l. Provisions and Contingencies
Provisions

Provisions are recognised when there is a present
obligation (legal or constructive) as a result of past
event, where it is probable that there will be
outflow of resources to settle the obligation and
when a reliable estimate of the amount of the
obligation can be made. The expense relating to a
provision is presented in the statement of profit
and loss.

The amount recognised as a provision is the best
estimate of the consideration required to settle the
present obligation at the end of the reporting
period, taking into account the risks and
uncertainties surrounding the obligation.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax
rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to the passage of
time is recognised as a finance cost.

Contingencies

Contingent liabilities exist 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 or the amount cannot be reliably
estimated. Contingent liabilities are appropriately
disclosed unless the possibility of an outflow of
resources embodying economic benefits is
remote.

m. Financial Instruments

A financial instrument is any contract that gives
rise to a financial asset of one entity and a
financial liability or equity instrument of another
entity.

Financial Assets

(i) Initial recognition and measurement

Financial assets are classified, at initial
recognition, and subsequently measured at

amortised cost, fair value through other
comprehensive income (OCI), and fair
value through profit or loss.

The classification of financial assets at initial
recognition depends on the financial asset’s
contractual cash flow characteristics and
the Company’s business model for
managing them.

With the exception of trade receivables that
do not contain a significant financing
component or for which the Company has
applied the practical expedient, the
Company initially measures a financial
asset at its fair value plus, in the case of a
financial asset not at fair value through profit
or loss, transaction costs. Trade receivables
that do not contain a significant financing
component or for which the Company has
applied the practical expedient are
measured at the transaction price
determined under Ind AS 115. Refer to the
accounting policies in section (B)(a)
Revenue from contracts with customers.

In order for a financial asset to be classified
and measured at amortised cost or fair
value through OCI, it needs to give rise to
cash flows that are ‘solely payments of
principal and interest (SPPI)’ on the
principal amount outstanding. This
assessment is referred to as the SPPI test
and is performed at an instrument level.
Financial assets with cash flows that are not
SPPI are classified and measured at fair
value through profit or loss, irrespective of
the business model.

The Company’s business model for
managing financial assets refers to how it
manages its financial assets in order to
generate cash flows. The business model
determines whether cash flows will result
from collecting contractual cash flows,
selling the financial assets, or both.
Financial assets classified and measured at
amortised cost are held within a business
model with the objective to hold financial
assets in order to collect contractual cash
flows while financial assets classified and
measured at fair value through OCI are held
within a business model with the objective of
both holding to collect contractual cash
flows and selling.

Purchases or sales of financial assets that
requires delivery of assets within a time
frame established by regulation or
convention in the marketplace (regular way

trades) are recognised on the trade date,
i.e., the date that the Company commits to
purchase or sell the asset.

(ii) Subsequent measurement

All recognised financial assets are
subsequently measured in their entirety at
either amortised cost or fair value,
depending on the classification of the
financial assets.

(iii) Financial assets at amortised cost

A ‘Financial Asset’ is measured at its
amortised cost if both the following
conditions are met:

a) The asset is held within a business
model whose objective is to hold
assets for collecting contractual cash
flows, and

b) Contractual terms of the asset give rise
on specified dates to cash flows that
are solely payments of principal and
interest (SPPI) on the principal
amount outstanding.

After initial measurement, such financial
assets are subsequently measured at
amortised cost using the effective interest
rate (EIR) method and are subject to
impairment as per the accounting policy as
applicable to ‘Impairment of financial
assets’. Amortised cost is calculated by
taking into account any discount or
premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR
amortisation is included in other income in
the statement of profit or loss. The losses
arising from impairment are recognised in
the statement of profit or loss. The
Company’s financial assets at amortised
cost includes trade receivables and other
financial assets.

(iv) Financial assets at fair value through
profit or loss (FVTPL)

FVTPL is a residual category for financial
assets. Any financial assets, which does not
meet the criteria for categorization as at
amortized cost or as FVTOCI, is classified
as at FVTPL. Financial assets included
within the FVTPL category are measured at
fair value with all changes recognized in the
statement of profit and loss.

(v) Equity Instruments

All equity investments in scope of Ind AS

109 are measured at fair value. Equity
instruments which are held for trading and
contingent consideration recognised by an
acquirer in a business combination to which
Ind AS 103 applies are classified as at
FVTPL. For all other equity instruments,
other than investment in Subsidiary, the
Company makes an irrevocable election to
present in other comprehensive income
subsequent changes in the fair value. The
Company makes such election on an
instrument-by-instrument basis. The
classification is made on initial recognition
and is irrevocable.

(vi) Derecognition

A financial asset (or, where applicable, a
part of a financial asset or part of a company
of similar financial assets) is primarily
derecognised (i.e., removed from the
Company’s balance sheet) when:

- The rights to receive cash flows from
the asset have expired, or

- The Company has transferred its rights
to receive cash flows from the asset or
has assumed an obligation to pay the
received cash flows in full without
material delay to a third party under a
‘pass-through’ arrangement; and
either (a) the Company has transferred
substantially all the risks and rewards
of the asset, or (b) the Company has
neither transferred nor retained
substantially all the risks and rewards
of the asset, but has transferred
control of the asset.

When the company has transferred its rights
to receive cash flows from an asset or has
entered into a pass-through arrangement, it
evaluates if and to what extent it has
retained the risks and rewards of ownership.
When it has neither transferred nor retained
substantially all of the risks and rewards of
the asset, nor transferred control of the
asset, the company continues to recognise
the transferred asset to the extent of the
Company’s continuing involvement. In that
case, the company also recognises an
associated liability. The transferred asset
and the associated liability are measured on
a basis that reflects the rights and
obligations that the Company has retained.

Continuing involvement that takes the form
of a guarantee over the transferred asset is
measured at the lower of the original

carrying amount of the asset and the
maximum amount of consideration that the
company could be required to repay.

(vii) Impairment of financial assets

The Company assessed the expected credit
losses associated with its assets carried at
amortised cost and fair value through profit
and loss based on the Company’s past
history of recovery, credit worthiness of the
counter party and existing and future market
conditions.

For all financial assets other than trade
receivables, expected credit losses are
measured at an amount equal to the 12-
month expected credit loss (ECL) unless
there has been a significant increase in
credit risk from initial recognition in which
case those are measured at lifetime ECL.
The Company applied the expected credit
loss (ECL) model for measurement and
recognition of impairment losses on trade
receivables. For trade receivables, the
Company follows simplified approach for
providing expected credit losses as
prescribed by Ind AS 109, which permits the
use of the lifetime expected loss provision
for all trade receivables. The Company has
computed expected losses based on a
provision matrix which uses historical credit
loss experience of the Company and where
applicable, specific provision are made for
individual receivables.

(viii) Reclassification of financial assets

The Company determines classification of
financial assets and liabilities on initial
recognition. After initial recognition, no
reclassification is made for financial assets
which are equity instruments and financial
liabilities. For financial assets which are
debt instruments, a reclassification is made
only if there is a change in the business
model for managing those assets.

Financial Liabilities

(ix) Initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair
value through profit or loss, loans and
borrowings, payables, as appropriate.

All financial liabilities are recognised initially
at fair value and, in the case of loans and
borrowings and payables, net of directly
attributable transaction costs.

The Company’s financial liabilities include
trade payables, loans and borrowings
including bank overdrafts, other financial
liabilities and financial guarantee contracts.

(x) Subsequent measurement

The measurement of financial liabilities
depends on their classification, as
described below:

(xi) Financial liabilities at fair value through
profit or loss

Financial liabilities at fair value through
profit or loss include financial liabilities held
for trading and financial liabilities
designated upon initial recognition as at fair
value through profit or loss. Financial
liabilities are classified as held for trading if
they are incurred for the purpose of
repurchasing in the near term. This category
also includes derivative financial
instruments entered into by the Company
that are not designated as hedging
instruments in hedge relationships as
defined by Ind AS 109. Gains or losses on
liabilities held for trading are recognised in
the profit or loss.

(xii) Financial liabilities at amortised cost

After initial recognition, interest-bearing
loans and borrowings are subsequently
measured at amortised cost using the EIR
method. Gains and losses are recognised in
the statement of profit and loss when the
liabilities are derecognised as well as
through the EIR amortisation process.

Amortised cost is calculated by taking into
account any discount or premium on
acquisition and fees or costs that are an
integral part of the EIR. The EIR
amortisation is included as finance costs in
the statement of profit and loss. This
category generally applies to borrowings.

(xiii) Derecognition

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing
financial liability is replaced by another from
the same lender on substantially different
terms, or the terms of an existing liability are
substantially modified, such an exchange or
modification is treated as the derecognition
of the original liability and the recognition of
a new liability. The difference in the
respective carrying amounts is recognised

(xiv) Offsetting of financial instruments

Financial assets and financial liabilities are
offset and the net amount is reported in the
Balance Sheet if there is a currently
enforceable legal right to offset the
recognised amounts and there is an
intention to settle on a net basis, to realise
the assets and settle the liabilities
simultaneously.

n. Investment in Associates

An associate is an entity over which the Company
has significant influence. Significant influence is
the power to participate in the financial and
operating policy decisions of the investee but is
not control or joint control over those policies.

The Company’s investments in its associates are
accounted at cost less impairment. The Company
reviews its carrying value of investments carried
at cost annually, or more frequently when there is
indication for impairment. If the recoverable
amount is less than its carrying amount, the
impairment loss is recorded in the Statement of
Profit and Loss.

When an impairment loss subsequently reverses,
the carrying amount of the Investment is
increased to the revised estimate of its
recoverable amount, so that the increased
carrying amount does not exceed the cost of the
Investment. A reversal of an impairment loss is
recognised immediately in Statement of Profit or
Loss.

o. Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short¬
term deposits with an original maturity of three
months or less, that are readily convertible to a
known amount of cash and subject to an
insignificant risk of changes in value.

For the purpose of the statement of cash flows,
cash and cash equivalents consist of cash and
short-term deposits, as defined above, net of
outstanding bank overdrafts as they are
considered an integral part of the Company’s cash
management.

p. Earnings per share (EPS)

Basic EPS is calculated by dividing the profit or
loss attributable to equity shareholders of the
Company by the weighted average number of
equity shares outstanding during the period.
Diluted EPS is determined by adjusting the profit
or loss attributable to equity shareholders and the

weighted average number of equity shares
outstanding adjusted for the effects of all dilutive
potential equity shares.

q. Segment Reporting

Operating segments are reported based on the
internal reporting provided to the chief operating
decision maker (CODM). The chief operating
decision-maker assesses the financial
performance and position of the Company as a
whole and makes strategic decisions. The
Company operates in one reportable business
segment i.e., “Industrial Business”.

r. Borrowing Cost

Borrowing costs directly attributable to the
acquisition, construction or production of an asset
that necessarily takes a substantial period of time
to get ready for its intended use or sale (qualifying
asset) are capitalised as part of the cost of the
asset. All other borrowing costs are expensed in
the period in which they occur. Borrowing costs
consist of interest and other costs that an entity
incurs in connection with the borrowing of funds.
Borrowing cost also includes exchange
differences to the extent regarded as an
adjustment to the borrowing costs.

s. Current Versus Non-Current Classification

The Company presents assets and liabilities in
the balance sheet based on current/ non-current
classification. An asset is treated as current when
it is:

- Expected to be realised or intended to be
sold or consumed in normal operating cycle

- Held primarily for the purpose of trading

- Expected to be realised within twelve
months after the reporting period, or

- Cash or cash equivalent unless restricted
from being exchanged or used to settle a
liability for at least twelve months after the
reporting period

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal
operating cycle

- It is held primarily for the purpose of trading

- It is due to be settled within twelve months
after the reporting period, or

- There is no unconditional right to defer the
settlement of the liability for at least twelve
months after the reporting period

The Company classifies all other liabilities as non¬
current.

Deferred tax assets and liabilities are classified as
non-current assets and liabilities.

The operating cycle is the time between the
acquisition of assets for processing and their
realization in cash and cash equivalents. The
Company has identified twelve months as its
operating cycle.

t. Events after the reporting period

If the Company receives information after the
reporting period, but prior to the date of approved
for issue, about conditions that existed at the end
of the reporting period, it will assess whether the
information affects the amounts that it recognises
in its separate financial statements. The
Company will adjust the amounts recognised in
its financial statements to reflect any adjusting
events after the reporting period and update the
disclosures that relate to those conditions in light
of the new information. For non-adjusting events
after the reporting period, the Company will not
change the amounts recognised in its separate
financial statements but will disclose the nature of
the non-adjusting event and an estimate of its
financial effect, or a statement that such an
estimate cannot be made, if applicable.

C. Climate Related Matters:

The Company considers climate-related matters
in estimates and assumptions, where appropriate
and based on its overall assessment, believes
that the climate-related risks might not currently
have a significant impact on the Company.
However, the Company will continue to closely
monitor relevant changes and developments,
such as any new climate-related legislation as
and when they become applicable.

3. Significant Accounting judgements, estimates and
assumptions:

In the application of the Company’s accounting policies,
which are described in Note 2, Management is required
to make judgements, estimates and assumptions about
the revenues, expenses, assets and liabilities and the
accompanying disclosures, and the disclosure of
contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes
that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.
The estimates and associated assumptions are based
on historical experience and other factors that are
considered to be relevant. Actual results may differ from
these estimates.

The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the
estimates are revised if the revision affects only that
period or in the period of the revision and future periods
if the revision affects both current and future periods.

Estimates and assumptions

The key assumptions concerning the future and other
key sources of estimation uncertainty at the reporting
date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year, are described
below. The Company based its assumptions and
estimates on parameters available when the
Standalone Ind AS financial statements were prepared.
Existing circumstances and assumptions about future
developments, however, may change due to market
changes or circumstances arising that are beyond the
control of the Company. Such changes are reflected in
the assumptions when they occur.

(a) Estimation of useful life of Property, Plant and
Equipment and intangible assets

The Company has estimated useful life of each
class of assets based on the nature of assets, the
estimated usage of the asset, the operating
condition of the asset, past history of
replacement, anticipated technological changes,
etc. The Company reviews the useful life of
property, plant and equipment and intangible
assets as at the end of each reporting period. This
reassessment may result in change in
depreciation and amortisation expense in future
periods.

(b) Contingent Liabilities

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. Further details about
Contingent Liabilities are given in Note 33.

(c) Estimation of Defined Benefit Obligation

The cost of the defined benefit plan and the
present value of the defined 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
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.

The calculation is most sensitive to changes in the
discount rate. In determining the appropriate
discount rate for plans operated in India, the
management considers the interest rates of
government bonds where remaining maturity of
such bond correspond to expected term of
defined benefit obligation.

The mortality rate is based on publicly available
mortality tables. Those mortality tables tend to
change only at interval in response to
demographic changes. Future salary increases
and gratuity increases are based on expected
future inflation rates. Further details about
employee benefit obligations are given in Note
35.

(d) Impairment of Trade Receivables

The Company applies the expected credit loss
(ECL) model for measurement and recognition of
impairment losses on trade receivables. The
Company follows simplified approach to
providing for ECL prescribed by Ind AS 109,
which permits the use of the lifetime ECL
provision for all trade receivables. The Company
has computed ECL provision based on a
provision matrix which uses historical credit loss
experience of the Company. The amount of ECLs
is sensitive to changes in circumstances and the
Company’s historical credit loss experience may
also not be representative of customer’s actual
default in the future. Details of impairment
provision on other financial assets and trade
receivables are given in Note 11.

(e) Fair value measurement of financial
instruments

When the fair values of financial assets or
financial liabilities recorded or disclosed in the
financial statements cannot be measured based

on quoted prices in active markets, their fair value
is measured using valuation techniques including
the DCF model. The inputs to these models are
taken from observable markets where possible,
but where this is not feasible, a degree of
judgment is required in establishing fair values.
Judgements include consideration 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.
Refer Note 40 for further disclosures.

4. (a) New and amended standards adopted by the

Company:

The Ministry of Corporate Affairs (MCA) had
issued the Companies (Indian Accounting
Standards) (Amendment) Rules, 2024 amending
the following Ind AS, which are effective for
annual periods beginning on or after April 1,2024:

- Ind AS 116 ‘Leases’ - This amendment
specifies the requirements that seller-
lessee uses in measuring the lease liability
arising in a sale and leaseback transaction,
to ensure the seller-lessee does not
recognise any amount of the gain or loss
that relates to the right of use it retains.

- Ind AS 117 ‘Insurance Contracts’ - It is a
comprehensive new accounting standards
which replaces the Ind AS 104 ‘Insurance
Contracts’. It applies to all types of
Insurance Contracts, regardless of the type
of entities that issue them as well as to
certain guarantees and financial
instruments with discretionary participation
features.

These amendments do not have a material
impact on the financial statements.

(b) Standards notified but not yet effective:

There are no standards that are notified and not
yet effective as on the date.

Footnotes:

1) There is no immovable property (other than properties where the Company is the lessee and the lease agreements are
duly executed in favour of the lessee) held by the Company.

2) None of the Company’s Property, plant and equipment, intangible asset and right of use assets were revalued during the
year.

3) During the year the company entered intercompany agreement with NRB Bearings Limited for release of the right to use
the immovable property. Accordingly, the assets having WDV of Rs. 88.06 lakhs were released as per the Intercompany
agreement. This has been considered as exceptional item. Refer Note 42 for details on exceptional item.

4) Assets pledged as security

(i) Loan taken by the Company are secured by a first pari passu charge over immovable property, plant and equipment
(buildings), leasehold land of the Company and its movable fixed assets at its factory at Shendra (near Aurangabad)
against the sanction fund and non fund based facility of Rs. 1,500 Lakhs. (March 31,2024 Rs. 1,500 Lakhs). Refer
Note 17A and Note 17B on Borrowings.

(ii) Loan taken by associate companies NRB - IBC Bearings Private Limited of Rs. 775 Lakhs [outstanding as at March
31, 2025 is Rs. 628.31 Lakhs (as at March 31, 2024 is Rs. 458.98 Lakhs)] and NIBL-Korta Engineering Private
Limited of Rs. 300 Lakhs [outstanding as at March 31,2025 is Rs. 290.18 Lakhs (as at March 31,2024 is Rs. 188.94
Lakhs)] are secured by a second pari passu charge over immovable property, plant and equipment (buildings),
leasehold land of the Company and its movable fixed assets at its factory at Shendra (near Aurangabad).

5) On transition to Ind AS (April 1, 2016), the Company has elected to consider fair value as deemed cost for plant and
machinery recognised as at April 1,2016. For other items of Property, Plant and Equipment, the Company has not elected
the exemption of previous GAAP carrying value consequently, cost in respect of other items of Property, Plant and
Equipment has been retrospectively remeasured in accordance with Ind AS.

6) Also refer Note 32 (2) for assets given under operating lease to a related party.