Quarter 1 - financial statement for 2026

Financial Highlight 3

Statement of Profit or Loss and 4

Other Comprehensive Income

Statement of Financial Position 5

Statement of Changes in Equity 6-7

Statement of Cash Flows 8

Notes to the Financial Statements 9-42

Value Added Statement 43

Free Float 44

CUTIX PLC

FINANCIAL HIGHLIGHT

FOR THE PERIOD ENDED 31ST JULY, 2025

GROUP

Unaudited Period Ended

Unaudited Period Ended

Increase/ (Decrease)

CUTIX PLC

CONSOLIDATED AND SEPARATE STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31ST JULY, 2025

Group Company

1st, quarter ended 31/07/2024

Period Ended 1/5/24-

Notes

Revenue 6

Cost of Sales 7

Gross Profit

Selling and Distribution

Expenses 8

Administrative

Expenses 9

Operating Profit/(Loss)

Other Income 10

Finance Cost 11

Profit Before Tax 12

N'000 N'000

3,545,298 3,545,298

(2,743,387) (2,743,387)

Income Tax Expense 13

Profit for the Period

Other Comprehensive Inco

The notes to the financial statements form an integral part of these financial statements.

Total Comprehensive Income for the period

Total Comprehensive Incom 56,900 56,900 306,708 306,708 1,031,829 25,022 25,022 307,339 307,339

Earnings per Share (Kobo) - 0.81 0.81

Earnings per Share (Kobo 0.81 0.81

8.71 8.71 14.65 0.36 0.36 8.72 8.72

4.35 4.35 14.65 0.36 0.36 4.36 4.36

CUTIX PLC

CONSOLIDATED AND SEPARATE STATEMENT OF FINANCIAL POSITION AS AT 31ST JULY, 2025

Group Company

Unaudited Unaudited Audited as as at as at at

31/07/2025 31/07/2024 30/04/2025

N'000 N'000 N'000

Unaudited as at 31/07/2025 N'000

Unaudited Audited as as at at

31/07/2024 30/04/2025

N'000 N'000

2,641,729 1,266,558 2,515,828

- - -

1,800

2,519,666

-1,800

35,845

2,557,311

1,142,741 2,393,328

-

4,910

2,296

4,910

2,296

-

-

2,643,529 1,271,468 2,518,124

62,730 35,846

1,210,381 2,431,470

5,758,295 4,343,296 4,762,595

1,524,916 2,019,397 1,235,552

569,736 72,846 34,499

180,917 287,157 140,898

8,033,864 6,722,696 6,173,544

10,677,393 7,994,164 8,691,668

5,711,009

1,519,029

569,736

134,675

7,934,449

10,491,760

4,318,695 4,664,342

2,049,881 1,270,669

72,846 34,499

268,821 121,551

6,710,243 6,091,061

7,920,624 8,522,531

Assets: Note

Non-Current Assets

Property, Plant and Equipment 14 Intangible Assets 15

Long Term Prepayments 16

Investment 17

Total Non-Current Assets

Current Assets

Inventories 18

Trade and other Receivables 19

Other Prepayments 20

Cash and Bank Balances 21.1

Total Current Assets Total Assets

Equity and Liabilities Equity:

Capital and Reserves

Share Capital 23

Retained Earnings 24

Total equity attributable to owners of the Company

Liabilities:

Non-Current Liabilities

Deferred Tax Liabilities 13.3

Borrowings 25

Total Non-Current Liabilities

Current Liabilities

Short Term Borrowings 26

Trade and other Payables 22

Current Tax Liabilities 13.2

Total Current Liabilities Total Liabilities

Total Equity and Liabilities

6,443,740 3,734,465 4,438,804

10,677,393 7,994,164 8,691,668

6,219,031

3,585,224 4,182,291

10,491,760

7,920,624 8,522,531

The Financial Statements on pages 4 to 8 and Notes to the Financial Statement on pages 9 to 44 were approved by the Board of Directors on Aug 28, 2025 and signed on its behalf by:

Barr Mrs Ifeoma Nwahiri Mrs. Ijeoma Oduonye Mr Michael Onwudiwe

Chairman Chief Executive Officer Chief Financial Officer

FRC/2022/PRO/DIR/003/17745 FRC/2016/PRO/DIR/003/00000015363 FRC/2025/PRO/ICAN/001/309629

Changes in Equity for the period

Profit for the period 86,211

Other Comprehensive items for the period

54,601

(160,024)

Total Equity in the period 3,522,644 816,432 4,339,076

Dividend paid during the

period -

Unclaimed Dividend written

back 54,601

Unclaimed Dividend Refund (160,024)

As At 31st July, 2025 3,522,644 711,009 4,233,653

CUTIX PLC

CONSOLIDATED AND SEPARATE STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31ST JULY, 2025

Group Company

CUTIX PLC

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31ST JULY, 2025

1. The Company

   1. Legal Form

      Cutix Plc was incorporated on November 4, 1982 as a private limited liability Company. The Company was initially quoted in the second tier of the Nigerian Stock Exchange on August 12, 1987 and later migrated to the first tier of the Stock Exchange on February 18, 2008. The address of Company is 17, Osita Onyejianya Street, Umuanuka, Otolo Nnewi, Anambra State.

   2. Principal Activity

The principal activities of the Company is manufacturing and marketing of electrical, automobile and telecommunication wires, cables and related products.

1. Basis of Preparation of Account s

   1. Statement of Compliance

      The consolidated and separate financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued the International Accounting Standards Board (IASB). It is also prepared in compliance with Companies and Allied Matters Act, 2020 (as amended) and Financial Reporting Council of Nigeria, Act No. 6, 2011 (as amended).

   2. Basis of Measurement

      The consolidated and separate financial statements have been prepared under the historical cost convention, except for the areas as indicated below:-

      • Available for sale financial assets are measured at fair value,

      • Financial instruments are measured at fair value,

      • Loans and advances are stated at Amortised cost,

      • Inventory is measured at net realisable value,

      • Land and buildings are carried at cost or revalued amount,

      • Investment properties are measured at fair value, and

      • Defined benefit asset is recognised at the net total of the plan assets plus unrecognised past service cost and unrecognised actuarial loss, less unrecognised actuarial gains and the present value of the defined benefit obligation.

      Judgments made by management in the application of IFRS that have significant effect on the consolidated and separate financial statements and estimates that may have significant risk of material adjustment in the next year are discussed.

   3. Functional and Presentation CurrencyThe consolidated and separate financial statements

      are drawn up in Naira (N) which is the functional currency of Cutix Plc and the figures are rounded to the nearest thousands except stated otherwise.

   4. Composition of Financial Statements

      The Company has been preparing its financial statements prepared under IFRS comprises of:

      • Statement of profit or loss and other comprehensive Income

      • Statement of financial position

      • Statement of changes in equity

      • Statement of cash flows

      • Notes to the financial statements

   5. Financial Period

      These financial statements cover the financial period ended 31st July 2025, with comparative amounts for the financial period ended 31st July 2024.

   6. Going Concern Considerations

      The business entity will continue to operate in the foreseeable future without the need or intention on the part of management to liquidate the entity or to significantly curtail its operational activities as the Company has consistently been making profits. The Directors believe that there is no intention or threat from any source to curtail significantly its lines of business in the foreseeable future.

   7. Critical Estimates and Judgments

      The preparation of financial statements in conformity with IFRS requires the use of certain critical

      accounting estimates. It also requires management to exercise its judgment in the process of applying the Company's accounting policies. Changes in assumptions may have a significant impact on the financial statements in the period the assumptions changed. Management believes that the underlying assumptions are appropriate and that the Company's financial statements therefore present the financial position and results fairly.

      The 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, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

2. Significant Accounting Policies

   The significant accounting polices set out below have been applied consistently to all periods presented in these financial statements.

   1. Property, Plant and Equipment

      Property, plant and equipment are measured at cost less accumulated depreciation and accumulated

      impairment losses. Such cost includes the cost of replacing component parts of the property, plant and equipment and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of property, plant and equipment are required to be replaced at intervals, the Company derecognises the replaced part, and recognises the new part with its own associated useful life and depreciation.

      Likewise, when a major inspection is performed, its costs are recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. Land is carried at cost, less any recognised impairment loss.When the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount.

      1. Subsequent Costs

         Cost arising subsequent to the acquisition of an asset are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance costs are charged to the income statement during the financial year in which they are incurred.

      2. De-recognition

         Items of property, plant and equipment is derecognised on disposal or when no future economic benefits are expected from its use. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in income statement in the year the asset is derecognised.

      3. Depreciation of Property, Plant and Equipment

         Depreciation is calculated on a straight-line basis to write-off assets over their estimated useful lives. Land and assets under construction (work-in-progress) are not depreciated.

         Depreciation starts when an asset is ready for use and ends when derecognised or classified as held for sale. Depreciation does not cease when the asset becomes idle or retired from use unless the asset is fully depreciated.

         AssetUseful life Land Lease period

         Buildings & Infrastructure 15 to 40 years

         Shops 5 to 30 years

         Borehole & Tanks 10 years

         Furniture & Fittings 10 years

         Generating Sets 5 years

         Machine Components 4 years

         Plant, Machinery & Equipment 10 years

         Motor Vehicles 4 years

         Computer Equipment 2 years

      4. Asset Useful Lives and Residual Values

         Property, plant and equipment are depreciated over their useful lives taking into account residual values where appropriate. The actual useful lives of the assets and residual values are assessed annually. In reassessing asset useful lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

      5. Provision for Dismantling/Restoration Cost

         The provisions are computed by reference to estimates of future anticipated dismantling costs and the

         corresponding amounts added to the asset under property, plant and equipment for assets measure using the cost model. For assets measured using the revaluation model, subsequent changes in the liability are recognised in revaluation reserves through OCI to the extent of any credit balances existing in the revaluation surplus reserve in respect of that asset. The present values are determined using pre-tax rate which reflects current market assessments of the time value of money and the risk specific to the obligation.

         Provisions are recognised whenever a legal or constructive obligation arising from past events, the outflow of resources to settle the liability can be estimated reliably. Provisions are discounted if the effect is material. However, no provision was made in the financial statements.

      6. Related Parties (IAS 24)

         Related parties include the parent Company and other related entities. Directors, their close family

         members and any employee who is able to exert a significant influence on the operating policies of the Company are also considered to be related parties. Key management personnel are also regarded as related parties. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.

   2. Intangible Assets

      I Recognition and Measurement

      Software acquired is stated at cost less accumulated amortisation and accumulated impairment losses.Subsequent expenditure on software assets is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is expensed as incurred.

      ii Amortisation is recognised in profit or loss on a straight line basis over the estimated useful life of the software from the date it is available for use. The estimated useful life for the current and comparative years of significant items of intangible assets, Odoo ERP is five (5) years.

      1. Derecognition of Intangible Assets

         An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset are recognised in profit or loss when the asset is derecognised.

      2. Subsequent Expenditure

      3. Amortisation

         Amortisation is calculated over the cost of the asset, or other amount substituted for cost, less its residual

         value. Amortisation is recognised in income statement on a straight line basis over the estimated useful lives of intangible assets from the date that they are available for use, since this must closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. Amortisation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate.

      4. Non-Current Assets held for Sale

         Non-current assets are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction and a sale is considered highly probable. Immediately before classification as held for sale, the assets, or components of a disposal Group, are re-measured in accordance with the Company's accounting policies. Thereafter the assets, or disposal Group, are measured at the lower of their carrying amount and fair value less costs to sell.

         Impairment losses on initial classification as held for sale and subsequent gains or losses on remeasurement are recognised in profit or loss. Gains are not recognised in excess of any cumulative impairment loss.

   3. Taxation

      The income tax expense represents the estimated sum of the tax currently payable and deferred tax.

      1. Current Tax

         The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the statement of profit or loss and other comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

      2. Deferred Tax

         Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

         Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

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

         Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised based on tax laws and rates that have been enacted at the reporting date. Deferred tax is charged or credited in profit or loss, except when it relates to items charged or credited in other comprehensive income, in which case the deferred tax is also dealt with in other comprehensive income. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off.

      3. Tax Exposure

         In determining the amount of current and deferred tax, the Company takes into account the impact of

         uncertain tax positions and whether additional taxes and interest may be due. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes the Company to change its judgment regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made.

   4. Inventory

      Inventories are valued at the lower of cost and net realisable value. Cost is generally determined on a weighted average basis. Costs that are incurred in bringing each product to its present location and condition are accounted for as follows:

      1. Raw Materials: Purchase cost on a weighted average cost basis.

      2. Finished Goods and Work-in-Progress: Cost of direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity.

      3. Other Inventories and Spares: The cost of other inventories is based on weighted average. Spare parts

      are valued at the lower of cost and net realisable value. Value reduction and usage of spare parts are charged to statement of profit or loss and other comprehensive income.

      Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

      The production costs comprise direct materials, direct labour and an appropriate of manufacturing fixed

      and variable overheads. Allowance is made for obsolete, slow moving or defective items where appropriate.

      1. Treatment of Goods in Transit

         Goods in transit are recognised in the books as soon as significant risk and rewards of ownership is transferred to the customer (date of shipment).

   5. Receivables

      1. Trade Receivables

         Trade receivables are carried at the original amount due from customers, which is considered to be fair

         value, less allowances for doubtful accounts. Allowance for doubtful accounts is based on a periodic review of all outstanding amounts, where significant doubt about collectability exists, including an analysis of historical bad debt, customer concentrations, customer credit-worthiness, current economic trends and changes in our customer payment terms. Significant debt balances are provided for based on the criteria mentioned above and non-significant debts are tested collectively for impairment. Bad debts are written off when identified as uncollectible, and are included within other operating expenses.

         Subsequent recoveries of amounts previously provided for are credited to the statement of profit or loss and other comprehensive income.

   6. Financial Instruments

      Financial assets within the scope of IAS 39 are classified as financial assets at fair value through profit or loss, loans and receivables, held-to-maturity, investments and available for sale. The classification is determined by management at initial recognition and depends on the purpose for which the investments were acquired.

      Financial instruments carried at the financial position date include the loans and receivables, accounts receivable, cash and cash equivalents, borrowings and accounts payables. Financial instruments are recognised initially at fair value plus, for instruments not at fair value through profit or loss, any directly attributable transaction costs. Subsequent to initial recognition financial instruments are measured as described below.

      1. Financial Assets

         The classification of financial assets depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. The financial assets carried at statement of financial position date are classified as 'loans and receivables'.

         Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market other than those that the Company intends to sell in the short term or that it has designated as fair value through profit or loss or available for sale. The Company does not use derivative financial instruments.

         Loans and Receivables

         Loans and receivables include loans to staff and are initially measured at cost but subsequently at

         Amortised cost using the effective interest rate method less impairment. Loans are subject to regular and thorough review as to their collectability and as to available collateral. In the event that any loan is deemed not fully recoverable, impairment is made to reflect the shortfall between the carrying amount and the present value of the expected cash flows. Interest income on loans receivable is recognised by applying the effective interest rate. The long term portion of loans receivable is included on the statement of financial position under long-term loans receivable and the current portion under current portion of long-term loans receivable. However, where the impact of measuring these loans at Amortised cost is not significant, the receivables are carried at cost.

         Financial Assets Measured at Amortised Costs:-Trade and Other Receivables

         Financial assets measured at amortised cost are non-derivative financial assets with fixed or determinable

         payments that are not quoted in an active market. Financial assets measured at amortised cost (including [trade and other receivables, and cash and bank balances) are measured at amortised cost using the effective interest method, less any impairment.

         Cash and Cash Equivalents

         Cash and cash equivalents includes cash in hand, cash balances with banks, other short term highly liquid investments with original maturity of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown as borrowings in current liabilities.

         Impairment of Financial Assets Measured at Amortised Cost:-

         Trade and Other Receivables

         Financial assets measured at amortised cost are assessed for indicators of impairment at the end of each

         reporting period on a collective basis even if they were assessed not to be impaired individually. The amount of the impairment loss is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted (if significant) at the financial asset's original effective interest rate. The carrying amount is reduced through the use of an allowance account. Any uncollectible amount is written off against the allowance account while subsequent recoveries of amounts previously written off are credited against the allowance account. Previously recognised impairment loss is reversed in subsequent periods through profit or loss to the extent that the carrying amount at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.

      2. De-recognition of Financial Assets

         Financial assets are derecognised when the contractual rights to the cash flows from the asset expire, or when the Company transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party. On de-recognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognised in profit or loss.

      3. Financial Liabilities

         The Company's financial liabilities at statement of financial position date include Borrowings and Trade payables (excluding VAT and employee related payables). These financial liabilities are subsequently measured at Amortised cost using the effective interest rate method. Financial liabilities are included in current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the statement of financial position date. However, where the impact of measuring trade payable at amortised cost is insignificant, trade payables are carried at cost.

         Trade Payables

         Trade payables are stated at their original invoiced value. If there is an agreement that interest or premium be paid, it will be calculated and added to the initial amount.

         Borrowings

         Borrowings, inclusive of transaction cost, are recognised initially at fair value. Borrowings are

         subsequently stated at Amortised costs using the effective interest rate method, any difference between proceeds and the redemption value is recognised in the income statement over the period of the borrowing using the effective interest rate method. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the statement of financial position date.

         Borrowing Costs

         Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset. Other borrowing costs are expensed in the period in which they are incurred.

      4. Impairment of Financial Assets

         All financial assets, except for those at fair value through profit or loss, are assessed for indicators of impairment at each reporting date.

   7. Leases

      The Company has adopted IFRS 16, "Leases" as issued by the IASB in July 2014 with a date of transition

      of 1 January 2019, which resulted in changes in accounting policies. As permitted by the transitional provision of the standard, the Company may choose the modified retrospective approach to the application of IFRS 16. This approach allows the Company not to restate comparative financial information. The major impact of the adoption of this standard is that the Company will be required to capitalize all leases (i.e. recognize a right-of-use asset and a lease liability) with the exemption of certain short-term leases and leases of low-value assets. However, this standard does not change the accounting for leases of the Company in the year under review.

      Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

      Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's general policy on borrowing costs. Contingent rentals are recognised as expenses in the periods in which they are incurred.

      Other leases are classified as operating leases and are not recognised on the Company's statement of financial position. Payments made under operating leases are recognised in the profit or loss on a straight line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease.

      Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

   8. Application of new and revised International Financial Reporting Standards (IFRS) and Interpretations to Standards

      The following new standard, amendment to standard and interpretation are effective for the period under review.

      1. IFRS 16 - Leases

         IFRS 16 replaces IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases - Incentives and SIC - 27: Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, i.e. the customers ('lease') and the supplier ('lessor').

         IFRS 16 eliminates the classification of leases as operating leases or finance leases as required by IAS 17 and introduces a single lessee accounting model. Applying that model, a lessee is required to recognize:

         • Assets and Liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value; and

         • Depreciation of lease assets separately from interest on lease liabilities in the profit or loss.

           For the lessor, IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17. Accordingly, a lessor continues to classify its leases as operating leases or finance leases, and to account for those types of leases differently.

      2. Amendments to IFRS 9 Prepayment Features with Negative Compensation the amendments to IFRS 9 clarify that for the purpose of assessing whether a prepayment feature meets the Solely Payment of Principal and Interest (SPPI) condition, the party exercising the option may pay or receive reasonable compensation for the prepayment irrespective of the reason for prepayment. In other words, prepayment features with negative compensation do not automatically fail SPPI. The amendments have no impact on the Company's accounts.

      3. Amendments to IAS 28 Long-term Interests in Associates and Joint Ventures

         The amendment clarifies that IFRS 9, including its impairment requirements, applies to long term interests. Furthermore, in applying IFRS 9 to long term interests, an entity does not take into account adjustments to their carrying amount required by IAS 28 (i.e., adjustments to the carrying amount of long term interests arising from the allocation of losses of the investee or assessment of impairment in accordance with IAS 28). The amendments have no impact on the Company's accounts.

   9. Annual Improvements to IFRS Standards 2015 - 2017 Cycle

      1. IAS 12 Income Taxes

         The amendments clarify that an entity should recognize the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognised the transactions that generated the distributable profits. This is the case irrespective of whether different tax rates apply to distributed and undistributable profits.The amendments have no impact on the financial statements.

      2. IAS 23 Borrowing Costs

         The amendments clarify that if any specific borrowing remains outstanding after the related asset are ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalization rate on general borrowings. The amendments have no impact on the financial statements.

      3. IFRS 3 Business Combinations

         The amendments to IFRS 3 clarify that when an entity obtains control of a business that is a joint operation, the entity applies the requirements for a business combination achieved in stages, including re-measuring its Previously Held Interest (PHI) in the joint operation at fair value. The PHI to be remeasured includes any unrecognised assets, liabilities and goodwill relating to the joint operation. The amendments have no impact on the financial statements.

      4. IFRS 11 Joint Arrangements

         The amendments to IFRS 11 clarify that when a party that participates in, but such a joint operation, the entity does not re-measure its PHI in the joint operation. All the amendments are effective for annual periods beginning on or after 1st January 2019 and generally require prospective application. Earlier application is permitted.

         The Directors of the Company do not anticipate that the application of the amendments in the future will have an impact on the financial statements.

   10. Amendments to IAS 19 Employee Benefits Plan Amendment, Curtailment or Settlement

       The amendments clarify that the past service cost (or of the gain or loss on settlement) is calculated by

       measuring the defined benefit liability (asset) using updated assumptions and comparing benefits offered and plan assets before and after the plan amendment (or curtailment or settlement) but ignoring the effect of the assets ceiling (that may arise when the defined benefit plan is in a surplus position). IAS 19 is now clear that the change in the effect of the asset ceiling that may result from the plan amendment (or curtailment or settlement) is determined in a second step and is recognised in the normal manner in other comprehensive income.

       The paragraphs that relate to measuring the current service cost and the net interest on the net defined benefit liability (asset) have also been amended. An entity will now be required to use the updated assumptions from this measurement to determine current service cost and net interest for the remainder of the reporting period after the change to the plan. In the case of the net interest, the amendments make it clear that for the period post plan amendment, the net interest is calculated by multiplying the net defined benefit liability (asset) as remeasured under IAS 19 with the discount rate used in the remeasurement (also taking into account the effect of contributions and benefit payments on the net defined benefit liability (asset).

       The amendments are applied prospectively. They apply only to plan amendments, curtailments or settlements that occur on or after the beginning of the annual period in which the amendments to IAS 19 are first applied. The amendments to IAS 19 must be applied to annual periods beginning on or after 1st January 2019, but they can be applied earlier if an entity elects to do so.

       The Directors of the Company does not anticipate that the application of these amendments in the future will have an impact on the Company's financial statements.

   11. IFRIC 23 Uncertainty over Income Tax Treatments

       The interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12. The interpretation does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The interpretation has not impact on the Company's accounts.

   12. New Standards, Amendments and Interpretation not yet Effective

       Certain new standards, amendments to standards and interpretations have been published that are not yet effective for the financial period ended 31st October 2023 and have not been early adopted by the Company. The Company's assessment of the impact of these new standards and interpretations is as stated below:

       1. IFRS 17 - Insurance Contracts effective for Annual Periods beginning 1st January 2022

          The new Standards establish the principles for the recognition, measurement, presentation and disclosure of insurance contracts and supersede IFRS 4 Insurance Contracts. The Standard outlines a General Model, which is modified for insurance contracts with direct participation features, described as the Variable Fee Approach. The General Model is simplified if certain criteria are met by measuring the liability for remaining coverage using the Premium Allocation Approach. The General Model will use current assumptions to estimate the amount, timing and uncertainty of future cash flows and it will explicitly measure the cost of that uncertainty, it takes into account market interest rates and the impact of policy holders' options and guarantees. The implementation of the Standards is likely to bring significant changes to an entity's processes and systems, and will require much greater coordination between many functions of the business, including finance, actuarial and Information Technology.

       2. The Conceptual Framework for Financial Reporting (revised)

          The revised Conceptual Framework for Financial Reporting (the Conceptual Framework) is not a

          standard, and none of the concepts override those in any standard or any requirements in a standard. The purpose of the Conceptual Framework is to assist the Board in developing standards, to help preparers develop consistent accounting policies if there is no applicable standards in place and to assist all parties to understand and interpret the standards. It is effective for annual periods beginning on or after 1st January 2020.

   13. Measurement of Fair Values

A number of the Company's accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

Significant valuation issues are reported to the Audit Committee.

When measuring the fair value of an asset or a liability, the Company uses market observable data as far as possible. Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

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

• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices)

• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable

inputs). in some cases, if the inputs used to measure the fair value of an asset or a liability is categorized in different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarch at the end of the reporting period during which the change has occurred. Further information about the assumptions made in measuring fair value is included in Financial Instruments - Financial Risk Management and Fair Values (Note 30).

Interest expenses on bank overdrafts, related party loans, borrowings and impairment losses recognised on financial liabilities are included under finance costs of the Company.