a) Unbilled dues as at 31 March 2026 is ^ Nil (previous year ^ Nil).
b) Refer note 38(A), note 38(B) and note 38(C) for information about credit risk, liquidity risk and market risk of trade receivables.
c) No trade or other receivables are due from directors or officers of the Company either severally or jointly with any other person, nor any trade or other receivables are due from firm or private companies respectively in which director is a partner, a director or a member.
d) Trade receivables are not interest bearing and are generally on credit terms in line with respective industry norms i.e. in between 0 to 75 days.
e) During the year, the Company made no write-offs of trade receivables, it does not expect to receive future cash flows or recoveries from trade receivables previously written off.
f) The net carrying value of trade receivables is considered a reasonable approximation of fair value.
(ii) Rights attached to equity shares:
a) The Company declares and pays dividend in Indian Rupee. The Board of Directors of the Company have declared an interim dividend of ^ 15 per share (150%) on the face value of ^ 10 each at the meeting held on 04 May 2026 (refer note 39(B)).
b) The equity shares are not repayable except in the case of a buy back, reduction of capital or winding up in terms of the provision of the Companies Act, 2013.
c) Every member of the Company holding equity shares has a right to attend the General Meeting of the Company and has a right to speak and shall have the right to vote in proportion to his share of the paid-up capital of the Company.
d) 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. The distribution will be in proportion to the number of equity shares held by the shareholders.
(iii) Rights attached to preference shares:
The Company has one class of preference share. The preference shares have preferred right on payment
of dividend and repayment of capital over equity shareholders. No preference shares are issued /
subscribed during the year or as at reporting date.
(iv) Details of allotment of shares for consideration other than cash, allotments of bonus shares
and shares bought back during past five years immediately preceeding 31 March 2026:
a) Aggregate number and class of shares allotted as fully paid up pursuant to contracts without payment being received in cash - Nil
b) Aggregate number and class of shares allotted as fully paid up by way of bonus shares - Nil
c) Aggregate number and class of shares bought back - Nil
Nature and purpose -Capital redemption reserve
The Company had issued preference shares in earlier years and accordingly capital redemption reserve has been created pursuant to the Companies Act 2013 and the same will be utilised as per the provisions of the Act.
Retained earnings
Retained earnings represents the profits that the Company has earned till date including gain / (loss) on fair value of defined benefits plans as adjusted for distributions to owners, transfer to other reserves etc.
(a) Also refer note 25 for movement in contract liabilities. There are no contract assets as at and for the year ended 31 March 2026 and 31 March 2025.
(b) Revenue is recognised on satisfaction of performance obligation upon transfer of control (as per the terms of contract) of promised goods to customers in an amount that reflects the consideration the Company expects to receive in exchange for those goods.
(c) All contracts with customers are for periods of one year or less. As per practical expedient given under Ind AS 115, the transaction price allocated to any unsatisfied contract at the end of the reporting periods is not disclosed.
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) 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 follows below.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. For example, listed equity instruments that have quoted market price.
Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the- counter derivatives) 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. This is the case for unlisted equity securities included in level 3.
During the periods mentioned above, there have been no transfers amongst the levels of hierarchy.
II. Valuation techniques used to determine fair value
Significant valuation techniques used to value financial instruments include :
The fair values for investment in mutual fund are based on the published NAV's and other financial assets/ liabilities are based on discounted cash flows using a discount rate determined considering Company's incremental borrowing rate.
The carrying amounts of all the above assets are considered to be approximately equal to the fair value.
III. Valuation process
The finance department of the Company performs the calculations of financial assets and liabilities required for financial reporting purposes. This team reports directly to the chief financial officer (CFO) of the Company. Discussions of valuation processes and results are held between the CFO and the finance team at least once every three months, in line with the quarterly reporting periods.
38 Financial risk management
The Company's principal financial liabilities comprise lease liabilities and trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include loans, trade and other receivables, investments and cash and cash equivalents and bank balances other than cash and cash equivalents that derive directly from its operations.
The Company is exposed to credit risk, liquidity risk and market risk. The Company's senior management oversees the management of these risks.
A Credit risk
The Company is exposed to credit risk from its operating activities (primarily for trade receivables) and from its financing activities (deposits with banks and other financial instruments).
Credit risk management
Trade receivables
To manage credit risk, the Company follows a policy of providing 0-75 days credit to the domestic and export customers basis the nature of customers. The credit limit policy is established considering the current economic trends of the industry in which the Company is operating. However, the trade receivables are monitored on a periodic basis for assessing any significant risk of non-recoverability of dues and provision is created accordingly.
Other financial assets
Bank balances are held with only high rated banks and majority of other security deposits are placed majorly with government agencies/public sector undertakings.
The Company periodically monitors the recoverability and credit risks of its other financial assets. The Company evaluates 12 months expected credit losses for all the financial assets for which credit risk has not increased significantly. In case credit risk has increased significantly, the Company considers life time expected credit losses for the purpose of impairment provisioning.
The Company has considered financial condition, current economic trends, forward looking macroeconomic information, analysis of historical bad or doubtful receivables and ageing of receivables related to cash and cash equivalents, bank balances, bank and margin deposits, security deposits and other financial assets. In most of the cases, risk is considered low since the counterparties are reputed organisations with no history of default to the Company and no unfavourable forward looking macro economic factors. Wherever applicable, expected credit loss allowance is recorded.
Financial assets (other than trade receivables) are written off (i.e., derecognised) when there is no reasonable expectation of recovery.
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. For the Company, liquidity risk arises from obligations on account of financial liabilities - lease liabilities and trade payables and other financial liabilities.
Liquidity risk management
The Company's corporate treasury department is responsible for liquidity and funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management of the Company. Management monitors the Company's net liquidity position through rolling forecasts on the basis of expected cash flows.
Market risk is the risk that the fair value of future cash flow of a financial instrument will fluctuate because of changes in market prices. Market risk comprise three types of risk: foreign currency risk, interest rate risk and price risk.
(i) Foreign currency risk
The Company is exposed to foreign exchange risk on its receivables and payables which are held in USD and EURO. The fluctuation in the exchange rate of INR relative to these currencies may have a material impact on the Company's assets and liabilities.
Foreign currency risk management
In respect of the foreign currency transactions, the Company does not hedge the exposures since the management believes that the same is insignificant in nature and also it will be offset to some extent by the corresponding receivables and payables.
(ii) Cash flows and fair value interest rate risk
Interest rate risk arises from the sensitivity of the financial liabilities to changes in market rate of interest. The entity's exposure to the risk of changes in market interest rate relates primarily to the current borrowings with floating interest rate.
The entity has not availed any current borrowings with floating interest rate during the year.
39 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.
The Company monitors its capital by using gearing ratio, which is net debt divided by total equity. Net debt includes non-current and current borrowings net of cash and cash equivalents. Total equity comprises of equity share capital, securities premium, general reserve, other comprehensive income and retained earnings.
1. There are no commitments with any related party during the year or as at the year end.
2. All the related party transactions are made on terms equivalent to those that prevail in arm's length transactions.
3. Foreign currency transactions are reported in INR using exchange rate as at the transaction date. Foreign currency balances as at year end are restated in INR using year end exchange rates.
4. All the amounts due to/ from related parties (as at year-end) are unsecured.
5. All the amounts due to/ from related parties (as at year-end) will be cash-settled.
6. Reimbursement of expenses to Holding Company includes reimbursement for salaries paid to CEO and CS by the Holding Company on behalf of the Company.
(*) ^ 0 lakh represents amount lower than ^ 1 lakh
(III) Salary and employee benefits
The KMPs are covered under Company's gratuity policy, compensated absences policy and bonus policy along with other eligible employees of the Company. Proportionate amount of gratuity and compensated absences expenses and provision for gratuity and compensated absences, which are measured on an actuarial basis are not mentioned in the aforementioned disclosures as these are computed for the Company as a whole.
41 Contingent liabilities and commitments
A. Contingent liabilities (claims against the company not acknowledged as debt)
(i) The Honourable Supreme Court, had passed a judgement on 28 February 2019 in relation to inclusion of certain allowances within the scope of "Basic wages" for the purpose of determining contribution to provident fund under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. The Company had been advised to wait for further clarifications in this matter in order to reasonably assess the impact on its financial statements, if any. Accordingly, the applicability of the judgement to the Company, with respect to the period and the nature of allowances to be covered, and resultant impact on the past provident fund liability, cannot be reasonably ascertained, at present. From November 2020, the Company has started making the deduction and payment of provident fund basis the revised definition of "basic wages". For the period 1 April 2019 to 31 October 2020 the Company has recognised a provision of ^ 14 lakhs as per the revised definition, for which it is awaiting further clarifications before depositing the same with the authorities.
(ii) Other money for which the Company is contingently liable - Income tax matters For Assessment Year 2017-18:
Income tax demand raised of ^ 26 lakhs under Section 143(3) of the IT Act for AY 2017-18 for non collection of Tax Collected at Source (TCS) and double disallowance of loss on sale of property, plant and equipment. This dispute is pending at the forum of Assistant Commissioner of Income Tax -Mumbai. In view of the facts of the case, the Company does not expect any liability in this regard.
(iii) Sales tax demand against the non submission of C forms / Value Added Tax (VAT) forms for the financial year 2011-12 and 2012-13 is ^ 15 lakhs. This dispute is pending at the forum of Deputy Commissioner of Commercial Taxes. In view of the facts of the case, the Company does not expect any liability in this regard.
(iv) The Company's factory building is constructed on leasehold land, lessor being SBL Industries Limited, which is under liquidation with its assets under control of the Official Liquidator. For most part of the land, the lease is valid till year 2081, while on some portion of the land, lease had expired, although Company continues to retain possession as monthly lessee. In the FY 2018-19, the Company had filed an application with the Hon'ble High Court requesting to be impleaded as a party. Based on past precedent, there is a reasonable possibility that the Company would be able to use the building for its entire balance useful life. Thus, possibility of any financial impact in the books of account appears to be remote and impairment may not be required.
B. Capital and other commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for as at
31 March 2026 is ^ Nil lakhs (31 March 2025: ^ 22 lakhs).
For lease commitments, refer note 47(v).
Notes:
1. The above disclosure has been made on the basis of information available with the Company.
2. It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings.
3. The amounts disclosed above represents the best possible estimates arrived at on the basis of the available information and do not include any penalty payable.
These assumptions were developed by the management with the assistance of independent actuarial appraisers. Discount factors are determined close to each year end by reference to government bonds of relevant economic markets and that have terms to maturity approximating to the terms of the related obligation. Other assumptions are based on management's historical experience.
The sensitivity analysis below have been determined based on a method that extrapolates the impact on net defined benefit obligation as a result of reasonable changes in an assumption occurring at the end of the reporting period while holding all other assumption constant. In practice it is unlikely to occur independent of each other and change 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. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.
(xi) General descriptions of significant defined plans:
The Company operates a gratuity plan under which eligible employees are entitled to benefits in accordance with the provisions of the applicable gratuity laws and the Company's scheme. The benefit is payable upon retirement, termination of employment or other events as specified under the applicable laws. The benefit vests based on the eligibility criteria prescribed under the applicable regulations. The scheme is funded through a qualifying insurance policy with an insurance Company.
(2) Provident Fund (PF) :
The Company operates provident fund plan wherein every employee is entitled to the benefit of interest etc. as per scheme of the Company. The same is determined based on a fixed percentage of the eligible employees' salary and charged to the statement of profit and loss on accrual basis.
The sensitivity analysis below have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in an assumption occurring at the end of the reporting period while holding all other assumptions constant. In practice it is unlikely to occur independent of each other and change 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. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.
The liablity of ^ 42 lakhs (previous year: ^ 53 lakhs) is classified as current in accordance with the guidance note issued by ICAI on Schedule III to the Companies Act 2013.
43 Segment reporting
a) Business segment
The Company is primarily engaged in manufacturing of bearings and other activities having similar economic characteristics, primarily operating within India and regularly reviewed by the Chief Operating Decision Maker for assessment of Company's performance and resource allocation. For the purpose of disclosure of segment information as per Ind AS 108 "Operating Segments", the Company considers these operations as a single business segment as all the product groups are mainly having similar risks and returns.
The information relating to revenue from external customers and location of non-current assets of its single business segment has been disclosed as below:
50 Other statutory information
i. The Company does not have any transactions and outstanding balances during the current as well as previous year with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
ii. The Company has not been declared a willful defaulter by any bank.
iii. The Company does not have any benami property, where any proceedings are initiated or are pending against the Company for holding any benami property.
iv. The Company has not traded or invested in crypto currency or virtual currency during the financial year.
v. The Company has not received any fund from any person or entiy including foreign entities (funding party) with the understanding (whether recording 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 to or on behalf of the ultimate beneficiary.
vi. The Company has sanctioned borrowings/facilities from bank on the basis of security of current assets. The monthly returns or statements of current assets filed by the Company with bank are in agreement with the books of account.
vii. During the year, the Company has not disclosed or surrendered, any income other than the income recognised in the books of account in the tax assessments under Income Tax Act, 1961.
viii. The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) to any other person or entity, including foreign entity ('Intermediaries') with the understanding (whether recorded in writing or otherwise) 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.
ix. The Ministry of Corporate Affairs (MCA) had prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring companies, which use accounting software for maintaining their books of account, to use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
During the year ended 31 March 2026 and 31 March 2025, the audit trail (edit log) feature for any direct changes made at the database level was not enabled for the accounting software used for maintenance of books of account. However, the audit trail (edit log) at the application level for the accounting software was enabled and operating for all relevant transactions recorded in the software.
51 Authorisation of financial statements
The financial statements as at and for the year ended 31 March 2026 were approved by Board of Directors on 04 May 2026.
The accompanying notes form an integral part of these financial statements As per our audit report of even date attached
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