*) Provisions and Contingent Liabilities:

Provision ore recognized (tor liabilities that can be measured by using a substantial degree of estimation) when:

a) the company has a present obligation as a result of a past event:

b) it is probable that outflow of resources embodying economic benefits is expected to settle the obligation; and

c) the amount of the obligation can be reliably estimated

Contingent liability arc diScUssed in the notes in case there iS:

i) Possible obligation that arises from past events and existence of which will be confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly nothin the control of the enterprise: or

ii) a reliable estimate of the amount of the obligation cannot be made.

a present obligation arising from past events but is not recognized

i) when it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

ii) a reliable estimate of the amount of the obligation cannot be made.

fju ^irkmji Cj|L|ta | Bgnnwin&s

1 As per I1DFC Bank Sanction Letter dated 26.06.2024, an Amount of Rs. 2241.69 Lakhs was sanctioned to Pentagon Rubber Limited. Out of
the said amount. Rs. 1550 Lakhs was sanctioned against Cash Credit facility lor working capital needs of the company. Amount of Rs. 37
Lakhs was sanctioned against C'.F.CL and Balance amount of Rs. 654,69 Lakhs was against Bank Guarantees, Corporate Cards and Letter of

C rnrtiK

As per HDFC Bank Sanction Letter dated 1)7.10.2024, an Amount of Rs.3W7.50 Lakhs was sanctioned to Pentagon Rubber Limited at KOI of
9,30% p.a. Said Loan is secured by way of exbmtion of charge on Primary anti Collateral Securities
Primary Security:

CC limit and GECL are secured bv wav of hypothecation of Stocks of Raw materials. Stock in process. Finished Goods. Stores and spares
Book Debts, FDR with HDFC Bank and FDR against Bank Guarantee.

Collateral Security

Equitable Mortgage of Industrial Property of the Company situated at Village Behtra, Handsera road. Village Behra, Dera Hassi, DLst.
Mohull, Punjab-140507 and Personal guarantee of the Directors of the company

2 Sanctioned CHS I unit for Rs, 300 Lakhs From Axis Hank in secured by way of equitable mortagage of Residential Property located at House
No. 515P. Scitor Panchkula in the name of Sh Siibhash Join L/o ot Sh Adiish lain (Managing l>in.'i:inrl It is secured by way of Personal
Guarantee of oil the Directors of the Company and Sh Subhash lain.

3 An Ammmt of Tfs 110.00 Lakhs was sanctioned from National Small Industries Corporation Limited for raw material assistance and secured
by wav of hypothecation of hank Guarantee of !<Ý• 1.10 Crore*.

for Term Loans

4 Term I Xian against Machinery wa« sanctioned by SIDB1 on 13.12.2023 for Rs. 810 Lakhs. Out ol Rs. rt 10 Lakhs Amount of Rs. 738 78 I oklis
ha> lieen disbursed by SlDBI till 31.03.2024. Loan is Repayable in 34 installments of R>1500000 per month » 7-8"» pa starting from
10.IW.2024.

Primary Security:

first charge by way of hypothecation in tavout ol S1D1II on all the movables ol the company including Plant & Machinery, Equipment.
Miscellaneous Fixed Assets. Machinery Spares, Tool* & Accessories, elc aquixed/to be acquired under the Project.

Collateral Security

I irsr Charge by way ot pledge of FDR ot Rs. 225 I a kits lien marked to $11 >1*1

8) Defined Benefit Plans
Gratuity scheme

The amount of gratuity has been computed based on respective employee's salary and the years of employment with the Company Gratuity has been accrued based
on actuarial valuation as at balance sheet date, earned out by ar. Independent actuary
O Compensated Absences

Compensated absences include earned leaves. Company has the polrry of adjusting earned leaves with holidays taken by employe**. II earned leaves remains after
adjusting holidays then the same is paid to employees at year end itself. At year end. all earned leaves were adjusted with holidays taken by employees and no
payable was there as leave encashment
D)Bonus

Statutory Bonus is calculated and recognised in Books or Acaunts as p?i Payment of Bonus Act 19&5 and rules made thereunder. Considering the eligibility criteria
and other statutory requirements bonus payable to employees is calculated and paid.

The following tables set out the disclosures in reaped of the post-employment benefits and long term employee benefit recognised in Statement of Profit and
loss and Balance Sheet in accordance with Accounting Standard (AS) 15 are as under.

Remarks for more than 25% change in ratios of financial year 2024-25 as compared to financial year 20IV24.

1 This ratio has decreaed as Compared to previous year, on account of decrease in profitability and increase of Short Term Bocuwings
- Fhis ratio has decreased as compared to previous year, on account of decrease in Profitability in I V 2(124-15

3 This ratio has decreased as compared to previous year, on account of decrease in Turnover in FY 2024-15.

4 This ratio has increased as compared to previous year, on account ot payment of Trade Payables as on .51.03.2025.

5 This ratio has decreased as compared to previous year, on account of decrease in Turnover and Profitability In FY 2024-25.

b This ratio has decreased as compared tn previous year, on jccount of decrease in Turnover and Profitability and increase in Short Term Borrowings in FY 2024-25.
7 Tliis ratio has decreased as compared tn previous year, on account nf decrease in Turnover and Profitability in FY 2P24-25,

43 Tin? company did nnl have any long brim contracts including derivative- contracts for which there were any material foreseeable fosses.

44 Then' are no amounts that are due to be transferred to the Investor Protection Fund in accordance with relevant provisions of the Companies Act 2013 and rules
made thereunder.

45 l"he Code on Social Secuiit), 2020 ('Code') relating to employee benefits during employment and post- employment benefits has been notified in the Official
Gazette an 29th September 2020. Hie draft rules have been released on November 13, 2020 and suggestions have been invited from stakeholders which arc
under consideration by the Ministry. The impact ol Ilu- change will be assessed and accounted in the period in which said rules are notified for implementation

46 IT»e company does not have any Benami property, where any proceeding have been initiated or pending against the company for holding any benami properly
under the Benami Transactions (Prohibition) Act, 1%H (45 of 1988).

47 Die company has not been declared .w wilful defaulter by any bank or financial Institution or oilier lender.

48 Hie company does not have any transactions with companies struck oft under section 24b o: the Companies Act. 2013 or section sftil of Companies Act, 1W

49 Tlie Company does noi have any such transactions whkh is not recorded in the hooks of accounts that has been surrendered or disclosed as Income during the
year in the tax assessments under the Income Tax Act. I%1 (such a«. search or survey or any other relevant provisions of the Income Tax Act, 1%I).

50 Hie company has not advanced or loaned or Invested funds leilher from borrowed funds or share premium or any other sources or kind of funds) by the
company to or in any other pcrsonls) or entity(ies), including foreign ratifies ("Intermediaries') with the understanding (whether recorekd in writing or
Otherwise) that the Intermediary shall.

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

b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

51 The company has not received any fund from any person o; entity .including foreign entities ( Funding parties) with the understanding (whcthiT recorded in
writing or otherwise) that the company shall.

a) directly or indirectly lend or invest in other person or entities identified in any manner whatsoever by or on behalf of the funding party (Ultimate Beneficiaries)
or

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries-

Annual Report 2024*25