Notes to Accounts of Galaxy Bearings Ltd.

Mar 31, 2025

8.1 The cost of inventories recognised as an expense during the year was Rs. In Lakhs Nil. (As at March 31, 2024: RS. In Lakhs Nil)

8.2 The cost of inventories recognised as an expenses includes Rs. In Lakhs Nil (during 2023-24 Rs. In Lakhs Nil) in respect of write-down of inventory to net realisable value, and has been reduced by Rs. In Lakhs Nil (during 2023-24 : Rs. In Lakhs Nil) in respect of the reversal of such write-down.

8.3 Inventory of Raw Material includes Material in Transit as on 31-03-2025 of Rs. In Lakhs Nil (as on 31-03-2024 Rs. In Lakhs Nil).

8.4 Inventory of Finished Stock Includes Goods in Transit- as on 31-03-2025 Rs.ln Lakhs Nil (as on 31-03-2024 Rs. In Lakhs

mill._

(c) The company has only one class of shares referred to as Equity shares having face value of Rs. 10/-. Each Holder of equity share is entitled to 1 vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholder.

Retained earnings: The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the separate financial statements of the Company and also considering the requirements of the Companies Act, 2013.

General Reserve: General Reserve is created from time to time by transfer of profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

Other Comprehensive Income: The remeasurement gain / (loss) on net defined benefit plans is recognised in Other Comprehensive Income net of tax.

19.2 The company has not entered in to any transaction with companies struck off under section 248 of the Companies

_Act,2013._

19.3 Under the Micro, Small and Medium Enterprises Development Act, 2006, {MSMED} which came in to force from 02.10.2006, certain disclosers are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with management, outstanding dues to the Micro and Small enterprise as defined in the MSMED Act, 2006 are disclosed as below and this has been reiled upon by the Auditor.:

The above fair value hierarchy 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 for which fair values are disclosed in the financial statements. To provide the indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments in to three levels prescribed is as under;

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilties

Level 2 - Inputs other than quoted prices included within Level 1 that are observable forthe asset or liabilty, either directly (i.e. as prices ) or indirectly (i.e. derived from prices)

Level 3 - In puts for the assets or liabilties that are not based on observable market data (unobservable inputs)

There were no transfers between the levels during the year Valuation process

The finance department of the Company includes a team that performs the valuations of financial assets and liabilties required for financial reporting purposes. Including level 3 fair values. The fair valuation of level 1 and level 2 classified assets and liabilties are readily available from the quoted pricies In the open market and rates available In secondary market respectively. The valuation method applied for various financial assets and liabilties are as follows -

1. Quoted price in the primary market (NAV) considered for the fair valuation of the current investment i.e Mutual fund. Gain / (loss) on fair valuation is recognised in profit and loss.

2. The carrying amount of trade receivable, trade pable, cash and bank balances, short term loans and advances, statutory/ receivable, short term borrowing, employee dues are considered to be the same as their fair value due to their short-term nature.

37 Financial risk management

The Company has exposure to the following risks arising from financial instruments:

I Credit Risk

II Liquid Risk

III Market Risk

Risk Management Framework

The Company''s risk management is governed by policies and approved by the board of directors. Company''s identifies, evaluates and hedges financial risks in close co-operation with the Company''s operating units. The company has policies for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments.

The audit committee oversees how management monitors compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

I Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to credit risk at the reporting date is primarily from trade receivables and loans to related parties. Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. On account of the adoption of Ind AS 109, the company uses ECL model to assess the impairment loss or gain. The company uses a provision matrix to compute the ECL allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors and the company''s experience for customers. The company has assessed that credit risk on loans given is insignificant based on the empirical data.

The credit risk on cash and bank balances and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.

The Company reviews trade receivables on periodic basis and makes provision for doubtful debts if collection is doubtful. The Company also calculates the expected credit loss (ECL) for non-collection of receivables. The Company makes additional provision if the ECL amount is higher than the provision made for doubtful debts. In case the ECL amount is lower than the provision made for doubtful debts, the Company retains the provision made for doubtful debts without any adjustment.

The provision for doubtful debts including ECL allowances for non-collection of receivables and delay in collection, on a combined basis, was Rs. In Lakhs 36.55 as at March, 2025 and Rs. In Lakhs 3.27 as at March 31, 2024. The movement in allowances for doubtful accounts comprising provision for both non-collection of receivables and delay in collection is as follows:

II Liquid Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assesment of maturity profiles of financial assets and libilities including debt financing plans and maintainance of balance sheet liquidity ratios are considered while reviewing the liquidity position.

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

Ill Market Risk

Market risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market factors. Market risk comprises three type of risks:

a) Currency Risk

b) Interest Risk

c) Price Risk

a) Currency Risk

The functional currency of the Company is Indian Rupee. The Company is exposed to currency risk on account of payables and receivables in foreign currency. Company is exposed to currency risk on account of payables and receivables in foreign currency. The average exports account for 44.72 % (P.Y. 73.36%) of total sales which perceived to be a major risk. The imports Purchase is Rs. In Lakhs 47.18 (P.Y. Rs. In Lakhs 199.09).

Company does not use derivative financial instruments for trading or speculative purposes.

b) Interest Risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

According to the Company interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s assessment of the reasonably possible change in interest rates.

38 Capital management

The Company''s capital management is intended to maximise the return to shareholders and benefits for other stakeholders for meeting the long-term and short-term goals of the Company; and reduce the cost of capital through the optimization of the capital structure i.e. the debt and equity balance.

The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

40 Contingent liabilities

a. Estimated amount of contract to be executed on Capital Account of Rs. In Lakhs Nil (P.Y. Rs. In Lakhs 332.00) (Against which the Company has paid Rs. In Lakhs Nil (P.Y.Rs. In Lakhs 159.41).

b. Disputed Demand for VAT of Rs. In Lakhs 19.55 (P.Y. Rs. In Lakhs 27.8S) under Gujarat Value Added Tax Act.

c. Disputed Demand for GST of Rs. In Lakhs 26.04 (P.Y. Rs. In Lakhs 26.04) under Gujarat Value Added Tax Act. Against which company has paid under protest of Rs. In

Lakhs 26.04 (P.Y. Rs, In Lakhs 26.04), which are shown under "Balance with govt'' Auhorities under Other Current Assets"

d. There are certain pending labour & Employees cases against the Company, for which amount is not ascertainable.

41 Segment Reporting

The Company''s management, consisting of the chief executive officer, the chief financial officer and the manager for corporate planning, monitors the operating results of the below business segments separately for the purpose of making decisions about resource allocation and performance assessment and accordingly, based on the principles for determination of segments given in Indian Accounting Standard 103 "Operating Segments "and in the opinion of management the Co, is primarily engaged in the business of Ball & Roller Bearings. All other activities of the Co. revolve around the main business and as such there is no separate reportable business segment.

The operations of the company are confined to India as well as outside India with export contributing to 44.08 % (P.Y. 74.73%) of annual turnover. Hence in view of the management India and exports market represents different geographical segment.

Reason for material Variance :

1. Details given to Bank are based on unaudited books of accounts immediately after the end of each quarter, hence due to clerical mistake there are difference occurred.

2. Year End Difference in Debtors and Stock is due to IMP AS 115 Effect given for reversal of Sales form books._

46 On October 30, 2024, OFAC sanctioned the Company under E.O. 14024 for exporting high priority dual-use equipment to Russia (i.e., goods on the "Common High Priority Items List" or "CHPILâ), This designation resulted in Galaxy Bearing Limited being placed on Office of Foreign Assets Control (OFAC''s) List of Specially Designated Nationals and Blocked Persons ("SDN List"). OFAC mentioned that the Company has contributed or provided, directly or indirectly, funds, goods, technology, or services by, to, or for the benefit of any individual or entity appearing on OFAC''s SDN List.

The Company took immediate action upon learning of the sanctions and given intimation to Stock Exchange via Ref. No. Galaxy/SEC/24-25/41 dated November 06, 2024 with repect to Company''s name features in the sanctions list of the United States Department of Treasury published on 30th October, 2024 and stated that Company was "totally unaware of any Roller Bearings being used or associated with sanctioned entities or individuals.

During the period 30th October''2024 to 3Lst March 2025, the Company was unable to access USD & EURO through the official market due to OFAC Sanctioned. The company is in the process of removal of its name from the sanctions list of the United States Department of Treasury Published and has appointed a legal advisor for the purpose.

47 Borrowing cost attributable to the acquistion or construction of Qualifying Assets amounting to Rs. In Lakhs 17.50 (Previous Year Rs. In Lakhs 2.37) is capitalized by the company.

48 Previous year''s figures have been regrouped and rearranged wherever necessary, to make them comparable with those of current year. The impact of such regrouping is not material to the financial statements.

Mar 31, 2024

XVII. Provisions, Contingent Liabilities and Contingent Assets :

The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event exists and it is probable that an outflow of resources embodying economic benefits will be required to settle such obligation and the amount of such obligation can be reliably estimated. If the effect of 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 recognized as a finance cost. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources embodying economic benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources embodying economic benefits is remote, no provision or disclosure is made. Contingent assets are not recognised but disclosed where an inflow of economic benefits is probable.

XVIII. Taxes on Income :

a) Current tax:

Current tax is determined on income for the year chargeable to tax in accordance on the basis of the tax laws enacted or substantively enacted at the end of the reporting period. Current tax items are recognised in correlation to the underlying transaction either in profit or loss or OCI or directly in equity. The Company has provided for the tax liability based on the significant judgment that the taxation authority will accept the tax treatment.

b) Deferred tax:

Deferred tax is recognised for all the timing differences and is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date. Deferred tax assets are recognised for all deductible temporary differences, unabsorbed losses and tax credits to the extent that it is probable that future taxable profits will be available against which those deductible temporary differences, unabsorbed losses and tax credits will be utilised. Other deferred tax assets are recognized if there is reasonable certainty that there will be sufficient future taxable profit available to realise such assets. Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

XIX. Segment reporting:

The Chief Operational Decision Maker (CODM) monitors the operating results of its business Segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Operating segments are reported in a manner consistent with the internal reporting to the CODM.

Accordingly, the Board of Directors of the Company is CODM for the purpose of segment reporting. Refer Note No. 40 for segment information presented.

XX. Leases :

As a Lessee

At inception of a contract, the company assesses whether a contract is, or contains, a lease. A contract is or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the company assesses whether: (i) the contract involves the use of an identified asset (ii) the company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and (iii) the company has the right to direct the use of the asset.

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of Property, Plant and Equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Companyâs incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

The lease liability is subsequently measured as given below:

It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Companyâs estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-to-use assets and lease liabilities for short-term lease that have a lease term of 12 months or less and leases of low-value assets. The Company recognises the lease payments associated with these leases as expense on straight line basis as per the terms of the lease.

XXI. Standards issued but not yet effective

The Ministry of Corporate Affairs has not notified any amendments during the year under Companies (Indian Accounting Standards) Amendment Rules, 2022.

With respect to amendments made vide notification no. G.S.R 255(E) dated 31^st March 2023 by The Ministry of Corporate Affairs for Companies (Indian Accounting Standards) Amendment Rules,2022. There was no material impact on the financial statements of the company during the financial year with respect to the said IND AS amendment related to Ind AS 1 - Presentation of Financial Statements, Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors & Ind AS 12 - Income Taxes.

37 Financial risk management

The Company has exposure to the following risks arising from financial instruments:

I Credit Risk

II Liquid Risk

III Market Risk

Risk Management Framework

I Credit Risk

II Liquid Risk

Ill Market Risk

Market risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market factors. Market risk comprises three type of risks:

a) Currency Risk

b) Interest Risk

c) Price Risk

a) Currency Risk

The functional currency of the Company is Indian Rupee. The Company is exposed to currency risk on account of payables and receivables in foreign currency. Company is exposed to currency risk on account of payables and receivables in foreign currency. The average exports account for 76.60% (P.Y. 73.36%) of total sales which perceived to be a major risk. The imports Purchase is Rs. 199.09 Lakhs (P.Y. Rs. 87.06 Lakhs).

Company does not use derivative financial instruments for trading or speculative purposes.

b) Interest Risk

As per our report of even date attached herewith.

For, J. T. Shah & Co. "For & on behalf of the Board of Directors" of

Chartered Accountants GALAXY BEARINGS LIMITED

{Firm Regd. NO.109616W)

(Kartikkumar Patel) (B. K. Ghodasara)

Director Whole Time Director

{N. C. Shah) (DIN: 10118898) (DIN:00032054)

Partner

{M.No. 035159) _

(Dixit S. Patel)

Place : Ahmedabad Chief Financial Officer

Date : 24/05/2024_

Mar 31, 2023

(a) Assets pledged as Security : Immovable properties of the company Secured by Equitable Mortgage of Fixed Assets both Movable S Immovable.

(b) Capitalised Borrowing Cost: Borrowing Cost Capitalised on Property, Plant and Equipment during the year Rs.Nil (PY. Rs.Nil).

(c) Contractual Obligations: Refer Note.33 for disclosure of Contractual Commitments for the acquisition of property, Plant & Equipment.

(d) Title deeds of immovable property (other than proper taken on lease by duly executed lease agreement) are held in the name of the company.

(e) No proceedings have been initiated or pending against the company for holding any benami property under the Benami transactions (Prohibition) Act,1988 (45 of 1988) and the rules made thereunder.

8.1 The cost of inventories recognised as an expense during the year was Rs. Nil. (As at March 31, 2022: RS. Nil)

8.2 The cost of inventories recognised as an expenses includes Rs. Nil (during 2021-22 Rs.Nil ) in respect of write-down of inventory to net realisable value, and has been reduced by Rs. Nil (during 2021-22 : Rs. Nil) in respect of the reversal of such write-down.

8.3 Inventory of Raw Material includes Material in Transit as on 31-03-2023 of Rs, Nil (as on 31-03-2022 Rs, Nil).

8.4 Inventory of Finished Stock Includes Goods in Transit- as on 31-03-2023 Rs. Nil (as on 31-03-2022 Rs. Nil).

10.2 The company has entered in to transaction with companies struck off under section 248 of the Companies Act,2013. (Refer note: 41 (f))

(c) The company has only one class of shares referred to as Equity shares having face value of Rs. 100/-. Each Holder of equity share is entitled to 1 vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of ail preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholder.

Other Comprehensive Income: The remeasurement gain / (loss) on net defined benefit plans is recognised in Other Comprehensive Income net of tax,

The above fair value hierarchy 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 for which fair values are disclosed in the financial statements. To provide the indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments in to three levels prescribed is as under:

Level I - Quoted prices (unadjusted) in active markets for identical assets or liabilties

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liabilty, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3 - Inputs for the assets or liabilties that are not based or observable market data (unobservable inputs)

There were no transfers between the levels during the year Valuation process

The finance department of the Company includes a team that performs the valuations of financial assets and liabilties required for financial reporting purposes, including level 3 fair values. The fair valuation of level 1 and level 2 classified assets and liabilties are readily available from the quoted pricies in the open market and rates available in secondary market respectively. The valuation method applied for various financial assets and liabilties are as follows -

1. Quoted price in the primary market (NAV) considered for the fair valuation of the current investment i.e Mutual fund. Gain / (loss) on fair valauation is recognised in profit and loss.

35 Financial risk management

The Company has exposure to the following risks arising from financial instruments:

I Credit Risk

II Liquid Risk

III Market Risk

Risk Management Framework

I Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to credit risk at the reporting date is primarily from trade receivables and loans to related parties. Credit risk has always been managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. On account of the adoption of Ind AS 109, the company uses ECL model to assess the impairment loss or gain. The company uses a provision matrix to compute the ECL allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors and the companyâs experience for customers. The company has assessed that credit risk on loans given is insignificant based on the empirical data.

The provision for doubtful debts including ECL allowances for non-collection of receivables and delay in collection, on a combined basis, was Rs. (0.07) Lacs as at March, 2023 and Rs. 1.69 Lacs as at March 31, 2022. The movement in allowances for doubtful accounts comprising provision for both non-collection of receivables and delay in collection is as follows:

II Liquid Risk

III Market Risk

Market risk is the risk that the fair value or future cash flow of a financial instrument will fluctuate because of changes in market factors. Market risk comprises three type of risks:

a) Currency Risk

b) Interest Risk

c) Price Risk

a) Currency Risk

The functional currency of the Company is Indian Rupee. The Company is exposed to currency risk on account of payables and receivables in foreign currency. Company is exposed to currency risk on account of payables and receivables in foreign currency. The average exports account for 73.36 % (P.Y. 70.92%) of total sales which perceived to be a major risk. The imports Purchase is Rs. 87.06 Lacs (P.Y. Rs. 73.67 Lacs).

Company does not use derivative financial instruments for trading or speculative purposes.

b) Interest Risk

c) Price Risk

The company''s exposure to price risk arises from investments in mutual funds. The company has not undertaken any risk mitigation measures to reduce the price risk. The table beiow summarises the impact of increases / decreases of share price of the investments and profit for the period. The analysis is based on the assumption that the market price of those investments in Mutual Funds move by 5% point on either side with all other variables held constant.

36 Capital management

The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

38 Contingent liabilities

- Estimated amount of contract to be executed on Capital Account of Rs. Rs, 371.44 Lacs (P.Y. Rs, 53.11 Lacs) (Against which the Company has paid Rs. 103.70 Lacs {P.Y.Rs. 13.02 Lacs).

-- Disputed Demand for VAT of Rs. 19.65 Lacs (P.Y. 19.65) under Gujarat Value Added Tax Act.

39 Segment Reporting

The Company''s management, consisting of the chief executive officer, the chief financial officer and the manager for corporate planning, monitors the operating results of the below business segments separately for the purpose of making decisions about resource allocation and performance assessment and accordingly, based on the principles for determination of segments given in Indian Accounting Standard 108 "Operating Segments "and in the opinion of management the Co. is primarily engaged in the business of Ball & Roller Bearings. All other activities of the Co. revolve around the main business and as such there is no separate reportable business segment.

The operations of the company are confined to India as well as outside India with export contributing to 73.36 % (P.Y. 70.92%) of annual turnover. Hence in view of the management India and exports market represents different geographical segment.

40 The Company has entered into certain operating lease agreements and an amount of Rs. 12.00 Lakhs /- (P.Y Rs.10.08 Lakhs) paid under such agreements has been charged to the Statement of Profit & Loss, These lease are generally non-cancellable and are renewable by mutual consent on mutually agreed terms. There are no restrictions imposed by such agreements.

41 The board has recommended dividend of Rs. Nil per share which is subject to approval of shareholders in the ensuing Annual General Meeting.

42 The financial statement are recommended for issue by the Audit Committee as at its meeting on 27th May'' 2023 and approved by the Board of Directors on 27th May ,2023.

44 Borrowing cost attributable to the acquistion or construction of Qualifying Assets amounting to Rs. 0.39 Lacs (Previous Year Rs. Nil) is capitalized by the company.

45 Previous year''s figures have been regrouped and rearranged wherever necessary, to make them comparable with those of current year.

Mar 31, 2018

1. Corporate Information

Galaxy Bearings Limited (referred to as âthe companyâ) is a leading in manufacturing & trading of Ball and Taper Roller Bearing and Steel etc. The company has its registered office at T-18, Vikram Chambers, Ashram Road, Ahmadabad - 380009, Gujarat, India.

2 Contingent liabilities

Disputed Demand of Excise Rs. 2.85 I.acs (P.Y. Rs2.85 Lacs) [Against which company has paid Rs.0.21 Lacs (P.Y. Rs.0.21 Lacs) under protest which arc shown as Advances.

There is no Contract remaining outstanding to be executed on capital account

3 Segment Reporting

The Companyâs management, consisting of the chief executive officer, the chief financial officer and the manager for corporate planning, monitors the operating results of the below business segments separately for the purpose of making decisions about resource allocation and performance assessment and accordingly, based on the principles for determination of segments given in Indian Accounting Standard 108 âOperating Segments âand in the opinion of management the Co. is primarily engaged in the business of Ball & Roller Bearings. All other activities of the Co. revolve around the main business and as such there is no separate reportable business segment.

The operations of the company are confined to India as well as outside India with export contributing to 62.34% (P.Y. 53.78 %) of annual turnover. Hence in view of the management India and exports market represents different geographical segment.

Secondary segment information for the year ended 31st March, 2018.

4 The financial statement are recommended for issue by the Audit Committee as at its meeting on 18th May 2018 and approved by the Board of Directors on 19th May, 2018.

5 The board has not recommended dividend.

6 Transition to Ind-AS

These financial statements, for the year ended 31 March 2018, are the first the company has prepared in accordance with Ind-AS.

The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and the opening Ind AS balance sheet at 1 April 2016 (the Companyâs dale of transition to Ind AS). In preparing its opening Ind AS balance sheet the company has adjusted amount reported previously in financial statements in accordance with accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the act (previous GAAP). An explanation of how transition from previous GAAP to Ind AS has affected the Companyâs financials position, financial performance and cash flows is set out in following tables and notes.

6.1 Exemptions and exceptions availed

Ind AS 101, permits a first time adopter to elect to continue with carrying value for ail of its property, plant and equipment as recognised in the financial statements as at date of transaction to Ind AS, measured as per previous GAAP and use that as demeed cost as at date of transition after making necessary adjustments. Accordingly, company has elected to measure of its properly, plant and equipment at their previous GAAP carrying value.

1 Trade Receivables

Under previous GAAP, provisions were made for specific receivables if collection was doubtful,. Under Ind AS 109, the Company has applied expected credit loss model for recognising allowance for doubtful debt. Expected credit loss model reflects an unbiased and probabilty-weighted amount that is determined by evaluating a range of possible outcomes and also includes loss for the time value of money.

2 Retained Earnings

Retained earnings as at April 1, 2015 has been adjusted consequent to the above Ind AS transition adjustments.

3 Deferred Tax Liabilities (Net)

Tax adjustments include deferred tax impact on account of differences between previous GAAP and Ind AS which are mainly on fair value of investment, expected credit loss allowance and employee benefit obligations.

4 Current Investments

Under previous GAAP, the company accounted for short term investments in mutual funds as investment measured at cost. As per Ind AS, investments in liquid mutual funds have been revalued at fair value. The resulting fair value changes of these investments have been recognised in profit and loss.

5 Remcasurement of post employment benefit obligations

As per Ind AS, remeasurement of defined benefit plans have been disclosed under âOther Comprehensive Incomeâ (OCI), which was being debited to statement of profit and loss under previous GAAP. As a result, Company recognised Liabilty or (Asset) under Provisions or Other Current Assets respectively.

6 Excise Duty

Under previous GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented on the face of statement of profit and loss.

7 Other Comprehensive Income

As per Ind AS, re-measurement of defined benefit plans have been disclosed under âOther Comprehensive Incomeâ (OCI). The impact of tax has been disclosed separetely. The re-measurement of defined benefit plans was being debited to statement of profit and loss under previous GAAP.

7. In the opinion of Management, any of the assets other than items of property, plant and equipment, intangible assets and Non-Current Investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated, unless otherwise stated.

8. Borrowing costs attributable to the acquisition or construction of Qualifying Assets amounting to Rs. Nil (Previous Year Rs. Nil) is capitalized by the company.

9. In the opinion of Management, any of the assets other than items of property, plant and equipment, intangible assets and Non-Current Investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated, unless otherwise stated.

10. On periodical basis and as and when required, the Company reviews the carrying amounts of its assets and found that there is no indication that those assets have suffered any impairment loss. Hence, no such impairment loss has been provided in the Financial Year 2017-18 (Previous Year Rs. Nil).

11. Balances of trade payables, trade receivables, loans & advances, advances from customers, other non -current/current liabilities have been taken as per books are subject to reconciliation / confirmation and consequential adjustments, if any.

12. Previous yearâs figures have been regrouped and rearranged wherever necessary, to make them comparable with those of current year.

Mar 31, 2014

1.1 The company has only one class of shares referred to as Equity Shares having face value of Rs. 10/-. Each Holder of Equity Share is entitled to 1 vote per share.

1.2 In the event of liquidation of the Company, the holders of Equity shares will be entitled to receive any of the remaining assets of the company , after distribution of all preferential amounts.However, no such preferential amounts exist currently. The distribution will be in proportion to the number of Equity shares held by the shareholder.

1.3 There is no Equity Shareholder holding more than 5% shares in the Company.

1.4 The reconciliation of the number of shares outstanding and the amount of share capital is set out below :

2.1 Unsecured Loan from Directors, Promoters & their relatives carry interest rate at 12.50 % p.a.

2.2 Unsecured Loan from Corporates Bodies carry interest rate at 12 % and loans are repayble in 2020-21

3.1 The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amounts unpaid as at year end together with interest paid / payable under this Act have not been given.

4. The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006, and hence disclosure relating to amounts unpaid as at year end together with interest paid / payable under this Act has not been given.

5. Segment Information:

In the opinion of management the Company is primarily engaged in the business of Ball & Roller Bearings. All other activities of the Co. revolve around the main business and as such there is no separate reportable business segment.

The operations of the company are confined to India as well as outside India with export contributing to 65.49 % (P.Y. 38.98 %) of annual turnover. Hence in view of the management India and exports market represents different geographical segment.

6. Related Party Disclosure

List of related parties with whom transactions have taken place during the year and details of transactions is as follows.

a. Key Management Personnel

- Vinodbhai H. Kansagara

- Bharatbhai K. Ghodasara

b. Where Control Exist:

- Gujarat Cine Enterprise Pvt. Ltd.

c. Relative of Key Management Personnel

Name of Person Related Party Relation

- Kirtikant H Kansagara Brother of Key Management Personnel

- Arohi Ghodasara Relative of Director

- Avani Ghodasara Relative of Director

- Nayana Ghodasara Relative of Director

Note: List of transaction, out of the transactions reported in the above table, where the transactions entered in to with single party exceed the 10% of the total related Party transactions of similar nature are as under:

7. Balances are subject to confirmation.

8. Paisas are rounded up to the nearest rupee.

9. Balances of Debtors, Creditors, Advances and Liabilities have been taken as per books, are subject to reconciliation / confirmation and consequential adjustments, if any.

10. The Company is Small and Medium Sized Company (SMC) as defined in the General Instructions in respect of Accounting Standards notified under the Companies Act, 1956. Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized Company.

11. Borrowing costs attributable to the acquisition or construction of Qualifying Assets amounting to Rs. Nil (P. Y. Rs. Nil).

12. The difference between excise duty on opening and closing stock of finished goods is recognized separately in the Statement of Profit & Loss.

13. During the year, the company has impaired the assets to the tune of Rs. Nil (P.Y. Rs. Nil).

14. Previous year''s figures have been regrouped and rearranged wherever necessary, to make them comparable with those of current year.

Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article