1) As at March 31,2026, there are no trade receivables which are due from related parties (March 31,2025 Rs. Nil).

2) T rade receivables are non-interest bearing and are generally on the terms of 7 to 120 days of credit period.

3) As at March 31, 2026, there are no trade receivable which are due from directors or other officers of the company either severally or jointly with any other person. Further, there are no trade receivables which are due from firms or private companies respectively in which any director is a partner, a director or a member.

4) The Company and NRB IBC Bearings Private Limited (NIBC) have transactions with IBC INDUSTRIAL BEARINGS AND COMPONENTS AG (IBC AG) and IBC Walzlager, Gmbh (IBC Gmbh) in nature of export of goods and import of raw materials since December 2013 For transactions held between December 2013 and August 2015, IBC AG and IBC Gmbh has netted off the outstanding receivables and payables in their books of accounts and remitted Euro 28,079 in October 2015 for the same.

As per RBI Circular RBI/2014-15/5 Master Circular No 14/2014-15 dated July 1, 2014 Clause C.25, RBI had delegated the powers to accept the application for set-off of export receivables against import payables to Authorised Dealer bank (AD) on behalf of RBI.

The Company had made the statutory application to its authorised dealer bank along with all the necessary documents seeking approval for set off of export receivables against import payables in the books of the Company. Pending approval the Company has disclosed receivables of Rs. 188.58 lakhs (March 31,2025 Rs. 159.72 lakhs) as Non current Trade Receivable in Note 11 and payable of Rs. 109.88 lakhs (March 31, 2025 Rs. 93.07 lakhs) as Non current Trade Payable in Note 18.

5) The Company applied the expected credit loss (ECL) model for measurement and recognition of impairment losses on trade receivables. The Company follows simplified approach for providing expected credit losses as prescribed by Ind AS 109, which permits the use of the lifetime expected loss provision for all trade receivables. The Company has computed expected losses based on a provision matrix which uses historical credit loss experience of the Company and where applicable, specific provision are accounted for individual receivables.

Amounts on which Deferred tax asset has not been created:

Deferred tax assets on carry forward unused tax losses have been recognised to the extent of deferred tax liabilities on taxable temporary differences available. It is expected that any reversals of the deferred tax liability would be offset against the reversal of the deferred tax asset.

Since the Company has been incurring losses in recent past periods in addition to the carried forward losses, the Company has not recognized deferred tax assets as it is not probable that sufficient future taxable profit will be available against which unused tax losses can be utilised. Deferred tax assets are recognised only to the extent it is probable that either future taxable profits or reversal of deferred tax liabilities will be available, against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.

1) (a) Rights attached to equity shares:

1) The Company has only one class of equity shares having a face value of Rs. 2 each. The Equity Shareholders have all the rights of equity shares as provided by the Companies Act, 2013 and Rules & Regulations made thereunder.

2) The Company in General Meeting may declare dividend to be paid to members according to their respective rights, but no dividend shall exceed the amount recommended by the Board, but the Company in General Meeting may declare a smaller dividend.

3) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in proportion to their shareholding.

(b) Rights attached to Preference shares:

1) The Preference shareholders shall carry a preferential right over the equity shareholders with respect to payment of dividend and repayment of capital in case of winding up;

2) The Preference shareholders shall be non- participating in the surplus fund;

3) The Preference shareholders shall be non-participating in the surplus assets and profits which may remain after the entire capital has been repaid on winding up of the Company;

4) The holders of Preference shares shall be paid dividend on a cumulative basis at the rate as recommended by the Board and declared by the shareholders of the Company. Presently, the preference dividend be paid at the end of tenure at 2% p.a. post tax expenses;

5) The Preference share shall not be convertible into equity shares;

6) The Preference share shall carry voting rights as per the provisions of Section 47(2) of the Companies act 2013;

7) The Preference share shall be redeemed after the end of 10 years from the date of issue of such shares;

8) The Preference shares shall not be listed on any stock exchange.

1) Consequent to the demise of Mr. Trilochan Singh Sahney, the Company has not received share transmission application from legal heirs of Late Mr. Trilochan Singh Sahney and accordingly the name of Late Trilochan Singh Sahney is still appearing in register of Members and is accordingly disclosed above.

2) As at March 31,2021, number of equity shares in the name of Late Mr. Trilochan Singh Sahney was 29,29,101 equity shares in the Company. Out of 29,29,101 equity shares, 11,46,000 equity shares were held in the joint names of Late Mr. Trilochan Singh Sahney and Mrs. Hanwantbirkaur Trilochan Singh Sahney. During the year ended March 31,2022, the 11,46,000 shares were transferred to Mrs. Hanwantbirkaur Trilochan Singh Sahney due to applicable procedural requirements and are appearing in register of members in her name and accordingly disclosed above. However, as per the communication received from Executrix of the estate of Late Mr. Trilochan Singh Sahney, the above mentioned shares will ultimately devolve to the legal heirs of Late Mr. Trilochan Singh Sahney.

3) Previous year, the Company received an intimation of a proposed realignment of shares within the Promoter Group as contemplated under the Memorandum / Family Settlement Agreement dated January 20, 2025 that would result in the realignment of shares held in the Company and a realignment of the beneficial interest in the Trilochan Singh Sahney Trust 2 which holds shares in the Company. While the Family Settlement Agreement has been duly signed, certain procedures and regulatory formalities remain to be completed to effectuate the transfer of shares as stipulated thereunder. Such change is not expected to have any impact on the financial statements of the Company.

1) Capital reserve

This represents value of excess of asset received over liabilities assumed during demerger from NRB Bearings Limited.

2) Equity component of compound financial instruments

This represents the difference between fair valuation and transaction price on initial recognition of preference shares issued to a Promoter shareholder.

3) Retained earnings

Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss / (gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss. The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the financial statements of the Company and also considering the requirements of the Companies Act, 2013.

Loss for the year ended on March 31,2026 includes Exceptional Items of Rs. 172.75 Lakhs and Profit for the year ended on March 31,2025 includes Exceptional Items of Rs. 4,646.76 Lakhs. (Refer Note No 42)

1) Secured

Term loans from Bank

(a) Rs. Nil (March 31,2025 Rs. 35.58 lakhs) secured by second charge on all present and future stock and book debts of the Company and second pari passu charge over immovable Property, plant and equipment (buildings), leasehold land of the Company and its movable plant and machinery, furniture and fixtures and other movables at its factory at Shendra (near Aurangabad) and personal guarantee of Promoter Director of the Company. The working capital term loan is fully repaid in the current year and carried interest rate of 7.50 % p.a.

(b) Rs. 190.54 lakhs (March 31,2025 Rs. 258.23 lakhs) secured by first pari- passu charge over Land and Building situated at Shendra, MIDC Aurangabad. The working capital term loan is repayable in remaining 27 monthly instalments Rs. 8.90 lakhs each till June 27, 2028 and carries interest rate of 14 % p.a.

(c) Rs. 13.37 lakhs (March 31,2025 Rs. 49.02 lakhs) secured by hypothecation of vehicles. Out of these , the term loan of Rs. 10.71 lakhs (March 31,2025 Rs. 42.51 lakhs) carrying interest rate of 7.65% p.a. is repayable in remaining 5 equal monthly instalments by August, 2026 and the term loan of Rs. 2.66 lakhs (March 31, 2025 Rs. 6.50 lakhs) carrying interest rate of 7.65 % p.a. is repayable in remaining 9 equal monthly instalments by December 5, 2026.

(d) Rs. 169.63 lakhs (March 31,2025 Rs. 66.42 lakhs) secured by hypothecation of machineries purchased out of bank's finance at its factory at Shendra (near Aurangabad) and personal guarantee of Promoter Director of the Company. The machinery term loan is repayable in 48 equal monthly instalments of Rs. 3.85 lakhs each till Feb 30, 2030 and carries interest rate of 12.50 % p.a.

2) Term loan from Others

(a) Rs. Nil (March 31, 2025 Rs. 3.09 lakhs) secured by hypothecation of vehicles. The entire term loan carrying interest rate of 8.21 % p.a. is repaid by November 20, 2025.

Unsecured3) Loans from related parties

100 lakhs each 6 % Redeemable Cumulative Non - Convertible Preference shares of Rs. 10 each fully paid up were issued to a Promoter shareholder in March 2016 and in April 2016 with redemption at the end of 5 years from the date of issue. During the year ended March 31,2018, the terms of existing Redeemable Cumulative Non - Convertible Preference shares were changed w.e.f. February 15, 2018, with the dividend rate being modified to 2% and the redemption term being changed to 10 years. During the year ended March 31, 2016, the terms of existing Redeemable Cumulative Non - Convertible Preference shares were changed w.e.f. April 01,2026, the redemption term being changed from 10 years to 13 years.

200 lakhs 2 % Redeemable Cumulative Non - Convertible Preference shares of Rs. 10 each fully paid up were issued to a Promoter shareholder in February 2018 with redemption at the end of 10 years.

100 lakhs and 35 lakhs 2 % Redeemable Cumulative Non - Convertible Preference shares of Rs. 10 each fully paid up were issued to a Promoter shareholder in January 2019 and in March 2019 respectively with redemption at the end of 10 years.

50 lakhs, 15 lakhs, 150 lakhs and 50 lakhs 2 % Redeemable Cumulative Non - Convertible Preference shares of Rs. 10 each fully paid up were issued to a Promoter shareholder in June 2019, August 2019, December 2019 and in March 2020 respectively with redemption at the end of 10 years.

65 lakhs 2 % Redeemable Cumulative Non - Convertible Preference shares of Rs. 10 each fully paid up were issued to a Promoter shareholder in March 2023 with redemption at the end of 10 years.

75 lakhs 2 % Redeemable Cumulative Non - Convertible Preference shares of Rs. 10 each fully paid up were issued to a Promoter shareholder in March 2023 with redemption at the end of 10 years.

1) Loans repayable on demand :

(i) Rs. 1,475.80 lakhs (March 31,2025 Rs. 1,469.06 lakhs) is secured by first pari passu charge on all present and future stock and book debts of the Company and first pari passu charge over immovable Property, plant and equipment (buildings), leasehold land of the Company and its movable plant and machinery, furniture and fixtures and other movables at its factory at Shendra (near Aurangabad). The interest rate is 14.05% p.a.

(ii) Rs. 89.61 lakhs (March 31, 2025 Rs. 90.60 lakhs) overdraft facility is secured against Fixed deposit of the Company. The interest rate is 8.20% p.a.

2) The Company has not defaulted on repayment of loans and interest during the year.

3) The quarterly returns or statement of current assets filed by the Company with banks are in agreement with the books of accounts.

4) Loans from related parties (associates) represent advances received that are repayable on demand and are in excess of normal business transactions. As at March 31,2026, the outstanding balances amounted to Rs. 305.01 lakhs payable to NRB-IBC Bearings Private Limited and Rs. 257.74 lakhs payable to NIBL-KORTA Engineering Private Limited.

Note 30:

Consequent to the demise of Mr. Trilochan Singh Sahney ("TSS") in 2018, his Will has been probated. As per the Will, Mrs. Hanwantbir Kaur Sahney was appointed as the sole Executrix with a life interest in the estate.

The Company received intimation dated January 20, 2025 regarding the execution of the Family Settlement Agreement amongst the promoter and promoter family. This agreement contemplated realigning the shareholding within the Promoter Group. Accordingly, the redeemable cumulative non-convertible preference shares and the unsecured interest-free loan of Late Mr. Trilochan Singh Sahney were transferred to Mr. Devesh Singh Sahney during the previous year. Refer to Footnote 3 of Note 15(iii).

Note 32: Leases 1. Company as a lessee:

a) The Company has taken Shendra Plant land on operating lease. The lease term in respect of the leasehold land is 95 years. The Company has paid the entire lease premium for the lease hold land as a result of which there is no corresponding lease liability against the Right-of-Use asset.

b) During the year, the company has taken Head office premises on operating lease. The lease term in respect of the leasehold premises is 3 Years.

2. Company as a lessor:

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset is classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

The Company had entered into lease agreement with a related party effective from March 8, 2013 for certain portion of its factory and office premises including furniture and fixtures, electrical installation, etc. During the year, Rs. 102.22 lakhs (previous year Rs. 102.22 lakhs) recognised as rental income in the Statement of Profit and Loss. The agreement contains renewal clause. The said agreement was renewed with effect from April 1,2023 for a period of seven years.

Note 35 : Employee Benefits Brief description of the Plans:1) Defined contribution plans :a) Provident and Family Pension Fund

The eligible employees of the Company are entitled to receive post employment benefits in respect of provident and family pension fund, in which both employees and the Company make monthly contributions at a specified percentage of the employees’ eligible salary (currently 12% of employees’ eligible salary). The contributions are made to the Regional Provident Fund Commissioner. Provident Fund and Family Pension Fund are classified as Defined Contribution Plans as the Company has no further obligations beyond making the contribution.

b) Superannuation

The eligible employees of the Company are entitled to receive post employment benefits in respect of superannuation scheme, in which the Company makes quarterly contributions at 15% of employees’ eligible salary. Superannuation scheme is classified as Defined Contribution Plan as the Company has no further obligations beyond making the contribution.

2) Defined Benefit Plans : (Gratuity Funded)

The Company has an obligation towards gratuity, a funded defined benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of the employment of an amount equivalent to 15 days salary, as applicable, payable for each completed year of service, without any payment ceiling. Vesting occurs upon completion of five years of service.

Nature of benefits:

The gratuity benefits payable to the employees are based on the employee’s service and last drawn salary at the time of leaving. The employees do not contribute towards this plan and the full cost of providing these benefits are met by the Company.

Regulatory framework:

There are no minimum funding requirements for a gratuity plan in India. The trustees of the gratuity fund have a fiduciary responsibility to act according to the provisions of the trust deed and rules. Since the fund is income tax approved, the Company and the trustees have to ensure that they are at all times fully compliant with the relevant provisions of the income tax and rules. Besides this if the Company is covered by the Payment of Gratuity Act, 1972 then the Company is bound to pay the statutory minimum gratuity as prescribed under this Act.

Governance of plan:

The Trust established for the purpose, has arrangement with Insurance Company (currently HDFC Standard Life Insurance Company Limited and Kotak Life Insurance Company Limited) for future payments of gratuities on behalf of the Trust.

Inherent risk

The plan is of a final salary defined benefit in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to the plan. In particular, there is a risk for the Company that any adverse salary growth or demographic experience or inadequate returns on underlying plan assets can result in an increase in cost of providing these benefits to employees in future. Since the benefits are lump sum in nature the plan is not subject to any longevity risks.

The most recent actuarial valuation of the present value of the defined benefit obligation was carried out at March 31, 2026 by an independent actuary. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

Valuations are performed on certain basic set of predetermined assumptions and other regulatory framework which many vary overtime. Thus, the Company is exposed to various risks in providing the gratuity benefit which are as follows:

Interest rate risk:

A fall in the discount rate which is linked to the Government Security Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan's liability.

Investment Risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk:

The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk:

Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Concentration Risk:

Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very low as insurance companies have to follow stringent regulatory guidelines which mitigate risk.

NRB Industrial Bearings Limited

Notes forming part of the Standalone Financial Statements for the year ended March 31,2026

H. Sensitivity Analysis

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate. The following table summarizes the impact on the reported defined benefit obligation at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 100 basis points.

These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods and assumptions used in preparing the sensitivity analyses.

The above sensitivity analyses are based on change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

1) No amounts pertaining to related parties have been provided for as doubtful debts. Further, no amounts have either been written off or written back during the period.

2) Outstanding balances (other than borrowings) at the year-end are unsecured and interest free and settlement occurs in cash.

3) The Company’s related party transactions during the year ended March 31,2026 and March 31,2025 and outstanding balances as at March 31, 2026 and March 31, 2025 are with whom the Company generally enters into transactions which are at arms length and in the ordinary course of business. All the Related Party Transactions are reviewed and approved by the Audit Committee periodically.

4) Compensation of key managerial personnel excludes provision for gratuity and compensated absences which is determined on the basis of actuarial valuation done on overall basis for the Company.

5) The term loan of Rs. 169.63 lakhs (as at March 31,2025 Rs.102.00 lakhs) (refer Note (a),(b) and (e) of Note 17(A)), is secured by personal guarantee of Mr. Devesh Singh Sahney.

6) Corporate guarantee and security given to bank by way of second charge on right of use assets and property plant and equipment of the company for loan/facility taken by associate companies NRB IBC Bearings Private Limited and NIBL Korta Engineering Private Limited of Rs 775.00 lakhs outstanding as on March 31, 2026 is Rs. 624.29 lakhs and Rs. 495.00 lakhs outstanding as on March 31,2026 Rs 394.72 lakhs respectively.

Terms of Related Party Transactions :

a) Sale of goods/Rendering of Services/Service Charges/Purchase of Material :

Sales/Rendering of Service/Service Charges/Purchase of material are made to related parties on the same terms as applicable to third parties in an arm's length transaction and in the ordinary course of business. The Company mutually negotiates and agrees sales price/service charge/Purchase price, discount and payment terms with related parties by benchmarking the same to transactions with non related parties, who purchase/sale goods and services of the Company in similar quantities.

b) Rent Income :

The Company has given property on lease rental basis to related parties at arm's length transaction and in the ordinary course of business. The Company mutually negotiates and agrees Lease rate and payment terms with related parties by benchmarking the same to transactions with non related parties based on facilities required.

c) Royalty Income :

The Company received royalty income from related parties for using the brand name of Company. The Royalty rate charged at arm's length transaction and in the ordinary course of business.

d) Payments made/ expenses incurred :

These transaction represent expense/payment incurred by the Company on behalf of related parties or expense incurred by related parties on behalf of the Company. These payment made/expense incurred/reimbursement of expense is made on actual cost incurred basis without markup.

e) Remuneration/Sitting Fees :

Remuneration amount paid/payable to relative of KMP and Sitting fees paid to directors are recognised as expense during the year in the ordinary course of business. The amount does not include expense towards post employee benefits which measured based on actuarial valuation done for Company.

(f) Loan given to associate Companies and Interest on loans:

The Company has given loan to its associates NRB IBC Bearings Private Limited and NIBL Korta Engineering Private Limited as mentioned above. The Company mutually negotiates and agrees the rate of interest, purpose and terms of these loans by benchmarking the same to a transaction with non related parties, from whom the Company regularly obtains the loan.

(g) Interest on Preference Shares :

Interest Cost on preference shared recognised as per Ind AS 109 entries and actual interest payable at 2% payable at the time of redemption as per terms of preference share which in the ordinary course of business.

(h) Contribution to Employee Benefit Funds :

Contribution to employee benefit funds are made as per applicable statutory laws and regulations.

(i) Corporate Guarantee Income :

Recover the Corporate Guarantee income @ 0.25% of average facility utilised by the related parties from banks which at arm's length transaction and in the ordinary course of business.

Note 39 : Capital management and Risk management I Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, convertible preference shares, securities premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company's capital management strategy is to effectively determine, raise and deploy capital so as to create value for its shareholders. The same is done through a mix of either equity and/or preference and/or combination of short term /long term debt as may be appropriate. The Company determines the amount of capital required on the basis of its product, capital expenditure, operations and strategic investment plans. The same is funded through a combination of capital sources be it either equity and/or preference and/or combination of short term/long term debt as may be appropriate.

There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31,2026 and March, 31 2025.

II Financial Risk Management Framework

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations. The Company’s principal financial assets include loans, trade receivables, and cash and cash equivalents that derive directly from its operations.

The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk. The Company's Senior Management oversee the management of these risks. In order to manage the aforementioned risks, the Company operates a risk management policy and a program that performs close monitoring of and responding to each risk factors.

A Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposit with banks and financial institution, foreign exchange transaction and other financial instruments.

Trade receivable

Customer credit risk is managed as per the Company's established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on payment performance over the period of time. The Company's exposure of its customers are continuously monitored based on the customer's past performance and business dynamics. Credit exposure is controlled by customer's credit limits that are reviewed and approved by the management at regular intervals.

An impairment analysis is performed at each reporting date. The Company applies the simplified approach for providing expected credit losses as prescribed by Ind AS 109, which permits the use of the lifetime expected loss provision for all trade receivables. The Company has computed expected credit losses based on a provision matrix which uses historical credit loss experience of the Company and where applicable, specific provisions are made for individual receivables.

B Liquidity Risk

(i) Liquidity Risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company’s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by way of banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(ii) Maturities of financial liabilities

"The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities . The amount disclosed in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.

C Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The Company uses derivatives to manage any significant market risks. Derivatives are only used for economic hedging purposes and not as speculative investments. All such transactions are carried out within the guidelines set by the Board of Directors .

(i) Currency Risk

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The Company's exposure to currency risk relates primarily to the Company's operating activities when transactions are denominated in a different currency from the Company's functional currency.

The Company’s foreign currency exposure are denominated in US Dollar, Euro and Emirati Dirham which arise mainly from foreign exchange imports, exports and foreign currency borrowings.

(ii) Interest rate sensitivity

Interest rate risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of changes in market interest rate. During the year, the Company has availed benchmarked linked, short term and long term debts from Bank. Therefore, the Company has exposure to the risk of changes in market interest rates towards the debt availed during the year. It is estimated that an increase in 30 bps change in benchmark rate would result in a loss of approximately Rs. 4.63 lakhs whereas a decrease in 30 bps change in benchmark rate would result in a profit of approximately Rs. 4.63 lakhs. The movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.

(iii) Raw material price risk

The Company does not have significant risk in raw material price variations. In case of any variation in price same is passed on to the customer through appropriate adjustments to selling prices.

(C) The following methods and assumptions were used to estimate the fair value :

1 Fair value of cash and cash equivalents, bank balances, trade receivables, other current financial assets, current borrowings, trade payables, other current financial liabilities approximate their carrying amounts largely due to short term maturities of these instruments.

2 Significant Estimates

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgement to select variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period.

3 The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

4 Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required):

The Company consider that the carrying amount of financial asset and financial liabilities recognised in the financial statements approximate their fair value.

As at March 31,2026 the Company has a net current liability position of Rs. 1,896.97 lakhs and has a negative net worth of Rs. 5,165.77 lakhs. The management of the Company has formulated strategic plans for improving the profitability of the Company, which includes increase in sales and reduction in operating expenses. The Promoter director has also provided a commitment in the form of support letter to provide the necessary financial support to the Company to meet its operational and financial obligations including loan from other Promoter as and when they fall due. Based on the business plans of the Company, cash flow projections and support letter from Promoter director, management is confident that the Company will be able to meet its financial obligations as they arise. Accordingly, the Standalone Financial Statements have been prepared on the basis that the Company will continue as a going concern for the foreseeable future.

Foot Note :

a) The Company has entered into an Inter-Company Agreement dated January 20, 2025 with NRB Bearings Limited, a related party, for the purpose of inter alia: (i) release of the right to use the immovable property (ii) mutual non-solicitation provisions and (iii) regulating the rights to use intellectual property. All the necessary approvals, including shareholder consent, were duly obtained during the quarter ended March 31,2025. The transactions contemplated under the InterCompany Agreement were completed upon fulfilment of all conditions precedent and the agreed combined consideration of INR 5,512 lakhs was received by the Company on February 14, 2025. In line with the applicable accounting standards and the Company’s accounting policies, the net gain arising from these transactions of INR 4,646.76 lakhs, after accounting for related expenses of INR 865.24 lakhs, has been recognised as an exceptional item for the year ended March 31,2025.

b) The Government of India notified the four Labour Codes ('New Labour Codes') effective November 21, 2025. The Ministry of Labour & Employment has also issued draft Central Rules and FAQS to help assess the financial impact of these changes. The Company has assessed the estimated impact arising on account of the changes in the New Labour Codes especially due to the change in wage definition based on its best judgement in consultation with external experts. Accordingly, the Company has recognised incremental estimated obligations aggregating Rs. 172.75 Lakhs based on actuarial valuation in accordance with Ind AS 19 - 'Employee Benefits' and consistent with guidance provided by the Institute of Chartered Accountants of India. The incremental impact has been disclosed as an exceptional item given the non-recurring nature of this expense arising on account of a regulatory change. The Company is in the process of reassessing and implementing policy changes to its existing employee benefit policies. The Company continues to monitor the finalisation of Rules and clarifications from the Government on other aspects of the New Labour Codes and would provide appropriate accounting effect on the basis of such developments, if any, as required.

(i) The Company does not have any Benami property. No proceedings has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made there under.

(ii) The Company does not have any transaction with Companies struck off under section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.

(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 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 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

(vi) 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 Company 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, security or the like on behalf of the ultimate beneficiaries.

(vii) The Company does not have 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.

(viii) The Company is not declared wilful defaulter by any bank or financial institution or lender during the year.

(ix) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

(x) The Company is maintaining its books of account in electronic mode and these books of account are accessible in India at all times and the back up of books of account has been kept in servers physically located in India on a daily basis basis from the applicability date of accounts rules i.e August 5, 2022 onwards.

(xi) The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software except that, audit trail feature is not enabled for direct changes to data when using certain access rights. Further, during the course of our audit we did not come across any instance of audit trail feature being tampered with, in respect of accounting software where the audit trail has been enabled. Additionally, the audit trail of prior years has been preserved by the Company as per the statutory requirements for record retention to the extent it was enabled and recorded in the respective years