1.14 Provisions

Provisions for legal claims, service warranties,
volume discounts and returns are recognised when
the company has a present legal or constructive
obligation as a result of past events, it is probable that
an outflow of resources will be required to settle the
obligation and the amount can be reliably estimated.
Provisions are not recognised for future operating
losses.

Provisions are measured at the present value of
management's best estimate of the expenditure
required to settle the present obligation at the end
of the reporting period. The discount rate used to
determine the present value is a pre-tax rate that
reflects current market assessments of the time value
of money and the risks specific to the liability. The
increase in the provision due to the passage of time is
recognised as interest expense.

1.15 Post employment benefits
Employee benefits

i) Short-term obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within 12 months after the end of the
period in which the employees render the related
service are recognised in respect of employees'
services up to the end of the reporting period
and are measured at the amounts expected
to be paid when the liabilities are settled. The
liabilities are presented as current employee
benefit obligations in the balance sheet.

ii) Other long-term employee benefit obligations

The liabilities for earned leave and sick leave
are not expected to be settled wholly within
12 months after the end of the period in which
the employees render the related service. They
are therefore measured as the present value of
expected future payments to be made in respect
of services provided by employees up to the end
of the reporting period using the projected unit
credit method. The benefits are discounted using
the market yields at the end of the reporting period
that have terms approximating to the terms of
the related obligation. Remeasurements as a
result of experience adjustments and changes in
actuarial assumptions are recognised in profit or
loss.

The obligations are presented as current liabilities
in the balance sheet if the entity does not have
an unconditional right to defer settlement for at
least twelve months after the reporting period,
regardless of when the actual settlement is
expected to occur.

iii) Post-employment obligations

The company operates the following post¬
employment schemes:

a) defined benefit plans such as gratuity and
provident fund (for employees who are
members of SKF India Limited Provident
Fund Scheme)

b) defined contribution plans such as
superannuation and provident fund (for
other employees who are not members of
SKF India Limited Provident Fund Scheme)

Defined Benefit Plans

The liability or asset recognised in the balance
sheet in respect of gratuity and provident fund

is the present value of the defined benefit
obligation at the end of the reporting period less
the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries
using the projected unit credit method.

With respect to employees who are members of
SKF India Limited Provident Fund Scheme (‘the
Trust') contribution for provident fund to the
Trust is a defined benefit plan as the Company
has an obligation to make good the shortfall, if
any, between the return from investments made
by the Trust and notified interest rate. Both the
employee and the Company make monthly
contributions to the provident fund plan equal
to a specified percentage of the employee's
salary. The rate at which the annual interest is
payable to the beneficiaries by the trust is being
administered by the government.

The present value of the defined benefit obligation
is determined by discounting the estimated
future cash outflows by reference to market yields
at the end of the reporting period on government
bonds that have terms approximating to the
terms of the related obligation.

The net interest cost is calculated by applying
the discount rate to the net balance of the
defined benefit obligation and the fair value of
plan assets. This cost is included in employee
benefit expense in the statement of profit and
loss.

Remeasurement gains and losses arising
from experience adjustments and changes in
actuarial assumptions are recognised in the
period in which they occur, directly in other
comprehensive income. They are included in
retained earnings in the statement of changes in
equity and in the balance sheet.

Changes in the present value of the defined
benefit obligation resulting from plan
amendments or curtailments are recognised
immediately in profit or loss as past service cost.

Defined contribution plans

Contributions to the Provident Fund and
Superannuation Fund which are defined
contribution schemes, are recognised as an
expense in the Statement of Profit and Loss
in the period in which the contribution is due.
For employees other than members of SKF
India Limited Provident Fund Scheme, both the
Company's and employees' contribution is paid
to Regional Provident Fund Commissioner (RPFC)

on a monthly basis. The Company has no further
payment obligations once the contributions have
been paid.

iv) Bonus Plans

The Company recognises a liability and an
expense for bonuses. The company recognises
a provision where contractually obliged or
where there is a past practice that has created a
constructive obligation.

v) Employee Stock Awards:

Certain employees of the Company receive
remuneration in the form of equity settled
instruments given by the ultimate holding
company (AB SKF), for rendering services over
a defined vesting period. Equity instruments
granted are measured by reference to the fair
value of the instrument at the date of grant. The
expense is recognized in the statement of profit
and loss with a corresponding increase to the
share based payment reserve, as a component
of equity. The fair value determined at the grant
date is expensed over the vesting period of the
respective tranches of such grants. The stock
compensation expense is determined based on
the Company's estimate of equity instruments
that will eventually vest.

vi) Termination benefits

Voluntary Retirement Scheme costs are charged
off to the Statement of Profit and Loss in the year
in which they are incurred.

1.16 Contributed Equity

Equity shares are classified as equity

Incremental costs directly attributable to the issue
of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.

1.17 Earnings per share

The basic earnings per share is computed by dividing
the net profit attributable to the equity shareholders
for the period by the weighted average number of
equity shares outstanding during the reporting period.
Diluted EPS is computed by dividing the net profit
attributable to the equity shareholders for the year by
the weighted average number of equity and equivalent
diluted equity shares outstanding during the year,
except where the result would be anti dilutive.

1.18 Contingent liabilities

A contingent liability is disclosed in respect of a
possible obligation that arise from past events whose
existence will be confirmed only on the occurrence or

non-occurrence of one or more uncertain future events
not wholly within the control of the Company or from a
present obligation that arises from past events which
are not recognised because:

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

b) the amount of the obligation cannot be measured
with sufficient reliability

1.19 Rounding of amounts

All amounts disclosed in the financial statements and
notes have been rounded off to the nearest million as
per the requirement of Schedule III, unless otherwise
stated.

2 Significant accounting judgements, estimates and
assumptions

The preparation of the Company's financial statements
requires management to make judgements, estimates
and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and
the accompanying disclosures, and the disclosure of
contingent liabilities. This note provide an overview of
the areas that involve a higher degree of judgement or
complexity and of items which are more likely to be
materially adjusted due to estimates and assumptions
turning out to be different than those originally
assessed. Detailed information about each of these
estimates and judgements is mentioned below.

Estimates and judgements are continually evaluated.
They are based on historical experience and other
factors, including expectations of future events
that may have a financial impact on the company
and that are believed to be reasonable under the
circumstances.

2(A) Significant Judgement
a) Tax Contingencies

The Company has received orders and notices
from tax authorities in respect of direct taxes and
indirect taxes. The outcome of these matters may
have a material effect on the financial position,
results of operations or cash flows. Management
regularly analyzes current information about
these matters and provides provisions for
probable contingent losses including the
estimate of legal expense to resolve the matters.
In making the decision regarding the need for loss
provisions, management considers the degree of
probability of an unfavourable outcome and the
ability to make a sufficiently reliable estimate of
the amount of loss. The filing of a suit or formal

assertion of a claim against the Company or the
disclosure of any such suit or assertions, does
not automatically indicate that a provision for a
loss may be appropriate.

2(B) Significant estimate

a) Impairment of financial assets

The impairment provisions for financial assets
are based on assumptions about risk of default
and expected loss rates and timing of the cash
flows. The company uses judgement in making
these assumptions and selecting the inputs to the
impairment calculation, based on the company's
past history, existing market conditions as well
as forward looking estimates at the end of each
reporting period.

b) Fair valuation of financial instruments

When the fair values of financial assets and
financial liabilities recorded in the balance sheet
cannot be measured based on quoted prices in
active markets, their fair value is measured using
valuation techniques including the discounted
cash flow model. The inputs to these models are
taken from observable markets where possible,
but where this is not feasible, a degree of
judgement is required in establishing fair values.
Judgements include considerations of inputs
such as liquidity risk, credit risk and volatility.
Changes in assumptions about these factors
could affect the reported fair value of financial
instruments. See Note 32 for further disclosures.

c) Defined benefit plan

The cost of the defined benefit gratuity plan,
other retirement benefits, the present value
of the gratuity obligation and other retirement
benefit obligation are determined using actuarial
valuations. An actuarial valuation involves
making various assumptions that may differ from
actual developments in the future. These include
the determination of the discount rate, future
salary increases and mortality rates. Due to the

Note - Loan given to SKF Engineering and Lubrication India Private Limited (a fellow subsidiary) (formerly known as SKF
Technologies (India) Private Limited) with original repayment starting from financial year 2014 onwards. During the previous
year, the repayment terms of the loan are extended till 2029.

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. 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.

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.

(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 upto 18 months.

i) 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.

(ii) Valuation processes

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

33 Financial risk management

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.

33 (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).

iii) Interest rate risk

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.

33 (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.

All the financial liabilities are due within 12 months. The carrying value of all the financial liabilities as on
respective dates is considered as its maturity value since the impact of discounting is not significant.

33 (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.

The aging of trade receivable as on standalone balance sheet date is given below. The age analysis has been
considered from the date when the invoices were due for payment.

34 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.

I n 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.

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 80 Million (FY 2024-25 INR 80
Million).

ii) Provident Fund

The Company has an obligation to fund any shortfall on the yield of the trust's investments over the administered
interest rates on an annual basis. These administered rates are determined annually predominantly considering
the social rather than economic factors. The actuary has provided a valuation and based on the below provided
assumptions, shortfall recognised in the Statement of Profit and Loss during the year is INR 132.3 million (previous
year NIL million).

V 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.

* Including interest of INR 1,427 Million (March 31, 2024 INR 1,342 Million) as per the demand order.

(i) Income Tax :- 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 a Final assessment order for the Financial Year 2019-20 and Financial
year 2020-21 (Assessment Year 2020-21 and Assessment year 2021-22) u/s 143(3) read with section 144C(13)
read with section 144B of the Income Tax Act, 1961 (“Act”) from the Assessing officer resulting in an adjustment
of INR 794.65 million and 554.56 million respectively towards Transfer Pricing addition and an adjustment of INR
28.21 million and 36.76 million respectively towards disallowance of claim of health and education cess. The
Company has preferred an appeal before the Income-tax Appeallate Tribunal against the adjustment, and the
same is pending to be heard.

During the year Company has received the following penalty orders for various years & under the various sections
of Income Tax Act, 1961.

1. INR 106 Million - Penalty on account of disallowance of claim of education cess in final Assessment order u/s
271(1)C for FY 2014-15.

2. INR 5.7 Million - Penalty on account of disallowance of claim of education cess in final Assessment order u/s
271AA(1) for FY 2014-15.

3. INR 15.9 Million - Penalty on account of disallowance of claim of education cess in final Assessment order u/s
271AA(1) for FY 2019-20.

4. INR 3.6 Million - Penalty on account of disallowance of claim of education cess in final Assessment order u/s
270(A) for FY 2019-20.

I n response to the assessment order, the Company has filed appeals with the Commissioner of Income Tax
(Appeals).

(ii) GST Service Tax -Sales Tax :- The Company has outstanding disputes with Indirect Tax authorities mainly relating
to VAT, Service tax and GST.

(iii) Customs Duty During the previous year 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, 2025.

39. 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 a maximum of 225 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 allotment of shares shall be related to the level of achievement of the Total Value added (TVA) target level, as defined
by the Board of Directors, and the SKF Group Net Zero 2030 objective. 90% of the maximum allocation of shares under
the programme is based on the level of TVA increase. The allocation of shares is based on the level of TVA increase during
the financial years 2022-2024 compared to the financial year 2021. In order for allocation of shares to take place the TVA
increase 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 2024, 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.

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 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.

* Represents adjustments made by AB SKF, the ultimate holding company, pursuant to realignment of employees' entitlement
in accordance with the fulfilment %.

Since the plan is administered and controlled by the Holding Company, the above information is presented only to the extent
available with the Company.

40. Segment information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief operating decision
maker. The Board of Directors has been identified as the Chief operating decision maker (CODM).

The Company operates in only one business segment viz. ‘Bearings'. This is the principal activity for the Company. The
segment revenue is measured in the same way in Statement of Profit and Loss.

(ink in million;

46. 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 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 not consummated yet and is subject to the requisite approvals, the scheme has not been given
effect to in these financial statement.

(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.

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

For and on behalf of the Board of Directors of SKF India Limited

Gopal Subramanyam Mukund Vasudevan

Chairman Managing Director

DIN :- 06684319 DIN :-05146681

Place :- Gothenberg Place :- Gothenberg

Ashish Saraf Ranjan Kumar

Chief Financial Officer Company Secretary

PAN :-AVEPS0176L PAN :-AMEPK5869R

Place :- Bengaluru Place :- Pune

Date: May 15, 2025