(1) The company reviewed the disclosure of segmentwise reporting and is
 of the view that it manufactures Bearings and related components which
 is a single segment in accordance with Accounting Standard 17, Segment
 Reporting, issued under Companies (Accounting Standards) Rules, 2006.
 
 (2) In accordance wih Accounting Standard 18, Related party
 Disclosures, issued under Companies (Accounting Standards) Rules,
 2006, the Company has compiled the required information in the attached
 table.
 
 (i) List of Related Parties & relationship:
 
 Holding Company
 
 AB SKF (Head Office) Goteborq, Sweden
 
 Sr. Name of the Related Party 
 No.
 
 Affiliate Companies (All under the
 common control of AB SKF)
 
 1  SKF Acuation System (Liestal) AG (Magnetic Elektromotoren AG)
 
 2  Oy SKF AB, Finland
 
 3  P.T. SKF Indonesia, Indonesia
 
 4  RFT S.p.A., Italy
 
 5  RKS S.A.TSKF Slewing Bearings, France
 
 6  SKF (China) Sales Co. Ltd., China
 
 7  SKF (Dalian) Bearings and Precision & Co. Ltd.
 
 8  SKF (Thailand) Ltd, Thailand
 
 9  SKF (U.K.) Limited, United Kingdom
 
 10 SKF Actuators AB, Goteborg, Sweden
 
 11 SKF Argentina S.A., Argentina
 
 12 SKF Australia Pty. Ltd., Australia
 
 13 SKF B.V., Netherlands
 
 14 SKF Bearings Bulgaria EAD, Bulgaria
 
 15 SKF Canada Ltd, Scarborough, Ont. Canada
 
 16 SKF China Ltd., China
 
 17 SKF Condiion Monioring Cenre (Livingsone) Ltd, UK
 
 18 SKF Coupling Systems AB, Hofors, Sweden
 
 19 SKF de Mexico, S. A. de C. V. Mexico D.F., Mexico
 
 20 SKF del Peru S.A., Peru
 
 21 SKF do Brasil Ltda., Brazil
 
 22 SKF Equipements, France
 
 23 SKF Espanola S.A., Madrid, Spain
 
 24 SKF European Distribution Centre (EDC), Belgium
 
 25 SKF European Financial Service Cenre, EFC, Nieuwegein, Netherlands
 
 26 SKF France S.A., France
 
 27 SKF GmbH, Germany
 
 28 SKF Industrie S.p.A, Italy
 
 29 SKF International AB
 
 30 SKF Japan Ltd., Japan
 
 31 SKF Korea Ltd, Korea
 
 32 SKF Linearsysteme GmbH, Germany
 
 33 SKF Malaysia Sdn. Bhd. Malaysia
 
 34 SKF Osterreich AG., Austria
 
 35 SKF Philippines Inc., Philippines
 
 36 SKF Sealing Solutions (WUHU) CO., LTD, China
 
 37 SKF Sealing Solutions AB, Sweden
 
 38 SKF Shanghai Bearings Co. Ltd., China
 
 39 SKF South Africa (Pty) Ltd., South Africa
 
 40 SKF Asia Pacific Pte. Ltd., Singapore
 
 41 SKF Sverige AB, Sweden
 
 42 SKF Technologies India Pvt. Ltd., India
 
 43 SKF USA Inc., Kulpsville/Lansdale, PA, USA
 
 44 SKF Venezolana S.A., Caracas, Venezuela
 
 45 SKF Ukraine, Ukraina
 
 46 Transrol S.A.S., Chambery, France
 
 47 SKF Lubrications Systems, France SAS
 
 48 SKF Lubrications Systems, Germany AG
 
 49 SKF Mekan AB, Sweden
 
 50 Berger Vogel S.r.l., Italy
 
 51 Polyseal, USA
 
 52 Jaeger Industrial Co., Ltd., Taiwan
 
 53 ABBA LINEAR TECH CO LTD (Taipei), Taiwan
 
 54 SKF Engineering and Research Service B.V., Nieuwegein, Netherlands
 
 55 Economos India Private Ltd, New Delhi, India
 
 56 SKF Sealing Soluions GmbH, Leverkusent Opladen, Germany
 
 57 SKF Aero France S.A., SaintValliertsurtRhone, France
 
 58 SKF Linear Motion & Precision Technologies, USA
 
 59 SKF NV/SA, Belgium
 
 60 SKF Auomoive Componen Corp., Changwon (Pusan)
 
 61 SKF Bearing Services Taiwan, Taipei
 
 62 SKF Chilena S.A.I.C, Santiago
 
 63 SKF International AB (Treasury Centre), Goteborg
 
 64 SKF Bearing Industries (Malaysia) Sdn. Bhd, Nilai
 
 65 SKF Automotive Technologies Co.
 
 66 SKF Lubrication Systems Japan Ltd
 
 67 SKF Economos GmbH, Judenburg
 
 68 SKF Acuaion sysem(Pinghu) Co., Ld (former Jaeger (Pinghu) Precision
 Actuatronic Ltd)
 
 69 SKF Lubrication Systems USA Inc
 
 70 Beijing Nankou SKF Railway Bearings Co.Ld., Beijing
 
 71 SKF Hellas S.A., Ahens 
 
 Key Management Personnel
 
 1 Mr. Rakesh Makhija (upto December 31, 2009)
 
 2 Mr. Shishir Joshipura (w.e.f December 1, 2009)
 
                                                  (Rs. in Million)
                                    December 31,       December 31,
                                            2010              2009
 (3) Contingent Liabilities
 
 Claims against the Company not 
 acknowledged as debts
 
 (i) Income-tax and Surtax                  4.5             4.5
 
 (ii) Excise duty                           9.2             9.2
 
 (iii) Service Tax                         15.0            14.3
 
 (iv) Others                              147.7            31.4
 
                                          176.4            59.4
 
 (i) The provision for Disputed Stautory Matters are on account of legal
 matters, where the Company anicipates probable outflow. The amount of
 provision is based on esimate made by the Company considering the facts
 and circumstances of each case. The timing and amount of cash flows
 that will arise from these matters will be determined by the relevant
 authorities only on settlement of these cases.
 
 (ii) The provision for warranty and coupons (included in Other
 Obligations) is on account of warranties/coupons given on products sold
 by the Company. The provision is based on the historical data/
 estimated figures. The timing and amount of the cash flows that will
 arise from these matters will be determined at the time of receipt of
 claims from customers.
 
 (iii) Other Obligations also includes provisions on account of disputes
 pertaining to rent wih previous landlords. The timing and amount of
 cash flows that will arise from these matters will be determined by the
 relevant authoriies only on settlement of these cases.
 
 Figures in light print are in respect of the Previous Year.
 
 Notes:
 
 (i) The consumption in value has been reported on the basis of Opening
 Stock plus Purchases less Closing Stock and includes the adjusment of
 excesses and shortages as ascertained on physical count and wrie-off of
 obsolete and unserviceable raw materials and components.
 
 (ii) The consumption in value shown above is net of sale of raw
 material on high sea to suppliers to NIL (Previous year Rs. 124.7 mio).
 
 
 (iii) The consumption in value shown above is a balancing figure based
 on total consumption shown in Profit & Loss Account.
 
 (12) Information for each class of goods :
 
 (i) Installed capacity is per annum, as certified by the management.
 
 (ii) Production includes quantities used for internal consumption.
 
 (iii) Licensed capacity has not been shown as the industry has been
 delicensed.
 
 (4) a) The provision for taxation is net of reversal of excess
 provision for earlier years Rs. 4.1 Million (Previous Year Rs. 3.9
 Million).
 
 b) The provision for taxation is inclusive of short provision for
 earlier year Rs. Nil (Previous year Rs. 0.04 Million).
 
 c) The provision for deferred taxaion is inclusive of short provision for
 earlier years Rs.  5.0 Million (Previous Year Rs. 3.9 Million).
 
 d) The provision for Fringe Benefit Tax (FBT) is net of reversal of
 excess provision for earlier years Rs. Nil (Previous Year Rs. 4.0
 Million).
 
 (5) Micro, Small and Medium Enterprises Development Act, 2006 CMSMED
 Act):
 
 The Company has amounts due to suppliers under Micro, Small and Medium
 Enerprises Development Act (MSMED Ac) as at December 31, 2010
 
 (6) The net exchange difference arising during the year recognised in
 the Profit and Loss Account is Rs. 7.2 Million gain (Previous Year Rs.
 14.8 Million Loss).
 
 (7) During the current year, certain employees of SKF India Limited
 have been granted stock options under AB SKF Performance Share Award
 Agreement.  Pursuant to this, AB SKF has debited Rs. 7.1 mio (Previous
 year Rs. 0.2 mio) to its Profit and Loss Account.
 
 (8) The Company has facility from banks for working capital / working
 capital demand loans which are secured by pari passu charge of :
 
 a) all tangible movable properties and assets, both present and future,
 including stocks of Raw Materials, Se-itfinished goods and Finished
 goods, excluding movable Machinery Spares, Tools and Accessories and
 Stores and Spares
 
 b) all present and future Book Debts outstanding, Monies receivable,
 Claims and Bills
 
 (9) During the year ended December 31, 2009 the company had announced
 a Voluntary Reirement Scheme for its employees.  An amount of Rs.7.6
 Million incurred as VRS compensation under this scheme has been charged
 to the Profit and Loss Account for the year ended December 31, 2009
 
 (10) Prior years figures have been regrouped wherever necessary to
 conform to current years classification.