i. During the year ended March 31, 2025, the Company subscribed to 100% equity shares in SKF India (Industrial) Limited, (the “wholly owned subsidiary company”) incorporated under the Companies Act, 2013 and its rules. Subsequently, pursuant to the Scheme of Demerger approved by the Honourable National Company Law Tribunal (NCLT), the investment held by the Company in the Subsidiary stood cancelled in accordance with the terms of the said Scheme. Consequent to such cancellation, SKF India (Industrial) Limited ceased to be a subsidiary of the Company with effect from October 01, 2025. Refer note 39.

ii. During the year ended March 31, 2021, the Company had subscribed to 26.74% equity shares in Sunstrength Renewables Private Limited (SRPL) (the ‘associate company'), a Company incorporated pursuant to the requirements of the Electricity Act, 2002 and its rules.Further during the year ended March 31, 2024, the Company has subscribed 290,000 equity shares of SRPL vide issuance of equity shares. The equity shareholding of 26.74% remains the same.

During the year ended March 31, 2023, the Company had subscribed to 26.00% equity shares in CleanMax Taiyo Private Limited (CTPL) (the ‘associate company'), a Company incorporated pursuant to the requirements of the Electricity Act, 2002 and its rules. Further during the year ended March 31, 2024, the Company has subscribed 26,267 equity shares of CTPL vide issuance of equity shares. The equity shareholding of 26.00% remains the same.

i) Refer Note 40 for related party disclosures

ii) Loan given to SKF Engineering and Lubrication India Private Limited (a fellow subsidiary / Borrower) with original repayment starting from financial year 2014 onwards. During the FY 2023-24 (erstwhile demerger), the repayment terms of the loan are extended till 2029 and same was novated to SKF India (Industrial) Limited (“Resulting Company”).

The said loan together with interest is secured by first charge by way of hypothecation on all the fixed assets of the borrower and corporate guarantee given by AB SKF (erstwhile Ultimate Parent Company). Loan is considered to be recoverable considering favourable loan to security ratio, no defaults in repayment in the past, improved operational performance of the borrower, support by the borrower's holding company in the past and supported by reasonable assumption used for future cash flow. The rate of interest on the loan is the average deposit and lending rate (higher of the two) for the period of the loan and prevailing yield for the government securities closest to the tenure of the loan, whichever is higher.

i) Deferred tax assets and deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set-off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relates to income tax levied by the same taxation authorities.

The Company has done a detailed analysis of future recoverability of the Deferred Tax assets based on the internal and external information and expects, the recoverability of the Deferred Tax asset is not impacted.

B. Rights, preferences and restrictions attached to equity shares

The Company has only one class of equity shares having a par value of INR 10 per share. Each shareholder is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the equity shareholders are eligible to receive remaining assets of the Company, after distribution of all preferential amounts, in the proportion to their shareholding.

D. Pursuant to the scheme of demerger, on October 1, 2025, SKF (UK) Ltd and SKF Forvaltning transferred their holdings of 3,129,581 equity shares (representing 6.33% of the paid-up equity share capital) and 196,423 equity shares (representing 0.40% of the paid-up equity share capital) respectively in SKF India Limited to AB SKF. Consequent to the aforesaid transfer, AB SKF's aggregate shareholding in SKF India Limited increased to 25,992,059 equity shares, constituting 52.58% of the paid-up equity share capital.

On December 22, 2025, AB SKF transferred its entire holding of 25,992,059 equity shares (representing 52.58% of the paid-up equity share capital) in SKF India Limited to SKF Vertevo AB (formerly known as SKF Interim AB).

As of March 09, 2026, SKF Interim AB, which has since been renamed SKF Vertevo AB, holds 25,992,059 equity shares (representing 52.58% of the paid-up equity share capital) in SKF India Limited. This shareholding position remains unchanged as of March 31, 2026.

The Company has not issued any fully paid up bonus share, made any buy back of shares or issued any shares for consideration other than cash, during the period of five years immediately preceding the reporting date.

(i) Provision for disputed statutory and other matters:

This represents provisions made for probable liabilities / claims arising out of pending disputes / litigations with various regulatory authorities and those arising out of commercial transactions with vendors / employees / others. Above provisions are affected by numerous uncertainties and management has taken all efforts to make a best estimate. Timing of outflow of resources will depend upon timing of decision of cases. The Company has reviewed the various liabilities / claims relating to tax and legal matters and estimated the provision for contingencies based on assessment of its probability of outflows. These provisions have not been discounted as it is not practicable for the Company to estimate the timing of the provision utilisation and cash outflows, if any, pending resolution.

(ii) Provision for warranties:

A provision is estimated for expected warranty claims in respect of products sold during the year on the basis of a technical evaluation and past experience regarding failure trends of products and costs of rectification or replacement. The timing and amount of cash flows that will arise from these matters will be determined at the time of receipt of claims.

(iii) The provision for other obligations is on account of coupons given on products sold by the Company and other retailers and distributors incentive schemes. The provision for coupons is based on the historical data / estimated figures. The timing and amount of the cash flows that will arise will be determined at the time of receipt of claims from customers, which is generally up to 18 months.

Pursuant to the Scheme of arrangement, certain customer contracts have not yet been novated to SKF India (Industrial) Limited as at the effective date of scheme. Consequently, revenue aggregating to INR 1,036.0 Million, pertaining to services performed by SKF India(Industrial) Limited under such non-novated contracts, has been billed by the Company on behalf of SKF India (Industrial) Limited during the period from October 01, 2025 to March 31, 2026 considering the Company acting as agent on behalf of SKF India (Industrial) Limited. Refer note 33 -Note on Interim Transition Services Agreement.

Also, the Company has made passthrough sales transactions for inward of inventory on behalf of SKF India (Industrial) Limited amounting to INR 1,462.7 Million.

33 Note on Interim Transition Service Arrangements

Pursuant to the Scheme of Arrangement, SKF India Limited (“the Company”) and SKF India (Industrial) Limited entered into Interim Transition Service Arrangements (“ISA”) for the sharing of common facilities and functions. Under these arrangements, the costs attributable to such shared facilities and functions are reimbursed by the Company on a proportionate basis, in the ratio mutually agreed upon by both entities, with effect from the appointed date of October 01, 2025. The costs so reimbursed are recognised in the books of account of the Company under the respective expense heads.

(i) During the year ended March 31, 2026, the Company has incurred certain demerger expense for continuing operations for IT cost (INR - 131.6 Million), professional services (INR - 35.2 Million) and estimated transfer premium (INR 7.4 Million) and for discontinued operations IT cost (INR - 148.5 Million), professional services (INR -11.7 Million) towards Scheme of Demerger as explained in note 39. These restructuring costs are non-recurring in nature and do not reflect the Company's normal operating performance.

(ii) On November 21, 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 - consolidating 29 existing labour laws into a unified framework governing employee benefits during employment and post-employment. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The Company has assessed and disclosed the incremental financial impact of these changes on the basis of legal advise obtained and the best information currently available, consistent with the guidance provided by the Institute of Chartered Accountants of India. Considering the materiality and regulatory-driven, non-recurring nature of this impact, the Company has presented this incremental financial impact as “Statutory impact of new Labour Codes” under “Exceptional item”. The incremental impact consisting of gratuity of INR 24 million for the year ended March 31, 2026 primarily arises due to change in wage definition.

The Company continues to monitor the finalisation of Central / State Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting effect on the basis of such developments as needed, if any on the measurement of liability pertaining to employee benefits.

Notes:

(i) Income Taxes - Bilateral Advance pricing Agreement Impact

During the current year, the Company entered into a Bilateral Advance Pricing Agreement (“BAPA”) with the Central Board of Direct Taxes (“CBDT”) on March 18, 2026, covering financial years FY 2012-13 to FY 2020-21 for certain transactions with its Ultimate Parent Company. Pursuant to the BAPA, tax relating to prior years for the year ended March 31, 2026 includes, an incremental tax expense of INR 614.8 million (including interest of INR 72.8 million which is disclosed as an exceptional item for the year ended March 31, 2026)

Pending completion of assessment proceedings, the total primary adjustment arising from the BAPA including advance tax, tax paid under protest, and provisions for these years continues to be carried in the Company's books. Once assessments are concluded, the final tax payable / refund will be settled between the Company and Resulting Company companies on an agreed predetermined ratio.

The tax impact of secondary adjustments, for which no provision or advance tax had previously been recorded, has been allocated between the Company and the Resulting Company in accordance with the Scheme of Demerger approved by Honourable National Company Law Tribunal (NCLT). The tax charge relating to such secondary adjustments, included in the incremental tax expense above, amounts to INR 88.8 million.

The substantial reduction in Contingent Liability is on account of BAPA signed by the Company with CBDT. The Contingent Liability related to the aforesaid years are reversed of INR 2,704.4 Million (SKF India Limited INR 1,591.3 Million and SKF (India) Industrial Limited INR 1,113.1 Million)

(ii) Income Taxes - Others

The Company has outstanding disputes with Direct Tax authorities mainly relating to tax treatment of certain expenses claimed as deduction, computation or allowances and transfer pricing matters.

During the year, the company has received final assessment order for the Financial year 2021-22 with upward adjustment of INR 693.7 Million towards transfer pricing addition. The company has preferred appeal before the Commissioner of Income Tax (Appeals) and the same is pending to be heard.

The company has also received order subsequent to the voluntary revocation of Health and education cess claim for the Financial year 2018-19 under section 154 r.w.s 155(18) of the Income-tax Act, 1961 leading to the adjustment of INR 71.8 Million. The company already has provided for the tax expense on account of the same and has filed for the rectification application before the Assessing officer towards the incorrect levy of Interest component which is also part of Contingent Liability INR 8.2 Million.

(iii) GST Service Tax -Sales Tax

The Company has outstanding disputes with Indirect Tax authorities mainly relating to VAT, Service tax and GST.

(iv) Customs Duty

During the previous year, the Company has received show cause cum demand notice from customs authority of India to enforce bond u/s 143 of the Customs Act 1962 w.r.t advance license issued during FY 1997-98. The Company has successfully closed part of the licenses. For the closure of remaining licenses, the Company is co-ordinating with DGFT and Customs Authorities. In response RTI application was filed on June 29, 2024, with the Chief Commissioner of Customs and the Directorate General of Foreign Trade. The Company is currently in the process of preparing its reply and, where applicable, filing a writ petition.

(iv) Others

The Company has disclosed other claims relating to civil cases considering similar industry practices.

(v) The Company has evaluated the impact of the recent supreme court judgment in case of “Vivekananda Vidyamandir and Others vs The Regional Provident Fund Commissioner (II), West Bengal” and the related circular (Circular No. -C-I/1(33)2019/Vivekananda Vidya Mandir /284) dated March 20, 2019 issued by the Employees' Provident Fund Organization in relation to non-exclusion of certain allowances from the definition of “basic wages” of the relevant employees for the purposes of determining contribution to provident fund under the Employees' Provident Funds & Miscellaneous Provisions Act, 1952. In the assessment of the management, the aforesaid matter is not likely to have a significant impact and accordingly, no provision is recorded as at

March 31, 2026.

(vi) Pursuant to the Scheme of Arrangement sanctioned by the Hon'ble NCLT dated September 26, 2025, the Industrial Business of the company was demerged into SKF India (Industrial) Limited (“Resulting Company”), with effect from October 01, 2025. The contingent liabilities relating to Income Tax and Indirect Tax continue to be carried in the books of the company, and shall be finally adjusted only upon ultimate settlement / closure of the respective proceedings, at which point, both entities will recognise their respective share of tax expense or refund in accordance with the Scheme. The company has a contractual right towards reimbursement of the amount of demand / refund finally determined.

39 Scheme of Arrangement between SKF India Limited (“Demerged Company”), SKF India (Industrial) Limited (“Resulting Company”), and their respective shareholders and creditors (referred as the “Scheme”)

The Board of Directors of the Company at its meeting held on December 26, 2024, has approved the Scheme of Arrangement among SKF India Limited (“Demerged Company”), SKF India (Industrial) Limited (“Resulting Company”), and their respective shareholders and creditors under section 230-232 and other applicable provisions of the Companies Act, 2013 and ruled framed thereunder (the “Scheme”). The Scheme has an appointed and effective date of October 01, 2025. The certified copy of the NCLT Order was filed with the Registrar of Companies on October 01, 2025 (“Effective Date”).

During the year, the Company has received requisite approval from NCLT, Mumbai Bench, vide its order dated September 26, 2025. Respective companies have subsequently filed the certified true copy of NCLT order along with the sanctioned scheme with the Registrar of Companies on September 30, 2025 (closing hours). Accordingly, the Scheme is effective w.e.f. October 01, 2025.

With effect from the Appointed and Effective Date, the Industrial Business of SKF India Limited (along with all assets, liabilities and retained earnings thereof at their respective carrying value as appearing in the books of the Demerger Company) was transferred to the Resulting Company on a going concern basis. As consideration, the Resulting Company, pursuant to the Scheme, allotted 43,437,963 Equity Shares of face and paid-up value of INR 10 each to the shareholders of the Demerged Company (as on the Record Date i.e., October 15, 2025) in the ratio of 1:1 (one Equity Share of INR 10 each issued by the Resulting Company for every one Equity Share of INR 10 each held in the Demerged Company). Consequently, the Resulting Company ceased to be a subsidiary of SKF India Limited with effect from October 01, 2025. The equity shares of the Company are listed on BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE) in India on December 05, 2025.

B. Terms and conditions of transactions with related parties:

(i) The sales to and purchase from related parties are made on terms equivalent to those that prevail in arm's length transaction. Outstanding balances at the year end are unsecured and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables except for the loan given in prior years (transferred to SKF India (Industrial) Limited pursuant to the Scheme). For the year ended March 31, 2026, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2025: Nil).

(ii) Services rendered include renting services, technical, other services, etc.

(iii) Services received include administrative, IT services, royalty, trade-mark, other services etc.

(iv) Includes recoveries on account of employee cost, travel costs, training, IT services, etc.

(v) Managerial remuneration does not include cost of employee benefits such as gratuity and compensated absences since, provision for these are based on valuation carried out for the Company as a whole.

(vi) The related party transactions disclosed includes transactions till September 30, 2025 towards discontinued operations.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Assumptions regarding future mortality are set based on actuarial advice in accordance with published statistics and experience in each territory. These assumptions translate into an average life expectancy in years for a pensioner.

Expected contribution to post employment benefit plans for the FY 2025-26 is INR 50 Million (FY 2024-25 INR 80 Million).

Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level are as follows:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 - If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Valuation processes

The Company performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values.

43 Financial Risk Management Risk management framework

In the course of its business, the Company is exposed primarily to market risk, liquidity risk and credit risk, which may impact the fair value of its financial instruments. The Company has a risk management policy which not only covers the foreign exchange risks but also other risks associated with the financial assets and liabilities such as credit risks. The risk management policy is approved by the Board of Directors.

The Risk Management framework aims to create a stable business planning environment by reducing the impact of market related risks, credit risks & currency fluctuations on the Company's earnings.

The Company has exposure to the following risks arising from financial instruments:

• Credit risk;

• Liquidity risk; and

• Market risk

43 (A) Market risk

Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the, foreign currency exchange rates, liquidity and other market changes. Future specific market movements cannot be normally predicted with reasonable accuracy.

i) Foreign Currency risk

The Company transacts internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD, EUR and SEK. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company's functional currency (INR).

The Company has both import and export transactions in foreign currency. The imports are higher than the exports and hence the Company has foreign currency exposure to the extent of purchases being higher than exports, but any material variation in currency is recovered from the customers, through on going negotiation process. Thus the risk for currency fluctuation is mitigated.

iii) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company has unsecured sanctioned credit facilities comprising of working capital loan which carries fixed rate of interest and which do not expose it to interest rate risk. The borrowings also includes cash credit facilities which carries variable rate of interest.

The Company's has very limited exposure to borrowings.

The loan to related party is carried at amortised cost. The Company recovers interest as per the terms of the agreement. The interest rate approximates the market rate of interest and hence the interest risk for loan given to related party is not considered to be substantial.

43 (B) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to pay out obligations. Due to the dynamic nature of the underlying businesses, Company ensures availability of funds by managing the investments.

Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company's liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet this. The Company invests its surplus funds in bank fixed deposit and in quoted government debt securities.

43 (C) Credit risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness.

Credit risk management

For banks and financial institutions, only high rated banks / institutions are accepted.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. Especially the following indicators are incorporated:

- actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the counterparty ability to meet its obligations

- actual or expected significant changes in the operating results of the counterparty

- significant increase in credit risk on other financial instruments of the same counterparty

- significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit enhancements

The definition of default is determined by considering the business environment in which entity operates and other macro-economic factors. All receivables past due are analysed and based on scrutiny provisions for Bad Debts are made on specific identification basis.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk, being the total of the carrying amount of balances with bank, short term deposits with banks, trade receivables and other financial assets is disclosed at the end of the each reporting period. Refer relevant notes for details.

Financial assets that are neither past due nor impaired

None of the Company's cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade receivables and other receivables, and other financial assets that are neither impaired nor past due, there were no indications at the end of each reporting period, that defaults in payment obligations will occur.

The Company follows 12 months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date) model for recognition of impairment loss on financial assets measured at amortised cost other than trade receivables. The Company follows lifetime expected credit loss model (simplified approach) for recognition of impairment loss on trade receivables.

44 Capital Management

(a) Risk management

The company's objectives when managing capital are to

• Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

• Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity and short-term borrowings.

(b) Risk exposure

Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is in fixed income securities with high grades and in government securities. These are subject to interest rate risk and the fund manages interest rate risk to minimise risk to an acceptable level. A portion of the funds are invested in equity securities and in alternative investments which have low correlation with equity securities. The equity securities are expected to earn a return in excess of the discount rate and contribute to the plan deficit. The company has a risk management strategy where the aggregate amount of risk exposure on a portfolio level is maintained at a fixed range. Any deviations from the range are corrected by rebalancing the portfolio. The company intends to maintain the above investment mix in the continuing years.

Changes in bond yields

A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plans' bond holdings.

The company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term investments that are in line with the obligations under the employee benefit plans.

Within this framework, the company's ALM objective is to match assets to the gratuity obligations by investing in long-term fixed interest securities with maturities that match the benefit payments as they fall due.

The company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The company has not changed the processes used to manage its risks from previous periods. Investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets.

45 Share based payments

SKF’s Performance Share Programme

Aktiebolaget SKF (AB SKF), Sweden the ultimate holding company, as part of its Performance Share Program (PSP) offers stock awards to selected employees of its subsidiaries.

The shares of AB SKF, Sweden are listed with Nasdaq Stockholm Stock Exchange, Sweden. The awards issued are vested for a period of 3 years from the date of grant depending on the performance conditions. The terms and other conditions applicable to each award granted under the PSP are generally determined by the Group Management of AB SKF. The programme covers senior managers and key employees in the SKF Group, including Group Management, with the opportunity of being allotted, free of charge, SKF shares of series B. Under the programme, no more than 1,000,000 SKF shares of series B, may be allotted. Fulfilment % is decided by the Group Management based on the performance conditions met. The number of shares definitively vested will be calculated according to the fulfilment %.

The Annual General Meeting 2025 decided on SKF's Performance Share Programme 2025. The programme covers senior managers and key employees in the SKF Group, including Group Management, with an opportunity of being allotted, free of charge, SKF's B shares. Under the programme, not more than 1,000,000 SKF's B shares may be allotted. The allotment of shares shall be related to the level of achievement of the total value added (TVA) target, as defined by the Board of Directors, and the SKF Group's CDP Climate Change score. The TVA performance measure is weighted 80% and the CDP Climate Change score performance measure is weighted 20%. The performance period is three years. Over the three-year programme period, the TVA performance target range is set annually by the Board against the baseline of the actual TVA achieved in the previous year. In order for allocation of shares to take place the average TVA development must exceed a certain minimum level (the threshold level). In addition to the threshold level, a target level is set. Maximum allotment is awarded if the target level is reached or exceeded.

10% of the maximum allocation is based on the reduction of CO²e emissions. After the expiry of the financial year 2025, a comparison will be made of the level of CO²e emissions reduction achieved during the programme period and the net zero 2030 objective trajectory. If the trajectory reduction level is met or exceeded full allotment is awarded, i.e. 10% of the total maximum allotment under the programme. If the reduction does not meet the trajectory level, no allotment is awarded in relation to this part of the programme.

The CDP Climate Change score is based on an extensive questionnaire requiring disclosure and performance in the 11 different categories.

- Performance Categories

- Business strategy, financial planning & scenario analysis

- Emissions reduction initiatives

- Energy

- Governance

- Opportunity disclosure

- Risk disclosure

- Risk management processes

- Scope 1 & 2 emissions

- Scope 3 emissions

- Targets

- Value chain engagement

This comprehensive assessment and the resulting score are known across the investor and customer communities as a credible third-party view on companies' approaches to climate change.

The score ranges from A (leadership level) to D- (disclosure level). SKF received an A- score in 2025.

This is higher than the latest available average scores for Europe (B) and the metal product manufacturing sector (C). The overall performance achievement for the CDP Climate Change score is the weighted average of the annual performance achievement, based on the criteria in the table. For example, if SKF's CDP score is B in year 1, A- in year 2 and A in year 3, the overall performance achievement for the full programme period is 75% ((50% 75% 100%) / 3).

CDP Climate Change score Performance achievement

A 100%

A- 75%

B 50%

<B 0%

The CDP Climate Change score performance measure has a number of advantages:

• It covers all aspects of SKF's climate change approach.

• All functions in SKF have the potential to contribute to the achievement.

• The score is set by an external party and the bar is raised every year, reflecting increasing stakeholder expectations. Performance achievement will require continuous improvements.

• A well-recognized way of scoring how successful SKF is in the climate improvement work and is easy to compare with other companies using CDP-scoring.

Provided that the TVA increase reaches the target level and that the Net Zero 2030 objective is met, the participants of the programme may be allotted the following maximum number of shares per person within the various key groups:

• CEO and President: shares corresponding to a value of 75% of the fixed base salary

• Other members of Group Management: shares corresponding to 55% of the fixed base salary or 13,000 shares, whichever is higher

• Managers of large business units and similar: 4,500 shares

• Other senior managers: 3,000 shares

• Other key persons: 1,250 shares

The share-based compensation programmes of the Group are mainly equity-settled through the SKF Group's Performance Share programmes.

The fair value of the SKF's B share at grant date is calculated as the market value of the share excluding the present value of expected dividend payments for the next three years. Allotment of shares under SKF's Performance Share Programme requires that the persons covered by each of the programmes are employed in the SKF Group during the entire three year calculation period.

47 Additional regulatory information required by Schedule III

(i) Details of benami property held

No proceedings have been initiated on or are pending against the company under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) Borrowing secured against current assets

The Company has no borrowings from banks and financial institutions except for working capital limit sanctioned from banks.

(iii) Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(iv) Relationship with struck off companies

The Company has no transactions with the companies struck off under Companies Act, 2013.

(v) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(vi) Compliance with approved scheme(s) of arrangements

During the year, the Company vide its Board meeting held on 26 December 2024, basis the recommendation of Audit Committee and Independent Directors, approved the scheme of arrangements of the Company, SKF India (Industrial) Limited (“SKFIIL”) (a wholly owned subsidiary of the Company, which was incorporated on 17 December 2024) and their respective shareholders and creditors, providing for the demerger of the Company's Industrial Business to SKFIIL (“Proposed Transaction”) in compliance with sections 230 to 232 and other applicable provisions of the Companies Act, 2013.

Pursuant to this, the Company has received ‘no adverse observations' and ‘no objection' from BSE Limited and National Stock Exchange of India Limited, respectively. The Proposed Transaction is, inter alia, subject to receipt of requisite approvals from the statutory and regulatory authorities, including the approval from the shareholders and creditors of the Company and Hon'ble National Company Law Tribunal.

As the Demerger has completed in this financial year, the scheme has been given effect to in these financial statements w.e.f. October 01, 2025.

(vii) Utilisation of borrowed funds and share premium

The Company has not advanced or loaned or invested funds to any other person or entity, 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

The company has not received any fund from any person or entity, 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.

(viii) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(ix) Details of crypto currency or virtual currency

The company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(x) Valuation of Property Plant and Equipment, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year. All immovable property (including leases) are in the name of Company, except as disclosed in note no. 3(a)

48 The Company has facility from banks for

The Company has unsecured sanctioned facility (Fund and non-fund based) amounting to INR 1,729.4 Million (March 31, 2025 - INR 1,729.4 Million) and INR 5 Million (March 31, 2025 - INR 5 Million). The Company has not utilized fund based facility (working capital / working capital demand loan) at any time during the year.

49 The board of directors have proposed dividend after the balance sheet date which are subject to approval by the shareholders at the annual general meeting. Refer note 16.

50 The figures for the previous year have been regrouped / reclassified wherever necessary to confirm to the current year's presentation.