అకౌంట్స్ గమనికలుRushabh Precision Bearings Ltd.

Mar 31, 2025

k. Provisions

A provision is recognized when the company has a present obligation as a result of past
event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the
obligation. Provisions are not discounted to their present value and are determined based
on the best estimate required to settle the obligation at the reporting date. These
estimates are reviewed at each reporting date and adjusted to reflect the current best
estimates.

Where the company expects some or all of a provision to be reimbursed, for example
under an insurance contract, the reimbursement is recognized as a separate asset but
only when the reimbursement is virtually certain. The expense relating to any provision
is presented in the statement of profit and loss net of any reimbursement.

l. Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence
will be confirmed by the occurrence or non-occurrence of one or more uncertain future
events beyond the control of the company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a
liability that cannot be recognized because it cannot be measured reliably. The company
does not recognize a contingent liability but discloses its existence in the financial
statements.

m. Employee Benefits

The costs of providing pensions and other postemployment benefits are charged to the
Statement of Profit and Loss in accordance with AS 15 ''Employee benefits’ over the period
during which benefit is derived from the employees'' services. As informed by the
members of the suspended board, there are no employees currently on the payroll of
RPBL.

n. Trade Receivables

According to Accounting Standards, which requires expected lifetime losses to be
recognized from initial recognition of such receivables. However, the trade receivables
are mentioned as per the last financial statement and revaluation has not been made
because of the reason mentioned in the note k above.

o. Segment Reporting

The Company has only one reportable segment viz, Manufacturing as per AS 17 -
Operating Segment.

Other Notes forming part of Financial Statement

(i) As mentioned in Note 37 of the financial statements, the members of the
Erstwhile Board of Directors have not provided necessary cooperation.
Hence it is not possible to determine whether the Company has balance
outstanding in respect of transactions done with the Companies Struck-off

either under section 248 of the Act or under section 560 of Companies Act,
2013 or not

(ii) No undisclosed income has been voluntarily disclosed under any scheme
identified by income-tax authorities under any tax assessments under the
Income Tax Act.

(iii) The company has compiled with the number of layers prescribed under
clause (87) of section 2 of the Act read with Companies (Restriction on
number of Layers) Rules, 2017.

(iv) The company has neither traded nor invested in crypto currency during the
year.

(v) No proceedings have been initiated or pending against the group for
holding any benami property under the Benami Transactions (Prohibition)
Act, 1988 (45 of 1988).

(vi) The company does not have any charges or satisfaction which is yet to be
registered with ROC beyond the statutory period.

(vii) as mentioned in Note 37 of the financial statements, the members of the
Erstwhile Board of Directors have not provided the required cooperation,
so it is not possible to determine the promoter''s shareholding which is
otherwise available in Transaction Report Analysis.

(viii) The Company has immovable Property in the Form of Land and Factory
Building.

Note:

(I) Formula used for calculation :

(a) Current Ratio = Current assets / (Current liabilities - Current maturities of long term borrowings)

(b) Gross Debt / Equity Ratio = (Non-current borrowings Current borrowings Non-current lease liabilities Current lease liabilities) / Total
equity

(c) Net Debt / Equity Ratio = Net debt / Total equity

Net Debt = (Non-current borrowings Current borrowings Non-current lease liabilities Current lease liabilities - (Cash, cash
equivalents and Other bank balances Margin money (non-current) Investment in Quoted Mutual Funds Amount held as margin
money against borrowings))

(d) Debt Service Coverage Ratio (DSCR) = EBITDA / (Interest paid Other finance charges paid Principal repayments of long-term
borrowings Payment of lease liabilities)

(e) Return of Equity (RoE) = Net profit after taxes / Average Equity

(f) Inventory turnover ratio = Revenue from operations / Average Inventories

(g) Debtors turnover ratio = Revenue from operations / Average Trade and unbilled receivables

(h) Trade payables turnover ratio = Total expenses excluding Employee benefit expenses / Average Trade payables

(i) Net capital turnover ratio = Revenue from operations / Working capital where Working capital = Current Assets - (Current liabilities -
Current maturities of long term borrowings)

(j) Net profit ratio = Net Profit / (Loss) after taxes / Total income

(k) Return on capital employed (ROCE) = (Profit / (Loss) before tax Finance costs Depreciation on Right-of-use assets) / (Total Equity -

Intangible Assets - Intangible Assets under development Net Debt)

(l) Return on investment (ROI) = Income generared from investments /Time weighted average Investments
(II) Reason for variances:

(m) Varience in Return on Equity (ROE) ratio due to previous years loss on exceptional items.

(n) Varience in Return on capital employed (ROCE) ratio due to previous years loss on exceptional items.

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Mar 31, 1998

1. Deferred payment guarantees from Union Bank of India is secured by hypothecation of machinery purchased under DPGL.

2. Cash Credit loan from Union Bank of India is secured by hypothecation of Stock in trade and personal guarantee of Chairman & Managing Director

3. Working Capital Loan from Industrial Development of India (IDBI) is secured by Mortgage by deposit of title deeds on its properties situated at Wadhwan City, Dist. Surendranagar, Gujarat State and Personal Guarantee of the Chairman and Managing Director.

4. Motorcar loans from Citi Bank are secured by hypothecation of Two Motorcars.

5. The Company has on 24th December, 1996 privately placed a Secured Redeemable Non-Convertible Debentures issue of Rs.4.00 Crores (each Rs.1000/-) secured by charge on assets which are acquired out of the proceeds of the Debenture issue and such other assets as may be decided by the Board of Directors in consultation with Trustees

6. H.P. Finance from GSFC is secured by personal guarantee of Directors.

7. Outstanding balances of Suppliers, Debtors, Creditors and others are subject to Confirmation.

8. The Inter Corporate Deposits received by the Company during the financial year are subject to confirmation from the respective parties and in case of some there are legal disputes pending in the Court.

9. In the opinion of the Board & to the best of their knowledge belief, current assets, loans and advances are stated in the Balance Sheet at the realisable value in ordinary course of business.

10. The company has not paid managerial remuneration to Shri. Rajesh D. Vora, Shri. Dhirajlal H. Vora, Smt. Sunayana R. Vora & Shri. Rasik V. Tolia during the year although the same were approved in the Annual General Meeting held on 18th September 1996 as the aforesaid Directors have waived the same vide their waiver letter dated 31st March 1998.

11. The company has disputed the Income Tax liability of Rs. 11059095/- for the A.Y. 1996-97 and on the contrary claimed a Refund of Rs. 1628012/- in the Revised Return of Income Tax filed by the Company for the relevant Financial Year on 1st December 1997. As the said Revised Return has been rejected by the Assessing Officer of Income Tax. Therefore Company has not Given any effect of the said Revised Financial Account as on 31.03.1996, in the current Year.

12. No provision has been made in the Accounts for Income Tax as the Unit is located in Government notified backward area which is eligible for benefits u/s 80IA.

13. Additional information pursuant to the provision of paragraph 3, 4C & 4D of part 2 of Schedule VI of the Companies Act, 1956.

14. The expenditure incurred on private placement of debentures is being treated as deferred Revenue expenditure to be amortised over of 10 years and thus accordingly Rs. 19322 is charged to Revenue account during the year.

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Mar 31, 1996

NOTES TO SHARE CAPITAL:

a) I. 27,50,000 Equity Shares of Rs.10/- each fully paid-up have been allotted in terms of public issue of Equity Shares during the year.

II. 12,50,000 Equity shares of Rs.10/- each fully paid-up has been allotted to the Promoters, Directors their friends relatives & associates on firm basis (for five year Lock in period) during the year.

b) In the year 1994-95 4,00,000 equity shares of Rs.10/- each were allotted as fully paid up by way of Bonus share, after capitalising the free reserve.

NOTES TO SECURED LOANS:

1. Term loans from Union Bank of India are secured by Equitable mortgage of Factory Land and Building and hypothication of entire plant & machinery.

2. Deferred payment guarantees from Union Bank of India is secured by hypothication of machinery purchased under DPGL.

3. Usance bill Discounting Loan from Union Bank of India is secured against usance bill not exceeding 90 days covering sale of Bearings.

4. Cash Credit loan from Union Bank of India is secured by hypothication of Stock in trade.

5. Motorcar loans from Citi Bank are secured by hypothication of Two Motorcars.

NOTES TO ACCOUNTS:

1. The Contingent liability of Rs. 1,12,500 in respect of guarantee given by the company to the Bombay Stock Exchange is not provided in the books.

2. The Estimated amount of contracts remaining to be executed on Capital account is Rs.82,01,304/-.

3. As per the report of the Chartered Engineer and as Certified by the Management, the following assets had been valued at their replacement values during the year 1992-93. Due to the revaluation of the assets the Profit & Loss account had been debited by an additional Depreciation of Rs.27,87,818.

4. Outstanding balances of Contractors, Suppliers, Debtors, Creditors & other are subject to Confirmation reconciliation.

In the opinion of the Board & to the best of their knowledge & belief, the Current Assets, loans & Advances are considered realisable in the ordinary course of business at which they are stated in the Balance Sheet.

5. Share Application Refund Money of Rs. 12,76,000 is lying with the banks pending realisation of Refund orders.

6. The expenditure incurred on Public Issue of Shares is being treated as deferred Revenue expenditure to be amortised over of 10 years. Accordingly Rs. 2,10,803 is charged to Revenue account during the year.