To The Members of DECCAN BEARINGS LIMITED
 
 The Directors have pleasure in presenting the Twenty Seventh Annual
 Report together with the audited accounts for the year ended 31st
 March, 2012.
 
                                         Year Ended       Year Ended
 
 1.   FINANCIAL RESULTS:                 31.03.2012       31.03.2011
 
 Net Profit before providing for 
 Depreciation                             11,20,527        10,05,349
 
 Less: Depreciation                        9,49,964         9,02.072
 
 Profit after providing Depreciation       1,70.563         1,03,277
 Add/{Less): Provision for
 
 A]   Deferred Tax                          (89,776)        2,15,827
 
 B]   Income Tax                          (2,40,000)       (1,80,000)
 
 Profit/(Loss) after Taxation             (1,59,213)        1,39,104
 
 Add: Balance brought forward 
 from previous year                      (30,44,520)      (35,05,330)
 
 Add: Excess Provision 
 for Tax for Earlier                                        3,21,706
 
 Amount avaiiable for 
 Appropriation                           (32,03,733)      (30,44,520)
 
 Appropriation:      
 
 Balance carried to Batance sheet        (32,03,733)      (30,44,520)
 
 2.   DIVIDEND:
 
 In view of the need to conserve the resources for the future growth, no
 dividend has been considered by the Board.
 
 3.  PRESENT OPERATIONS & FUTURE OUTLOOK:
 
 During the year under consideration, the Company has mainly focused on
 increasing the range of the Company''s products with a view to create
 additional customer base and thereby increase the Turnover of the
 Company. The strategy succeeded and the total sales of the company
 increased by about 5% inspite of heavy recessionary trends and lower
 demand in the industrial sectors. Although the exports of the company
 suffered due to the disturbed middle east markets, the local sales did
 well due to wider range of our products and increased customer base.
 
 The Indian economy continues to remain sluggish and the industrial
 consumption low. The GDP projections for the coming year has been
 revised downward by the government.  However, it is expected to improve
 in the later part of the year.
 
 Overall, the Company expects to achieve its sales and profit targets
 during the year ahead, with better sales networking and further
 increase in its product range.
 
 4.  DIRECTORS:
 
 Mr.Kiran N. Vora and Mr.Barikh W. Christian, Directors retire by
 rotation and are being eligible, offer themselves for re appointment.
 
 5.  DIRECTORS RESPONSIBILITY STATEMENT
 
 Your Directors confirm that:
 
 (i) in the preparation of the annual accounts, the applicable
 accounting standards have been followed along with proper explanation
 relating to material departures;
 
 (ii) the accounting policies are consistently applied and reasonable,
 prudent judgment and estimates are made so as to give a true and fair
 view of the state of affairs of the Company at the end of the financial
 year; and the profit of the Company for the year ended on that date.
 
 (iii) the Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of this Act for safeguarding the assets of the Company and
 for detecting and preventing frauds and other irregularities.
 
 (Iv) the Directors have prepared the annual accounts on a going concern
 basis.
 
 6.  AUDITORS:
 
 The Auditors M/s D. V. Vora & Co. Chartered Accountants hold office
 until the conclusion of the ensuing Annual General Meeting and are
 recommended for re appointment. Certificate from the Auditors has been
 received to the effect that their re appointment, if made, would be
 within the limits prescribed under Section 224(1 B) of the Companies
 Act, 1956.
 
 7.  PARTICULARS OF EMPLOYEES:
 
 There were no employees drawing remuneration falling under the
 provisions of Section 217(2A) of the Companies Act, 1956.
 
 8.  CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE
 EARNINGS AND OUTGO:
 
 Information as per Section 217(i)(e) of the Companies Act, 1956 read
 with Companies (Disclosure of Particulars in the Report of Board of
 Directors) Rules, 1988 has been given in the Annexure I and forms part
 of this report.
 
 9.  APPRECIATION:
 
 Your Directors wish to convey their sincere thanks to State Bank of
 India, the valued dealers and customers and staff members and
 shareholders of the Company for their continued support and assistance
 to the Company.
 
                            For and on behalf of the Board of Directors
 
   
 
                                            KIRAN N.VORA
 
 Mumbai, Dated: 4th September, 2012       Managing Director