Accounting Policies of SKP Bearing Industries Ltd. Company

Mar 31, 2025

1 SKP BEARING INDUSTRIES LIMITED (erstwhile partnership firm till 5th January, 2022, previously
known as SKP BEARING INDUSTRIES) is engaged into manufacturing of needle rollers, cylindrical rollers,
pins and steel balls and other related products, generation of electricity through wind mill power projects
and solar power projects.

2 BASIS OF ACCOUNTING AND PREPERATION OF FINANCIAL STATEMENTS:

The accompanying financial statements are prepared under the historical costs convention and on
accrual basis of accounting and in compliance, in all materials respects, with the Accounting Principles
Generally accepted and applicable in India, the applicable accounting standards notified under relevant
sections and provisions of the Companies Act, 2013.

We have relied on management''s representation for bifurcation and ageing of trade payables, trade
receivable. Capital Assets Work in Progress, and other relevant items.

3. USE OF ESTIMATES:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles
requires estimates and assumptions to be made that affect the reported amount of assets and liabilities
on the date of the financial statements and the reported amount of revenues and expenses during the
reporting period. Difference between the actual results and estimates made are recognized in the period
in which the results are materialized.

4. PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION ON IT:

Fixed Assets are valued at cost less depreciation w.e.f. 06.01.2022 by SLM method as per the useful life
prescribed under the schedule II of the Companies Act, 2013. The details of fixed assets are given in the
balance sheet & the schedule referred there in. The existence, utilization & date of put to use of fixed
assets have been taken as declared by the management.

Further as clarified by the management, certain items of Property, Plant and Equipment are held in the
name of erstwhile Partnership firm i.e. SKP Bearing Industries.

As represented by management, process for transfer of property in Company’s name is already initiated
for many items and will be carried out for all the items in due course. We are not aware of outcome of the
same as on the date of our report and hence we do not comment upon the same.

5. INVENTORY:

Inventories are valued at lower of cost or net realizable value as declared by the company which is in line
with requirement of AS 2 “Valuation of Inventories". Stock is considered as taken Value and Certified by the
company.

6. ACCOUNTING METHOD:

The accounting method employed is Mercantile Accounting System. Final Accounts has been prepared on
Going Concern assumption and materiality aspect but some revenue & expenses due to their peculiar
nature like electricity, telephone expenses, etc are accounted for. on cash basis.

7. REVENUE RECOGNITION:

Revenue is recognized in accordance with Accounting Standard (AS) 9 on ''Revenue Recognition'' using the
accrual basis and the exclusive method, i.e., excluding taxes. However, certain income streams, including
those from the renewable energy generation business, are recognized on a cash basis due to their
inherent nature.

The Company commenced commercial operations at its Zamar Plant effective 1st March 2025 and at its
PM Kusum Solar Project effective 19th June 2024. Accordingly, all related capital expenditures previously
recorded under Capital Work-in-Progress have been capitalized under the appropriate heads of Property.
Plant and Equipment in accordance with the applicable financial reporting framework.

Further, effective 1st April 2024, the Company revised its accounting treatment for captive consumption of
electricity generated by the Gujarat Windmill. Until 31st March 2024, the accounting was done on a gross
basis by recognizing both internal sales and corresponding expenses. From FY 2024-25 onwards, based
on Audit Committee''s decision, the treatment has shifted to a net basis:

If consumption exceeds generation, the shortfall is recorded as electricity expense;

If generation exceeds consumption, the surplus is recognized as other income.

This change in policy has been applied prospectively in accordance with AS 5. Restating prior periods was
considered impracticable due to unavailability of complete historical data. The change does not materially
impact the financial statements for the year ended 31st March 2025.

9. VERIFICATION

We have verified the transactions recorded in the books with such of the documentary evidences as were
made available and produced before us. where such documentary evidence were not available the entries
authenticated by the party have been accepted.

10. INCOME TAX AND ITS IMPLICATIONS:

From Financial year 2021-22, the company had opted to pay tax as per sec.115BAA of Income Tax Act,1961.

11. All the Balances to the Debit and Credit of Debtors. Creditors and Unsecured Loans are subject to
confirmation and reconciliations.

12. Accounting Ratios are calculated on the basis of figures shown in audited set of accounts, which are
system generated and subject to our notes/remarks..

13. The figures have been rearranged and regrouped wherever considered necessary and rounded off to the
nearest Rupee in Thousands.

15. EFFECT OF CONVERSION:

The corporate Entity comes into existence on 06.01.2022 after conversion of partnership firm. As per the
representation of management, company is eligible for benefit of provisions of Section 47(xiii) and other
provisions of Income tax Act, 1961 and estimates NIL tax liabilities on conversion. We are not aware of
outcome of the same on the date of our report and hence we do not comment upon the same.

16. Figures of GST credit and liability as per books of account and as per GST Portal are subject to
reconciliation by the Company.

17. REPORTABLE SEGMENTS:

Segment Reporting Disclosure has been provided as per AS-17 (Segment Reporting).

18. The above financial result and statements of assets and liabilities were reviewed by the audit committee
and then approved by Board of directors at their respective meeting held on 22/05/2025.

Place: SURENDRANAGAR
Date: 18/07/2025

for DIPAK P. SHAH AND CO.
Chartered Accountants

DIPAK P. SHAH
[PROPRIETOR]
[M.N0.045296]
[FRN-112132W]

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Mar 31, 2024

Schedule : 1Accounting Polices & Notes on Accounts

1 SKP BEARING INDUSTRIES LIMITED (erstwhile partnership firm till 5th January, 2022, previously known as SKP BEARING INDUSTRIES) is engaged into manufacturing of needle rollers, cylindrical rollers, pins and steel balls and other related products, generation of electricity through wind mill power projects and solar power projects.

2 BASIS OF ACCOUNTING AND PREPERATION OF FINANCIAL STATEMENTS:

The accompanying financial statements are prepared under the historical costs convention and on accrual basis of accounting and in compliance, in all materials respects, with the Accounting Principles Generally accepted and applicable in India, the applicable accounting standards notified under relevant sections and provisions of the Companies Act, 2013.

We have relied on management’s representation for bifurcation and ageing of trade payables, trade receivable, Capital Assets Work in Progress, and other relevant items.

3. USE OF ESTIMATES:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates made are recognized in the period in which the results are materialized.

4. PROPERTY, PLANT AND EQUIPMENT AND DEPRECIATION ON IT:

Fixed Assets are valued at cost less depreciation w.e.f. 06.01.2022 by SLM method as per the useful life prescribed under the schedule II of the Companies Act,

2013. The details of fixed assets are given in the balance sheet & the schedule referred there in. The existence, utilization & date of put to use of fixed assets have been taken as declared by the management.

Further as clarified by the management, certain items of Property, Plant and Equipment are held in the name of erstwhile Partnership firm i.e. S K P Bearing Industries.

As represented by management, process for transfer of property in Company’s name is already initiated for many items and will be carried out for all the items in due course. We are not aware of outcome of the same as on the date of our report and hence we do not comment upon the same.

5. INVENTORY:

Inventories are valued at lower of cost or net realizable value as declared by the company which is in line with requirement of AS 2 “Valuation of Inventories”. Stock is considered as taken Value and Certified by the company.

6. ACCOUNTING METHOD:

The accounting method employed is Mercantile Accounting System. Final Accounts has been prepared on Going Concern assumption and materiality aspect but some expenses due to their peculiar nature like electricity, telephone expenses, etc are accounted for, on cash basis.

7. REVENUE RECOGNITION:

Revenues are recognized in accordance with AS 9 on; Revenue Recognition’ following the accrual basis of accounting and using exclusive method i.e. excluding the amount of taxes. However, certain items, due to their nature, are recognized on cash basis. However, effect of the same does not seem to be material.

As per management’s representation, With regard to renewable energy generation business of the company, the incomes are booked on receipt basis due to their very nature.

8.	RELATED PARTY DESCLOSURE:
(a)	LIST OF RELATED PARTIES & RELATIONSHIP
	NAME OF THE PARTY	RELATIONSHIP
	Shrinand K. Palshikar	Managing Director (KMP)
	Sangita S. Palshikar	Director (KMP)
	Shripada S. Palshikar	CFO (KMP)
	Shrichi S. Palshikar	Relative of KMP
	Kinnary K. Rathod	Company Secretary (KMP)
	Pooja K. Sharma	Company Secretary (KMP) Retired
	Pankaj Patil	Relative of KMP
	SKP Bearing Industries Limited - France	Wholly Owned Subsidiary

(b)	RELATED PARTY TRANSACTION
	Transaction/ Nature of Relationship	Holding/ Subsidiaries	Joint Associates Venture	Key Management Personnel	Relative of Key Management Personnel	Grand Total
LOANS AND ADVANCES GIVEN
SKP Bearing Industries Limites - France		8,99,90,000				8,99,90,000
INTEREST OUTSTANDING ON LOANS AND ADVANCES GIVEN
SKP Bearing Industries Limites - France		15,74,825				15,74,825
LOAN OUTSTANDING
Shrinand K. Palshikar				9,36,02,745		9,36,02,745
Sangita S. Palshikar				15,79,13,395		15,79,13,395
INTEREST PAID
Shrinand K. Palshikar				51,90,714		51,90,714
Sangita S. Palshikar				56,25,324		56,25,324
SALARY
Shrinand K. Palshikar				48,00,000		48,00,000
Sangita S. Palshikar				24,00,000		24,00,000
Shripada S. Palshikar				9,66,000		9,66,000
Kinnary K. Rathod				1,98,000		1,98,000
Pooja K. Sharma				3,00,000		3,00,000
Pankaj Patil					11,16,000	11,16,000
Consultancy
Shrichi S. Palshikar (prop. of Shrichi & Associates)					11,90,097.00	11,90,097.00
Labour Charges
Shrichi S. Palshikar (prop. of Shrichi & Associates)					77,36,930.00	77,36,930.00
Rent
Sangita S. Palshikar				4,32,000		4,32,000

9. VERIFICATION

We have verified the transactions recorded in the books with such of the documentary evidences as were made available and produced before us, where such documentary evidence were not available the entries authenticated by the party have been accepted.

10. INCOME TAX AND ITS IMPLICATIONS:

From Financial year 2021-22, the company had opted to pay tax as per sec.115BAA of Income Tax Act,1961.

11. All the Balances to the Debit and Credit of Debtors, Creditors and Unsecured Loans are subject to confirmation and reconciliations.

12. Accounting Ratios are calculated on the basis of figures shown in audited set of accounts, which are system generated and subject to our notes/remarks..

13. The figures have been rearranged and regrouped wherever considered necessary and rounded off to the nearest Rupee in Thousands.

14. There are no prior period expenses or there are no extra ordinary expenses debited to Profit & Loss account except nonmaterial item of erstwhile partnership firm.

15. EFFECT OF CONVERSION:

The corporate Entity comes into existence on 06.01.2022 after conversion of partnership firm. As per the representation of management, company is eligible for benefit of provisions of Section 47(xiii) and other provisions of Income tax Act, 1961 and estimates NIL tax liabilities on conversion. We are not aware of outcome of the same on the date of our report and hence we do not comment upon the same.

16. Figures of GST credit and liability as per books of account and as per GST Portal are subject to reconciliation by the Company.

17. REPORTABLE SEGMENTS:

As represented by Management, No business segment of the Company qualifies as separate reportable segments, and therefore segment wise reporting is not provided, even for renewable energy generation plants located at various places.

18. The above financial result and statements of assets and liabilities were reviewed by the audit committee and then approved by Board of directors at their respective meeting held on 22/05/2024.

19. Limited review has been given by auditor for the results for half year ended 30/09/2023 as per Regulation 33 of SEBI (Listing obligations and disclosure requirements) Regulations,2015.

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Mar 31, 2023

NOT AVAILABLE