Accounting Policies of Cupid Breweries & Distilleries Ltd. Company

Mar 31, 2025

A. Significant Accounting Policies:

• The company has implemented following Accounting Policies for the year under
review and the same have been consistently applied by the Company and are used in
the previous year.

• Mercantile accounting System: The Company follows the mercantile system of
accounting and recognizes income and expenditure on an accrual basis.

• Accounting Software : Company has maintained accounts on the computerized Tally
Software which is widely used in industry.

• Fixed Assets : Assets are stated at actual cost less depreciation.

• Depreciation Method :

Depreciation has been provided based on useful life assigned to each asset in
accordance with Schedule II of the Companies Act, 2013. The residual values are not
more than 5% of the original cost of the asset. The useful life of major components of
property, plant and equipments is as follows:

Computers: 3 Years
Furniture & Fixture: 10 Years
Office Equipments: 5 Years

• Investments:

Long-term Investments are valued at cost of acquisition (including cost of purchase,
brokerage, and other related expenses and other related expenses incurred thereon).
However, provision be made for any diminution in value, other than temporary, in
which case the carrying value is reduced to recognize the decline and the same is being
reversed when value of those investments is improved.

• Cash and cash equivalents:

Cash and cash equivalents in the balance sheet and cash flow statement comprise cash
at banks and on hand and short-term deposits with an original maturity of three
months or less, which are subject to an insignificant risk of changes in value

• Deferred tax assets and liabilities:

It is classified as non-current assets and liabilities. The operating cycle is the time
between the acquisition of assets for processing and their realization in cash and cash
equivalents. The Company has identified twelve months as its operating cycle.

• Current versus non-current classification:

The Company presents assets and liabilities in the balance sheet based on
current/ non-current classification.

An asset is treated as current when it is:

• expected to be realized or intended to be sold or consumed in normal operating
cycle;

• held primarily for the purpose of trading;

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

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

All other assets are classified as non-current.

A liability is current when:

• expected to be settled in normal operating cycle;

• held primarily for the purpose of trading;

• due to be settled within twelve months after the reporting period; or

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

The Company classifies all other liabilities as non-current

• Dues from micro and small enterprises as defined under the Micro, Small and Medium
Enterprises Development (MSMED) Act, 2006. The company is under process of
identifying dues from Micro, Small and Medium Enterprises.

• Contingent liabilities and contingent assets:

Contingent liabilities : Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within
the control of the company or a present obligation that arises from past events where it is
either not probable that an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.

Contingent assets : Contingent assets are neither recognized nor disclosed in the financial
statements.

B. RECENT INDIAN ACCOUNTING STANDARDS (IND AS) Ministry of Corporate
affairs (MCA) has notified new standards or amendment to the existing standards:

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the
existing standards under Companies (Indian Accounting Standards) Rules as issued
from time to time. On March 31, 2023, MCA amended the Companies (Indian
Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting
Standards) Amendment Rules, 2023, applicable from April 1, 2023.

• Ind AS 1 - Presentation of Financial Statements

The amendments that are required to be disclose by the company have been disclosed
their material accounting policies rather than their significant accounting policies.
Accounting policy information, together with other information, is material when it can
reasonably be expected to influence decisions of primary users of general-purpose
financial statements.

The financial statements comprising the Balance Sheet as at March 31, 2025, Profit and
Loss including standalone other comprehensive income, the Cash Flow Statement, the
and the notes to financial statements for the year ended on that date.

The Company''s accounts have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 ("the Act")
read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended from
time to time) and presentation requirements of Division II of Schedule III to the

Companies Act, 2013, (Ind AS compliant Schedule III), as applicable and other relevant
provisions of the Act.

The financial statements have been prepared on a historical cost basis, except for assets
and liabilities which are required to be measured at fair value. The financial statements
are presented in Indian Rupees ("INR") and all values are rounded to the nearest lakhs
(INR 00,000), except when otherwise indicated.

The material accounting policies adopted for preparation and presentation of financial
statements have been applied consistently. The Company has prepared the financial
statements on the basis that it will continue to operate as a going concern.

• IND AS 2 - Inventory

Costs of finished goods and stock in process include cost of raw material and packing
materials, cost of conversion and other costs incurred in bringing the inventories to the
present location and condition. The Company has Inventory valued at cost or Market
Value (whichever is lower) as on 31st March, 2025. The inventory has been physically
verified by the management.

• IND AS 7 - Statement of Cash flow statement.

The statement of cash flows has reported cash flows during the period classified by
operating, investing and financing activities. The entity has reported cash flows from
operating activities using the Indirect method, whereby major classes of gross cash
receipts and gross cash payments
are disclosed.

• IND AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors :

The definition of a "change in accounting estimates" has been replaced with a definition
of "accounting estimates". Accounting estimates are defined as "monetary amounts in
financial statements that are subject to measurement uncertainty". Entities develop
accounting estimates if accounting policies require items in financial statements to be
measured in a way that involves measurement uncertainty. The Company is in the
process of evaluating the impact of these amendments.

The estimates and judgments used in the preparation of the financial statements are
continuously evaluated by the company and are based on historical experience and
various other assumptions and factors (including expectations of future events) that the
company believes to be reasonable under the existing circumstances.

Differences between actual results and estimates are recognized in the period in which
the results are known/materialized.

The said estimates are based on the facts and events, that existed as at the reporting date,
or that occurred after that date but provide additional evidence about conditions existing
as at the reporting date.

The estimates and judgments that have significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the next financial year, are
included.

• IND AS 12 - Income Tax :

The amendments clarify how companies account for deferred tax on transactions such as
leases and decommissioning obligations. The amendments narrowed the scope of the
Initial recognition exemption of Ind AS 12 so that it no longer applies to transactions that,
on initial recognition, give rise to equal taxable and deductible temporary differences.
Accordingly, companies will need to recognize a deferred tax asset and a deferred tax
liability for temporary differences arising on transactions such as initial recognition of a
lease and a decommissioning provision.

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted, at the reporting
date. Current income tax relating to items recognized outside the Statement of Profit and
Loss is recognized outside the Statement of Profit and Loss (either in OCI or in equity in
correlation to the underlying transaction). Management periodically evaluates whether it
is probable that the relevant taxation authority would accept an uncertain tax treatment
that the Company has used or plan to use in its income tax filings, including with respect
to situations in which applicable tax regulations are subject to interpretation and
establishes provisions, where appropriate.

• IND AS 19 - "EMPLOYEE BENEFITS" (Post retirement benefit plans) - Gratuity:

Provident fund, Gratuity and Employees State Insurance Scheme contribution is not
applicable to the company.

• IND AS 24 - Disclosure on Related Party Transactions

Names of related parties and description of relationship: In accordance with the
requirement of Indian Accounting Standard (Ind AS) 24 ''Related Party Disclosures'', name
of the related party and related party relationships, are disclosed where transactions have
taken place during the reporting period, and for all parties in the case of relationship of
control.

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Mar 31, 2024

Significant Accounting Policies:

• The company has implemented following Accounting Policies for the year under
review and the same have been consistently applied by the Company and are used in the
previous year.

• . Mercantile accounting System: The Company follows the mercantile system of
accounting and recognizes income and expenditure on an accrual basis except for certain
financial instruments which are measured at fair values.

• Accounting Software : Company has maintained accounts on the computerized
Tally Software which is widely used in industry.

• Fixed Assets : Assets are stated at deemed cost less depreciation.

• Depreciation Method :

Depreciation methods, estimated useful lives less residual value

On plant and equipment, the depreciation is provided as per the life specified for continuous
Industrial unit in Schedule II to Companies Act, 2013.

• Investments:

Long-term Investments are valued at cost of acquisition (including cost of purchase,
brokerage, and other related expenses and other related expenses incurred thereon).
However, provision be made for any diminution in value, other than temporary, in which
case the carrying value is reduced to recognize the decline and the same is being reversed
when value of those investments is improved.

• Cash and cash equivalents:

Cash and cash equivalents in the balance sheet and cash flow statement comprise cash at
banks and on hand and short-term deposits with an original maturity of three months or
less, which are subject to an insignificant risk of changes in value

• Deferred tax assets and liabilities: It is classified as non-current assets and
liabilities. The operating cycle is the time between the acquisition of assets for processing
and their realisation in cash and cash equivalents. The Company has identified twelve
months as its operating cycle

• Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-
current classification.

An asset is treated as current when it is:

S expected to be realized or intended to be sold or consumed in normal operating
cycle;

S held primarily for the purpose of trading;

S expected to be realized within twelve months after the reporting period; or

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

All other assets are classified as non-current.

A liability is current when:

S expected to be settled in normal operating cycle;

S held primarily for the purpose of trading;

S due to be settled within twelve months after the reporting period; or

S there is no unconditional right to defer the settlement of the liability for at least
twelve months after the reporting period.

The Company classifies all other liabilities as non-current

• Dues from micro and small enterprises as defined under the Micro, Small and
Medium Enterprises Development (MSMED) Act, 2006.

• The company is under process of identifying dues from Micro, Small and Medium
Enterprises.

• Contingent liabilities and contingent assets:

Contingent liabilities : Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which will be confirmed only by the
occurrence or non occurrence of one or more uncertain future events not wholly within the
control of the company or a present obligation that arises from past events where it is either
not probable that an outflow of resources will be required to settle or a reliable estimate of
the amount cannot be made.

Contingent assets : Contingent assets are neither recognized nor disclosed in the financial
statements.

B. RECENT INDIAN ACCOUNTING STANDARDS (IND AS) Ministry of Corporate
affairs (MCA) has notified new standards or amendment to the existing standards:

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to
time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards)
Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules,
2023, applicable from April 1, 2023.

• Ind AS 1 - Presentation of Financial Statements

The amendments that are required to be disclose by the company have been disclosed their
material accounting policies rather than their significant accounting policies. Accounting
policy information, together with other information, is material when it can reasonably be
expected to influence decisions of primary users of general-purpose financial statements.

The financial statements comprising the Balance Sheet as at March 31, 2024, Profit and Loss
including standalone other comprehensive income, the Cash Flow Statement, the and the
notes to financial statements for the year ended on that date.

The Company''s accounts have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 ("the Act") read
with the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to
time) and presentation requirements of Division II of Schedule III to the Companies Act,
2013, (Ind AS compliant Schedule III), as applicable and other relevant provisions of the Act.

The financial statements have been prepared on a historical cost basis, except for assets and
liabilities which are required to be measured at fair value. The financial statements are
presented in Indian Rupees ("INR") and all values are rounded to the nearest lakhs (INR
00,000), except when otherwise indicated.

The material accounting policies adopted for preparation and presentation of financial
statements have been applied consistently.

The Company has prepared the financial statements on the basis that it will continue to
operate as a going concern.

• IND AS-7 Statement of Cash flow statement.

The statement of cash flows has reported cash flows during the period classified by
operating, investing and financing activities.

The entity has reported cash flows from operating activities using the direct method,
whereby major classes of gross cash receipts and gross cash payments

are disclosed;

• IND AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors :

The definition of a "change in accounting estimates" has been replaced with a definition of
"accounting estimates". Accounting estimates are defined as "monetary amounts in
financial statements that are subject to measurement uncertainty". Entities develop
accounting estimates if accounting policies require items in financial statements to be
measured in a way that involves measurement uncertainty. The Company is in the process
of evaluating the impact of these amendments.

The estimates and judgments used in the preparation of the financial statements are
continuously evaluated by the company and are based on historical experience and various
other assumptions and factors (including expectations of future events) that the company
believes to be reasonable under the existing circumstances.

Differences between actual results and estimates are recognized in the period in which the
results are known/materialised.

The said estimates are based on the facts and events, that existed as at the reporting date, or
that occurred after that date but provide additional evidence about conditions existing as at
the reporting date.

The estimates and judgments that have significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next financial year, are included.

• IND AS 12 - Income Taxes :

The amendments clarify how companies account for deferred tax on transactions such as
leases and decommissioning obligations. The amendments narrowed the scope of the Initial
recognition exemption of Ind AS 12 so that it no longer applies to transactions that, on initial
recognition, give rise to equal taxable and deductible temporary differences. Accordingly,
companies will need to recognise a deferred tax asset and a deferred tax liability for
temporary differences arising on transactions such as initial recognition of a lease and a
decommissioning provision.

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted, at the reporting
date. Current income tax relating to items recognized outside the Statement of Profit and
Loss is recognized outside the Statement of Profit and Loss (either in OCI or in equity in
correlation to the underlying transaction). Management periodically evaluates whether it is
probable that the relevant taxation authority would accept an uncertain tax treatment that
the Company has used or plan to use in its income tax filings, including with respect to
situations in which applicable tax regulations are subject to interpretation and establishes
provisions, where appropriate.

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Mar 31, 2014

1. BASIS OF ACCOUNTING:- The Accounts have been prepared on historical cost basis and accrual system of accounting unless otherwise stated.

2. INCOME RECOGNITION: -

2.1 Interest on investments is accounted for on accrual basis.

2.2 Dividend income is accounted for on receipt basis.

2.3 Profit or loss on sale of investments is accounted for as and when the transactions are entered in to.

3. EXPENSES: -The Company provides for all expenses on accrual basis.

4. FIXED ASSETS: Fixed Assets are valued at cost less depreciation. The depreciation has been provided as per rate prescribed in the Income Tax Act 1961.

5. INVENTORY: Inventory is valued at cost.

6. SALES are accounted for on accrual basis

7. GRATUITY: No provision for retirement benefits for employees has been made since the Gratuity Act and Provident Fund Act are not applicable to the Company and the company has adopted PAY-AS-YOU-GO method for the payment of other retirement benefits, if any payable to the Employees.

8. TAXATION

(i) Provision for current tax is made in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961.

(ii) Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the Balance Sheet date.

9. INVESTMENTS: Long term investments are stated at cost. Provision for diminution in the value of long term investment is made only if such decline is other than temporary in the opinion of the management.

10. CONTINGENT LIABLITY: All known liabilities are provided for in the books of account except liabilities of contingent nature which have been adequately disclosed by way of "Notes to the Account"

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Mar 31, 2013

1. BASIS OF ACCOUNTING:- The Accounts have been prepared on historical cost basis and accrual system of accounting unless otherwise stated.

2. INCOME RECOGNITION : -

2.1 Interest on investments is accounted for on accrual basis.

2.2 Dividend income is accounted for on receipt basis.

2.3 Profit or loss on sale of investments is accounted for as and when the transactions are entered in to.

3. EXPENSES: -The Company provides for all expenses on accrual basis.

4. FIXED ASSETS: Fixed Assets are valued at cost less depreciation. The depreciation has been provided as per rate prescribed in the Income Tax Act 1961.

5. INVENTORY: Inventory is valued at cost.

6. SALES are accounted for on accrual basis

7. GRATUITY: No provision for retirement benefits for employees has been made since the Gratuity Act and Provident Fund Act are not applicable to the Company and the company has adopted PAY-AS-YOU-GO method for the payment of other retirement benefits, if any payable to the Employees.

8. TAXATION

(i) Provision for current tax is made in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961.

(ii) Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the Balance Sheet date.

9. INVESTMENTS: Long term investments are stated at cost. Provision for diminution in the value of long term investment is made only if such decline is other than temporary in the opinion of the management.

10. CONTINGENT LIABLITY: All known liabilities are provided for in the books of account except liabilities of contingent nature which have been adequately disclosed by way of "Notes to the Account''''

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Mar 31, 2012

1. BASIS OF ACCOUNTING:-

The Accounts have been prepared on historical cost basis and accrual system of accounting unless otherwise stated.

2. INCOME RECOGNITION : -

2.1 Interest on investments is accounted for on accrual basis.

2.2 Dividend income is accounted for on receipt basis.

2.3 Profit or loss on sale of investments is accounted for as and when the transactions are entered in to.

3. EXPENSES: -The Company provides for all expenses on accrual basis.

4. FIXED ASSETS: Fixed Assets are valued at cost less depreciation. The depreciation has been provided as per rate prescribed in the Income Tax Act 1961.

5. INVENTORY: Inventory is valued at cost.

6. SALES are accounted for on accrual basis

7. GRATUITY: No provision for retirement benefits for employees has been made since the Gratuity Act and Provident Fund Act are not applicable to the Company and the company has adopted PAY-AS-YOU-GO method for the payment of other retirement benefits, if any payable to the Employees.

8. TAXATION

(i) Provision for current tax is made in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961.

(ii) Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the Balance Sheet date.

9. INVESTMENTS: Long term investments are stated at cost. Provision for diminution in the value of long term investment is made only if such decline is other than temporary in the opinion of the management.

10. CONTINGENT LIABLITY: All known liabilities are provided for in the books of account except liabilities of contingent nature which have been adequately disclosed by way of "Notes to the Account''

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Mar 31, 2010

A. The company follows the accrual system of accounting in respect of all income and expenditure except dividend which is accounted on receipt basis.

B. Fixed assets are valued at cost and depreciation is provided on written down value method as per rates prescribed under Income Tax Act 1961

C. Inventories are valued at cost.

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Mar 31, 2009

A. The company follows the accrual system of accounting in respect of all income and expenditure except dividend which is accounted on receipt basis.

B. Fixedassets are valued at cost and depreciation is provided on written down value method as per rates prescribed under Income Tax Act 1961

C- inventories-are valued at cost.