Cupid Breweries And Distilleries Limited has successfully concluded its postal ballot process, with shareholders overwhelmingly approving the appointment of new auditors. The company had earlier announced significant changes to its auditing team following resignations and discontinuations of previous auditors.

Postal Ballot Results

The e-voting for the postal ballot commenced on November 22, 2025 (09:00 A.M. IST) and concluded on December 21, 2025 (05:00 P.M. IST). Mrs. Bhumika Shah, Proprietor of M/s. Bhumika & Co. (ACS: 37321, CP No.: 19635), served as the scrutinizer for the postal ballot process.

Key Appointments Approved

The Board had approved the following appointments on November 18, 2025:

Reasons for Changes

Statutory Auditor: The appointment of M/s. MMRS & Co. fills the casual vacancy created by the resignation of M/s. H. Rajen & Co.

Internal Auditor: M/s. R Narsihma and Associates replaces M/s. H. M. Shah & Co., which was discontinued due to engagement in services inconsistent with auditor independence requirements.

Terms of Appointment

• Statutory Auditor: M/s. MMRS & Co. will hold office until the conclusion of the 40th Annual General Meeting
• Internal Auditor: M/s. R Narsihma and Associates will serve for the remainder of the financial year 2025-26

Profile of New Auditors

M/s. MMRS & Co. (Statutory Auditor) is a peer-reviewed partnership firm of Chartered Accountants with extensive experience in various types of audits, including statutory, internal, concurrent, and stock audits. The firm has expertise in company law compliance, forensic accounting, business valuations, and mergers & acquisitions.

M/s. R Narsihma and Associates (Internal Auditor) brings experience in Accounting, Auditing, Taxation (Direct Tax and GST), and provides Consultancy and Virtual CFO services. The firm offers end-to-end accounting, monthly financial closings, and statutory compliance services across diverse sectors including Construction & Real Estate, Banking, Healthcare, and IT.

These appointments reflect Cupid Breweries and Distilleries Limited's commitment to maintaining robust financial oversight and ensuring compliance with regulatory requirements. The overwhelming shareholder approval demonstrates confidence in the new auditing arrangements.

Cupid Breweries And Distilleries Limited has disclosed receiving a penalty from BSE Limited for non-compliance with financial reporting regulations. The company received a fine of ₹1.50 lakh (exclusive of GST) on December 16, 2025, for delayed submission of quarterly financial results.

Regulatory Non-Compliance Details

The fine was imposed under SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, for alleged non-compliance with Regulation 33 of the SEBI Listing Regulations. The violation pertains to the delayed submission of unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2025.

Auditor Transition Challenges

The company's Board of Directors, in their meeting held on November 14, 2025, could not approve the unaudited financial results due to unavailability of the Limited Review Report from the statutory auditor. Despite repeated follow-ups, M/s H Rajen & Co., the company's statutory auditor, failed to provide the required review report and subsequently tendered their resignation on November 16, 2025.

To address the auditor vacancy, the Board appointed M/s MMRS & Co. as the new statutory auditor on November 18, 2025, subject to shareholder approval. The postal ballot process for the auditor appointment is scheduled to be completed on December 21, 2025.

Company's Response and Mitigation Efforts

Cupid Breweries And Distilleries has been actively communicating with BSE Limited regarding the delay circumstances. The company submitted a detailed explanation on November 15, 2025, outlining the reasons for the delay in finalizing and submitting financial results. Additionally, on December 10, 2025, the company provided another comprehensive explanation to BSE Limited, clarifying the factual position and circumstances leading to the delay.

Financial Impact and Next Steps

The financial impact on the company is limited to the fine amount of ₹1.50 lakh (exclusive of GST) payable to BSE. The company has indicated that it is in the process of submitting a representation to BSE Limited requesting a waiver of the imposed fine, along with supporting documents and justification as per BSE's prescribed process.

The company continues to maintain regular correspondence with BSE Limited and has responded to all communications received in this regard, demonstrating its commitment to regulatory compliance despite the temporary challenges faced during the auditor transition period.