(xx) Provisions, Contingent Liabilities and Contingent Assets

Provisions represent liabilities for which the amount or timing is uncertain.
Provisions are recognized when the Company has a present obligation (legal or
constructive) as a result of past events, it is probable that an outflow of resources
will be required to settle the obligation and in respect of which a reliable
estimate can be made of the amount of obligation. Provisions are not
discounted to its present value and are determined based on best estimates
required to settle the obligation at the reporting date. These are reviewed at
each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed when there is a possible obligation arising from
past events, the existence of which will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within the
control of the Company or a present obligation that arises from past events
where it is either not probable that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot be made. Information on
contingent liabilities is disclosed in the Notes to the standalone financial
statements. Contingent assets are not recognized but disclosed in the
standalone financial statements. However, when the realisation of income is
virtually certain, then the related asset is no longer a contingent asset, but it is
recognised as an asset.

(xxi) Exceptional Items

When items of income and expense within standalone statements of profit and
loss from ordinary activities are of such size, nature or incidence that their
disclosure is relevant to explain the performance of the enterprise for the period,
the nature and amount of such material items are disclosed separately as
exceptional items.

(xxii) Earnings per Share

Basic Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss
(excluding other comprehensive income) for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding
during the year. The weighted average number of equity shares outstanding
during the year is adjusted for events such as bonus issue, bonus element in a
right issue, shares split and reverse share splits (consolidation of shares) that have
changed the number of equity shares outstanding, without a corresponding
change in resources.

Diluted Earnings per shares

For the purpose of calculating diluted earnings per share, the net profit or loss
(excluding other comprehensive income) for the year attributable to equity
share holders and the weighted average number of shares outstanding during
the year are adjusted for the effects of all dilutive potential equity shares.

(xxiii) Operating Segments

The company is mainly engaged in the business of manufacturing and selling of
Bearing Rollers & other allied activities from which it may earn revenues and incur
expenses, whose operating results are regularly reviewed by the Company’s
Chief Operating Decision Maker (“CODM”) to make decisions for which discrete
financial information is available. Based on the management approach as
defined in Ind AS 108, the CODM evaluates the Company’s performance and
allocates resources based on an analysis of various performance indicators by
business segments and geographic segments.

There are no other primary reportable segments applicable to the company and
the company has only one geographical segment i.e. India.

(xxiv) Material accounting Estimates, Judgments and assumptions

The preparation of the Company’s financial statements in conformity with Ind AS
requires the management to make estimates and assumptions that affect the
reported amounts of revenues, expenses, assets & liabilities, the accompanying
disclosures, and the disclosure of contingent liabilities at the date of financial
statements and the reported amounts of income and expenses during the year.

The management believes that these estimates are prudent and reasonable
and are based upon the management’s best knowledge of current events and
actions. Actual results could differ from those estimates and difference between
actual results and estimates are recognised in the periods in which the results are
known materialized.

Estimates and judgements are reviewed on an ongoing basis. 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 circumstance. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and future periods
are affected.

This note provides an overview of the areas that involved a comparatively 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.

i) Property, plant and equipment, investment properties and intangible assets:

Property, plant and equipment represents a significant proportion of the asset
base of the Company. The charge in respect of periodic depreciation is derived
after determining an estimate of an assets expected useful life and the
expected residual value at the end of its life. The useful lives and residual values
of the Company’s assets are determined by the management at the time the
asset is acquired and reviewed periodically, including at each financial year
end. The lives are based on historical experience with similar assets as well as
anticipation of future events, which may impact their life, such as changes in
technology.

ii) Income tax:

Significant judgments are involved in determining the provision for income taxes,
including the amount expected to be paid or recovered in connection with
uncertain tax positions.

iii) Contingencies:

Management has estimated the possible outflow of resources at the end of
each annual reporting financial year, if any, in respect of contingencies / claim /
litigations by / against the Company as it is not possible to predict the outcome
of pending matters with accuracy.

iv) Deferred Taxes:

Deferred tax is recorded on temporary differences between the tax bases of
assets and liabilities and their carrying amounts, at the rates that have been
enacted or substantively enacted at the reporting date. The ultimate realisation
of deferred tax assets is dependent upon the generation of future taxable profits
during the periods in which those temporary differences and tax loss carry
forwards become deductible. The Company considers the expected reversal of
deferred tax liabilities and projected future taxable income in making this
assessment. The amount of the deferred tax assets considered realisable,
however, could be reduced in the near term if estimates of future taxable
income during the carry forward period are reduced.

v) Impairment of financial assets:

At each balance sheet date, based on historical default rates observed over
expected life, existing market conditions as well as forward looking estimates, the
management assesses the expected credit losses on outstanding receivables.
Further, management also considers the factors that may influence the credit risk
of its customer base, including the default risk associated with industry and
country in which the customer operates.

vi) Impairment of Non-financial assets:

Where the carrying amount of an asset or CGU exceeds its recoverable amount
(fair value less costs of disposal or its value in use), the asset is considered
impaired and is written down to its recoverable amount. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre¬
tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. In determining fair value less cost of
disposal, recent market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples or other available fair value
indicators.

vii) Defined benefit obligation:

The cost of the defined benefit plans, compensated absences and the present
value of the defined benefit obligations are based on actuarial valuation using
the projected unit credit method. 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 complexities involved in the valuation and its long¬
term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date.

viii) Leases:

Determining the lease term of contracts with renewal and termination options -
Company as lessee Ind AS 116 requires the lessee to determine the lease term as
the non-cancellable term of the lease, together with any periods covered by an
option to extend the lease if it is reasonably certain to be exercised, or any
periods covered by an option to terminate the lease, if it is reasonably certain
not to be exercised.

The Company has several lease contracts that include extension and
termination options. The Company applies judgement in evaluating whether it is
reasonably certain whether or not to exercise the option to renew or terminate
the lease. That is, it considers all relevant factors that create an economic
incentive for it to exercise either the renewal or termination. After the
commencement date, the Company reassesses the lease term if there is a
significant event or change in circumstances that is within its control and affects
its ability to exercise or not to exercise the option to renew or to terminate (e.g.,
construction of significant leasehold improvements or significant customisation to
the leased asset). When it is reasonably certain to exercise extension option and
not to exercise termination option, the Company includes such extended term
and ignore termination option in determination of lease term.

The Company cannot readily determine the interest rate implicit in the lease,
therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities.
The Company has taken indicative rates from its bankers and used them for Ind
AS 116 calculation purposes.

ix) Provisions:

Provision is recognised when the Company has a present obligation as a result of
past event and it is probable that an outflow of resources will be required to
settle the obligation, in respect of which a reliable estimate can be made.

Provisions (excluding retirement obligation and compensated expenses) are not
discounted to its present value and are determined based on best estimate
required to settle obligation at the balance sheet date. These are reviewed at
each balance sheet date adjusted to reflect the current best estimates.

x) Fair value measurements:

Management applies valuation techniques to determine fair value of financial
assets and liabilities (where active market quotes are not available). This involves
developing estimates and assumptions around volatility and dividend yield etc.
which may affect the value of financial assets and liabilities. Estimates and
judgements are continuously evaluated. These are based on historical
experience and other factors including expectation of future events that may
have a financial impact on the Company and that are believed to be
reasonable under the circumstances.

xi) Impairments of assets:

In assessing impairment, management estimates the recoverable amounts of
each asset (in case of non-financial assets) based on expected future cash flows
and uses an interest rate to discount them. Estimation uncertainty relates to
assumptions about future cash flows and the determination of a suitable
discount rate.

xii) Allowances for slow / Non-moving Inventory and obsolescence:

An allowance for Inventory is recognised for cases where the realisable value is
estimated to be lower than the inventory carrying value. The inventory
allowance is an estimate taking into account various factors, including prevailing
sales prices of inventory item and losses associated with usability/ obsolete /
slow-moving / redundant inventory items. The Company has, based on these
assessments, made adequate provision in the books.

xiii) Events after report date

Where events occurring after the balance sheet date provide evidence of
conditions that existed at the end of the reporting period, the impact of such
events is adjusted within the financial statements. Where the events are
indicative of conditions that arose after the reporting period, the amounts are
not adjusted, but are disclosed if those non-adjusting events are material.

For ANIL PAREKH & CO. FOR, VISHAL BEARINGS LTD.

Chartered Accountants
FRN: 128503W

CA Anil K. Parekh D. G. Changela D. H. Changela

Partner Managing Director Whole Time Director

MRN.126862 DIN: 00247302 DIN: 00247364

Place: Rajkot V. V. Changela K. V. Savaliya

Date: 26th May, 2025 Chief Financial Officer Company Secretary

UDIN: 25126862BMNYUM7348_Date: 26.08.2025_Place: Shapar, Rajkot