SKF India Ltd Management Discussions

Government-led initiatives such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) Scheme and the Production-Linked Incentive (PLI) programme are accelerating the shift towards electric mobility while reinforcing domestic manufacturing capabilities. As the automotive industry undergoes a transformative shift, increasing investments in electrification, autonomous technologies, and sustainable mobility solutions are expected to redefine the landscape. These advancements will not only enhance India?s global competitiveness but also contribute significantly to economic resilience, technological leadership, and environmental sustainability. With policy-driven momentum, continuous innovation, and a dynamic consumer base, India?s automotive sector is poised to drive the nation?s industrial growth in the years ahead.

Electric vehicles

India is undergoing a profound transformation in its automotive landscape, with Electric Vehicles (EVs) emerging as a cornerstone of sustainable mobility. While global markets like Europe and the U.S. navigate adoption challenges, India is forging ahead, driven by strong policy support, growing consumer interest, and rapid technological advancements. However, despite the momentum, key challenges such as infrastructure gaps and high costs must be addressed to ensure long-term success.

The Indian EV industry is accelerating at an unprecedented pace, rapidly expanding to claim a larger share of the automotive market in the coming years. Valued at USD 8.49 Billion in 2024, projecting a compound annual growth rate (CAGR) of 40.7% from 2025 to 2030, fuelled by the country?s ambition to become an EV-first nation by 2030. This commitment is evident in the government?s proactive interventions to make electric mobility more accessible and appealing nationwide. Initiatives such as PM E-Drive, supported by substantial incentives and subsidies, are playing a pivotal role in driving EV adoption. With an outlay of INR 3,679 Crores dedicated to incentivising electric two-and three-wheelers, the programme effectively reduces the upfront cost, making EVs a more viable option for consumers.

(Source: https://www.grandviewresearch. com/industry-analysis/india-electric-vehicle-market-report?utm.com, https:// www.pib.gov.in/PressReleaseIframePage. aspx?PRID=2085205&utm=&utm.com)

Two-wheelers Three-wheelers Passenger vehicles Total FY 2023-24 1,015,443 104,850 101,032 1,221,325 FY 2024-25 1,209,772 163,283 115,800 14,88,855

To further strengthen local manufacturing and reduce import dependence, the government introduced key policy measures in 2024. A significant move was the reduction of import duties on EVs priced above USD 35,000 from 100% to 15%, provided manufacturers commit to local production. Additionally, the Union Budget 2025 extended customs duty exemptions for 35 critical capital goods required for lithium-ion battery manufacturing, reinforcing India?s goal of self-reliance in EV battery production.

Beyond policy interventions, the economic and environmental benefits of EVs are accelerating their adoption. With operating costs nearly 40–50% lower than traditional internal combustion engine (ICE) vehicles, EVs present a compelling cost advantage. Moreover, as India shifts towards electric mobility, it reduces reliance on fossil fuel imports, strengthening energy security. From an environmental perspective, EV adoption plays a crucial role in lowering carbon emissions and aligns with the nation?s commitment to achieving net-zero emissions by 2070.

With robust policy support, increasing affordability, and a strong push for localised production, India is poised to lead the global EV transition. As the industry evolves, continued investment in charging infrastructure, battery technology, and sustainable innovation will be key to unlocking the full potential of electric mobility and shaping a cleaner, greener future.

(Source: How Indias EV adoption will soar by 2030 - The Economic Times. India?s EV Market: Trends and Future Prospects S&P Global)

Manufacturing

The manufacturing sector stands as a cornerstone of India?s economic expansion, driving GDP growth, employment generation, and industrial innovation. Key industries including automotive, engineering, chemicals, pharmaceuticals, consumer durables, and electronics—are leading this transformation. Thereby reinforcing India?s position as a global manufacturing powerhouse. With exports projected to reach USD 1 Trillion by 2030, the sector?s role in shaping the country?s economic trajectory has never been more significant. Foreign Direct Investment (FDI) inflows into manufacturing soared to USD 29.79 Billion in the first half of FY 2024-25. This reflected strong investor confidence and the sector?s growing global appeal. This surge, alongside increased mergers and acquisitions, is amplifying domestic production, enhancing exports, and strengthening India?s industrial footprint.

Government initiatives and policy reforms have played a pivotal role in accelerating manufacturing growth. The Make in India initiative continues to attract foreign investment, while the Production

Linked Incentive (PLI) Scheme is fuelling expansion in high-growth sectors such as electronics, automobiles, and textiles. Infrastructure development remains a top priority, with Bharatmala Pariyojana enhancing road networks to streamline supply chains and the National Logistics Policy focused on reducing costs and improving efficiency. Additionally, the DESH Bill aims to streamline industrial growth, while SAMARTH Udyog Bharat 4.0, launched in 2021, integrates Industry 4.0 technologies to optimise manufacturing processes and minimise waste.

Recognising the importance of state-level participation, various Indian states have introduced competitive incentives, subsidies, and infrastructural support to attract large-scale investments. Maharashtra, Andhra Pradesh, Gujarat, and Tamil Nadu have signed multiple Memorandums of Understanding (MoUs) with global firms to strengthen their industrial capabilities, further solidifying India?s reputation as a preferred manufacturing destination.

(Source: Indian manufacturing sector has potential to reach $1 trillion by 2025-26 – Colliers India)

Indian railways

The Indian railway system serves as the lifeline of the nation, seamlessly connecting vast landscapes and driving economic growth. With an extensive network spanning thousands of kilometres, it is the fourth-largest railway system in the world, following the US, China, and Russia. Due to its affordability and efficiency, rail transport remains the preferred mode of long-distance travel for Millions of Indians.

Recognising the sector?s critical role, the government of India has intensified its focus on railway infrastructure. To this end, the government has introduced investor-friendly policies to attract Foreign Direct Investment (FDI). This push has encouraged both domestic and global players to explore opportunities in Indian rail projects, particularly in freight and high-speed rail systems.

In FY 2023-24, Indian Railways recorded total revenue of INR 2.56 Lakh Crores (USD 30.76 Billion), with passenger revenue reaching INR 70,000 Crores (USD 8.77 Billion)—a 9% increase over the previous year. Freight performance also saw strong momentum, with 1,591 MT of freight transported in FY 2023-24, marking a slight growth over the previous record of 1,512 MT in FY 2022-23. This contributed to freight revenue of INR 1.68 Lakh Crores (USD 20.40 Billion).

The Indian railway sector is undergoing rapid modernisation to enhance passenger experience and operational efficiency. Recognising this, the government has allocated INR 2.62 Lakh Crores (USD 31.5 Billion) under the Union Budget FY 2024-25 to expand and upgrade railway infrastructure. This investment focuses on developing new railway lines, modernising stations, speeding potential improvement and accelerating track electrification.

Additionally, the establishment of dedicated Western and Eastern freight corridors are set to boost freight transportation efficiency, reducing transit times and enhancing logistics capabilities. To further strengthen the sector, strategic initiatives such as increased freight loading, railway line expansion, and locomotive production are being actively pursued. Moreover, the integration of advanced technologies like AI and machine learning is driving greater efficiency, enabling predictive maintenance, and optimising operations across the network.

(Source: Indian Railways Industry Analysis IBEF, Press Release: Press Information Bureau)

Capital goods

The Indian capital goods sector is the cornerstone of industrial development, contributing approximately 1.9% to the nation?s GDP. It encompasses a diverse range of industries, including machine tools, textile machinery, printing machinery, mining equipment, and process plant equipment – each playing a critical role in enabling large-scale manufacturing and infrastructure growth. With strong policy backing from the Ministry of Heavy Industries and initiatives like Make in India, the sector witnessed significant growth. Total production increased from INR 2,29,533 Crores in FY 2014-15 to INR 4,29,001 Crores in FY 2023-24. Among the sub-sectors, Earthmoving & Mining Machinery recorded the most substantial growth, nearly doubling. This was propelled by rising demand for infrastructure and construction projects. Other sub-sectors such as Printing Machinery, Dies, Moulds & Press Tools and Food Processing Machinery also grew steadily. Thus, reflecting the growth of India?s manufacturing and food processing sectors. Exports from the capital goods industry surged as well, underscoring India?s growing competitiveness in the global market. Earthmoving & mining machinery led the list of export volumes, driven by India?s cost-effective manufacturing and rising global infrastructure investments. Food Processing machinery exports nearly doubled, showcasing India?s role in supporting global food supply chains. Similarly, Plastic Processing machinery exports reported a surge, reflecting the sector?s advancements in sustainable and efficient manufacturing solutions. The sector benefits from a liberalised policy framework. This includes 100% FDI under the automatic route, exemption from industrial licensing, and a favourable trade environment with no restrictions on imports and exports. The union budget FY 2025-26 introduced additional incentives, exempting capital goods for EV and mobile battery manufacturing. This is likely to further boost domestic production capabilities in emerging technologies.

With rapid urbanisation, infrastructure investments, and strong government support, the Indian capital goods sector is well-positioned for sustained expansion. As domestic manufacturing capabilities strengthen and exports continue to rise, the industry is set to play a pivotal role in driving self-reliance, technological innovation, and economic growth in the years ahead.

Renewable energy

India has emerged as a pivotal player in the global renewable energy landscape, reflecting its commitment to sustainable development and climate change mitigation. The nation?s strategic initiatives have positioned it among the top countries advancing clean energy solutions. Technological advancements, particularly in solar photovoltaic (PV) and wind energy, have been instrumental in this progress. The government?s focus on domestic manufacturing through schemes like the production-linked incentive (PLI) has bolstered the production of high-efficiency solar modules, reducing reliance on imports and fostering innovation. Additionally, the exploration of offshore wind energy and the promotion of green hydrogen underscore India?s dedication to diversifying its renewable energy portfolio. In FY 2024-25, India achieved a record-breaking addition of 25 GW of renewable energy capacity — a 35% increase from the previous year?s 18.57 GW. This remarkable growth was driven by a 38% surge in solar capacity additions, reaching 21 GW and pushing the country?s total installed solar capacity beyond 100 GW.

Domestic manufacturing saw an unprecedented expansion, with module production nearly doubling to 74 GW and PV cell capacity tripling to 25 GW, propelled by the INR 41,000 Crores production-linked incentive (PLI) scheme, which also generated over 11,650 jobs.

With these transformative strides, India is on the brink of becoming the world?s third-largest renewable energy powerhouse, reinforcing its leadership in the global clean energy transition.

(Source: Economic Survey 2024-25: Outlining road ahead for Indias RE boom Energy Asia, Press Release:Press Information Bureau)

Outlook

Looking ahead, India?s renewable energy sector is poised for continued expansion. To achieve the ambitious target of 500 GW of non-fossil fuel capacity by 2030, the country aims to add an average of 50 GW of renewable energy capacity annually over the next six years. This necessitates a concerted effort in scaling up infrastructure, streamlining project approvals and enhancing grid integration capabilities. However, challenges such as land acquisition disputes, as seen in regions like Nandgaon, and skill shortages in the clean energy workforce could impede progress. Addressing these issues through policy reforms, community engagement, and investment in skill development will be crucial for sustaining growth and meeting future targets.

In summary, while India?s renewable energy sector has witnessed remarkable growth in FY 2024-25, achieving the 2030 objectives will require overcoming existing challenges and leveraging opportunities through innovation, policy support, and stakeholder collaboration.

(Source: India adds record renewable energy capacity of about 30 GW in 2024 - The Times of India, India?s Tata Power eyes first coal capacity expansion in six years Reuters, https://www.ft.com/content/a8528845-dfe9-4121-a115-c475d0302d3e?utm.com)

Rising demand for machinery and equipment in various industries

The global demand for machinery and equipment is witnessing a significant surge, driven by industries striving for modernisation and efficiency. Countries worldwide are investing in advanced technology and infrastructure upgrades to enhance operational performance and productivity.

Industries such as automotive, aerospace, construction, and manufacturing are heavily reliant on ball bearings to minimise friction, enhance efficiency, and ensure seamless operations. Additionally, the growing need for cutting-edge machinery to meet rising production demands and reduce operational costs is further accelerating market expansion.

The surge in infrastructure projects is also fuelling demand for heavy machinery and construction equipment, reinforcing the industry?s growth trajectory and highlighting the increasing necessity for high-performance mechanical components.

Increasing demand for automation and robotics to perform numerous tasks

The growing adoption of automation and robotics across industries is significantly propelling the demand for bearings. As businesses seek to enhance efficiency, reduce costs, and improve quality, advanced robotic systems are becoming an integral part of manufacturing, logistics, and service sectors. With robots becoming more adaptable and intelligent, they are streamlining workflows and executing high-precision, repetitive tasks with greater accuracy. As industries increasingly embrace automation, the reliance on precision-engineered components, including high-performance bearings, is intensifying to optimise processes and maximise productivity.

Demand for hybrid bearings

SKF India is at the forefront of supporting the electrification of passenger transport with a range of innovative products designed to enhance energy efficiency, enable compact designs, and simplify assembly. These advancements contribute to the development of next-generation vehicles with superior mechanical and electronic durability.

A key offering in SKF India?s portfolio is hybrid bearings, which play a critical role in electric vehicles (EVs). While EVs help reduce emissions, their high-powered electric motors can generate damaging electrical currents that impact bearing performance. Hybrid bearings effectively address this challenge by combining steel rings with silicon nitride rolling elements, a material known for its excellent electrical insulation properties.

Electrical insulation

Prevents damage by insulating the housing from the shaft in AC/DC motors and generators

Superior material properties

Silicon nitride offers low density, high strength, stiffness, and toughness, making it resistant to vibration and oscillation

High speed capabilities

Operate more efficiently at high speeds, enhancing performance and longevity

Reduced maintenance needs

Often eliminates the requirement for bearing preload or special grease applications, improving overall system reliability

Extended service life

Outlasts traditional all-steel bearings under similar operating conditions

With these cutting-edge solutions, SKF India is paving the way for more efficient and reliable electric mobility, reinforcing its commitment to sustainability and innovation.

Technological innovations to create high performance ball bearings

Manufacturers are consistently investing in research and development (R&D) to produce high-performance ball bearings with improved durability, higher load capacities, and reduced friction. These innovations enable ball bearings to operate more efficiently and withstand high stress conditions, making them suitable for a wide range of applications across various industries. Additionally, the development of specialised coatings and materials for these bearings expands their use in extreme environments and challenging operating conditions, such as high temperatures or corrosive environments. Furthermore, the continuous technological advancements encourage industries to adopt these bearings for diverse applications, leading to increased productivity

Raw material sourcing

Securing a consistent supply of high-quality raw materials is a critical aspect of bearing manufacturing. With dependence on both metallic and non-metallic materials, manufacturers must navigate complexities such as price volatility, geopolitical disruptions, and trade regulations. These factors can create bottlenecks in procurement, making supply chain resilience a top priority. To counter these challenges, manufacturers are strengthening supplier networks, exploring alternative sourcing strategies, and leveraging risk-mitigation frameworks to ensure uninterrupted production.

Sustainability concerns

Sustainability is taking centre stage in bearing manufacturing, driven by stringent environmental regulations and evolving customer expectations. Manufacturers are under growing pressure to integrate eco-friendly processes while maintaining cost efficiency—a challenging balance to strike. The key lies in innovation, where sustainable practices and economic viability converge. Companies that successfully align their operations with green manufacturing principles will secure long-term competitiveness and industry leadership.

Cost pressures

Rising energy costs and increasing labour expenses continue to put pressure on the profitability of bearing manufacturers. To sustain margins without compromising quality, companies must focus on cost optimisation strategies. Streamlining production, adopting energy-efficient technologies, and enhancing workforce productivity are key levers for efficiency. Additionally, the integration of automation and digitalisation offers long-term cost advantages, enabling manufacturers to stay competitive in an evolving industry landscape.

Outlook for the Indian ball bearing industry

The Indian ball bearing industry is on the path to accelerated growth, driven by evolving mobility trends, industrial automation, and expanding infrastructure. With a projected market expansion from USD 4.74 Billion in 2024 to USD 11.36 Billion by 2033, the industry is expected to expand at a robust CAGR of 10.20%, reflecting rising demand across key sectors. One of the primary growth catalysts is the rapid shift toward electric vehicles (EVs). As India intensifies efforts to promote sustainable mobility, the need for advanced, low-friction, and high-speed bearings is becoming more prominent. Beyond the automotive sector, increasing automation in manufacturing and the expansion of heavy industries are unlocking new opportunities for high-performance bearings. The push for self-reliance through the ‘Make in India? initiative is further strengthening domestic production capabilities, reducing import dependence, and enhancing global competitiveness. As industries evolve, smart sensor-integrated bearings are gaining traction, offering improved operational efficiency and predictive maintenance capabilities. Another major trend shaping the industry is the integration of technology in bearings. IoT-enabled smart bearings capable of real-time monitoring and predictive maintenance will become increasingly prevalent, minimising downtime and improving operational efficiency across industries. With a dynamic shift in technology and manufacturing, the Indian ball bearing industry is positioned to play a pivotal role in shaping the future of mobility and industrial applications. Strategic investments in innovation, localisation, and advanced engineering will be key in sustaining long-term growth and global relevance.

(Source: India Bearings Market Size, Share & Trends Outlook 2033)

SKF India (also referred to as ‘the Company?) is a pioneer in ball bearing manufacturing in India, established in 1961. Since commissioning its first plant in Pune in 1964, the Company has grown into a trusted provider of high-quality solutions for motion and rotation. As of 31st March, 2025, SKF India operates three manufacturing facilities and four offices, supported by a robust network of over 1,811 suppliers and 1,727 employees. The Company serves more than 40 industries globally, offering products and services that enable customers to improve performance, reduce environmental impact, and gain sustainable competitive advantage. With deep expertise in designing and manufacturing bearings, seals, and lubrication systems, SKF India holds a strong position in both the industrial and automotive sectors. It caters to a diverse sectors of industries, including automotive, agriculture, construction, food and beverage, oil and gas, metals, and general engineering. SKF India continues to embrace innovation, embedding digital technologies and wireless sensors across its offerings. These enable advanced machine health assessment, engineering support, and remanufacturing services—positioning the Company as a technology forward partner in reliability and productivity.

Sustainability lies at the core of SKF India?s operations. Its world-class manufacturing facilities integrate clean technology, digital solutions, and continuous innovation to drive responsible growth. With a clear and focussed strategy across industrial markets, automotive OEMs, and the automotive aftermarket, SKF India is working toward its ambitious climate goals—achieving net-zero emissions across production facilities by 2030 and targeting a net-zero supply chain by 2050.

Business segment

The Company focusses on delivering comprehensive rotational equipment solutions across its automotive and industrial segments. Its diverse portfolio includes bearings, seals, lubrication systems, mechatronics, complemented by value-added services such as technical support, maintenance, and condition monitoring.

Automotive

SKF India delivers advanced solutions for a wide range of automotive applications, including engines, transmissions, wheel-end systems, and steering mechanisms. Its offerings are designed to enhance vehicle performance, improve fuel efficiency, and increase safety and reliability. The Company provides customised solutions for diverse requirements across wheel-end, driveline, e-powertrain, engine, suspension, and steering systems—serving OEMs across cars, light and heavy trucks, trailers, buses, and two-wheelers.

In addition to supporting OEMs, SKF India has a strong presence in the vehicle aftermarket, supplying spare parts through a network of more than 321 distributors across the country.

Industrial

In the industrial segment, SKF India offers a comprehensive range of solutions, including bearings, seals, lubrication systems, rotating shaft services, and advanced capabilities in machine health assessment, reliability engineering, and remanufacturing. These offerings cater to over 40 industries worldwide, supplied both directly and through a robust network of more than 120 distributors across India. The demand for these offerings varies from application to application — ranging from requirements for low friction and energy efficiency to maintenance-free operations and optimised total cost of ownership. Further, digitalisation plays a pivotal role,

Demand across these segments is shaped by evolving industry trends. The light vehicle market is driven by the shift towards electrification, energy efficiency, and lower emissions. In the truck segment, priorities include reducing total cost of ownership, enhancing connectivity, and adopting integrated systems. The aftermarket is influenced by changing consumer preferences, emerging distribution channels, performance expectations, and cost optimisation. SKF India holds a strong position in developing components for automotive electrification and wheel-end systems. It also leads in application-specific powertrain solutions and maintains a robust distribution footprint across the aftermarket landscape.

enabling real-time monitoring and predictive maintenance throughout the product lifecycle, thereby delivering enhanced value to customers.

The Company holds a leading position in railways, heavy industries, and the industrial distribution market, along with a prominent position in several other sectors.

Financial overview

The Company?s standalone Revenue from Operations for FY 2024-25 stood at INR 49,199.2 Million compared to INR 45,701.3 Million the previous year. Profit After Tax (PAT) for the year ended 31st March, 2025 increased from INR 5,517.7 Million in FY 2023-24 to INR 5,658.1 Million in FY 2024-25.

Statement of profit and loss for 31st March, 2025 (MINR)

Risks and mitigation strategy

In today?s complex and dynamic market environment, SKF India is exposed to a range of risks that may impact its financial, operational, and reputational performance. Recognising the importance of proactive risk management, the Company conducts regular assessments, maintains contingency plans, and ensures comprehensive insurance coverage to mitigate potential disruptions. Risk management is an integral part of SKF India?s business strategy. A dedicated Risk Management Committee, established by the Board, oversees the framework—continuously reviewing and strengthening policies to ensure resilience and long-term sustainability.

Human resources

People are at the heart of SKF India?s long-term success. The Company is committed to fostering a diverse, equitable, and inclusive workplace that attracts, develops, and retains high-quality talent. In line with its People Strategy, SKF India has built its approach around three key pillars – Culture & Leadership, Future Workforce, and Employee Experience. These focus areas are designed to enable people to drive business transformation by being future-ready today.

Through a strong emphasis on continuous learning, competitive compensation and benefits, and holistic employee well-being, SKF India creates an environment where individuals are empowered to grow, thrive, and stay engaged.

As the business landscape evolves, SKF India continues to invest in its people—enhancing learning and development opportunities to align workforce capabilities with emerging needs. A people-centric approach remains a key differentiator, supported by multidimensional leadership training and skill-building programmes that are strategically integrated with business objectives and a culture of innovation and excellence.

A holistic HR framework

SKF India?s HR framework integrates job design, recruitment, onboarding, training and development, compensation and benefits, performance management, and labour relations, ensuring a seamless employee experience. This integrated approach directly supports the Employee Experience pillar of the People Strategy.

Initiatives such as equitable treatment, a people-centric approach, and performance-based reward systems have led to higher retention rates and strong employee loyalty. During FY 2024-25, the Company employed 187 individuals (including workers). Demonstrating its commitment to diversity, 39% of new hires were women. Focused hiring initiatives were deployed in select business areas to improve diversity pipelines and reduce time-to-fill. Post-joining feedback was also actively captured, with an 83% participation rate and an average satisfaction score of 4.86 out of 5.

Aligned with the Future Workforce pillar, SKF India undertook several impactful initiatives in FY 2024 -25 to build capabilities and prepare its talent pipeline. Key leadership development programmes included:

These programmes are designed to build critical capabilities and shape the future organisation in line with SKF India?s long-term business objectives.

Enabling diversity, equity, and inclusion

The Culture & Leadership pillar is brought to life through a strong focus on inclusion, trust, safety, and transformational leadership. SKF India partnered with an external consultant to conduct a DEI diagnostic survey, confirming its maturity in creating an inclusive and respectful environment.

The Parivartan programme focused on hiring and mentoring women for shop floor roles, raising female representation in manufacturing from 7.2% to 16.2%. Overall gender diversity across the Company improved from 10.4% to 17.5% during the year.

As a manufacturing-led organisation, SKF India continues to strengthen collaboration and trust through joint consultation between the Union and Management. By embedding new ways of working and reinforcing leadership principles, the Company is nurturing a growth mindset, accelerating innovation, and driving process optimisation to effectively navigate industry challenges.

Disclosure of accounting treatment

Where in the preparation of financial statements, a treatment different from that prescribed in an Accounting Standard has been followed, the fact shall be disclosed in the financial statements, together with the management?s explanation as to why it believes such alternative treatment is more representative of the true and fair view of the underlying business transaction.

Internal control systems and their adequacy

SKF India?s policies and procedures commensurate with the nature of business and ensure reliable and efficient business conduct. The internal control systems are periodically reviewed to confirm their effectiveness and adequacy. Internal audit, an indispensable part of management control systems, is responsible for keeping the Management updated about the adequacy and efficacy of the control systems. The three-line defence monitoring and control approach comprising the Management, Internal Control Team and Internal Audits, enable effective control of the internal control system. The Company has adopted a risk prevention approach to strengthen its controls proactively. The Company, during the year, reviewed its Internal Financial Control (IFC) systems and strived to establish a more robust and effective IFC framework. Being part of the SKF Group, the Company adheres to SKF Internal Control Standards (SICS), a customised control system required to be adhered to, across the globe, by all SKF companies. The standard operating procedures for the business functions comprise the standards specified by SICS. The key focus areas of SICS are compensating controls within the process and minimising deviations and exceptions. The adequacy of controls is tested and verified by the Internal Control team. The Internal Audit function conducts Process Audits with the help of specialised external professional firms. Risks/ improvement areas, identified out of the audits, are reviewed and mitigation plans are put in place. Every Audit Committee reviews the implementation status of the action plans for major observations. The reports submitted by the Management and the audit reports submitted by Internal and statutory auditors are reviewed by the Audit Committee. To ascertain, inter alia, their views on the adequacy of internal control systems, the Audit Committee also meets statutory auditors. Based on the Committee?s evaluation, it was concluded that as of 31st March, 2025, the Internal Financial Controls were adequate and operating effectively. The Company complied with the specific requirements as laid out under Section 134(5)(e) of the Companies Act, 2013. It calls for the establishment and implementation of an Internal Financial Control framework that supports compliance with the requirements of the Act concerning the Director?s Responsibility Statement. The Internal Controls function regularly reviews the adequacy of controls of the processes. Suggestions to further strengthen the processes are shared with the respective process owners. The Audit Committee periodically reviews any significant observations, along with the Management?s response and status of action plans.

Cautionary statement

Statements in this report on Management Discussion and Analysis, describing the Company?s objectives, projections, estimates, expectations, or predictions may be forward-looking statements within the meaning of applicable laws and regulations. These statements are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied since the Company?s operations are influenced by many external and internal factors beyond its control. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, based on any subsequent developments, information, or events. Readers are cautioned that the risks outlined here are not exhaustive. Readers are requested to exercise their judgment in assessing the risks associated with the Company.