclosed in the Standalone Financial
Statements are categorized within the fair value
hierarchy, described as follows, based on the
lowest level input that is significant to the fair value
measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in
active markets for identical assets or liabilities

Level 2 - Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is directly or indirectly observable

Level 3 - Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is unobservable

The fair value of financialinstruments traded in
active markets is based on quoted market prices at
the reporting dates. A market is regarded as active

if quoted prices are readily and regularly available
from an exchange, dealer, broker, industry group,
pricing service, or regulatory agency, and those
prices represent actual and regularly occurring
market transactions on an arm's length basis. The
fair value for these instruments is determined using
Level 1 inputs.

The fair value of financialinstruments that are
not traded in an active market (for example, over
the counter derivatives) is determined by using
valuation techniques. These valuation techniques
maximize the use of observable market data where
it is available and rely as little as possible on entity
specific estimates. If all significant inputs required
to fair value an instrument are observable, the
instrument is fair valued using level 2 inputs.

If one or more of the significant inputs is not based
on observable market data, the instrument is fair
valued using Level 3 inputs.

For the purpose of fair value disclosures, the
Company has determined classes of assets and
liabilities on the basis of the nature, characteristics
and risks of the asset or liability and the level of the
fair value hierarchy as explained above.

i. Revenue Recognition

The Company derives revenues primarily from
business of freight.

Revenue is recognized either at a point in time
or over time, when (or as) the Company satisfies
performance obligations by transferring the
promised goods or services to its customers. The
Company has concluded that it is the principal in all
of its revenue arrangements since it is the primary
obligor in all the revenue arrangements as it has
pricing latitude and are custodian of goods and is
also exposed to credit risks.

The Company recognizes revenue from contracts
with customers based on a five steps model (refer
note 35). The Company recognizes contract
liabilities for consideration received in respect of
unsatisfied performance obligations and reports
these amounts as other liabilities in the standalone
statement of financialposition. Similarly, if the
Company satisfies a performance obligation
before it receives the consideration, the Company
recognizes either a contract asset or a receivable in
its standalone statement of financial position.

The Company applies the revenue recognition

criteria to each separately identifiable component
of the sales transaction as set out below:

Express cargo delivery services:

Revenue from services rendered is recognised,
using percentage-of-completion-method, in
proportion to the stage of completion of the
transaction at the reporting date when the outcome
of the transaction can be estimated reliably.

Revenue is measured at fair value of the
consideration received or receivable, after
deduction of any trade discounts, volume rebates
and any taxes or duties collected on behalf of the
government which are levied on services such as
Goods and service tax.

j. Other Income
Rental Income:

Income from rent is recognized over the period of
the contract on straight line basis. Initial direct cost
is expensed off when incurred.

Interest Income:

Interest income on fixed deposits is recognized
on time proportion basis taking into account the
amount outstanding and rate applicable.

For all Financial Assets measured at amortised cost
or at fair value through other comprehensive income
(refer 'k' below), interest income is recorded using
the effective interest rate (EIR) i.e the rate that
exactly discounts estimated future cash receipts
through the expected life of the financial asset to
the net carrying amount of the financial assets. The
future cash flows include all other transaction costs
paid or received, premiums or discounts if any,
etc. Interest income recognised in the standalone
statement of profit and loss.

Dividends:

Dividends are recognised in the standalone
statement of profit and loss only when the right to
receive payment is established.

Profit on sale of Investments:

Profit on sale of financial instruments (measured
at amortised cost or FVTOCI or through profit and
loss) recognized in the standalone statement of
profit and loss.

k. Financial Instruments
Financial assets

Financial instruments are recognised when the
company becomes a party to the contractual
provisions of the instrument. Financial assets and
liabilities initially measured at Fair value. Transaction
cost that are directly attributable to the acquisition
and issue of financial assets and financial liabilities
(other than financial assets and financial liabilities
at fair value through profit or loss) or added to
or deducted from fair value measured on initial
recognition of financial assets and financial liabilities.

Subsequent measurement

Classification and subsequent measurement

For the purpose of subsequent measurement,
financialassets are classified into the following
categories upon initial recognition:

i. Financial assets at amortised cost - a financial
instrument is measured at amortised cost if both
the following conditions are met:

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

• 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.

After initial measurement, such financial assets are
subsequently measured at amortised cost using
the effective interest method.

ii. Financial assets at fair value through other
comprehensive income (FVTOCI):

Financial assets held within a business model whose
objective is to hold financialassets in order to
collect contractual cash flows, selling the financial
assets and the contractual terms of the financial
assets give rise on specified dates to cash flows
that are solely payments of principal and interest on
the principal amount outstanding are measured at
FVTOCI. Fair Value movements in financial assets
at FVTOCI are recognised in other comprehensive
income. Cumulative gain or loss previously
recognised in OCI is reclassified from the equity to
other income' in the standalone statement of profit
and loss.

iii. Financial assets at fair value through profit or
loss (FVTPL)

Financial asset are measured at fair value through

profit or loss if it does not meet the criteria for
classification as measured at amortised cost or at
fair value through other comprehensive income. All
fair value changes, including interest and dividend if
any, recognized as 'other income' in the standalone
statement of profit and loss.

a. Equity Instruments- All equity investments in
scope of Ind AS 109 are measured at fair value.
Equity instruments which are held for trading
are generally classified at fair value through
profit and loss (FVTPL). For all other equity
instruments, the Company has to classify
the same either at fair value through other
comprehensive income (FVOCI) or fair value
through profit and loss (FVTPL). The Company
makes such election on an instrument by
instrument basis. The classification is made on
initial recognition and is irrevocable.

b. Debt Instruments- These are measured at
FVOCI have contractual terms that give rise
on specified dates to cash flows that are solely
payments of principal and interest on principal
outstanding and that are held within a business
model whose objective is achieved by both
collecting contractualcash flows and selling
financial assets. These instruments largely
comprise long term investments made by the
Company.

c. Trade Receivable- An impairment analysis
performed at each reporting date. It requires
expected lifetime losses to be recognized
from initial recognition of the receivables. As
a practical expedient, the Company uses a
provision matrix to determine the impairment
loss allowance on its portfolio of its trade
receivable. The provision matrix is based on
historical trend, industry practices and the
business environment in which the entity
operates or any other appropriate basis
observed default rates over the expected
life of the trade receivable. At every reporting
date, the historical observed default rates are
updated.

d. Other Financial assets-For recognition of
impairment loss on other financial asset and risk
exposure, the Company determines whether
there has been a significant increase in the
credit risk since initial recognition and if credit
risk has been increased significantly, impairment
loss is provided.

A financial asset is primarily de-recognised when
the rights to receive cash flows from the asset
expires or when it transfers the financial assets and
all the risk and reward of ownership of the assets to
another entity.

2. Financial liabilities

Initial recognition and measurement

Financial liabilities are recognised when the
Company becomes a party to the contractual
provisions of the instrument. Financial liabilities are
initially measured at the amortised cost unless at
initial recognition, they are classified as fair value
through profit and loss. In case of trade payables,
they are initially recognised at fair value and
subsequently, these liabilities are held at amortised
cost, using the effective interest rate method.

Subsequent measurement

After initial recognition, the financial liabilities are
subsequently measured at amortised cost using
the effective interest rate method ('EIR').

Amortised cost is calculated by considering any
discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The effect
of EIR amortisation is included as finance costs in
the standalone statement of profit and loss.

De-recognition of financial liabilities

A financial liability is de-recognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another liability 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 de-recognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
standalone statement of profit or 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 realize the assets and settle
the liabilities simultaneously.

l. Retirement and Other Employee Benefits

Defined contribution plan

Defined contribution plan such as provident fund,
employee state insurance scheme, labour welfare
fund and benevolent fund are charged to the
standalone statement of profit and loss as incurred.
The Company has no obligation, other than the
contribution payable to these funds/schemes. The
Company recognizes contribution payable to these
funds/schemes as an expense, when an employee
renders the related service for that period. If the
contribution already paid exceeds the contribution
due for services received before the balance
sheet date, then excess is recognized as an asset
to the extent that the pre-payment will lead to, for
example, a reduction in future payment or a cash
refund.

Defined benefit plans

The Company provides for gratuity, a defined
benefit plan covering eligible employees. The
gratuity plans provides lump sum payment to vested
employees at retirement, death, incapacitation or
termination of employment, of an amount base
on the respective employees base salary and the
tenure of employment. Gratuity is funded through
investments with an insurance service provider & the
Company administered trust (TCI Express Gratuity
Fund Trust). A provision for gratuity liability to the
employee is made on the basis of actuarial valuation
determined using the projected unit credit method.
The benefits are discounted using the discount
rates for Government Securities at the end of the
reporting period that have terms approximating to
the terms of the related obligation.

Remeasurements, comprising of actuarial gains and
losses, excluding amounts included in net interest
on the net defined benefit liability are recognized
immediately in the standalone balance sheet with a
corresponding debit or credit to retained earnings
through Other Comprehensive Income in the
period in which they occur.

Other employee benefits

Compensated absences

Liability in respect of compensated absences
becoming due or expected to be availed within
one year from the balance sheet date is recognised
on the basis of undiscounted value of estimated
amount required to be paid or estimated value of
benefit expected to be availed by the employees.
Liability in respect of compensated absences

becoming due or expected to be availed more than
one year after the balance sheet date is estimated
on the basis of an actuarial valuation performed by
an independent actuary using the projected unit
credit method.

Other short term benefits

Expense in respect of other short-term benefits is
recognized on the basis of amount paid or payable
for the period during which services are rendered
by the employees.

m. Employee Stock Option Plan ( Share Based
Payments)

The fair value of options granted under Employee
Stock Option Plan is recognised as an employee
benefits expense with a corresponding increase
in equity. The total amount to be expensed is
determined by reference to the fair value of the
options. The total expense is recognised over the
vesting period, which is the period over which all of
the specified vesting conditions are to be satisfied.
At the end of each period, the entity revises
its estimates of the number of options that are
expected to vest based on the non-market vesting
and service conditions. It recognizes the impact of
the revision to original estimates, if any, in profit or
loss, with a corresponding adjustment to equity.