Deccan Bearings Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT

The Company is in the Business of Ball and Roller Bearings which has applications in Automobiles, pumps, gear boxes, heavy earth moving equipments and industrial sectors. Predominantly the Company deals in Bearings required by the Automobile Industry and gear boxes. The growth of the Bearing Industry is primarily depended on the growth of OEM and After-Sales-Markets and can be more co-related with the Automotive and Industrial Sectors. The majority of the demand for bearings in the Indian Market comes from the automobiles sector, whereas the requirement for Industrial Bearings is well spread out over different varieties of bearings. There is a wide range of different kind of bearings and in different sizes with specific purposes depending on the end application of bearings. Whereas there are many Indian players in the production of different types of bearings, most of them are producing automobile bearings, while some are producing bearings which find use in the Industrial sector.

Most International reputed bearing manufacturing Companies throughout the World have their presence and factories in India. Range and varieties of bearings required is so large that inspite of the presence of so many international Companies manufacturing in India, apart from the local manufacturing Companies, substantial quantity of bearings still requires to be imported from various countries including Germany, Japan, Sweden, China and other European countries.

Like all other manufacturing Companies, the bearing manufacturers in India, have also been severely impacted due to Covid-19 over the past two years. However, the revival seems promising and the future appears to be good.

The whole economic scenario appears to be changing very fast over the last few years due to the various reforms introduced by the Government as well as the severe impact on Industries and Trade, particularly the smaller ones, by the prolonged pandemic of Covid-19 over the last few years.

In the last about five years, there has been corrective reforms like demonetization as well as structural reforms like the introduction of GST, replacing VAT and other taxes. The financial sector has gone through testing times like the NBFC crisis and the increasing NPAs of banks resulting into difficulty for businesses even before the pandemic. COVID-19 has had a veiy severe effect on lives and businesses over a long period of more than two years. The Lockdowns introduced by the Center and the States throughout the Country has resulted into huge losses in small and medium scale industries and businesses. Millions of jobs have been lost and so many small industries and businesses have closed down. The Country as a whole has been still struggling to get back on its feet, and the Government is offering assistance to one and all to revive trade, industries and creating new jobs. The above scenario has also severely affected the Companys business.

As you aware and as communicated by the Company in the past few years, the business module of the Company was going through a change when the COVID-19 pandemic suddenly hit the nation and the world. This has severely impacted the Companys plans and executions. The Company is presently working on revival of its business by preparing new business modules in the present changed economic scenario and looks forward to a better current year.

Financial Performance Review

During the year under review, there was no Revenue from operations of the Company other income for FY 2024-25 was Rs. 4,00,790.00 as compared to Rs. 4,56,618.00 for FY 2023-24. The loss after tax ("PAT] attributable to shareholder for FY 2024-25 was Rs. 16,36,844.00 as against Rs. 17,68,972.00 for FY 2023-24.

Earnings per share was Rs (0.75] (Basic] and (Diluted] stood at in FY 2024-25 as compared to Rs.(0.81] (Basic] and (Diluted] in FY 2023-24. Reasons for the drop in overall performance of the Company are as already explained in the above par as. The Company is in the process of regenerating its business by exploring new modules and is optimistic of getting back on its feet in the current year.

Segment wise Performance

Your Company has a single reportable segment of ball and roller bearings as the primary business segment for the purpose of AS-17. The assets and liabilities of the Company are all expended towards this business segment.

Risk Management System

Risk Management System Like any other ongoing business, your Company is exposed to a large number of potential risks that can adversely affect its business. Your Company has established comprehensive Risk Management System to ensure that risks to the Companys continued existence as a going concern and to its development are identified and addressed on timely basis. Consciously dealing with identified risks and regularly monitoring risk factors increases risk awareness and ensures continuing improvement. Management identifies and evaluates - especially such risks which could jeopardise continued existence or developmental an early stage and defines and implements measures to control these risks.

Internal Control Systems and Adequacy

Based on the nature of the business and size of operations the Company has in place adequate systems of internal control and documented procedures covering all financial and operating functions. These controls have been designed to provide for:

- Accurate recording of transactions with internal checks and prompt reporting

- Safeguarding assets from unauthorized use or losses

- Compliance with applicable statutes, and adherence to management instructions & policies - Effective management of working capital

- Monitoring economy and efficiency of operations

Human Resource and Industrial Relations

Overall relations with the employees have been cordial during the year and the Company has contained its employee costs.

We continuously aim to provide career development and growth opportunities to our people through our Talent Management Process. It provides dual opportunities for people to grow in their managerial capabilities aligned with their career aspirations. We continuously encourage our people to broaden their horizons and fulfil their potential via a wide and varied range of learning and development opportunities.

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may constitute forward looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those either expressed or implied.

By Order of Board For DECCAN BEARINGS LIMITED

	SD/-	SD/-
Date: 05.09.2025	PRIYANKBHAI V GHELANI	NISHITH TRIVEDI
Place: Mumbai	Managing Director	Director
	DIN:10989804	DIN:08166461