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, if there 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, 2025 is INR 22.52 Lakhs (As at March 31,2024 : INR 16.95
Lakhs . Rate of interest as on March 31,2025 varies from 8.30% to 9.10%.

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, 2025 is INR 28.93 Lakhs (As at March 31,2024 : INR 34.95
Lakhs . Rate of interest as on March 31,2025 is 9.50%.

^A Unsecured Loan from Financial Institution

Loan includes Dropline Overdraft repayable in 61 monthly installments commencing from August 1, 2024. Loan outstanding as
on March 31, 2025 is INR 27.37 Lakhs (As at March 31,2024 : 'Nil' .Rate of interest as on March 31,2025 is 17.00%.

33 Corporate Social responsibility (CSR)

Provisions of Section 135 of Companies Act, 2013 are not applicable on the company. Hence, no provision for CSR expense has been made
during the year (March 31,2024: NIL)

34 Payable to Micro, Small and medium Enterprises

The Company has no amounts payable to Micro and Small Enterprises as defined in section 7(1) of the Micro,Small and Medium Enterprises
Development Act, 2006, to the extent such parties have been identified on the basis of information collected by the Management. This has been
relied upon by the auditors.

Notes

EBIT - Earnings before interest and taxes

PBIT - Profit before interest and taxes including other income.

EBITDA - Earnings before interest, taxes, depreciation and amortisation.

PAT - Profit after taxes.

Debt includes current and non-current lease liabilities

Net worth includes Shareholder capital and reserve and surplus

Net sales means revenue from operations

Capital employed refers to total shareholders' equity and debt.

39 Acqusition of M/s Goyal Rubber

During the period, the company acquired M/s Goyal Rubber effective April 15,2022 for a consideration of INR 2,14,00,000.As a result of this
transaction, intangible assets consisting of Goodwill of INR 15,35,384 has been recognized in the financial statements of the company during
the period.

40 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’.

41 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.

(e) The company does not have any working capital facilities in excess of INR 5.00 crores from Bank or Financial Institutions during the
period ended March 31,2023.

(f) The Company did not enter transactions in Cryptocurrency or Virtual currency during the period ended March 31,2023.

(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 31,2023.

GAYATRI RUBBERS AND CHEMICALS LIMITED
Notes to the Financial Statements

(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 offunds) 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.

42 The company was incorporated on March 31,2022. The figures for the previous year have not been given as this is the first year of operations
of the company since its incorporation. The period of the above financial statements is from 31/03/2022 to 31/3/2023.

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

Praveen Kumar Jain Shilp Chotai Manoj Kumar Aggarwal

Partner Director Director

Membership Number : 082515 DIN: 09557130 DIN: 09557129

UDIN: 25082515BMLILL7860 Utsav Chotai Roli Jain

Director & Chief Financial Officer (CFO) Company Secretary

Place: Faridabad DIN: 09557131 Membership Number : A57209

Date : May 29, 2025