This year marks our fiftieth year and the Directors have pleasure in
 presenting the Fiftieth Annual Report together with the Audited
 Financial Statements for the year ended December 31, 2010.
 
 Financial Results
 
                                       Year ended         Year ended
                                     Dec 31, 2010       Dec 31, 2009
                                   Rs. in million     Rs. in million
 
 Net Sales & Services                    20,684.1           15,709.3
 
 Other Income                               247.6              131.2
 
 Total Income                            20,931.7           15,840.5
 
 Operating Expenditure                   18,137.4           14,243.7
 
 Depreciation                               333.4              289.8
 
 Financial Income                         (207.4)            (131.6)
 
 Financial Expense                            7.6                7.6
 
 Profit before tax                        2,660.7            1,431.0
 
 Provision for taxation                     890.5              488.5
 
 Profit after tax                         1,770.2              942.5
 
 Balance brought forward
 from last year                           3,840.2            3,238.7
 
 Profit available for
 appropriation                            5,610.4            4,181.2
 
 The appropriations are as follows:
 
 Proposed dividend on
 Equity Shares                              369.1              210.9
 
 Tax on Proposed dividend                    61.3               35.8
 
 Transfer to General
 Reserves (including
 compulsory transfer to
 Reserves required under
 Section 205(2A) of
 the Companies Act, 1956)                 1,000.0               94.3
 
 Leaving a balance of                     4,180.0            3,840.2
 
 Dividend
 
 Your Directors are pleased to recommend a dividend of Rs. 7 per share
 (70%) for the year ended December 31, 2010 including Golden Jubilee
 Special Dividend of Rs. 1 per share, out of the current years profit,
 as compared to Rs. 4.0 per share for the preceding year ended December
 31, 2009. The dividend if approved at the forthcoming Annual General
 Meeting will be paid out of the profits of the Company for the year and
 will absorb a sum of Rs.  369.1 million as compared to
 Rs. 210.9 million for the previous year. This would involve a cash
 ouflow of Rs. 430.4 million including tax on dividend. The dividend,
 will be paid to those shareholders whose names appear on the Register
 of Members of the Company after giving effect to all valid share
 transfers lodged with the share transfer agent on or before April 26,
 2011 and to those whose names appear as beneficial owners in the
 records of Naional Securities Depository Limited and Central Depository
 Services (India) Limited as on said date.
 
 Operations
 
 Indian economy continued to build on its strong recovery and achieved
 robust growth rates exceeding 8% in all quarters of the year. The
 growth was well spread across the segments of the economy and in some
 cases specially in automotive sector the surging demand exceeded all
 expectations. Whilst this led to improved capacity uilizaion a
 factories of most auomotive component vendors, it also led to inability
 of some component vendors to keep pace with the production schedules of
 the auomotive OEMs. Your Company benefited from the investment made
 lats year a Haridwar which continued to make progress owards achieving
 is installed capacity. The Company also made invesments in enhancing
 capacities in the Bengaluru facility while continuing is focus on
 productivity improvement measures across all plants.
 
 In this year of all round economic growth, your Company has achieved
 credible financial resuls. Our sales continued to develop very
 positively, driven by strong performance in our Automotive Division,
 and a continued good development in Industrial Division.  The Company
 focused on deeper customer relationships and improved is value
 proposition to the customers, resulting in growth in volume. The
 continued focus on engineering solution for customers is helping in
 maintaining our position as the market leader.
 
 Your Company achieved a significant milestone as its Sales surpassed
 the Rs. 20 billion mark reflecting the leadership position of the
 Company. As a reflection of strong inrinstic value the revenue growth
 was translated into higher profitability growth on the bactk of strong
 customer relationship and higher value offerings. Operating profis
 (EBIT) grew to Rs. 2,460.9 million from Rs. 1,307.0 million over the
 lats year.  Operating margin stood a 11.9% for 2010 up from 8.3% in the
 previous year.
 
 Profit afer tax increased to Rs. 1,770.2 million, a growth of 88% over
 2009. Our Earnings per share for the year was Rs. 33.6.
 
 The rapid recovery of the growth momentum in year 2010 was comforting.
 A couple of concerns emerged which will need careful monitoring over
 the next few quarters namely inflation and economic fall outs of
 changing geo-political situaion across the globe. An immediate fallout
 of the global development is the volatility in the commodity prices and
 the resulant pressures on margins. The continued rise in interest rates
 as a measure for battling inflation could impact the growth.
 
 Your Company has laid the foundaion for growh with several building
 blocks during 2010 which will help achieve is straegic goals -
 
 - New factory a Haridwar to meet growing demand for auto sector
 
 - Solution facory a Pune to offer value added solutions to our
 customers
 
 - Sourcing domestically large industrial bearings for our industrial
 business.
 
 Your Company will coninue to drive straegies that will be
 cusomer-centrict to capture growth opportunities. We will continue to,
 build capabilities to meet the market demands and further consolidate
 our position. Your Company is confident that year 2011 will bring newer
 opportunities and is well positioned to leverage the same.
 
 Liquidity
 
 Your Company continues to remain debt-free and maintains sufficient
 cash to meet srategic objectives. There are no long term borrowings.
 During 2010, inernal cash flows have more than adequately covered
 working captial requirements, investments and dividend payments. As on
 December 31, 2010, your Company had cash & cash equivalents amounting
 to Rs. 2,119.1 million.
 
 Golden Jubilee Year
 
 The year 2011 is the Golden Jubilee year of the Company. SKF India has
 had an exciting journey of five decades to reach its present position
 supported by all its stakeholders. Your Company is confident of
 building on its past success and creating an even better future.
 
 Safety,Health and Environment (SHE)
 
 Minimizing the environmental impact of our operations assumes utmost
 priority in the face of challenges faced by mankind to proect our
 earth. We are commited to maintain the highest standards of SHE by
 complying and even going beyond the minimum standards to keep our plane
 safe for future generations.  Our comprehensive SHE policies as well as
 dedicaed measures taken are a testament to our commitment to the cause.
 
 Greates emphasis is given to safety measures for Zero accidents, safety
 training for employees, use of green principles in our product
 development and incorporaing resource reduction and recycling in our
 plans. Reducing our existing carbon footprint through program Beyond
 Zero and tailoring our processes to minimize the impact on the
 environment continue to rank high on the list of priorities.
 
 The year 2010 saw further significant steps in the direction of
 building a robus Safey, Health and Environment system in the
 organizaion. Number of activities were carried ou during the year to
 enable sustainable operations some of which were:
 
 - Conducted On the Job training and training through One Point
 Lesson following TPM mehodology. More than 4,500 man days of training
 in a year in sustaining the awareness on safety.
 
 - A dedicated Safety Management Team in place for prevention of
 unsafe incidents at the plant level.
 
 - A separate Susainability team has been formed to increase awareness
 level of each employee about Global warming.
 
 - SKF is cerified to ISO 14001 & OHSAS 18001, new factory Haridwar has
 also been recommended for cerification during the year.
 
 - Continued awareness program by releasing every week a daily tip on
 Save the Plane earth to educate all our employees to conserve energy.
 
 - Water conservation and capure programs including rain waer harvesting
 hereby achieving over 7% reduction in net water consumption as compared
 to year 2009.
 
 - Well equipped Industrial Effluent Treatment Plans complying with 
 Zero Discharge condition.
 
 Awards / Recognition
 
 Your Directors are glad to report that during the year, the Company was
 recognized and feliciaed for exemplary performance in various fields
 significant amongst which are the following:
 
 - Firts Prize and prestigious Sona Kaizen Trophy at 10th CII-TPM
 National Conference.
 
 - First Prize a CIIT 4th Naional Conference & Competition on Six Sigma
 in the Lean Manufacturing Organizations category
 
 - Star Performance Award from Engineering Expotr Promotion Council of
 India (EEPC), sponsored by Minisry of Commerce & Industries for
 contribution in Export.
 
 - Best Kaizen Award from Toyoa for the Pune region.  (Consecutive 2nd
 year in the row)
 
 Corporate Social Responsibility
 
 As responsible corporate citizens, we have always endeavored to make
 conribution owards betterment of society in and around the areas of our
 operation. Our CSR initiatives are aimed at helping our surrounding
 communities become self-reliant.
 
 SKF India has always believed in sport as an essential part of a
 societys mental and physical wellbeing. The sports academy set up by
 your Company for underprivileged children is an example of an
 initiative in this area.  The objective is to nurture young talent at
 grass roots level and develop community participation.
 
 Directors Responsibility Statement
 
 Pursuant to requirements of Section 217 (2AA) of the Companies Act,
 1956 and on the basis of information and advice received by them your
 Directors confirm:-
 
 1.  that in the preparation of the annual accounts, the applicable
 accounting standards have been followed along with proper explanations
 relating to material departures;
 
 2.  that the Directors have selected such accounting policies and
 applied them consistently and made judgments and estimates that are
 reasonable and prudent so as to give a
 
 true and fair view of the state of affairs of the Company as on
 December 31, 2010 and of the profit or loss of the Company for the year
 ended on that date;
 
 3.  that the Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Companies Act, 1956 for safeguarding the assest of
 the Company and for preventing and detecting fraud and other
 irregularities;
 
 4.  that the Directors have prepared the annual accounts on a going
 concern basis.
 
 Energy Conservaion, Technology Absorpion and Foreign Exchange Earnings
 and Outgo
 
 The information relating to Energy Conservaion, Technology Absorpion
 and Foreign Exchange Earnings and Ougo as required to be disclosed
 under section 217 (1) (e) of the Companies Act, 1956 read with
 Companies (Disclosure of Particulars in the Repor of Board of
 Directors) Rules, 1988 is given in Annexure forming part of this
 Report.
 
 Corporate Governance
 
 A detailed report on the Corporate Governance system and practices of
 the Company and cerificate from the Auditors of the Company regarding
 compliance of condiions of Corporae Governance and a separate section
 on Management Discussion & Analysis forms part of the Annual Report.
 
 Your Company is commited to transparency in all is dealings and places
 high emphasis on business ethics. Cerificate from CEO/CFO, inter alia,
 confirming the correctness of the financial staements, compliance with
 Companys code of Conduct, adequacy of the Internal Control measures
 and reporting of matters to the Audit Committee in terms of Clause 49
 of the Listing Agreement with the Stock Exchanges, is also enclosed as
 a part of the Annual Report.
 
 Deposits
 
 The Company discontinued accepting fixed deposits from Public and
 Shareholders in the year 2001. The amounts outstanding are those
 amounts which have no been claimed by the deposit holders on maturity
 even after sending reminders. A sum of Rs. 0.1 million from Public
 remained unclaimed as at December 31, 2010.
 
 Pursuant to Secion 205C of the Companies Act, 1956 an amount of Rs.
 0.78 million lying as deposits and an amount of Rs. 0.08 million
 onwards interest on fixed deposits which remained matured and unclaimed
 for a period of seven years from the date they became due for payment
 have been transferred to Investor Education and Protection Fund set up
 by the Central Government.
 
 Personnel
 
 The Board of Directors commends the continued dedication of employees
 at all levels and the industrial relations continue to be peaceful and
 cordial.
 
 The information as per Section 217 (2A) of the Companies Act, 1956 read
 with Companies (Particulars of Employees) Rules, 1975 forms part of
 this Report.
 
 Directors
 
 Mr. Giuseppe Donao resigned as Director of the Company with effect from
 Ocober 21, 2010. The Board places on record is gratitude for the
 valuable services rendered and guidance provided by Mr. Donao during
 his tenure with the Company.  Mr. Tore Berilsson is appointed as
 Director to fill in the casual vacancy caused by resignation of Mr.
 Donao with effect from October 21, 2010.
 
 In accordance with the requirements of the Companies Act, 1956 and the
 Companys Articles of Association, Mr D.C. Shroff, Mr. H. Lange and Mr.
 T Berilsson (who has been appointed to fill up the casual vacancy
 caused by resignaion of Mr. G. Donao and who holds office upto the date
 of this Annual General Meeting) retire by rotaion and being eligible
 have offered themselves for re-appointment.
 
 The Company has received noice under Secion 257 of the Act along with
 the requisite deposit, in respect of the above person, proposing the
 appointment as a Director of the Company.  Resolutions seeking approval
 of the Members for their appointment have been incorporated in the
 Notice of the Annual General Meeting and a brief deail about them has
 been provided in the Corporate Governance Report.
 
 Auditors
 
 M/s. B S R & Associates, Chartered Accountants, who are the Stautory
 Auditors of the Company, continue to hold office until the conclusion
 of the Fifieth Annual General Meeting and offer themselves for
 re-appoinment. In terms of Clause 41(l)(h) of the Listing Agreement,
 the stautory auditors of your Company are subjected to the Peer Review
 Process of the ICAI and hold a valid certificate issued by Peer Review
 Board of ICAI.
 
 A cerificate from the Auditors has been received to the effect that
 their re-appointment, if made, would be within the limits prescribed
 under Section 224(1B) of the Companies Act, 1956.
 
 Cost Auditors
 
 Pursuant to Section 233B of the Companies Act, 1956, the Central
 Government has prescribed cost Audit of the Company.  The Board has
 appoined M/s. N. I.  Mehta & Co., cost Auditor of the Company for the
 year 2010. The cost Audit is under process and the Company will submit
 the cost Auditors report to the Central Government in time.
 
 Acknowledgement
 
 The Board wishes to acknowledge and thank all stakeholders for their
 valuable sustained support and encouragement owards the conduct of the
 efficient operations of the Company. Your Board is particularly
 indebted to is Principals, AB SKF who have supported the Company at all
 times.
 
                                         For and on behalf of the Board 
                                                      SKF India Limited
 
                                                              K C Mehra 
                                                               Chairman
 
 Pune, 
 February 23, 2011