2.6 Provisions and Contingencies

A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that
an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.
Provisions are not discounted to its present value and are determined based on best estimate required to settle the
obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current
best estimates.

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

2.7 Intangible Assets

Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business
combination that are not individually identified and separately recognized.

Goodwill is initially measured at cost, being the excess of the consideration transferred over the net identifiable assets
acquired and liabilities assumed.

Goodwill is considered to have indefinite useful life and hence is not subject to amortization but tested for impairment
at least annually. After initial recognition, goodwill is measured at cost less any accumulated impairment losses.

For the purpose of impairment testing, goodwill acquired in a business combination, is from the acquisition date,
allocated to each of the Company’s cash generating units (CGUs) that are expected to benefit from the combination.

A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash
inflows from other assets or group of assets. Each CGU or a combination of CGUs to which goodwill is so allocated
represents the lowest level at which goodwill is monitored for internal management
purpose and it is not larger than an operating segment of the Company.

A CGU to which goodwill is allocated is tested for impairment annually, and whenever there is an indication that the
CGU may be impaired, by comparing the carrying amount of the CGU, including the goodwill, with the recoverable
amount of the CGU. If the recoverable amount of the CGU exceeds the carrying amount of the CGU, the CGU and the
goodwill allocated to that CGU is regarded as not impaired. If the carrying amount of the CGU exceeds the
recoverable amount of the CGU, the Company recognizes an impairment loss by first reducing the carrying amount of
any goodwill allocated to the CGU and then to other assets of the CGU pro-rata based on the carrying amount of each
asset in the CGU.

2.8 Property, Plant and Equipment

Property, Plant and Equipment are carried at cost less accumulated depreciation / amortisation and impairment losses,
if any. Acquisition Cost comprises its purchase price net of any trade discounts and rebates, any import duties and
other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure
on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to
acquisition of qualifying fixed assets up to the date the asset is ready for its intended use. Subsequent expenditure on
fixed assets after its purchase / completion is capitalised only if such expenditure results in an increase in the future
benefits from such asset beyond its previously assessed standard of performance.

Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets which are arrived at cost
are recognised in the Statement of Profit and Loss.

Depreciation has been provided in accordance with useful lives prescribed in the Companies Act, 2013 on Written
Down Value method.

Depreciation on fixed assets has been provided on written down value method in accordance with the manner
specified in Schedule II of the Companies Act, 2013.

2.9 Cash and Cash Equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an
original maturity of three months or less from the date of acquisition), highly liquid investments that are readily
convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.10 Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profit before extraordinary items and tax
is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future cash receipts
or payments. The cash flows from operating, investing and financing activities of the Company are segregated based
on the available information.

2.11 Taxes on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the
applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting
income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is
measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax assets are recognised for timing differences of items
other than unabsorbed depreciation and carry forward losses only to the extent that reasonable certainty exists that
sufficient future taxable income will be available against which these can be realised. However, ifthere is unabsorbed
depreciation and carry forward of losses and items relating to capital losses, deferred tax assets are recognised only if
there is virtual certainty supported by convincing evidence that there will be sufficient future taxable income available
to realise the assets. Deferred tax assets are reviewed at each balance sheet date for their realisability.

2.12 Earnings per Share

Basic earnings per share is computed by dividing the net profit / (loss) after tax by the weighted average number of
equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit / (loss)
after tax as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential
equity shares, by the weighted average number of equity shares

considered for deriving basic earnings per share and the weighted average number of equity shares which could have
been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive
only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations.
Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been
issued at a later date. Dilutive potential equity shares are determined independently for each period presented. The
number of shares and potentially dilutive

equity shares are adjusted retrospectively for all periods presented in case of share splits.

* Term Loan from bank are secured as follows:

Vehicle Loans were secured by way of hypothecation of respective vehicle and repayable in 39-60 monthly installments
commencing from May 7, 2023. Loan outstanding as on March 31, 2026 is INR 29.91 Lakhs (As at March 31,2025 : INR
22.52 Lakhs . Rate of interest as on March 31,2025 varies from 8.30% to 9.50%.)

Machinery Loan were secured by way of hypothecation of respective Machinery and repayable in 61 monthly installments
commencing from January 7, 2024. Loan outstanding as on March 31, 2026 is INR 22.28 Lakhs (As at March 31,2025 : INR
28.93 Lakhs . Rate of interest as on March 31,2025 is 9.50%. )

^A Unsecured Loan from Financial Institution

Loan includes Dropline Overdraft repayable in 36 monthly installments commencing from August 1, 2024. Loan outstanding
as on March 31, 2026 is INR 15.65 Lakhs (As at March 31,2025 : INR 27.37 .Rate of interest as on March 31,2026 is
17.00%. )

38 Segment Reporting

The Company is in business of Manufacturing and Trading of Rubber Products and hence there is only one reportable segment as per ‘AS 17 :
Segmenting Reporting’.

39 Additional Regulatory Information

(a) The Company has not been declared a wilful defaulter by any bank or financial institution or consortium thereof in accordance with the guidelines
on wilful defaulters issued by the RBI.

(b) There are no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition)
Act, 1988 (45 of 1988) and rules made thereunder.

(c) There is no charge or satisfaction of charge which is yet to be registered with Registrar of Companies (ROC) beyond the statutory period.

(d) The Company do not have any transaction not recorded in the books of accounts that has been surrendered or not disclosed as income during the
period in the tax assessments under the Income Tax Act, 1961.

(f) The Company has been sanctioned working capital limits in excess of ? 5.00 crore, in aggregate, during the year, from banks or financial
institutions on the basis of security of current assets during the financial years ended March 31,2026.The quarterly returns /statements filed by the
company with such banks are in agreement with the books of accounts of the Company.

(f) The Company did not enter transactions in Cryptocurrency or Virtual currency during the period ended March 31,2026.

(g) The company does not have any relationship with companies struck off (as defined by Companies Act, 2013) and did not enter into transactions
with any such company for the period ended March 31,2026.

(h) No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or
share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities
(“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, directly or indirectly lend or invest in
other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.

(i) No funds (which are material either individually or in the aggregate) have been received by the Company from any persons or entities, including
foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

In terms of our report attached

For VAPS & Co. For and On Behalf of

ICAI Firm Registration Number : 003612N Gayatri Rubbers and Chemicals Limited

Chartered Accountants

^Sd/- Sd/- Sd/-

Praveen Kumar Jain Shilp Chotai Manoj Kumar Aggarwal

Partner Director Director

Membership Number : 082515 DIN: 09557130 DIN: 09557129

UDIN: 26082515FFNCRU7719

Sd/- Sd/-

Place:Faridabad Utsav Chotai Roli Jain

Date :April 30,2026 Director & CFO Company Secretary

DIN: 09557131 Membership No : A57209