Assignment-1

Himanshu Patel

Section – D, Roll No - 151419

AbstractTo read and analyze company’s (SRF Ltd.) annual reports and attempt the given problems to seek solution

To: Mr. Parag Rijwani

What is the company’s business? 2. What are its main products and services? Name some of the company’s brands, if any.

SRF Ltd. is a multi-business entity. It is engaged in the manufacture of chemical based intermediates. From the beginning the business was diversified in the different segment such as Technical Textiles, Chemicals, Packaging Films and Engineering Plastics.

SRF is market leaders in India in some of the business as well as it has also expanded its business over the globe.

Here is overview of its business.

Technical Textiles

SRF's product basket for technical textiles contains nylon tyre, cord fabrics, polyester tyre cord fabrics, belting fabrics, coated fabrics, laminated fabrics, fishnet twines and industrial yarns.

It has its own R & D center located in Manali. Apart from India manufacturing plants are also located in Thailand and South Africa.

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Chemicals

SRF’s Chemicals Business caters to diverse applications across industries. Starting with the refrigerant production facility in Bhiwadi near New Delhi in 1989, SRF has grown to become a highly backward integrated producer of refrigerants, chlorinated solvents and fluorospecialities.

As a proud winner of the 2012 Deming Prize, the Chemicals Business of SRF Ltd. caters to the exacting quality requirements of the Automobile, Refrigerator, Air-conditioner, Laundry, Pharmaceutical and Agrochemical industries amongst others.

Packaging Films Packaging Films Business has emerged as one of the most preferred

Packaging arena. Engaged in manufacturing of Bi-axially Oriented Poly-Ethylene Terephthalate (BOPET) Films commonly known as Polyester (PET) Films.During a span of ten years, Packaging Films Business has crafted a significant presence in EU, Americas, Middle East, ANZ, Russia & CIS, Africa, West Asia & South Asian regions and continues to expand its list of highly satisfied clientele across the world.

Engineering Plastics

Established in 1979, the Engineering Plastics Business of SRF enjoys the status of being the first company in India to start polymer compounding.Initially focused on manufacturing and compounding of Polyamide 6 resin, today the business offers several engineered compounds under brands TUFNYL, TUFBET, TUFPC.

Who are likely to be the company’s major suppliers?Since SRF are Multi-business entity, here is the list of most likely major suppliers.

In the Technical Textile Business, the common raw material required is mostly Cotton, Jute, Coir, Silk etc. For that IndarsenShamlal (p) Ltd., Excel Composites Pvt Ltd., NAT Fiber etc. are likely to be the major suppliers.

For its Chemical business Bhoruka Gases Ltd., Ekasila Chemicals Ltd., TATA Chemicals, etc. could be the major suppliers to the SRF. Though SRF has collaborated with Arkema(Previously known as Atofina) for its raw material supply.

For its Plastics business and Packaging Films Businessthe producers of raw Plastic manufactures are likely to be the major suppliers of SRF Ltd.

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Who are likely to be the company’s major customers? Does the company export its products? To which countries?

SRF Ltd is in major business of production of Technical Textile, Packaging Films, Chemicals mostly used for the refrigeration and Engineering Plastics. The major customers for the company could be all the business that are into Refrigerators or other Cooling tools manufacturing business, for its Plastic business serving markets as varied as Automobiles, Electrical & Electronics, Telecom, Railways, Consumer etc.

SRF ltd has also expand its serving market beyond India. EU, Americas, Middle East, Russia, Africa, West & Southern Asia are the areas where it serves.

Read the ‘Contents’ page. Mark the items that relate to financial statements as ‘FS’ (Financial Statement) and the rest as ‘NFS’ (Non-Financial Statement). What information does the company provide in items that you have marked as ‘NFS’? Is this information useful? How? Who is the intended audience? Will they be able to understand the information? Give highlights of ANY THREE major ‘NFS’ items.

Content page of SRF ltd. Annual Report.Contents

Chairman’s Message : NFSCompany Information : NFSNotice : NFSBoard’s Report : NFSManagement Discussion & Analysis : NFSCorporate Governance : NFSStandalone Financial Statements : FSConsolidated Financial Statements : FS

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When was the annual general meeting to be held? What were the items to be discussed?

The 44th Annual General Meeting of SRF Limited will be held on Thursday, the 6 August 2015 at 3.30 p.m. at the LaxmipatSinghania Auditorium, PHD House, 4/2 Siri Institutional Area, August Kranti Marg, New Delhi.

The following items were to be discussed in the Annual General Meeting.

Ordinary Business To receive, consider and adopt the standalone and consolidated audited financial

statements of the Company for the financial year ended 31 March 2015, the Reports of the Auditors’ and Board of Directors’ thereon.

To appoint a Director in place of Mr.Arun Bharat Ram (DIN 00694766), who retires by rotation and being eligible, offers himself for re-election.

To ratify appointment of auditors of the Company as approved by the members at the Forty Third Annual General Meeting.

Special Business

Appointment of DrMeenakshiGopinathas a Director, liable to retire by rotation.

DrMeenakshiGopinath ,who was appointed as an additional Director of the Company with effect from 28 October 2014 be and is hereby appointed as aDirector of the Company liable to retire by rotation.”

Appointment and Remuneration of DrMeenakshiGopinath)as Director of CSR.

Functions

DrMeenakshiGopinath shall be designated as Director(CSR). She shall be responsible for planning, guiding andensuring implementation of CSR projects of the Company inaccordance with the CSR Policy approved by the Board andsuch other responsibilities as may be entrusted to her by theChairman and/or the Board, from time to time.

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Fee

She will be entitled to consolidated fees of ` 1 lakh permonth (subject to deduction of applicable taxes) plus servicetax. She will also be entitled to a Company maintained car.

Sitting Fees

DrMeenakshiGopinath would be entitled to sitting feesfor attending the Board meetings and/or meetings ofother Committees on which she is nominated except theCorporate Social Responsibility Committee.

Termination The services of DrMeenakshiGopinath as Director (CSR) may be terminated by either

party giving to the other three calendar month’s notice in writing. “RESOLVED FURTHER THAT subject to the overalllimit of remuneration payable to all the Directors (other than Executive Directors) taken together, the aforesaid remuneration payable to DrMeenakshiGopinath shall be within an overall ceiling of 1% of the net profits of the Company computed in the manner laid down in Section 197 of the Companies Act, 2013.”

To consider and if thought fit, to pass with or withoutmodification(s), the following resolution as an OrdinaryResolution:

Re-appointment of Mr Ashish Bharat Ram (DIN– 00671567) as Managing Director:With tenure of Five years with effect from 23 May 2015.

Functions

Subject to the direction, control and superintendence ofthe Board of Directors, Mr. Ashish Bharat Ram shall havethe overall responsibility for looking after the day to daymanagement of the Company.

Remuneration

Subject to the overall limit on remuneration payable to allthe managerial personnel taken together, the remunerationpayable to Mr Ashish Bharat Ram shall comprise salary, perquisites and commission, as may be decided bythe Board/Nomination and Remuneration Committeein accordance with the Nomination, Appointment andRemuneration Policy within an overall ceiling of 5% of the netprofits of the Company, computed in the manner laid downin Section 198 of the Companies Act, 2013.

Remuneration for a part of the YearRemuneration for a part of the year shall be computed onpro-rata basis.

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Minimum Remuneration

In the event of absence or inadequacy of profits in anyfinancial year, the remuneration payable to Mr. Ashish BharatRam shall be decided by the Nomination and RemunerationCommittee.

Termination

The appointment of Mr. Ashish Bharat Ram as ManagingDirector may be terminated by either party giving to the otherthree calendar months notice in writing.

compensation in accordance with the provisions of theCompanies Act, 2013 or any statutory amendment or reenactment

To consider and if thought fit, to pass with or withoutmodification(s), the following resolution as a SpecialResolution:

Re-appointment of Mr.RavichandraKambhampatycompanies Act, 2013and the CompaniesForThree years with effect from 1 October 2015.

Minimum Remuneration

In the event of absence or inadequacy of profits in anyfinancial year, the remuneration payable to MrRavichandraKambhampaty shall be decided by the Nomination andRemuneration Committee subject to the provisions of theCompanies Act, 2013 and such approval, if any, as may berequired.

Termination

The appointment of MrRavichandraKambhampaty as Director(Safety & Environment) may be terminated by either partygiving to the other three calendar months’ notice in writing.

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Identify the company’s reporting entities.

Indian Subsidiaries∞ SRF Transnational Holdings Limited India∞ SRF Properties Limited India∞ SRF Holiday Home Limited India∞ SRF Energy Limited India∞ SRF Fluorochemicals Limited

Foreign Subsidiaries∞ SRF Fluor Private Limited^ Mauritius∞ SRF Global BV Netherlands∞ SRF Overseas Limited

Government BodyShare Holders

How is the information in the notes to the financial statements useful? Give five examples of how the notes explain the items in the financial statement.

1. The information consists in notes may or may not be related to financial reports of the company. But if there is any, it is useful in preparing financial reports.

For example, In notes it is given that the company has paid two interim dividends on share, 10 per share, 5 at each time amounting into INR 68.05 Crore (Inclusive of Taxes). This information is useful when we prepare Balance Sheet.

The financial statements of these foreign subsidiaries have been converted into Indian Rupees on the basis of following exchangerates:(I) 1 AED = ` 17.008(ii) 1 USD = ` 62.47(iii) 1 Baht = ` 1.92(iv) 1 Rand = ` 5.118

Above information is also useful in making Financial Statements of its Foreign Subsidiaries. Exchange Rate of Currency give the clarity at what rate the currencies were recorded.

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2. The following information is required for the amount spent towards CSR.Average Net Profit of SRF Ltd for last three financial years.

2013-14:` 272.22 crores2012-13:` 329.62 crores2011-12:` 554.74 croresAverage Net Profit:385.53 crores2% of Avg. Net Profit:771 lakh Prescribed CSR Expenditure - ` 771 lakh Details of CSR Spent during the Financial Yeara. Total Amount to be spent for the financial year - ` 771 lakhb. Amount Unspent - ` 329.05 lakhc. Manner in which the amount spent during the financial year:

3. DEPRECIATION AND AMORTISATION

Depreciable amount for assets is the cost of anasset, or other amount substituted for cost, less itsestimated residual value.

Depreciation on tangible fixed assets has beenprovided on the straight line method on the basisof useful life of assets determined by the Company.Manufacturerswarranties and maintenance support, etc. and are asUnder:

Roads - 40–50 yearsBuildings - 30–60 yearsPlant & Machinery - 2–30 yearsFurniture & Fixtures - 15 yearsOffice Equipment - 3–20 yearsVehicles - 4 years

Intangible assets are amortized over their estimateduseful life considering the terms of the businesspurchase agreements on straight line method asfollows:-Goodwill - 10 yearsTrademarks / Brand - 10–30 yearsTechnical Knowhow - 10–30 yearsSoftware - 3 yearsOther intangibles - 2.5–10 years

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Identify ANY THREE matters covered by the accounting policies/estimates and write their current year ending balances.

Fixed assets such as Plant & Machinery, Intangible assets such as Goodwill was covered under the accounting estimate.

Current Year 2014-15 Ending Balance ofo Life of Buildings is estimated to be 30-60 years;

Closing Balance as on 31st March, 2015 was 58479.85 Lakh INRo Life of Plant and Machinery is expected to be 2-30 years;

Closing Balance as on 31st march, 2015 was 388450.23 Lakh INRo Life of Vehicles was estimated at 4 years

Closing Balance as on 31t March, 2015 was 2784.02 Lakh INR

Who is/are responsible for the information in the financial statements? Write names(s).

Members of the Board of Directors are responsible for the information in the financial statements.

o Arun Bharat Ram – Chairmano Ashish Bharat Ram – Managing Directoro Kartik Bharat Ram – Deputy Managing Directoro Vinayak Chatterjee – Directoro Rajendra Prasad - President & Chief Financial Officero Anoop K Joshi - President & Company Secretary

Think of information that you think would be useful but not disclosed in the financial statements. Why do you think the information is not disclosed?Major suppliers of the company as well as major buyers of the company would be very

useful but not disclosed in the financial statements.

Who are the company’s auditors?Deloitte Haskins & Sells Chartered Accountants are the company’s auditors.

To whom is the auditor’s report addressed? Why?The auditor’s report is addressed to the members of SRF Limited.

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List the main items on which the auditor’s report. Give details of three items that significantly affect the financial statements.

The main items on which the auditor’s reporto Report on the Standalone Financial Statementso Management’s Responsibility for the Standalone

Financial Statementso Report on Other Legal and Regulatory

Requirementso Auditors’ Responsibilityo Emphasis of Matter

Here are three items that significantly affect the financial statements.Following are the instances of delay in transferringamounts, required to be transferred, to the InvestorEducation and Protection Fund by the Company –Refer Note 31 (b) to the financial statements:Nature of Amounts Amount (INR in

Lakhs)Date by which amount should have been credited to fund

Date of Deposit

Matured Unclaimed Fixed Deposits

0.15 20-12-2012 23-06-2014

Interest on Above 0.02 20-12-2012 23-06-2014

How much was the auditor’s remuneration? Give the detailed breakup of the same.The total auditor’s remuneration paid was 204.92 Lakhs INR. (Including fees paid to auditors of subsidiary companies)Detailed breakup of the auditor’s remunerationParticulars Amount (INR in Lakhs)Audit Fees 103.00For limited review of unaudited financial results

76.07

For corporate governance, Consolidated financial statements and other certifications

15.85

For tax audit 10.0Total 204.92

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Highlight the concerns raised by the auditors in their report. Give details of such items.Details of dues of Income-tax, Wealth Tax, Sales Tax, Value Added Tax, Service Tax,

Excise Duty, Customs Duty and Cesswhichhave not been deposited as on 31 March 2015 on account of disputes by the aforesaid entities are given below:

The following matters, which have been excluded from the above table, have been decided in favor of the aforesaid entities but theDepartment has preferred appeals at higher levels. The details are given below

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The Statement of Profit and Loss

What are the company’s major items of revenues? How these items have changed in percentage terms as compared to the previous financial year?

Major Items of Revenue Current Year Income (in lakh INR)

Previous Year Income

( in lakh INR)

% change on Previous Year

Sales of Product 357020.80 340210.26 4.95%Export incentives 1624.57 126.70 1182.22%o Dividend/Profit on

investmento Exchange currency

fluctuationo Interest Income

4735.64 2471.42 91.62%

State the revenue recognition policy of the company for sales revenue.

REVENUE RECOGNITIONSale of goods is recognized, net of returns and tradediscounts on the transfer of

significant risks and rewardsof ownership to the buyer which generally coincideswith the dispatch of goods to customers. Gross salesare inclusive of excise duty and net of value added tax /sales tax.

Other income includes interest income which isaccounted on accrual basis, dividend income isaccounted for when the right to receive is established.

Identify the sources of company’s gains and other non-operating income. What is the proportion of these items in relation to the total income and Net Profit after Tax?

Source of company’s gain areo Sales of Goods

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o Scrap saleso Export incentives

Non-operating income sourceo Dividend on current investmentso Profit on sale of current investmentso Profit on sale of investment in subsidiarieso Dividend on non-current investmentso Provision / Liabilities no longer required written backo Provision for long term investments no longer requiredo Profit on sale of fixed assetso Exchange currency fluctuationo Interest income

Locate any references to accounting principles related to revenues in the financial statements and related information. Write the details of the same.Revenue is recorded on the realization of the revenue. Accounting principle of Realization is considered here.

When does the company recognize revenue from services? Why?The company recognized revenue at the time of realization. Sale of goods is recognized, net of returns and tradeDiscounts. Because of the accounting principle of Realization.

When does the company recognize dividend income? Why?Dividend income is accounted for when the right to receive is established. Since the right to receive dividend is established, according to accounting principle of Realization it is recorded as an asset on the balance sheet.

What are the major items of expenses? How these items have changed in percentage terms as compared to the previous financial year?Major item of expenses are Cost of materials consumed, Employee benefit expense, other expenses such as Power and Fuel expense, Repairing and maintenance expense, Freight, Travel expense etc.

Identify the company’s losses and other non-operating expenses. What is the proportion of these items in relation to the total expenses and Net Profit after Tax?Company’s losses and other non-operating expenses are Loss on sale of Fixed assets, Bad debts written off, Corporate social Responsibility, Professional and Legal Expenses, Director’s sitting Fees, Provision for Investments, Auditor’s remuneration etc.

Total of abovementioned losses &expenses are 73228.03 Lakh INR while Net Profit after tax was 30773.05 Lakh INR.

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Losses & expenses other than operating expense proportion to the Net Profit after tax is (73228.03*100/30773.05) 238.16% that means it is 138.16% more.

What was the total amount spent on employees? What is the percentage change in this amount as compared to the previous year?The amount spent under Employee Benefit Expense is 26528.02 Lakh INR. It was 23272.27 Lakh INR last year. The percentage change in this amount as compared to previous year is 13.99%.

How much did the company spend on advertising, sales promotion and general marketing? What is the proportion of these items in relation to the total expenses, Net Profit after Tax and sales revenues?Company spent no amount on advertising, sales promotion and general marketing though as internal marketing firm spent amount of INR 754.52 Lakh as selling commission.

What is the absolute amount and proportion of finance costs to the total revenues? What is the change in this absolute amount and proportion as compared to the previous year?Total Financial cost during the year was 9955.51 Lakh INR compare to last year’s 7002.01 Lakh INR.

Identify the top three weighing expense-heads in relation to the sales revenues. What are the accounting policies pertaining to these three heads of expenses?Three heads are Cost of materials consumed, Raw Material Consumption, Employee benefits expenses.

EMPLOYEE BENEFITSCompany’s contributions paid / payable during theyear to provident fund administered

through RegionalProvident Fund Commissioner, Superannuation Fundand Employees’ State Insurance Corporation arerecognized in the Statement of Profit and Loss.

Provision for gratuity, compensated absences, providentfund for certain category of employees administeredthrough a recognized provident fund trust and long termretention pay are determined on an actuarial basis at theend of the year and charged to Statement of Profit andLoss for each year.

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INVENTORIESInventories are valued at cost or net realizable value,whichever is lower. The basis of

determining the cost forvarious categories of inventory are as follows:

Stores, spares and rawmaterials- Weighted averagerateStock in trade,Stock in process andfinished goods- Direct cost plusappropriate shareof overheads andexcise duty, whereverApplicableBy products - At estimatedrealizable value.

What is the percentage of depreciation/amortization expense in relation to the gross block value of the fixed assets and total expenses? What is the depreciation method and accounting estimates involved in charging depreciation in fixed assets?04.24% is the percentage depreciation/amortization expense in relation to the gross block value of the fixed assets and total expenses. Straight Line method is used for depreciation and accounting estimates involved in charging depreciation in fixed assets.

The Balance Sheet

List three assets having highest proportion in the total assets of the company. Write their percentage weight in the total assets.

Three assets are Fixed Assets, Inventories, and Trade Receivable.Particulars Total assets % in Total AssetFixed assets - 303179.17 486790.06 62.28%Inventories - 63758.78 486790.06 13.10%Trade receivable - 47854.84 486790.06 09.83%

How does the company measure its fixed assets? What is the amount of fixed assets purchased during the year? What is its proportion in the total assets? Is this proportion significant? Why?77370.91 lakh INR purchased of new assets were bought. Its proportion to the total assets (486790.06) is 15.89%.Of course the proportion is important as it shows the trends towards reinvestment in the assets for the company.

34. What is the amount of fixed assets sold/discarded during the year? What is its proportion in the total assets? Is this proportion significant? Why?

2 002.09 lakh INR amount of fixed assets were sold during the year. Its proportion to the fixed assets (303179.17 lakh INR) is 0.67%.This proportion is not much significant.

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What is amount of capital work in progress finished and transferred to the fixed assets during the year?

10411.61 L INR is amount of capital work in progress finished and transferred to the fixed assets during the year.

What is the proportion of Intangible assets in the total assets of the company? How does the company measure Intangible assets? Give two examples of the company’s intangible assets.Intangible assets of the company are Goodwill, Trademark, Software, etc. Proportion of intangible assets in the total assets were 14149.53 L INR.

What is the proportion of long term investments in the total assets? What is the change in this proportion as compared to the previous year?Total long term investments are 8364.51 L INR last year 9318.72

List three most significant investment venues. What is the book value and market value of these investments?ICICIprudential saving fund regular plan growth, Equity share of SRF Global BV, SBI Debt fund series.

Particulars Book value (in Lakh INR) Market value ( in Lakh INR)ICICI prudential saving fund 8000 9155.48SBI Debt fund series 1000Equity share of SRF global BV 7959.51

What is the proportion of Investments in Subsidiary Companies in the total investments? Is there any change in the amount of Investments in Subsidiary Companies in the current year as compared to the previous year?Total investments in Subsidiary Companies in total investments (Current + Non-current investment) is (8364.51*100/17786.66) 47.03%.

Last year total investments in subsidiary Companies was 9318.72 lakh INR compare to this year is 8364.51 lakh INR. So here there is decrease in the investments by 954.21 lakh INR.

What is the proportion of current assets in the total assets? What is the change in this proportion as compared to the previous year?Total current assets as on 31st March 2015 was 139852.23 lakh INR compare to Total assets of INR 486790.06 lakh.

So, the change in proportion of current

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Particulars Year ending on 31st March 2015(Amount in lakh INR) (A)

Year ending on 31st

March 2014 ( Amount in lakh INR) (B)

Change (A-B)

Current assets 139852.23 140922.08Total assets 486790.06 446519.94% 28.73% 31.56% -2.83%

Change in the proportion of current assets in the total assets is -2.83% compared to previous year.

What is the proportion of cash in the total assets? What is the change in this proportion as compared to the previous year? Is there any cash in transit? How much?

Particulars Year ending on 31st

March 2015 (Amount in lakh INR) (A)

Year ending on 31st

March 2014 (B)Change (A-B)

Cash 6515.79 7463.92Total assets 486790.06 446519.94% 1.34% 1.67% -0.33%

The proportion change in cash to the total assets compared to previous year, it is lower by 0.33% current year.

What percentage of the company’s receivables is due for more than six months? What is the change in this proportion as compared to the previous year?

Particulars As on 31st

March,2015As on 31st

March,2014Receivables > 6 Months

61065.42 69149.11

Total Assets 595396.23 551855.45Prop. Receivables to Total Assets

10.26% 12.53%

Proportion of the company’s receivables to the Total assets of the respective years over the year has gone down by approx. 2.2%.

What is the proportion of Inventories in the total assets? What is the change in this proportion as compared to the previous year?

Particulars As on 31st

March,2015 (A)As on 31st

March,2014(B)

Change (A-B)

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Inventories (X) 63758.78 63116.13Total Assets (Y) 486790.06 446519.94% (X*100/Y) 13.10% 14.14% -1.04

Proportion of Inventories in total assets over the year has not changed significantly though there was decrease of 1% approx.

How does company measure its Inventories? Is there any change in the inventory measurement as compared to the previous year? If yes, give details.Company measures Inventories at cost or net realizablevalue, whichever is lower. The

basis of determining the cost for various categories of inventory are as follows:

Stores, spares and raw materials - Weighted average rate Stock in trade, Stock in process and finished goods - Direct cost plus Appropriate share of overheads and excise duty, wherever applicable By

products - At estimated realizable value

What is the absolute amount and proportion in relation to sales revenues of raw materials consumed during the year? What is the change in such amount and proportion as compared to the previous year?

Particulars As on 31st

March,2015 (A)

As on 31st March,2014(B)

Change (A-B)

raw materials (X) 196206.22 201683.79 -5477.57Net sales revenues (Y) 357020.80 340210.26 16810.54% (X*100/Y) 54.96% 59.28% -4.32%

There is a decrease of 4.32% over the previous year in proportion in relation to sales revenue of raw materials consumed during the year.

What is the amount of short term investments? What is the percentage change in short term investments as compared to the previous year? How does the company measure short term investment? List three venues of short term investments for the company?

The amount of short term investments is 9422.15 Lakh INR as on 31st March 2015Current year amount of short term investments is 9422.15 Lakh INR while it was

2648.02 LakhINR.So the percentage change of current investments over the previous year is (9422.15*100/2608.02) 361.28%. Increase in percentage is 261.28%.

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Three venues of short term investments for the company1. Trade investments Investments in equity instruments2. INVESTMENTS IN MUTUAL FUNDS3. Other Short term investments

What is the proportion of current liabilities in the total liabilities? What is the change in this proportion as compared to the previous year?

Particulars As on 31st

March,2015 (A)As on 31st

March,2014(B)

Change (A-B)

current liabilities 96538.19 115355.06total liabilities 486790.06 446519.94% (X*100/Y) 19.83% 25.83% -6.00%

The proportion of current liabilities in the total liabilities of respective years were almost same though there was a decrease of the proportion compared to previous year about 6%.

List three most significant current liabilities? What is the percentage change in these three current liabilities as compared to the previous year?

Three most significant current liabilities are Short-term borrowings Trade payables Other current liabilities

Percentage change in these current liabilities as compared to previous yearParticulars As on 31st March

2015As on 31st March 2014

% Change compare to previous year

Short-term borrowings

23623.28 31990.40 26.16% decrease

Trade payables 58144.58 78860.68 26.27% decreaseOther current liabilities

56408.67 27147.72 107.78% increase

Overall (Total) 138176.53 137998.80 0.13% increase

What is the proportion of trade (accounts) payables in the total liabilities? What is the change in this proportion as compared to the previous year?

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Particulars As on 31st March 2015 (A)

As on 31st March 2014 (B)

Change (A-B)

trade (accounts) payables (X)

42136.85 58266.30

total liabilities (Y) 486790.06 446519.94% (X*100/Y) 08.66% 13.05% -4.39%

As compare to previous year Proportion of trade payable to total liabilities decreased by around 4.5%.

. What are the company’s contingent liabilities?Company’s contingent liabilities areExcise duty, customs duty and service taxSales Tax and entry tax Income TaxStamp Duty etc.

What is the proportion of long term liabilities in the total liabilities? What is the change in this proportion as compared to the previous year? List the three most significant source of long term liability?

Particulars As on 31st March 2015 (A)

As on 31st March 2014 (B)

Change (A-B)

long term liabilities (X)

109363.83 84457.86

total liabilities (Y) 486790.06 446519.94% (X*100/Y) 22.47% 18.91% 3.56%

Proportion of Long term liabilities in the total liabilities increases by 03.56% compared to previous year.

Three most significant source of the long term liabilities are1. Redeemable Non-convertible Debenture2. Rupee term loans3. Foreign Currency term loans

What is the proportion of share capital in the total liability? Is there any change in the amount of share capital as compared to the previous year? What is the source of this change?

Particulars As on 31st March 2015 (A)

As on 31st March 2014 (B)

Change (A-B)

share capital (X) 5843.56 5843.56total liabilities (Y) 486790.06 446519.94% (X*100/Y) 01.20% 01.30% -0.10%

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There is no change in the amount of share capital as compared to the previous year.

What is the face value of the equity share? Has the company issued any shares for services or non-cash assets? If yes, give details.The face value of the equity share of the company is 10 INR per share. The company has not issued any equity shares for the services or non-cash assets.

What is the proportion of Reserves in the total liabilities? What is the change in this proportion as compared to the previous year?

Particulars As on 31st March 2015 (A)

As on 31st March 2014 (B)

Change (A-B)

Reserves in the total liabilities (X)

233948.17 210507.63

total liabilities (Y) 486790.06 446519.94% (X*100/Y) 48.06% 47.14% 0.92%

There was a decrease of 0.92% in the proportion of Reserves in the total liabilities.

How much is the basic and Diluted EPS and dividend per share?Basic and Diluted EPS were 53.59 INR. Interim Dividend per share was declared 10 INR per share although annual dividend was not declared.

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Corporate Governance Report Read carefully through this section and give details of three most significant items

mentioned therein

Remuneration of Directors

Interim Dividend Payment 5per share each (50 per cent) onthe paid up capital of the Company absorbing ` 68.04 croresapprox. (inclusive of tax) were paid on 3 September 2014and 24 February 2015 respectively.

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Stock Market Data

Corporate Social Responsibility Report Read carefully through this section and give details of three most significant items

mentioned therein

Corporate GovernanceCertificate of the auditors of your Company regarding complianceof the conditions of

corporate governance as stipulated inClause 49 of the Listing Agreement with the stock exchanges isattached to the report as Annexure IV.In compliance with the requirements of Clause 49(V), a certificatefrom Managing Director and the President & Chief FinancialOfficer was placed before the Board.All Board members and Corporate Leadership Team (CLT) haveaffirmed compliance with the Code of Conduct for Board andSenior Management Personnel. A declaration to this effect dulysigned by the Managing Director is enclosed as a part of theCorporate Governance Report.Annual Report on CSR for the financial year ended 31 March, 20151) A brief outline of the Company’s CSR Policy, including overview of projects or programs proposed to be undertaken and areference to the web-link to the CSR Policy and projects or programs.

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As per the requirement of Section 135, Companies Act, 2013, the Company had laid down a CSR Policy which has identifiedprojects as per the Schedule VII of The Act in the following areas :-• Promotion of Education: Improving Quality of Education and Developing School infrastructure of Govt. Schools;

• Employment enhancing vocational skills : Focusing on imparting appropriate skills as per the market and industry needs andproviding a platform to the youth trained to be gainfully self-employed or linking them with potential employers to increasetheir employability and livelihood;

• Promoting gender equality and empowering women :Focusing on providing special skill trainings and confidence building soas to make them self-reliant and improve their employability and income;

• Preventive Healthcare: Regular check-ups and diagnosis for prevalent ailments in the community present in and around plantlocations of SRF;

• Ensuring Environment Sustainability: Conversion of barren undulated lands into cultivable lands, promoting alternativeplantation, building check dams, rainwater harvesting and water conservation to prevent depletion of underground andsurface water sources; and

• Promoting Rural Sports: Coaching for sports such as Kho-Kho, Kabadi etc. and to provide a platform where athletes cancompete at various level and proceed to state and national level.

2) The Composition of the CSR Committee

DrMeenakshiGopinath, ChairpersonMr.Kartik Bharat Ram, Deputy Managing DirectorMr. L Lakshman, Independent Director3) Average Net Profit of SRF Ltd for last three financial years2013-14 :` 272.22 crores2012-13 :` 329.62 crores2011-12 :` 554.74 croresAverage Net Profit :` 385.53 crores2% of Avg. Net Profit :` 771 lakh4) Prescribed CSR Expenditure - ` 771 lakh5) Details of CSR Spent during the Financial Yeara. Total Amount to be spent for the financial year - ` 771 lakhb. Amount Unspent - ` 329.05 lakh6) Reason for not spending the two percent of the average net profit of the last three financial years or any part thereofThe Company and SRF Foundation (the implementation agency) were unable to fully incur the CSR expenditure due to the factthat this was the first year of CSR implementation and this required considerable time in identification and detailing of relevantprojects, conducting baseline surveys, planning the implementation and mobilization of resources which led to the shortfall.

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Management Discussion and Analysis (MDA) Read carefully through this section and give details of three most significant items

mentioned thereinSRF maintained its momentum of growth during 2014-15 in spite of a global economy

thatremained sluggish. The year saw the Company reporting marginal increase in its revenue from3402.10 crores in 2013-14 to 3520.21 crores in 2014-15. The increase in revenue numbersmust be seen in the context of softening crude oil prices which resulted in lower realizations formost of SRF products.

BUSINESSES

As a multi-business entity SRF remains committed to its strategic focus of continuousimprovement and achieving excellence in meeting the diverse requirements of customersacross multiple segments, globally. The Company remains the market leader in most of itsproducts and continues to enjoy significant global presence in some of its businesses, withoperations in three countries namely India, Thailand and South Africa and commercial interestsin more than 75 countries. It classifies its main businesses as Technical Textiles Business (TTB),Chemicals & Polymers Business (CPB) and Packaging Films Business (PFB).

Technical Textiles Business Tyre Cord Fabrics Belting Fabrics Coated & Laminated Fabrics Industrial Yarn

Chemicals & Polymers Business Fluorochemicals Refrigerants Solvents Specialty Chemicals

Engineering Plastics Chemicals Technology Group

Packaging Films Business

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Reference

www.srf.com www.wikipedia.org Annual report for the year 2014-15

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THANK YOU

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