1.1 COMPANY INFORMATION

Milestones Furniture Limited (“the company”) is a limited company incorporated in India, with its registered office in Thane, Maharashtra. The Company is listed on the Bombay Stock Exchange (BSE).

The Company is into business of manufacturing and selling of Furniture.

The Financial Statements for the year ended 31^st March, 2025

1.2 SIGNIFICANT ACCOUNTING POLICIES

1.2.1 STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION

a. Compliance with Indian Accounting Standards (Ind-AS) :

The financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) as notified under Section 133 of the Companies Act, 2013 (“the Act”), read with the Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time, and other relevant provisions of the Act. The Company’s financial statements comply in all material respects with the Ind AS and other accounting principles generally accepted in India.

The Financial Statements have been prepared on accrual and going concern basis. The accounting policies applied consistently all the periods presented in the financial statements. All the assets and liabilities have been classified as current and non current as per the Company’s normal operating cycle and other criteria as set out in Division II of Schedule III of the Companies Act, 2013.

b. Historical Cost Convention

The financial statements have been prepared on the historical cost basis, except for certain financial instruments and other items that are measured at fair value as required by the relevant Ind AS.

c. Functional and Presentation Currency

The financial statements are presented in Indian Rupees (?), which is also the functional currency of the Company.

d. Current versus non current classification

The Company presents assets and liabilities in the Balance Sheet based on current and non-current classification in accordance with the requirements of Ind AS 1 -Presentation of Financial Statements and Schedule III to the Companies Act, 2013. An asset is classified as current when it satisfies any of the following criteria:

• It is expected to be realized, sold, or consumed in the Company’s normal operating cycle;

• It is held primarily for the purpose of trading;

• It is expected to be realized within twelve months after the reporting period; or

• It is 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 classified as current when it satisfies any of the following criteria:

• It is expected to be settled in the Company’s 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

• The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date

All other liabilities are classified as non-current.

Deferred Tax Asset and Liabilities

The Deferred Tax Asset and Liabilities are classified as Non Current Asset and Liabilities.

Operating Cycle:

The Operating Cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. The Company has identified its operating cycle as twelve months for the purpose of current and non-current classification.

e. Use of Estimates and Judgements

The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS) requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, expenses, and disclosures of contingent liabilities at the reporting date. Although these estimates are based on management’s best knowledge of current events and actions, actual results may differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected. Management believes that the estimates used in preparation of these financial statements are prudent and reasonable.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying values of assets and liabilities within the next financial year are discussed below:

(i) Useful lives of Property Plant and Equipment

The Property Plant AND Equipment are depreciated on a written down value basis over their respective useful lives. Management estimates the useful lives of these assets as detailed in Note - 2 below. Changes in expected level of usage, technological developments, level of wear and tear could impact the economic useful lives and the residual values of these assets, therefore future depreciation charges could be revised and could have an impact on the future years.

(ii) Taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of business relationships and the long term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future income and expenses already recorded. The Company establishes provisions based on reasonable estimates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective domicile of the companies.

(iii) Impairment of Financial Assets

The impairment provisions of financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

(iv) Impairment of Non Financial Assets

The Company assesses at each reporting date whether there is any indication that a non-financial asset may be impaired. If any such indication exists, or when annual impairment testing is required for an asset (such as goodwill or intangible assets with indefinite useful lives), the Company estimates the asset’s recoverable amount.

The recoverable amount is the higher of an asset’s fair value less costs of disposal

and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

If the carrying amount of an asset (or cash-generating unit) exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The impairment loss is recognized in the Statement of Profit and Loss. the purpose of impairment testing, assets are grouped at the lowest levels for which there are separately identifiable cash inflows — referred to as cash-generating units (CGUs).

An assessment is made at each reporting date to determine whether there is any indication that previously recognized impairment losses (other than those for goodwill) may no longer exist or may have decreased. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the recoverable amount since the last impairment loss was recognized. Such a reversal is recognized immediately in the Statement of Profit and Loss, to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized previously.

1.2.2 Property, Plant and Equipment

Property, Plant & Equipment are accounted for on historical cost basis (inclusive of the cost of installation and other incidental costs till commencement of commercial production) net of recoverable taxes, less accumulated depreciation and impairment loss, if any. It also includes the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

Subsequent costs are added to the existing asset’s carrying amount or recognized 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. All other repairs and maintenance are charged to the statement of Profit and Loss during the period in which they are incurred.

Cost of leasehold land is amortized over the period of lease.

Depreciation on Property, Plant & Equipment is provided on a pro rata basis on written down value basis, over the useful life of the assets estimated by the management, in the manner prescribed in Schedule II of the Companies Act, 2013 till 31.03.2025 have in the current financial year been adopted, according to Schedule II of the Companies Act, 2013

Based on usage pattern, internal assessment and technical evaluation carried out by the technicians, the management now believes that the useful lives as prescribed in the Schedule II of the Companies Act, 2013 best represents the period over which the management expects to use these assets, Hence the management has revised its estimate of the useful life of depreciable asset in line with Schedule II of the Companies Act, 2013.

Gains or losses arising on the retirement or disposal of property, plant and equipment are recognized in the Statement of Profit & Loss.

Property, Plant and Equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as Capital Work in Progress.

1.2.3 Investment Property

Property that is held for long term rental yields or for capital appreciation or both and that is not occupied by the company, is classified as investment property. Investment properties are measured initially at cost, including transaction cost. Subsequent to initial recognition, investment property is measured at cost less accumulated depreciation and accumulated impairment losses, if any. Subsequent costs are added to the carrying amount only when it is probable that it will increase its useful life. All other repairs and maintenance are charged to the Statement of Profit and Loss during the period in which they are incurred.

Investment property is derecognized when either it has been disposed off on when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gain or loss arising on de recognition of the investment property is included in the Statement of Profit & Loss.

Transfers are made to/from investment property only when there is a change in its use. Transfers between investment property is made at the carrying amount of the property transferred.

1.2.4 Financial Instruments

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

1.2.5 Cash And Cash Equivalents.

Cash and Cash Equivalents comprises cash in hand and demand deposit with banks which are short term (three months or less from the date of acquisition), highly liquid investments that are readily convertible into cash and which are subject to significant risk of changes in value.

1.2.6 Provisions and Contingent Liabilities

a) Provisions

Provisions are recognized when the Group has a present legal or constructive obligation 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.

The amount recognized as a provision is the best estimate of the expenditure required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources will be required to settle the obligation, the provision is reversed.

b) Contingent Liabilities

Contingent liabilities are possible obligations that arise from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company; or present obligations that arise from past events but are not recognized

1.2.7 Revenue Recognition

a) Revenue from rendering of services is recognized when the performance of agreed contractual task has been completed.

b) Interest income is recognized on time proportion basis taking into account the amount outstanding and applicable interest rates.

c) Insurance claims are recognized when the rights to receive dividend is established.

d) Dividend income on investment is recognized when the right to receive dividend is established.

e) Export Incentive such as duty drawbacks is recognized on post export basis on the basis of their entitlement rates.

f) The Company has evaluated the impact of COVID 19 resulting from (i) the possibility of constraints to render services which may require revision of estimations of costs to complete the contract because of additional efforts (ii) onerous obligations (iii) penalties relating to breaches of service level agreements and (iv) termination or deferment of contract by customers. The Company has concluded that the impact of COVID 19 is not material based on such evaluation. Due to the nature of pandemic, the company will continue to monitor developments to identify significant uncertainties relating to revenue in future periods.

1.2.8 Employee Benefits

Short Term Employee Benefits

All employee benefits are payable within 12 months of rendering the services are classified as short term benefits. Such benefits include Salaries, Wages, Bonus, Awards,

Ex Gratia, Performance incentive/pay etc. and the same are recognized in the period in which the employee renders the related services.

1.2.9 Operating Leases

Operating Leases where the lessor effectively retains substantially all the risks and benefits of ownership over the leased term are classified as operating leases. Operating lease rentals are recognized as an expenses in the statement of profit and loss on straight line basis over the lease term, unless the payments are structured to increase in line with the expected general inflation to compensate for the lessor in expected inflationary cost increase.

1.3 Foreign Currency Transactions

Transactions in foreign currencies are recorded in the functional currency (Indian Rupees) at the exchange rates prevailing on the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies outstanding at the reporting date are translated at the exchange rate prevailing at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognized in the Statement of Profit and Loss in the period in which they arise.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Nonmonetary 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.

Foreign exchange gains and losses relating to borrowings and other foreign currency monetary items are presented as finance income or finance costs in the Statement of Profit and Loss.

Exchange differences arising from translation of financial statements of foreign operations (if any) are recognized in Other Comprehensive Income and accumulated in the Foreign Currency Translation Reserve (FCTR) until disposal of such foreign operations.

1.4 Taxation

Tax Expenses for the year comprises of Current Tax and Deferred Tax. a. Current Tax

Current Income Tax, Assets and Liabilities are measured at the amount expected to be paid to or recovered from the taxation authorities in accordance with the Income Tax Act, 1961 and the Income Computation and Disclosure Standards (ICDS) enacted in India by using tax rates and the tax laws that are enacted at the reporting date.

b. Deferred Tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and their corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences, the carryforward of unused tax credits, and unused tax losses, to the extent that it is probable that future taxable profits will be available against which those deductible temporary differences and losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax is measured at the tax rates and laws that have been enacted or substantively enacted by the end of the reporting period and that are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

Deferred tax relating to items recognized outside profit or loss is also recognized outside profit or loss — either in Other Comprehensive Income (OCI) or directly in equity, depending on where the underlying item was recognized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority on the same taxable entity.

1.5 Earning Per Share:

The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares.

• Basic EPS is computed by dividing the profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the reporting period.

• Diluted EPS is computed by adjusting the profit or loss attributable to equity shareholders and the weighted average number of shares outstanding for the effects of all dilutive potential equity shares (such as share options, convertible debentures, or share warrants).

The weighted average number of equity shares and potential equity shares are adjusted retrospectively for all periods presented for share splits, bonus issues, or other capital changes.