Notes to Accounts of Cupid Ltd.

Mar 31, 2025

Provision

A provision is recognized when the Company has
a present obligation (legal or constructive) as a
result of 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. These estimates are reviewed at each
reporting date and adjusted to reflect the current
best estimates. If the effect of the time value of
money is material, provisions are discounted
using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision
due to the passage of time is recognized as a
finance cost.

Contingent liabilities

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence

of one or more uncertain future events beyond
the control of the Company or a present obligation
that is not recognized because it is not probable
that an outflow of resources will be required to
settle the obligation. A contingent liability also
arises in extremely rare cases, where there is
a liability that cannot be recognized because it
cannot be measured reliably. The Company does
not recognize a contingent liability but discloses
its existence in the financial statements unless the
probability of outflow of resources is remote.

Provisions and contingent liabilities are reviewed
at each balance sheet date.

2.16 Retirement and other employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including
nonmonetary benefits that are expected to
be settled wholly within twelve months after
the end of the period in which the employees
render the related service are recognized in
respect of employee service up to the end of
the reporting period and are measured at the
amount expected to be paid when the liabilities
are settled. The liabilities are presented as
current employee benefit obligations in the
balance sheet.

(ii) Other long-term employee benefit obligations
a) Gratuity

The Group has a defined benefit plan (the
"Gratuity Plan”). The gratuity plan provides
a lump sum payment to employees who
have completed four years and two
hundred and forty days or more of service
at retirement, disability or termination
of employment, being an amount based
on the respective employee’s last drawn
salary and the number of years of
employment with the Group.

The Gratuity Plan, which is defined
benefit plan, is managed by Cupid Limited
Employees Group Gratuity Assurance
Scheme ("the trust”) with its investments
maintained with Life insurance
Corporation of India. The liabilities with
respect to Gratuity Plan are determined by
actuarial valuation on projected unit credit
method on the balance sheet date, based
upon which the Company contributes
to the Gratuity Scheme. The difference,
if any, between the actuarial valuation

of the gratuity of employees at the year
end and the balance of funds is provided
for as assets/ (liability) in the books. Net
interest is calculated by applying the
discount rate to the net defined benefit
liability or asset. The Company recognizes
the following changes in the net defined
benefit obligation under Employee benefit
expense in statement of profit or loss:

a) service cost comprising current
service costs, past-service costs,
gains and losses on curtailments and
non routine settlements

b) Net interest expense or income
remeasurements, comprising of
actuarial gains and losses, the
effect of the asset ceiling, excluding
amounts included in net interest on
the net defined benefit liability and
the return on plan assets (excluding
amounts included in net interest
on the net defined benefit liability),
are recognized immediately in the
Balance Sheet with a corresponding
debit or credit to retained earnings
through other comprehensive
income in the period in which they
occur. Remeasurements are not
reclassified to profit or loss in
subsequent periods.

b) Provident fund

Retirement benefit in the form of
provident fund is a defined contribution
scheme. The Company has no obligation,
other than the contribution payable to the
provident fund. The Company recognizes
contribution payable through provident
fund scheme as an expense, when an
employee renders the related services.
If the contribution payable to scheme for
service received before the balance sheet
date exceeds the contribution already
paid, the deficit payable to the scheme
is recognized as liability after deducting
the contribution already paid. If the
contribution already paid exceeds the
contribution due for services received
before the balance sheet date, then
excesses recognized as an asset to the
extent that the prepayment will lead to, for
example, a reduction in future payment or
a cash refund.

(c) Other employee benefits

Remeasurement gains and losses
arising from experience adjustments

and changes in actuarial assumptions
in respect of gratuity are recognised in
the period in which they occur, directly
in other comprehensive income and
are never reclassified to statement of
profit and loss. Changes in the present
value of the defined benefit obligation
resulting from plan amendments or
curtailments are recognised immediately
in the statement of profit and loss as past
service cost.

(iii) Share Based payments

Employees (including senior executives) of the
Company receive remuneration in the form of
share-based payments, whereby employees
render services as consideration for equity
instruments (equity-settled transactions).
The cost of equity-settled transactions is
determined by the fair value at the date
when the grant is made using an appropriate
valuation model.

That cost is recognised, together with a
corresponding increase in share-based
payment (SBP) reserves in equity, over the
year in which the performance and/or
service conditions are fulfilled in employee
benefits expense. The cumulative expense
recognised for equity-settled transactions
at each reporting date until the vesting date
reflects the extent to which the vesting year
has expired and the Company’s best estimate
of the number of equity instruments that will
ultimately vest. The expense or credit in the
standalone statement of profit and loss for a
year represents the movement in cumulative
expense recognised as at the beginning and
end of that year and is recognised in employee
benefits expense.

Service and non-market performance
conditions are not taken into account when
determining the grant date fair value of
awards, but the likelihood of the conditions
being met is assessed as part of the
Company’s best estimate of the number of
equity instruments that will ultimately vest.
Market performance conditions are reflected
within the grant date fair value. Any other
conditions attached to an award, but without
an associated service requirement, are
considered to be non-vesting conditions. Non¬
vesting conditions are reflected in the fair
value of an award and lead to an immediate
expensing of an award unless there are also
service and/ or performance conditions.
No expense is recognised for awards that

do not ultimately vest because non-market
performance and/or service conditions have
not been met. Where awards include a market
or non-vesting condition, the transactions are
treated as vested irrespective of whether the
market or non-vesting condition is satisfied,
provided that all other performance and/or
service conditions are satisfied.

When the terms of an equity-settled award are
modified, the minimum expense recognised
is the expense had the terms had not been
modified, if the original terms of the award are
met. An additional expense is recognised for
any modification that increases the total fair
value of the share-based payment transaction
or is otherwise beneficial to the employee
as measured at the date of modification.
For cancelled options, the payment made
to the employee shall be accounted for as a
deduction from equity, except to the extent
that the payment exceeds the fair value of the
equity instruments of the Company, measured
at the cancellation date. Any such excess
from the fair value of equity instrument shall
be recognised as an expense. The dilutive
effect of outstanding options is reflected as
additional share dilution in the computation of
diluted earnings per share.

2.17 Investment in subsidiary:

A subsidiary is an entity that is controlled by
another entity. The Company’s investments in
its subsidiaries, associates and joint ventures
are accounted at cost less impairment as per
IND AS 27.

The Company regardless of the nature of
its involvement with an entity (the investee),
determines whether it is a parent by assessing
whether it controls the investee. The Company
controls an investee when it is exposed, or has
rights, to variable returns from its involvement
with the investee and has the ability to affect
those returns through its power over the
investee.

The Company reviews its carrying value of
investments carried at cost annually, or more
frequently when there is an indication for
impairment. If the recoverable amount is less
than its carrying amount, the impairment loss
is recorded in the statement of profit and loss.

When an impairment loss subsequently
reverses, the carrying amount of the
Investment is increased to the revised
estimate of its recoverable amount, so that the

increased carrying amount does not exceed
the cost of the Investment. A reversal of an
impairment loss is recognised immediately in
statement of profit and loss.

2.18 Financial Instruments

A financial instrument is any contract that gives

rise to a financial asset of one entity and a financial

liability or equity instrument of another entity.

(i) Financial Assets

Initial recognition and measurement

Financial assets are classified, at initial
recognition, as subsequently measured at
amortised cost, fair value through other
comprehensive income (OCI), and fair value
through profit or loss.

The classification of financial assets at initial
recognition depends on the financial asset’s
contractual cash flow characteristics and
the Company’s business model for managing
them. With the exception of trade receivables
that do not contain a significant financing
component or for which the Company has
applied the practical expedient, the Company
initially measures a financial asset at its fair
value plus, in the case of a financial asset not
at fair value through profit or loss, transaction
costs.

Trade receivables that do not contain a
significant financing component or for
which the Company has applied the practical
expedient and are measured at the transaction
price determined under Ind AS 115. Refer to
the accounting policies in section ''Revenue
from contracts with customers’.

In order for a financial asset to be classified
and measured at amortised cost or fair value
through OCI, it needs to give rise to cash
flows that are ''solely payments of principal
and interest (SPPI)’ on the principal amount
outstanding. This assessment is referred to as
the SPPI test and is performed at an instrument
level. Financial assets with cash flows that are
not SPPI are classified and measured at fair
value through profit or loss, irrespective of the
business model.

The Company’s business model for managing
financial assets refers to how it manages
its financial assets in order to generate
cash flows. The business model determines
whether cash flows will result from collecting

contractual cash flows, selling the financial
assets, or both. Financial assets classified and
measured at amortised cost are held within
a business model with the objective to hold
financial assets in order to collect contractual
cash flows while financial assets classified
and measured at fair value through profit or
loss are held within a business model for near
term selling.

Subsequent measurement

For purposes of subsequent measurement
financial assets are classified in following
categories:

- Financial assets at amortised cost (debt
instruments),

- Financial assets at fair value through
other comprehensive income (FVTOCI)
with recycling of cumulative gains and
losses (debt instruments)

- Financial assets designated at fair
value through OCI with no recycling
of cumulative gains and losses upon
derecognition (equity instruments)

- Financial assets at fair value through
profit or loss

Financial assets at amortised cost (debt
instruments)

A ''financial asset’ is measured at the amortised
cost if both the following conditions are met:

a) Business Model Test : The objective is
to hold the financial asset to collect the
contractual cash flows (rather than to
sell the instrument prior to its contractual
maturity to realize its fair value changes)
and;

b) Cash flow characteristics test: The

contractual terms of the financial asset
give rise on specific dates to cash flows
that are solely payments of principal and
interest on principal amount outstanding.

This category is most relevant to the Company.
After initial measurement, such financial
assets are subsequently measured at
amortized cost using the effective interest rate
(EIR) method. Amortised cost is calculated by
taking into account any discount or premium
on acquisition and fees or costs that are
an integral part of EIR. EIR is the rate that
exactly discounts the estimated future cash

receipts over the expected life of the financial
instrument or a shorter period, where
appropriate, to the gross carrying amount
of the financial asset. When calculating the
effective interest rate, the Company estimates
the expected cash flows by considering all the
contractual terms of the financial instrument
but does not consider the expected credit
losses. The EIR amortization is included in
other income in profit or loss. The losses
arising from impairment are recognized in the
profit or loss. This category generally applies
to trade and other receivables.

Financial assets at fair value through OCI
(FVTOCI) (debt instruments)

A ''financial asset’ is classified as at the FVTOCI
if both of the following criteria are met:

a) Business Model Test : The objective of
financial instrument is achieved by both
collecting contractual cash flows and
selling the financial assets; and

b) Cash flow characteristics test: The

contractual terms of the Debt instrument
give rise on specific dates to cash flows
that are solely payments of principal and
interest on principal amount outstanding.

Debt instrument included within the FVTOCI
category are measured initially as well as
at each reporting date at fair value. Fair
value movements are recognized in the other
comprehensive income (OCI), except for the
recognition of interest income, impairment
gains or losses and foreign exchange gains
or losses which are recognized in statement
of profit and loss and computed in the same
manner as for financial assets measured
at amortised cost. The remaining fair
value changes are recognised in OCI. Upon
derecognition, the cumulative fair value
changes recognised in OCI is reclassified from
the equity to profit or loss.

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

Financial assets at fair value through profit
or loss are carried in the balance sheet at fair
value with net changes in fair value recognised
in the statement of profit and loss.

This category includes derivative instruments
and equity oriented mutual funds investments
which the Company had not irrevocably

elected to classify at fair value through OCI.

Financial assets designated at fair value
through OCI (equity instruments)

Upon initial recognition, the Company can elect
to classify irrevocably its equity investments
as equity instruments designated at fair value
through OCI when they meet the definition of
equity under Ind AS 32 Financial Instruments:
Presentation and are not held for trading. The
classification is determined on an instrument-
by-instrument basis. Equity instruments
which are held for trading and contingent
consideration recognised by an acquirer in
a business combination to which Ind AS103
applies are classified as at FVTPL.

Gains and losses on these financial assets are
never recycled to profit or loss. Dividends are
recognised as other income in the statement of
profit and loss when the right of payment has
been established, except when the Company
benefits from such proceeds as a recovery of
part of the cost of the financial asset, in which
case, such gains are recorded in OCI. Equity
instruments designated at fair value through
OCI are not subject to impairment assessment.

Derecognition

A financial asset (or ,where applicable, a part
of a financial asset or part of a group of similar
financial assets) is primarily derecognised (i.e.
removed from the Company’s statement of
financial position) when:

- The rights to receive cash flows from the
asset have expired, or

- The Company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received

- The Company has transferred its
rights to receive cash flows from the
asset or has assumed an obligation to
pay the received cash flows in full without
material delay to a third party under a
"pass through” arrangement and either;

(a) the Company has transferred
substantially all the risks and rewards of
the asset, or

(b) the Company has neither transferred nor

retained substantially all the risks and
rewards of the asset, but has transferred
control of the asset.

When the Company has transferred its rights

to receive cash flows from an asset or has
entered into a pass-through arrangement,
it evaluates if and to what extent it has
retained the risks and rewards of ownership.
When it has neither transferred nor retained
substantially all of the risks and rewards
of the asset, nor transferred control of the
asset, the Company continues to recognise
the transferred asset to the extent of the
Company’s continuing involvement. In that
case, the Company also recognises an
associated liability. The transferred asset
and the associated liability are measured on
a basis that reflects the rights and obligations
that the Company has retained.

Continuing involvement that takes the form
of a guarantee over the transferred asset is
measured at the lower of the original carrying
amount of the asset and the maximum amount
of consideration that the Company could be
required to repay.

Impairment of financial assets

In accordance with IND AS 109, the Company
applies expected credit losses( ECL) model for
measurement and recognition of impairment
loss on the following financial asset and credit
risk exposure

- Financial assets measured at amortized
cost;

- Financial assets measured at fair
value through other comprehensive
income(FVTOCI);

ECLs are based on the difference between the
contractual cash flows due in accordance with
the contract and all the cash flows that the
Company expects to receive, discounted at an
approximation of the original effective interest
rate. The expected cash flows will include cash
flows from the sale of collateral held or other
credit enhancements that are integral to the
contractual terms.

ECLs are recognised in two stages. For credit
exposures for which there has not been a
significant increase in credit risk since initial
recognition, ECLs are provided for credit
losses that result from default events that are
possible within the next 12-months (a 12-month
ECL). For those credit exposures for which
there has been a significant increase in credit
risk since initial recognition, a loss allowance
is required for credit losses expected over the
remaining life of the exposure, irrespective of

of profit and loss.

Financial liabilities designated upon initial
recognition at fair value through profit
or loss are designated as such at the
initial date of recognition, and only if the
criteria in Ind AS 109 are satisfied. For
liabilities designated as FVTPL, fair value
gains/ losses attributable to changes
in own credit risk are recognized in OCI.
These gains/ loss are not subsequently
transferred to profit and loss. However,
the Company may transfer the cumulative
gain or loss within equity. All other
changes in fair value of such liability are
recognized in the statement of profit or
loss. the Company has not designated any
financial liability as at fair value through
profit and loss.

Financial liabilities at amortised cost
(Loans and borrowings)

After initial recognition, interest-bearing
borrowings are subsequently measured
at amortized cost using the Effective
interest rate method. Gains and losses
are recognized in profit or loss when
the liabilities are derecognised as well
as through the Effective interest rate
amortization process.

Amortized cost is calculated by taking
into account any discount or premium on
acquisition and fees or costs that are an
integral part of the Effective interest rate.
The Effective interest rate amortization is
included as finance costs in the statement
of profit and loss.

Trade Payables

These amounts represents 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 within
30 to 120 days of recognition. Trade and
other payables are presented as current
liabilities unless payment is not due within
12 months after the reporting period.
They are recognized initially at fair value
and subsequently measured at amortized
cost using Effective interest rate method.

Financial guarantee contracts

Financial guarantee contracts issued
by the Company are those contracts

that require a payment to be made to
reimburse the holder for loss it incurs
because the specified debtor fails to make
a payment when due in accordance with
the terms of a debt instrument. Financial
guarantee contracts are recognized
initially as a liability at fair value, adjusted
for transaction costs that are directly
attributable to the issuance of the
guarantee.

Subsequently, the liability is measured
at the higher of the amount of loss
allowance determined as per impairment
requirements of Ind AS 109 and
the amount recognized less, when
appropriate, the cumulative amount of
income recognized in accordance with
the principles of Ind AS 115.

Derecognition

A financial liability is derecognised
when the obligation under the liability
is discharged or cancelled or expires.
When an existing financial liability is
replaced by another 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 derecognition of the original liability
and the recognition of a new liability.
The difference in the respective carrying
amounts is recognized in the statement of
profit and loss.

Offsetting of financial instruments

Financials 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 recognized amounts and there
is an intention to settle on a net basis, to
realize the assets and settle the liabilities
simultaneously.

Reclassification of financial assets/
financial liabilities

The Company determines classification
of financial assets and liabilities on initial
recognition. After initial recognition, no
reclassification is made for financial
assets which are equity instruments
and financial liabilities. For financial
assets which are debt instruments, a
reclassification is made only if there is a

the timing of the default (a lifetime ECL).

The Company follows "simplified approach” for
recognition of impairment loss allowance on:

- Trade receivables or contract revenue
receivables;

- All lease receivables resulting from the
transactions within the scope of Ind AS
116 -Leases

Under the simplified approach, the Company
does not track changes in credit risk. Rather ,
it recognizes impairment loss allowance based
on lifetime ECLs at each reporting date, right
from its initial recognition. The Company uses
a provision matrix to determine impairment
loss allowance on the portfolio of trade
receivables. The provision matrix is based on
its historically observed default rates over
the expected life of trade receivable and is
adjusted for forward looking estimates. At
every reporting date, the historical observed
default rates are updated and changes in the
forward looking estimates are analysed.

ECL impairment loss allowance (or reversal)
recognized during the period is recognized as
income/ expense in the statement of profit and
loss. This amount is reflected under the head
''other expenses’ in the statement of profit and
loss.

The balance sheet presentation for various
financial instruments is described below:

A) Financial assets measured as at
amortised cost: ECL is presented as
an allowance, i.e., as an integral part of
the measurement of those assets in the
balance sheet. The allowance reduces
the net carrying amount. Until the asset
meets write-off criteria, the company
does not reduce impairment allowance
from the gross carrying amount.

B) Loan commitments and financial

guarantee: ECL is presented as a
provision in the balance sheet, i.e. as a
liability.

C) Debt instruments measured at FVTOCI:

For debt instruments measured at
FVTOCI, the expected credit losses do
not reduce the carrying amount in the
balance sheet, which remains at fair
value. Instead, an amount equal to the
allowance that would arise if the asset

was measured at amortised cost is
recognised in other comprehensive
income as the accumulated impairment
amount

(ii) Financial liabilities:

Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings,
and payables, net of directly attributable
transaction costs.

All financial liabilities are recognised initially
at fair value and, in the case of loans and
borrowings and payables, net of directly
attributable transaction costs. The Company
financial liabilities include loans and
borrowings, trade payables, trade deposits,
financial guarantees, and other payables.

Subsequent measurement

For purposes of subsequent measurement,
financial liabilities are classified in two
categories:

(i) Financial liabilities at fair value through
profit or loss,

(ii) Financial liabilities at amortised cost
(loans and borrowings)

Financial liabilities at fair value through
profit or loss (FVTPL)

Financial liabilities at fair value through
profit or loss include financial liabilities
held for trading and financial liabilities
designated upon initial recognition as at
fair value through profit or loss.

Financial liabilities are classified as held
for trading if they are incurred for the
purpose of repurchasing in the near term.
This category also includes derivatives
financial instruments entered into by
the Company that are not designated
as hedging instruments in hedge
relationship as defined by Ind AS 109.
The separated embedded derivate are
also classified as held for trading unless
they are designated as effective hedging
instruments.

Gains or losses on liabilities held for
trading are recognized in the statement

change in the business model for managing
those assets. Changes to the business
model are expected to be infrequent.
The Company’s senior management
determines change in the business model
as a result of external or internal changes
which are significant to the Company’s
operations. Such changes are evident to
external parties. A change in the business
model occurs when the Company either
begins or ceases to perform an activity
that is significant to its operations. If the
Company reclassifies financial assets, it
applies the reclassification prospectively
from the reclassification date which is the
first day of the immediately next reporting
period following the change in business
model. The Company does not restate
any previously recognised gains, losses
(including impairment gains or losses) or
interest.

2.19 Cash and cash equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months
or less, that are readily convertible to a known
amount of cash and subject to an insignificant
risk of changes in value. For the purpose of the
standalone statement of cash flows, cash and
cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part
of the Company’s cash management.

2.20 Earnings 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
period. The weighted average number of equity
shares outstanding during the period is adjusted
for events such as bonus issue, bonus element in
a rights issue, share split, and reverse share split
(consolidation of shares) that have changed the
number of equity shares outstanding, without a
corresponding change in resources.

For the purpose of calculating diluted earnings
per share, the net profit or loss for the period
attributable to equity shareholders and the
weighted average number of shares outstanding
during the period are adjusted for the effect of all
potentially dilutive equity shares.

2.21 Segment reporting - Identification of Segments:

An operating segment is a component of the
Company that engages in business activities from
which it may earn revenues and incur expenses,
whose operating results are regularly reviewed
by the Company’s Chief Operating Decision Maker
(“CODM”) to make decisions for which discrete
financial information is available.

Based on the management approach as defined
in Ind AS 108, the CODM evaluates the Company’s
performance and allocates resources based on
an analysis of various performance indicators by
business segments and geographic segments.

2.22 Cash Flow Statement:

Cash flows are reported using the indirect method,
whereby the net profit before tax is adjusted for the
effects of transactions of a noncash nature, any
deferrals or accruals of past or future operating
cash receipts or payments and item of income or
expenses associated with investing or financing
cash flows. The cash flows from operating,
investing and financing activities of the Company
are segregated.

2.23 Significant accounting judgments, estimates and
assumptions

The preparation of the financial statements in
conformity with Ind AS requires management to
make judgments, estimates and assumptions that
affect the application of accounting policies and the
reported amounts of assets, liabilities, Revenue and
expenses. Uncertainty about these assumptions
and estimates could result in outcomes that
require a material adjustment to the carrying
amount of assets or liabilities affected in future
periods. Estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period
in which the estimates are revised and in any
future periods affected. In particular, information
about significant areas of estimation, uncertainty
and critical judgments in applying accounting
policies that have the most significant effect on the
amounts recognised in the financial statements are
included in the following notes:

i) Useful Lives of Property, Plant & Equipment:

The Company uses its technical expertise
along with historical and industrial trends
for determining the economic life of an asset.
The useful life is reviewed by the management
periodically and revised, if appropriate. In case
of a revision, the unamortised depreciable
amount is charged over the remaining useful
life of the asset.

ii) Defined Benefit Plans: The cost of the defined
benefit plans gratuity and the present value
of the gratuity obligation are based on
actuarial valuation using the projected unit
credit method. An actuarial valuation involves
making various assumptions that may differ
from actual developments in the future. These
include the determination of the discount
rate, future salary increases and mortality
rates. Due to the complexities involved in the
valuation and its long-term nature, a defined
benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are
reviewed at each reporting date.

iii) Fair Value Measurement of Financial
Instruments: When the fair values of financial
assets and financial liabilities recorded in
the balance sheet cannot be measured based
on quoted prices in active markets, their fair
value is measured using valuation techniques
including the Discounted Cash Flow model.
The inputs to these models are taken from
observable markets where possible, but where
this is not feasible, a degree of judgement
is required in establishing fair values.
Judgements include considerations of inputs
such as liquidity risk, credit risk and volatility.

iv) Expected Credit Losses on Financial Assets:
The impairment provisions of financial assets
are based on assumptions about risk of default
and expected timing of collection. The Company
uses judgment in making these assumptions
and selecting the inputs to the impairment
calculation, based on the Company’s past
history, customer’s creditworthiness, existing
market conditions as well as forward looking
estimates at the end of each reporting period.

v) Classification of Lease Ind AS 116: Ind AS

116 Leases requires a lessee to determine the
lease term as the non-cancellable period of
a lease adjusted with any option to extend or
terminate the lease, if the use of such option
is reasonably certain. The Company makes
an assessment on the expected lease term
on lease by lease basis and thereby assesses
whether it is reasonably certain that any
options to extend or terminate the contract
will be exercised. In evaluating the lease
term, the Company considers factors such
as any significant leasehold improvements
undertaken over the lease term, costs relating
to the termination of lease and the importance
of the underlying lease to the Company’s
operations taking into account the location
of the underlying asset and the availability of

the suitable alternatives. The lease term in
future periods is reassessed to ensure that
the lease term reflects the current economic
circumstances. The discount rate is generally
based on the incremental borrowing rate
specific to the lease being evaluated or for a
portfolio of leases with similar characteristics.

vi) Recognition and measurement of deferred
tax assets and liabilities: Deferred tax assets
and liabilities are recognised for deductible
temporary differences and unused tax losses
for which there is probability of utilisation
against the future taxable profit. The Company
uses judgement to determine the amount
of deferred tax liability / asset that can be
recognised, based upon the likely timing and
the level of future taxable profits and business
developments.

vii) Income Taxes: The Company calculates
income tax expense based on reported income
and estimated exemptions / deduction likely
available to the Company. The Company has
applied the lower income tax rates on income
tax expenses and the deferred tax assets /
liabilities.

viii) Share Based Payments: The Company
measures the cost of equity settled
transactions with employees using
BlackScholes model to determine the fair
value of the liability incurred on the grant date.
Estimating fair value for share-based payment
transactions requires determination of the
most appropriate valuation model, which
is dependent on the terms and conditions
of the grant. This estimate also requires
determination of the most appropriate inputs
to the valuation model including the expected
life of the share option, volatility and dividend
yield and making assumptions about them.

ix) Property, Plant and Equipment: Property,
Plant and Equipment represent significant
portion of the asset base of the Company
charge in respect of periodic depreciation
is derived after determining an estimate of
assets expected useful life and expected
value at the end of its useful life. The useful
life and residual value of Company’s assets
are determined by Management at the time
asset is acquired and reviewed periodically
including at the end of each year. The useful
life is based on historical experience with
similar assets, in anticipation of future events,
which may have impact on their life such as
change in technology.

for tne period enaea Marcn 31, 2U25

- Liquidity risk ; and

- Market risk

i. ) Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the
Company’s Risk Management framework. The Board of Directors have adopted an Enterprise Risk Management
Policy framed by the Company, which identifies the risk and lays down the risk minimization procedures. The
Management reviews the Risk management policies and systems on a regular basis to reflect changes in
market conditions and the Company’s activities, and the same is reported to the Board of Directors periodically.
Further, the Company, in order to deal with the future risks, has in place various methods / processes which
have been imbibed in its organizational structure and proper internal controls are in place to keep a check on
lapses, and the same are been modified in accordance with the regular requirements.

The Audit Committee oversees how Management monitors compliance with the Company’s Risk Management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks
faced by the Company. The Audit Committee is assisted in its oversight role by the internal auditors.

ii. ) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers
and loans and advances. The carrying amount of following financial assets represents the maximum credit
exposure:

Trade receivables and loans and advances. The Company’s exposure to credit risk is influenced mainly by
the individual characteristics of each customer in which it operates. Credit risk is managed through credit
approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which
the Company grants credit terms in the normal course of business. The Risk Management Committee has
established a credit policy under which each new customer is analysed individually for creditworthiness
before the Company’s standard payment and delivery terms and conditions are offered. Further for domestic
sales, the company segments the customers into Distributors and Others for credit monitoring. The Company
maintains security deposits for sales made to its distributors. For other trade receivables, the company
individually monitors the sanctioned credit limits as against the outstanding balances. Accordingly, the
Company makes specific provisions against such trade receivables wherever required and monitors the same
at periodic intervals. The Company monitors each loans and advances given and makes any specific provision
wherever required.

The Company measures the expected credit loss of trade receivables based on historical trend, industry
practices and the business environment in which the entity operates. The Company uses a provision matrix
to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account
available external and internal credit risk factors such as credit ratings from credit rating agencies, financial
condition, ageing of accounts receivable and the Company’s historical experience for customers. The Company
establishes an allowance for impairment that represents its estimate of expected losses in respect of trade
receivables and loans and advances.

Break-up of ageing schedule:-

Luans aim uiner nnanciai assets;

The Company held loans and other financial assets as on March 31, 2025 is of W 392.10 lacs (Previous year
W 214.39 lakhs). The loans and other financial assets are in nature of Loan to others, Security deposits with
maturity more than twelve months and others and are fully recoverable.

Cash and cash equivalents and other Bank balances

The Company held cash and cash equivalents and other bank balances as on 31 March 2025 is of W 6,857.36
lacs (Previous year W 3,944.90 lacs). The cash and cash equivalents are held with bank with good credit ratings
and financial institution counterparties with good market standing.

iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk is managed
by Company through effective fund management of the Company’s short, medium and long-term funding and
liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves,
banking facilities and other borrowing facilities, by continuously monitoring forecast and actual cash flows,
and by matching the maturity profiles of financial assets and liabilities.

Maturity profile of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The
amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of
netting agreements.

g) The statements in respect of the working capital limits filed by the Company with such banks or financial
institutions are in agreement with the books of accounts of the Company for the respective periods.

h) The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or
on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(I) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
Note 48 : Audit Trail

The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule 3(1)
of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring
companies, which uses accounting software for maintaining its books of account, shall use only such accounting
software which has a feature of recording audit trail of each and every transaction, creating an edit log of each
change made in the books of account along with the date when such changes were made and ensuring that the
audit trail cannot be disabled.

The Company has used accounting software for maintaining its books of account which has a feature of audit trail
(edit log) facility and the same was enabled at the application level. During the year ended March 31, 2025, the
Company has not enabled the feature of recording audit trail (edit log) at the database level for the said accounting
software to log any direct data changes on account of recommendation in the accounting software administration
guide which states that enabling the same all the time consume storage space on the disk and can impact database
performance significantly.

Note 49 : Others

Previous year figures have been regrouped and reclassified where necessary to conform to this year’s classification.
The management believes that the reclassification does not have any material impact on information presented in
Profit and Loss Account and information presented in the balance sheet at the beginning of the preceding period
i.e April 01, 2023. Accordingly, the Company has not presented opening balance sheet as at April 01, 2023.

For Chaturvedi Sohan & Co For and on behalf of the Board

Chartered Accountants

Firm Registration No : 118424W

Vivekanand Chaturvedi Aditya Kumar Halwasiya

Partner Chairman & Managing Director

Membership No. 106403 DIN No. : 08200117

UDIN 25106403BMIDML2980 Place : Mumbai

Place: Mumbai Narendra M. Joshi Saurabh V. Karmase

Date : 21^st May, 2025 Chief Financial Officer Company Secretary

Place : Nashik Place : Nashik

---

Mar 31, 2024

Provision

A provision is recognized when the Company has a present obligation (legal or constructive) as a result of 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. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. If the effect of the time value of money is material, provisions are discounted using a current pretax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases, where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements unless the probability of outflow of resources is remote.

Provisions and contingent liabilities are reviewed at each balance sheet date.

2.16 Retirement and other employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within twelve months after the end of the period in which the employees render the related service are recognized in respect of employee service up to the end of the reporting period and are measured at the amount expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

(ii) Other long-term employee benefit obligations

a) Gratuity

The Company has a defined benefit plan (the "Gratuity Plan"). The Gratuity Plan provides a lump sum payment to employees who have completed four years and two hundred and forty days or more of service at retirement, disability or termination of employment,

being an amount based on the respective employee''s last drawn salary and the number of years of employment with the Company. The Gratuity Plan, which is defined benefit plan, is managed by Cupid Limited Employees Group Gratuity Assurance Scheme ("the trust") with its investments maintained with Life insurance Corporation of India. The liabilities with respect to Gratuity Plan are determined by actuarial valuation on projected unit credit method on the balance sheet date, based upon which the Company contributes to the Gratuity Scheme. The difference, if any, between the actuarial valuation of the gratuity of employees at the year end and the balance of funds is provided for as assets/ (liability) in the books. Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company recognizes the following changes in the net defined benefit obligation under Employee benefit expense in statement of profit or loss:

a) Service costs comprising current

service costs, past-service costs, gains and losses on curtailments and non routine settlements

b) Net interest expense or income

remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognized immediately in the Balance Sheet with a corresponding debit or credit to retained earnings through other comprehensive income in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods.

b) Provident fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes contribution payable through provident fund scheme as an expense, when an employee renders the related services. If the contribution payable to scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as liability after deducting the contribution

already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excesses recognized as an asset to the extent that the prepayment will lead to, for example, a reduction in future payment or a cash refund.

(iii) Share Based payments

Employees (including senior executives) of the Company receive remuneration in the form of share-based payments, whereby employees render services as consideration for equity instruments (equity-settled transactions). The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model.

That cost is recognised, together with a corresponding increase in share-based payment (SBP) reserves in equity, over the year in which the performance and/or service conditions are fulfilled in employee benefits expense. The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting year has expired and the Company''s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the standalone statement of profit and loss for a year represents the movement in cumulative expense recognised as at the beginning and end of that year and is recognised in employee benefits expense.

2.17 Financial Instruments

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

(i) Financial Assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset''s contractual cash flow characteristics and the Company''s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a

financial asset not at fair value through profit or loss, transaction costs.

Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient and are measured at the transaction price determined under Ind AS 115. Refer to the accounting policies in section ''Revenue from contracts with customers''.

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ''solely payments of principal and interest (SPPI)'' on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model.

The Company''s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortised cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows while financial assets classified and measured at fair value through profit or loss are held within a business model for near term selling.

Subsequent measurement

For purposes of subsequent measurement financial assets are classified in following categories:

- Financial assets at amortised cost (debt instruments),

- Financial assets at fair value through other comprehensive income (FVTOCI) with recycling of cumulative gains and losses (debt instruments)

- Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments)

- Financial assets at fair value through profit or loss Financial assets at amortised cost (debt instruments)

A ''financial asset'' is measured at the amortised cost if both the following conditions are met:

a) Business Model Test : The objective is to hold the financial asset to collect the contractual cash flows (rather than to sell the instrument prior to its contractual maturity to realize its fair value changes) and;

b) Cash flow characteristics test: The contractual terms of the financial asset give rise on specific dates to cash flows that are solely payments of principal and interest on principal amount outstanding.

This category is most relevant to the Company. After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of EIR. EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit losses. The EIR amortization is included in other income in profit or loss. The losses arising from impairment are recognized in the profit or loss. This category generally applies to trade and other receivables.

Financial assets at fair value through OCI (FVTOCI) (debt instruments)

A ''financial asset'' is classified as at the FVTOCI if both of the following criteria are met:

a) Business Model Test : The objective of financial instrument is achieved by both collecting contractual cash flows and selling the financial assets; and

b) Cash flow characteristics test: The contractual terms of the Debt instrument give rise on specific dates to cash flows that are solely payments of principal and interest on principal amount outstanding.

Debt instrument included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI), except for the recognition of interest income, impairment gains or losses and foreign exchange

gains or losses which are recognized in statement of profit and loss and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value changes recognised in OCI is reclassified from the equity to profit or loss.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes in fair value recognised in the statement of profit and loss. This category includes derivative instruments and listed equity investments which the Company had not irrevocably elected to classify at fair value through OCI. Dividends on listed equity investments are recognised in the statement of profit and loss when the right of payment has been established.

Financial assets designated at fair value through OCI (equity instruments)

Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under Ind AS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the statement of profit and loss when the right of payment has been established, except when the Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.

Derecognition

A financial asset (or ,where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Company''s statement of financial position) when:

- The rights to receive cash flows from the asset have expired, or

- The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received

- The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a "pass through" arrangement and either;

(a) the Company has transferred substantially all the risks and rewards of the asset, or

(b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes in fair value recognised in the statement of profit and loss. This category includes derivative instruments and listed equity investments which the Company had not irrevocably elected to classify at fair value through OCI. Dividends on listed equity investments are recognised in the statement of profit and loss when the right of payment has been established.

Financial assets designated at fair value through OCI (equity instruments)

Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under Ind AS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS103 applies are classified as at FVTPL.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the statement of profit and loss when the right of payment has been established, except when the Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.

Derecognition

A financial asset (or ,where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Company''s statement of financial position) when:

- The rights to receive cash flows from the asset have expired, or

- The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a "pass through" arrangement and either;

a) the Company has transferred substantially all the risks and rewards of the asset, or

b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Impairment of financial assets

In accordance with IND AS 109, the Company applies expected credit losses( ECL) model for measurement and recognition of impairment loss on the following financial asset and credit risk exposure

- Financial assets measured at amortized cost;

- Financial assets measured at fair value through other comprehensive income(FVTOCI);

ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which

there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

The Company follows "simplified approach" for recognition of impairment loss allowance on:

- Trade receivables or contract revenue receivables;

- All lease receivables resulting from the transactions within the scope of Ind AS 116 -Leases

Under the simplified approach, the Company does not track changes in credit risk. Rather , it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically observed default rates over the expected life of trade receivable and is adjusted for forward looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward looking estimates are analysed. The balance sheet presentation for various financial instruments is described below:

A) Financial assets measured as at amortised cost: ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the company does not reduce impairment allowance from the gross carrying amount.

B) Loan commitments and financial guarantee:

ECL is presented as a provision in the balance sheet, i.e. as a liability.

C) Debt instruments measured at FVTOCI: For

debt instruments measured at FVTOCI, the expected credit losses do not reduce the carrying amount in the balance sheet, which remains at fair value. Instead, an amount equal to the allowance that would arise if the asset was measured at amortised cost is recognised in other comprehensive income as the accumulated impairment amount

(ii) Financial liabilities:

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, and payables, net of directly attributable transaction costs.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company financial liabilities include loans and borrowings, trade payables, trade deposits, financial guarantees, and other payables.

Subsequent measurement

For purposes of subsequent measurement, financial liabilities are classified in two categories:

(i) Financial liabilities at fair value through profit or loss,

(ii) Financial liabilities at amortised cost (loans and borrowings)

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivatives financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationship as defined by Ind AS 109. The separated embedded derivate are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognized in the statement of profit and loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to profit and loss. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognized in the statement of profit or loss. the Company has not designated any financial liability as at fair value through profit and loss.

Financial liabilities at amortised cost (Loans and borrowings)

After initial recognition, interest-bearing borrowings are subsequently measured at amortized cost using the Effective interest rate method. Gains and losses are recognized in profit or loss when the liabilities are derecognised as well as through the Effective interest rate amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the Effective interest rate. The Effective interest rate amortization is included as finance costs in the statement of profit and loss.

Trade Payables

These amounts represents 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 within 30 to 120 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at fair value and subsequently measured at amortized cost using Effective interest rate method.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognized initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee.

Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognized less, when appropriate, the cumulative amount of income recognized in accordance with the principles of Ind AS 115.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another 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 derecognition of the original liability and the

recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit and loss.

Offsetting of financial instruments

Financials 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 recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

Reclassification of financial assets/ financial liabilities

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company''s senior management determines change in the business model as a result of external or internal changes which are significant to the Company''s operations. Such changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognised gains, losses (including impairment gains or losses) or interest.

2.18 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of changes in value. For the purpose of the standalone statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

2.19 Earnings 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 period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effect of all potentially dilutive equity shares.

2.20 Segment reporting - Identification of Segments:

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the Company''s Chief Operating Decision Maker ("CODM") to make decisions for which discrete financial information is available.

Based on the management approach as defined in Ind AS 108, the CODM evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments.

2.21 Cash Flow Statement:

Cash flows are reported using the indirect method, whereby the net profit before tax is adjusted for the effects of transactions of a noncash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

2.22 Significant accounting judgments, estimates and assumptions

The preparation of the financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, Revenue and expenses. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements are included in the following notes:

i) Useful Lives of Property, Plant & Equipment: The

Company uses its technical expertise along with historical and industrial trends for determining the economic life of an asset. The useful life is reviewed by the management periodically and revised, if appropriate. In case of a revision, the unamortised depreciable amount is charged over the remaining useful life of the asset.

ii) Defined Benefit Plans: The cost of the defined benefit plans gratuity and the present value of the gratuity obligation are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

iii) Fair Value Measurement of Financial Instruments:

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.

iv) Expected Credit Losses on Financial Assets: The

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

v) Classification of Lease Ind AS 116: Ind AS 116

Leases requires a lessee to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on lease by lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant

leasehold improvements undertaken over the lease term, costs relating to the termination of lease and the importance of the underlying lease to the Company''s operations taking into account the location of the underlying asset and the availability of the suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

vi) Recognition and measurement of deferred tax assets and liabilities: Deferred tax assets and liabilities are recognised for deductible temporary differences and unused tax losses for which there is probability of utilisation against the future taxable profit. The Company uses judgement to determine the amount of deferred tax liability / asset that can be recognised, based upon the likely timing and the level of future taxable profits and business developments.

vii) Income Taxes: The Company calculates income tax expense based on reported income and estimated exemptions / deduction likely available to the Company. The Company has applied the lower income tax rates on income tax expenses and the deferred tax assets / liabilities.

viii) Share Based Payments: The Company measures the cost of equity settled transactions with employees using BlackScholes model to determine the fair value of the liability incurred on the grant date. Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them.

ix) Property, Plant and Equipment: Property, Plant and Equipment represent significant portion of the asset base of the Company charge in respect of periodic depreciation is derived after determining an estimate of assets expected useful life and expected value at the end of its useful life. The useful life and residual value of Company''s assets are determined by Management at the time asset is acquired and reviewed periodically including at the end of each year. The useful life is based on historical experience with similar assets, in anticipation of future events, which may have impact on their life such as change in technology.

Note 34 : Segment Reporting

(i) Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director Officer of the Company. The company''s business operation comprises of operating segments viz., Male and Female contraceptives, other relevant products and In Vitro Devices (IVD).

Note 37 : Financial instruments - Fair values and risk management

A. Accounting classification and fair values

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

C. Financials Risk Management

Financial risk management The Company has exposure to the following risks arising from financial instruments:

- Credit risk

- Liquidity risk ; and

- Market risk

i. ) Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s Risk Management framework. The Board of Directors have adopted an Enterprise Risk Management Policy framed by the Company, which identifies the risk and lays down the risk minimization procedures. The Management reviews the Risk management policies and systems on a regular basis to reflect changes in market conditions and the Company''s activities, and the same is reported to the Board of Directors periodically. Further, the Company, in order to deal with the future risks, has in place various methods / processes which have been imbibed in its organizational structure and proper internal controls are in place to keep a check on lapses, and the same are been modified in accordance with the regular requirements.

The Audit Committee oversees how Management monitors compliance with the Company''s Risk Management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its oversight role by the internal auditors.

ii. ) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and loans and advances. The carrying amount of following financial assets represents the maximum credit exposure:

Trade receivables and loans and advances. The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer in which it operates. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Risk Management Committee has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. Further for domestic sales, the company segments the customers into Distributors and Others for credit monitoring. The Company maintains security deposits for sales made to its distributors. For other trade receivables, the company individually monitors the sanctioned credit limits as against the outstanding balances. Accordingly, the Company makes specific provisions against such trade receivables wherever required and monitors the same at periodic intervals. The Company monitors each loans and advances given and makes any specific provision wherever required.

The Company establishes an allowance for impairment that represents its estimate of expected losses in respect of trade receivables and loans and advances.

Cash and cash equivalents and other Bank balances

The Company held cash and cash equivalents and other bank balances of H 5,149.59 lakhs as on 31 March 2024 (Previous year H 2961.62 lakhs). The cash and cash equivalents are held with bank counterparties with good credit ratings.

Loans and Other financial assets:

The Company held loans and other financial assets of H 221.82 lakhs as on March 31,2024 (Previous year H 168.99 lakhs). The loans and other financial assets are in nature of Loan to others, Security deposits with maturity more than twelve months and others and are fully recoverable.

iii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity

Note 37 : Financial instruments - Fair values and risk management (Contd.)

is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Maturity profile of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

31st March, 2024

iv) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of our investments. Thus, our exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.

(v) Currency risk

The Company is exposed to currency risk on account of its borrowings and other payables in foreign currency. The functional currency of the Company is Indian Rupee. The Company uses forward exchange contracts to hedge its currency risk, most with a maturity of less than one year from the reporting date. Exposure to currency risk (Exposure in different currencies converted to functional currency i.e. INR)

Note 38 : Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The Company strives to safeguard its ability to continue as a going concern so that they can maximise returns for the shareholders and benefits for other stake holders. The aim to maintain an optimal capital structure and minimise cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may return capital to shareholders, issue new shares or adjust the dividend payment to shareholders (if permitted). Consistent with others in the industry, the Company monitors its capital using the gearing ratio which is total debt divided by total capital plus total debt.

Note 41 : Regulatory Disclosures

a) The Company has not been declared as wilful defaulter by any bank or financial institution or any other lender

b) The Company does not have any charges, which is yet to be registered with Registrar of Companies, beyond the statutory period prescribed under the Companies Act, 2013 and the rules made thereunder. The Company has charge which is yet to be satisfied with the Registrar of Companies beyond the statutory period prescribed under Companies Act, 2013, the Company has taken no due certificate from the bank and process of satisfaction of charges with ROC is under process.

c) The Company has not entered into any transaction which has not been recorded in the books of account, that has been

surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

d) The Company has not traded or invested in crypto currency or virtual currency during the year.

e) The Company does not have any Benami property and further, no proceedings have been initiated or are pending against

the Company, in this regard.

f) The Company has not entered into any transactions with struck off companies, as defined under the Companies Act, 2013 and rules made thereunder.

g) The statements in respect of the working capital limits filed by the Company with such banks or financial institutions are in agreement with the books of accounts of the Company for the respective periods.

Note 41 : Regulatory Disclosures (Contd.)

h) The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(i) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

Note 41 : Additional Disclosures

i) There were some communications between Mr. Garg and Vikas Lifecare Limited with regard to sale and purchase of shares of Cupid Limited in May, 2022. However, both the parties were not arrived at any enforceable legal agreement and Vikas Lifecare Limited made Cupid Limited as party to the legal suit along with other various parties. The Magistrate court has passed the order and the respondents have been in the process to file appeal against the Alwar District Court order.

In this regard, company is taking an appropriate legal action before the judiciary.

The accompanying notes form an integral part of the financial statements As per our report of even date attached

Chaturvedi Sohan & Co For and on behalf of the Board

Chartered Accountants

Firm Registration No : 118424W

Vivekanand Chaturvedi Mr. Kuldeep Halwasiya Mr. Aditya Kumar Halwasiya

Partner Chairman Managing Director

Membership No. 106403 DIN No. : 00284972 DIN No. : 08200117

Place : Mumbai Place : Kolkata

Narendra M. Joshi Saurabh V. Karmase

Place: Mumbai Chief Financial Officer Company Secretary

Date : 8th April, 2024 Place : Nashik Place : Mumbai

---

Mar 31, 2023

Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of 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 consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation.

Provisions are not discounted to present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted
to reflect the current best estimates.

xxiii) Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the
Company or a present obligation that is not recognized because it is not probable that an outflow of
resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognized because it cannot be measured reliably. The Company
does not recognize a contingent liability but discloses its existence in the condensed standalone financial
statements.

xxiv) Earnings per Share

The basic earnings per share is computed by dividing the net profit attributable to equity shareholders for
the period by the weighted average number of equity shares outstanding during the period.

The number of shares used in computing diluted earnings per share comprises the weighted average
shares considered for deriving basic earnings per share, and also the weighted average number of equity
shares which could be issued on the conversion of all dilutive potential equity shares

xxv) Classification of Assets and Liabilities as Current and Non-Current:

All assets and liabilities are classified as current or non-current as per the Corporation’s normal operating
cycle (determined at 12 months) and other criteria set out in Schedule III of the Act

xxvi) Cash Flows

Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects
of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and item of income or expenses associated with investing or financing cash flows. The cash
flows from operating, investing and financing activities are segregated.

xxvii) Operating Segments

Operating segments are reported in a manner consistent with the internal reporting provided to Chief
Operating Decision Maker (CODM).

The Company has identified its Managing Director as CODM which assesses the operational performance
and position of the Company and makes strategic decisions.

---

Mar 31, 2018

I. Company Overview

Cupid Limited (‘the Company’) is a public company domiciled and incorporated in name of Cupid Rubber Limited in the state of Maharashtra on 17th February, 1993. The name was subsequently changed to Cupid Condom Limited with effect from 8th December, 2003 and further change to Cupid Limited with effect from 2nd January, 2006 as per permission affirmation by Central Government. The Company received the Certificate of Commencement of Business on 20th February, 1993.

The main object of Company on incorporation was to carry on business of dealing, marketing and manufacture of rubber contraceptives and allied prophylactic products. Later on main object of Company have been appended with obligatory permissions to entered into Diamonds, Gold, Silver and other allied precious products international or domestic trading/ manufacturing/connected business segments.

a) Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share.

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature and Purpose of Reserves Securities Premium Reserve

Securities Premium Reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

Capital Reserve

Capital reserve will be utilised in accordance with provision of the Act.

Retained Earnings

Retained Earnings represents surplus/accumulated earnings of the Company and are available for distribution to shareholders.

Notes on Borrowing

a. Rate of interest on working capital loans are 6 months MCLR rate ( as per last MCLR is 8.35 % p.a.). The same is secured against the lien of Mutual funds.

The Company had sought cofirmation from the vendors whether they fall in the category of Micro, Small and Medium Enterprises. In view of insufficient information from suppliers regarding their status the amount due to Micro, Small and Medium Enterprises can not be ascertained.

Note 1 : Segment Reporting

(i) Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (“CODM”) of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director Officer of the Company. The Company operates only in one Business Segment i.e. “Manufacturing of Contraceptives”, hence does not have any reportable Segments as per Ind AS 108 “Operating Segments”. (ii) The amount of the company’s revenue from external customers (Outside India) broken down by each product and service is as shown in the table below :-

Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan (“The Gratuity Plan”) covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date and the Company makes annual contribution to the gratuity fund administered by life Insurance Companies under their respective Group Gratuity Schemes.

The disclosure in respect of the defined Gratuity Plan are given below:

Assumptions

With the objective of presenting the plan assets and plan liabilities of the defined benefits plans at their fair value on the balance sheet, assumptions under Ind AS 19 are set by reference to market conditions at the valuation date.

Demographic Assumptions

Mortality in service : Indian Assured Lives Mortality (2006-08)

Sensitivity

The sensitivity of the overall plan liabilities to changes in the weighted key assumptions are:

The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption,the same method used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

Note 2 : Financial instruments - Fair values and risk management

A. Accounting classification and fair values

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

B. Measurement of fair values

Valuation techniques and significant unobservable inputs

The Fair Value of the Financial Assets & Liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties,other than in a forced or liquidation sale.

The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, for financial instruments measured at fair value in the statement of financial position, as well as the significant unobservable inputs used.

Market risk

Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

Currency risk

The Company is exposed to currency risk on account of its operating and financing activities. The functional currency of the Company is Indian Rupee. Our exposure are mainly denominated in U.S. dollars. The USD exchange rate has changed substantially in recent periods and may continue to fluctuate substantially in the future. The Company’s business model incorporates assumptions on currency risks and ensures any exposure is covered through the normal business operations. This intent has been achieved in all years presented. The Company has put in place a Financial Risk Management Policy to Identify the most effective and efficient ways of managing the currency risks.

Sensitivity analysis

A reasonably possible strengthening / (weakening) of the Indian Rupee against US dollars at 31st March would have affected the measurement of financial instruments denominated in US dollars and affected profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. In cases where the related foreign exchange fluctuation is capitalised to fixed assets or recognised direclty in reserves, the impact indicated below may affect the Company’s income statement over the remaining life of the related fixed assets or the remaining tenure of the borrowing respectively.

Financial Risk Management

Risk management framework

A wide range of risks may affect the Company’s business and operational / financial performance. The risks that could have significant influence on the Company are market risk, credit risk and liquidity risk. The Company’s Board of Directors reviews and sets out policies for managing these risks and monitors suitable actions taken by management to minimise potential adverse effects of such risks on the company’s operational and financial performance.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s trade and other receivables, cash and cash equivalents and other bank balances. To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic trends and analysis of historical bad debts and ageing of accounts receivable. The maximum exposure to credit risk in case of all the financial instuments covered below is resticted to their respective carrying amount.

(a) Trade receivables

The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings with the Company for extension of credit to customers. The Company monitors the payment track record of the customers. Outstanding customer receivables are regularly monitored. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets. The history of trade receivables shows a negligible provision for bad and doubtful debts.Therefore, the Company does not expect any material risk on account of non performance by any of the counterparties.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk through the impact of rate changes on interest-bearing liabilities and assets. The Company manages its interest rate risk by monitoring the movements in the market interest rates closely.

Exposure to interest rate risk

Company’s interest rate risk arises primarily from borrowings. The interest rate profile of the Company’s interest-bearing financial instruments is as follows.

Cash flow sensitivity analysis for variable-rate instruments

The sensitivity analysis below have been determined based on the exposure to interest rates for financial instruments at the end of the reporting year and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in the case of instruments that have floating rates. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates :

The Company invests its surplus funds in various Equity and debt instruments . These comprise of mainly liquid schemes of mutual funds (liquid investments), Equity shares, Debentures and fixed deposits. This investments are susceptible to market price risk, mainly arising from changes in the interest rates or market yields which may impact the return and value of such investments. However due to the very short tenor of the underlying portfolio in the liquid schemes, these do not pose any significant price risk.

Liquidity risk

Liquidity is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company’s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company’s net liquidity position through rolling forecasts on the basis of expected cash flows.

The table below provides details regarding the contractual maturities of significant financial liabilities :

Note 3 : Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The Company strives to safeguard its ability to continue as a going concern so that they can maximise returns for the shareholders and benefits for other stake holders. The aim to maintain an optimal capital structure and minimise cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may return capital to shareholders, issue new shares or adjust the dividend payment to shareholders (if permitted). Consistent with others in the industry, the Company monitors its capital using the gearing ratio which is total debt divided by total capital plus total debt.

Note 4 : Transition to Ind AS :

These are the Company’s first financial statements prepared in accordance with Ind AS. The Company has adopted all the Ind AS and the adoption was carried out in accordance with Ind AS 101 First time adoption of Indian Accounting Standards. The transition was carried out from Generally Accepted Accounting Principles in India (Indian GAAP) as prescribed under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, which was the “Previous GAAP”.

The Significant Accounting Policies set out in Note No.1 have been applied in preparing the financial statements for the year ended March 31, 2018, March 31, 2017 and the opening Ind As Balance sheet on the date of transition i.e. April 1, 2016.

In preparing its Ind AS Balance sheet as at April 1, 2016 and in presenting the comparative information for the year ended March 31, 2017, the Company has adjusted amounts previously reported in the financial statements prepared in accordance Previous GAAP. This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with Previous GAAP, and how the transition from Previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows.

I) Explanation of transition to Ind AS

In preparing the financial statement, the Company has applied the below mentioned optional exemptions and mandatory exceptions.

Property, Plant and Equipment and Intangible Assets exemption:

The Company has elected to use the exemption available under Ind AS 101 to continue the carrying value for all of its property, plant and equipment and intangible assets as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition (April 1, 2016).

Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.

VII) Notes to reconciliations

Note 1: Proposed Dividend

Under the previous GAAP, proposed dividend including corporate dividend tax (CDT), are recognised as liability in the period to which they relate, irrespective of when they are declared. Under Ind AS, proposed dividend is recognised as liability in the period in which it is declared by the Company, usually when approved by the shareholders in a general meeting, or paid. Proposed Dividend, including corporate dividend (CDT) tax liability as on 31st March, 2017 amounting to Rs. 267.56 Lacs was derecognised on the transition date with corresponding increase in retained earning.The same has been recognised in retained earnings during the year ended March 31, 2018 as declared and paid.

Note 2: Remeasurements of defined benefit liabilities

Under Ind AS, actuarial gains and losses are recognised in the OCI as compared to being recognised in the Statement of Profit and Loss under the previous GAAP.

Note 3 : Deferred taxes

Deferred tax have been recognised on the adjustments made on transition to Ind AS as specified above.

Note 4 : Other comprehensive income

Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, Indian GAAP statement of profit and loss is reconciled with statement of profit and loss as per Ind AS.

The accompanying notes are an integral part of these financial statements

---

Mar 31, 2016

NOTE NO : 1

DEFERRED TAX LIABILITY (Net)

The Company has provided for Deferred Tax in accordance with the Accounting Standard on “Accounting for Taxes on Income” (AS 22) issued by the Institute of Chartered Accountants of India.

Notes on BORROWING

a. Working Capital Assistance Loan from banks is secured by hypothecation of stock of raw materials, WIP and finished goods and book debts.

b. Additionally above loan have been personally guranted by Mr. Omprakash Garg, Chairman and Mr. Durgesh Garg.

c. Maturity period with respect to Cash Credit is renewable every year.

d. Rate of interest is KMBR plus 1.50. As on 31st March 2016 KMBR is 9.50% .

e. Credit facilities are further secured by mortgage land & building and lien marking on Company''s Fixed Deposit of INR 250 Lakhs.

NOTE NO : 2 OTHER NOTES FOR FINANCIAL STATEMENTS

Other Notes to the Balance Sheet : -

1. Company has no contingent liabilities as on 31^st March 2016, except wherein bank guarantees (Performance security / bond) issued by Company Bankers'' amounting to Rs. 57.18 Lacs. ( Previous year Rs.21.60 Lacs ) as per terms of sales contract with Company Customers'' at company request, Any claims / demand against said bank guarantees henceforth shall be payable by Company.

2. During the year Company has made out of court settlement in respect of Trademark dispute, which were pending at different Courts in India. The said Legal cases were filled by the Company and counter cases were also cases filled by the litigant. Withdrawal of cases from court are in process.

3. In view of the insufficient information from the suppliers regarding their status as SSI units, the amounts due to Small Scale Industrial undertaking cannot be ascertained.

4. Capital and Other Commitments: - Company had paid advance towards to purchase of plant & machinery and services the Company estimated cost still payable for conclusion of the ventures are Rs. 60 Lacs.

5. All of the assets other than fixed assets and non-current investments, have been are carried at cost of acquisition.

6. There was no impairment loss on Fixed Assets on the basis of review carried out but the Management in accordance with Accounting Standard 28 issued by the Institute of Chartered Accountants of India.

Other Notes to the Statement of Profit and Loss

1. Traveling expenses includes Rs. 40.88 Lacs ( previous year Rs. 32.60 Lacs ) spent on Foreign Travel.

2. Earnings & Outflow in foreign currency ( on accrual basis ) : -

2. Previous years'' figure have been regrouped and reclassified wherever necessary, to conform to current years'' classification.

---

Mar 31, 2015

1. General Information

Cupid Limited ('the Company') is a public company domiciled and incorporated in name of Cupid Rubber Limited in the state of Maharashtra on 17th February, 1993. The name was subsequently changed to Cupid Condom Limited with effect from 8th December, 2003 and further change to Cupid Limited with effect from 2nd January, 2006 as per permission affirmation by Central Government. The Company received the Certificate of Commencement of Business on 20th February, 1993.

The main object of Company on incorporation was to carry on business of dealing, marketing and manufacture of rubber contraceptives and allied prophylactic products. Later on main object of Company have been appended with obligatory permissions to entered into Diamonds, Gold, Silver and other allied precious products international or domestic trading/manufacturing/connected business segments.

2. DEFERRED TAX LIABILITY (Net)

The Company has provided for Deferred Tax in accordance with the Accounting Standard on "Accounting for Taxes on Income" (AS 22) issued by the Institute of Chartered Accountants of India.

Notes on BORROWING

a. Working Capital Assistance Loan from banks is secured by hypothecation of stock of raw materials, WIP and finished goods and book debts.

b. Additionally above loan have been personally guranted by Mr. Omprakash Garg, Chairman and Mr. Durgesh Garg.

c. Maurity period with respect to Cash Credit is renewable every year.

d. Rate of interest on cash credit is IVRR plus 2.55. As on 31st March 2015 IVRR is 10.80% .

e. Rate of interest on foreign currency working capital Loan for pre and post Shipment is IVBR plus 2.30

3. OTHER NOTES FOR FINANCIAL STATEMENTS

A. Other Notes to the Balance Sheet

1. Company has no contingent liabilities as on 31st March, 2015.

a. Except for cases wherein bank guarantees issued for the Performance of Export Orders against which the Company has given counter guarantees Rs. 21.60 lacs previous Rs. 7.22 lacs.

b. The company has executed a surety Bond for Rs. 118.38 lacs in favour of the Jt. D. G. F. T., which is yet to be discharged in respect of EPCG License granted to company for fulfillment of export obligation.

c. Further, Legal cases has been filled against Company on accounts of trade mark dispute and the Company has also filled cases against the litigant ,which are pending at different stages in various courts in India .financial impact if any, payable by the Company is unascertainable at this stage.

B. In view of the insufficient information from the suppliers regarding their status as SSI units, the amounts due to Small Scale Industrial undertaking cannot be ascertained.

C. All of the assets other than fixed assets and non-current investments, have been are carried at cost of acquisition.

D. There was no impairment loss on Fixed Assets on the basis of review carried out but the Management in accordance with Accounting Standard 28 issued by the Institute of Chartered Accountants of India.

E. Other Notes to the Statement of Profit and Loss

1. Traveling expenses includes Rs. 32.60 Lacs ( previous year Rs. 12.37 Lacs ) spent on Foreign Travel.

2. Earnings & Outflow in foreign currency ( on accrual basis ) : -

F. Other Notes to the Financial Statements

1. Related Party Disclosure for the year ended (AS - 18)

i) Key Personnel & Relatives

a) Mr. Omprakash Garg : Chairman

b) Mr. Durgesh Garg : Brother's son of Mr. Omprakash Garg

c) Mr. Pawan Bansal : Sister's son of Mr. Omprakash Garg

---

Mar 31, 2014

1. General Information

Cupid Limited (''the Company'') is a public company domiciled and incorporated in name of Cupid Rubber Limited in the state of Maharashtra on 17th February, 1993. The name was subsequently changed to Cupid Condom Limited with effect from 8th December, 2003 and further change to Cupid Limited with effect from 2nd January, 2006 as per permission affirmation by Central Government. The Company received the Certificate of Commencement of Business on 20th February, 1993.

The main object of Company on incorporation was to carry on business of dealing, marketing and manufacture of rubber contraceptives and allied prophylactic products. Later on main object of Company have been appended with obligatory permissions to entered into Diamonds, Gold, Silver and other allied precious products international or domestic trading / manufacturing / connected business segments.

2. a) Working Capital Assistance Loan from banks is secured by hypothecation of stock of raw materials, WIP and finished goods and book debts.

b) Additionally above loan have been personally guranted by Mr. Omprakash Garg, Chairman and Mr. Durgesh Garg.

c) Maurity period with respect to Cash Credit is renewable every year.

d) Rate of interest on cash credit is IVRR plus 2.55. As on 31st March, 2014, IVRR is 10.80%.

e) Rate of interest on foreign currency working capital Loan for pre and post Shipment is IVBR plus 2.30

NOTE NO. 3

A. Other Notes to the Balance Sheet

1. Company has no contingent liabilities as on 31st March 2014. Except in case of bank guarantees issued of for the Performance of Export Orders.

Further, Legal cases has been filled against Company in relation of trade mark dispute and Company has also filled cases against opponent which are pending at different stages. Outcome of such cases are still unascertainable at this stage.

2. In view of the insufficient information from the suppliers regarding their status as SSI units, the amounts due to Small Scale Industrial undertaking cannot be ascertained.

3. All of the assets other than fixed assets and non-current investments, have been are carried at cost of acquisition.

4. There was no impairment loss on Fixed Assets on the basis of review carried out but the Management in accordance with Accounting Standard 28 issued by the Institute of Chartered Accountants of India.

B. Other Notes to the Statement of Profit and Loss

1. Traveling expenses includes Rs. 12.37 Lacs ( previous year Rs. 6.73 Lacs ) spent on Foreign Travel.

C. Other Notes to the Financial Statements

4. Related Party Disclosure for the year ended (AS - 18) i) Key Personnel & Relatives

a) Mr. Omprakash Garg -: Chairman and Managing Director

b) Mr. Durgesh Garg -: Brother''s son of Mr. Omprakash Garg

c) Mr. Pawan Bansal -: Sister''s son of Mr. Omprakash Garg

d) Mr. Suresh chand -: Brother of Mr. Omprakash Garg Garg

e) Mrs. Abha Garg -: Wife of Mr. Sureshchand Garg

5. Previous year figures have been regrouped and recasted, wherever considered necessary.

6. Additional information as required under part II as per Schedule VI to the Companies Act 1956 has been given to the extent applicable to the Company as per annexure A annexed herewith.

---

Mar 31, 2013

1. General Information

Cupid Limited (''the Company'') is a public company domiciled and incorporated in name of Cupid Rubber Limited in the state of Maharashtra on 17th February, 1993. The name was subsequently changed to Cupid Condom Limited with effect from 8th December, 2003 and further change to Cupid Limited with effect from 2nd January, 2006 as per permission affirmation by Central Government. The Company received the Certificate of Commencement of Business on 20th February, 1993. The main object of Company on incorporation was to carry on business of dealing, marketing and manufacture of rubber contraceptives and allied prophylactic products. Later on main object of Company have been appended with obligatory permissions to entered into Diamonds, Gold, Silver and other allied precious products international or domestic trading/manufacturing/connected business segments.

2. Company has no Contignent Liabilities as on 31st March, 2013, Except commitement of Rs. 19.28 lacs to be executed on account of capital goods.

3. In view of the insufficient information from the suppliers regarding their status as SSI units, the amounts due to Small Scale Industrial undertaking cannot be ascertained.

4. All of the assets otherthan fixed assets and non-current investments, have been are carried at cost of acquisition.

5. There was no impairment loss on Fixed Assets on the basis of review carried out but the Management in accordance with Accounting Standard 28 issued by the Institute of Chartered Accountants of India.

6. Traveling expenses includes Rs. 0.96 Lacs (previous year Rs. 4.68 Lacs) spent on Foreign Travel.

7. Earnings & Outflow in foreign currency (on accrual basis):-

8. Previous yearfigures have been regrouped and recasted, wherever considered necessary.

9. Additional information as required under part II as per Schedule VI to the Companies Act 1956 : has been given to the extent applicable to the Company as per annexure A annexed herewith.

---

Mar 31, 2012

1. General Information

Cupid Limited (''the Company'') is a public company domiciled and incorporated in name of Cupid Rubber Limited in the state of Maharashtra on 17th February, 1993. The name was subsequently changed to Cupid Condom Limited with effect from 8th December, 2003 and further change to Cupid Limited with effect from 2nd January, 2006 as per permission affirmation by Central Government. The Company received the Certificate of Commencement of Business on 20th February, 1993. The main object of Company on incorporation was to carry on business of dealing, marketing and manufacture of rubber contraceptives and allied prophylactic products. Later on main object of Company have been appended with obligatory permissions entered into Diamonds, Gold, Silver and other allied precious products international or domestic trading/manufacturing/connected business segments.

Terms and Condition for issued share warrant I Convertible warrants

1. The issue of warrants convertible into equity shares on preferential basis are as per price determined in compliance with SEBIICDR Regulations 2009 for Preferential Issues as amendments thereof

2. 25% of the value of the Warrant are been paid on the date of allotment of warrant. The balance is payable at the time of conversion. Each Warrant will be converted at the option of the allottee, into one equity share at any time within 18 months from the date of

3. In case the option is not exercised within a period of 18 months from the date of issue, the aforsaid 25% amount paid on the date of allotment shall be forfeited.

4. The Warrants shall be locked in form a period of one/three years from the date of allotment as prescribed under SEBI ICDR Regulation 2009 as amended.

5. The lock-in on the Equity Shares resulting from the exercise of the option under the warrants shall be locked in for a period of one/three year from the date of allotment as prescribed under SEBI ICDR Regulation 2009 as amended.

i) Terms loan is secured by a first charge on all the moveable and immovable properties / current assests including all the Plant and Machinery, Land and Building of the Company, on both being it be present and further created by way of hypothecation.

ii) Additionally all above loans have been personally guranted by Mr. Omprakash Garg, Chairman and Mr. Durgesh Garg.

iii) 10,01,500 Equity Shares of the company of Rs. 10 each held by promoter has been pledged with Bank as collaratel against Term and Cash Credit facilities.

# Instalment due on term loan on 31-3-2012 was debited by bank in the month of April, 2012.

* Installments falling due in respect of all the Loans upto 31 st March 2013 have been grouped under Current maturities of Loan-term debt (Refer Note no # 7)

a) Working Capital Assistance Loan from banks is secured by hypothecation of stock of raw materials, WIP and finished goods and book debts.

b) Additionally above loan have been personally guranted by Mr. Omprakash Garg, Chairman and Mr. Durgesh Garg

c) Maturity period with respect to Cash Credit is renewable every year

d) Rate of interest on cash credit is IVRR Less 3% as on 31 st March, 2012 IVRR is 16.75%

# The Company issued 15,00,000 convertible warrants at price of Rs. 10/- to be converted to equal number of Equity Shares of face value of Rs. 10/- each as per shareholder approval at EGM 20th July 2011, of which 14,05,000 convertible warrants are outstanding as on 31st March, 2012.

# The Company issued 11,50,000 convertible warrants at price of Rs. 10.50 to be converted to equal number of Equity Shares face value Rs. 10/- each as per shareholder approval at EGM 5th June 2010, of which 6,42,100 convertible warrants are outsatnding as on 31 st March, 2011.

NOTE NO. 3

OTHER NOTES FOR FINANCIAL STATEMENTS

A. Other Notes to the Balance Sheet

1. Company has no Contignent Liabilities as on 31 st March, 2012.

2. In view of the insufficient information from the suppliers regarding their status as SSI units, the amounts due to Small Scale Industrial undertaking cannot be ascertained.

3. All of the assets other than fixed assets and non-current investments, have been are carried at cost of acquisition.

4. There was no impairment loss on Fixed Assets on the basis of review carried out but the Management in accordance with Accounting Standard 28 issued by the Institute of Chartered Accountants of India.

B. Other Notes to the Statement of Profit and Loss

1. Details regarding Imported and Indigenous Material Consumed

3. Traveling expenses includes Rs. 4.68 Lacs (previous year Rs. 19.76 Lacs) spent on Foreign Travel.

C. Other Notes to the Financial Statemnets

1. Related Party Disclosure for the year ended (AS -18)

i) Key Personnel & Relatives

a) Mr. Omprakash Garg Chairman

b) Mr. Durgesh Garg Director

c) Mr. Pawan Bansal Sister''s son of Mr Omprakash Garg

Previous year figures have been regrouped and recasted, wherever considered necessary.

Additional information as required under part II as per Schedule VI to the Companies Act 1956 has been given to the extent applicable to the Company as per annexure A annexed herewith.

---

Mar 31, 2010

A. Contingent liabilities not provided for:-

i) The company has executed a surety Bond for Rs. 305.25 lacs (Previous Year 305.25 lacs) in favour of the Jt. D. G. F. T. which is yet to be discharged in respect of EPCG License granted to company for fulfillment of export obligation.

B. In view of the insufficient information from the suppliers regarding their status as SSJ Units, the amount due to Small Scale Industrial Undertaking cannot be ascertained.

C. Managerial remuneration paid during the year is Rs. 1.83 lacs (previous year Rs. 5.30 lacs). D. Traveling expenses includes Rs. 1.77 (previous year Rs. NIL) spent on Foreign Travel.

D. There was no impairment loss on Fixed Assets on the basis of review carried out but the Management in accordance with Accounting Standard 28 issued by the Institute of Chartered Accountants of India.

E. The Companys Business operates Segment only one segments viz, Condom. Hence the disclosure requirements for segment reporting as envisaged by Accounting Standard 17 - "Segment Reporting" issued by the ICAI is not applicable for the year under review.

F. Related Party Disclosure for the year ended (AS -18) i) Key Personnel & Relatives

a) Mr. Omprakash Garg -: Chairman

b) Mr. Durgesh Garg -: Executive Director

c) Mr. Pradeep Jain -: Non Executive Director

d) Mr. Pawan Bansal -: Ex-Executive Director

G. Previous year figures have been regrouped and recasted, wherever considered necessary.

H. Additional information as required under part II as per Schedule VI to the Companies Act 1956 has been given to the extent applicable to the Company as per annexure A annexed herewith.