Notes to Accounts of Benara Bearings & Pistons Ltd.

Mar 31, 2025

2.13 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when there is a present obligation as a result of a past event and it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable
estimate of the amount of obligation.

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 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 the obligation or a reliable estimate of the amount cannot be made.

2.14 Leases

Where the Company is the lessor

Assets given on operating leases are included in fixed assets. Lease income is recognised in the statement of profit
and loss on a straight-line basis over the lease term. Costs, including depreciation are recognised as an expense in the
statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognised immediately
in the statement of profit and loss.

Where the Company is the lessee

Leases where the lesser effectively retains substantially all the risks and benefits of ownership of the leased items, are
classified as operating leases. Operating lease payments are recognised as an expense in the statement of profit and
loss on a straight-line basis over the lease term.

2.15 Employee Benefits:

Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the services are classified as short-term
employee benefits. These benefits include salaries and wages, bonus, ex-gratia and compensated absences such as
paid annual leave. The undiscounted amount of short-term employee benefits expected to be paid in exchange for
the services rendered by employees is charged to the Statement of profit and loss in the period in which such services
are rendered.

Post-employment benefits

Defined contribution plan

The Company makes contributions, determined as a specified percentage of employee salaries, in respect of
qualifying employees towards Provident Fund, which is a defined contribution plan. The Company has no
obligations other than to make the specified contributions. The contributions are charged to the Statement of
profit and loss as they accrue.

Defined Benefit Plan

Provision for gratuity is provided based on Actuarial Valuation made. Short Term Employee Benefits like leave
benefit, if any, are paid along with salary and wages on a month to month basis, bonus to employees are
charged to profit and loss account on the basis of actual payment on year to year basis.

(b) Terms/ rights attached to Equity Shares: The Company has only one class of equity shares. Each holder of Equity
Shares is entitled to one vote per share. The dividend proposed, if any by the Board of Directors is subject to approval
of the shareholders in ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of the 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.

(f) Terms and rights attached to Equity Shares:

The Company has only one class of Equity Shares having a Face Value of ? 10/- per share. Each holder of Equity Shares
is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. 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.

Note 27: Other notes of accounts and additional information pursuant to the provisions of the Companies Act, 2013 to
the extent applicable -

i. The previous year''s figures have been reworked, rearranged and reclassified wherever considered necessary.
Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the
current year financial statements and are to be read in relation to the amounts and other disclosures relating to
the current year.

ii. All items of receipts and payments, Income & Expenditure wherever details, vouchers, supporting and or any
sort of evidences not available are hereby approved confirmed, authenticated and certified by the
management.

iii. Additional information pursuant to the provisions of the Companies Act, 2013 to the extent applicable-

Notes:

1. The related party relationships have been determined on the basis of the requirements of the Indian
Accounting Standard (Ind AS) -24 ''Related Party Disclosures'' and the same have been relied upon by the
auditors.

2. The relationships as mentioned above pertain to those related parties with whom transactions have taken
place during the current year /previous year, except where control exists, in which case the relationships have
been mentioned irrespective of transactions with the related party.

Transactions with Related Parties

The Company is having investments in Shares of Group Companies which has been carried over from previous
financial year. There is no further investment in the shares of Group Companies in Current Financial Year. Details of
said related party transactions together with amount paid/invested has been provided herein below -

i) Micro, Small & Medium Enterprises

As per the information available with the Company and certified by them, total outstanding due to Small
Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006
at the end of the year is Rs. Nil (Nil).

j) In the opinion of the Board, Current Assets, Loans and Advances have a value on realisation in the ordinary
course of business, at least equal to the amount at which they are stated.

k) The outstanding balances of Sundry Debtors, Sundry Creditors, and loans & advances are subject of
confirmation and reconciliation/ consequential adjustment, if any.

l) During the year the Company has faced significant challenges and delays in recovery from long term loan and
advances. Keeping in view the delays and the company will take legal opinion with Management and the
provision to be made.

m) Due to the financial constraints, there is delay in payment to Bank /financial institution. Therefor Bank has mark
NPA. However, the company has made applied for restructure of its loan accounts. In some cases where there
are disputes with the lenders, the management has decided not to provide interest which proposed to be
provided at the time of settlement/ payment. Accordingly, the loss for the year and loan liability has been
understated to the extents.

n) All items of receipts and payments, Income & Expenditure wherever details, vouchers, supporting and or any
sort of evidences not available are hereby approved confirmed, authenticated and certified by the management.

O) During the year, the company has melted some of the stocks which were non-moving or rejected that has
resulted in significant loss and reduction in value of stocks. This being technical matter, we are unable to check
and verify the loss on this account.

p) The Company''s operations like any other suffered on account of COVID-19 pandemic including lockdown
imposed by the Government. There have been challenges in getting the financial support from Company''s
working capital lenders under various support measures announced by the Government. The Company has not

been able to fill the cash flow gap through additional equity resources posing threat to its smooth business
operations and debt servicing obligations. The Company is continuing to make earnest efforts to smoothen the
cash flow bumps causing supply chain disruptions by either scaling down the business volumes or arranging the
increased requirement of financial resources from its banks or other lenders. The management feels that the
situation is controllable hence the going concern concept on the basis of which the financial statements are
drawn, remains valid.

q) Due to supply chain disruption, factory closure during lockdowns and later low scale operations due to COVID-
19 restrictions which resulted in challenges in meeting commitments to customers for the supplies and after
sales services, the payments from the customers have been delayed with occasional counter claims. The
Company believes that as effect of the pandemic on the overall economy and business, the operating cycle
which is assumed at 1 year for its accepted accounting policy has to be accepted at one and half years due to
elongation of trade cycles across economy.

r) No impairment loss provision is considered necessary for Company''s investment in its subsidiaries as these are
long terms strategic investments.

s) With respect to the disclosure requirements notified by MCA pursuant to amended Schedule Ill, the Company
reports the following:

i. The title deeds of immovable Property are held In name of the Company.

ii. The Company has not revalued it''s Property, Plant and Equipment during the financial year.

iii. No Loans or Advances in the nature of loans have been granted to promoters, directors, KMPs and the
related parties of the Company except Loan to wholly owned subsidiary.

iv. The Company does not have any Capital-Work-In Progress (CWIP) and Intangible assets under
development during the financial year.

t) The Company does not have any Benami property, where any proceeding has been Initiated or pending against
the Company for holding any Benami property.

u) The Company is not declared as-wilful defaulter by any bank or financial institution or other lender.

v) The Company does not have any transactions with companies that were struck off under section 248 of the

Companies Act, 2013 or section 560 of Companies Act, 1956

w) The Company does not have any downstream companies and hence nothing to report against compliance with
number of layers of companies.

x) During the year, no scheme of arrangements in relation to the company has been approved by the competent
authority in terms of sections 230 to 237 of the Companies Act, 2013. Since there was no such transaction during
the year, aforesaid disclosures are not applicable.

y) The Company has no transaction to report against utilisation of borrowed funds and share premium,

z) The Company does not have any transaction which is not recorded In the books of accounts that has been

surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961.

aa) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(bb) Previous year''s figures have been regrouped/ reclassified wherever necessary to correspond with current year''s
classification/ presentation.

Notes:

1. Both the provision and stock write-off increased net losses. Accumulated losses eroded equity, resulting in negative
equity and a negative debt-equity ratio (b)

2. Provision for Bad debts charged to Profit /Loss Account and hence increases in losses and higher losses reduced
shareholder''s equity (d)

3. Net income declined due to higher provisions and exceptional losses (h)

4. Provision for bad debts and stock write-off materially reduced net profit (i)

5 Operating profit reduced due to provision for bad debts (j)

For Agarwal Jain and Gupta For & on behalf of the Board of Directors

Chartered Accountants
Firm Registration No. 013538C

Sd/- Sd/-

Vivek Benara Panna Lal Jain

Sd/- Managing Director Director

CA Sarwan Kumar Prajapati DIN : 00204647 (DIN: 00204869)

Partner
M. No.199969

UDIN: 25199969BMINZA3205

Place: Agra
Date: July 28, 2025

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Mar 31, 2018

Note # 1

Additional information pursuant to the provisions of the Companies Act, 2013 to the extent applicable —

I. The previous year’s figures have been reworked, rearranged and reclassified wherever considered necessary. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

II. Additional information pursuant to the provisions of the Companies Act, 2013 to the extent applicable -

Note: - Being No. of Items of stock is voluminous; therefore it is not possible to provide the quantitative data.

(a) Employee benefits:

The Company has adopted the Accounting Standard 15 (revised 2005) on Employee Benefits as per an actuarial valuation carried out by an independent actuary in financials. The disclosures as envisaged under the standard are as under:-

(b) Contingent liabilities and Commitments

As per the information available & explanations provided to us by the management -

(c) Segment Reporting

Company’s operating Businesses, organized &Managed unit wise, according to the nature of the products and services provided, are recognized in segments representing one or more strategic business units that offer products or services of different nature and to different Markets.

(d) Micro, Small and Medium Enterprises

As per the information available with the Company and certified by them, total outstanding due to Small Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 at the end of the year is Rs. Nil (Nil).

(e) In the opinion of the Board, Current Assets, Loans and Advances have a value on realization in the ordinary course of business, at least equal to the amount at which they are stated.

(f) The outstanding balances of Sundry Debtors, Sundry Creditors, and loans & advances are subject of confirmation and reconciliation/ consequential adjustment, if any.