ANNUAL REPORT 2008-2009 - NRB Bearing...3 AGM NOTICE The Members, NRB BEARINGS LIMITED NOTICE thIS...

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ANNUAL REPORT

2008-2009

Directors : TrilochanSinghSahney,Chairman & Managing Director

Dr.P.D.Ojha Dr.(Ms.)KalaSPant HarshbeenaSZaveri KMElavia DeveshSSahney

Bankers : BNPParibas CitibankN.A. CanaraBank AxisBankLtd.

Auditors : A.F.Ferguson&Co.

Solicitors : WadiaGhandy&Co.

Registered Office : Dhannur,�5Sir.PMRoad,Fort, Mumbai40000�. Tel.:22664�60/22664998Fax:226604�2

Works : PokhranRoadNo.2,Majiwade, Thane-400606.

E-40,M.I.D.C.IndustrialArea,Chikalthana, Aurangabad-43�0�0.

C-6,AdditionalM.I.D.C.IndustrialArea, Jalna-43�203

E-72,(I)&(II)M.I.D.C.,Waluj, Aurangabad-43��33

A-5,UppalIndustrialEstate, Hyderabad-500039

PlotNo.33,Sector–II, SIDCULIIEPantnagar, UdhamsinghNagar,Uttarakhand-263�53.

Registrar & Share Transfer Agent : MondkarComputersPvt.Ltd. 25,ShakilNiwas,MahakaliCavesRoad, Andheri(East),Mumbai400093. Tel:28366620,28207203-05 Fax:28369704,28207207

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CONTENTS

Particulars Page No.Notice......................................................................................................................3

Directors’Report...................................................................................................��

AnnexuretoDirectors’Report..............................................................................�5

ManagementDiscussion&Analysis....................................................................�8

CorporateGovernance.........................................................................................22

Auditors’CertificateoncomplianceofCorporateGovernance...........................28

Shareholders’Information....................................................................................29

ReportoftheAuditors(NRB)................................................................................34

BalanceSheetasat3�stMarch2009(NRB).......................................................38

Profit&LossAccountfortheyearended3�stMarch2009(NRB)......................39

CashFlowstatementfortheyearended3�stMarch2009(NRB)......................40

SchedulestotheAccounts...................................................................................42

BalanceSheetAbstract&Company’sGeneralBusinessProfile........................65

StatementPursuanttoSection2�2......................................................................67

AbridgedAccountsofSubsidiaryCompanies.....................................................68

ReportoftheAuditors(Consolidated).................................................................69

BalanceSheetasat3�stMarch2009(Consolidated).........................................70

Profit&LossAccountfortheyearended3�stMarch2009(Consolidated).......7�

CashFlowstatementfortheyearended3�stMarch2009(Consolidated)........72

SchedulestotheConsolidatedAccounts............................................................74

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AGM NOTICE

TheMembers,NRBBEARINGSLIMITED

NOTICEISHEREBYGIVENthatthe44thAnnualGeneralMeetingofthemembersoftheCompanywillbeheldatMCGhiaHall,KDubashMarg,Mumbai40000�onWednesday,�2thAugust,2009,at��.00a.m.totransactthefollowingbusiness:

ORDINARY BUSINESS

�. ToreceiveandadopttheAccounts,BalanceSheet,CashFlowStatementsandthereportsoftheDirectorsandAuditorsfortheyearended3�stMarch,2009.

2. Todeclareadividendfortheyearended3�stMarch,2009.

3.ToappointaDirectorinplaceofDr.PDOjhawhoretiresbyrotationandiseligibleforre-appointment.

4. To appoint a Director in place of Mr. D S Sahney who retires by rotation and is eligible for re-appointment.

5. Toconsiderandifthoughtfit,topasswithorwithoutmodifications,thefollowingresolution:

“RESOLVED THAT M/s. A F Ferguson & Co., Chartered Accountants, Mumbai be and are herebyre-appointedasAuditorsoftheCompanytoholdofficeuntiltheconclusionofthenextAnnualGeneralMeetingonsuchremunerationplusout-of-pocketexpenses,asmaybemutuallyagreeduponbetweentheBoardofDirectorsandtheAuditors.”

SPECIAL BUSINESS

6. Toconsiderandifthoughtfit,topass,thefollowingResolutionasaSpecial Resolution.

Waiver of the requirement of repayment of excess remuneration paid by the Company in case of Mr. T S Sahney, Managing Director.

“RESOLVED THATpursuanttotheprovisionsofsection�98,269and309,andotherapplicableprovisions,ifany,oftheCompaniesAct,�956,(“the Act”)readwithPartIIofScheduleXIIItotheAct,asamendedfromtimetotime(includinganystatutorymodificationorre-enactmentthereof,forthetimebeinginforce)andsubjecttotheapprovaloftheCentralGovernment,theconsentoftheCompanybeandisherebyaccordedtoratifyand/orapprove,thepaymentsmadetoMr.TSSahney,ManagingDirectoroftheCompanyinexcessoftheremunerationpayabletoMr.TSSahneyinaccordancewiththeprovisionsofScheduleXIIItotheActforthefinancialyear2008-09;suchexcessamountamountingtoRs.28,8�,045/-(RupeesTwentyEightLakhEightyOneThousandFortyFiveonly).”

“RESOLVED FURTHER THATsubject to theapprovalof theCentralGovernment,and inaccordancewith the provisions of Section 309 of the Act, the recovery of aforesaid excess remuneration paid toMr.TSSahney,ManagingDirectorof theCompany for the financial year2008-09,being theamountexceedingthestatutorylimitslaiddownundertheAct,andarisingasaconsequenceofinadequacyand/orabsenceofprofits,beandisherebywaived.”

“RESOLVED FURTHER THATanyoneofMr.DSSahney,DirectorStrategicSourcingorMr.SCRangani,Company Secretary be and are severally authorized to make such application, provide such furtherinformationandexplanationandtosign,executeandsubmit thenecessaryapplications,declarations,statements,affidavits,documentsasmayberequiredinrespectoftheaforesaidapplicationmadetotheCentralGovernmentpursuanttotheprovisionsofSection309oftheActtogiveeffecttothisresolutionasrequiredfromtimetotime.”

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Waiver of the requirement of repayment of excess remuneration paid by the Company in case of Ms. Harshbeena S. Zaveri, President and Whole Time Director.

“RESOLVED THATpursuanttotheprovisionsofsection�98,269and309,andotherapplicableprovisions,ifany,oftheCompaniesAct,�956,(“the Act”)readwithPartIIofScheduleXIIItotheAct,asamendedfromtimetotime(includinganystatutorymodificationorre-enactmentthereof,forthetimebeinginforce)andsubjecttotheapprovaloftheCentralGovernment,theconsentoftheCompanybeandisherebyaccorded to ratifyand /orapprove, thepaymentsmade toMs.HarshbeenaS.Zaveri,PresidentandWholeTimeDirectoroftheCompanyinexcessoftheremunerationpayabletoMs.HarshbeenaS.ZaveriinaccordancewiththeprovisionsofScheduleXIIItotheActforthefinancialyear2008-09;suchexcessamountamountingtoRs.�5,44,848/-(RupeesFifteenLakhFortyFourThousandEightHundredandFortyEightonly).”

“RESOLVED FURTHER THATsubject to theapprovalof theCentralGovernment,and inaccordancewith the provisions of Section 309 of the Act, the recovery of aforesaid excess remuneration paid toMs. Harshbeena S. Zaveri, President and Whole Time Director of the Company for the financial year2008-09, being the amount exceeding the statutory limits laid down under the Act, and arising as aconsequenceofinadequacyand/orabsenceofprofits,beandisherebywaived.”

“RESOLVED FURTHER THATanyoneofMr.DSSahney,DirectorStrategicSourcingorMr.SCRangani,Company Secretary be and are severally authorized to make such application, provide such furtherinformationandexplanationandtosign,executeandsubmit thenecessaryapplications,declarations,statements,affidavits,documentsasmayberequiredinrespectoftheaforesaidapplicationmadetotheCentralGovernmentpursuanttotheprovisionsofSection309oftheActtogiveeffecttothisresolutionasrequiredfromtimetotime.”


Approval for payment of remuneration to Mr. T S Sahney, Managing Director.

“RESOLVED THATinaccordancewiththeresolutionpassedbythemembersatthe40thAnnualGeneralMeetingoftheCompanyheldonAugust��,2005,asmodifiedbytheBoardofDirectorsattheirmeetingheldon7thJune,2007andpursuanttotheprovisionsofSections�98,269,and309,andotherapplicableprovisions,ifany,oftheActreadwithScheduleXIIItotheAct,asamendedfromtimetotime(includinganystatutorymodificationorre-enactmentthereof,forthetimebeinginforce),subjecttotheapprovaloftheCentralGovernment,theconsentoftheCompanybeandisherebyaccordedforMr.TSSahneytocontinuetoremainappointedastheManagingDirectoroftheCompanyforaperiodfromApril0�,2009toSeptember30,20�0,onthefollowingbroadtermsandconditions:

(a) AbasicremunerationofRs.4,50,000inthegradeofRs.�,00,000-Rs.5,00,000.Theannualincrementswhichwillbeeffective�stOctobereachyearwillbedecidedbytheBoardandwillbemeritbasedandtakeintoaccounttheCompany’sperformance.

(b) Inadditiontothebasicsalarypayable,theManagingDirectorshallalsobeentitledtoallowances/perquisitesnotedbelowinaccordancewiththerulesoftheCompany.

(i) Housing

�. Free unfurnished accommodation in case the accommodation is owned by theCompany.

2. IncasetheaccommodationishiredbytheCompanytheexpenditurebytheCompanyonhiringsuchunfurnishedaccommodationfortheManagingDirectorwillbesubjecttoaceilingof60%ofthesalaryoverandabove�0%payablebytheManagingDirector.

3. IncasenoaccommodationisprovidedbytheCompany,theManagingDirectorshallbeentitledtohouserentallowancesubjecttotheceilingof60%ofthemonthlybasicsalary.

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(ii) Theexpenditureincurredbythecompanyongas,electricity,waterandfurnishingsshallbevaluedaspertheIncome-taxRules,�962.

(iii) Leavetravelassistance

ReimbursementofactualtravelingexpensestoanyplaceinIndiaandreturntherefrominrespectofhimselfandfamily.

(iv) ReimbursementofMedicalExpenses

Reimbursementofmedicalexpensesforselfandfamily.

(v) PersonalAccidentInsurance

PremiumnotexceedingRs.5500/-p.a.

(vi) ClubFees

Reimbursementofmembershipfeesforclubs.

(vii) Provisionofcarwithdriverandtelephoneatresidencewillnotbeconsideredasperquisites.

(viii) ContributiontoProvidentFund,willnotbeincludedinthecomputationoftheceilingonperquisitestotheextenttheseeithersinglyorputtogetherarenottaxable,undertheIncome-TaxAct.

(c) Commission-SuchremunerationbywayofCommissionattherateof�%foreachfinancialyear,inadditiontotheabovesalaryandperquisitescalculatedwithreferencetothenetprofitoftheCompanyinaparticularfinancialyear,asmaybedeterminedbytheBoardofDirectorsoftheCompanyattheendofeachfinancialyear,subjecttotheoverallceilingstipulatedinsections�98and309oftheAct,andlimitedtooneyearbasicsalarywillbepayabletotheManagingDirectorfortherelevantfinancialyear.

“RESOLVED FURTHER THAT,intheeventthatduringthecurrencyofthetenureofMr.TSSahneyasthe‘ManagingDirector’,theCompanyhasnoprofitsoritsprofitsareinadequate,theconsentofCompanybeandisherebyaccorded,subjecttotheapprovaloftheCentralGovernmentinthisregard,tocontinuetopaytheremunerationasmentionedhereinandasdeterminedbytheBoardofDirectorstoMr.TSSahneywithoutanyrequirementofMr.SahneyrefundingtotheCompany,inaccordancewiththeprovisionsofSection309oftheAct,suchpartoftheremunerationasagreedherein,whichmaybeinexcessoftheremunerationpayabletohiminaccordancewiththeprovisionsoftheAct.”

“RESOLVED FURTHER THAT,intheeventofabsenceorinadequacyofprofitsintheCompanyassetoutabove,anyoneofMr.DSSahney,DirectorStrategicSourcingorMr.SCRangani,CompanySecretarybeandareseverallyauthorizedtoseekapprovalof theCentralGovernment intermsoftheprovisionsofSection309of theAct, if required, forwaiverof therequirementof refundingbyMr.TSSahneyofsuchexcessmoniestotheCompany.”

“RESOLVED FURTHER THAT,ifnecessary,theCompanybeandisherebyauthorisedtomakeanapplication in theprescribed formwithin theprescribedperiod to theCentralGovernmentaspertheprovisionsofSection269andSection309of theAct forobtaining itsapproval topaymentofremunerationasprovidedaboveintheeventitexceedsthelimitsprovidedinPartIand/orIIofScheduleXIIItotheActandanyoftheDirectorsoftheCompanyortheCompanySecretarybeandareherebyseverallyauthorizedtoexecuteandsignsuchforms,writings,givesuchnotice,asmaybenecessaryinthisregard.”


Approval for payment of remuneration to Ms. Harshbeena S. Zaveri, President and Whole Time Director.

“RESOLVED THATinaccordancewiththeresolutionpassedbythemembersatthe40thAnnualGeneralMeetingof theCompanyheldonAugust��,2005,andasmodifiedby theBoardofDirectorsat theirmeetingheldon27thOctober,2006,7thJune,2007and30thJanuary,2009andpursuanttotheprovisionsofSections�98,269,and309,andotherapplicableprovisions,ifany,oftheActreadwithScheduleXIIItotheAct,asamendedfromtimetotime(includinganystatutorymodificationorre-enactmentthereof,for

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thetimebeinginforce),subjecttotheapprovaloftheCentralGovernment,theconsentoftheCompanybeandisherebyaccordedforMs.HSZaveritocontinuetoremainappointedasPresidentandwholetimedirectoroftheCompanyforaperiodfromApril0�,2009toApril0�,20�4,onthefollowingbroadtermsandconditions:

(a) BasicRemuneration -Rs. 2,85,000 in thegradeofRs. 75,000–Rs. 4,50,000.Annual incrementseffective�stAprileachyeartobedecidedbytheBoardandwillbemeritbasedandtakeintoaccounttheCompany’sperformance.

(b) Perquisites

Inadditiontothebasicsalarytheperquisitesnotedbelowwillalsobepayable.

(i) Housing

�. Freeunfurnishedaccommodationincasetheaccommodationisownedbythecompany.

2. IncasenoaccommodationisprovidedbytheCompanyhouserentallowancesubjecttoaceilingof60%ofthemonthlybasicsalary.

(ii) The expenditure incurred by the company on providing electricity and furnishings for theaccommodationshallbevaluedaspertheIncometaxrules�962.

(iii) Leavetravelassistance

Onceinayear,incurredinaccordancewiththerulesspecifiedbytheCompany,subjecttoaceilingofRs.�,00,000-p.a.

(iv) ReimbursementofMedicalExpensesReimbursementofmedicalexpensesforselfandfamily.

(v) Medical/AccidentInsuranceAsperrulesofthecompany.

(vi) PersonalAccidentInsuranceAsperrulesofthecompanywithannualpremiumnotexceedingRs.4500/-.

(vii) ClubfeesReimbursementofmembershipfeesforupto2clubsnotexceedingRs.40,000/-p.a.

(viii) Provisionofcarwithdriverandtelephoneatresidencewillnotbeconsideredasperquisites.

(ix) ContributiontoProvidentFund,SuperannuationFundwillnotbeincludedinthecomputationoftheceilingonperquisitestotheextenttheseeithersinglyorputtogetherarenottaxable,undertheIncome-TaxAct,Gratuitypayablewillnotexceedhalfamonth’ssalaryforeachcompletedyearofservice.

(c) Commission-SuchremunerationbywayofCommissionattherateof�%foreachfinancialyear,inadditiontotheabovesalaryandperquisitescalculatedwithreferencetothenetprofitoftheCompanyinaparticularfinancialyear,asmaybedeterminedbytheBoardofDirectorsoftheCompanyattheendofeachfinancialyear,subjecttotheoverallceilingstipulatedinsections�98and309oftheAct,andlimitedtohalfyear’sbasicsalarywillbepayabletothePresidentandWholetimeDirectorfortherelevantfinancialyear.

“RESOLVED FURTHER THAT,intheeventthatduringthecurrencyofthetenureofMs.HarshbeenaS.Zaverias thePresidentandWholeTimeDirector, theCompanyhasnoprofitsor itsprofitsareinadequate,theconsentofCompanybeandisherebyaccorded,subjecttotheapprovaloftheCentralGovernmentinthisregard,tocontinuetopaytheremunerationasmentionedhereinandasdeterminedbytheBoardofDirectorstoMs.ZaveriwithoutanyrequirementofMs.ZaverirefundingtotheCompany,inaccordancewiththeprovisionsofSection309oftheAct,suchpartoftheremunerationasagreedherein,whichmaybeinexcessoftheremunerationpayabletohiminaccordancewiththeprovisionsoftheAct.”

“RESOLVED FURTHER THAT,intheeventofabsenceorinadequacyofprofitsintheCompanyassetoutabove,anyoneofMr.DSSahney,DirectorStrategicSourcingorMr.SCRangani,Company

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Secretarybeandareseverallyauthorizedtoseekapprovalof theCentralGovernment intermsoftheprovisionsofSection309of theAct, if required, forwaiverof therequirementof refundingbyMrs.HarshbeenaS.ZaveriofsuchexcessmoniestotheCompany.”

“RESOLVED FURTHER THATifnecessary,theCompanybeandisherebyauthorisedtomakeanapplication in theprescribed formwithin theprescribedperiod to theCentralGovernmentaspertheprovisionsofSection269andSection309of theAct forobtaining itsapproval topaymentofremunerationasprovidedaboveintheeventitexceedsthelimitsprovidedinPartIand/orIIofScheduleXIIItotheActandanyoneofMr.DSSahney,DirectorStrategicSourcingorMr.SCRangani,CompanySecretarybeandareherebyseverallyauthorizedtoexecuteandsignsuchforms,writings,givesuchnotice,asmaybenecessaryinthisregard.”

ByOrderoftheBoard S C Rangani June2,2009 Secretary

Notes

�. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY AND SUCH PROXY NEED NOT BE A MEMBER OF THE COMPANY.

Proxies inorder tobeeffective,mustbe receivedby theCompanynot less than48hoursbefore themeeting.

2. TheRegisterofMembersoftheCompanyandTransferBooksthereofwillbeclosedfrom5thAugust,2009to�2thAugust,2009(bothdaysinclusive).

3. i) Thedividendafterdeclaration,willbepaidtothosesharehoderswhosenamesappearintheRegisterofMembersaftergivingeffecttoallvalidsharetransfersinphysicalformlodgedwiththeCompanyonorbefore4thAugust2009.

ii) Inrespectofsharesheldinelectronicform,tothose“deemedMembers”whosenamesappearsonthestatementsofbeneficialownershipfurnishedbyNationalSecuritiesDepositoryLimited(NSDL)andCentralDepositoryServices(India)Limited(CDSL)attheendofbusinesshourson4thAugust2009.

iii) Members and all others concerned are requested to lodge transfer deeds, change of addresscommunication,mandates(ifany)withtheCompany’sShareTransferAgentsM/s.MondkarComputersPvt.Ltd.,2�,ShakilNiwas,MahakaliCavesRoad,Andheri(East),Mumbai400093before4thAugust,2009.

4. TheSecuritiesandExchangeBoardofIndiahasmadeitmandatoryforallcompaniestousethebankaccountdetailsfurnishedbythedepositoriesfordepositingdividendthroughElectronicClearingService(ECS)toinvestorswhereverECSandbankdetailsareavailable.IntheabsenceofECSfacilities,thecompanywillprintthebankaccountdetailsifavailable,onthepaymentinstrumentfordistributionofdividend.

EXPLANATORY STATEMENT PURSUANT TO SECTION 192A(2) and 173(2) OF THE COMPANIES ACT, 1956.

Item No: 6

Waiver of the requirement of repayment of excess remuneration paid by the Company in case of Mr. T S Sahney, Managing Director.

Themembersatthe40thAnnualGeneralMeetingoftheCompanyheldonAugust��,2005,hadapprovedtheappointmentandremunerationofMr.TSSahneyasaManagingDirectorofaCompanyforaperiodoffiveyearsw.e.f.October0�,2005.ThereaftertheBoardofDirectorsattheirmeetingheldon7thJune,2007hadenhancedtheremunerationforallwholetimedirectorsinlinewithmarketlevels.

Due to inadequacy and absence of profits during the year 2008-09, the managerial remuneration paid toMr.TSSahneywasinexcessofthemaximumpermissiblelimitasprescribedunderScheduleXIIIoftheAct.Reasons forabsenceofprofit / inadequateprofithavebeensetout indetailelsewhere in thisExplanatoryStatement.

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TheexcessremunerationpaidtoMr.SahneyRs.28,8�,045/-(RupeesTwentyEightLakhEightyOneThousandFortyFiveonly)(excludingcontributiontoprovidentfundforthefinancialyear2008-09.)

AspertheprovisionsofSection309oftheCompaniesAct,�956,anyremunerationpaidtoadirectorinexcessofthemaximumremunerationpayabletohiminaccordancewiththeprovisionsofScheduleXIIIoftheCompaniesAct,�956isrequiredtoberefundedbythedirectortotheCompany,unlesssuchrequirementiswaivedbythecompanypursuanttoreceiptofpermissionfromtheCentralGovernment.

TheBoardofDirectorsat itsmeetingheldon2ndJune,2009,haveconsidered theextensiveexpertiseofMr.TSSahneyintheindustry,hissignificantcontributiontothegrowthoftheCompanyandthefactthattheremunerationpaidtohimisclearlyjustifiedbyhislongexperienceandachievementsandhaveaccordinglyratified,confirmedandapproved,subjecttotheapprovaloftheshareholdersandoftheCentralGovernment,thepaymentofaforesaidremuneration,inexcessofthelimitsprescribedunderScheduleXIIIoftheActandhavedecidedtowaivetherecoveryoftheexcessremunerationpaidtoMr.TSSahney,subjecttoapprovaloftheCentralGovernmentinthisregard.Anapplicationinthisregard,willbemadetoCentralGovernmentforseekingitsapprovalforwaiveroftherequirementforrecoveryofexcessremunerationpaidtoMr.TSSahney.

TheBoardofDirectorsrecommendsthepassingofthisresolution.NootherdirectorexceptMr.TSSahney,Ms. H S Zaveri and Mr. D S Sahney is interested in passing of the resolution to the extent of the excessremunerationpaidtoMr.TSSahney.

Item No : 7

Waiver of the requirement of repayment of excess remuneration paid by the Company in case of Ms. Harshbeena S. Zaveri, President and Whole Time Director.

Themembers,atthe40thAnnualGeneralMeetingoftheCompanyheldonAugust�3,2005,hadapprovedtheappointmentandremunerationofMs.HarshbeenaS.Zaveri,PresidentandWholeTimeDirectoroftheCompanyforaperiodof5yearsw.e.f.April0�,2005.ThereaftertheBoardofDirectorsattheirmeetingheldon27thOctober,2006and7thJune,2007hadenhancedtheremunerationforallwholetimedirectorsinlinewithmarketlevels.

Due to inadequacy and absence of profits during the year 2008-09, the managerial remuneration paid toMs.ZaveriwasinexcessofthemaximumpermissiblelimitasprescribedunderScheduleXIIIoftheAct.Reasonsforlossofprofit/inadequateprofithavebeensetoutindetailelsewhereinthisExplanatoryStatement.

TheexcessremunerationpaidtoMs.ZaveriwasRs.�5,44,848/-(RupeesFifteenLakhFortyFourThousandEightHundredandFortyEightonly)(excludingcontributiontoprovidentfundandsuperannuationschemeforthefinancialyear2008-09.)

AspertheprovisionsofSection309oftheCompaniesAct,�956,anyremunerationpaidtoadirectorinexcessofthemaximumremunerationpayabletohiminaccordancewiththeprovisionsofScheduleXIIIoftheCompaniesAct,�956isrequiredtoberefundedbythedirectortotheCompany,unlesssuchrequirementiswaivedbythecompanypursuanttoreceiptofpermissionfromtheCentralGovernment.

TheBoardofDirectorsat itsmeetingheldon2ndJune,2009,haveconsidered theextensiveexpertiseofMs.Zaveri in the industry,her significant contribution to thegrowthof theCompanyand the fact that theremunerationpaidtoherisclearlyjustifiedbyherlongexperienceandachievementsandhaveaccordinglyratified,confirmedandapproved,subjecttotheapprovaloftheshareholdersandoftheCentralGovernment,thepaymentofaforesaidremuneration,inexcessofthelimitsprescribedunderScheduleXIIIoftheActandhavedecidedtowaivetherecoveryoftheexcessremunerationpaidtoMs.HarshbeenaSZaveri,subjecttoapprovaloftheCentralGovernmentinthisregard.Anapplicationinthisregard,hasalreadybeenmadetoCentralGovernmentforseekingitsapprovalforwaiveroftherequirementforrecoveryofexcessremunerationpaidtoMs.HarshbeenaSZaveri.

The Board of Directors recommends the passing of this resolution. No Director of the Company exceptMs.HSZaveri,Mr.TSSahneyandMr.DSSahneyisinterestedinpassingoftheresolutiontotheextentoftheexcessremunerationpaidtoMs.HSZaveri.

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Item No : 8

Approval for payment of remuneration to Mr. T S Sahney, Managing Director.

Asthemembersareaware,Mr.TSSahneywasappointedasa‘ManagingDirector’oftheCompanyforaperiodof5yearswitheffectfromOctober0�,2005atanAnnualGeneralMeetingoftheCompanyheldonAugust��,2005.

Duetoinadequacyandabsenceofprofits,theBoardofDirectorsoftheCompany,attheirmeetingheldon2ndJune,2009,haveconsidered,andsubjecttoapprovalofmembers,approvedthecontinuationofhistenurefortheperiodfromApril0�,2009toMarch3�,20�0andhaveapprovedthecontinuationofthepaymentoftheremunerationpresentlybeingpaidtoMr.TSSahneywithouttherequirementofrefundbyMr.TSSahneyinaccordancewiththeprovisionsofSection309oftheActofanyamountspaidtoMr.TSSahney,whichmaybeinexcessoftheremunerationpayabletoMr.TSSahneyinaccordancewiththetermsofPartIIofScheduleXIIIoftheAct.

This Resolution seeks to obtain the Members’ and Central Governments’ approval for continuation ofMr.TSSahneyastheManagingDirectoroftheCompanyandcontinuationofpaymentofremunerationtoMr.TSSahneyassetoutintheresolution.

ThismaybetreatedasanabstractofthetermsandconditionsgoverningtheappointmentofMr.TSSahneyastheManagingDirectoroftheCompany.

NoDirectoroftheCompanyexceptMr.TSSahney,Ms.HSZaveriandMr.DSSahneyisconcernedorinterestedinthisResolution.TheBoardofDirectorsoftheCompanyrecommendthepassingofthisSpecialResolution.

Item No: 9

Approval for payment of remuneration to Ms. Harshbeena S. Zaveri, President and Whole Time Director.

Asthemembersareaware,Ms.HarshbeenaS.ZaveriwasappointedasthePresidentandWholeTimeDirectoroftheCompanyforaperiodof5yearswitheffectfromApril0�,2005atanAnnualGeneralMeetingoftheCompanyheldonAugust��,2005onthetermsandconditionssetouttherein.AttheBoardmeetingheldon30thJanuary,2009theBoardofDirectorshaveapprovedthere-appointmentofMs.HSZaveriasPresidentandWholetimedirectorforafurtherperiodof5yearsw.e.f.�stApril,2009to3�stMarch,20�4onthetermsandconditionsincludingremunerationasapprovedattheBoardmeetingheldon7thJune,2007.

Duetoinadequacyandabsenceofprofits,theBoardofDirectorsoftheCompany,attheirmeetingheldon2ndJune,2009,haveconsidered,andsubject toapprovalofmembers,approved thecontinuationofhertenurefortheperiodfromApril0�,2009toMarch0�,20�4andhaveapprovedthecontinuationofthepaymentoftheremunerationpresentlybeingpaidtoMs.HarshbeenaSZaveriwithouttherequirementofrefundbyMs.HarshbeenaSZaveriinaccordancewiththeprovisionsofSection309oftheActofanyamountspaidtoMs.HarshbeenaS.Zaveri, which may be in excess of the remuneration payable to Ms. Harshbeena S Zaveri,whichmaybeinexcessoftheremunerationpayabletoMs.HarshbeenaSZaveriinaccordancewiththetermsofPartIIofScheduleXIIIoftheAct.

This Resolution seeks to obtain the Members’ and Central Governments’ approval for continuation ofMs.HarshbeenaSZaveriasthePresidentandWholeTimeDirectoroftheCompanyandcontinuationofpaymentofremunerationtoMs.HarshbeenaSZaveriassetoutintheresolution.

ThismaybetreatedasanabstractofthetermsandconditionsgoverningtheappointmentofMs.HarshbeenaSZaveriasthePresidentandWholeTimeDirectoroftheCompany.

NoDirectoroftheCompanyexceptMs.HarshbeenaSZaveri,Mr.TSSahneyandMr.DSSahneyisconcernedorinterestedinthisResolution.TheBoardofDirectorsoftheCompanyrecommendthepassingofthisSpecialResolution.

Reasons for inadequacy of profits in FY 2008-09

�. Automotivesectordemandturnedsluggishasaresultoftheglobaleconomicslowdown.

2. Operatingprofitshitby:

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a) Sharpincreaseincostsofmaterialsconsumedowingtohighcommodityprices,particularlyofsteelandoilbasedinputs

b) risingemployeecostspartiallyabsorbedasproductionvolumesshowednegativegrowth.

3. Investmentsinenhancedproductioncapacitiesremainedpartiallyutilizedowingtodownturnindemandbutresultedinhigherchargefordepreciation.

4. Exchangelossincurredarisingfromunexpectedvolatilityincurrencymovements.

5. Higher requirementofcapitalemployed in thebusiness tonurse the increased inventories,slowdown incollectionsandadditionaldebtincurredforfinancingcapacityenhancementsresultedinhigherinterestcharges.

TheBoardofDirectorsareof the view that theadverse factorshave startedcorrecting in thecurrentfinancialyear–demandisshowingsignsofsustainedimprovement,commoditypriceshavestabilizedatmorereasonablelevels,interestrateshaveeasedandcurrencymovementshavebeenfavourablewiththeINRshowingstrengthwiththeimprovedprospectsfortheIndianeconomy.Thefundamentalparametersforthecompanyaresoundandconsideringitspastfinancialperformance,thecompanyexpectstohaveadequateprofitsforthecurrentfinancialyear.

Notes on Directors seeking re-appointment

AsrequiredunderListingAgreement,particularsofDirectorswhoaretobere-appointedaregivenbelow:

�. Name Dr.PDOjha

DateofBirth 0�.07.�929

Qualifications B.A(Econ)M.A(AdvancedEcon),Ph.D(Economics)

Experience 56 years experience post qualification, as Professor and Head ofEconomicsDept.HeldkeypositionswithTheReserveBankofIndiafromwhereheretiredasDeputyGovernor

DirectorSince 03.06.�99�

Category NonExecutiveandindependent

DIN 009734�0

ListofotherDirectorships WeizmannLtd-ChairmanKJMCInvestmentTrustCo.Ltd.

MembershipinCommitteesinothercompanies

WeizmannLtd-MemberAuditCommittee

No.ofsharesheld Nil

2. Name Mr.DSSahney

DateofBirth �7.��.�968

Qualifications Bachelor of Arts degree (Business Administration & Economics) fromRichmondCollege,LondonandMasterinBusinessAdministration(Generalmanagement)fromtheAsianInstituteofManagement(Phillipines)

Experience �6years

DirectorSince May200�

Category ExecutiveandNonindependent(Promoter)

DIN 00003956

ListofotherDirectorships None

MembershipinCommitteesinothercompanies

None

No.ofsharesheld �752300

ByOrderoftheBoard S C Rangani June2,2009 Secretary

��

DIRECTORS’ REPORT

ToTheMembersNRBBEARINGSLIMITEDMumbai

YourDirectorshavepleasureinpresentingtheirFortyfourthAnnualReporttogetherwithAuditedAccountsfortheyearended3�stMarch,2009.

�. Financial Results Year ended Yearended 31st March, 2009 3�stMarch,2008 Rs. lacs Rs.lacs Profitbeforeprovidingfor Depreciationandtaxation 2855.53 6980.46

Less:Depreciation �939.47 �796.84 Provisionfortaxation Current(net) 280.07 �650.00 Deferred �29.67 97.37 FBT 80.00 85.00 Profitaftertaxation 426.32 335�.25 Add:Balancebroughtforward 257�.3� 9�5.92 2997.63 4267.�7 Appropriation: Dividend 775.38 ��63.07 Taxondistributedprofits �3�.78 �97.66 GeneralReserve 50.00 335.�3 Profit&LossAccount 2040.47 257�.3� 2997.63 4267.�74267.�7 2. Dividend

DirectorsrecommenddividendofRs.�.60/-perequityshareofRs.2/-(Rs.2.40pershareforpreviousyear)payabletomembers/beneficialownersaspertheRegisterofMembersasapplicableaggregatingRs.907.�6lacs.

3. Operations

Sales(netofexciseduty)fortheyearended3�stMarch,2009wereRs.29074lacsasagainstRs.32�42lacsinthepreviousyear,adecreaseof9.5%.Profitbeforetax(PBT)wasatRs.9�6lacsascomparedtoRs.5�84lacsin2007-08,downby82.3%.Afterprovidingforcurrentanddeferredtaxes,theProfitaftertax(PAT)wasRs.426lacs(Rs.335�lacsin2007-08),downby87.3%.

2008-09beganonabuoyantnote– the initialmarketparameterswereencouragingandreflected themultidimensionalstrengthsofourdomesticeconomy.However,astheyearunfolded,globalmarketsweresubjecttodevelopmentssuchasvolatilityincrudeoilprices,inflationarypressures,particularlycommodityprices,and lateron, thesub-primecrisis in theUS.Over the last2quartersof theyear,aneconomicslowdownenvelopedthewholeworldandIndiahasalsobeenimpacted,witnessingamoderationingrowth.CorrectiveactionbytheGovernment&RBImanagedtocontaintheinflationaryspiralandspurgrowth.BusinessconfidenceisreturningandmostbelievethatthefundamentalsofemergingIndia’sgrowthstoryareintact.

�2

Duringtheyear,inspiteoftheglobalmeltdownaffectingdemandfrominternationalcustomers,exportscouldregisteragrowthof25%.Thecompanyiscontinuingitsproductdevelopmentinitiativesforthenewplatformsofitsinternationalcustomers,thoughasharprecoveryindemandisexpectedonlyinthefinancialyear20�0-��.

AsrequiredunderthenewAccountingStandards,relatedpartytransactions,calculationsofearningspershare,provisionofdeferredtaxliabilityandconsolidatedaccountsofthecompanyanditssubsidiariesaremadeapartoftheAnnualReport.

4. Public Deposits

Thecompanyhasnottakenfixeddepositsduringtheyear.Therearenounclaimeddeposits.

5. Directors

Dr.PDOjhaandMr.DSSahneyretirebyrotationpursuanttoArticle��oftheArticlesofAssociationandareeligibleforreappointment.

6. Subsidiaries and Joint Venture Company

Asof3�stMarch,2009thecompanyhastwosubsidiariesviz.SNLBearingsLtd(SNL)andNRBBearings(Thailand)Ltd.TheconsolidatedresultsincludetheworkingofthesesubsidiariesandofthejointventurecompanySchneeberger(India)Pvt.Ltd.

SNLBearingshasreportedalowerPATofRs.�00lacs(previousyearRs.275lacs)andhasbeenaffectedbytheslowdownindemand.

NRBBearings(Thailand)Ltd.hasincurredalossofTHB�9.�85million(Rs.269lacs).Commercialproductionisexpectedtocommenceduringthefirsthalfof09-�0.

Schneeberger (India)Pvt. Ltd. has, for the financial yearended3�stDecember, 2008,net revenueofRs.35.35lacsandaPATofRs.�[email protected]%hasbeendeclaredfortheyear.

7. Information regarding employees

InformationpursuanttoSection2�7(2A)oftheCompaniesAct,�956readwiththeCompanies(ParticularsofEmployees),Rules,�975formspartofthisreport.

8. Conservation of energy, technology absorption, foreign exchange earnings and outgo

InformationrequiredasperSection2�7(�)(e)oftheCompaniesAct,�956readwithCompanies(DisclosureofParticularsintheReportofBoardofDirectors)Rules,�988hasbeengivenintheAnnexureformingpartofthisreport.

9. Industrial Relations

Duringtheyearthecompanymaintainedcordialrelationswiththeworkmen’sunionsatallplants.

�0. Safety, Health and Environment

Thecompany’splantsatThane,Aurangabad,Waluj,HyderabadandJalnahavealreadybeenawardedinternationally recognized external certification viz. ISO�400�:2004 (for adherence to environmentalprocesses),OHSAS:�800�:�999(forHealth&Safety)andISO/TS:�6949:2002(qualitymanagement)

Thecommitmenttotheenvironmentextendsbeyondlegalcompliancerequirementsandinitiativesareunderwayacrossthecompany’slocationstominimizetheconsumptionofnaturalresourcesandreducingwasteandemissions.Energyandwatermanagementpracticesarebeingcontinuouslyupgradedandincludegreeningprogrammes,rainwaterharvesting,vermiculture,treatmentplants,etc.Acousticenclosureshavebeenprovidedfornoisereductionandnaturalwindventilatorsinstalledtoimproveventilation.

�3

Safetyisaccordedthehighestprioritybythecompany.Aclearsafetypolicy,severaltrainingprogrammesandcommunicationtoolshavebeenputinplace.Projectsarecontinuouslyidentifiedforimprovementsandworkerparticipationandregularvisitsundertakenbysafetycommitteememberstounitsintheautosector.TPMtechniqueslikePokaYoke(mistakeproofing),photo-electricsafetyguards,twohandswitchoperations,gasandfumesdetectionsystemsarebeingimplementedonmachinestominimizeaccidents.Trainingandcompetenceprogrammesareconductedtoeducateandcreateawarenessamongstemployees,theirfamiliesandthecompany’scontractors.

��. Corporate social responsibility

Yourcompanyhasalwaysbelievedinandworkedtowards“inclusivegrowth”-improvingthequalityoflifeofthepeoplewetouchandinthecommunitieswhereweoperate.Thecompanyvaluesitspartnershipwiththelocalauthorities(adoptionofITI’satJalna,Ambad,GangapurandDevulgaonraja)andsupportstheIMCWorldBankprojectforupgradationofITI’satUsmanbadandNilangacontributingtotheskillsdevelopmentoflocals.

ThecompanyisoneofthecosponsorsinaprojectlaunchedbyTERI(TheEnergyandResourcesInstitute,Mumbai) to target2000children from20municipalschools inandaroundMumbai inanenvironmenteducationandawarenessproject-globalwarming,biodiversity,water,wasteandenergy.

�2. Corporate governance

Pursuanttoclause49ofthelistingagreementswiththestockexchanges,aManagementDiscussionandAnalysis,CorporateGovernanceReportandAuditors’CertificateregardingcomplianceofconditionsofCorporateGovernancearemadepartoftheAnnualReport.

TheCodeofConductforDirectorsandSeniorManagementpersonnelofthecompany,asapprovedbytheBoard,hasbeenaffirmedonanannualbasisbyalltheDirectorsandtheSeniorManagementpersonneloftheCompany.

TherelevantcertificationonthevariousmattersspecifiedunderparagraphVofclause49hasbeendonebytheManagingDirectorandtheSr.VPFinance&Co.SecretaryoftheCompany.

Inthecontextofmandatoryrequirementtopresentconsolidatedaccounts,whichprovidesmemberswithaconsolidatedpositionof thecompany includingsubsidiaries,at the first instance,membersarebeingprovidedwiththeReportandAccountsofthecompanytreatingtheseasabridgedaccountsascontemplatedbySection2�9oftheCompaniesact,�956.Wehaveprovidedtheabridgedbalancesheetandtheabridgedprofitandlossaccountofthesubsidiarycompaniestothemembers.Copiesoftheunabridgedbalancesheet,unabridgedprofitandlossaccountandotherdocumentsannexedtothesameshallbemadeavailableforinspectionattheregisteredofficeofthecompany.

MembersdesirousofreceivingthefullReportandAccountsofthesubsidiarieswillbeprovidedthesameonreceiptofawrittenrequestfromthem.ThiswillhelpsaveconsiderablecostinconnectionwithprintingandmailingoftheReportandAccounts.

�3. Directors’ responsibility statement

InaccordancewithSection2�7(2AA)oftheCompaniesAct,�956,theDirectorsstatethat:

i. inthepreparationofannualaccounts,allapplicableaccountingstandardshavebeenfollowedandnomaterialdepartureshavebeenmadefromthesame;

ii. accountingpoliciesaslistedintheSchedule�9tothefinancialstatementshavebeenselectedandconsistentlyappliedandreasonableandprudentjudgementsandestimateshavebeenmadesoastogiveatrueandfairviewofthestateofaffairsoftheCompanyason3�stMarch,2009andoftheprofitoftheCompanyfortheaccountingyearendedonthatday;

iii. proper and sufficient care for maintenance of adequate accounting records has been taken inaccordancewiththeprovisionsoftheActsoastosafeguardtheassetsoftheCompanyandtopreventanddetectfraudandotherirregularities;

iv. theAnnualAccountshavebeenpreparedonagoingconcernbasis.

�4

�4. Audit Qualification

TheAuditor’sReportfortheyearended3�stMarch’2009drawsattentiontonote��(a)ofSchedule20thatinadequateprofitsduringtheyearhaveresultedinexcessremunerationofRs.44.26lacshavingbeenpaidtotheManagingDirectorandoneWholetimeDirectorconsideringtheprovisionsofSections�98and269,readwithScheduleXIIIoftheCompaniesAct,�956.Suchpaymentrequirestheapprovalofshareholdersbywayofspecialresolution,whichisproposedinthenoticefortheensuingAGM,andthepriorapprovaloftheCentralGovernment,whichapplicationshallbemadebythecompanyafterobtainingshareholdersapproval.TheBoardofDirectorsareoftheviewthatthefinancialresultsfortheyearhavebeenaffectedbytheunprecedentedglobalmeltdownandtheunexpectedvolatilityincurrencymovements.Thefundamentalparametersforthecompanyaresound,theadversefactorshavestartedcorrectinginthecurrentfinancialyearandconsideringthepastfinancialperformanceofthecompanythenecessaryapprovalsshouldbeforthcoming.

�5. Auditors

M/s.AFFerguson&Co.retireattheensuingAnnualGeneralMeetingandareeligibleforre-appointment.TheAuditCommitteeandtheBoardrecommendsthereappointmentofM/sAFFerguson&Co.,CharteredAccountants,astheAuditorsoftheCompany.

�6. Acknowledgement

TheDirectorsplaceon record theirappreciationof theenthusiasmandunstintingefforts renderedbyemployeesatalllevels.TheDirectorsalsowishtoacknowledgewiththanksallotherstakeholdersfortheircooperationandsustainedsupport.Yourcompanywillcontinueinitsendeavourtobuildandnurturethesestronglinkswithallitspartners,basedonmutuality,respectandcooperationwitheachother.

YourDirectorslookforwardtothefuturewithconfidence.

OnbehalfoftheBoard

T S SahneyMumbai:June2,2009 Chairman

�5

ANNEXURE TO DIRECTORS’ REPORT

Particulars under the Companies (Disclosure of particulars in the Report of Board of Directors) Rules, 1988.

A. Measures taken for Conservation of Energy

Thecompanyhasalwaysbeenconsciousoftheneedforconservationofenergy.Effortsforconservationofenergyinallareasaremadeonacontinuousbasis-maximizinguseofdaylight,usingenergyefficientlamps,optimumutilizationoffurnaces,providingvariablespeeddriveformotorsonmachines,arrestingleakagesincompressedairpipingandelectricalsystemsanduseofalternatefuelinassembly.Themajorareaswherespecificenergyconservationmeasureshavebeenimplementedduringtheyearare:-

• Atallplantsthepowerfactor iscontinuallymonitoredandmaintainedintherangeof0.98to�.00resultinginsubstantialsavingsinenergybillsbywayofrebatesfromtheStateElectricityBoards.

• AtJalna,usageofenergyefficientlampsandmotorshaveresultedinannualsavingsofRs.�.45lacs.

• AtWaluj,useofenergyefficientlightsandfittingofvariablefrequencydriveshavegivenannualsavingsofRs.0.86lacs.

• AtHyderabad,coolingwatercirculationpumpschangedto3HPfrom7.5HPandairleakagesarrested.AnnualsavingsofRs.4.5lacs.

• AtThane,usageofThyristercontrolsandautoignitionsystemsonfurnacesandnaturalwindventilatorshaveresultedinpowersavingsofRs.�.09lacsandLPGsavingsofRs.0.3�lacs.

• AtAurangabad reduction inLPGconsumptionbychangeofprocess to the tuneofRs.�.95 lacsannually.

B. Technology Absorption, Research & Development (R & D)

Thecompanyhasacontinuingprogrammetoenhanceitsrangeofproductstomeetthefutureneedsoftheevolvingmarketbyprovidingastrongpropositionforitscustomers.Aspartofthisprogramme,itsengineeringandtechnologydevelopmentcentershavecarriedoutimprovementsasdetailedbelow:

SpecificareasinwhichR&Discarriedoutbythecompany

Mainthrustduringtheyearwason:NewproductdevelopmentContact stress analysis/dynamic analysis capability enhanced using FEMtechnologyStandardisationofmaterialandqualityspecifications–usageofmaterialtoimproveimpactstrength,newlubricantsforuseinadverseconditions,plasticcagesforhightemperatureapplicationsDevelopedcompetenciesonsurfaceengineeringandcoatingsApplicationbasedcalculationcapability,simulationandtesting

BenefitsderivedasaresultoftheaboveR&D

There was quantum jump in new product development – �20 new sizes,specialweldedcageCRBs,intricatetransmissioncomponents(thickshell),self locking thrust bearings, progressive tools for sheet metal parts andalternatetoolmaterialforrapiddevelopment.Toimproveproductlife,alternatespecificationsforrawmaterialshavebeenworkedout.Chemicallaboratorysetupfortestingalltypesofcomponentsandidentifyingheavyhazardousmaterialsformeetingglobalenvironmentalrequirements.Technicalpapersonbearingfinitesimulation,dynamic impact load,metalformingandthrustbearingcontact,published.

Futureplanofaction NewproductdevelopmentSelflockingpolyamidecages,specialdoubleseriescylindricalrollersandwichbearingsTestingofbearingsinoscillatingconditionSystemforlifelonglubricationandrustpreventionPlanningrapidprototypedevelopmentshopforcompressingNPDtime.

ExpenditureonR&D DuringtheyearanamountofRs.25�.��lacshasbeenincurredonrevenueandRs.44.72lacsoncapitalaccountforR&Dexpenses.

�6

C. Foreign exchange earnings and outgo Foreignexchangeearnings Rs.4540lacs Foreignexchangeoutgo Rs.4657lacsInformationpursuanttoSection2�7(2A)oftheCompaniesAct,�956readwiththeCompanies(ParticularsofEmployees),Rules,�975

Name,Qualifications&Designation (Age)Experience

DateofComm.

ofEmplmt.

RemunerationRupees

LastEmployment

Mr.TSSahney,M.AChairman&ManagingDirector

(8�)62

�7.7.�966 82,2�,045 -

Ms.H.S.Zaveri,A.B(USA)President

(49)22

0�.�0.�987 72,68,248 -

Mr.DSSahney,BBA (UK), MBABBA(UK),MBADirector-StrategicSourcing

(40)�6

Oct�993 52,�3,5�0 TraineeCreditLyonnaisBank,

Mr.S.C.Rangani,BCom,MMS,ACSSr.VPFinance&Co.Secretary

(60)38

22.02.�993 59,75,9�0 GM-Finance&SystemsPoyshaInd.Co.Ltd.

Dr.SMSinghi,BSc,LLM,PH.d (Law)BSc,LLM,PH.d(Law)VPPersonnel

(56)32

�5.07.�99� 3�,2�,846 Sr.Manager-HRLloydsSteelIndus.Ltd

Mr.ASKohli**BE(Mechanical),PGDIMVP-SpecialProjects

(52)3�

04.03.�996 4,70,�70 GeneralManagerCoventrySpring&Engg.Co.Ltd.

Mr.AChaudhuri,B.Tech.PGDBMB.Tech.PGDBMSr.VPOperations

(55)3�

0�.07.2006 40,80,450 Chief(Operations&Tech.Services)TataSteelLtd,(BearingsDivn)

Mr.RSen,BE (Mech.), PGCGMBE(Mech.),PGCGMVPSales&Marketing

47(24)

0�.04.2005 33,35,090 GM-WesternRegionLucasIndia

Mr.RMatkar,B.E (Mech.), (M.E.Prod.)B.E(Mech.),(M.E.Prod.)VPProjects&Logistics

56(32)

02.08.2005 28,30,840 VicePresident(SC&Sourcing)Celetronix(India)

Mr.PRay,B.E (Mechanical)B.E(Mechanical)VPEngineering

53(3�)

�9.07.�999 27,6�,596 HeadofDesign&DevelopmentTataSteelLtd,(BearingsDivn)

Mr.MNShintre*BE,MMS,GradICWAVPFinance

(43)2�

07.05.2007 �4,35,2�5 VPFinance&ITTataAutocompSystemsLtd.

Mr.B.D.Patil*BSc.,MLSVPHR

(5�)25

29.05.2007 8,04,240 HeadHRModernFoodsLtd.,NewDelhi

Ms.JSharma*BCom,CA,CPA,VP-CFO

(42)�5

23.03.2009 77,79� GlobalManager-Finance,SKFAsiaPacificPvt.Ltd.

Mr.HHKamping(Degree in Mech.Engg.)DegreeinMech.Engg.)VPInternationalBusinessDevelopment

(53)29

��.06.2007 �,02,82,859 ChiefEngineerAutomotiveTimken,Halle/WestFalen

*Partoftheyear**OnsecondmenttoNRBBearings(Thailand)Ltd.

ThenatureofemploymentiscontractualandtermsofremunerationaregovernedunderBoardandMembers’resolutions.Grossremunerationincludessalary,bonus,commission,company’scontributiontoprovidentfundandsuperannuationscheme,allowances,perquisites,leaveencashmentasapplicablebutexcludescontributiontogratuityfundmadeonthebasisofactuarialvaluation.

OnbehalfoftheBoard


�7

CEO/CFO CERTIFICATION

TheManagingDirector(CEO)andtheSr.VPFinance&CompanySecretary(CFO)ofNRBBearingsLtdherebycertifytotheboardthat:

a. wehavereviewedfinancialstatementsandthecashflowstatementfortheyearandthattothebestofourknowledgeandbelief:

(i) thesestatementsdonotcontainanymateriallyuntruestatementoromitanymaterialfactorcontainstatementsthatmightbemisleading;

(ii) thesestatementstogetherpresentatrueandfairviewofthecompany’saffairsandareincompliancewiththeexistingaccountingstandards,applicablelawsandregulations

b. tothebestofourknowledgeandbelieftherearenotransactionsenteredintobythecompanyduringtheyearwhicharefraudulent,illegalorviolativeofthecompany’scodeofconduct.

c. weacceptresponsibilityforestablishingandmaintaininginternalcontrolsforfinancialreportingandthatwehaveevaluatedtheeffectivenessoftheinternalcontrolsystemsofthecompanypertainingtofinancialreportingandwehavedisclosedtotheauditorsandtheAuditCommittee,deficienciesinthedesignoroperationsofinternalcontrols,ifany,ofwhichweareawareandthestepswehavetakenorproposetotaketorectifythesedeficiencies.

d. wehaveindicatedtotheauditorsandtheAuditCommittee:

(i) significantchangesininternalcontroloverfinancialreportingduringtheyear;

(ii) significantchangesinaccountingpoliciesduringtheyearandthatthesamehavebeendisclosedinthenotestothefinancialstatements;and

(iii) therearenoinstancesofsignificantfraudofwhichwehavebecomeawareandtheinvolvementtherein,ifany,ofthemanagementoranemployeehavingasignificantroleinthecompany’sinternalcontrolsystemoverfinancialreporting.

T S SAHNEY S C RANGANIMumbai:June2,2009 ManagingDirector(CEO) Sr.VPFinance&Co.Secretary(CFO)

DECLARATION REGARDING COMPLIANCE BY BOARD MEMBERS AND SENIOR MANAGEMENT PERSONNEL WITH THE COMPANY’S CODE OF CONDUCT

This is to confirm that the Company has adopted a Code of Conduct for all Board Members and SeniorManagementpersonnelandthesamehasbeenplacedontheCompany’swebsite.AllBoardMembersandSeniorManagementpersonnelhaveaffirmedcompliancewiththeCodeofConductinrespectofthefinancialyearended3�stMarch,2009.


�8

MANAGEMENT DISCUSSION AND ANALYSIS

BUSINESS REVIEW

ThecompanyisintheballandrollerbearingbusinessandistheonlymanufacturerinIndiamakingallthebroadtypesofbearingsviz.ballbearings,needle/cylindrical/spherical/tapered/thrustrollerbearings.Theannualproductionofthedomesticorganizedsectorhasmarginallydeclinedby�%atRs.2840croresfortheyear2008-09.Yourcompany’smarketshareinthedomesticorganizedsectoris�0.25%.

Afterthesub-primecrisisintheUSandcollapseofsomeoftheworld’slargestfinancialinstitutions,Indiahasalsobeenwitnesstoarelativeeconomicslowdownandseveralkeysectors,theautomotivesectorincluded,areexperiencingasignificantdipingrowth.Coupledwithsaggingeconomicconfidence,uncertaintyinthejobmarkets,highinflationandconstrainedavailabilityoffinanceduetohighinterestrates,theautomotivesectordemandturnedsluggishasbuyersadoptedawait-and-watchattitude.

Thefirsthalfoftheyearwascharacterizedbyhighcommoditypricesandothercosts,whilstgrowinginflationwasaconcern.Facedwithtougheconomicchallenges,theGovernmentresponded,initiallywithmeasurestocurbinflation,andthereafterwithastimuluspackagecuttingcenvatrates,exemptingimportsfromCVD&SADandincreasingpublicexpenditureforinfrastructureprojectsworthUSD4billionequivalentto0.7%ofGDP.RBIalsorespondedvigorouslytotheglobalfinancialcrisisbyboostingliquiditytothetuneofRs300,000croresandbyeasingmonetarypolicy.

While it isnotpossible to fullyescape the impactof theglobal financialmeltdown, the Indianeconomy isbetterplacedthanmanytowithstandtheshock,giventhatitisdrivenmorebydomesticconsumption,hasasoundbankingsystem,ayoungpopulationandastrongsavingsculture.Therefore,althoughgrowthmayberelativelymutedintherangeof6-6.5%inthenext2years,thefutureprospectsforsustainedgrowthremainverybright.

During2008-09, theautomotive industry, the largestconsumerofqualitybearings,haswitnessednegativegrowthinsomesegments.Tabledbelowaregrowthestimatesfor2009-�0projectedbythecompany,afterassessingdemandforecastswithallmajorOEMs:

VehicleProduction(Nos)

UserIndustry 2008-09 2007-08 %growth

%growth(2009-�0Est)

2-WheelersMotorcycleScooterMopeds

680�,964��57,432

435,5�3

6503,532�074,933

430,827

4.597.67�.09

27-

Total 8394,909 8009,292 4.81 2

3-WheelersPassengerCarsMUV/MPVHCV/MCVLCVTractors

50�,030�5�6,79�

32�,906�92,537224,589352,000

500,660�426,2�2

35�,37�294,957254,049346,000

0.076.35-8.40

-34.72-��.60

�.42

�22��2

Total 11,503,762 11,182,541 2.87

Source:SIAMfor2007-08and2008-09productiondataandcompanyestimates

FINANCIALS

Turnover,netofexciseduty,decreasedby9.5%toRs.29074lacsfromRs.32�42lacsin2008-09.Domesticsalesdecreasedby�3.8%fromRs.28607lacstoRs.24656lacswhileexportsincreasedby25%toRs.44�9lacsfromRs.3535lacsin2007-08.

Thetablebelowsetsforththekeyexpenseitemsasapercentageofnetrevenuesfor2007-08and2008-09.Therelentlessincreaseinglobalsteelpricessharplyincreasedcostsofmaterialsconsumednegatingtheoperationalefficienciesandcostcuttinginitiatives.ThenegativegrowthinvolumesledtoEmployeecostsmovingupwardsbluntingproductivityimprovements.

�9

Percentage of Turnover Year ended March 31

2009 2008

Turnover(netofexciseduty) 29074(�00%) 32�42(�00%)

Expenditure:-Material(Includingchangeinstock)*-EmployeeCost-ManufacturingandOtherexpenses(Net)

50.7��8.90�4.2�

46.23�6.72�4.09

TotalExpenditure 83.82 77.04

ProfitbeforeDepreciation,Interest,ForeignExchangeLoss/(Gain)andTax

�6.�8 22.96

Depreciation 6.67 5.59

Interest(Net) 3.02 �.69

ForeignExchangeLoss/(Gain) 3.34 (0.45)

ProfitbeforeExceptionalItemsandTax 3.�5 �6.�3

*IncreaseinthepriceofsteelinputsBenchmarkedagainstother largeplayers in thedomesticbearings industry,yourcompany’sperformancecomparesunfavourablythisyearas:- substantialexchangelosshasbeenincurredbyNRB- investmentshavebeenmadeincreatingproductioncapacitieswhichhaveremainedpartiallyutilizedowing

tothedownturn,resultinginhigherdepreciationandinterestcosts.- Competitorsengage in tradingactivities/supply to theircollaboratorownedplantswhichadds to their

productionvolumesandtheyhaverelativelydebt-freeoperations

Ratio / Year Ended SKF FAG TIMKEN NRB

31.12.2008 31.12.2008 31.12.2008 31.03.2009

OperatingProfit(PBDIT)toNetSales-% �2.83 23.2� 22.98 �6.�8

RONW-PAT/NetWorth �9.78 23.77 �7.84 2.32

ROCE-PBT/CapEmployed 30.02 35.87 26.23 2.80

EPS* 24.20 57.60 8.32 0.88

*ForSKF,FAGandTimkenF.V.Rs.�0/-pershareandforNRBF.V.Rs.2/-pershare

ECONOMIC VALUE ADDITIONEVA is residual income after charging the company for the cost of capital provided by the lenders andshareholders.Itrepresentsthevalueaddedtotheshareholderbygeneratingoperatingprofitsinexcessofthecostofcapitalemployedinthebusiness.

Rs. In Lacs

EVA 2008-09 2007-08

EBIT �793 5727

Less:AdjustedTax 6�0 �947

NOPAT(NetOperatingProfitlesstax) ��83 3780

Equity �7450 �8062

Debt �2983 �0792

TotalInvestedCapital 30433 28854

PostTaxCostofDebt% 7.20 5.44

CostofEquity% �0.50 �0.50

WeightedAverageCostofCapital%(WACC) 9.�0 8.6�

WeightedAverageCostofCapital(WACC) 2770 2484

EVA(NOPAT–WACC) -�587 �296

Notes: Taxcalculationexcludesdeferredtaxandisadjustedfortaxshieldoninterest. Costofequityisbasedoncostofriskfreereturnequivalenttoyieldonlongtermgovernmentbonds@6%p.a.

plusequitypremiumadjustedforcompany’sbetavariant.Theequitypremiumisassumed@9%whilethebetaisconsideredat0.5.

20

Thecompany’sEVA,whichisarealmeasureofshareholders’valuecreation,hasdeclinedduringtheyear,onaccountof thepressureonprofitabilitymargins.Operatingprofitsduring theyearhavebeenhitby theunprecedentedriseinsteelandoil-basedinputs.Capitalemployedinthebusinesswentupowingtothehigherworkingcapitalemployedtonursetheincreasedinventoriesandslowdownincollectionsplusthedebtincurredtofinancecapacityenhancements.ThecombinedeffectofthesefactorshasresultedinnegativeEVAforthefinancialyear.

SEGMENT WISE PERFORMANCEYourcompanyhasonlyonesignificantreportablesegmentofballandrollerbearingsastheprimarybusinesssegment.Theassetsandliabilitiesofthecompanyareallexpendedtowardsthisbusinesssegment.

OPPORTUNITIES AND THREATSOPPORTUNITIES

– Roadandinfrastructuredevelopmentprogramsareexpectedtocontinue.AspartofitsfiscalstimuluspackagetheGovernmenthasalreadymadeclearitscontinuingfocusoninfrastructure–frompowerandoil&gastoroads,portsandairports.Asperplanningcommissionestimates,theGovernmenthasplannedinvestmentsofUSD33billionfortheoilandgassector,USD40billionforimprovingroadandrailwayinfrastructure,USD�8billionforportsandUSD�0billionforairports,aggregatingUSD�00billion.Thisinfrastructurespendingwillleadtogrowthinthemanufacturingsectorwiththeconsequentiallinkagetoourindustry.Thiswillgiveimpetustopeoplemovementandtomovementofgoodsbyreducingpertonne-kmtransportationcosts.

– A vibrant domestic auto industry is vital for the growth of the Indian economy and the Government has already AvibrantdomesticautoindustryisvitalforthegrowthoftheIndianeconomyandtheGovernmenthasalreadymovedtowardscenvatcuts,lowerinterestratesandeasieraccesstofinancing,specialhigherdepreciationforcommercialvehiclespurchasedandspecialschemefornewbusespurchasedbythestatetransportundertakings.ThesemeasureshaveboosteddemandduringQ4andresultedinrenewedconfidenceaboutarevivalofdemand.

– With a wide product range and enhanced manufacturing capacities already in place, the company is in a Withawideproductrangeandenhancedmanufacturingcapacitiesalreadyinplace,thecompanyisinapositiontotakeadvantageofthisrevival.

– Theglobalmeltdownhas led tooverallcost reductions forall steel/oilbased inputswhichwillease themarginpressuresforsuppliestothedomesticindustryandalsopermitmorecompetitivepricingtoprice-consciousglobalmajorslookingtosourcetheirautocomponentrequirementsfromIndia.Yourcompanyiswellpositionedtobenefitasoverthepastfewyearsithasfocusedonimplementingbest-in-classproductionsystems,technologydevelopment,slashingcostwhileupgradingqualityandscalingupofitsmanufacturingfacilities.Yourcompanyhasalreadyestablisheditscredentialsasacost-effective,reliablesuppliertomarqueeglobalOEMsinEuropeandwillcontinuetobenefitfromsuchbusiness.

THREATS

– Slowingdemandfromtheautomotiveindustrycoupledwithslowingotherindustrydemand,intheeventofanyslacknessintheimplementationofthevariousinfrastructureprojects,couldresultinstiffcompetitionwithinthebearings industry in Indiaandwithglobalautocomponentssuppliers.Thiswouldadverselyaffectthecompany’sutilizationofresources.

– Spurious/counterfeitproductsuppliesofinferiorqualityandwhichareunsafeandunreliableinuse,continuetoattracttheprice-consciousreplacementmarketwhichaccountsfor25-30%ofthetotaldemandfortheindustry,inspiteofindustry-wideeffortstothwarttheunscrupuloussuppliers.

– IntandemwiththegrowthwitnessedbytheautosectorinIndia,manyOEMssetupprocurementofficesinChina– tocutcostsaswellasputpressureon Indiansuppliers toprice theirproductsreasonably.The standard catalog mass-market products which do not require customization have also impactedreplacementmarkets.DumpingbyChina,atanaverage35% lower landedprice than locallysourcedcomponents,hasresultedinimportsfromChinagrowingataCAGRof�00%overthepast3years,accordingtoACMA.Asmostofyourcompanyproductsare‘specials’,modifiedtosuitcustomerneeds,itmaynotasadverselyaffectyourcompany.

– Availabilityoffinanceisoneofthemostsignificantfactorsinfluencingdemandforvehiclesandtractors.Around95%ofcommercialvehiclesandtractors,65%-75%of2wheelersandpassengercarsarefinancedthroughloans.Bankershavetoovercometheirrisk-aversionfortheautosectorintermsofbothcostoffinancingandavailability.

2�

Toweatherthetoughtimes,coupledwithastrategicoperationalfocus,thecompanyshalltapallemergingopportunities,leverageitswiderangeofproductsanditsEngineeringcapabilitiesandprimeitssourcingandpurchasingcapabilities.ThecompanyremainscommittedtowardscontinuousprocessimprovementsthroughimplementingTPMandotherlatesttechniquesinproduction,qualityandprocessmanagement.

INTERNAL CONTROL SYSTEMS AND ADEQUACY

Basedonthenatureofthebusinessandsizeofoperationsthecompanyhasinplaceadequatesystemsofinternalcontrolanddocumentedprocedurescoveringall financialandoperating functions.Thesecontrolshavebeendesignedtoprovidefor

– Accuraterecordingoftransactionswithinternalchecksandpromptreporting

– Safeguardingassetsfromunauthorizeduseorlosses

– Compliancewithapplicablestatutes,andadherencetomanagementinstructions&policies

– Effectivemanagementofworkingcapital

– Monitoringeconomyandefficiencyofoperations

A reputed external audit firm carries out periodical audits at all plants and of all functions and bring outdeviationsfromlaiddownprocedures.Theprocessalsoinvolvesreviewofexistingrisksandcontrolsincludingrecommendationstostrengthenbusinessprocesses.Theobservationsarisingoutofauditarereviewed,inthefirstinstancebytherespectiveHODsandplant/functionalheadsandcomplianceisensured.Furthercorrectiveactionplansaredrawnuptobuildbusinessprocesseswhichwilleliminaterepetitionofdeviations.

The highlights of these reports are presented to the Audit Committee, who reviews the significant auditobservationsalongwiththeactionsinitiatedandreportstotheBoardperiodically.

HUMAN RESOURCE AND INDUSTRIAL RELATIONS

Duringtheyear,atChikalthana(Aurangabad)Plantthecompanyhasenteredintoaproductionlinkedwagesettlement–wageriseandincentivepaymentwaslinkedtooverallproductionvolumeincrease+permanoutputinashift.Consequenttotheeconomicslowdown,asoverallproductionvolumesdeclinedandlowerwage increase/incentivebecamepayable, theunionhaschallengedmanagementactionandapproachedtheIndustrialCourtforrelief.IndustrialCourt,whilenotgrantinginterimrelief,hasaskedbothgroupstoleadevidence.

AtHyderabad,WalujandThaneplantsasthecurrentsettlementshaveexpired,theIRteamshavebeendiscussingwiththeunionsandhasbeenimpressingonthemtheneedfortheirco-operationinimprovingproductivitylevelsatallplants,withoutwhichthecompanywouldbeunabletoretainitscompetitiveedgeasaglobalsupplier.TheprimaryfocusofIRduringthecurrentyearwillbeontheengaging,motivatingandimprovingtheproductivityofbluecollaremployees.

RationalisingemployeecostsisincreasinglyabusinessimperativeforIndiancompaniesfacingavarietyofchallenges–uncertainmarketconditions,risinginventories,highnumberofemployeesandabloatedwagebill(reflectingtheexcessesofthepast).Thishastobeachievedwhilestillbeingperceivedasan‘employerofchoice’,retainingpeople,trainingthemandvaluingthemaspositivecontributors.Attritionmaynotbeanimmediateissuebutretentionanddevelopmentofkeytalentwillprovetobealong-termcompetitiveadvantage.Competitivesuccessisachievedthroughpeopleandtheworkforceisindeedanincreasinglyimportantsourceofcompetitiveadvantage.

TheroleofHRhasbecomecriticaltocommunicateclearlytheNRBHRphilosophy,reduceuncertaintyandmanagepeopleeffectively–

• encouragingpeopletothinkdifferently.• moving fromamere training interventionapproach toa learningsolutionorientedorganization,where

effortsaredirectedtowardsacquiringstrategicfuturecriticalskills.

CAUTIONARY STATEMENT

StatementsinthisManagementDiscussionandAnalysisdescribingthecompany’sobjectives,projections,estimatesandexpectationsmayconstitute‘forwardlookingstatements’withinthemeaningofapplicablelawsandregulations.

Actualresultsmaydiffermateriallyfromthoseeitherexpressedorimplied.

22

CORPORATE GOVERNANCE

Yourcompanyhasbeenpracticingtheprinciplesofgoodcorporategovernanceovertheyears.CorporateGovernanceisaboutcommitmenttovaluesandaboutethicalbusinessconduct.GoodCorporateGovernanceshouldprovidesufficienttransparencyovercorporatepolicies,strategiesandthedecisionmakingprocesswhilststrengtheninginternalcontrolsystemsandbuildingrelationshipswithstakeholders,includingemployeesandshareholders.Theadherencetogoodgovernancepracticeshelpsalign interestsofstakeholders,enhanceinvestorconfidence,inturnfacilitatingthecreationofsuperiorvalueonasustainablebasis.

Thecompanyisinfullcompliancewiththerequirementsofclause49oftheListingAgreementwiththeIndianStockExchanges.

�. Board of Directors

(i) Composition:

TheChairmanoftheBoardofNRBisalsoitsManagingDirector.AlldirectorsincludingNon-executiveDirectorsareprofessionallycompetent.Atpresent,theBoardconsistsofsixmembers,ofwhichthreeareNon-executiveDirectors.

ThecompositionandcategoryofDirectorsintheBoardoftheCompanyare:

ExecutiveDirectors(Allfromthepromoterfamily)

Mr.TSSahney,Chairman&ManagingDirector Ms.HSZaveri,President Mr.DSSahney,Director-StrategicSourcing

Non-ExecutiveandindependentDirectors

Dr.PDOjha Dr.(Ms)KalaSPant Mr.KMElavia

(ii) Board Meetings:

TheBoardoftheCompany,asalsothevariousspecializedcommitteesconstitutedbytheBoard,heldasmanyas22meetingsincluding6meetingsoftheBoardduring2008-09.

The maximum interval between any two meetings was 99 days. The Board held its meetings on�7thApril,2008,9thJune,2008,3�stJuly,2008,24thOctober,2008,30thJanuary,2009and26thMarch,2009.

(iii) Attendance of Directors:

TheoverallattendanceofDirectorswas�00%.Theattendanceofwhole-timeDirectorswas�00%.

Attendance of Directors At the Board Meetings held during 2008-09 and the last Annual General Meeting

Directors Meetings held during the tenure of the Directors

Meetings Attended

Attendance at the last AGM

(5th August, 2008)

Share- holding

�Mr.T.S.Sahney 6 6 Yes 2990953

2Dr.P.D.Ojha 6 6 Yes Nil

3Dr.(Ms)KalaSPant 6 6 Yes Nil

4Ms.H.S.Zaveri 6 6 Yes �943470

5Mr.D.S.Sahney 6 6 Yes �752300

6Mr.K.M.Elavia 6 6 Yes Nil

OverallattendanceintheBoardMeetings:�00%AGM:�00%

23

(iv) Other Directorships:

NoneoftheDirectorsholdsDirectorshipinmorethan�0listedcompanies.

Srl.No

Name of Directors Details of other Directorships *

Details of Committee Memberships

Details of Chairmanship in

Committee

� Mr.TSSahney** Nil

2 Dr.PDOjha WeizmannLtd.-ChairmanKJMCInvestmentTrustCo.Ltd.

Member-AuditCommittee

3 Dr.(Ms.)KalaSPant TemptationFoodsLtd.Chairman

BinaniMetalsLtd.GujaratSidheeCementLtd.


Chairman-AuditCommitteeandInvestorGrievanceandSharetransfercommittee

4 Ms.HSZaveri** SNLBearingsLtd. Member-InvestorGrievances/ShareTransferCommitteeMember-AuditCommittee

5 Mr.DSSahney** NIL NIL

6 Mr.KMElavia GroverVineyardsLtd.(AlternateDirector)GoaCarbonLtd.

UniAbexAlloyProductsLtd.

UniDeritendLtd.

UniKlingerLtd.

SulzerIndiaLtd.

AllcargoGlobalLogisticsLtd.

InsilcoLtd.(AdditionalDirector)



Member-AuditCommitteeMember-Shareholder/Investors’GrievanceCommitteeMember-ShareAllotment/TransferCommittee

Chairman-AuditCommittee

Chairman-AuditCommittee

*ExcludingprivatelimitedcompaniesandcompaniesnotincorporatedinIndia.**Ms.HSZaveriandMr.DSSahneyarethedaughterandsonrespectivelyofMr.TSSahney.

(v) Membership of Board committees: NoneoftheDirectorsholdsmembershipofmorethan�0CommitteesofBoardsnorisanyDirectora

Chairmanofmorethan5CommitteesofBoards.

(vi) Details of Directors being appointed/reappointed: Dr. P D Ojha and Mr. D S Sahney retirebyrotationandareeligibleforreappointment.Theparticulars

ofthesedirectorsarefurnishedhereunder:

24

Dr. P D Ojha (80yrs)hasaMastersdegreeinAdvancedEconomicsfromMumbaiUniversityandthereafteraDoctorate inEconomics.AfterabrilliantacademiccareerheservedasProfessorandHeadofEconomicsDepartmentinBombaycollegesandthereafterjoinedtheReserveBankofIndia,whereheworkedinvariouscapacitiesandheldseveralkeypositionslikeEconomicAdvisor,ExecutiveDirectorandDeputyGovernor.

Hehasbeenactivelyassociatedwithfinancialpolicies/programmes-formulationandimplementation-ingeneral,andthoseforthedevelopmentoflarge,medium,andsmallscaleanddecentralizedsectorsofindustry,agricultureandruraldevelopment,inparticularwithanaccentonhumanface.HeisaDirectorinothercorporateorganizations.

Mr. D S Sahney (40 yrs)holdsaBachelorofArtsdegree(BusinessAdministration&Economics)fromRichmondCollege,LondonandaMastersinBusinessAdministration(GeneralManagement)fromtheAsianInstituteofManagement(Phillipines).AfterashortstintasManagementTraineeinCreditLyonnaishejoinedthecompanyinOctober,�993asExecutiveAssistanttotheGeneralManger(NeedleBearingsDivision).HehashandledvariouspositionsofresponsibilityintheareasofManagementServices,InformationTechnologyandPlantOperationsandwasamemberof thecore teamwhichdrove theBusinessReengineeringprojectimplementedbythecompanyin�998withthehelpofinternationalconsultants.Currently,heholdsresponsibilityforStrategicSourcinginthecompany.

(vii)Remuneration of directors:

Thedetailsoftheremunerationpackageofdirectorsistabledbelow:(Amount in Rs.)

Name of Director

Sitting fees

Commissionon profits

Salary Contribution to PF & other funds

Perquisites Total

TSSahney - - 4500000 540000 3�8�045 822�045

HSZaveri - - 3420000 923400 2924848 7268248

DSSahney - - 2400000 648000 2�655�0 52�35�0

PDOjha 50000 50000 - - -

KSPant 50000 50000 - - -

KMElavia ��0000 50000 - - -

*CommissiontoNon-Executivedirectors@0.�25%,withaceilingofRs.5lacsp.a.asdeterminedbytheBoardofDirectors,willbeapportionedandpayableduring2009-�0.

PeriodofContractofChairman: Foraperiodof5yearsw.e.f.�.�0.2005to30.9.20�0 &ManagingDirector Thecontractmaybeterminatedbyeitherpartygiving theotherpartysixcalendarmonthsnotice

PeriodofContractofPresident: Foraperiodof5yearsw.e.f.�.4.2009to3�.3.20�4 subjecttoapprovalintheensuingAGM.Thecontractmaybe terminatedbyeitherpartygivingtheotherpartythreecalendar monthsnotice

PeriodofContractofDirector: Foraperiodof5yearsw.e.f.25.5.2006to3�.3.20�� (StrategicSourcing) Thecontractmaybeterminatedbyeitherpartygiving theotherpartythreecalendarmonthsnotice

Noseverancefeesarepayabletotheabove.

2. Audit Committee

TheAuditCommitteeofNRBwassetupwaybackinJanuary,200�.TheCommitteeconsistsofthreeNon-executiveDirectorsandisheadedbyDr.PDOjha.TheMembersoftheCommitteehavefairknowledgeofprojectfinance,accountsandcompanylaw.Thecommitteeheld4meetingsduringtheyear,whichwereattendedbyitsmembers.ThemajortermsofreferenceoftheAuditCommitteeasstipulatedinClause49oftheListingAgreementareasfollows:

i. Oversightofthecompany’sfinancialreportingprocessandthedisclosureofitsfinancialinformationtoensurethatthefinancialstatementiscorrect,sufficientandcredible.

25

ii. Recommendingtotheboard,theappointment,re-appointmentand,ifrequired,thereplacementorremovalofthestatutoryauditorandthefixationofauditfees.

iii. Approvalofpaymenttostatutoryauditorsforanyotherservicesrenderedbythestatutoryauditors.

iv. Reviewing with management the annual financial statements before submission to the Board forapproval, focusing primarily on (i) any changes in accounting policies and practices, (ii) majoraccountingentriesbasedonexerciseofjudgementbymanagement,(iii)qualificationsindraftauditreport, (iv) significant adjustments arising out of audit, (v) matters required to be included in theDirectors’responsibilitystatement,(vi)compliancewithaccountingstandards,(vii)compliancewithListingandlegalrequirementsconcerningfinancialstatementsand(viii)anyrelatedpartytransactionsi.e.transactionsoftheCompanyofmaterialnaturewithpromotersorthemanagement,theirsubsidiariesorrelatives,etc.thatmayhavepotentialconflictwiththeinterestsoftheCompanyatlarge.

v. Reviewing,withthemanagement,thequarterlyfinancialstatementsbeforesubmissiontotheboardforapproval.

vi. Reviewingwith themanagement,performanceofstatutoryand internalauditors, theadequacyofinternalcontrolsystems.

vii. Reviewingtheadequacyoftheinternalauditfunctionsincludingthereportingstructurecoverageandfrequencyofinternalaudit.

viii. Discussionwithinternalauditorsofanysignificantfindingsandfollowupthereon

ix. ReviewingthefindingsofanyinternalinvestigationsbytheinternalauditorsintomatterswherethereissuspectedfraudorirregularityorafailureofinternalcontrolsystemsofamaterialnatureandreportingthemattertotheBoard.

x. Discussionwithstatutoryauditorsbeforetheauditcommences,aboutthenatureandscopeofauditaswellaspostauditdiscussionstoascertainanyareaofconcern.

xi. Tolookintothereasonsforsubstantialdefaultsinthepaymenttothedepositors,debentureholders,shareholders(incaseofnon-paymentofdeclareddividends)andcreditors.

Attendance of Members at the Meetings of the Audit Committee held during 2008-09

Members Meetingsheld Meetingsattended

Dr.PDOjha(Chairman) 4 4

Dr.(Ms.)KalaSPant 4 4

Mr.KMElavia 4 4

Overallattendance:�00%

3. Shareholders/Investors’ Grievances Committee of Directors

TheBoardofDirectorsoftheCompanyhassetupaShareholders/Investors’GrievancesCommitteeofDirectorscomprisingMr.TSSahney,ManagingDirector,Ms.HSZaveri,PresidentandMr.KMElavia(ChairmanoftheCommittee).

TheshareholdersoftheCompanyareservicedbytheinhouseinvestorservicedepartmentandthesharetransferagent-M/s.MondkarComputersPvt.Ltd.ThetransfersreceivedbytheCompanyareprocessedandtransferredonamonthlybasis.Allrequestsfordematerialisationofsharesarelikewiseprocessedandconfirmationthereofisnormallycommunicatedtotheinvestorsanddepositoryparticipantswithin�5daysofreceiptthereof.TheCommitteealsomonitorsredressalofinvestors’grievances.

AsrequiredbytheStockExchanges,theCompanyhasappointedMr.SCRangani,CompanySecretary,astheComplianceOfficertomonitorthesharetransferprocessandliaisonwiththeregulatoryauthorities.

26

Attendance of the Members at the Meetings of the Shareholders/Investors’ Grievances Committee of Directors held during 2008-09

Members MeetingsheldduringthetenureoftheDirector Meetingsattended

Mr.KMElavia(Chairman) �2 �2

Mr.TSSahney �2 ��

Ms.HSZaveri �2 8

Overallattendance:86%

4. General Body Meetings

Thelast3AnnualGeneralMeetingsand�ExtraOrdinaryGeneralMeetingoftheCompanywereheldonthefollowingdatesandtimes:

43rd Annual General Meeting on 5th August, 2008 at ��.00 am at M. C. Ghia Hall, K Dubash Marg,Mumbai40000�.

Nospecialresolutionswerepassedatthemeeting.

42nd Annual General Meeting on 3rd August, 2007 at ��.00 am at M.C. Ghia Hall, K Dubash Marg,Mumbai40000�.

Nospecialresolutionswerepassedatthemeeting.

ExtraOrdinaryGeneralMeetingheldon8thMarch,2007at��.00a.m.atM.C.GhiaHall,KDubashMarg,Mumbai40000�.

Special Resolutions passed at the meeting

Alteration in theArticlesofAssociation togiveeffect toSub-divisionofcompany’sequityshares fromRs.�0/-toRs.2/-.

4�st Annual General Meeting on ��th August, 2006 at ��.00 am at M.C. Ghia Hall, K Dubash Marg,Mumbai40000�.

Special Resolutions passed at the meeting

PaymentofcommissiontoNonExecutiveDirectorsAmendmentofArticlesofAssociation

TherewerenospecialresolutionspassedbytheCompanythroughpostalballot.

5. Disclosures

NeithertheCompanynoranyofitssubsidiarieshasenteredintoanytransactionofmaterialnaturethatmayhaveapotentialconflictwithinterestsoftheCompanyorofitssubsidiaries,withanyoftheDirectorsortheirrelativesduringtheyear2008-09.Neitherhasanynon-compliancewithanyofthelegalprovisionsoflawbeenmadebytheCompanynoranypenaltyorstrictureimposedbytheStockExchangesorSEBIoranyotherstatutoryauthority,onanymatterrelatedtothecapitalmarkets,duringthelast3years.

6. Means of Communication

Information like Quarterly Financial Results and Press Releases on significant developments in theCompanythathasbeenmadeavailablefromtimetotimetothePressishostedontheCompany’swebsitewww.nrbbearings.comandhasalsobeensubmittedtoStockExchangestoenablethemtoputthemontheirwebsites.TheQuarterlyFinancialResultsarepublishedinEnglish(TimesofIndiaandEconomicTimes)andvernacularnewspapers(MaharashtraTimes).

Asper theamendment toListingAgreementa separatee-mail IDof thegrievance redressaldivision/complianceofficeexclusively for thepurposeof registeringcomplaintsby investors, thecompanyhasalreadydisplayedthee-mailIDonthewebsite.TheemailIDisinvestorcare@nrbbearings.co.in

27

AReportonManagementDiscussionandAnalysisofAccountshasbeenincludedelsewhereinthisreport.

7. General Shareholder Information

ThemandatoryasalsovariousadditionalinformationofinteresttoinvestorsisvoluntarilyfurnishedinthefollowingsectiononInvestorinformationinthisReport.

8. Auditor’s Certificate on Corporate Governance

The Auditor’s Certificate on Compliance of Clause 49 of the Listing Agreement relating to CorporateGovernanceispublishedasanannexuretotheDirectors’Report.

9. Non mandatory recommendations

a. Chairman of the Board – Re:Non-executive Chairman

TheCompanyhasExecutiveChairman,therefore,clause(a)ofnon-mandatoryrequirementsisnotapplicable.

b. Independent Directors’ tenure not exceeding 9 years

Dr.PDOjhaandDr.(Ms)KSPanthavebothcompletedanaggregate tenureexceeding9years.HoweveritisfeltthattheircontinuationontheBoardisvaluableforthecompanyconsideringtheirwealthofexperienceandexposure.

c. Remuneration Committee

TheCompanyhasdecidednottoproceedwithformationofRemunerationCommitteeatthisstage.

d. Half yearly results to shareholders

Thecompanyforwardshalfyearlyresultstoallitsshareholders.

e. Audit Qualifications

TheAuditor’sReportfortheyearended3�stMarch’2009drawsattentiontonote��(a)ofSchedule20thatinadequateprofitsduringtheyearhaveresultedinexcessremunerationofRs.44.26lacshavingbeenpaidtotheManagingDirectorandoneWholetimeDirectorconsideringtheprovisionsofSections�98and269,readwithScheduleXIIIoftheCompaniesAct,�956.Suchpaymentrequirestheapprovalofshareholdersbywayofspecialresolution,whichisproposedinthenoticefortheensuingAGM,andthepriorapprovaloftheCentralGovernment,whichapplicationshallbemadebythecompanyafterobtainingshareholdersapproval.TheBoardofDirectorsareoftheviewthatthefinancialresultsfortheyearhavebeenaffectedbytheunprecedentedglobalmeltdownandtheunexpectedvolatilityincurrencymovements.Thefundamentalparametersforthecompanyaresound,theadversefactorshavestartedcorrectinginthecurrentfinancialyearandconsideringthepastfinancialperformanceofthecompanythenecessaryapprovalsshouldbeforthcoming.

f. Training of Board members

TheBoarddiscusses thebusinessmodeland the riskprofileof thecompanyat itsmeetings.NoexternaltraininghasbeenprovidedfortheDirectorsastotheirresponsibilitiesandthebestwaystodischargethem.

g. Mechanism for evaluating non-executive board members

Peergroupevaluationhasnotbeenimplementedfornon-executivedirectors.

h. Whistle Blower Policy

Thecompanyhasdecided that the implementationofawhistleblowerpolicycouldbesubject tomisuse.HoweveremployeesarefreetoreporttoManagementortheAuditCommitteeonanymatterconcerningunethicalbehaviourorviolationoftheCompany’scodeofConduct.

28

Auditors’ certificate to the members of NRB Bearings Limited on compliance of the conditions of corporate governance for the year ended 31st March, 2009, under clause 49 of the listing agreements with relevant stock exchanges.

WehaveexaminedthecomplianceoftheconditionsofcorporategovernancebyNRBBearingsLimited,fortheyearendedon3�stMarch,2009,asstipulatedinclause49ofthelistingagreementsofthesaidcompanywithrelevantstockexchanges(hereinafterreferredtoasclause49).

Thecomplianceofconditionsofcorporategovernanceistheresponsibilityofthemanagement.Ourexaminationwas limited to a review of procedures and implementation thereof, adopted by the company for ensuringcomplianceoftheconditionsofcorporategovernance.Itisneitheranauditnoranexpressionofopiniononthefinancialstatementsofthecompany.

In our opinion and to the best of our information and according to the explanations given to us and therepresentationsmadebythedirectorsandthemanagement,exceptthatthedelegatedauthorityhasattendedtosharetransferformalitiesonceamonthinsteadofatleastonceinafortnight,wecertifythatthecompanyhascompliedwiththeconditionsofcorporategovernanceasstipulatedinclause49.

Westatethatsuchcomplianceisneitheranassuranceastothefutureviabilityofthecompanynortheefficiencyoreffectivenesswithwhichthemanagementhasconductedtheaffairsofthecompany.

ForA. F. FERGUSON & CO. CharteredAccountants

A. C. Khanna PartnerMumbai:June2,2009 MembershipNo.�78�4

29

SHAREHOLDERS’ INFORMATION

�. Annual General Meeting DateandTime : �2thAugust,2009at��.00a.m. Venue : MCGhiaHall,KDubashMarg, NearKalaghoda,Fort,Mumbai40000�

2. Financial Calendar FinancialreportingforthequarterendingJune30,2009 : LastweekJuly,2009 FinancialreportingforthequarterendingSeptember30,2009 : LastweekOctober,2009 FinancialreportingforthequarterendingDecember3�,2009 : LastweekJanuary,20�0 FinancialreportingfortheyearendingMarch3�,20�0 : EndMay,20�0 AnnualGeneralMeetingfortheyearendingMarch3�,20�0 : August,20�0

3. Book Closure Date : 5thAugust09to�2thAugust,2009 (bothdaysinclusive)

4. Dividend Payment Date : 2�stAugust,2009

5. Registered Office and Plants : Dhannur,�5SirP.M.Road, Fort,Mumbai40000� (Tel)22664�60/4998 (Fax)226604�2 WebSite:www.nrbbearings.com

PokhranRoadNo.2,Majiwade, Thane400606

E-40,M.I.D.C.IndustrialArea, Chikalthana,Aurangabad43�0�0

C-6,AdditionalM.I.D.C.IndustrialArea Jalna43�203

E-72,(I)&(II)M.I.D.C.,Waluj Aurangabad43��33

A-5,UppalIndustrialEstate Hyderabad500039

PlotNo.33,Sector–II,SIDCULIIE Pantnagar,UdhamsinghNagar, Uttarakhand263�53

6. Unclaimed Dividends

Pursuant toSection205Cof theCompaniesAct,�956,unclaimeddividends remainingunclaimed forsevenyearsfromthedateofdeclarationarerequiredtobetransferredbythecompanytotheInvestorEducation&ProtectionFundestablishedbytheCentralGovernment,andthevariousdatesfortransferofsuchamountsareasunder.

Financial Year Date of Declaration at AGM/BM

Date of the warrant Due for transfer

200�-02 5thSeptember,2002 �3thSeptember,2002 �3thSeptember,2009

2002-03 �3thAugust,2003 20thAugust,2003 20thAugust,20�0

2003-04 �3thAugust,2004 �8thAugust,2004 �8thAugust,20��

2004-05 ��thAugust,2005 �6thAugust,2005 �6thAugust,20�2

2005-06- Interim-Interim-Final

30thJanuary,20062�stJune,2006

�5thFebruary,2006�8thAugust,2006

�5thFebruary,20�3�8thAugust,20�3

2006-07- Interim-Interim-Final

27thOctober,20063rdAugust,2007

�0thNovember,2006�4thAugust,2007

�0thNovember,20�3�4thAugust,20�4

2007-08 5thAugust,2008 �4thAugust,2008 �4thAugust,20�5 Memberswhohavesofarnotencashedtheirdividendwarrantsorhavenotreceivedthedividendwarrants

arerequestedtoseekissueofduplicatewarrants.

30

7. Unclaimed Dividend Amounts

Thefollowingdividendamountscontinuetoremainunclaimedasat3�stMarch,2009.

Financial year No.of warrants issued

No.of warrants

unclaimed

% Amount of dividend Rs.in lacs

Unclaimed dividend

amount Rs.

%

200�-02 3866 �86 4.8� 484.6� �27790 0.26

2002-03 378� �84 4.87 58�.53 �35660 0.23

2003-04 29�� 46 5.02 726.92 �57590 0.22

2004-05 3088 �3� 4.24 969.23 �65730 0.�7

2005-06-Interim-Final

335632�4

�97�48

5.874.60

726.92484.6�

�68420855�0

0.230.�8

2006-07-Interim- Final-Final

32864683

�50228

4.564.87

775.38630.00

�29704�44095

0.�70.22

2007-08 6244 290 4.64 ��63.07 2�8�09 0.�9

Total 34429 �660 4.82 6542.27 �332608 0.20

8. Bank Details

Inordertoprovideprotectionagainstfraudulentencashmentofdividendwarrants,membersarerequestedtoprovide,ifnotprovidedearlier,theirbankaccountnos.,bankaccounttype,names&addressesofbankbranches,quotingfoliono.totheregistrarofthecompany/secretarialdepartmenttoenableustoincorporatethesameonyourdividendwarrants.

9. Bank Details for Demat Shareholding

Whileopeningaccountswithdepositoryparticipants(DPs),shareholdersarerequiredtogivetheirdetailsoftheirbankaccountswhichwillbeusedbythecompanyforprintingondividendwarrantsforremittanceofdividend.HowevermemberswhowishtoreceivedividendinanaccountotherthantheonespecifiedwhileopeningthedepositoryaccountmaynotifytheirDPaboutanychangeinbankaccountdetails.

�0. Nomination Facility

Shareholdersofphysicalsharescannominateapersonforthesharesheldbythem.Requisitenominationformshavealreadybeencirculatedbythecompanytotheshareholderswhoareadvisedtoavailofthisfacility.

��. Distribution of Shareholding as on 31st March :

2009 2008

No. of Equity Shares

No.of share

holders

% of share

holders

No.of shares

held

% share

holding

No.of share

holders

% of share

holders

No.of shares

held

% share

holding

Upto500 5�08 84.346 �02�783 2.�08 5305 84.�39 �079745 2.228

50�-�000�000 49� 8.�08 435435 0.898 5�8 8.2�5 45854� 0.946

�00�-2000 223 3.682 339992 0.702 225 3.569 342833 0.708

200�-30003000 80 �.32� 205688 0.424 94 �.49� 24�409 0.498

300�-40004000 29 0.479 �05685 0.2�8 26 0.4�2 95660 0.�97

400�-50005000 35 0.578 �673�3 0.345 39 0.6�9 �86286 0.385

500�-�0000�0000 29 0.479 2�593� 0.446 30 0.476 2�7�85 0.448

�000�&above 6� �.007 45969473 94.858 68 �.079 4583964� 94.590

TOTAL 6056 �00.00 4846�300 �00.00 6305 �00.00 4846�300 �00.00

Ason3�stMarch,20094�420755constituting85.47%ofthesharecapitalhasbeendematerialized

3�

The company has entered into agreements with NSDL and CSDL during the year 2000-01 and has been allotted ISN No.INE 349A 01013. SEBI has notified the company shares to be traded only in demat form w.e.f. 29th April, 2001.

The company’s equity shares of Rs.10/- each have been split into Rs.2/- each effective 4th April, 2007 and the new ISIN No. is INE 349A01021.

�2. Categories of Shareholdings as on 31st March :

2009 2008

Category No.of share holders

% of share

holders

No. of

shares held

% share

holding

No.of share

holders

% of share holders

No.of shares

held

% share holding

Individuals* 5764 95.�8 �987�666 4�.00 593� 94.06 �9788�20 40.82

Corporate*Bodies

�95 3.22 220�8909 45.44 262 4.�6 220865�3 45.58

ForeignCollaborator

0 0.00 0 0.00 0 0.00 0 0.00

NRI/OCBs 84 �.39 84029 0.�7 98 �.55 9635� 0.20

FI/FII/Banks 7 0.�2 3820500 7.88 8 0.�3 40�6�20 8.29

MutualFunds/UTI

6 0.�0 2666�96 5.50 6 0.�0 2474�96 5.��

TOTAL 6056 �00.00 4846�300 �00.00 6305 �00.00 4846�300 �00.00

*IncludesPromoterholdingason3�.03.200973.75%(73.59%ason3�.03.2008)

�3. Share Transfer System

TheInvestorGrievances/ShareTransferCommitteecomprisingofthreedirectorsisauthorizedtoapprovetransferofsharesandthesaidCommitteeapprovetransferofsharesonamonthlybasis.

Sharetransfersinphysicalformarepresentlyregisteredandreturnedwithinaperiodof60daysfromthedateofreceiptincasedocumentsarecompleteinallrespects.

�4. Investor Queries/Complaints Handled

Nature of queries/complaints 2008-09 Nos. 2007-08Nos.

Relating to transfers, Transmissions etc. (including duplicatesharecertificates,stop transfer,non-receiptofsharecertificates,deletionofname,rectificationofsharecertificate,indemnitybondforduplicatecertificate,signatureverification)

4 2

Relating to dividends (including issue of fresh Demand draftsagainst unpaid warrants, non-receipt of dividend warrants andbankdetails)

�4 20

Relating to change of address 2 ��

Others - -

Total 20 33

• Legalproceedingsonsharetransfer,ifany:Therearenomajorlegalproceedingsrelatingtotransferofshares.

• Therearenoshareholdercomplaintsortransferspendingresolution.

32

�5. Equity History Detailsofequitysharesissuedsinceinception. Date Particulars of issue No.of Total no.of shares Equity capital shares after issue in Rs. 0�.06.�965 Issueforcashatpar �0 �0 �000 27.0�.�966 Issueforcashatpar 6270 6280 628000 27.0�.�966 AllotmenttoNadella Withoutpaymentincash 9�0 7�90 7�9000 �6.�0.�968 Issueforcashatpar 28�0 �0000 �000000 3�.07.�973 Bonusissue�:� �0000 20000 2000000 24.09.�976 Bonusissue�:� 20000 40000 4000000 �4.02.�979 Bonusissue3:4 30000 70000 7000000 22.04.�982 Bonusissue�:� 70000 �40000 �4000000 03.0�.�989 Bonusissue�:2 70000 2�0000 2�000000 02.��.�990 Bonusissue�:2 �05000 3�5000 3�500000 �4.�2.�99� IssueonmergerofSSPW (SahneySteelPressWorks) 760 3�5760 3�576000 04.��.�993 Bonusissue5:3 526266 842026 84202600 03.05.�995 Publicissue �272000 9692260* 96922600 04.04.2007 Sub-division�:5* 4846�300 4846�300 96922600

*EquitysharessubdividedintofacevalueofRs.�0/-on�0.�2.�994. *EquitysharessubdividedintofacevalueofRs.2/-on4.4.2007

�6. Listing on Stock Exchange at : Equityshares TheBombayStockExchangeLtd.,Mumbai P.J.Towers,DalalStreet,Mumbai400023 NationalStockExchangeofIndiaLtd ExchangePlaza,5thFloor,PlotNo.C/�,GBlock, BandraKurlaComplex,Bandra(E),Mumbai40005�

Note:Listingfeesfortheyear2008-09havebeenpaidtotheStockExchange-MumbaiandNationalStockExchange.

�7. Stock Codes BombayStockExchange 530367 NationalStockExchange NRBBEARING ISINNo.forequityshareofRs.2/-each INE349A0�02�

�8. Stock Market Data TheStockExchange,MumbaiandNationalStockExchange,Mumbai Monthlyhighandlowquotationsandvolumeofsharestraded

2008-09 Mumbai Stock Exchange National Stock Exchange Month High(Rs) Low(Rs) Volume High(Rs) Low(Rs) Volume April’08 8�.55 67.20 48507 83.45 69.00 68�55 May’08 73.75 62.00 2583� 72.�0 63.05 4420� June’08 65.00 53.00 230224 69.50 53.00 62477 July’08 69.90 52.00 42952 70.00 52.�5 79397 August’08 72.90 58.60 56753 75.90 59.20 �43427 September’08 67.00 43.50 22924 68.90 40.80 36069 October’08 5�.85 29.85 22�97 52.95 3�.55 50547 November’08 42.80 3�.00 �8357 44.80 3�.00 30665 December’08 44.90 3�.25 23754 48.40 34.00 35308 January’09 47.35 35.00 ��254 47.20 35.05 40�68 February’09 40.00 27.90 27364 4�.90 28.05 472687 March’09 34.95 28.05 44454 35.�0 28.00 ��669 Total 57457� ��74770

33

�9. Performance (Indexed):

20. Registrars and Transfer Agents : M/s.MondkarComputersPvt.Ltd. (Sharetransferandcommunicationregarding 25,ShakilNiwas, sharecertificates,dividendsandchangeofaddress) MahakaliCavesRoad, Andheri(East),Mumbai400093 (RegisteredwithSEBIasShare TransferAgent-CategoryI)2�. Investor correspondence : The Company Secretary, Tel:022-22664160/4998 NRB Bearings Limited Fax:022-22660412 Dhannur, 15 Sir P. M. Road E-mail:[email protected] Fort, Mumbai 400 001

As per SEBI circular No.MRD/DoP/Dep/SE/Cir-22/06 dated December �8,2006 has advised all listedcompaniestodesignateanemailIDofthegrievanceredressaldivision/complianceofficerexclusivelyforthepurposeofregisteringcomplaintsbyinvestors.ThefollowingistheemailIDdesignatedforthesame.

[email protected]

As per SEBI circular dt. May 20, 2009, it shall be mandatory for transferee(s) to furnish copy of PAN Card to the Company/RTAs for registration of transfer of shares in physical form of listed companies. Shareholders are advised to note and comply.

22. Details on use of public funds obtained in the last three years : No funds have been raised from public in the last three years.23. Outstanding GDR/Warrants and convertible bonds, conversion date and likely impact on Equity : The company has no outstanding GDR/Warrants and/or convertible bonds.24. Financial ratios

2008-09 2007-08 2006-07 2005-06

Netearnings(Rs.lacs) 426.32 335�.25 3976.24 340�.54

Cashearnings(Rs.lacs) 2365.79 5�48.09 5558.86 4682.33

EPS(Rs.) 0.88 6.92 8.20 7.02

CEPS(Rs.) 4.88 �0.62 ��.38 9.66

Dividendpershare(Rs.) �.60 2.40 2.90 2.50

Dividendpayout(%) 2�2.79 40.60 40.77 40.6�

Bookvaluepershare(Rs.) 36.00 37.27 33.�6 28.30

Pricetoearnings* 37.44 ��.42 �2.�8 �4.30

Pricetocashearnings* 6.75 7.44 8.68 �0.39

Pricetobookvalue* 0.92 2.�2 2.86 3.55 * Stockpriceason3�stMarch,2009–Rs.32.95(closingprice) ** EPS/CEPS/dividendpershare/bookvaluehavebeenadjustedtofacevalueRs.2/-pershare

30.04.08 31.05.08 29.06.08 31.07.08 31.08.08 30.09.08 31.10.08 30.11.08 31.12.08 31.01.09 29.02.09 31.03.09

NRB 71.50 63.20 57.15 60.90 64.95 48.10 37.10 38.70 42.15 38.90 28.30 32.95

SENSEX 17287.31 16415.57 13461.6 14355.75 14564.53 12860.43 9788.06 9092.72 9647.31 9424.24 8891.61 9708.50

34

AUDITORS’ REPORT TO THE MEMBERS OF NRB BEARINGS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2009

�. WehaveauditedtheattachedbalancesheetofNRBBearingsLimited,asat3�stMarch,2009,andalsotheprofitandlossaccountandthecashflowstatementofthecompanyfortheyearendedonthatdate,annexedthereto.Thesefinancialstatementsaretheresponsibilityofthecompany’smanagement.Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.

2. Weconductedouraudit inaccordancewiththeauditingstandardsgenerallyaccepted in India.TheseStandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements.Anauditalsoincludesassessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallfinancialstatementpresentation.Webelievethatourauditprovidesareasonablebasisforouropinion.

3. AsrequiredbytheCompanies(Auditor’sReport)Order,2003,issuedbytheCentralGovernmentofIndiaintermsofsub-section(4A)ofsection227oftheCompaniesAct,�956,weencloseintheAnnexure,astatementonthemattersspecifiedinparagraphs4and5ofthesaidOrder.

4. FurthertoourcommentsintheAnnexurereferredtoinparagraph3above,wereportthat:

(i) Wehaveobtainedalltheinformationandexplanations,whichtothebestofourknowledgeandbeliefwerenecessaryforthepurposesofouraudit.

(ii) Inouropinion,properbooksofaccountasrequiredbylawhavebeenkeptbythecompanysofarasappearsfromourexaminationofthosebooks.

(iii) Thebalancesheet,profitandlossaccountandcashflowstatementdealtwithbythisreportareinagreementwiththebooksofaccount.

(iv) Inouropinion,thebalancesheet,profitandlossaccountandcashflowstatementdealtwithbythisreportcomplywith theaccountingstandards referred to insub-section (3C)ofsection2��of theCompaniesAct,�956.

(v) Attention is invited to footnote under note 11(a) of Schedule 20 regarding managerial remuneration of Rs. 44.26 lacs paid during the year, in excess of specified limits, pending approval of the members and Central government.

(vi) Subject to the matter referred in paragraph 4(v) above,inouropinionandtothebestofourinformationandaccordingtotheexplanationsgiventous,thesaidaccountsgivetheinformationrequiredbytheCompaniesAct,�956,inthemannersorequiredandgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia:

(a) inthecaseofthebalancesheet,ofthestateofaffairsofthecompanyasat3�stMarch,2009;

(b) inthecaseoftheprofitandlossaccount,oftheprofitfortheyearendedonthatdate;and

(c) inthecaseofthecashflowstatementofthecashflowsfortheyearendedonthatdate.

5.Onthebasisofthewrittenrepresentationsreceivedfromthedirectors,ason3�stMarch,2009,andtakenonrecordbytheBoardofDirectors,wereportthatnoneofthedirectorsisdisqualifiedason3�stMarch,2009frombeingappointedasadirectorintermsofclause(g)ofsub-section(�)ofsection274oftheCompaniesAct,�956.


A. C. KHANNA PartnerMumbai:June2,2009 MembershipNo.�78�4

35

ANNEXURE TO THE AUDITORS’ REPORT TO THE MEMBERS OFNRB BEARINGS LIMITED ON THE ACCOUNTS

FOR THE YEAR ENDED 31ST MARCH, 2009(referred to in paragraph 3 of our report of even date)

(i) (a) Thecompanyhasgenerallymaintainedproperrecordsshowingfullparticularsincludingquantitativedetailsandsituationoffixedassets.

(b) Asexplainedtous,verificationoffixedassetsisbeingconductedbythemanagementonceintwoyears.Suchverificationdueasperthisprogrammehadbeencarriedoutinthepreviousyear.Inouropinion,thefrequencyofverificationisreasonablehavingregardtothesizeofthecompanyandthenatureofitsassets.

(c) Therearenofixedassetsdisposedoffduringtheyearandthereforethequestionofreportingonclause4(i)(c)oftheCompanies(Auditor’sReport)Order,2003(hereinafterreferredtoasthesaidOrder)doesnotarise.

(ii) (a) Theinventoryhasbeenphysicallyverifiedduringtheyearbythemanagement.Inouropinion,thefrequencyofverificationisreasonable.

(b) Theproceduresofphysicalverificationof inventoriesfollowedbythemanagementarereasonableandadequateinrelationtothesizeofthecompanyandthenatureofitsbusiness.

(c) Thecompanyismaintainingproperrecordsofinventory.Thediscrepanciesnoticedonverificationbetweenthephysicalstocksandthebookrecordswerenotmaterial.

(iii) (a) The company has granted loans to SNL Bearings Limited (a subsidiary) covered in the registermaintainedundersection30�oftheCompaniesAct,�956(hereinafterreferredtoastheAct).Themaximumamount involvedduring theyearwasRs.650.00 lacsand theyear-endbalanceofsuchloanswasRs.300.00lacs.Thecompanyhasnotgrantedanyloans,securedorunsecured,toothercompanies,firmsorotherpartiescoveredinthesaidregister.

(b) Accordingtotheinformationandexplanationsgiventous,inouropinion,therateofinterestandothertermsandconditionsonwhichloanshavebeengrantedarenot,primafacie,prejudicialtotheinterestofthecompany.

(c) Asexplainedtous,theprincipalamountsoftheloansarebeingrepaidasstipulated/renewedonduedates;thatcompanyisregularinthepaymentofinterest.

(d) Havingregardtotheexplanationgiventousthatthebalanceprincipalamountsoftheloansarebeingrenewed,thereisnooverdueamountofmorethanrupeesonelac.

(e) Thecompanyhasnottakenanyloans,securedorunsecured,fromcompanies,firmsorotherpartiescoveredinthesaidregister.Accordingly,thequestionofreportingonclauses4(iii)(e),(f)and(g)ofthesaidOrderdoesnotarise.

(iv) Inouropinionandaccordingtotheinformationandexplanationsgiventous,thereisanadequateinternalcontrolsystemcommensuratewiththesizeofthecompanyandthenatureofitsbusinesswithregardtopurchaseofinventory,fixedassetsandwithregardtosaleofgoods.Thereisnosaleofservices.Duringthecourseofouraudit,wehavenotobservedanycontinuingfailuretocorrectmajorweaknessininternalcontrolsystem.

(v) (a) Accordingtotheinformationandexplanationsgiventous,weareoftheopinionthattheparticularsofcontractsorarrangementsreferredtoinsection30�oftheActhavebeenenteredintheregisterrequiredtobemaintainedunderthatsection.

(b) Accordingtotheinformationandexplanationsgiventous,thetransactionsinpursuanceofcontractsorarrangementsenteredinthesaidregister,madewithSNLBearingsLimited,areofaspecialnatureforwhichtherearenoalternativesourcesoranysimilartransactionswithotherparties.Intheabsenceofprevailingmarketpricesofsuchtransactionsbeingproducedtous,weareunabletoformanopiniononthereasonablenessofpricespaid/received.

36

(vi) Thecompanyhasnotacceptedanydeposits fromthepublic towhichtheprovisionsofsections58A,58AAoranyotherrelevantprovisionsoftheActandtheCompanies(AcceptanceofDeposits)Rules,�975wouldapply.NoorderhasbeenpassedbytheCompanyLawBoardorNationalCompanyLawTribunalorReserveBankofIndiaoranyCourtoranyotherTribunal.

(vii) Inouropinion,thecompanyhasaninternalauditsystemcommensuratewithitssizeandthenatureofitsbusiness.

(viii)Wehavebroadlyreviewed,withoutcarryingoutadetailedexamination,thebooksofaccountmaintainedby thecompanypursuant to theOrdermadeby theCentralGovernment for themaintenanceofcostrecordsundersection209(�)(d)oftheActandareoftheopinionthatprimafacietheprescribedaccountsandrecordshavebeenmaintained.Weareinformedthatthecoststatementsasattheendofthefinancialyearareunderpreparation.

(ix)(a) Accordingtotherecordsofthecompany,thecompanyhasbeengenerallyregularindepositingwiththeappropriateauthorities,undisputedstatutoryduesincludingprovidentfund,investoreducationandprotectionfund,employees’stateinsurance,income-tax,salestax,wealth-tax,servicetax,customsduty,exciseduty,cessandothermaterialstatutoryduesapplicabletoit,thoughtherehasbeenaslightdelayinafewcases.

(b) Accordingtotheinformationandexplanationsgiventous,noundisputedamountspayableinrespectofincome-tax,salestax,wealth-tax,servicetax,customsduty,excisedutyandcesswereinarrears,asat3�stMarch,2009,foraperiodofmorethansixmonthsfromthedatetheybecamepayable.

(c) Accordingtotheinformationandexplanationsgiventous,therearenoduesofincome-tax,salestax,wealth-tax,servicetax,customsduty,excisedutyandcesswhichhavenotbeendepositedonaccountofanydispute,exceptasstatedbelow:

Sr.No.

Natureofthedues

Amount(Rs.inlacs)

Periodtowhichtheamountrelates

Forumwheredisputeispending

�. TheIncomeTaxAct,�96�

IncomeTax 32.62 A.Y.2006-2007 CommissionerofIncomeTax(Appeals)

2. TheBombaySalesTaxAct,�959

SalesTax 2�.83 F.Y.�996-�997and�998-�999 DeputyCommissioner(Appeals)

3. TheCentralSalesTaxAct,�956

SalesTax 24.�8 F.Y.�996-�997and�998-�999 DeputyCommissioner(Appeals)

4. TheCustomsAct,�962

CustomDuty,PenaltyandFine

�38.87 F.Y.�993-�994 SupremeCourt

(x) Thecompanydoesnothaveanyaccumulatedlossesattheendofthefinancialyear.Also,thecompanyhasnotincurredcashlossesduringthefinancialyearcoveredbyourauditandintheimmediatelyprecedingfinancialyear.

(xi) Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyhasnotdefaultedinrepaymentofduestobanks.Thecompanyhasnottakenanyloansfromfinancialinstitutionsnorhasitissuedanydebentures.

(xii)Accordingtotheinformationandexplanationsgiventous,thecompanyhasnotgrantedanyloansandadvancesonthebasisofsecuritybywayofpledgeofshares,debenturesandothersecurities.

ANNEXURE TO THE AUDITORS’ REPORT TO THE MEMBERS OF NRB BEARINGS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2009 (referred to in paragraph 3 of our report of even date) (contd.)

37

(xiii)Thecompanyisnotachitfundoranidhi/mutualbenefitfund/society.Therefore,theprovisionsofclause4(xiii)ofthesaidOrderarenotapplicabletothecompany.

(xiv)Thecompanyisnotdealingortradinginshares,securities,debenturesandotherinvestments.Accordingly,theprovisionsofclause4(xiv)ofthesaidOrderarenotapplicabletothecompany.

(xv) Inouropinionandaccordingtotheinformationandexplanationsgiventous,thetermsandconditionsonwhichthecompanyhasgivenguaranteesforloanstakenbyothersfrombanksorfinancialinstitutionsarenotprejudicialtotheinterestofthecompany.

(xvi)Inouropinionandaccordingtotheinformationandexplanationsgiventous,thetermloanshavebeenappliedforthepurposeforwhichtheywereraised.

(xvii)Accordingtotheinformationandexplanationsgiventousandonanoverallexaminationofthebalancesheetofthecompany,wereportthatnofundsraisedonshort-termbasishavebeenusedforlong-terminvestment.

(xviii)Thecompanyhasnotmadeanypreferentialallotmentofsharestopartiesandcompaniescoveredintheregistermaintainedundersection30�oftheAct.Accordingly,thequestionofreportingonwhetherthepriceatwhichsuchshareshavebeenissuedisprejudicialtotheinterestofthecompanydoesnotarise.

(xix)Thecompanyhasnotissuedanydebentures.Accordingly,thequestionofcreatingasecurityorchargefordebenturesdoesnotarise.

(xx) Thecompanyhasnotraisedanymoneybypublicissuesduringtheyear.Accordingly,thequestionofdisclosureofenduseofsuchmoniesdoesnotarise.

(xxi)Accordingtotheinformationandexplanationsgiventous,nofraudonorbythecompanyhasbeennoticedorreportedduringthecourseofouraudit.



ANNEXURE TO THE AUDITORS’ REPORT TO THE MEMBERS OF NRB BEARINGS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2009 (referred to in paragraph 3 of our report of even date) (contd.)

38

BALANCE SHEET AS AT 31ST MARCH, 2009

Schedule As at Asat No. 31.03.2009 3�.03.2008 Rs.lacs Rs.lacs Rs.lacs Rs.lacsI. SOURCES OF FUNDS: �) Shareholders’funds: a) Sharecapital � 969.23 969.23 b) Reservesandsurplus 2 16481.10 �7092.60 17450.33 �806�.83 2) Loanfunds: a) Securedloans 3 7368.76 437�.62 b) Unsecuredloans 4 5613.83 6420.53 12982.59 �0792.�5 3) Deferredtaxliability(net) (seeNote�2onSchedule20) 1255.83 ��93.37 Total 31688.75 30047.35 II. APPLICATION OF FUNDS: �) Fixedassets: 5 a) Grossblock 34057.17 3�732.06 b) Less:depreciation 18063.64 �6�24.�7 c) Netblock 15993.53 �5607.89 d) Capitalworkinprogressand capitaladvancesadvances 158.02 464.56 16151.55 �6072.45 2) Investments 6 1792.70 �78�.45 3) Currentassets,loansandadvances: a) Inventories 7 8946.85 8285.79 b) Sundrydebtors 8 7216.28 8445.08 c) Cashandbankbalances 9 418.06 596.3� d) Loansandadvances �0 1809.59 23��.75 18390.78 �9638.93 Less:Currentliabilitiesandprovisions: a) Currentliabilities �� 3425.63 5783.85 b) Provisions �2 1220.65 �66�.63 4646.28 7445.48 Netcurrentassets 13744.50 �2�93.45 Total 31688.75 30047.35 Significantaccountingpolicies �9 Notestotheaccounts 20

Perourreportattached ForandonbehalfoftheBoardofDirectors

For A. F. FERGUSON & CO. T. S. Sahney P. D. Ojha K. S. PantCharteredAccountants ManagingDirector

H. S. Zaveri K. M. Elavia

A. C. KHANNA S. C. Rangani D. S. SahneyPartner Sr.VPFinance&Co.Secretary Directors

Mumbai:June2,2009 Mumbai:June2,2009

39

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2009 Schedule Year ended Yearended No. 31.03.2009 3�.03.2008 Rs.lacs Rs.lacs Rs.lacs Rs.lacsINCOMESales(Gross) 32427.72 36956.50Less:Exciseduty 3354.10 48�4.�3 29073.62 32�42.37Otherincome �3 534.57 705.32 29608.19 32847.69Increase/(Decrease)instockof work-in-progressandfinishedgoods �4 1108.71 865.70 30716.90 337�3.39 EXPENDITURE Rawmaterials,componentsand packingmaterialsconsumed 10858.21 �0593.80Storesandsparesconsumed 3331.92 3�90.�2Processingcharges 1662.45 �94�.40Powerandfuel 1387.31 �3�6.7�Employeecosts �5 5495.18 5373.0�Repairs �6 481.83 570.52Otherexpenses �7 3767.11 3204.02Depreciation 5 1939.47 �796.84Interest(net) �8 877.36 543.35 29800.84 28529.77 PROFIT BEFORE TAX 916.06 5�83.62Provisionfortaxation -Currenttax 300.00 �650.00-Inrespectofearlieryears (19.93) --Deferredtax 129.67 97.37 409.74 �747.37-Fringebenefittax 80.00 85.00 489.74 �832.37PROFIT AFTER TAX 426.32 335�.25Add:Balanceboughtforward 2571.31 9�5.92 AVAILABLE FOR APPROPRIATIONS 2997.63 4267.�7LESS: APPROPRIATIONS: Proposedfinaldividend 775.38 ��63.07 Additionalincome-taxondistributedprofits 131.78 �97.66 Transfertogeneralreserve 50.00 335.�3 957.16 �695.86 BALANCE CARRIED TO BALANCE SHEET 2040.47 257�.3� Significantaccountingpolicies �9 Notestotheaccounts 20

Basic,aswellasdiluted,earningsperequityshare (Nominalvalueperequityshare:Rs.2) [seeNote�0onSchedule20]:InRs. Rs.0.88 Rs.6.92

Perourreportattachedtothebalancesheet ForandonbehalfoftheBoardofDirectors





40

Year ended Yearended 31.03.2009 3�.03.2008 Rs.lacs Rs.lacs Rs.lacs Rs.lacs A. CASHFLOWFROMOPERATINGACTIVITIES:

NETPROFITBEFORETAX 916.06 5�83.32

Adjustmentsfor:

Depreciation 1939.47 �796.84

Foreignexchangeloss/(gain)-unrealised 400.63 (235.88)

Interest(income)/expenditure(net) 877.36 543.35

Dividendincome (1.24) (8.�8)

Profitonsaleofcurrentinvestments(net) - (3.50)

Provisionfordoubtfuldebts 110.70 �06.22

Provisionforcompensatedabsences 30.09 3.58

3357.01 2202.43

OPERATINGPROFITBEFOREWORKINGCAPITAL CHANGESANDOTHERADJUSTMENTS 4273.07 7386.05

Changesin:

-Tradeandotherreceivables 2057.78 (�045.�3)

-Inventories (661.06) (�386.00)

-Tradepayables (2328.32) �833.�8

(931.60) (597.95) NETCASHGENERATEDFROMOPERATIONS 4273.07 6788.�0

Directtaxespaid(netofrefund) (724.94) (�589.89) NETCASHFROMOPERATINGACTIVITIES 2616.53 5�98.2� B. CASHFLOWFROMINVESTINGACTIVITIES:

Purchaseoffixedassets(includingadjustmentsonaccountof capitaladvances) (1463.43) (5��7.99)

Purchaseofinvestments (11.25) (2853.39)

Saleofinvestments - 2856.89

Dividendincome 1.24 8.�8

Interestincome 58.91 92.�0

Investmentinasubsidiarycompany - (443.86)

NETCASHUSEDININVESTINGACTIVITIES (1414.53) (5458.07)

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2009

4�

Year ended Yearended 31.03.2009 3�.03.2008 Rs.lacs Rs.lacs Rs.lacs Rs.lacs C. CASHFLOWFROMFINANCINGACTIVITIES: Proceedsfromborrowings 6104.42 �6433.60 Repaymentofborrowings (9423.76) (�3744.5�) Increase/(Decrease) in cash credit(Decrease) in cash creditincashcredit 4254.56 (784.46) Interestpaid (956.03) (65�.45) Dividendpaid (1161.78) (630.07) Additionalincome-taxondistributedprofits (197.66) (�07.07) NETCASHGENERATEDFROM/(USEDIN) FINANCINGACTIVITIES (1380.25) 5�6.04 NETINCREASE/(DECREASE)INCASHANDCASH EQUIVALENTS(A+B+C) (178.25) 256.�8

CASHANDCASHEQUIVALENTSASAT THECOMMENCEMENTOFTHEYEAR thecomponentsbeing: Cashonhand 8.20 6.�3 Chequesonhand 275.04 233.47 Balanceswithbanksoncurrentaccounts 313.07 �00.53 596.31 340.�3

CASHANDCASHEQUIVALENTSASAT THEENDOFTHEYEAR thecomponentsbeing: Cashonhand 5.55 8.20 Chequesonhand 287.46 275.04 Balanceswithbanksoncurrentaccounts 125.05 3�3.07 418.06 596.3� NETINCREASE/(DECREASE)ASDISCLOSEDABOVE (178.25) 256.�8 Note: �.Figuresinbracketsrepresentdeductions/outflows. 2.Previousyear’sfigureshavebeenregroupedwherevernecessary.

Perourreportattachedtotheconsolidatedbalancesheet

ForandonbehalfoftheBoardofDirectors





CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2009 (contd.)

42

As at Asat 31.03.2009 3�.03.2008 Rs.lacs Rs.lacs Rs.lacs Rs.lacs Schedule 1 - Share capital

Authorised:

5,00,00,000EquitysharesofRs.2each 1000.00 �000.00

Issuedandsubscribed:

48,46�,300EquitysharesofRs.2eachfullypaid-up 969.23 969.23

Oftheabove:

i) 45,500EquitysharesofRs.2eachhavebeenallottedasfullypaid-uppursuanttocontractswithoutpaymentshavingbeenreceivedincash.

ii) 4�,563,300EquitysharesofRs.2eachhavebeenallottedasfullypaid-upbywayofbonussharesbycapitalisationofgeneralreserveandcapitalreserve.

iii) 38,000EquitysharesofRs.2eachareallottedtothemembersoferstwhileSahneySteelandPressWorksLimitedonitsamalgamationwiththecompanyon0�.04.�99�.

Perbalancesheet 969.23 969.23

Schedule 2 - Reserves and surplus

Capitalreserve:

Perlastbalancesheet 25.00 25.00

Sharepremium:

Perlastbalancesheet 1214.94 �2�4.94

Generalreserve:

Perlastbalancesheet 13281.35 �2946.22

Less: Exchangedifferencesadjustedtocostof (130.66) - fixedassets(netofdeferredtaxRs.67.2�lacs) (seenote3(b)ofSchedule20)

13150.69 �2946.22

Add:Transferredfromprofitandlossaccount 50.00 335.�3

13200.69 �328�.35

Surplusbeingbalanceinprofitandlossaccount 2040.47 257�.3� Perbalancesheet 16481.10 �7092.60

SCHEDULES 1 TO 12 ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31ST MARCH, 2009

43

As at Asat 31.03.2009 3�.03.2008 Rs.lacs Rs.lacs Schedule 3 - Secured loans

FromBanks:

i) CashCredit 4319.20 64.64

ii) TermloansinForeignCurrency 3043.18 4296.�6 [repayablewithinoneyearRs.�466.88lacs (as at 3�.03.2008 Rs. �835.88 lacs)](asat3�.03.2008Rs.�835.88lacs)]

iii)Termloan 6.38 �0.82 [repayablewithinoneyearRs.3.64lacs (asat3�.03.2008Rs.4.44lacs)] Perbalancesheet 7368.76 437�.62 �. CashCredittakenfrombanks(i)aresecuredby

hypothecationofallcurrentassets.

2.TermLoansinForeigncurrency(ii)aresecuredbyhypothecationof/chargeonthecompany’sfixedassetsacquiredfromproceedsoftheloan.

3. TermLoan(iii)issecuredbyhypothecationof/chargeoncompany’svehiclesspecificallypurchasedundertheloan.

Schedule 4 - Unsecured loans

a. Shorttermloansfrombanks 1500.00 3000.00

b. Shorttermloanfrombankinforeigncurrency 2658.40 2022.94

c. Otherloansandadvances InterestfreeSalestaxloan [repayablewithinoneyearRs.45.57lacs (asat3�.03.2008:Rs.47.00lacs)] 1455.43 �397.59 Perbalancesheet 5613.83 6420.53

SCHEDULES 1 TO 12 ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31ST MARCH, 2009 (contd.)

44

Schedule 5 - Fixed assets

GROSS BLOCK - AT COST DEPRECIATION NET BLOCK

Description Opening Balance

As at 01.04.08

Additions Dedu-ctions

Closing Balance

As at 31.03.09

Opening Balance

As at 01.04.08

For the year

On Dedu-ctions

ClosingBalance

As at 31.03.09

As at 31.03.09

As at 31.03.08

Rs. lacs Rs. lacs Rs. lacs Rs. lacs Rs. lacs Rs. lacs Rs. lacs Rs. lacs Rs. lacs Rs. lacs

A. Tangible AssetsFreehold landLeasehold landBuildings and flatsPlant and machineryFurniture, fixturesand equipmentElectrical installationsVehicles

60.0047.46

2977.7826064.63

1260.28

738.61425.62

-130.59440.31

1534.46113.20

71.41-

-----

--

60.00178.05

3418.0927599.091373.48

810.02425.62

-4.57

828.9813834.25

819.42

366.31160.13

-3.42

105.171655.12

68.62

35.4336.22

-----

--

-7.99

934.1615489.37

888.03

401.74196.35

60.00170.06

2483.9312109.72

485.45

408.28229.27

60.0042.89

2148.8012230.38

440.86

372.30265.49

Sub Total (A) 31574.38 2289.97 - 33864.35 16013.66 1903.98 - 17917.64 15946.71 15560.72

B. Intangible AssetsComputer software 157.68 35.14 - 192.82 110.51 35.49 - 146.00 46.82 47.17

Sub Total (B)

Total (A) + (B)

Previous year

157.68 35.14 - 192.82 110.51 35.49 - 146.00 46.82 47.17

31732.06 2325.11 - 34057.17 16124.17 1939.47 - 18063.64 15993.53-

120.10

-15607.89

218.0126822.55 4909.51 - 31732.06 14327.33 1796.84 - 16124.17

Capital work-in-progress

Advances for capital expenditure

Per balance sheet

37.92 246.55

158.02 464.56

16151.55 16072.45

Notes:

i) Buildingsandflatsinclude

a. SharesinrespectofresidentialpremisesofacostofRs.2.25lacsinaco-operativesocietywhichisintheprocessofbeingtransferredinthenameofthecompany.

b. CostofsharesofanaggregatefacevalueofRs.�000inco-operativehousingsocietiesviz.5sharesofRs.50eachinVileParleVatikaCo-operativeHousingSocietyLimited,5sharesofRs.50eachinEdenwoodsCypressHouseCo-operativeHousingSocietyLimited,5sharesofRs.50eachinTheGaneshVillaCo-operativeHousingSocietyLimitedand5sharesofRs.50eachinVinayakBhavanCo-operativeHousingSocietyLimited.


45

As at Asat 31.03.2009 3�.03.2008 Rs. lacs Rs. lacs Rs.lacs Rs.lacs Schedule 6 - Investments Longterm(atcost) A.Non-trade(unquoted) �. Shares: 2�stCenturyBatteryLimited. �0,000EquitysharesofRs.�0eachfullypaid-up 1.00 �.00 2. Inamutualfund: DSPBlackRockEquityFund 50,000unitsofRs.�0eachfullypaid-up 5.00 5.00 6.00 6.00B. Trade �. Insubsidiarycompanies Quoted Shares: SNLBearingsLimited 24,84,�76EquitysharesofRs.�0eachfullypaid-up 174.72 �74.72 Unquoted Shares: SNLBearingsLimited �0,00,0006%Cumulativeredeemablepreference sharesofRs.�00eachfullypaid-up 1000.00 �000.00 NRBBearings(Thailand)Limited 49,99,994SharesofTHB�0eachfullypaid-up 599.64 599.64

2. Inajointventurecompany Unquoted Shares: SchneebergerIndiaPrivateLimited �,�2,500EquitysharesofRs.�0eachfullypaid-up 11.25 -

3. Others Quoted Shares: IndusindBankLimited 8,54�EquitysharesofRs.�0eachfullypaid-up 0.98 0.98 EicherMotorsLimited 600EquitysharesofRs.�0eachfullypaid-up 0.06 0.06 HeroHondaMotorsLimited 6,250EquitysharesofRs.2eachfullypaid-up 0.05 0.05 1786.70 �775.45 Perbalancesheet 1792.70 �78�.45 Aggregateamountofquotedinvestments[marketvalueRs.226.96lacs(asat3�.03.2008:Rs.594.�5lacs)] 175.81 �75.8�Aggregateamountofunquotedinvestments 1616.89 �605.64 1792.70 �78�.45


46

As at Asat 31.03.2009 3�.03.2008 Rs. lacs Rs. lacs Rs.lacs Rs.lacs

Schedule 7 - Inventories(atlowerofcostandnetrealisablevalue,ascertifiedbytheManagingDirector) Storesandspareparts 481.69 505.50

Stock-in-trade

Rawmaterials,boughtoutcomponentsand packingmaterials 1862.04 2285.88

Manufacturedcomponents 709.62 605.3�

Work-in-progress 1550.75 �766.74

Finishedgoods 4342.75 3�22.36 8465.16 7780.29 Perbalancesheet 8946.85 8285.79

Schedule 8 - Sundry debtors

Oversixmonths

Secured,consideredgood 2.70 4.50

Unsecured,consideredgood 1147.30 477.0�

Unsecured,considereddoubtful 374.07 263.37 1524.07 744.88

Others

Secured,consideredgood 40.33 37.8�

Unsecured,consideredgood 6025.95 7925.76 6066.28 7963.57 7590.35 8708.45

Provisionfordoubtfuldebts 374.07 263.37 Perbalancesheet 7216.28 8445.08

Schedule 9 - Cash and bank balances

Cashonhand 5.55 8.20

Chequesonhand 287.46 275.04

Currentaccountswithscheduledbanks 125.05 3�3.07 Perbalancesheet 418.06 596.3�


47

As at Asat 31.03.2009 3�.03.2008 Rs. lacs Rs. lacs Rs.lacs Rs.lacs Schedule 10 - Loans and advances

(Unsecured,consideredgood)

Advancesandloanstosubsidiarycompanies 325.09 676.66

Advancesrecoverableincashorin kindorforvaluetobereceived 918.28 ��75.38

Incometaxespaidlessprovisionsthereagainst(otherthandeferredtax) 389.18 5�.8�

Fringebenefittaxpaidlessprovisionsthereagainst 10.00 -

Balancewithcentralexcise 167.04 407.90 Perbalancesheet 1809.59 23��.75

Schedule 11 - Current liabilities

Sundrycreditors

- duetomicroenterprisesandsmall enterprises(seenote5) - -

- duetoothers 3290.44 5�46.95

3290.44 5�46.95

Securitydeposits 90.72 572.24

LiabilitytowardsInvestorsEducationandProtectionFund underSection205CoftheCompaniesAct,�956

- unpaiddividends(notdue) 13.30 �2.0�

- unclaimedfixeddeposits - �.72

Interestaccruedbutnotdueonloans 31.17 50.93 Perbalancesheet 3425.63 5783.85

Schedule 12 - Provisions

Taxationlesspaymentsthereagainst(otherthandeferredtax) 45.45 62.95

Fringebenefittax(netofpayments) 8.50 8.50

Proposedfinaldividend 775.38 ��63.07

Additionalincome-taxondistributedprofits 131.78 �97.66

Gratuity 1.00 �.00

Compensatedabsences 258.54 228.45 Perbalancesheet 1220.65 �66�.63

SCHEDULES 1 TO 12 ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31ST MARCH, 2009

48

Year ended Yearended 31.03.2009 3�.03.2008 Rs. lacs Rs. lacs Rs.lacs Rs.lacs Schedule 13 - Other income

Saleofscrap 405.46 36�.09

Agencycommission 43.68 95.98

Dividendfrominvestments

Trade-Longterm 1.24 �.29

Otherthantrade-Longterm - 3.50 1.24 4.79

Otherthantrade-Current - 3.39 1.24 8.�8

Profitonsaleofcurrentinvestments(net) - 3.50

Rent 74.59 74.65

Foreignexchangegain(net) - �45.37

Miscellaneous 9.60 �6.55 Perprofitandlossaccount 534.57 705.32

Schedule 14 - Increase/(Decrease) in stock of work-in-progress and finished goods

Openingstocks: Manufacturedcomponents 605.31 626.33 Work-in-progress 1766.74 �648.65 Finishedgoods 3122.36 2353.73 5494.41 4628.7�Closingstocks: Manufacturedcomponents 709.62 605.3� Work-in-progress 1550.75 �766.74 Finishedgoods 4342.75 3�22.36 6603.12 5494.4� Perprofitandlossaccount 1108.71 865.70

Schedule 15 - Employee costsSalaries,wagesandbonus 4345.31 42�9.03Gratuity 209.35 �08.53Company’scontributiontoprovidentfund andotherfunds 347.91 347.60Staffwelfare 592.61 697.85 Perprofitandlossaccount 5495.18 5373.0�

SCHEDULES 13 TO 18 ANNEXED TO AND FORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2009

49

Year ended Yearended 31.03.2009 3�.03.2008 Rs. lacs Rs. lacs Rs.lacs Rs.lacs Schedule 16 - RepairsPlantandmachinery 210.03 298.40Buildings 184.65 �52.27Others 87.15 ��9.85 Perprofitandlossaccount 481.83 570.52

Schedule 17 - Other expensesInsurance 62.18 72.42Rent 20.08 �5.06Ratesandtaxes 74.09 ��7.64Legalandprofessionalfees 207.87 203.35Directors’fees 2.10 2.25Commissiononsales 154.13 �44.06Travellingandconveyance 445.71 480.65Postage,telephoneandfax 93.16 96.76Bankcharges 88.52 49.5�Cashdiscountonsales 25.42 36.33Advertisementandpublicity 82.47 77.98Forwardingcharges 646.17 744.55Turnoverrebate/Incentives 231.36 207.99Provisionfordoubtfuldebts 110.70 �06.22Leaserent 44.51 68.20ITexpenses 93.02 69.33ExcisedutyonIncreaseinstockoffinishedgoods (92.46) �2�.08ForeignexchangeLoss 971.26 -Miscellaneous 506.82 590.64 Perprofitandlossaccount 3767.11 3204.02

Schedule 18 - Interest (Net)Onfixedloans 668.20 57�.26Onothers 268.07 64.�9 936.27 635.45Less:Interestincome(Gross)onInter-corporatedeposits (58.91) (92.�0)[TaxdeductedatsourceRs.�3.25lacs (3�.03.2008:Rs.20.87lacs)] 877.36 543.35

SCHEDULES 13 TO 18 ANNEXED TO AND FORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2009

50

Schedule 19 - Significant accounting policies annexed to and forming part of the balance sheet as at 31st March, 2009 and the profit and loss account for the year ended on that date�. Basis of accounting

The financialstatementsarepreparedunderhistoricalcostconventiononanaccrualbasisandare inaccordancewiththerequirementsoftheCompaniesAct,�956,andcomplywiththeAccountingStandardsreferredtoinsub-section(3C)ofsection2��ofthesaidAct.

2. Fixed assets and depreciation

(a) Allfixedassetsarestatedatcostofacquisition,includinganyattributablecostforbringingtheassettoitsworkingconditionforitsintendeduselessaccumulateddepreciation.

(b) Depreciationfortheyearhasbeenprovidedonthestraightlinemethod,inthemannerandattheratesprescribedinScheduleXIVtotheCompaniesAct,�956,exceptthatleaseholdlandisamortisedovertheperiodoftheleaseandcomputersoftwareisamortisedoveraperiodof36months.

(c) AlsoseeNote9below.

3. Foreign currency transactions

(a) Transactions in foreigncurrenciesarerecordedat theexchangerateprevailingonthedateof thetransaction.Inrespectofmonetaryitemsdenominatedinforeigncurrencies,exchangedifferencesarisingoutofsettlementoronconversionat theclosingratearerecognisedintheprofitandlossaccount. Exchange differences arising on long term foreign currency monetary items relatingto acquisition of depreciable capital assets, are adjusted to the carrying amount of fixed assets.(Seenote3bofSchedule20).

(b) Swaptransactionsareenteredbythecompanytohedgeitsexposureagainstmovementsinforeignexchangeratesandinterestrates

(c) Gains/lossesarisingonswaptransactionsarerecognizedintheprofitandlossaccount.

4. Investments

Long-terminvestmentsarestatedatcostlessprovisionfordiminutioninthevalueofinvestments,ifany.Currentinvestmentsarestatedatlowerofcostandfairvalue.

5. Inventories

StoresandsparepartsandStock-in-tradecomprisingofrawmaterials,boughtoutcomponents&packingmaterials,manufacturedcomponents,work-in-progressandfinishedgoodsarevaluedatthelowerofcostandnetrealisablevalue.Materialcostsincludedinthevaluationofstock-in-tradearedeterminedonthebasisofweightedaveragemethod.Costsofconversionandothercostsaredeterminedonthebasisofstandardcostmethodadjustedforvariancesbetweenstandardcostsandactualcosts,unlesssuchcostsarespecificallyidentifiable,inwhichcasetheyareincludedinthevaluationatactuals.

6. Sales

(a) SalesarerecognizedinaccordancewithAccountingStandard9viz.whenthesellerhastransferredtothebuyer,thepropertyinthegoods,foraprice,orallsignificantriskandrewardsofownershiphavebeentransferredtothebuyerwithoutthesellerretaininganyeffectivecontroloverthegoods.

(b) Salesareinclusiveofexcisedutyandarenetofsalesreturns.

7. Employee benefits

(a) Shorttermemployeebenefitsarerecognisedasanexpenseattheundiscountedamountintheprofitandlossaccountoftheyearinwhichtherelatedserviceisrendered.

(b) Longtermbenefits:

(i) DefinedContributionPlans:

�. ProvidentandFamilyPensionFund

Theeligibleemployeesof thecompanyareentitled to receivepostemploymentbenefits in

5�

respectofprovidentandfamilypensionfund,inwhichbothemployeesandthecompanymakemonthly contributionsat a specifiedpercentageof theemployees’ eligible salary (currently�2%ofemployees’eligiblesalary).ThecontributionsaremadetotheRegionalProvidentFundCommissioner.ProvidentFundandFamilyPensionFundareclassifiedasDefinedContributionPlansasthecompanyhasnofurtherobligationsbeyondmakingthecontribution.

2. Superannuation

Theeligibleemployeesof thecompanyareentitled to receivepostemploymentbenefits inrespectofsuperannuationscheme,inwhichthecompanymakesquarterlycontributionsat�5%ofemployees’eligiblesalary.Thecontributionsaremadetoainsurancecompanyonbehalfofthetrustmanagedbythecompany(currentlyHDFCStandardLifeInsuranceCompanyLimited).Superannuationscheme isclassifiedasDefinedContributionPlanas theCompanyhasnofurtherobligationsbeyondmakingthecontribution.

The Company’s contributions to Defined Contribution Plans are charged to profit and lossaccountasincurred.

(ii) DefinedBenefitPlans:

�. Gratuity

TheCompanyhasanobligationtowardsgratuity,adefinedbenefitretirementplancoveringeligibleemployees.Theplanprovidesalumpsumpaymenttovestedemployeesatretirement,deathwhile inemploymentoronterminationofemploymentofanamountequivalent to�5dayssalarypayableforeachcompletedyearofserviceatanaverageoflasttenmonthssalary.Vestingoccursuponcompletionoffiveyearsofservice.TheCompanyhasarrangementswiththeinsurancecompany(currentlyHDFCStandardLifeInsuranceCompanyLimited)forfuturepaymentsofgratuitiesonbehalfofthetrustsestablishedforthispurpose.TheCompanyaccountsforgratuitybenefitspayableinfuturebasedonanindependentactuarialvaluationasattheyearend.Actuarialgainsandlossesarerecognizedintheprofitandlossaccount.

2. Compensatedabsences

TheCompanyprovidesforencashmentofleaveorleavewithpaysubjecttocertainrules.Theemployeesareentitled toaccumulate leavesubject tocertain limits for futureencashment/availment.The liability isprovidedbasedonthenumberofdaysofunutilised leaveateachbalancesheetdateonthebasisofanindependentactuarialvaluation.Actuarialgainsandlossesarerecognizedintheprofitandlossaccount.

8. Voluntary retirement compensation

Voluntaryretirementcompensationisfullyexpensedintheyearinwhichtheliabilityisincurred.

9. Research and development expenditure

Capitalexpenditureonresearchanddevelopmentistreatedinthesamewayasotherfixedassets.Revenueexpenditureiswrittenoffintheyearinwhichitisincurred.

�0. Borrowing costs

Borrowingcosts thataredirectlyattributable to theacquisitionorconstructionofqualifyingassetsarecapitalised.Aqualifyingassetisanassetthatnecessarilytakessubstantialperiodoftimetogetreadyforitsintendeduse.Otherborrowingcostsarerecognisedasanexpenseintheperiodinwhichtheyareincurred.

��. Taxation

Taxationexpensescomprisecurrenttax,deferredtaxandfringebenefittax.

(a) CurrenttaxistheamountoftaxpayableonthetaxableincomefortheyearasdeterminedinaccordancewiththeprovisionsoftheIncome-taxAct,�96�.

(b) Deferredtaxisrecognizedontimingdifferencesbetweentaxableincomeandaccountingincomethatoriginateinoneperiodandarecapableofreversalinoneormoresubsequentperiods.

(c) FringebenefittaxistheamountoftaxpayableonthevalueofbenefitsprovidedtoemployeesfortheyearasdeterminedinaccordancewiththeprovisionsoftheIncome-taxAct,�96�.

52

As at Asat 31.03.2009 3�.03.2008 Rs. lacs Rs.lacs�. Contingent liabilities not provided for: a) IncomeTax 60.25 27.63 b) Salestax 46.01 46.0� c) Customsduty 158.87 �58.87 d) Bankguarantees 8.00 5.50 e) Billsdiscounted - ��3.72 f) Corporateguaranteesissuedonbehalfof subsidiarycompanies. 1973.56 498.93

TheCompanyisinfurtherappealinrespectofmattersstatedina)toc)above.2. Estimatedamountofcontractsremaining tobeexecutedoncapitalaccountandnot providedfor(netofadvances) 1542.17 555.82 Year ended Yearended 31.03.2009 3�.03.2008 Rs. lacs Rs.lacs3. a) Theamountofexchangedifferences(net): i) (credited)/debitedtotheprofitandlossaccountis 971.26 (�45.37) ii) addedto/(deductedfrom)thecarrying amountoffixedassetsis(alsosee3bbelow) 555.14 -- b) PursuanttotheoptionavailableundertheCompanies(AccountingStandards)AmendmentRules,

2009,issuedvidenotificationnoG.S.R.225(E)dated3�stMarch,2009,theCompanyhas,witheffectfrom�stApril,2007,changeditsaccountingpolicywhereinexchangedifferencesarisingonlongtermforeigncurrencymonetaryitemsinsofarastheyrelatetoacquisitionofdepreciablecapitalassethasbeenaddedtoordeductedfromthecostoftheassetanddepreciatedoverthebalanceusefullifeoftheasset.Untilthepreviousyear,suchexchangedifferenceswererecognizedasincomeorexpenditureintheprofitandlossaccount.Accordingly,exchangeloss(net)islowerbyRs.753.0�lacs,fixedassetsishigherbyRs.555.�4lacs,generalreserveislowerbyRs.�30.66lacs(netofdeferredtaxRs.67.2�lacs)andprofitbeforetaxishigherbyRs.753.0�lacs.

4. ThecompanyhasinvestmentsofRs.��74.72lacs(asat3�.03.2008:Rs.��74.72lacs)comprising2484�76EquitysharesofRs.�0eachand�0000006%CumulativeredeemablepreferencesharesofRs.�00/-each,inSNLBearingsLimited(SNL),asubsidiarycompany.ThecompanyhasalsograntedtoSNL,advancesandloansofRs.300.00lacs(asat3�.03.2008:Rs.650.00lacs).AlthoughSNLhassubstantialaccumulatedlosses,intheopinionofthemanagement,havingregardtothelongtermprospectsofSNLandtheeffortsbeingmadetoturnarounditsfinancialpositionandperformance,noprovisionforthelossisconsiderednecessary.

5. TherearenoamountsduetothesupplierscoveredunderMicro,SmallandMediumEnterprisesDevelopmentAct,2006;thisinformationtakesintoaccountonlythosesupplierswhohaverespondedtotheenquiriesmadebytheCompanyforthispurpose.Thishasbeenrelieduponbytheauditors.

Schedule 20 - Notes annexed to and forming part of the balance sheet as at 31st March, 2009 and the profit and loss account for the year ended on that date

53

Year ended Yearended 31.3.2009 3�.3.2008 Rs. in lacs Rs.inlacs6. ExpenditureonResearchandDevelopment: a) chargedtotheprofitandlossaccount 251.11 200.4� b) capitalizedtofixedassets 44.72 ��2.93

7. Asthecompany’sactivityfallswithinasinglesegmentviz.bearingsandthesalessubstantiallybeinginthedomesticmarket,thedisclosurerequirementsofAccountingStandard�7“SegmentReporting”,isnotapplicable.

8. Related party disclosures

(i) Names of related parties and nature of relationship where control exists

(a) SNLBearingsLimited–subsidiarycompany

(b) NRBBearings(Thailand)Limited-subsidiarycompany

(c) Mr.T.S.Sahney,ChairmanandManagingDirector–individualhavingsubstantialinterestinthevotingpowerandthepowertodirectbyagreement,thefinancialandoperatingpoliciesofthecompany.

54

(ii) Transactionswithrelatedparties

Name of the related party and description

of relationship

Nature of transaction Volume of transactions

Rs. lacs

Receivable As at

31.03.2009 Rs. lacs

Payable As at

31.03.2008 Rs. lacs

SNL Bearings Limited,referredin(i)(a)above

ICDsrepaid

InterestreceivedonICDs

Saleofrawmaterials

Leaserentpaid

Purchaseofrawmaterialsetc.andfinishedgoods

PurchaseofPlantandMachinery

350.00 (400.00)

58.91(92.�0)

12.89(�3.45)

-(24.50)

838.50(858.80)

-(273.96)

300.00(650.00)

-(-)

-(-)

-(-)

-(-)

75.19(247.43)

Outstandingguarantees

GuaranteesgivenbyNRB -(-)

210.00(2�0.00)

NRB Bearings (Thailand) Limited.,referredin(i)(b)above

InvestmentinSharecapital

Advancesgiven

AdvancesRepaid

SaleofRawmaterialsandFinishedgoods

-(443.86)

-(9.�0)

6.60(-)

29.98(-)

25.93

(26.66)

Outstandingguarantees

GuaranteesgivenbyNRB 1474.63(288.93)

1763.56(288.93)

Key management personnel

-Mr.T.S.Sahney[alsotheindividualreferredin(i)(c)above]

-Ms.H.S.Zaveri–WholetimeDirector

-Mr.D.S.Sahney–WholetimeDirector

Remuneration

82.21(�34.88)

72.68(9�.90)

52.14(60.87)

-

(-)

-

(74.�0)

New Indo Trading Co.afirmwheretheindividualreferredin(i)(c)aboveisapartner

Servicechargespaid 4.20(4.20)

-(-)

-(�.4�)

Schneeberger India Private Limited,aJointVentureoftheCompany

InvestmentinSharecapital

ReimbursementofExpenses

RentReceived

11.25(-)

8.78(-)

3.52(-)

-(-)

-(-)

-(-)

-(-)

55

8. (contd.)

(iii) Additionaldisclosurepursuant toCircularCRD/GEN/2003/�datedFebruary6,2003ofTheStockExchange,Mumbai.

Name Balance as at Maximum amount outstanding 31st March, 2009 during the year ended 31st March, 2009 Rs.lacs Rs.lacs Loansandadvancesinthe natureofloanstosubsidiary companies- a) SNLBearingsLimited 300.00 650.00 (650.00) (�050.00) b) NRBBearings(Thailand)Limited 25.09 26.66 (26.66) (26.66)Notes:i) Figuresinbracketsareinrespectofthepreviousyear.

ii) Noamountspertainingtorelatedpartieshavebeenprovidedforasdoubtfuldebts.Further,no amountshaveeitherbeenwrittenofforwrittenbackduringtheyear.

iii) Dividendpaidhasnotbeenconsideredbythecompanyasatransactionfallingunderthepurview ofAccountingStandard�8“RelatedPartyDisclosures”.

9. Thecompanyhas takencertainequipmentandvehiclesonoperating lease.Leaserentalschargedtotheprofitandlossaccountfortheyearended3�stMarch,2009aggregatedRs.44.5�lacs(fortheyearended3�.03.2008:Rs.68.20lacs).Theminimumleasepaymentstobemadeinfutureasattheyearend,inrespectofnon-cancellableleasesareasfollows:

(Rs. in lacs) (i) Foraperiodnotlaterthanoneyear 28.96 (44.8�)

(ii) Foraperiodlaterthanoneyearand 42.16 notlaterthanfiveyears (80.87)

(iii)Foraperiodlaterthanfiveyears - (-)

Figuresinbracketsareinrespectofthepreviousyear

�0. Values used in calculating Earnings Per Share

Year ended Yearended 31.03.2009 3�.03.2008 (i) Numerator:Profitaftertax(Rs.inlacs) 426.32 335�.25

(ii)Denominator:NumberofEquityshares 48,461,300 48,46�,300

56

Year ended Yearended 31.03.2009 3�.03.2008 Rs. lacs Rs.lacs�� (a)Directors’ remuneration* Whole-timedirectors

Salary 103.20 �03.20

Commission - 74.�0

Contributiontoprovidentfundandotherfunds 21.12 23.9�

Otherperquisites 82.71 86.44 Non-wholetimedirectors 207.03 287.65

Directors’fees 2.10 2.25

Commission 1.50 5.00 210.63 294.90

*excludinggratuitycontributedandcompensated absencesprovided,onaglobalbasis.

Note:

Consequent to inadequacy of profits for the year,remuneration paid to Managing Director and a Whole-timeDirectorisinexcessofthelimitspecifiedinSection�98oftheCompaniesAct�956readwithSchedule XIII of the Act. The excess remunerationof Rs. 44.26 lacs is pending approval of themembers in the ensuing Annual General Meeting. TheCompanywillsubsequentlymaketheapplicationtoCentralGovernmentinthisregard.

(b)CommissionpayabletotheDirectors:

Profitbeforetax 916.06 5�83.62

Add:i)Whole-timeDirectors’remuneration 207.03 287.65

ii)Directors’sittingfees 2.10 2.25

iii)Commissiontonon-wholetimeDirectors 1.50 5.00

iv)Provisionfordoubtfuldebts 110.70 �06.22 Netprofit 1237.38 5584.74

CommissionpayabletotheManagingDirectorandthe twowhole-timedirectors(attherateof�%ofnetprofits toeachofthem,limitedtooneyear’ssalaryinrespect oftheManagingDirectorandsixmonth’ssalaryin respectofthetwowhole-timedirectors) - 74.�0 Commissiontonon–wholetimedirectors(not exceeding0.�25%ofnetprofits,subjecttomaximumof Rs.5lacsasdeterminedbytheBoardofDirectors) 1.50 5.00

57

�2 Componentsofdeferredtax: Rs.lacs

Nature of timing difference Deferred tax asset/(liability)

As at 31.03.2008

Credit/(charge) for the year

Deferred tax asset/(liability)

As at 31.03.2009

(a) Deferred tax liability

Depreciation (�364.80) (�06.06) (�470.86)

Sub–total (�364.80) (�06.06) (�470.86)

(b) Deferred tax asset

Provisionfordoubtfuldebts

Provisionforcompensatedabsences

Voluntaryretirementcompensation

89.52

77.65

4.26

37.63

�0.23

(4.26)

�27.�5

87.88

-

Sub-total �7�.43 43.60 2�5.03

Netamount ��93.37 62.46 �255.83

Add: Tax effect of exchange differencespertaining to previous year adjusted ingeneralreserve

[seenote3(b)]

67.2�

Netcharge �29.67

Year ended Yearended 31.03.2009 3�.03.2008 Rs. lacs Rs.lacs�3. Details of Auditors’ remuneration: (excludingservicetax)

Auditfees 16.00 �4.00

Reportundersection44ABof theIncome-taxAct,�96� 2.00 2.00

Taxationmatters 3.98 �.55

Otherservices 14.30 8.00

Reimbursementofexpenses 0.50 0.�4

58

�4. Raw materials, components and packing materials consumed:

Year ended Yearended 31.03.2009 3�.03.2008 Unit Quantity Value Quantity Value Rs. lacs Rs.lacs Raw materials:

Steel Tonnes 83566 7681.66 9�54 729�.24

Brass “ 114 153.57 �62 224.86 Sub-total 7835.23 75�6.�0 Components Nos.in000s 101656 2411.31 ��727 2395.96 Sub-total 2411.31 2395.96 Packing materials * 611.67 * 68�.74

*diversequantitativeunits Grandtotal 10858.21 �0593.80

Ofwhich % Value % Value Rs.lacs Rs.lacs

Imported 27 2938.06 26 27�9.�5

Indigenous 73 7920.15 74 7874.65 Total 100 10858.21 �00 �0593.80

Note:Consumptionincludesadjustmentofexcess/shortageascertainedonphysicalcount.

�5 Stores and spares consumed:

Year ended Yearended 31.03.2009 3�.03.2008 % Value % Value Rs. lacs Rs.lacs

Imported 12 396.88 �0 328.49

Indigenous 88 2935.04 90 286�.63 100 3331.92 �00 3�90.�2

59

�6. Capacity and Production:

Unit

Installed capacity (per annum)

Production

As at 31.03.2009

Asat3�.03.2008

Year ended 31.03.2009

Yearended3�.03.2008

LooseNeedleRollers Nos.in000s 3429120 3429�20 2200787 2336622

NeedleRollerBushesandCages

“ 57294 52294 41302 43037

BallandRollerBearings “ 29080 28930 17406 2�963

AutomobileComponents “ 4500 4500 3086 3�37

Notes: i) Licencedcapacityhasnotbeenshownastheindustryhasbeendelicensed. ii) Installed capacity is as certified by the Chairman and Managing Director and has been

acceptedbytheauditorswithoutverification,thisbeingatechnicalmatter. iii) Productionincludesfollowingquantitiesproducedforcaptiveconsumption: (a) LooseNeedleRollers–�2�9625Nos. in thousands (for theyearended3�.03.2008:

�308297Nos.inthousands) (b)NeedleRollerBushesandCages–487Nos.inthousands(fortheyearended3�.03.2007:

9�6Nos.inthousands)

�7. Sales (net of excise duty):

Unit

Year ended 31.03.2009

Yearended3�.03.2008

Quantity Value Rs.lacs

Quantity ValueRs.lacs

LooseNeedleRollers Nos.in000s 918241 1803.33 �046488 �8�2.4�


“ 41448 11849.24 4�234 ��6�6.50

BallandRollerBearings “ 15327 13767.74 20324 �7�46.50

AutomobileComponents “ 2977 1653.31 3��9 �566.96

Total 29073.62 32�42.37

Note: ThecompanysometimessellsmanufacturedcomponentsofNeedleRollerBushesandCages andNeedleRollerBearings.Thequantitiesofsuchcomponentshavenotbeenincludedinthe relevantgroups.However,thevalueshownundertherelevantgroupsisinclusiveofthevalueof suchcomponents.

60

�8. Closing stock of finished goods:

UnitAs at 31.03.2009 Asat3�.03.2008 Asat3�.03.2007

Quantity Value Rs.lacs



LooseNeedleRollers Nos.in000s 190360 377.37 �27439 2�0.32 �45602 2��.04


“ 7119 1205.46 5095 808.52 4208 765.79

BallandRollerBearings “ 2545 2520.30 3�23 �939.53 �484 �226.7�

AutomobileComponents “ 510 239.62 40� �63.99 383 �50.�9

Total 4342.75 3�22.36 2353.73

Notes: (�) Stocksareafteradjustmentsforexcess/shortageonphysicalcountandwriteoffofobsolete andslowmovingitems.

(2) ThecompanyalsosellsmanufacturedcomponentsofNeedleRollerBushesandCagesand NeedleRollerBearings.Thequantitiesofsuchcomponentshavenotbeenincludedinthe relevantgroups.However,thevaluesshownundertherelevantgroupsareinclusiveofthe valuesofsuchcomponents.

Year ended Yearended 31.03.2009 3�.03.2008 Rs.lacs Rs.lacs�9 C.I.F. value of imports:

i) Rawmaterialsandcomponents 3402.55 2383.93

ii)Storesandspares 441.14 40�.74

iii)Capitalgoods 189.83 �882.22

20. Expenditure in foreign currency:

i) Foreigntravel 81.74 74.48

ii)Commissiononexports 10.07 5.52

iii) Interest 409.60 264.38

iv)Salary 122.34 65.79

v) Others - 7.222�. Earnings in foreign exchange:

i) ExportofgoodscalculatedonF.O.B.basis 4418.52 3534.68

ii) Reimbursementofinsuranceandfreightonexports 77.69 80.47

iii)Agencycommission 43.68 95.98

6�

22. Financial and Derivative Instruments

i) ForwardExchangeContractsenteredintobytheCompanythatareoutstandingasat3�stMarch,2009.

Currency Amountinforeigncurrency Buy/Sell CrossCurrency

USD �,405,000(-)

Buy(-)

INR(-)

JPY �0,000,000(-)

Buy(-)

INR(-)

JPY �8,247,932(-)

Buy(-)

USD(-)

EURO 25,000(-)

Buy(-)

USD(-)

TheseForwardForeignExchangeContractsareenteredintoforhedgingpurposesandnotforspeculationpurposes

ii) Swaptransactionstohedgeagainstfluctuationsinexchangerates:

No.ofcontracts : 2 (2)

PrincipalamountinUSDollars : �,470,048 (�,500,000)

Equivalentrupeesatyearendrate : 702.07lacs (694.80lacs)

PrincipalamountinYen : 4�3,243,475 (crosscurrencyswapinUSDollars) (4�3,243,475)

Equivalentdollarsatyearendrate : 3,880,220 (3,880,220)

iii) Foreign currency exposures that have not been hedged by a derivative instrument or otherwiseoutstandingasat3�.03.2009:

a) Amountsreceivableinforeigncurrency:

Purpose Currency Amount EquivalentRs.lacsasattheyearend

Exportofgoods USD 599,745(�55,946)

304.07(62.�3)

EURO 2,470,309(�,592,496)

1653.87(�002.�6)

CHF 5,985(-)

2.66(-)

GBP 22,313(9,777)

16.16(7.76)

62

b) Amountspayableinforeigncurrency:


Importofgoods JPY 47,013,938(�20,894,627)

248.33(483.34)

EURO 278,027(373,806)

179.31(235.39)

USD -(8�,923)

-(32.65)

CHF 34(�6,325)

0.01(6.53)

CapitalImports JPY -(��7,300,775)

-(468.97)

Loanspayable USD 5,667,556(�4,��3,005)

2874.58(5624.30)

Interestpayable USD -(77,666)

-(30.95)

JPY 4,687,200(938,879)

25.38(3.72)

iv) Figuresinbracketsarethecorrespondingfiguresinrespectofthepreviousyear.

23. EmployeeBenefits

�. Defined Contribution plans

ContributiontoDefinedContributionPlans,recognizedinthestatementofprofitandlossaccountfortheyear,underemployeecostsinschedule�5areasunder:

Year ended Yearended 31.03.2009 3�.03.2008 Rs. in Lacs Rs.inLacs i) Employer’sContributiontoProvidentFund 138.66 �24.85

ii) Employer’sContributiontoFamilyPensionFund 95.05 �06.38

iii) Employer’sContributiontoSuperannuationFund 65.72 62.4�

2. Defined Benefit Plan

a) Gratuity–asperactuarialvaluationason3�stMarch,2009(basedonProjectedUnitBenefitMethod)

Particulars As at 31st March, 2009 Rs. In Lacs

As at 31st March, 2008 Rs. In Lacs

i)Componentsofemployerexpensesa)CurrentServicecostb)Interestcostc)Expectedreturnonplanassetsd)ActuarialLosses/(Gains) Total expenses recognised in the Profit and Loss Account

38.776�.22

(74.99)�84.35209.35

35.5952.75

(58.35)78.54

108.53

63

Particulars As at 31st March, 2009 Rs. In Lacs

As at 31st March, 2008 Rs. In Lacs

ii)ActualContributionandBenefitPaymentsforyear

a)Actualbenefitpayments

b)ActualContributions

55.20

214.00

6�.39

110.00

iii)Netasset/(liability)recognisedinbalancesheet

a)DefinedBenefitObligation

b)FairValueofPlanassets

c) Net asset/(liability) recognised in balance sheet

d)Experienceadjustmentarisingon:

�)PlanLiabilities[Losses/(Gains)]

2)PlanAssets[Losses/(Gains)]

(886.53)

888.�2

1.59

87.62

96.73

(754.�2)

75�.06

(3.06)

72.66

5.88

iv)ChangeinDefinedBenefitObligations(DBO)duringtheyear

a)PresentValueofDBOatthebeginningoftheyear

b)CurrentServicecost

c)Interestcost

d)ActuarialLosses/(Gains)

e)Benefitspaid

Present Value of DBO at the end of the year

754.�2

38.77

6�.22

87.62

(55.20)

886.53

654.5�

35.59

52.75

72.66

(6�.39)

754.12

v)ChangeinFairValueofAssetsduringtheyear

a)Planassetsatbeginningoftheyear

b)Expectedreturnonplanassets

c)Actuarial(Losses)/Gains

d)ActualCompanycontributions

e)FairValueofbenefitspaid

Fair value of plan assets at the end of year

75�.06

74.99

(96.73)

2�4.00

(55.20)

888.12

649.97

58.36

(5.88)

��0.00

(6�.39)

751.06

vi)Contributionexpectedtobepaidnextyear 69.69 58.45

vii)ActuarialAssumptions

a)DiscountRate

b)ExpectedrateofreturnonPlanassets

c)Salaryescalation

d)MortalityTable

8.00%

8.00%

3%-4%

LIC(�994-96)Ultimate

8.00%

8.00%

3%-4%

LIC(�994-96)Ultimate

viii)Themajorcategoriesofplanassets-InsurerManagedFunds

�00.00% �00.00%

Notes: i) AccountingStandard�5 (Revised2005) “EmployeeBenefits” requires thedisclosureof theinformationmentionedunder2(a)(iii)aboverelatedto‘NetAsset/(Liability)recognizedinbalancesheet’forthepastfouryears;howevertheinformationisavailableonlyforpastoneyearsincethedateofimplementationoftheStandard.

ii) Theexpectedrateofreturnonplanassetsisbasedontheaveragelongtermrateofreturnexpectedoninvestmentsofthefundduringtheestimatedtermofobligation.

iii) Theassumptionoffuturesalaryincreases,consideredinactuarialvaluation,takeaccountofinflation,seniority,promotionandotherrelevantfactors.

64

b) Compensatedabsencesrecognizedinthestatementofprofitandlossaccountfortheyear,underemployeecostinschedule�5,isRs.62.09lacs(fortheyearended3�.03.2008:Rs.38.07lacs)

24. ThecompanyhasenteredintoajointventureagreementwithSchneebergerHoldingAG,SwitzerlandtoactasitsexclusiveagentinIndiaandhasformedajointventurecompanywitheffectfrom�5thFebruary,2008 for which NRB Bearings Limited has contributed towards its share capital on �4th May, 2008.Theproportionateshareinassets,liabilities, income&expenditureofthejointventurecompanyason3�st,December2008isgivenbelow:

(RupeesinLacs)

NameofTheJointventurecompany

Percentageofholding

Assets Liabilities Income Expenditure

SchneebergerIndiaPrivateLimited(incorporatedinIndia)

45% �9.54 #7.79 �5.9� 8.56

Therearenocapitalcommitmentnorcontingentliabilities.

#netafterdeductingshareholders’funds

25. Previousyear’sfigureshavebeenregroupedwherevernecessary.

SignaturetoSchedule�to20


T. S. Sahney P. D. Ojha K. S. Pant ManagingDirector


S. C. Rangani D. S. Sahney Sr.VPFinance&Co.Secretary Directors

Mumbai:June2,2009

65

BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE

(+forProfit,-forLoss)

- - - � 3 2 5 � � �

- - - N I L - - -

- -�648��0

3 � 0 3 2 0 0 9

- - - 7 3 6 8 7 6 - - - 5 6 � 3 83

- - 3 � 6 8 8 7 5 - - 3 � 6 8 8 7 5

- - � 6 � 5 � 5 5 - - - � 7 9 27 0

- - � 37 4 4 5 0

- - 2 9 6 0 8 � 9

+-

- - - - 9 � 60 6 - - - - 4 26 32

- - - - - - . 8 8 - 80

- - - � 2 5 5 8 3

- - - N I L - - -

- - - N I L - - -

- - - N I L - - -

+-

I. Registration Details

RegistrationNo. StateCode

BalanceSheetDate

DateMonthYear

II. Capital Raised During the year (Amount in Rs. )

PublicIssue RightIssue

BonusIssue PrivatePlacement

III. Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands)

TotalLiabilities TotalAssets

SourcesofFund Paid-UpCapital Reserves&Surplus

SecuredLoans UnsecuredLoans

DeferredTaxLiability

ApplicationofFunds NetFixedAssets Investments

NetCurrentAssets MiscellaneousExpenses

AccumulatedLosses

IV. Performance of Company (Amount in Rs. Thousands)

TurnOver TotalExpenditure

ProfitbeforeTax ProfitafterTax

EarningPerShareinRs. DividendRate%

- - - - 969 2 3

- - - N I L - - -

- - 2 86 9 2 � 3

- - - N I L - - -

66

V. Generic Names of Three Principal Products/ Services of Company (as per monetary terms)

ItemCodeNo. (ITCCode)

Product Description


Product Description


Product Description

- - - - - 8 4 8 2 � 0 . 0 0

- - - - - 84 8 2 4 0.. 00

- - - - 8 4 8 2 � 0 . 0 0

BEA R I NGS - - - - - - - - - - - -

BEA R I NGS - - - - - - - - - - - - - - - -

NEE DL E ROL L ER - - - - - - - - - - -

BA L L BE AR I NGS - - - - - - - - - -

CYL I NDR I CA L ROL L ER - -





Mumbai:June2,2009

67

STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956 RELATING TO SUBSIDIARY COMPANIES SNL BEARINGS LTD AND NRB BEARINGS (THAILAND)LTD

SNL BEARINGS LTD NRB BEARINGS (THAILAND) LTD 3�stMarch,2009 3�stMarch,2009

A. TheFinancialYearoftheSubsidiaryCompany

B. (a) NumberofSharesheldby 2484�76EquitySharesof 4,999,994EquitySharesof HoldingCompanyattheendof Rs.�0/-eachfully ThaiBaht�0/-each, thefinancialyearofthe paidup ThaiBaht�0eachfullypaidup SubsidiaryCompany

(b) Extentofholding 68.78% �00.00%

C. Thenetaggregateofprofit/(loss)oftheSubsidiary sofarasitconcernsthemembersoftheHolding CompanyandnotdealtwithintheAccountsofthe HoldingCompany

(a) Forthefinancialyearended3�stMarch,2009 Rs.�00.28lacs (�9�84.85)THB’000

(b)Forthepreviousfinancialyear Rs.276.06lacs (9�60.9�)THB’000

D. Profitdealtwithorlossesprovidedforinthe AccountsoftheHoldingCompany

(a) Forthefinancialyearended3�stMarch,2009 Nil Nil

(b)Forallpreviousfinancialyears Nil Nil




Mumbai:June2,2009

68

ABRIDGED ACCOUNTS OF SUBSIDIARY COMPANIES

SNL BEARINGS LIMITED

ABRIDGED BALANCE SHEET AS ON 31ST MARCH

2009 2008Liabilities

Capital 1361.15 �36�.�5

Reserves&Surplus 15.03 �5.03

Loanfunds 423.46 7�7.93

Otherliabilitiesandprovisions 299.64 200.05 Total 2099.28 2294.�6

Assets

Fixedassets(net) 364.81 385.60

Currentassets 908.65 982.45

Profit&lossaccount 825.82 926.�� Total 2099.28 2294.�6

ABRIDGED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH

2009 2008Income

Sales(Net) 1239.99 �555.84Otherincome 22.64 44.69Stocksincrease/(decrease) 144.93 (9.�7) Total 1407.56 �59�.36

Expenditure

Materialsconsumed 515.58 52�.33Operatingexpenses 119.50 �77.88Adm.&otherexps 502.54 445.66Depreciation 44.46 74.24Interest 71.65 94.�6 Total 1253.73 �3�3.27

Profit/(Loss)beforetax 153.83 278.09Provisionfortaxation 53.54 2.03Profit/(Loss)aftertax 100.29 276.06

ABRIDGED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH

2009 2008IncomeSales(Net) 57.06 -Otherincome 4.40 52.40Stocksincrease/(decrease) - - Total 61.46 52.40

Expenditure

Materialsconsumed 493.71 -Operatingexpenses 339.72 -

Adm.&otherexps 13349.15 7640.29Depreciation 3333.98 �529.54Interest 1729.75 43.48 Total 19246.31 92�3.3�

Profit/(Loss)beforetax (19184.85) (9�60.9�)Provisionfortaxation - -Profit/(Loss)aftertax (19184.85) (9�60.9�)

NRB BEARINGS (THAILAND) LTD.

ABRIDGED BALANCE SHEET AS ON 31ST MARCH

2009 2008Liabilities

Capital 50000.00 50000.00

Reserves&Surplus - -

Loanfunds 75373.38 6587.98

Otherliabilitiesandprovisions 1502.53 5�6.82 Total 126875.91 57�05.80

Assets

Fixedassets(net) 91475.52 46�96.72

Currentassets 6346.32 �038.85

Profit&lossaccount 29054.07 9869.23 Total 126875.91 57�04.80

Rs. Lacs

THB’000

69

AUDITORS’ REPORT TO THE BOARD OF DIRECTORS ON THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2009

�. WehaveauditedtheattachedconsolidatedbalancesheetofNRBBearingsLimited,theparentcompany,anditssubsidiaries[collectivelyreferredtoas̀ thegroup’]asat3�stMarch,2009,andalsotheconsolidatedprofitandlossaccountandtheconsolidatedcashflowstatementfortheyearendedonthatdate,bothannexedthereto.Thesefinancialstatementsaretheresponsibilityoftheparentcompany’smanagementandhavebeenpreparedbythemanagementonthebasisofseparatefinancialstatementsoftheparentcompanyanditscomponents.Ourresponsibilityistoexpressanopinionontheseconsolidatedfinancialstatementsbasedonouraudit.

2. Weconductedouraudit inaccordancewiththeauditingstandardsgenerallyaccepted in India.Thesestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreeofmaterialmisstatement.Anauditincludes,examiningonatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements.Anauditalsoincludesassessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallfinancialstatementpresentation.Webelievethatourauditprovidesareasonablebasisforouropinion.

3. WedidnotauditthefinancialstatementsofasubsidiarywhosefinancialstatementsreflecttotalassetsofRs.�400.96lacsasat3�stMarch,2009,totalrevenueofRs.0.83lacandnetcashinflowsofRs.5.85lacsandofajointventurewhosefinancialstatementsreflectthegroup’sshareoftotalassetsofRs.�9.54lacsason3�stDecember,2008,totalrevenueofRs.�5.9�lacsandnetcashinflowsofRs.�5.65lacsfortheperiod�5thFebruary,2008to3�stDecember,2008asconsideredintheConsolidatedAccounts.Thesefinancialstatementsandotherfinancialinformationhavebeenauditedbyotherauditorswhosereportshavebeenfurnishedtousbythemanagement,andouropinionisbasedsolelyonthereportoftheotherauditors.

4. We report that the consolidated financial statements have been prepared by the parent company’smanagement inaccordancewith the requirementsofAccountingStandard2� ‘ConsolidatedFinancialStatements’andAccountingStandard27‘FinancialReportingofInterestsinJointVentures’asnotifiedundertheCompanies(AccountingStandards)Rules,2006.

5. Attention is invited to footnote under note 11 of Schedule 20 regarding managerial remuneration of Rs. 44.26 lacs paid during the year in respect of parent company, in excess of specified limits, pending approval of the members and Central government.

6. Subject to the matter referred in paragraph 5 aboveandonthebasisoftheinformationandexplanationsgiventousandontheconsiderationoftheseparateauditreportsonindividualauditedfinancialstatementsofNRBBearingsLimitedanditscomponents,weareoftheopinionthatthesaidconsolidatedfinancialstatementsgiveatrueandfairviewinconformitywiththeaccountingprinciplesgenerallyacceptedinIndia:

(i) inthecaseoftheconsolidatedbalancesheet,ofstateofaffairsofthegroupasat3�stMarch,2009;

(ii) inthecaseoftheconsolidatedprofitandlossaccount,oftheprofitfortheyearendedonthatdate;and

(iii) inthecaseofconsolidatedcashflowstatement,ofthecashflowsfortheyearendedonthatdate.

For A. F. FERGUSON & CO. CharteredAccountants


70

NRB BEARINGS LIMITED - CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2009 Schedule As at Asat No. 31.03.2009 3�.03.2008 Rs.lacs Rs.lacs Rs.lacs Rs.lacs I. SOURCES OF FUNDS: �) Shareholders’funds: a) Sharecapital � 969.23 969.23 b) Reservesandsurplus 2 15628.04 �6359.82 Minorityinterest (i) Sharecapital 112.74 ��2.74 (ii) Reservesandsurplus -Broughtforwardbalance (284.44) (370.6�) -Transferredfromprofit& lossaccount 31.31 86.�7 (253.13) (284.44)

Adjustedagainstmajorityinterest (140.39) (�7�.70) 15487.65 �6�88.�2 16456.88 �7�57.35 2) Loanfunds: a) Securedloans 3 7492.22 4490.74 b) Unsecuredloans 4 6669.32 6425.73 14161.54 �09�6.47 3) Deferredtaxliability(net) (seeNote�0onSchedule20) 1255.85 ��93.37 Total 31874.27 29267.�9 II. APPLICATION OF FUNDS: �) Fixedassets: 5 a) Grossblock 37068.05 33969.56 b) Less:depreciation 19466.26 �7449.24 c) Netblock 17601.79 �6520.32 d) Capitalworkinprogressand advances for capital expenditureadvancesfor capital expenditureforcapitalexpenditure 152.49 464.56 17757.28 �6984.88 2) Investments 6 7.09 7.09 3) Currentassets,loansandadvances: a) Inventories 7 9561.48 87�2.57 b) Sundrydebtors 8 7426.88 8684.48 c) Cashandbankbalances 9 451.87 6�6.39 d) Loansandadvances �0 1568.18 �697.�5 19008.41 �97�0.59 Less:Currentliabilitiesandprovisions: a) Currentliabilities �� 3644.14 5754.42 b) Provisions �2 1251.37 �680.95 4895.51 7435.37 Netcurrentassets 14112.90 �2275.22 Total 31874.27 29267.�9 Significantaccountingpolicies �9 Notestotheconsolidatedaccounts 20Perourreportattached ForandonbehalfoftheBoardofDirectors


H. S. Zaveri K. M. Elavia A. C. KHANNA S. C. Rangani D. S. SahneyPartner Sr.VPFinance&Co.Secretary DirectorsMumbai::June2,2009 Mumbai:June2,2009

7�

NRB BEARINGS LIMITED - CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2009 Schedule Year ended Yearended No. 31.03.2009 3�.03.2008 Rs.lacs Rs.lacs Rs.lacs Rs.lacs INCOMESales(Gross) 32859.32 3779.�0Less:Exciseduty 3426.30 4934.89 29433.02 32859.2�Otherincome �3 569.66 727.6� 30002.68 33586.82Increase/(Decrease)instockofwork-in-progressandfinishedgoods �4 1253.65 856.53 31256.33 34443.35 EXPENDITURERawmaterials,componentsand packingmaterialsconsumed 10428.69 �0�85.33Storesandsparesconsumed 3436.18 329�.23Processingcharges 1676.34 �953.57Powerandfuel 1469.18 �440.77Employeecosts �5 5964.64 5797.35Repairs �6 520.48 624.34Otherexpenses �7 3929.18 3330.�6Depreciation 5 2019.64 �883.85Interest(net) �8 972.47 637.84 30416.80 29�44.44 PROFIT BEFORE TAX 839.53 5298.9�Provisionfortaxation-Currenttax 322.53 �650.00-Inrespectofearlieryears 11.35 --Deferredtax 129.69 97.37 463.57 �747.37-Fringebenefittax 82.27 87.03 545.84 �834.40

PROFIT AFTER TAX 293.69 3464.5�Parentcompany’sshare 262.38 3378.34Minority 31.31 86.�7Add:Balancebroughtforward 1775.75 93.27 AVAILABLE FOR APPROPRIATIONS 2038.13 347�.6�LESS:APPROPRIATIONS: Proposedfinaldividend 775.38 ��63.07 Additionalincome-taxondistributedprofits 132.40 �97.66 Transfertogeneralreserve 50.48 335.�3 958.26 �695.86BALANCE CARRIED TO CONSOLIDATED BALANCE SHEET 1079.87 �775.75 Significantaccountingpolicies �9Notestotheconsolidatedaccounts 20Basic,aswellasdiluted,earningsperequityshare(Nominalvalueperequityshare:Rs.2)[seeNote9onSchedule20] Rs.0.61 Rs.7.�5

Perourreportattachedtotheconsolidatedbalancesheet ForandonbehalfoftheBoardofDirectors


H. S. Zaveri K. M. Elavia A. C. KHANNA S. C. Rangani D. S. SahneyPartner Sr.VPFinance&Co.Secretary DirectorsMumbai:June2,2009 Mumbai:June2,2009

72

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2009

Year ended Yearended 31.03.2009 3�.03.2008 Rs.lacs Rs.lacs Rs.lacs Rs.lacsA. CASHFLOWFROMOPERATINGACTIVITIES:

NETPROFITBEFORETAX 839.53 5298.9�

Adjustmentsfor: Depreciation 2019.64 �883.85 Foreignexchangeloss/(gain)unrealised 404.54 (235.88) Interestexpenditure(net) 972.47 637.84 Dividendincome (1.24) (8.�8) Profitonsaleoffixedassets(net) (0.10) (2.�4) Profitonsaleofcurrentinvestments - (3.50) Provisionforcompensatedabsences 28.55 5.46 Provisionfordoubtfuldebts 120.70 ��4.57 Foreigncurrencytranslation 44.28 29.55 3588.84 242�.57 4428.37 7720.48 OPERATINGPROFITBEFOREWORKINGCAPITALCHANGES ANDOTHERADJUSTMENTS Changesin: -Tradeandotherreceivables 1716.33 (�460.92) -Inventories (848.91) (�399.24) -Tradepayables (2089.97) �685.79 (1222.55) (��74.37) NETCASHGENERATEDFROMOPERATIONS 3205.82 6546.�� Directtaxespaid(netofrefund) (768.85) (�59�.82) NETCASHFROMOPERATINGACTIVITIES 2436.97 4954.29 B. CASHFLOWFROMINVESTINGACTIVITIES: Purchaseoffixedassets(includingadjustments onaccountofcapitaladvances) (2234.29) (5548.58) Saleoffixedassets 0.50 8.09 Purchaseofinvestments - (2853.39) Saleofinvestments - 2856.89 Dividendincome 1.24 8.�8 NETCASHUSEDININVESTINGACTIVITIES (2232.55) (5528.8�)

C. CASHFLOWFROMFINANCINGACTIVITIES:

Proceedsfromborrowings 7102.63 �6457.78 Repaymentofborrowings (9425.41) (�37�3.78) Increase/(Decrease)incashcredit 4305.92 (7�9.70) Interestpaid (992.64) (653.52) Dividendpaid (1161.78) (630.07) AdditionalIncometaxondistributedprofits (197.66) (�07.07) NETCASHFROM/(USEDIN)FINANCINGACTIVITIES (368.94) 633.64 NETINCREASE/(DECREASE)INCASHANDCASH EQUIVALENTS(A+B+C) (164.52) 59.�2

73

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2009 (contd.)

Year ended Yearended 31.03.2009 3�.03.2008 Rs.lacs Rs.lacs Rs.lacs Rs.lacs CASHANDCASHEQUIVALENTSASAT THECOMMENCEMENTOFTHEYEAR

thecomponentsbeing:

Cashonhand 8.24 6.�4


Balanceswithbanksoncurrentaccounts 330.00 �36.08

Remittanceintransit 3.11 �8�.58 616.39 557.27

CASHANDCASHEQUIVALENTSASAT THEENDOFTHEYEAR

thecomponentsbeing:

Cashonhand 5.58 8.24


Balanceswithbanksoncurrentaccounts 145.33 330.00

Balanceswithbanksonfixeddepositaccount 13.50 3.�� 451.87 6�6.39 NETINCREASE/(DECREASE)ASDISCLOSEDABOVE (164.52) 59.�2 Notes: �. Figuresinbracketsrepresentdeductions/outflows. 2. Previousyear’sfigureshavebeenregroupedwherevernecessary. Perourreportattachedtotheconsolidatedbalancesheet



H. S. Zaveri K. M. ElaviaA.C. KHANNA Partner S. C. Rangani D. S. Sahney Sr.VPFinance&Co.Secretary Directors


74

SCHEDULES 1 TO 12 ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2009

As at Asat 31.03.2009 3�.03.2008 Rs.lacs Rs.lacsSchedule 1 - Share capital

Authorised:

5,00,00,000EquitysharesofRs.2each

1000.00 �000.00 Issuedandsubscribed:

48,46�,300EquitysharesofRs.2eachfullypaid-up 969.23 969.23

Oftheabove:

i) 45,500EquitysharesofRs.2eachhavebeenallottedas fullypaid-uppursuanttocontractswithoutpayments havingbeenreceivedincash.

ii) 4�,563,300 Equity shares of Rs. 2 each have been allottedas fullypaid-upbywayofbonussharesby capitalisationofgeneralreserveandcapitalreserve.

iii) 38,000EquitysharesofRs.2eachareallottedtothe members of erstwhile Sahney Steel and Press WorksLimitedonitsamalgamationwiththecompany on0�.04.�99�. Perconsolidatedbalancesheet 969.23 969.23 Schedule 2 - Reserves and surplus

Capitalreserve:

Perlastbalancesheet 25.00 25.00

Capitalreservearisingonconsolidation:

Perlastbalancesheet 20.13 20.�3

Sharepremium:

Perlastbalancesheet 1214.94 �2�4.94

Generalreserve:

Perlastbalancesheet 13281.37 �2946.24

Less:Exchangedifferencesadjustedtocostoffixedassets (130.66) -(netofdeferredtaxRs.67.2�lacs) (Seenote4(b)ofschedule20)

Add:Transferredfromconsolidatedprofitandlossaccount 50.48 335.�3 13201.19 �328�.37

Foreigncurrencytranslationreserve: Perlastbalancesheet 42.63 �3.08Add:Fortheyear 44.28 29.55 86.91 42.63

Surplusbeingbalanceinconsolidatedprofitandlossaccount 1079.87 �775.75 Perconsolidatedbalancesheet 15628.04 �6359.82

75

As at Asat 31.03.2009 3�.03.2008 Rs.lacs Rs.lacsSchedule 3 - Secured loans

FromBanks:

i) Cashcredits 4441.14 �29.40

ii) TermloaninForeignCurrency 3043.18 4296.�6

iii) Termloan 7.90 65.�8 Perconsolidatedbalancesheet 7492.22 4490.74

�. Cash Credit taken from banks (i) are secured byhypothecationofallcurrentassets.Further,loantakenby the subsidiary is guaranteed by the parentcompany.

2. Term Loans in Foreign currency (ii) are secured byhypothecationof/chargeonthecompany’sfixedassetsacquiredfromproceedsoftheloan.

3. TermLoan(iii)issecuredbyhypothecationof/chargeon company’s vehicles specifically purchased undertheloan.

Schedule 4 - Unsecured loans

a. Temporaryoverdraftfromabank - 5.20

b. Shorttermloansfrombanks 2555.49 3000.00

c. Shorttermloanfrombankinforeigncurrency 2658.40 2022.94

d. Otherloansandadvances InterestfreeSalestaxloan 1455.43 �397.59

Perconsolidatedbalancesheet 6669.32 6425.73

Shorttermloanfrombankstakenbythesubsidiaryisguaranteedbytheparentcompany.

SCHEDULES 1 TO 12 ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2009 (contd.)

76

Schedule 5 - Fixed Assets

GROSS BLOCK - AT COST DEPRECIATION NET BLOCK

Description Opening Balance

As at 01.04.08

Additions Foreign currency

translation reserve

On deduc-

tions

Closing Balance

As at 31.03.09

Opening Balance

As at 01.04.08

For the year

Foreign currency

translation reserve

On On deduc-

tions

Closing Balance

As at 31.03.09

As at 31.03.09

As at 31.03.08

Rs.lacs Rs.lacs Rs.lacs Rs.lacs Rs.lacs Rs.lacs Rs.lacs Rs.lacs Rs.lacs Rs.lacs Rs.lacs Rs.lacs

A.Tangible AssetsFreehold landLeasehold landBuildings and flatsPlant and machineryFurniture, fixturesand equipmentElectrical installationsVehicles

193.78

47.463589.36

27368.901334.63

831.54445.75

-

130.59461.03

2104.00134.61

106.49

2.39

16.67

- 51.3032.65

4.02

4.39 -

- - -

7.88 -

- -

210.45178.05

4101.6929497.671473.26

942.42448.14

-

4.57904.02

15000.86848.23

409.00172.01

-

3.42134.33

1680.4780.95

43.7637.20

-

- 3.110.450.69

0.56 -

- - -

7.48 -

- -

-

7.991041.46

16674.30929.87

453.32209.21

210.45170.06

3060.2312823.37

543.39

489.10238.93

193.7842.89

2685.3412368.04

486.40

422.54273.74

Sub Total (A) 33811.42 2939.11 109.03 7.88 36851.68 17338.69 1980.13 4.81 7.48 19316.15 17535.54 16472.73

B. Intangible AssetsComputer software 158.14 57.74 0.49 - 216.37 110.55 39.51 0.05 - 150.11 66.26 47.59

Sub Total (B) 158.14 57.74 0.49 - 216.37 110.55 39.51 0.05 - 150.11 66.26 47.59

Total (A) + (B) 33969.56 2996.85 109.52 7.88 37068.05 17449.24 2019.64 4.86 7.48 19466.26 17601.79

16520.32Previous year 28650.11 5340.10 - 20.65 33969.56 15580.09 1883.85 - 14.70 17449.24

Capital Work in ProgressAdvances for capital expenditure

Per consolidated balance sheet

114.5737.92

218.01 246.55

152.49 464.56

17754.28 16984.88

Notes: Buildingsandflatsinclude:

a. SharesinrespectofresidentialpremisesofacostofRs.2.25lacsinaco-operativesocietywhichisintheprocessofbeingtransferredinthenameofthecompany.

b. CostofsharesofanaggregatefacevalueofRs.�000inco-operativehousingsocietiesviz.5sharesofRs.50eachinVileParleVatikaCo-operativeHousingSocietyLimited,5sharesofRs.50eachinEdenwoodsCypressHouseCo-operativeHousingSocietyLimited,5sharesofRs.50eachinTheGaneshVillaCo-operativeHousingSocietyLimitedand5sharesofRs. 50each inVinayakBhavanCo-operativeHousingSocietyLimited.


77

As at Asat 31.03.2009 3�.03.2008 Rs.lacs Rs.lacsSchedule 6 - InvestmentsI. Longterm(atcost)A. Non-trade(unquoted) �. Shares 1.00 �.00 2. Mutualfund 5.00 5.00 6.00 6.00B. Trade(quoted) Shares 1.09 �.09 Perconsolidatedbalancesheet 7.09 7.09

Aggregateamountofquotedinvestments[marketvalueRs.70.96lacs 1.09 �.09(asat3�.03.2008:Rs.5�.36lacs)]Aggregateamountofunquotedinvestments 6.00 6.00 7.09 7.09

Schedule 7 - Inventories(atlowerofcostandnetrealisablevalue, ascertifiedbytheManagingDirector) Storesandspareparts 577.85 583.87 Stock-in-trade Rawmaterials,boughtoutcomponents andpackingmaterials 1965.34 2364.06 Manufacturedcomponents 709.62 605.3� Work-in-progress 1776.59 �924.6� Finishedgoods 4532.08 8983.63 3234.72 8�28.70 Perconsolidatedbalancesheet 9561.48 87�2.57

Schedule 8 - Sundry debtors Oversixmonths Secured,consideredgood 2.70 4.50 Unsecured,consideredgood 1163.80 479.60 Unsecured,considereddoubtful 427.97 307.27 1594.47 79�.37OthersSecured,consideredgood 40.33 37.8� Unsecured,consideredgood 6220.05 8�62.57 6260.38 8200.38 7854.85 899�.75Provisionfordoubtfuldebts 427.97 307.27 Perconsolidatedbalancesheet 7426.88 8684.48


78

As at Asat 31.03.2009 3�.03.2008 Rs.lacs Rs.lacsSchedule 9 - Cash and bank balancesCashonhand 5.58 8.24Chequesonhand 287.46 275.04Withbanks: Oncurrentaccounts 145.33 330.00 Onfixeddepositaccount 13.50 3.�� Perconsolidatedbalancesheet 451.87 6�6.39

Schedule 10 - Loans and advances(Unsecured,consideredgood)Advancesrecoverableincashorin kindorforvaluetobereceived 983.36 �2�9.0�Incometaxespaidlessprovisionsthereagainst(otherthandeferredtax) 399.33 6�.8�Fringebenefittaxpaidlessprovisionsthereagainst 10.00 -Balancewithcentralexcise 175.49 4�6.33 Perconsolidatedbalancesheet 1568.18 �697.�5

Schedule 11 - Current liabilities

Sundrycreditors -duetomicroenterprisesandsmallenterprises - - (seenote5) -duetoothers 3480.19 5��3.70 3480.19 5��3.70Securitydeposits 94.33 575.65LiabilitytowardsInvestorsEducationandProtection FundunderSection205CoftheCompaniesAct,�956 -unpaiddividends(notdue) 13.30 �2.0� -unclaimedfixeddeposits - �.72Interestaccruedbutnotdueonloans 31.17 5�.34BookOverdraft 25.15 - Perconsolidatedbalancesheet 3644.14 5754.42 Schedule 12 - Provisions

Taxationlesspaymentsthereagainst 57.97 62.95(otherthandeferredtax)

Fringebenefittax(netofpayments) 8.50 8.70

Proposeddividend 775.38 ��63.07

Additionalincome-taxondistributedprofits 132.40 �97.66

Gratuity 1.00 �.00

Compensatedabsences 276.12 247.57 Perconsolidatedbalancesheet 1251.37 �680.95

SCHEDULES 1 TO 12 ANNEXED TO AND FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2009

79

Year ended Yearended 31.03.2009 3�.03.2008 Rs.lacs Rs.lacsSchedule 13 - Other income

Saleofscrap 423.05 380.�3

Agencycommission 59.12 95.98

Dividendfrominvestments

Trade-Longterm 1.24 �.29

Otherthantrade-Longterm - 3.50 1.24 4.79

Otherthantrade-Current - 3.39 1.24 �8.�8Profitonsaleofcurrentinvestments(net) - 3.50

Profitonsaleoffixedassets(net) 0.10 2.�4

Rent 74.65 74.65

Foreignexchangegain(net) - �45.37

Miscellaneous 15.08 �7.66 Perconsolidatedprofitandlossaccount 569.66 727.6�

Schedule 14 - Increase/(Decrease) in stock of work-in-progress and finished goods Openingstocks: Manufacturedcomponents 605.31 626.33

Work-in-progress 1924.61 �775.94

Finishedgoods 3234.72 2505.84 5764.64 4908.��Closingstocks:

Manufacturedcomponents 709.62 605.3�

Work-in-progress 1776.59 �924.6�

Finishedgoods 4532.08 3234.72 7018.29 5764.64 Perconsolidatedprofitandlossaccount 1253.65 856.53

SCHEDULES 13 TO 18 ANNEXED TO AND FORMING PART OF THE CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2009

80

Year ended Yearended 31.03.2009 3�.03.2008 Rs.lacs Rs.lacsSchedule 15 - Employee costsSalaries,wagesandbonus 4741.19 4546.23Gratuity 231.16 �45.82Company’scontributiontoprovidentfund andotherfunds 375.19 379.�7Staffwelfare 617.10 726.�3 Perconsolidatedprofitandlossaccount 5964.64 5797.35

Schedule 16 - RepairsPlantandmachinery 240.04 342.53Buildings 188.58 �56.88Others 91.86 �24.93 Perconsolidatedprofitandlossaccount 520.48 624.34

Schedule 17 - Other expensesInsurance 64.49 75.43Rent 20.90 20.39Ratesandtaxes 76.48 ��8.99Legalandprofessionalfees 232.73 226.69Directors’fees 3.17 3.55Commissiononsales 155.95 �46.20Travellingandconveyance 475.40 505.82Postage,telephoneandfax 97.74 �0�.73Bankcharges 89.69 50.84Cashdiscountonsales 25.42 36.33Advertisementandpublicity 82.70 77.98Forwardingcharges 651.16 5��.20Turnoverrebate 231.36 207.99Baddebtswrittenoff - 3.62 -Less:Provisionthereagainst - - 3.62 -

Provisionfordoubtfuldebts �20.70 ��8.�9Leaserent 48.85 48.04ITexpenses 93.02 69.33Excisedutyonincreaseinstockoffinishedgoods (92.�7) ��5.58Foreignexchangeloss 984.58 -Miscellaneous 567.0� 895.88 Perconsolidatedprofitandlossaccount 3929.18 3330.�6

Schedule 18 - Interest Onfixedloans 692.24 572.20Onothers 280.23 65.64 Perconsolidatedprofitandlossaccount 972.47 637.84

SCHEDULES 13 TO 18 ANNEXED TO AND FORMING PART OF THE CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2009 (contd.)

8�

Schedule 19 - Significant accounting policies annexed to and forming part of the consolidated balance sheet as at 31st March, 2009 and the consolidated profit and loss account for the year ended on that date

�. Basis of preparation

TheconsolidatedfinancialstatementsarepreparedunderhistoricalcostconventiononanaccrualbasisandareinaccordancewithAccountingStandard2�–“ConsolidatedFinancialStatements”andAccountingStandard27–“FinancialReportingofInterestsinJointVentures”.

2. Fixed assets and depreciation

(a) Allfixedassetsarestatedatcostofacquisition,includinganyattributablecostforbringingtheassettoitsworkingconditionforitsintendeduselessaccumulateddepreciation.

(b) Depreciationfortheyearhasbeenprovidedonthestraightlinemethod,inthemannerandattheratesprescribedinScheduleXIVtotheCompaniesAct,�956,exceptthatleaseholdlandisamortizedovertheperiodoftheleaseandcomputersoftwareisamortizedoveraperiodof36months,expectinrespectofNRBBearings(Thailand)Limitedwheredepreciationfortheyearhasbeenprovidedonstraightlinemethodovertheestimatedusefullifeoftheassetsconcerned,whereprincipalannualratesusedare5%forbuildingsand20%forallotherassets.

(c) AlsoseeNote�0below.

3. Foreign currency transactions

(a) Transactions in foreigncurrenciesarerecordedat theexchangerateprevailingonthedateof thetransaction.Inrespectofmonetaryitemsdenominatedinforeigncurrencies,exchangedifferencesarisingoutofsettlementoronconversionattheclosingratearerecognizedintheconsolidatedprofitandlossaccount.Exchangedifferencesarisingonlongtermforeigncurrencymonetaryitemsrelatingtoacquisitionofdepreciablecapitalassets,areadjustedtothecarryingamountoffixedassets.(Seenote4bofSchedule20).

(b) Swap transactionsareenteredby thegroup tohedge itsexposureagainstmovements in foreignexchangeratesandinterestrates.

(c) Gains/lossesarisingonswaptransactionsarerecognizedintheprofitandlossaccount

4. Investments

Long-terminvestmentsarestatedatcostlessprovisionfordiminutioninthevalueofinvestments,ifany.Currentinvestmentsarestatedatlowerofcostandfairvalue.

5. Inventories

Storesandsparepartsandstock-in-tradecomprisingofrawmaterials,boughtoutcomponents&packingmaterials,manufacturedcomponents,work-in-progressandfinishedgoodsarevaluedatthelowerofcostandnetrealisablevalue.Materialcostsincludedinthevaluationofstock-in-tradearedeterminedonthebasisofweightedaveragemethod.Costsofconversionandothercostsaredeterminedonthebasisofstandardcostmethodadjustedforvariancesbetweenstandardcostsandactualcosts,unlesssuchcostsarespecificallyidentifiable,inwhichcasetheyareincludedinthevaluationatactuals.

6. Sales

(a) SalesarerecognizedinaccordancewithAccountingStandard9viz.whenthesellerhastransferredtothebuyer,thepropertyinthegoods,foraprice,orallsignificantriskandrewardsofownershiphavebeentransferredtothebuyerwithoutthesellerretaininganyeffectivecontroloverthegoods.

(b) Salesareinclusiveofexcisedutyandarenetofsalesreturns.

7. Employee benefits

(a) Shorttermemployeebenefitsarerecognisedasanexpenseattheundiscountedamountintheprofitandlossaccountoftheyearinwhichtherelatedserviceisrendered.

82

(b) Longtermbenefits:

(i) DefinedContributionPlans:

�. ProvidentandFamilyPensionFund

The eligible employees of the group are entitled to receive post employment benefits inrespectofprovidentandfamilypensionfund,inwhichbothemployeesandthegroupmakemonthly contributionsat a specifiedpercentageof theemployees’ eligible salary (currently�2%ofemployees’eligiblesalary).ThecontributionsaremadetotheRegionalProvidentFundCommissionerorProvidentFundTrustasapplicableand theCentralProvidentFundundertheStatePensionScheme.ProvidentFundandFamilyPensionFundareclassifiedasDefinedContributionPlansasthegrouphasnofurtherobligationsbeyondmakingthecontribution.

2. Superannuation

Theeligibleemployeesofthegroupareentitledtoreceivepostemploymentbenefitsinrespectofsuperannuationscheme,inwhichthegroupmakesquarterlycontributionsat�5%ofemployees’eligiblesalary.Thecontributionsaremadetoainsurancecompanyonbehalfofthetrustmanagedbythegroup.SuperannuationschemeisclassifiedasDefinedContributionPlanastheGrouphasnofurtherobligationsbeyondmakingthecontribution.

TheGroup’scontributionstoDefinedContributionPlansarechargedtoprofitandlossaccountasincurred.

(ii) DefinedBenefitPlans:

�. Gratuity

TheGrouphasanobligationtowardsgratuity,adefinedbenefitretirementplancoveringeligibleemployees.Theplanprovidesalumpsumpaymenttovestedemployeesatretirement,deathwhileinemploymentoronterminationofemploymentofanamountequivalentto�5dayssalarypayableforeachcompletedyearofservice.Vestingoccursuponcompletionoffiveyearsofservice.TheGrouphasarrangementswithinsurancecompaniesforfuturepaymentsofgratuitiesonbehalfofthetrustsestablishedforthispurpose.TheGroupaccountsforgratuitybenefitspayableinfuturebasedonanindependentactuarialvaluationasattheyearend.Actuarialgainsandlossesarerecognisedintheprofitandlossaccount.

2. Compensatedabsences

The Group provides for encashment of leave or leave with pay subject to certain rules.Theemployeesareentitledtoaccumulateleavesubjecttocertainlimitsforfutureencashment/availment.The liability isprovidedbasedonthenumberofdaysofunutilised leaveateachbalancesheetdateonthebasisofanindependentactuarialvaluation.Actuarialgainsandlossesarerecognisedintheprofitandlossaccount

8. Voluntary Retirement Compensation

VoluntaryRetirementCompensationisfullyexpensedintheyearinwhichtheliabilityisincurred.

9. Research and development expenditure

Capitalexpenditureonresearchanddevelopmentistreatedinthesamewayasotherfixedassets.Revenueexpenditureiswrittenoffintheyearinwhichitisincurred.

�0. Borrowing costs

Borrowingcoststhataredirectlyattributabletotheacquisitionorconstructionofqualifyingassetsarecapitalised.Aqualifyingassetisanassetthatnecessarilytakessubstantialperiodoftimetogetreadyforitsintendeduse.Otherborrowingcostsarerecognisedasanexpenseintheperiodinwhichtheyareincurred.

��. Taxation

Taxationexpensescomprisecurrenttax,deferredtaxandfringebenefittax.

(a) CurrenttaxistheamountoftaxpayableonthetaxableincomefortheyearasdeterminedinaccordancewiththeprovisionsoftheIncome-taxAct,�96�.

(b) Deferredtaxisrecognizedontimingdifferencesbetweentaxableincomeandaccountingincomethatoriginateinoneperiodandarecapableofreversalinoneormoresubsequentperiods.

(c) FringebenefittaxistheamountoftaxpayableonthevalueofbenefitsprovidedtoemployeesfortheyearasdeterminedinaccordancewiththeprovisionsoftheIncome-taxAct,�96�.

83

Schedule 20 - Notes annexed to and forming part of the consolidated balance sheet as at 31st March, 2009 and the consolidated profit and loss account for the year ended on that date

� a. Theseconsolidated financial statementscomprise theconsolidationof the financial statementsofNRBBearingsLimited,theparentcompanyandthefinancialstatementsofSNLBearingsLimited,asubsidiaryincorporatedinIndia(extentofshareholding–68.78%),NRBBearings(Thailand)Limited,asubsidiaryincorporatedinThailand(extentofshareholding–�00%)andSchneebergerIndiaPrivateLimited,ajointventureofthecompanyincorporatedinIndia(extentofshareholding–45%),togetherreferredtoas‘thegroup’.

b. Theconsolidatedfinancialstatementsinclude,inrespectofNRBBearings(Thailand)Limited,totalassetsofRs.�400.96lacsasat3�stMarch,2009(asat3�.03.08:Rs.604.47lacs)andtotalrevenuesofRs.0.83lac(fortheyearended3�.03.08:Rs.0.68lac)andnetcashinflowsofRs.5.85lacs(netcashoutflowsfortheyearended3�.03.08:Rs.�69.57lacs)fortheyearendedonthatdate,derivedfromtheauditedfinancialstatementsasprovidedbythemanagementofthesubsidiary.

c. Incaseoftheforeignsubsidiary,namely,NRBBearings(Thailand)Limited,revenueitemsareconvertedattheaverageexchangerateprevailingduringtheperiod.Allassetsandliabilitiesareconvertedattheexchangerateprevailingasattheendoftheyear.ExchangedifferencearisingonconsolidationisrecognizedasForeignCurrencyTranslationReserve.

As at Asat 31.03.2009 3�.03.2008 Rs. lacs Rs.lacs2. Contingent liabilities not provided for: a) Income-tax 60.25 27.63

b) Exciseduty/servicetaxmatters 14.70 �4.70

c) Salestax 52.70 52.70

d) Customsduty 158.87 �58.87

e) Bankguarantees 8.00 5.50

f) Billsdiscounted - ��3.72

g) Corporateguaranteesissued,infavourofBanksforoverdraftfacilitiesavailedbysubsidiarycompanies 1973.56 498.93

Thegroupisinfurtherappealinrespectofmattersstatedina)tod)above.

h) TheIndiansubsidiaryhadreceivedanOrderdated6thSeptember,2004fromtheEmployeesProvidentFundOrganisationraisingademandofRs.�6�.36lacsincludinginterestofRs.46.73lacsfordefaultinmakingpaymentofEmployeesProvidentFundandalliedduesfortheperiodApril,�986toFebruary,2003.TheIndiansubsidiaryhasbeenmakingcontributionstothe‘SNLOfficersProvidentFundTrust’and‘SNLEmployee’sProvidentFundTrust’,beingTrustsformedbytheIndiansubsidiaryinearlieryears;theseTrustshavenetassetsofRs.94.50lacsandRs.50.8�lacsrespectivelyasat3�stMarch,2008asreflectedintheirauditedbalancesheets.Aspertheorder,theexistenceofthesaidTrustsandtheactofswitchingoverfromEmployees’trusttotheOfficers’trustonsalaryexceedingthestatutorylimit fixed by the Employees Provident Fund and Miscellaneous Act,�952, have been consideredviolativeoftheAct.TheauthoritieshadattachedoneofthebankaccountsoftheIndiansubsidiaryandhadrecoveredanamountofRs.2.75lacsinanearlieryear.TheIndiansubsidiaryhascontestedtheabovedemandandonawritpetitionfiledbytheIndiansubsidiaryintheHighCourtofJharkhand,Ranchi,theHighCourthasdirectedtheauthoritiesnottotakecoercivestepstillthedisposalofthepetition.TheIndiansubsidiarydeniesalltheallegationsmadeagainstitsincetheIndiansubsidiary

84

hadmadethenecessaryapplicationstograntexemptiontotheTrustswhichwasneithergrantednorrejectedinspiteofseveralremindersfromtimetotime.Inviewofthefactsofthecase,thegroupdoesnotexpectanyliabilityinthisregard.

i)Providentfundandothermattersinrespectofworkers:Rs.5.05lacs(asat3�.03.2008:Rs.5.05lacs)

As at Asat 31.03.2009 3�.03.2008 Rs.lacs Rs.lacs

3. Estimatedamountofcontractsremainingtobeexecutedon 1542.17 934.3� capitalaccountandnotprovidedfor(netofadvances)

Year ended Year endedYearended 31.03.2009 3�.03.20083�.03.2008 Rs.lacs Rs.lacs

4. a) The amount of exchange differences (net):

i) (credited)/debitedtotheconsolidatedprofitandlossaccountis 984.58 (�43.89)

ii) addedto/(deductedfrom)carryingamountoffixedassetsis 555.14 -

b) Pursuant to the option available under the Companies (Accounting Standards)AmendmentRules,2009,issuedvidenotificationnoG.S.R.225(E) dated3�stMarch,2009, thegrouphas,witheffect from�stApril,2007, changed itsaccountingpolicywhereinexchangedifferencesarisingon long term foreign currency monetary items in so far as they relate to acquisitionofdepreciablecapitalassethasbeenaddedtoordeducted fromthecostoftheassetanddepreciatedoverthebalanceusefullifeof the asset. Until the previous year, such exchange differences were recognized as income or expenditure in the profit and loss account. Accordingly,exchangeloss(net)islowerbyRs.753.0�lacs,fixedassets ishigherbyRs.555.�4lacs,generalreserveislowerbyRs.�30.66lacs (net of deferred tax Rs. 67.2� lacs) and profit before tax is higher by Rs.753.0�lacs.

5. There are no amounts due to the suppliers covered under Micro, Small andMediumEnterprisesDevelopmentAct,2006; this information takes into accountonlythosesupplierswhohaverespondedtotheenquiriesmadeby the Group for this purpose. This has been relied upon by the auditors.

6. Expenditure on Research and Development:

a) chargedtotheprofitandlossaccount 251.11 200.4�

b) capitalizedtofixedassets 44.72 ��2.93

7. Related party disclosures

i) Names of related parties and nature of relationship where control exists

Mr.T.S.Sahney,ChairmanandManagingDirector– individualhaving substantialinterestinvotingpowerandthepowertodirectbyagreement,thefinancialandoperatingpoliciesoftheparentcompany.

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ii) Transactions with related parties

Name of the related party and description of relationship

Nature of transaction

Volume of transactions

Rs.lacs

Receivable As at

31.03.2009 Rs.lacs

Payable As at

31.03.2009Rs.lacs

Key management personnel -Mr.T.S.Sahney[alsotheindividualreferredin(i)above]

-Ms.H.S.Zaveri–Whole-timeDirector(alsodirectorinsubsidiarycompanies)

-Mr.D.S.Sahney-Whole-timeDirector(alsodirectorinsubsidiarycompanies)

Directorsofsubsidiarycompanies:

-Mr.M.N.Hoda

-Mr.S.C.Rangani

-Mr.J.S.Maini

-Mr.V.S.Iyer

-Mr.ASKohli

Remuneration

RemunerationandDirectorfees

Remuneration

Directorsfees

Remuneration

82.21

(�34.88)

73.01(92.27)

52.14(60.87)

0.15(0.�8)

0.10(0.�0)

0.15(0.20)

0.35(0.45)

20.52(�8.39)

-(-)

-

(74.�0)

New Indo Trading Co.afirmwheretheindividualreferredin(i)aboveisapartner

Servicechargespaid 4.20(4.20)

-(-)

-(�.4�)

Notes: i) Figuresinbracketsareinrespectofpreviousyear. ii) Noamountspertainingtorelatedpartieshavebeenprovidedforasdoubtfuldebts.Further,no

amountshavebeenwrittenofforwrittenbackduringtheyear. iii)Dividendpaidhasnotbeenconsideredbythegroupasatransactionfallingunderthepurview

ofAccountingStandard�8“RelatedPartyDisclosures”.

8. Thegrouphastakenfactorylandandcertainplantandmachineryonoperatinglease.Leaserentalschargedtotheprofitandlossaccountfortheyearended3�stMarch,2009aggregatedRs.48.85lacs(fortheyearended3�.03.2008:Rs.48.04lacs).Theminimumleasepaymentstobemadeinfutureasattheyearendareasfollows:

(Rs. In lacs) (i)Foraperiodnotlaterthanoneyear 33.29 (49.�4) (ii)Foraperiodlaterthanoneyearand 63.85 notlaterthanfiveyears (�02.56) (iii)Foraperiodlaterthanfiveyears - (-) Figuresinbracketsareinrespectofthepreviousyear

86

9.Values used in calculating Earnings Per Share Year ended Yearended 31.03.2009 3�.03.2008

(a)Numerator:Profitaftertax(Rs.inlacs) 293.69 3464.5�

(b)Denominator:NumberofEquityshares 484,61,300 484,6�,300

�0. Components of deferred tax: Rs.lacs

Natureoftimingdifference Deferredtaxasset/(liability)

Asat3�.03.2008

Credit/(Charge)fortheyear

Deferredtaxasset/(liability)

Asat3�.03.2009

(a) Deferred tax liabilityDepreciation (�468.64) (�00.03) (1568.67)

Sub–total (�468.64) (�00.03) (1568.67)

(b) Deferred tax assetProvisionfordoubtfuldebtsProvisionforcompensatedabsencesVoluntaryretirementcompensationPreliminaryExpensesCarryforwardbusinessloss*

�04.44

84.�54.26

-82.42

4�.039.70

(4.26)0.02

(8.94)

145.47 93.85

-0.02

73.48

Sub–total 275.27 37.55 312.82

Netamount ��93.37 62.48 1255.85

Add:Taxeffectofexchangedifferencespertainingtopreviousyearadjustedingeneralreserve[seenote4(b)]

67.2�

Netcharge �29.69

*recognisedtotheextentofbalanceindeferredtaxliabilityinrespectoftheIndiansubsidiarycompany

Year ended Yearended 31.03.2009 3�.03.2008 Rs. lacs Rs.lacs��. Directors’ remuneration* (Seenotbelow)

Whole-timedirectors Salary 123.72 �2�.59 Commission - 74.�0 Contributiontoprovidentfund 21.12 23.9� andotherfunds Otherperquisites 82.71 86.44 NonWhole-timedirectors 227.55 306.04 Directors’fees 3.17 3.55 Commission 1.50 5.00 *excludinggratuitycontributedandcompensatoryabsences 232.22 3�4.59 provided,onaglobalbasis

Note:Consequenttoinadequacyofprofitsfortheyear,remunerationpaidtoManagingDirectorandaWhole-timeDirector is inexcessof the limitspecified inSection�98of theCompaniesAct�956 readwithScheduleXIIIof theAct.TheexcessremunerationofRs.44.26lacsispendingapprovalofthemembersintheensuingAnnualGeneralMeeting.TheparentcompanywillsubsequentlymaketheapplicationtoCentralGovernmentinthisregard

87

Year ended Yearended 31.03.2009 3�.03.2008 Rs. lacs Rs.lacs�2. Details of Auditors’ remuneration: (excludingservicetax)

Auditfees 18.15 �5.93

Reportundersection44ABofthe Income-taxAct,�96� 2.60 2.60

Taxationmatters 3.98 �.55

Otherservices 15.80 9.50

Reimbursementofexpenses 0.58 0.25

�3. Asthegroup’sactivityfallswithinasinglesegmentviz.bearingsandthesalessubstantiallybeinginthedomesticmarket, thedisclosure requirementsofAccountingStandard�7 “SegmentReporting” isnotapplicable.

�4.Financial and Derivative Instruments

i) ForwardExchangeContractsenteredintobytheGroupthatareoutstandingasat3�stMarch,2009.

Currency Amount in foreign currency Buy/Sell Cross Currency

USD 14,05,000 (-)

Buy(-)

INR(-)

JPY 10,000,000 (-)

Buy(-)

INR(-)

JPY 18,247,932(-)

Buy(-)

USD(-)

EURO 25,000(-)

Buy(-)

USD(-)

These Forward Foreign Exchange Contracts are entered into for hedging purposes and not forspeculationpurposes.

ii) Swaptransactiontohedgeagainstfluctuationsinexchangerates:

No.ofcontracts : 2 (2)

PrincipalamountinUSDollars : 1,470,048 (�,500,000)

Equivalentrupeesatyearendrate : 702.07 lacs (694.80lacs)

PrincipalamountinYen : 413,243,475 (crosscurrencyhedgeinUSDollars) (4�3,243,475)

Equivalentdollarsatyearendrate : 3,880,220 (3,880,220)

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iii) Foreign currency exposures that have not been hedged by a derivative instrument or otherwise outstandingasat3�.03.2009:

a) Amountsreceivableinforeigncurrency:


Exportofgoods USD 599,745(�55,946)

304.07(62.�3)

EURO 2,491,920(�,597,396)

1667.91(�005.25)

CHF 5,985(-)

2.66(-)

GBP 22,313(9,777)

16.16(7.76)

b) Amountspayableinforeigncurrency:


Importofgoods YEN 47,013,938(�20,894,627)

248.33(483.34)

EURO 325,752(426,577)

210.98(268.66)

USD -(8�,933)

-(32.65)

CHF 34,776(�6,325)

15.36(6.53)

CapitalImports JPY -(��7,300,775)

-(468.97)

Loanspayable USD 5,667,556(�4,��3,005)

2874.58(5624.30)

Interestpayable USD -(77,666)

-(30.95)

JPY 4,687,200(938,879)

25.38(3.72)

Figuresinbracketsarethecorrespondingfiguresinrespectofthepreviousyear.

�5.Employee Benefits

�. DefinedContributionplans

ContributionstoDefinedContributionPlan,recognizedinthestatementofprofitandlossaccountunderemployeecost,inschedule�5fortheyearareasunder:

Year ended Yearended 31.03.2009 3�.03.2008 Rs.in lacs Rs.inlacs

i)Employer’sContributiontoProvidentFund 146.96 �37.68 ii)Employer’sContributiontoFamilyPensionFund 106.80 ��7.73 iii)Employer’sContributiontoSuperannuationFund 65.72 62.4�

89

2. DefinedBenefitplan

a) Gratuity – as per actuarial valuation as at the year end (based on Projected Unit BenefitMethod)

As at 31st March, 2009

Rs. In lacs

Asat3�stMarch,2008

Rs.Inlacs

i)Componentsofemployerexpensesa)CurrentServicecostb)Interestcostc)Expectedreturnonplanassetsd)ActuarialLosses/(Gains)e)AdjustmentonconsolidationrelatingtotheIndiansubsidiaryTotal expenses recognised in Profit and Loss Account

42.6267.27

(81.34)202.61

-231.16

38.5358.08

(6�.24)79.8030.65

�45.82

ii)ActualContributionandBenefitPaymentsforyeara)Actualbenefitpaymentsb)ActualContributions

63.99

255.67

66.0�

��4.23

iii)Netasset/(liability)recognisedinbalancesheeta)DefinedBenefitObligationb)Planassetsc) Net asset/(liability) recognised in balance sheetd)Experienceadjustmentarisingon:�)PlanLiabilities[Losses/(Gains)]2)PlanAssets[Losses/(Gains)]

(974.76)

966.64(8.12)

103.0399.57

(825.83)789.7�(36.�2)

73.925.88

iv)ChangeinDefinedBenefitObligations(DBO)duringtheyeara)PresentValueofDBOatbeginningofyearb)CurrentServicecostc)Interestcostd)ActuarialLosses/(Gains)e)BenefitspaidPresent Value of DBO at the end of year

825.8342.6267.27

103.03(63.99)974.76

72�.3�

38.5358.0873.92

(66.0�)825.83

v)ChangeinFairValueofAssetsduringtheyeara)Planassetsatbeginningofyearb)Expectedreturnonplanassetsc)Actuarial(Losses)/Gainsd)ActualGroupcontributionse)FairValueofbenefitspaidFair value of plan assets at the end of year

793.1981.34

(99.57)255.67(63.99)966.64

692.0055.37(5.88)

��4.23(66.0�)789.7�

vi)Contributionexpectedtobepaidnextyear 69.66 58.45

vii)ActuarialAssumptionsa)DiscountRateb)ExpectedrateofreturnonPlanassetsc)Salaryescalationd)MortalityTable

8.00%- 8.50%

8.00% 3% - 4%

LIC (1994-96) Ultimate

8.00%-8.50%8.00%

3%-4%LIC(�994-96)

Ultimate

viii)MajorCategoriesofplanassets-InsurerManagedFunds 100% �00%

Notes:

i) AccountingStandard�5 (Revised2005) “EmployeeBenefits” requires thedisclosureof theinformationmentionedunder2(a)(iii)aboverelatedto‘NetAsset/(Liability)recognizedinbalancesheet’forthepastfouryears;howevertheinformationisavailableonlyforpastoneyearsincethedateofimplementationoftheStandard.

90

ii) Theexpectedrateofreturnonplanassetsisbasedontheaveragelongtermrateofreturnexpectedoninvestmentsofthefundduringtheestimatedtermofobligation.

iii) Theassumptionoffuturesalaryincreases,consideredinactuarialvaluation,takeaccountofinflation,seniority,promotionandotherrelevantfactors.

b) CompensatedExpensesrecognizedinthestatementofprofitandlossaccountunderemployeecost,inschedule�5isRs.62.69lacs(fortheyearended3�.03.2008:Rs.40.94lacs.)

�6.TheparentcompanyhasenteredintoajointventureagreementwithSchneebergerHoldingAG,Switzerlandto act as its exclusive agent in India and has formed a joint venture company with effect from �5thFebruary,2008forwhichparentcompanyhascontributedtowardsitssharecapitalon�4thMay,2008.Theproportionateshareinassets,liabilities,income&expenditureofthejointventurecompanyason3�st,December2008isgivenbelow:

(RupeesinLacs)

NameofTheJointventurecompany

Percentageofholding

Assets Liabilities Income Expenditure

SchneebergerIndiaPrivateLimited(incorporatedinIndia)

45% �9.54 #7.79 �5.9� 8.56

Therearenocapitalcommitmentnorcontingentliabilities.#netafterdeductingshareholders’funds

�7.Previousyear’sfigureshavebeenregroupedwherevernecessary.

SignaturetoSchedule�to20



H. S. Zaveri K. M. ElaviaA. C. KHANNA Partner S. C. Rangani D. S. Sahney Sr.VPFinance&Co.Secretary Directors


9�

A D M I S S I O N S L I P

Iherebyrecordmypresenceatthe44thAnnualGeneralMeetingofmembersoftheCompanyheldatMCGhiaHall,KDubashMarg,Mumbai40000�on�2thAugust,2009at��.00a.m.

DPId* FolioNo.

ClientId* No.ofshares

NameofMember/Proxy..................................................................................................................................................................................... (whowillattendthemeeting)

SignatureofMember/Proxy...............................................................................................................................................................................(whowillattendthemeeting)

�. Pleasecompleteandhandovertheslipattheentrance.2. PleasequoteFOLIONUMBERclearly.

*Applicableforinvestorsholdingsharesinelectronicform

NRBBEARINGSLIMITEDRegistered Office:Dhannur,�5,SirP.M.Road,Fort,Mumbai-40000�.

P R O X Y F O R M

I/We....................................................................................................................................................................................................................

of........................................................................................................................................................................................................................

inthedistrictof............................................................................................. beingmember(s)ofNRBBEARINGSLIMITED,herebyappoint

Shri/Smt./Miss....................................................................................................................................................................................................

of........................................................................................................................................................................................................................

inthedistrictof...................................................................................................................................................................................................

orfailinghim/herShri/Smt./Miss........................................................................................................................................................................

of........................................................................................................................................................................................................................

inthedistrictof...................................................................................................................................................................................................

asmy/ourproxytoattendandvoteforme/usonmy/ourbehalfatthe44thAnnualGeneralMeetingofmembersoftheCompanyheldatMCGhiaHall,KDubashMarg,Mumbai40000�on�2thAugust,2009at��.00a.m

Name................................................................................... Signedon............................ at..........

DPId* FolioNo.

ClientId* No.ofshares

Address ............................................................................. Signature........................................

........................................................................

*Applicableforinvestorsholdingsharesinelectronicform

NRBBEARINGSLIMITEDRegistered Office:Dhannur,�5,SirP.M.Road,Fort,Mumbai-40000�.

Notes: �. TheproxyneedNOTbeamember. 2. THEPROXYFORM,DULYSIGNEDACROSSAREVENUESTAMPSHOULDREACHTHECOMPANY’SCORPORATEOFFICEATLEAST

48HOURSBEFORETHETIMEOFTHEMEETING. 3. Theproxyformshouldbefilledincompletelyincluding‘FolioNo.’and‘Address’.

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