M/s MILLENNIUM IMPEX PRIVATE LIMITED

SCHEDULE “A”
SIGNIFICANT ACCOUNTING POLICIES & NOTES TO ACCOUNTS
FORMING PART OF BALANCE SHEET AND PROFIT & LOSS ACCOUNT

A. Basis of preparation of Financial Statements

a) The financial statements have been prepared to comply in all material respects, in
accordance with the accounting principles generally accepted in India, including
accounting standards by the Companies Accounting specified under section 133 of the
Act, read with Rule 7 of Companies (Accounts) Rules, 2014.The financial statements
have been prepared under the historical cost convention, on an accrual basis of
accounting unless otherwise stated.
b) The classification of assets and liabilities of the Company is done into current and non-
current on the criterion specified in the Schedule III notified under the Companies Act,
2013.
c) The accounting policies discussed more fully below, are consistent with those used in
the previous year.

B. Use of Estimates
The preparation of financial statements, in conformity with generally accepted accounting
principles, requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting period. Although
these estimates are based upon management’s best knowledge of current events and actions,
actual results could differ from these estimates.

C. Current / non-current classification

All assets and liabilities are classified as current and non-current.

Assets
An asset is classified as current when it satisfies any of the following criteria:
(a) It is expected to be realized in, or is intended for sale or consumption in, the Company’s
normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is expected to be realized within 12 months after the reporting date; or
(d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle
a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets. All other assets are
classified as non-current.
 Liabilities
A Liability is classified as current when it satisfies any of the following criteria;
(a) it is expected to be settled in the Company’s normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is due to be settled within 12 months after the reporting date; or
(d) The Company does not have an unconditional right to defer settlement of the liability for
at least 12 months after the reporting date.
Current liabilities include current portion of non-current financial liabilities. All other
liabilities are classified as non-current.

Operation Cycle
Operation cycle is the time between the acquisition of assets for processing and their
realization in cash or cash equivalents. The Company considers its operating cycle to be
within a year.

D. Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and
highly liquid short-term investments with an original maturity of three months or less, and
not subject to withdrawal restriction.

E. Depreciation
Depreciation on Fixed Assets is provided on basis of useful lives Method, which are in
accordance with the lives specified in Schedule II of the Companies Act, 2013.

F. Revenue Recognition

Sales of Goods
Sale of goods is recognized when significant risks and rewards of ownership of the goods
have passed to the buyer. Sales are the invoiced value, excluding value added tax, of goods
supplied after deducting discount and allowances.

Interest Income
Interest Income is recognized on an accrual basis based on the effective rate.

Dividend Income
Dividend from investments is recognized when the right to receive dividend is established.

G. Fixed assets
Fixed assets are stated at cost or at revalued amounts less accumulated depreciation. Cost of
fixed assets includes all incidental expenses and interest costs on borrowings, attributable to
the acquisition of qualifying assets, up to the date of commissioning of assets.
H. Foreign Currency Transactions and Translations
The Company translates foreign currency transactions into Indian Rupees at the rate of
exchange prevailing at the transactions date. Monetary assets and liabilities denominated in
foreign currency are translated into Indian Rupees at the rate of exchange prevailing at the
Balance Sheet date. Non -monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate at the date of the
transaction.
Exchange differences arising on the settlement of monetary items or on reporting the
Company's monetary items at rates different from those at which they were initially
recorded during the year, or reported in previous financial statements, are recognized as
income or as expenses in the year in which they arise.

I. Earning per share

Basic earnings per share are calculated by dividing the net profit or loss for the period
attributable to equity shareholders by the weighted average number of equity shares
outstanding during the year.
For the purpose of calculating diluted earning per share, the net profit or loss for the year
attributable to equity shareholders and the weighted average number of shares outstanding
during the year are adjusted for the effects of all dilutive potential equity shares.

J. Investment
Investments that are readily realizable and intended to be held for not more than a year are
classified as current investments. Current investments are measured at cost or market value,
which is lower, determined on an individual investment basis. All other investments are
classified as long-term investments. Long term investments are measured at cost.

K. Employee Benefits :

(a) Short term employee benefits

(i) All employee benefits payable within twelve months of rendering the service are
classified as short-term employee benefits. Benefits such as salaries, bonus, etc, are
recognized in the Profit and Loss Account in the period in which the employee renders the
related service.

(b) Long term employee benefits

(i) Defined contribution plans

The employee’s provident fund scheme and employees’ state insurance fund are defined
contribution plans. Company’s contributions paid/payable during the year to provident fund
and Employee State Insurance is recognised in the Statement of Profit and Loss.
 (ii) Defined benefit plans
Gratuity scheme – This is a non funded defined benefit plan for qualifying employees. The
scheme provides for a lump sum payment to vested employees at retirement, death while
in employment or on termination of employment. The defined benefit plan has not been
maintained by the Company.

L. Taxes on Income
The expense comprises of current and deferred tax. Current income tax is measured at the
amount expected to be paid to the tax authorities in accordance with the Indian Income Tax
Act. Deferred tax reflects the impact of current period timing differences between taxable
income and accounting income for the period and reversal of timing differences of earlier
period.

Deferred tax assets and liabilities are measured, based on tax rates and laws enacted or
substantively enacted at the balance sheet date.

Deferred tax assets are recognized only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such deferred tax assets can
be realized. If the Company has carry forward of unabsorbed depreciation and tax losses,
deferred tax assets are recognized only if there is virtual certainty, supported by convincing
evidence, that such deferred tax assets can be realized against future taxable profits.

M. Borrowing Cost

Borrowing costs directly attributable to the acquisition or construction of qualifying assets

are capitalized till the date on which the asset is ready for its intended use. Qualifying assets
are those which take substantial period of time to get ready for its intended use.
Other borrowing costs are recognized as expenses in the period in which these are incurred.

N. Impairment
The Carrying amounts of the Company’s assets are reviewed at each balance sheet date to
determine whether there is any indication of impairment. If any such indication exists, the
asset’s recoverable amount is estimated as higher of its net selling price and value in use.

O. Provisions, Contingent Liabilities & Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when

there is a present obligation as a result of past event and it is probable that there will be an
outflow of resources. Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the financial statements.