(l) Provisions, contingent assets and contingent liabilities

Provisions are recognised only when there is a present obligation, as a result of past events, and when a reliable estimate of the amount of
obligation can be made at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best
estimates. Provisions are discounted to their present values, where the time value of money is material.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only by future events not wholly within the control of the Company or

• Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a
reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognized. However, when inflow of economic benefit is probable, related asset is disclosed.

(m) Earnings per share :

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting
attributable taxes) 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 including a bonus issue.

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 effects of all dilutive potential equity shares.

(n) Significant management judgment in applying accounting policies and estimation uncertainty :

The preparation of the Company’s financial statements requires management to make judgments, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities, and the related disclosures.

Significant management judgments and estimates

The following are significant management judgments and estimates in applying the accounting policies of the Company that have the most
s ignificant effect on the financial s tatements.

Recognition of deferred tax assets - The extent to which deferred taxassets can be recognised is based on an assessment ofthe probability of
the future taxable income against which the deferred tax assets can be utilized.

Evaluation of indicators for impairment of assets - The evaluation of applicability of indicators of impairment of assets requires assessment of
several external and internal factors which could result in deterioration of recoverable amount of the assets.

Taxes: Taxes have been paid / provided, exemptions availed, allowances considered etc. are based on the extant laws and the Company’s
interpretation of the same based on the legal advice received wherever required. These could differ in the view taken by the authorities,
clarifications issued subsequently by the government and courts, amendments to statutes by the government etc.

Classification of leases - The Company enters into leasing arrangements for various assets. The classification ofthe leasing arrangement as a
finance lease or operating lease is based on an assessment of several factors, including, butnot limited to, transfer of ownership of leased asset
at end of lease term, lessee’s option to purchase and estimated certainty of exercise of such option, proportion oflease termto the asset’s
economic life, proportion of present value ofminimum leasepayments to fair value of leased asset and extent ofspecialized nature of the leased
asset.

Recoverability of advances/receivables - At each balance sheet date, based on historical default rates observed over expected life, the
management assesses the expected credit loss on outstanding receivables and advances.

Defined benefit obligation (DBO) - Management’s estimate of the DBO is based on a number of critical underlying assumptions such as
standard rates ofinflation, medical cost trends, mortality, discount rate and anticipation offuture salary increases. Variation in these assumptions
may significantly impact the DBO amount and the annual defined benefit expenses.

Fair value measurements - Management applies valuation techniques to determine the fair value of financial instruments (where active market
quotes are not available). This involves developing estimates and assumptions consistent with how market participants would price the
instrument. Management uses the best information available. Estimated fairvalues may vary fromthe actual prices that would be achieved in an
arm’s length transaction at the reporting date

Useful life ofproperty, plant and equipment and intangible assets: The Company has estimated useful life ofthe Property Plant and Equipment as
specified in Schedule II to the Companies Act, 2013. Howeverthe actual usefullife for individual equipments could turn out to be different, there
could be technology changes, breakdown, unexpected failure leading to impairment or complete discard. Alternately the equipment may continue
to provide useful service well beyond the useful life assumed.

(o) Revenue recognition

Interest and dividend :

Interest income is recognised on an accrual basis using the effective interest method. Dividends are recognised at the time the right to receive the
payment is established. Other income is recognised when no significant uncertainty as to its determination or realisation exists.

(p) Revenue from contract with customers

Ind AS 115 was issued on 28 March 2018 and establishes a five- step model to account for revenue arising from contract with customers. The
new revenue standard will supersede all current revenue recognition requirements under Ind AS. The Company has adopted the new standard
will supersede all current revenue recognition requirements under Ind AS. The Company has adopted the new standard for annual periods
beginning on or after 1st April, 2018 using the cumulative catch up method. However there is no obligation on the part of the Company for
determining transaction price from the customers.

The Company derives revenues primarily fromsale ofmanufactured goods, traded goods and related services. The Company is also engaged in
real estate property development, recently.

Effective 01 April 2018, the Company has adopted Indian Accounting Standard 115 (Ind AS 115) -’Revenue from contracts with customers’ using
the cumulative catch-up transition method, applied to contracts that were not completed as on the transition date i.e. 01st April 2018.
Accordingly, the comparative amounts ofrevenue and the corresponding contract assets / liabilities have not been retrospectively adjusted. The
effect on adoption of Ind-AS 115 was insignificant.

The core principle ofInd AS 115 is that an entity should recognise revenue to depict the transfer ofpromised goods or services to customers in
an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Specifically, the
standard introduces a 5-step approach to revenue recognition:

Revenue is recognized on satisfaction ofperformance obligation upon transfer ofcontrol ofproducts to customers in an amount that reflects the
consideration the Company expects to receive in exchange for those products.

Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligation in contract
Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation

Under Ind AS 115, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e. when ‘control’ of the goods orservices
underlying the particular performance obligation is transferred to the customer. The Company has completed its evaluation of the possible impact
of Ind AS 115 and has adopted the standard from 1st April, 2018.

Interest Income :

Interest income is recognised on an accrual basis using the effective interest method.

Dividend

Dividends are recognised at the time the right to receive the payment is established.
q) Leases :

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low value assets.
The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets

The Company recognises right-of-use asset representing its right to use the underlying asset for the lease termat the lease commencement date.
The cost ofthe rightof- use asset measured at inception shall comprise ofthe amount ofthe initial measurement ofthe lease liability adjusted for
any lease payments made at or before the commencement date plus any initial direct costs incurred and an estimate ofcosts to be incurred by the
lessee in dismantling and removing the underlying asset or restoring the underlying asset which it is located. The right-of- use assets is
subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of
the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease
term or useful life of rightof- use asset. The estimated useful lives of right-of-use assets are determined on the same basis as those ofproperty,
plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be
recoverable. Impairment loss, if any, is recognised in the Statement of Profit and Loss.

Leases where the lessor effectively retains substantially all the rights and benefits ofownership ofthe leased assets are classified as operating
leases. At the date of commencement oflease the Company recognizes a right-of-use asset (ROU) and a corresponding lease liability for all lease
arrangements in which it is a lease except for leases with a termoftwelve months or less and lowvalue leases. For these short termand lowvalue
leases the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

The right to use assets are initially recognized at cost which comprises initial amount ofthe lease liability adjusted for any lease payment made at
or prior to the date of the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured
at cost less accumulated depreciation and impairment losses.

Right-to- use assets are depreciated from the commencement date on straight line basis over lesser of the lease period or the useful life of the
asset.

Lease liability is initially measured at amortized cost at the present value ofthe future lease payments. The lease payments are discounted using
the interest rate implicit in the lease or, if not readily determinable using the incremental borrowing rate for the Company.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The
lease payments are discounted using the interest rate implicit in the leases if that rate can be readily determined.

Defined Benefit Plan :

Gratuity and Leave Encashment:

The Company makes partly annual contribution to the Employees' Group Gratuity-cum-Life Assurance Scheme of the Life
Insurance Corporation of India, a funded benefit plan for qualifying employees. The scheme provides for lump sum payment
to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15
days service for each completed year of service or part thereof depending on the date of joining. The benefit vests after five
years of continuous service.

The Company’s risk management is carried out by a central treasury department of the Company under policies approved by the Board of
Directors. The Board of Directors provide written principles for overall risk management, as well as policies covering specific areas, such as
foreign exchange risk, interest rate risk, market risk, credit risk and investment of excess liquidity.

A) Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due to the Company causing
financial loss. It arises from cash and cash equivalents, deposits with banks and financial institutions, security deposits, loans given and
principally from credit exposures to customers relating to outstanding receivables. The Company’s maximumexposure to credit riskis limited to
the carrying amount of financial assets recognised at reporting date.

The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and
incorporates this information into its credit riskcontrols. Where available at reasonable cost,external credit ratings and/orreports oncustomers
and other counterparties are obtained and used. The Company’s policy is to deal only with creditworthy counterparties.

In respect of trade and other receivables, the Company is not exposed to any significant credit riskexposure to any single counterparty or any
company ofcounterparties having similarcharacteristics. Trade receivables consist ofa large numberofcustomers in various geographicalareas.
The Company has very limited history of customer default, and considers the credit quality of trade receivables that are not past due or impaired
to be good.

The credit risk for cash and cash equivalents, mutual funds, bank deposits, loans and derivative financial instruments is considered negligible,
since the counterparties are reputable organizations with high quality external credit ratings.

Company provides for expected credit losses on financial assets by assessing individual financial instruments for expectation of any credit
losses. Since the assets have very low credit risk, and are forvaried natures and purpose, there is no trend that the company can draws to apply
consistently to entire population. Forsuch financialassets, the Company’s policy is to provides for 12 month expected credit losses upon initial
recognition and provides for lifetime expected credit losses upon significant increase in credit risk. The Company does not have any expected
loss based impairment recognised on such assets considering their low credit risk nature, though incurred loss provisions are disclosed under
each sub-category of such financial assets.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an
adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility
in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company’s liquidity position and cash and cash equivalents on the basis of expected cash flows.
The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company’s liquidity management policy
involves projecting cash flows in major currencies and considering the level ofliquid assets necessary to meet these, monitoring balance sheet
liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

C) Market risk - foreign exchange

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to US Dollar. Foreign
exchange risk arises from recognised assets and liabilities denominated in a currency that is not the Company’s functional currency. The
Company, as per its overall strategy, uses forward contracts to mitigate its risks associated with fluctuations in foreign currency, and such
contracts are not designated as hedges under Ind AS 109. The Company does not use forward contracts and swaps for speculative purposes.

Sensitivity

The company is now not exposed to foreign exchange risk as it has closed its foreign exchnge exposure.

D) Interest rate risk
i) Liabilities

The Company’s policy is to minimize interest rate cash flow riskexposures on long-termfinancing. At31 March 2025 the Company is not exposed
to changes n market interest rates as there are no bank borrowings availed by the Company.

Interest rate risk exposure

Below is the overall exposure of the Company to interest rate risk:

Sensitivity

The sensitivity to profit or loss in case of a reasonably possible change in interest rates of /- 50 basis points (previous year: /- 50 basis points),
keeping all other variables constant, would have resulted in an impact on profit by ' 4.35 lakhs ( previous year profits by ' 2.10 lakhs).

ii) Assets

The Company’s financial assets are carried at amortized cost and are at fixed rate only. They are, therefore, not subject to interest rate risksince
neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

E) Price risk

Exposure from investments in mutual funds:

The Company’s exposure to price risk arises from investments in mutual funds held by the Company and classified in the balance sheet as fair
value through profit or loss. To manage its price risk arising from investments in mutual funds, the Company diversifies its portfolio.
Diversification of the portfolio is done in accordance with the limits set by the Company.

Sensitivity

The sensitivity to profit or loss in case of an increase in price ofthe instrument by 5% keeping all othervariables constant would have resulted in
an impact on loss by ' 32.01 lakhs (previous year profit by '33.04 lakhs).

Exposure from trade payables:

The Company’s exposure to price risk also arises from trade payables of the Company that are at unfixed prices, and, therefore, payment is
sensitive to changes in gold prices. The option to fixgold prices are classified in the balance sheet as fairvalue through profit or loss. The option
to fix gold prices are at unfixed prices to hedge against potential losses in value of inventory of gold held by the Company.

The Company applies fair value hedge for the gold purchased whose price is to be fixed in future. Therefore, there will no impact of the
fluctuation in the price of the gold on the Company’s profit for the period.

Note 27 - Capital Management:

The Company’ s capital management objectives are:

to ensure the Company’s ability to continue as a going concern

to provide an adequate return to shareholders

The Company monitors capital on the basis of the carrying amount of equity less cash and cash equivalents as presented on the face of
balance sheet.

The Management assesses the Company’s capital requirements in order to maintain an efficient overall financing structure while avoiding
excessive leverage. This takes into account the subordination levels of the Company’s various classes of debt. The Company manages the
capital structure and makes adjustments to it in the light of changes in the economic conditions and the risk characteristics of the underlying
assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital
to shareholders, issue new shares, or sell assets to reduce debt.

Note 31 - Contingent Liabilities Not Provided For:

The Company does not have Contingent Liability at the end of the year.

Note 32 Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for any Benami property.

(ii) The Company does not have any transaction with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

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

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

(b) provide any guarantee, s ecurity or the like to or on behalf of the Ultimate Beneficiaries

(vii) 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 Group shall:

(a) 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

(b) provide any guarantee, s ecurity or the like on behalf of the Ultimate Beneficiaries,

(viii) The Company has not any such transaction which is not recorded in the books of accounts 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

Note 33 - The previous year's figures have been regrouped and rearranged wherever necessary to make in compliance with the current
financial year.

For Pulindra Patel & Co. For and on behalf of the Board Directors

Chartered Accountants Caprolactam Chemicals Limited

ICAI Firm Registration No. 115187W

Pulindra Patel Dolly Dipesh Shah Mrs. Z. S. Bhanushali Mr. S. S. Bhanushali

Proprietor Company S e cretary Managing Director Director

Mem No. : 048991 MNo:- A38116 DIN- 00663374 DIN- 01721586

UDIN : 25048991BMIBFD1753

Place : Mumbai Place: Mahad

Date : 30/05/2025 Date : 30/05/2025