2. Material Accounting Policy Information:
(a) Statement of Compliance:
(i) These financial statements have been prepared in accordance with Indian Accounting Standards ("Ind AS") as per
the Companies (Indian accounting standard) Rules, 2015 as amended and notified under section 133 of the Companies
Act, 2013 (the "Act") and other relevant provisions of the Act.
(ii) The aforesaid financial statements have been approved by the Board of Directors in the meeting held on 29 May,
2025.
(iii) These financial statements are prepared and presented in Indian Rupees and rounded-off to the nearest rupees in
Lakhs, except when otherwise stated.
(iv) The Company's financial statements for the year ended 31 March, 2025 were prepared in accordance with Ind AS
notified under companies (Indian accounting standards) Rules, 2015 (as amended from time to time) and presentation
requirements of Division II of Schedule III to the Act, (Ind AS compliant Schedule III), as applicable to the Company
and other relevant provisions of the Act.
(b) Basis of preparation and presentation:
(i) These financial statements have been prepared and presented on the accrual basis of accounting under historical
cost convention or fair values as per the requirement of Ind AS prescribed under section 133 of the Act.
(ii) Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable or
estimated using another valuation technique in estimating the fair value of an asset or a liability.
(iii) All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle
or 12 months or other criteria as set out in the Schedule III to the Companies Act 2013. Based on the nature of its
business, the Company has ascertained its operating cycle to be 12 months for the purpose of current and non¬
current classification of assets and liabilities.
(c) Revenue Recognition:
(i) Revenue from contracts with customers is recognised when control of the goods or services are transferred to the
customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for
those goods or services. The Company has generally concluded that it is the principal in its revenue arrangements,
except for the agency services below, because it typically controls the goods or services before transferring them to
the customer.
Sales of goods
(ii) Revenue from sale of goods is recognised at the point in time when control of the goods is transferred to the
customer, generally on delivery of the goods. The normal credit term is 30 to 90 days upon delivery.
(iii) The Company considers whether there are other promises in the contract that are separate performance obligations
to which a portion of the transaction price needs to be allocated (e.g., warranties, customer loyalty points). In
determining the transaction price for the sale of goods, the Company considers the effects of variable consideration,
the existence of significant financing components, noncash consideration, and consideration payable to the customer
(if any).
Variable consideration
(iv) If the consideration in a contract includes a variable amount, the Company estimates the amount of consideration to
which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated
at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of
cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is
subsequently resolved. Some contracts for the sale of bearings and components provide customers with a right of
return the goods within a specified period. The Company also provides retrospective volume rebates to certain
customers once the quantity of goods purchased during the period exceeds the threshold specified in the contract.
The rights of return and volume rebates give rise to variable consideration.
Rights of return
(v) The Company uses the expected value method to estimate the variable consideration given the large number of
contracts that have similar characteristics. The Company then applies the requirements on constraining estimates of
variable consideration in order to determine the amount of variable consideration that can be included in the transaction
price. A refund liability is recognized for the goods that are expected to be returned (i.e., the amount not included in
the transaction price). A right of return asset (and corresponding adjustment to cost of sales) is also recognised for
the right to recover the goods from a customer.
Volume rebates
(vi) The Group applies the most likely amount method or the expected value method to estimate the variable consideration
in the contract. The selected method that best predicts the amount of variable consideration is primarily driven by
the number of volume thresholds contained in the contract. The most likely amount is used for those contracts with
a single volume threshold, while the expected value method is used for those with more than one volume threshold.
The Group then applies the requirements on constraining estimates in order to determine the amount of variable
consideration that can be included in the transaction price and recognised as revenue. A refund liability is recognised
for the expected future rebates (i.e., the amount not included in the transaction price).
Interest
(vii) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable
interest rate. Interest income is included under the head "other income" in the statement of profit and loss.
Windmill energy income
(viii) Consideration for electricity generated by the windmill division and fed into the state power grid is received in the
form of credit in the manufacturing division's power bill. Credits are recognised as income net of wheeling charges.
Income so recognised is shown separately from the power cost under Other operating revenue
(ix) Units generated but not immediately consumed are carried forward as an asset in the books of account, representing
accumulated units. These accumulated units are expected to be utilized in the future against the electricity consumption
of the Company's manufacturing division. Such accumulated units are recorded at their estimated realizable value,
determined based on the applicable tariff rates. Income is recognized only when the electricity units are generated
and available for use within the Company.
(d) Property, plant and equipment:
(i) The cost of property, plant and equipment comprises its purchase price, 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, including relevant borrowing costs for qualifying assets and any expected costs of
decommissioning, net of any trade discounts and rebates. Expenditure incurred after the property, plant and equipment
have been put into operation, such as repairs and maintenance, are charged to the Statement of profit and loss in
the period in which the costs are incurred unless such expenditure results in a significant increase in the future
benefits of the concerned asset.
(ii) An item of property, plant and equipment is derecognized upon disposal or on retirement, when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or
retirement of an item of property, plant and equipment is determined as the difference between the net sale proceeds
and the carrying amount of the asset and is recognized in statement of profit and loss.
(iii) Property, plant and equipment are stated in the balance sheet at cost less accumulated depreciation and accumulated
impairment losses, if any
(iv) The company has elected to continue with the carrying value for all of its property, plant and equipment as recognized
in the financial statements as at the date of transition to Ind AS i.e. 1 April-2016, measured as per the previous
GAAP and use that as its deemed cost as at the date of transition.
(v) Depreciation commences when the assets are ready for their intended use. Depreciable amount for assets is the
cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation is recognized
so as to write off the cost of assets (other than properties under construction) less their residual values over their
useful lives, using straight-line method as per the useful life prescribed in schedule II to the Act. In respect of
additions to property, plant and equipment, depreciation has been charged on pro rata basis.
(vi) The company reviews the residual value, useful lives and depreciation method annually and, if current estimates differ
from previous estimates, the change is accounted for as a change in accounting estimate on a prospective basis.
(e) Intangible Assets:
(i) Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization
and accumulated impairment losses. Amortization is recognized on a Straight-line basis over their estimated useful
lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the
effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful
lives that are acquired separately are carried at cost less accumulated impairment losses.
(ii) An item of intangible assets is derecognized upon disposal or when no future economic benefits are expected from
its use or disposal. Any gain or loss arising on recognition of the asset is included in the statement of profit or loss
when the asset is derecognized.
(iii) For transition to Ind AS, the company has elected to continue with carrying value of all its intangible assets recognized
as of 1 April 2016 (transition date) measured as per the previous GAAP as per the previous GAAP and use that
carrying value as its deemed cost as of transition date.
(iv) Intangible Assets amortized as follows:
(a) Trademark is amortized over the useful life estimated by the management. Over a period of 50 years.
(b) Computer Software is amortized over the useful life estimated by the management. Over a period of 5 years.
(f) Impairment of Property, plant and equipment and Intangible assets
(i) At the end of each reporting period, the Company reviews the carrying amounts of its Property, Plant and Equipment
and intangible assets to determine whether there is any indication that those assets have suffered an impairment
loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent
of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of individual assets, the
Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a
reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual
cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a
reasonable and consistent allocation basis can be identified.
(ii) Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment
at least annually, and whenever there is an indication that the asset may be impaired.
(iii) Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset for which the estimates of future
cash flows have not been adjusted.
(iv) If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than it's carrying amount, the
carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is
recognized immediately in the statement of Profit and Loss, unless the relevant asset is carried at a revalued
amount, in which case the impairment loss is treated as a revaluation decrease.
(v) Any reversal of the previously recognized impairment loss is limited to the extent that the asset's carrying amount
does not exceed the carrying amount that would have been determined if no impairment loss had previously been
recognized.
(g) Leases:
(i) The company assesses at contract inception whether a contract is, or contains, a lease, that is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Where the company is lessee
(ii) Company's leased assets comprise of lands. 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
Right-of-use assets
(iii) The company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment
losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of
lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement
date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the lease
term and the estimated useful lives of the assets, The right-of-use assets are also subject to impairment. Refer to the
accounting policies in section F Impairment of property, plant and equipment and intangible assets.
Lease liabilities
(iv) At the commencement date of the lease, the company recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. The lease payments include fixed payments (including in substance
fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate,
and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise
price of a purchase option reasonably certain to be exercised by the company and payments of penalties for terminating
the lease, if the lease term reflects the company exercising the option to terminate. Variable lease payments that do
not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the
period in which the event or condition that triggers the payment occurs.
(v) In calculating the present value of lease payments, the company uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement
date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments
made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the
lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index
or rate used to determine such lease payments) or a change in the assessment of an option to purchase the
underlying asset
Short-term leases and leases of low-value assets
(vi) The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that
have a lease term of 12 months or less from the commencement date with no option for extension and do not contain
a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered
to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on
a straight-line basis over the lease term.
(h) Inventories:
(i) Inventories are stated at lower of cost and net realizable value. Cost comprises of purchase price, applicable
taxes not eligible for credit, less rebates and discounts. Net realizable value is the estimated selling price in
the ordinary course of business less the estimated costs of completion and the estimated costs necessary to
make the sale.
(ii) Stores and spares which do not meet the definition of property, plant and equipment are accounted as
inventories.
(iii) Cost is determined on the basis of,
(i) Employee Benefits:
(i) In respect of defined contribution plan the company makes the stipulated contributions to provident fund and
pension fund, in respect of employees to the respective authorities under which the liability of the company is
limited to the extent of the contribution. and are recognised in statement of profit and loss.
(ii) The liability for gratuity, considered as defined benefit, is determined actuarially using the projected unit credit
method, with actuarial valuations being carried out at the end of each annual reporting period. Re-measurement,
comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the
return on plan assets (excluding interest), is reflected immediately in the statement of financial position with a
charge or credit recognized in other comprehensive income in the period in which they occur. Re-measurement
recognized in other comprehensive income is reflected immediately in retained earnings and will not be
reclassified to profit or loss. Past service cost is recognized in period of a plan amendment. Net interest is
calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or
asset. Defined benefit costs are categorized as follows:
(a) Service cost (including current service cost, past service cost, as well as gains and losses on curtailments
and settlements);
(b) Net interest expense or income; and
(c) Re-measurement
(iii) The Company presents the first two components of defined benefit costs in profit or loss in the line-item
Employee benefits expenses. Curtailment gains and losses are accounted for as past service costs.
(iv) The retirement benefit obligation recognized in the statement of financial position represents the actual deficit
or surplus in the Company's defined benefit plans. Any surplus resulting from this calculation is limited to the
present value of any economic benefits available in the form of refunds from the plans or reductions in future
contributions to the plans.
(v) A liability for a termination benefit is recognized at the earlier of when the entity can no longer withdraw the
offer of the termination benefit and when the entity recognizes any related restructuring costs.
(vi) A liability is recognized for benefits accruing to employees in respect of wages and salaries, annual level and
sick leave in the period the related service is rendered at the undiscounted amount of the benefits expected to
be paid in exchange for that service. Liabilities recognized in respect of short-term employee benefits are
measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.
(j) Taxation:
(i) Income tax expense represents the sum of the tax currently payable and deferred tax.
Current Tax:
(ii) Current Tax is the amount of tax payable based on the taxable profit for the year as determined in accordance with
the applicable tax rates and the provisions of the India Income Tax Act,1961.
Deferred Tax:
(iii) Deferred tax is recognized on temporary 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 recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all
deductible temporary differences to the extent that it is probable that taxable profits will be available against which
those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if
the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither
the taxable profit nor the accounting profit.
(iv) The carrying amount of deferred tax assets is reviewed at the end of each annual reporting period 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.
(v) Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively
enacted by the end of the reporting period.
(vi) Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation
authority.
(vii) Current and deferred tax are recognized in the statement of profit and loss, except when they are related to item that
are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are
also recognized in other comprehensive income or directly in equity respectively.
Minimum Alternate Tax (MAT):
(viii) Minimum Alternate tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form
of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the company
will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is highly
probable that future economic benefit associated with it will flow to the Company.
(k) Foreign Currencies:
(i) The functional currency of the Company is determined on the basis of the primary economic environment in which it
operates. The functional currency of the Company is Indian National Rupee (INR).
(ii) The transactions in currencies other than the entity's functional currency (foreign currencies) are recognized at the
rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items
denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried
at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the
fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency
are not retranslated.
(iii) Exchange differences on monetary items are recognized in statement of Profit and Loss in the period in which they
arise except for (i) exchange differences on foreign currency borrowings relating to assets under construction for
future productive use, which are included in the cost of those assets when they are regarded as an adjustment to
interest costs on those foreign currency borrowings, and (ii) exchange differences on monetary items receivable
from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming
part of the net investment in the foreign operation), which are recognized initially in other comprehensive income
and reclassified from equity to statement of Profit and Loss on repayment of the monetary items.
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