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SFIF

The BSE Ltd.

BSE's Corporate Relationship Department 1s Floor, New Trading Ring, Rotunda Building, P.J. Towers, Dalal Street, Fort, Mumbai 400 001

National Stock Exchange of India Limited "Exchange Plaza" Bandra-Kurla Complex Bandra (E) Mumbai- 400 051

SRF/SEC/AGM-51/2022

28" June, 2022

Dear Sir,

Sub: Annual Report of51°Annual General Meeting- SRE Limited

In Compliance with Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 please find attached 51[st ] Annual Report of SRF Limited.

The Annual Report can also be accessed at the company's website at: www_srf_com

Request to kindly take this intimation on record.

Thanking you,

Yours faithfully, For SRF LIMITED

8 I A N #t 4 t #e # & W Rajat Lakhanpal VP (Corporate Compliance) & Company Secretary

Encl : Ala

SRF LIMITED

Block-C Sector-45 Gurugram 122 003 Haryana India Tel: +91-124-4354400 Fax: 491 124-4354500 E-mail: [email protected] Website: www.srf.com

Regd. Office:

Unit No. 236 & 237, 2nd Floor DLF Galleria, Mayur Place Noida Link Road Mayur Vihar Phase-1 Extension Delhi 110091

Corporate Identity No. L181010L1970P1€005197

Annual Report 2021-22

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Firmly rooted. Growing responsibly.

A. Corporate Overview

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06 Our Locations

08 Board of Directors
09 Corporate Information

02 Chairman’s Message

10 Our approach to ESG

To download this report or read online please log on to www.srf.com

12 Key ESG Performance Highlights

13 Governance
18 Creating Shared Value Through Extensive Stakeholder Engagement
23 Managing Risks Strategically for a Sustainable Tomorrow
26 Strategy
30 Value Creation Model
32 The Six Capitals

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69 Business Responsibility Report
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95 Board’s Report
79 Notice
132 Management Discussion & Analysis
145 Corporate Governance Report
Statutory
Reports [B.]
165 Financial Statements
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165 Standalone Financial Statements

C. Financial Statements

269 Consolidated Financial Statements

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Chairman’s Message

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Dear Shareholders,

It is a great privilege to be able to share my thoughts with you for the first time since taking over as the Chairman and Managing Director of SRF Limited in April 2022.

This year, we bid farewell to the patriarch of our Group, Mr. Arun Bharat Ram, who expressed his desire to step down as the Executive Chairman and Director of SRF Limited. The amount of value SRF has created under his leadership – is extraordinary, as he leaves behind a strong foundation for future generations. Having said that, SRF will continue to benefit from his valuable knowledge and wisdom from time-to-time as a mentor to the Board of Directors and the management.

As I take on the role of Chairman and Managing Director with a great sense of responsibility and humility, I look forward to leading SRF into the future with an outstanding team at my side.

Firmly rooted. Growing responsibly.

We chose “Firmly rooted. Growing responsibly” as the theme of our annual report this year as we prepare to shape our future growth journey based on a powerful combination of experience and energy. Experience of a Company that has succeeded for decades, and the energy of a young Company with fresh opportunities. SRF products touch millions of lives every day and we work hard to remain relevant and current to the customers we serve and respond appropriately to changes taking place in our environment.

As an organisation that continues to evolve, grow, and progress into the future, we are also making concerted efforts towards identifying our ESG (Environmental, Social and Governance) risks and opportunities. It was therefore imperative for us to adopt ESG as part of our Company aspirations. In March 2022, we introduced and launched our Company’s new ASPIRATIONS 2030. The five pillars of our ASPIRATIONS 2030 are:

We will continuously strive to be known for our:

Professional Reputation and Value System
Customer Advocacy
Innovation and Technology Leadership
Operational Excellence
Environment & Social Responsibility

Our efforts in ESG encompass management of water use, protecting ecosystems and reducing community impacts related to operations, among others. I invite you to read the ESG section of this report for more on our work towards our environmental responsibility.

Financial Performance

FY 2021- ’22 was an extraordinary year. Despite the ongoing COVID-19 pandemic, widespread supply bottlenecks, and increasingly higher energy and raw materials prices, we achieved robust operational and financial performance.

From a financial point of view, in FY 2021- ’22, the Company achieved a 58% increase in profit after tax at 1,889 crore compared to 1,198 crore last year. The Company’s revenue for the year stood at 12,434 crore as against 8,400 crore in the previous year, recording an overall growth of 48%.

Business Performance

Let me now talk about some of the milestones achieved

by each of our business segments during the year.

Chemicals Business

In FY 2021 – ’22, the Chemicals Business accomplished strong growth of 43.8% Year-over-Year (Y-o-Y) to achieve record revenues of ` 5,240.8 crore.

Our Specialty Chemicals Business performed remarkably well in the year, driven by strong demand in both the exports and domestic markets. Our new product portfolio is being enhanced continuously, which also helps us expand and strengthen our customer base further. Our customers are demanding more-and-more complex molecules, a demand that is being met by our robust in-house R&D team, giving the Company an overall edge in the marketplace. With rapid strides in the development of new products and process technologies, we launched four new products in the agrochemicals and two in the pharmaceuticals segment during the year. In addition, we are also seeing traction in the Active Ingredients (AI) space and building our capabilities on this front.

As we grow our revenues, we will continue to invest in this business to sustain healthy growth rates over the next few years. In this regard, I am pleased to share that the Board of Directors have approved the setting up of dedicated facilities to produce

As an

organisation that continues to evolve, grow, and progress into the future, we are also making concerted efforts towards identifying our ESG (Environmental, Social and Governance) risks and opportunities.

agrochemicals intermediates at Dahej, Gujarat, at a cost upwards of 200 crore. In addition to that, the Board approved a project to set up a Pharma Intermediates Plant (PIP) at a cost of 190 crore, which will strengthen SRF’s pharma capabilities. Similar investments alongside improved efficiencies, optimum utilisation of capacities, and other initiatives to reduce the environmental costs of manufacturing were also announced throughout the year.

Overall, as India’s largest specialty chemicals player, SRF, in FY 2021- ’22, continued to maintain its ‘preferred partner’ status with most of its marquee global customers.

Poised for sustainable growth, our Fluorochemicals Business delivered a strong performance during the year. This was largely on account of higher volumes in refrigerants, blends, and chloromethanes, in both the domestic and exports markets. Our capabilities on backward integration allow us to control costs as well

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record revenues of ` 4,779.2 crore. Both our domestic and international facilities delivered strong performance and contributed to the overall growth. Over-the-years, SRF’s Packaging Films Business has established itself as a renowned player in the worldwide packaging industry, with a growing market presence across 100+ countries with multi-country and multi-substrate presence. This is a result of the Business’ ‘Easy to do Business with’ philosophy, our geographical spread, along with continued focus on enhancing efficiencies, innovative practices, and costcompetitiveness.

as propel the business forward.

Furthermore, in our constant endeavour to offer cutting-edge products to our customers, we enhanced our portfolio by introducing Anhydrous Hydrogen Chloride (AHCL) for pharmaceutical applications and ramping-up production of other key products in the Industrial Chemicals segment. Our Pharma propellant, which is sold under the brand name of Dymel® HFA 134a/P witnessed a significant increase in sales, expanding to new geographies and consolidating its customer footprint across the globe.

With large capex such as Polytetrafluoroethylene (PTFE), chloromethane (CMS), etc. likely to capitalise in the next few quarters, we are looking forward to exciting times ahead in the Fluorochemicals Business.

During the year, the Company made an important announcement to further enhance our leadership position in this segment. We have allocated a capex of ` 425 crore to set up an Aluminium Foil manufacturing facility near Indore in Madhya Pradesh, India, which is expected to be commercialised in approx. 20 months. Our new BOPP film line, which is currently under construction in Indore is also on track and expected to be commissioned in the forthcoming quarter.

Packaging Films Business

In FY 2021 – ’22, our Packaging Films Business witnessed robust growth of 45.2% Y-o-Y to achieve

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I am also happy to share that during the year, our Packaging Films Business was recognised with two prestigious awards. Our facility at Indore was conferred the Quality Sustainability Award at the international convention, organised by the International Academy for Quality (IAQ). SRF FLEXIPAK, our South African facility received the ‘Sword of Honour’ from the British Safety Council, demonstrating our emphasis on superior Environment, Health, Safety (EHS) practices.

As a market leader, our focus on sustainability initiatives is our responsibility and we will continue to work towards innovating films that have a lower environmental footprint. We aim to foster the ‘Circular Economy’ where we increasingly bring waste materials back into the economy.

Technical Textiles Business

In FY 2021 – ’22, our Technical Textiles Business demonstrated promising results of 68.1% Year-overYear to achieve healthy revenues of ` 2,085.2 crore. This was achieved on the back of highest-ever sales volumes from the Belting Fabrics and the Polyester Industrial Yarn segments. This contributed to partially offsetting the weak demand for Nylon Tyre Cord Fabrics. Overall, the Company is actively focusing on improving its operational efficiency and productivity paraments in this segment.

Other Businesses

In our Other Businesses, SRF continues to maintain market leadership in the Coated Fabrics Business, with a high-volume share driven by improved sourcing initiatives and plant efficiency. In the Laminated Fabrics Business, SRF retained its price & volume leadership, with the facility operating at full capacity, achieving its highest-ever sales in the fourth quarter. However, realisations in this segment were adversely impacted by the continuing surplus supply situation.

Our People are our Real Assets

I would like to emphasise at this point that our passionate workforce is our core business asset. I want to thank the employees of SRF for their hard work, dedication, and resilience in scripting our success story.

As most of our teams have now returned to our offices, I have had the opportunity to rediscover the collaborative culture that makes us such a unique and extraordinary Company.

Expanding our Community Impact

SRF Foundation, the CSR arm of SRF, has deep expertise in supporting transformative education initiatives at local and grassroot levels, including improving student-learning outcomes for more than one lakh fifty thousand students in India. We also go beyond traditional education by imparting vocational skill training to the youth, making them employable and contributing citizens of our country.

More importantly, our employees worldwide share our passion for community service. They volunteer and leverage their skills and experience to make a difference in the world. I am grateful to my team for their commitment towards making a positive change in our society.

In closing

On behalf of the Board and management, I thank you, our shareholders, for your continued support. I am confident that, with the actions we have outlined to continue driving growth, we will create long-term and sustainable value for our stakeholders.

Stay well.

Sincerely,

Ashish Bharat Ram

Chairman & Managing Director SRF Limited

Annual Report 2021-22

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FINANCIAL STATEMENTS

Our Locations

CHEMICALS BUSINESS

Village - Jhiwana, PO - Khijuriwas, Tehsil - Tijara, District - Alwar, Rajasthan, India - 301 019
D - 2/1, GIDC Phase II, PCPIR, Village - Dahej, District - Bharuch Gujarat, India - 392 130

TECHNICAL TEXTILES BUSINESS

Malanpur

Industrial Area, Bhind, Madhya Pradesh, India - 477 116
Manali Industrial Area, Manali, Chennai,
Plot No. K1, SIPCOT Industrial Complex, Gummidipoondi, Thiruvallur District, Tamil Nadu, India - 601 201
Viralimalai, District - Pudukottai,Tamil Nadu, India - 621 316

National

Plot No. 12, Rampura, Ramnagar Road, Kashipur, District Udham Singh Nagar, Uttarakhand, India - 244 713
Sector 3, SEZ Indore, Pithampur, District - Dhar, Madhya Pradesh, India - 454 775
Plot No. 675, Industrial Area, Sector 3, Village - Bagdoon, Pithampur, District - Dhar, Madhya Pradesh, India - 454 775

International

SRF Industries (Thailand) Ltd., Hemraj Eastern Seaboard Industrial Estate, 112, Moo 3, Tambon Tasith, Amphur Pluakdaeng Rayong Province, Thailand - 21140
SRF Flexipak (South Africa) (Pty) Ltd. 5 Eddie Hagen Dr, Cato Ridge 3680, Durban, South Africa

PACKAGING FILMS BUSINESS

Plot No. K1, SIPCOT Industrial Complex, Gummidipoondi, Thiruvallur District, Tamil Nadu, India - 601 201
Unit No. 2, Plot No. 12, Rampura, Ramnagar Road, Kashipur, District - Udham Singh Nagar, Uttarakhand, OTHER India - 244 713 BUSINESSES
SRF Europe KFT 05/219, Jaszfenyszaru Industrial Park, Jaszfenyszaru, 5126 Hungary

Annual Report 2021-22 7

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Chairman Emeritus

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Arun Bharat Ram

Board of Directors

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Pramod G. Gujarathi Director, Safety & Environment

Ashish Bharat Ram Kartik Bharat Ram Chairman & Managing Joint Managing Director Director

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Tejpreet S Chopra Lakshman Independent Director Lakshminarayan Independent Director

Bharti Gupta Ramola Independent Director

Vellayan Subbiah Non-Executive, Non-Independent Director

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Puneet Yadu Dalmia Independent Director

Yash Gupta Raj Kumar Jain Independent Director Independent Director

Corporate Information

Registered Office

Auditors

(CIN: L18101DL1970PLC005197) Unit Nos. 236 & 237, 2nd Floor, DLF Galleria, Mayur Place, Noida Link Road, Mayur Vihar Phase I Extension, Delhi, India - 110 091 Tel: +91-11- 49482870

M/s B S R & Co. LLP, Chartered Accountants

President & CFO

Rahul Jain

Vice President (Corporate Compliance) & Company Secretary Rajat Lakhanpal

Corporate Office

Block - C, Sector - 45, Gurugram - 122 003, Haryana, India Email: [email protected] www.srf.com

Bankers

ICICI Bank State Bank of India Standard Chartered Bank Citibank NA DBS Bank India Limited HDFC Bank Kotak Mahindra Bank HSBC Axis Bank Yes Bank MUFG Bank Limited Sumitomo Mitsui Banking Corporation Mizuho Bank Limited IDFC Bank BNP Paribas

Annual Report 2021-22

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Our approach to ESG

Scope and Boundary

As a responsible organisation, sustainability is part of our core value system. We care for people and the planet and our ever-evolving policies and inherent philosophy are testimony of it. We are diligent about the way we conduct business to deliver value to all our stakeholders. Our universal and all-pervading theme that runs across our organisation encompasses the elements of environment, social and governance. The ESG section of the report reflects the current systems, practices, performance and the various initiatives undertaken by SRF for integrating ESG into their business activities. The report provides information on SRF Limited, India and covers the period from 1[st] April 2021 to 31[st] March 2022.

SRF’s Business Verticals

Key ESG Performance Highlights Governance

Committees driving performance excellence

Sustainability is at the heart of our Governance Framework
Codes and Policies for best-in-class Governance
Regulatory compliance - Our Pride
Fostering advancement of industry through industry associations
Creating shared value through extensive stakeholder engagement

Inclusive stakeholder engagement process

Materiality assessment driving long-term value creation

Managing risks strategically for a sustainable tomorrow

Strategy

The Six Capitals

Financial Capital
Manufactured Capital
Intellectual Capital
Natural Capital
Human Capital
Social & Relationship Capital
Business Responsibility Report

Chemicals Business Chemicals Business includes two divisions, namely Speciality Chemicals and Fluorochemicals

Plants in Dahej and Bhiwadi located in Gujarat and Rajasthan respectively

Speciality Chemicals

Expertise in fluorine chemistry and deep knowledge in a variety of other organic chemistries

Capability to produce active, non-active advanced intermediaries used in agrochemical and pharmaceutical industries, custom research & synthesis for major players in agrochemicals and pharma space

Fluorochemicals

Global-scale fully integrated player in refrigerants & pharma propellants and industrial chemicals

Manufacturer of ozone-friendly refrigerants in India
Product application in room air-conditioners, pharma, automobile air-conditioners, refrigerators and chillers

Packaging Films Business Technical Textiles Business Two plants in Indore, Madhya Plants in Manali, Pradesh and one plant in Gummidipoondi and Viralimalai Kashipur, Uttarakhand. in Tamil Nadu and Malanpur In addition, there are three in Madhya Pradesh overseas plants in Thailand, Largest manufacturer of South Africa and Hungary technical textiles in India State-of-the-art facilities and also enjoys a global having capability to offer leadership for most of the innovative solutions in products under this business

Technical Textiles Business

Plants in Manali, Gummidipoondi and Viralimalai in Tamil Nadu and Malanpur in Madhya Pradesh

State-of-the-art facilities having capability to offer innovative solutions in BOPET and BOPP Films

Technical Textiles business offers a wide range of high-performance reinforcements, covering both nylon and polyester yarns and fabrics for diverse non-consumer and lifestyle applications

Spectrum of product mix includes transparent, metallised, coated, and other value-added films finding various diverse applications in fast moving consumer goods, Food & Agro, confectionery, soaps & detergents, solar panels, labelling, overwraps, embossing, etc.

Product basket for technical textiles contains tyre cord fabrics, belting fabrics and industrial yarn

Diversifying into Aluminium foil manufacture under new wholly-owned subsidiary

Used in varied applications, such as tyres, seat-belts, conveyor-belts and other industrial applications

Note: All the financial numbers are on consolidated basis while the other data pertains to Indian operations of the above businesses

Annual Report 2021-22 11

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Key ESG Performance Highlights

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Gross Operating Revenue EBITDA PAT E Cr. E Cr. E Cr. 12,434 3,146 1,889 48% 44% 58%

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Energy savings through energy Energy consumed from efficiency initiatives renewables and biomass Recycled water consumption 20 TJ 914 TJ 1,696 Mn. Ltrs.

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Increase in female employees at EHS Training imparted the management level compared to FY 2020 - ‘21 27,992 Hrs. 8%

Total workforce 6,674

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Patents filed R&D spend 52 E 117 Cr.

Total number of CSR Beneficiaries

211,782

Governance

We never yield to or compromise on the basic principles of Integrity, Transparency and Accountability. Robust corporate governance practices are the key pillars for driving all initiatives.

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business activities are aligned with the Company’s long-term strategies. The Board members monitor the financial, environmental, and social performance of the Company while addressing key risks and opportunities.

We believe that good corporate governance is the sum or result of implementing sound management practices, compliances, and adherence to the highest levels of transparency and business ethics. Our organisation is based on a strong bedrock of corporate governance. We have put in place a detailed governance framework that outlines our operations, business actions and possible outcomes. Corporate governance at SRF encompasses comprehensive oversight of business strategies, ensuring fiscal accountability, ethical corporate behaviour, and upholding stakeholder interests. Our Governance incorporates a systematic and periodic evaluation of business operations thereby ensuring compliance with all applicable rules and regulations. We are committed to delivering value-based growth while maintaining high ethical standards and complete transparency with all our stakeholders - shareholders, customers, employees, vendors, society.

We have 10 Directors on our Board as on 31[st] March 2022. During the year, Dr. Meenakshi Gopinath, Director CSR, retired from the Board w.e.f. 31[st] August 2021 and Mr. Arun Bharat Ram resigned as Chairman of the Board w.e.f. closing of business hours of 31[st] March 2022. He was appointed as Chairman Emeritus by the Board and shareholders for a term of 5 years w.e.f. 1[st] April 2022. Further, w.e.f. 1[st ] April 2022, Mr. Ashish Bharat Ram was re-designated as Chairman and Managing Director and Mr. Kartik Bharat Ram was re-designated as Joint Managing Director by the Company subject to approval of shareholders. Mr. Vellayan Subbiah resigned as independent director on 9[th] May 2022 and was appointed as Non-Executive Non-Independent Director w.e.f. 10[th] May 2022 subject to approval of the shareholders and Mr. Raj Kumar Jain was appointed as Independent Director (additional) w.e.f. 9[th] May 2022 subject to approval of the shareholders.

At SRF, we are led by the Board of Directors comprising of industry experts who come with diverse and rich experiences which enable and facilitate effective decision-making and execution of sustainable and long-term strategies. The Board reviews all significant aspects of the Company and ensures that the

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FINANCIAL STATEMENTS

Committees Driving Performance Excellence

The governance structure at SRF consists of six Board level committees with well-defined roles and responsibilities to protect the interests of all shareholders. The committees are instrumental in contributing to the Company’s journey to market leadership and help in maximising value for all stakeholders.

CSR Committee

Audit Committee

Nomination and Remuneration Committee

The Committee is responsible for handling matters related to spending of CSR funds, monitoring of CSR activities and so on

The Committee is responsible for reviewing and approving the internal audit plan, financial reporting systems, whistle blower mechanism, ensuring compliance with regulatory guidelines, undertaking discussions on quarterly, half-yearly and annual financial results and engaging with statutory auditors

The Committee is

responsible for assessing qualification of a director, proposing policies on board diversity and undertaking performance evaluations of directors

The committee consists of two non-executive directors and one executive director

It consists of three independent directors

Committee of Directors Financial Resources

Stakeholders Relationship Committee

Risk Management Committee

The Committee of Directors Financial Resources is responsible to provide financial oversight for the organisation

The stakeholder The Committee is relationship committee responsible to support oversees the grievance the Audit Committee in related aspects of all analysing the efficacy of concerned stakeholders the Risk Management System and assists It consists of two the Board in framing, executive and two implementing, monitoring, independent directors and revising the Risk Management Policy It consists of one Independent director and two executive directors

It consists of three executive directors

Sustainability is at the Heart of our Governance Framework

Corporate Business 1 Leadership Team (CLT) 2 Leadership Team (BLT) 3 Process Owners CLT is represented BLT is represented The Process Owners by Chairman & MD, by various heads of are represented by Jt. Managing Director functions, including heads of different respective business marketing, strategic functions such as, CEO’s, CFO, CIO sourcing, HR, Finance, HR, Safety Finance, and CHRO IT, Operations and TQM Engineering, Production and The CLT provides The Business Processes guidance for making Leadership Team all the major business implements and decisions at the Group monitor sustainability level. It implements performance at strategies across business levels the organisation through the Business Leadership Team and Process Owners

Codes and Policies for Best-in-Class Governance

At SRF, we believe robust policies and practices including ESG considerations are key driving forces in decision-making. We are periodically reconceptualising and reimagining our strategies to keep up with the ever-changing business environment and evolving consumer needs. Our policies provide specific guidance to employees on their ethical/

behavioural standards to uphold our organisation’s values and ensure that business is conducted in an ethical and responsible manner. While following these policies is mandatory for all our employees, we also encourage all other stakeholders to adopt and adhere to the same. SRF has laid out the following codes and policies to govern its business in a responsible way:

Codes & Policies

Code of Practices and Procedures Nomination, Appointment for Fair Disclosure of UPSI and Remuneration Code of Conduct for Prevention of Health & Safety Insider Trading Human Rights Code of Conduct for Directors and Whistle Blower Senior Management Personnel Corporate Social Responsibility Anti-Corruption and Bribery Material Subsidiary Companies Dealing with Related Party Transactions Dividend Distribution Preservation of Documents

Source - https://www.srf.com/investors/corporate-governance/

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FINANCIAL STATEMENTS

The Company’s Code of Conduct (CoC) testifies the organisation’s commitment towards conducting its business with utmost integrity, honesty and accountability. It ensures compliance with internal standards of business practices and covers aspects such as regulatory compliance, fair employment practices, environment, health and safety, conflicts of interest and safeguarding the Company’s assets.

The principles enumerated in the Code of Conduct have been complied with by the Board members and senior management representatives. The CoC coupled with the Whistle-blower policy reinforces the stated values of the Company and promotes ethical behaviour for conducting business in the most transparent manner.

In the current reporting period, there were no cases of conflict of interest and no disciplinary action was taken by any law enforcement agency for the charges of bribery / corruption on Directors / KMPs / employees / workers.

For details: SRF-Whistleblower-Policy.pdf Code-of-Conduct-for-Directors-and-Senior-Management-Personnel.pdf (srf.com)

The figure below highlights the key aspects of the Code of Conduct:

(Business Responsibility Report Principle 1)

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Equal Invention/
Sexual harassment
employment opportunity innovation
Code of
Company
Insider trading
policies and records
Conduct
Gifts Conduct with Conflict of interest
and entertainment customers & suppliers
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Regulatory Compliance - Our Pride

SRF has implemented an IT system based ‘Compliance Manager’ tool, which tracks the status of compliances on defined frequency for required periods. With a view to ensure total compliance with applicable legal frameworks, this tool provides capability and offers timely and intelligible disclosures for effective monitoring and reporting.

To further reinforce the Company’s core values beyond regulatory compliances, we have established a Values Steering Committee, which includes the Joint Managing Director and some members from the Corporate leadership team. They are responsible for conducting fair and transparent investigations of reported issues, independently and take corrective or disciplinary actions.

During the current reporting period, no case has been filed by any stakeholder regarding unfair trade practices, irresponsible advertising and/or anti-competitive behaviour

(Business Responsibility Report Principle 1 & 9)

SRF actively participates in discussions and discourses on growth and sustainable development in various industry forums. Over the years, the Company has been proactively collaborating with several industry associations to share best practices, address industry concerns, and implement measures for driving industry growth and fostering economic development in the country. Currently, SRF is a member of the following industry associations and forums:

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Industry Associations
Confederation of Indian Industry National Safety Council
Refrigerant Gases Manufacture Association Centre for Chemical Process Safety
The Synthetic & Rayon Textiles Export
Indian Chemical Council Promotion Council
CHEMEXCIL Delhi Chamber of Commerce
Reach of Association: State National
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(Business Responsibility Report Principle 7)

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Creating Shared Value Through Extensive Stakeholder Engagement

Our stakeholders include Regulatory Bodies, Shareholders, Suppliers, Customers, Employees and Local Communities. Furthermore, we have identified disadvantaged, vulnerable, and marginalised stakeholders from local communities. We are in the process of implementing various measures, identified through need assessment surveys, for their upliftment. Lastly, the strategies and measures are implemented through various Corporate Social Responsibility (CSR) initiatives in collaboration with the government and local communities.

SRF believes that stakeholder engagement is essential for understanding the needs and perspectives of all stakeholders. We take a collaborative approach when it comes to working with stakeholders – both internal and external.

This strong partnership is pivotal in tapping new opportunities and in building effective business strategies for the future.

(Business Responsibility Report Principle 4)

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1.
Regulatory Bodies
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6. Regulatory Bodies
Local
Communities
Key
5. Stakeholders 2.
Employees Investors/Shareholders
4. 3.
Customers Suppliers
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Inclusive Stakeholder Engagement Process

To conduct business in a transparent and ethical manner, SRF has identified key stakeholders through a prioritisation exercise undertaken in consultation with the Company’s management. The detailed stakeholder engagement process is explained below:

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Identify
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----- Start of picture text -----

Monitor and Report Identify
Ensure effective, timely Identify internal and
documentation of consultation external stakeholders
process and learning points relevant to SRF
Report back to stakeholders on Identify and prioritise
commitments and performance key issues critical to
related to identified material issues each of the identified
Ensure transparency in the stakeholder groups
stakeholder engagement
Stakeholder
Engagement
Process
Engage & Consult Plan
Engage with each Establish objectives and scope of
stakeholder group the stakeholder engagement
through interviews, etc.
Allocate time, resources and
Share contextual responsibilities
information
with stakeholders Design engagement strategy
Design modes of communication
Follow-up sessions for
feedback on identified for each stakeholder
material issues
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The stakeholder engagement exercise undertaken has been detailed out in the table below. It captures the key stakeholder groups identified, expectations of stakeholders, mode of engagement and key topics and concerns discussed with each stakeholder group.

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Stakeholder Key Modes of Key Topics Key responsible
group expectations communication discussed groups
Compliance with Adherence Regulatory Senior Management
applicable laws to reporting compliance and relevant
and regulations requirements Operational efficiency functions
Participation and Industry Development of
contribution to representation on communities
various initiatives key matters Management of
environmental
impact
Occupational Health
Regulatory and Safety
bodies Emergency
Preparedness
Air and GHG
emissions
Biodiversity and
resource conservation
Waste management
Business plans, Company website Financial Performance Chairman and
growth feasibility Quarterly Business Risk Managing Director
and stability publication of Management (CMD), Chief
Better quarterly results followed Foray into new Financial Officer
reports/ by earning call markets (CFO) and Investor
performance ratios Periodic Analysts’ Optimising Relations
Corporate reputation briefing and operational costs
Transparent individual Corporate
Shareholders reporting discussions governance
Prudent capital between fund Ethics and value
allocation managers and Energy efficiency
Corporate the management Renewable energy
governance and risk team
management
Regular Dividend
pay-out
Fair and transparent Supplier Pricing, quality Sourcing
dealing evaluation and safety of raw
Consistent business programme materials
and economic Periodic meetings Issues related with
growth Visits to supplier’s human rights
Joint exploration facilities Local employment
of potential Materials
Suppliers opportunities
Maintain
confidentiality of
supplier data
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Stakeholder Key Modes of Key Topics Key responsible
group expectations communication discussed groups
Reputed brand, Customer visits / audit Product Marketing
high quality and and meetings innovation Technical services
reliable products Customer recognition/ and life-cycle Customer
Product innovation awards programmes efficiency Relationship
and environmentally Customer satisfaction Service quality Management
sustainable products surveys Resolution
Timely market / Joint development & of Customer
Customers product updates product reengineering Complaints
Honour contractual Quality and
terms and price Safety of
Timely resolution of Products
customer complaints Pricing of
Ethical Practices Products
Maintain confidentiality Branding
of customer data
Safe and healthy work IT enablement & Career growth Human
environment digitisation prospects Resources
Favourable work culture Structured and focused Learning and
Adherence to SRF’s training programmes development
values Employee-oriented work programs
Fair and equal policies Trainings
compensation Adequate grievance Rewards and
Learning and mechanism for Recognition
development reporting and redressal Occupational
opportunities Fair and transparent Health and Safety
Employees Fair, transparent, and performance Work
regular rewards and management systems environment and
recognition and 360-degree policies
Regular and constructive feedback process Grievance
performance Periodic open house redressal
management and meetings with senior mechanism
feedback leadership teams Ethics and
Career development Regular employee transparency
opportunities engagement and TQM
Appropriate grievance feedback surveys Emergency
redressal mechanisms preparedness
Job security Labour conditions
Local employment Social impact Social concerns SRF Foundation
Skill development and assessment in the region (Corporate Social
education Joint development and Minimising Responsibility
Local infrastructure partnership with local negative arm of SRF)
development agencies, network environmental Plant-level CSR
Conservation of natural partners for servicing impact
environment wider set of local Local
Local Ensuring health and communities employment
Communities safety of nearby Local infrastructure
community development,
structured learning
by digital classrooms
training, providing
scholarships, and other
necessary support
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Annual Report 2021-22

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Materiality Assessment Driving Long-Term Value Creation

During the year FY 2021 - ‘22, SRF reviewed the material aspects identified last year. In conclusion, no new material aspects or concerns have emerged for the organisation or stakeholders for this year. SRF aims to revisit the detailed materiality assessment exercise periodically to ensure emerging material issues are captured in the materiality of the organisation. At SRF, we continue to map the Company’s progress against identified material aspects and take necessary actions wherever necessary, to improve the overall business outcomes and value for stakeholders.

Materiality assessment helps in identifying and prioritising key environmental, social and governance aspects which influences the Company’s strategy, investments and business in the long run.

Given the importance of materiality assessment, we ensure continuous review of existing material topics and identification of new focus areas. For the same, SRF conducted a rigorous materiality assessment exercise in FY 2020 - ‘21 across all the three businesses - Chemicals, Packaging Films and Technical Textiles, following globally recognised ESG frameworks, peer benchmarking and extensive stakeholder consultations.

Business Verticals Identification of material issues of the Business-wise Finalisation of Chemicals industry across each consultantions material aspects Technical Textiles business Vertical of SRF Packaging Films

Below highlights the key material aspects of SRF:

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Social

Governance

Environment

Energy Management Employment Economic Performance GHG & Air Emissions Occupational Health Corporate Governance Water & Effluents and safety Risk Management Waste Management Local Communities Total Quality Management Material

Managing Risks Strategically for a Sustainable Tomorrow

We have built robust systems and processes across our organisation that enable us to proactively identify, analyse and mitigate risks that may impact our operations today and in the future.

to manage risks and transform risks into opportunities as practically as possible. The Framework is governed by an overarching Risk Management Policy (approved by the Board) which clearly articulates the Company’s approach for managing risks across the organisation.

The risk landscape continues to evolve radically at a fast pace. SRF’s approach for risk management flourishes on the ability to demonstrate agility and proactive management of unforeseen risks. The Company is committed for creating sustainable position through an in-depth understanding and management of material risks, as well as maximising value by unleashing new opportunities.

The Enterprise Risk Management Framework encapsulates key aspects of effective management of risks. This contributes to building a strong internal control system based on a proactive approach to risk management rather than a reactive one. The risk management process and steps are highlighted below:

SRF practises well-defined and established enterprise-level Risk Management Framework which is entrenched in the core business strategy and planning process of the organisation. This enhances its ability

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Risk Risk Risk Risk Monitoring &
Identification Assessment Prioritisation Mitigation Documentation
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The Board of Directors have established a dedicated Risk Management Committee (RMC), which, inter alia, drives continuous efforts to identify various types of risks including ESG Risks, oversees the implementation of the risk management measures and suggests future action plans, wherever required.

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22 Annual Report 2021-22

Annual Report 2021-22 23

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Leadership Team and Risk Owners, report risks and mitigation plans to Corporate Leadership Team and subsequently to the Risk Management Committee for review. We also have a robust framework of Control Self-Assessment (CSA) which continuously verifies compliances with existing policies and procedures.

The Committee also aids the Audit Committee in analysing the efficacy of the Risk Management System and assists the Board in framing, implementing, monitoring, and revising the Risk Management Policy. The Committee is competent to identify, assess and manage both traditional and emerging business risks. It ensures that stakeholder interests are protected, business objectives are met, and long-term growth is enabled.

The risks identified by the Company broadly fall into the following categories viz. strategic risks, operational risks, regulatory risks, financial and reporting risks, and IT & cyber risks. (ESG risks are mapped under the appropriate categories of risks) (Business Responsibility Report Principle 6)

Risk categorisation and prioritisation is done on a high, medium, and low category basis as defined by the Risk Management Framework. Further, Business

Enterprise-Level Risk Management Framework

SRF’s overarching Risk Management Policy Board Risk Management Committee Corporate Leadership Team Business Leadership Team and Risk Owners Across all Businesses

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The figure below gives details on the identified risks and mitigation strategies adopted by SRF:

Key risks identified Mitigation strategies Long-term strategic planning and regular management reviews with business teams and Board of Directors Strategic sourcing initiative ensuring uninterrupted supply of raw materials
Strategic Risks Detailed policy guidelines to deal with key financial risks Robust processes and systems for ensuring timely reporting and
Financial Risk compliance with applicable regulatory framework Implementation of new perimeter security mechanisms such as dual firewalls, internet content filtering etc Implementation of mobile management for users with critical data leak risk Ensuring adequate update and maintenance of servers and network
IT & devices for added security and data protection
Cyber Security Risk Cyber security awareness sessions for employees Cyber security risks are periodically reviewed by risk management committee of the Board Implementation of safety and quality management systems, TQM driven processes to eliminate operational risks and contribute to the Company’s strategy to sustain operational success Adoption and deployment of resource efficiency initiatives Promoting harmonious work culture and implementing policies for
Operational Risk comprehensive retention, people development, employee benefits, welfare and wellbeing measures, proactive and continual employee engagement and structured learning and development opportunities
Implementation of new perimeter security mechanisms such as dual firewalls, internet content filtering etc
Implementation of mobile management for users with critical data leak risk
Implementation of safety and quality management systems, TQM driven processes to eliminate operational risks and contribute to the Company’s strategy to sustain operational success

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Regulatory Risk
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Continuous monitoring of the evolving regulations, impact assessment, implementation of statutory compliance. Internal audit and external legal review (including ESG)
Liaisoning with regulatory bodies and industry associations to bring systematic changes for the benefit of industries

24 Annual Report 2021-22

Annual Report 2021-22 25

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Strategy

Sustainability is at the core of our corporate ethos and is reflected in every aspect of the business. The leadership is strongly committed towards driving performance keeping sustainability as a focused item – SRF’s Aspirations 2030 lays down long-term roadmap for engagement with our investors, business partners, communities including focused approach on environment and social responsibility.

Sustainability is in our DNA and reflected in every aspect of our business functions and strategies. Our strategic pillars of sustainability include protection of natural resources, health and safety of our employees, responsible governance, and wellbeing of local communities. We combine strategic focus areas with our Aspirations to create a roadmap for the future. SRF follows practices and measures that enable long-term value creation for all its stakeholders while also maintaining a culture of ethics and integrity.

Our strategic focus area is guided by our Aspirations guidelines, which give us a clear view on what we strive to achieve in a sustainable manner to create long-term shared value.

One of the main mantras of SRF is - to evolve continuously. We have not only revisited and redefined ‘Aspirations 2025’, but we have also launched ‘Aspirations 2030’ as a sign of our strong commitment for a sustainable future.

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ASPIRATIONS
2030
PROFESSIONAL
REPUTATION &
VALUE SYSTEM
CUSTOMER
ENVIRONMENT
ADVOCACY
& SOCIAL
RESPONSIBILITY
OPERATIONAL
EXCELLENCE INNOVATION &
TECHNOLOGY
LEADERSHIP
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value. The overarching core values “RINEW”- Respect, Integrity, Non-Discrimination, Excellence and Well-being, form an intrinsic part of the organisation, helping in achieving the key pillars of the aspirations. The details of the key pillars of the ‘Aspiration 2030’ are elaborated below:

At SRF, we are committed towards building an organisation that is focused on holistic and sustainable value creation. This commitment is built on the ‘Core Values’ of the organisation coupled with ‘Aspirations 2030.’ These provide a strategic direction towards a sustainable business future to enhance stakeholder

Creating new and differentiated offerings that deliver superior customer value through innovations and improvements in quality, cost, efficiency, or environmental benefits, supported by digital technologies for efficiency and reliability. In addition, nurturing a capable workforce that continues to develop new solutions and provide advanced technical support. Implementation of various facets of the Total Quality Management (TQM) way to create new benchmarks across multiple dimensions of Quality, Cost, Delivery, Safety, Health & Environment and Morale (QCDSM).

Operational excellence

Professional reputation and value system

In line with the core values, SRF strives to attract, retain and nurture talent that demonstrates high levels of ethics and integrity while delivering high quality products to its customers, thereby enhancing the brand value and reputation of the Company.

Building a customer-focused, agile and lean organisation, becoming a trusted, long-term partner of choice with the customers through innovative offerings and strong customer relationships.

Customer advocacy

The Company constantly focuses on developing and investing in new technologies and developing new-age products to lead the way in serving the emerging needs of customers and deliver value over the long run. SRF’s focus on adequate allocation of resources to effectively implement systems and initiatives is helping in creating sustainable value on an ongoing basis. The Company will continue to focus on the key strategic areas that have contributed to driving improvements across the ESG material aspects.

Innovation and Technology Leadership

Our Environment and Social Responsibility will focus on four main aspects: We will benefit the communities where we work. We will embrace diversity, equality and inclusion in our workforce. We will enhance our focus on the 3R’s - Recycle, Reuse and Reduce. We will transition from traditional energy to renewable energy in the future.

Environment & Social Responsibility

26 Annual Report 2021-22

Annual Report 2021-22 27

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

SRF looks through the lens of ESG before making any key decisions on the six capitals and business strategy and planning. The details of the ESG priorities of SRF are highlighted in the table below:

Risks Operational Financial Strategic Regulatory IT & Cyber-security	Material aspects Strategic focus areas	Material aspects Strategic focus areas
Operational	Focus on implementing cutting-edge technology and energy efciency initiatives to achieve energy savings Transition to cleaner energy sources to mitigate carbon emissions Drive eforts towards reducing water consumption with water-efcient technologies, recycling and reusing wastewater and rainwater to the maximum extent possible Emphasis on the principle of 3R – Reduce, Reuse and Recycle and strive to operate in a ‘closed-loop’ through circularity in operations Continuous eforts on local sourcing of raw materials and increasing the use of recycled materials in production Implementation of Total Quality Management (TQM) for meeting evolving customer aspirations and shifting market dynamics by bringing systemic changes to maximise plant efciency and deliver diverse solutions Energy Management GHG and Air Emissions Water and Efuents Waste Management Material Total Quality Management
Financial

	Concentrated eforts on creating a favourable environment for employees to nurture and grow through structured learning and development, career advancement, and rewards and recognition programme to keep employees motivated and engaged Build a workplace that thrives on diversity and inclusion, and supports human rights Endeavour to create a safe and secure work environment by embedding health and safety in the Company culture and implementing robust systems to ensure well-being of each employee Relentless eforts to empower local communities through community initiatives focusing on vocational skills, education, natural resource management, among others Employment Occupational Health and Safety Local Communities
IT & Cyber-security
	Emphasis on capitalising new opportunities, expand product portfolio considering the evolving customer expectations and enhancing market presence Implement diferentiated business strategies, prudent capital allocation, optimum utilisation of natural resources to lower operating costs, automate processes and strengthen business processes that aid in building a sustainable business model Deliver long-term sustainable returns to shareholders by increasing market capitalisation and higher dividend pay-out Economic Performance
Strategic
	Focus on creating an eco-system which promotes efective decision-making, accountability and fnancial prudence Encourages an ethics-driven culture of accountability and responsibility for all activities with the integration of sustainability into its decision-making processes to create value Constant identifcation, assessment, monitoring and mitigation of risks to achieve business objectives Focus on robust internal control system and proactive response strategy towards identifed risks Corporate Governance Risk Management
Regulatory

Progress in FY 2021 - ’22
27,992 EHS training manhours
Increase in female workforce across the management levels by 8% as
compared to FY 2020 - ’21
More than 90% employee engagement score
211,782 benefciaries of CSR initiatives in local communities
Developed innovative products that are socially and environmentally
responsible and have zero ozone-depleting substances, low global warming
potential (GWP), recyclability and low carbon footprint
114 patents granted
12,434 Cr. revenue Dividend pay-out –212 Cr.
Implemented energy efciency initiatives, leading to energy savings of 20 TJ
914 TJ of energy consumed from renewables and biomass
1,696 Million Litres of water consumption met through recycled wastewater
Some of the plants have installed rainwater harvesting systems to
sequester rainwater
Supplying fy ash waste generated onsite for utilisation as raw material in
cement industries
Recycled materials used as raw materials in production processes
TQM-led supply chain improvements, enhancement of internal process
efciency and building a skilled workforce
Continued to collaborate with industry associations to beneft the industry and
society at large
Continued to identify and manage existing as well as emerging risks through
the robust risk management framework, integrated with the Company
strategy and planning Aspirations 2030

Operational
excellence
Environment &
Social Responsibility
Professional Reputation
and Value System
Customer
advocacy
Innovation and
Technology Leadership

Progress in FY 2021 - ’22 27,992 EHS training manhours Increase in female workforce across the management levels by 8% as compared to FY 2020 - ’21 More than 90% employee engagement score 211,782 benefciaries of CSR initiatives in local communities Developed innovative products that are socially and environmentally responsible and have zero ozone-depleting substances, low global warming potential (GWP), recyclability and low carbon footprint 114 patents granted `12,434 Cr. revenue<br>Dividend pay-out –`212 Cr. Implemented energy efciency initiatives, leading to energy savings of 20 TJ 914 TJ of energy consumed from renewables and biomass 1,696 Million Litres of water consumption met through recycled wastewater Some of the plants have installed rainwater harvesting systems to sequester rainwater Supplying fy ash waste generated onsite for utilisation as raw material in cement industries Recycled materials used as raw materials in production processes TQM-led supply chain improvements, enhancement of internal process efciency and building a skilled workforce Continued to collaborate with industry associations to beneft the industry and society at large Continued to identify and manage existing as well as emerging risks through the robust risk management framework, integrated with the Company strategy and planning	Aspirations 2030
	Operational excellence Environment & Social Responsibility Professional Reputation and Value System Customer advocacy Innovation and Technology Leadership

Annual Report 2021-22 29

Annual Report 2021-22

CORPORATE OVERVIEW STATUTORY REPORTS

FINANCIAL STATEMENTS

Value Creation Model

DRIVING BUSINESS WITH VALUES

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LONG-TERM VALUE
RESOURCE CAPITAL INPUTS VALUE CREATION APPROACH OUTPUT
CREATION
Revenue – 12,434 Cr. Sustainable cash flow and strong Operating cost – 9,068 Cr. Cash generated from operations liquidity position aiding robust
Net Debt – 2,888 Cr. – 2,106 Cr. balance sheet position
Financial Cash generating business model Dividend pay-out – Tax paid – 402 Cr. 212 Cr. Healthy dividend pay-out for investors
Unlocking future growth potential
Capital
Strong Leadership position in key
CAPEX – 2,007 Cr. segments Sales volume expansion Innovative product solution Diverse product portfolio with Plant automation and backward Effective Differentiated Export to 90+ countries multi-location facilities designed integration of value chain governance business SRF is the only fully backward to service large customers Manufactured Efficient production processes strategy integrated manufacturer of Ozone-friendly refrigerant gases Efficient manufacturing process driven through TQM principles Capital Optimum utilisation of Packaging manufacturing capacity 400+ employees in R&D, Films No. of patents granted in Robust product pipeline with Engineering & Scale-ups current reporting period - 21 continuous development (Chemical Technology Group) Total patents granted - 114 Re-engineering of products in R&D spend – 117 Cr. collaboration with customers
Intellectual Commercialisation of new
Capital Total patents filed – 361 4 state-of-the-art R&D facilities products Ability to handle complex chemistries with deep domain
expertise
Technical
Structured Learning & Stakeholder Textiles Customer Low attrition rate Talent attraction & retention
Development engagement centricity Healthy & safe workplace Productive workforce
Training hours – 27,992 hours
Employee Engagement Survey High employee engagement &
Best-in-class health and safety Score – more than 90% satisfaction levels
Human practices
Capital
Community investment -
` 21 Cr. Chemicals
Healthy relationships with Total number of beneficiaries Upliftment of the society
Social & customers, suppliers and other of CSR initiatives – 211,782 Build a socially responsible
stakeholders, supported by Stakeholder recognition and business
Relationship continuous engagement & satisfaction Customer retention
Capital long-term relationship with Digitisation & Operational
stakeholders Innovation excellence
Energy savings – 20 TJ
Reduction in GHG emissions
Strong focus on the use of
renewable energy Adequate waste disposal
mechanism Mitigation of climate change
Renewable energy used – 914 TJ
Water withdrawal – 4,819 Million Efficient use of natural impact
Natural Litres resources and reduced Demonstrating responsible
consumption corporate citizenship
Capital Total energy consumption Our values
– 10,755 TJ Reduced usage of fresh
resources
Respect Integrity Non-discrimination Excellence Well-being Biodiversity preservation
Economic
Social
Environment
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Annual Report 2021-22

The Six Capitals

At SRF, we follow a rigorous resource allocation method which is a result of meticulous planning, evaluation and conscious efforts for achieving desired return on investments which ensures the best results. This report demonstrates the performance and progress of SRF across the following six capitals against the identified material aspects:

The Company has reported its performance across the six capitals of the IR framework, namely Financial, Manufactured, Intellectual, Natural, Human and Social & Relationship . All these six capitals have created a strong base, further aiding growth and value for stakeholders. These capitals are an ideal blend of top-tier talent, state-of-the-art manufacturing capabilities, cutting-edge technologies, world-class R&D facilities, strong financials, robust governance practices, and transparency.

1. Financial

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6.
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Social & Relationship

The Capitals

Manufactured

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FINANCIAL CAPITAL

The Company’s strategic actions continue to exhibit SRFs dynamic financial management which is in line with its long-term and short-term goals. As one of the leading players in the industry, we continue to offer strong financial performance, both in terms of growth and profitability.

Human

Natural

1. Financial Capital

Sources include debt and equity financing and cash generated by operations and investments
Funds are being invested in various CAPEX projects throughout the business

2. Manufactured Capital

Investments are focused on expansion, bringing efficiency and upgrading existing equipment and infrastructure

3. Intellectual Capital

Huge investments focused on the sustainability and innovation agenda for a competitive edge
Due assessment of the returns on investment against the extent to which it might aid business growth

4. Natural Capital

Natural capital inputs such as raw materials, water, fuel and renewable energy, etc., critical to operate efficiently
Allocation of financial and human capital to secure long-term availability of the inputs

Intellectual

5. Human Capital

Investment in hiring the right people for the right job so as to maintain its status as ‘employer of choice’
Assessing the necessary skills and specialisation to deliver on the objectives

6. Social & Relationship Capital

Fundamental part that the stakeholders play in creating and sustaining an enabling external environment for the business to flourish in
Consideration of all relevant factors while making investment decisions

Material Issues Impacted

Inputs

Operating Cost – 9,068 Cr. Net Debt – 2,888 Cr.

Economic Performance

Outputs

Revenue – ` 12,434 Cr.

Cash Generated from Operations – ` 2,106 Cr.

Dividend Pay Out – 212 Cr. Profit After Tax (PAT) – 1,889 Cr. EBITDA – ` 3,146 Cr.

32 Annual Report 2021-22

Annual Report 2021-22 33

At SRF, we firmly believe that combining operational excellence with prudent financial resource allocation is critical to long-term value creation. We channelise our efforts towards maximising value for all stakeholders by implementing differentiated sustainable business practices, optimal utilisation of resources and maintaining a strong balance sheet. SRF has been focusing on growing its market presence and expanding its product portfolio by building a solid long-term sustainable business model. The Company has ensured uninterrupted business operations by mitigating business risks at source and generating returns sustainably for shareholders. We have employed prudent financial management strategies, such as sensible allocation of funds across various capitals, technology-led investments and smart branding that has allowed us to generate higher financial returns consistently and build long-term value for our stakeholders.

The Company’s focus areas are resource allocation and utilisation. Internal policies of SRF, such as those for CAPEX proposals and investment rules, establish the concepts and promote sensible capital allocation. The Company continues to assess and implement various capital structure options, maintaining a balanced equity and debt mix, producing strong cash inflows, and creating and maintaining a strong balance sheet. Our major goal is to provide our shareholders with a long-term favourable return on investments, and we ensure that any material developments that could have a negative impact on our financial position are reported and translated in our business strategies.

SRF works towards achieving optimum utilisation of financial capital across all its business verticals. The Company has taken various interventions to increase productivity, improve operational efficiency, progress towards digitalisation which in turn reduces operational cost and enhances the return value. All the stringent efforts implemented by SRF over the years and the robust financial planning has helped us in attaining an increase of 48% in revenue and ~44% in EBITDA over FY 2020 - ‘21.

The financial performance, which include - revenue, expenses, and new future opportunities, is monitored and evaluated on a regular basis, and reported publicly as and when required. While securing its position as a profitable Company, the funds generated are used to create value across all capitals, guaranteeing that the benefits of growth have a ripple effect across the Company.

Revenue & EBITDA/Revenue ( ` Cr.)

EBITDA ( ` Cr.)

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26%
25%
12,434
8,400
3,146
2,188
FY 2020-21 FY 2021-22 FY 2020-21 FY 2021-22
Revenue EBITDA/Revenue
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MANUFACTURED CAPITAL

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Our strategic expansions along with optimum resource utilisation initiatives have led to elevated performance, operational excellence, and delivery of premium products.

Total Quality Management Waste Management Economic Performance Material

Material Issues Impacted

Outputs

Inputs

Capex ` 2,007 Cr. Innovative product solution Plant automation and backward integration across the value chain Efficient production processes R22 and few dedicated agrochemical facilities were commissioned in Dahej

Sales volume expansion Export to 90+ countries

SRF is the only fully backward integrated manufacturer of ozone-friendly refrigerant gases

Annual Report 2021-22 35

Annual Report 2021-22

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Our value creation capacity is largely underpinned by our strong manufacturing capabilities. We utilise state-of-the-art facilities and highly efficient manufacturing processes to produce reliable and quality products. With our diverse portfolio, we strive to provide the highest quality of sustainable, industrial and specialty intermediates. We have achieved economies of scale through backward integration. We never compromise on our product quality and as a result we have established long-term relationships with our customers.

In most of its business categories in India, the Company is a market leader and has a large global presence with exports to more than 90 countries.

Our Manufacturing Process

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The Company is not only the largest
Technical Textiles
manufacturer of technical textiles
Business (Four
in India, but also enjoys a global
manufacturing
leadership for most of the products
sites in India) under this business.
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SRF is one of the largest
manufacturers of a Packaging Films Business
spectrum of standard
(Three manufacturing
and specialty Bi-axially Only Indian manufacturer
Oriented Polyethylene. sites in India) Chemicals Business of ozone-friendly HFCs and
(Two manufacturing specialty agro chemicals
sites in India) backed with strong
integrated value chain.
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minimum environmental impact. Our cutting-edge industrial facilities, good quality control systems, robust distribution network and efficient supply chain mechanism ensure that products are delivered safely and efficiently. The Company has an efficient maintenance system for optimum use of its machinery to achieve operational excellence. Our continual improvement mechanism is supported by the overarching Total Quality Management (TQM) system that paves the way for high levels of operational efficiency.

Our strategies and plans of action are guided by our motto – ‘continuous improvement’. Our principle – ‘We always find a better way’ – is reflected in the high-quality products that we deliver to our customers. It is also demonstrated through our innovations, technological advancements, employee engagement, professional management, transparent governance, and inclusive growth.

We constantly work toward improving the way our products and services are designed, manufactured, made available, consumed and disposed to ensure

Key Initiatives to Advance Towards Green Chemistry

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SRF is the first Indian Company to obtain the ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers) certification for R-467A, a low GWP refrigerant blend for stationary air-conditioning application by in-house patented technology

Innovative alternatives implemented to achieve better atom efficiency in several reactions. For instance, innovative chemistry developed to achieve more than 98% atom efficiency in bromination reaction at ton scale in an environment-friendly manner

Sulphur-based chlorinating reagents replaced with simple reagents for chlorination reaction

Development of environment-friendly products with low global warming potential (GWP), low ODS potential, low carbon footprint, and sustainable hydrofluorocarbon (HFC) blends

Note: SRF has two additional businesses viz. Coated Fabrics and Laminated Fabrics that are not included

Hazardous reagents and solvents replaced with non-hazardous chemicals

36 Annual Report 2021-22

Annual Report 2021-22 37

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Total Quality Management (TQM)

The SRF management way is built on the principles and methods of Total Quality Management. This management system is based on the triad of satisfying requirements of stakeholders and customers today and tomorrow, by applying systematic and scientific methods and tools, and involving every employee in making ongoing improvements.

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Quality
Impact of
Morale TQM Cost
Safety, health
Delivery
& environment
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The application of TQM practices cuts across the entire value chain of SRF’s businesses, from product conceptualisation, development, projects, manufacturing operations and sales, and to the support and enabling functions as well. Guided by the Company’s values of promoting customer centricity and ‘Easy to Do Business With’, the TQM way of working enables us to flexibility adapt to evolving customer aspirations and shifting market dynamics, so as to deliver diverse solutions to customers while maximising efficiency in operations. The methods of TQM are applied in determining the best strategic choices as well as achieving superior operational outcomes of QCDSM.

implementation, so to enable system outcomes which meet user’s requirements of functionality, quality and availability at the lowest cost.

SRF’s management way integrates principles, methodologies, management systems and a wide variety of tools, to ensure outcomes for customers as well as building capabilities for the future.

SRF’s long-term problem-solving and capability-building program, titled PSP, gained further momentum in the year gone by. This program focuses on enhancing the analytical skills, enabling us challenge difficult business problems and establish new benchmarks in quality, throughput, yields, efficiencies, reducing breakdowns, improving delivery times, satisfaction levels etc. In the last year, 76 new people were certified as Blue problem-solving, taking the no. of people currently certified to nearly 430. The program has cumulatively certified over 893 people over the years since launch. In addition, the higher level PSP Silver program

The core of the TQM framework emphasises a strong quality assurance system in each of its businesses, spanning the full product lifecycle from product planning and R&D, through the development stages, setting up of facilities, raw material procurement, manufacturing operations and supply of finished products. The method of continuous improvement or PDCA (Plan-Do-Check-Act) cycle is applied to all work systems, from the upstream planning stage through to

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Integrated approach
Management
Principles Systems Business
Customer focus Breakthroughs
(QCDSM)
Leadership: Capacity
Align for Enhancement
customer
value Methods Tools
Process focus People focus
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enabled over 20 high impact technical projects to be completed across the Company. The projects enabled SRF develop new or improved products to meet customer requirements in an efficient manner, improved supply chain practices, raised plant efficiencies and throughput, besides continuing to raise technical competencies. Overall, they resulted in approx. ` 95 crore in annualised recurrent savings in the last financial year.

SRF’s program on building strong execution and project management capabilities, titled “Execution Themes” program, gained momentum last year. Overall, nearly 200 employees are enrolled in the program, with 19 employees certified last year, taking the total to 43.

Building on our long-standing successes in problem solving, SRF launched its first advanced course on Data Science, with a chosen set of functional specialists across the Company. The program is part of SRF’s strategic shift to utilise the power of digital, industrial IoT, machine learning, and IT enablement to build capabilities in solving complex problems, with the power of emerging digital technologies and toolkits, both for managing routine operations efficiently as well as making quantum improvements.

The TQM function continued on its own digitalisation journey, refurbishing the online TQM content portal, introducing basic TQM education through e-learning modules and using hybrid models of training and guidance on projects. The strategic thrusts of SRF’s TQM application will continue towards making its operations ever-more customer focused, agile and lean, and building a strong foundation for a digital future.

Raw Materials

Our primary manufacturing processes use large quantity of key raw materials and various incidental materials; therefore we strive for sustainable sourcing of materials focusing on minimum use of fresh raw materials by recycling and reusing materials to the highest extent possible.

SRF sources its raw materials through a broad network of suppliers and vendors. The focus area for SRF is to move towards local procurement of raw materials to support local businesses and reduce the associated environmental impact. Across SRF 40-50% of key raw materials are sourced locally.

(Business Responsibility Report: Principle 2)

The detailed break-up of key raw materials by consumption across the three businesses of SRF in the last three years is highlighted in the graphs below:

Chemicals Business: Key Raw Material Consumption (MT)

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----- Start of picture text -----

Fluorspar Liquid Methanol Sulphuric Ethylene
Chlorine Acid Dichloride
FY 2020-21 FY 2021-22
116,323 114,003
85,596 84,878
76,765
67,325
30,339 31,321
16,736 15,509
----- End of picture text -----

Packaging Films Business: Key Raw Material Consumption (MT)

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----- Start of picture text -----

107,021 [110,788]
73,588 [75,289]
35,012 [35,245] 29,512 [29,438]
PET chips PP chips PTA MEG
FY 2020-21 FY 2021-22
----- End of picture text -----

Technical Textiles Business: Key Raw Material Consumption (MT)

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----- Start of picture text -----

40,402
33,172
12,255 [13,460]
Caprolactam Pet chips
FY 2020-21 FY 2021-22
----- End of picture text -----

Annual Report 2021-22 39

Annual Report 2021-22

SRF continues to enhance the usage and share of recycled input materials in its manufacturing processes through its product reengineering and innovation. Furthermore, through increased reuse of input materials, waste generated at source is also minimised.

Highly Commended Winner of the Best Working Capital Management Solution at the Adam Smith Awards Asia 2021

SRF Annual Report FY 2020 - ‘21 wins a Silver and a spot in the Top 100 Communications Materials at the Global Communications Competition, the 2021 Spotlight Awards by the League of American Communications Professionals LLC

Our Certifications and Accreditations

SRF’s efforts on sustainability have been recognised and rewarded on multiple platforms. SRF has received several prestigious industry awards in recognition of its expertise and purpose-led approach from various stakeholders, viz., customers, suppliers, and accreditation agencies. Below is a brief highlight on the same:

SRF’s Packaging Films Business – Indore conferred the Quality Sustainability Award at the international convention, organised by the International Academy for Quality (IAQ)

TTB Gummidipoondi was conferred the ‘CORONA WARRIOR AWARD-2021’
CII-SR EHS Excellence (Bronze) Award - 2021 for commitment in EHS practices in the large-scale industry category (won by Technical Textiles Business)
TTB Gwalior was recognised with a certificate of appreciation for relief work in the flood-hit areas of Bhind district (MP) by the Collector
Certificate of Sustainability by BW BUSINESSWORLD – Top 50 category
SRF Limited won the ROTARY CSR AWARD 2021 for exemplary work in BASIC EDUCATION & LITERACY
Mr. Ashish Bharat Ram, CMD of SRF Ltd. conferred the “Transformational Leader Award - Mid Cap Company category” for 2020 by the Asian Centre for Corporate Governance & Sustainability

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INTELLECTUAL CAPITAL

We aim to progressively enhance strategic excellence and enrich customer experience through strategic investments in research and development, innovation and technological advancement.

Material Issues Impacted

Employment

Outputs

Inputs

400+ employees in the Chemical Technology Group (CTG)
21 patents granted in current reporting period
361 patents filed till date
Total patents granted till date – 114
Commercialisation of new products
57 molecules developed
` 117 Cr. R&D spend
4 state-of-the-art R&D facilities

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STATUTORY REPORTS

FINANCIAL STATEMENTS

SRF believes that research and development (R&D) is a key driver for achieving growth by any organisation. Our R&D investments and programs are directed towards the evolving market and climate change requirements.

SRF’s Aspirations 2030 emphasises the Company’s commitment to innovation. A qualified in-house R&D team specialises on developing new technologies, resulting in world-class product development centres with cutting-edge in-process and product testing facilities, as well as analysis and product development

technologies. We also collaborate with prestigious research institutes to leverage technical expertise in identified areas, and we collaborate with customers to identify evolving needs for further product and service development, allowing us to stay on top of new innovations and evolving skill sets to develop new products and processes.

R&D activities have set up four dedicated R&D centres located across Tamil Nadu, Rajasthan, Haryana and Madhya Pradesh.

Accelerating Digital Transformation

SRF has worked diligently to achieve operational excellence by focusing on resource optimisation and producing high-quality, long-lasting products through the incorporation of digitisation into its core business strategy and across its value chain.

The Company has invested in futuristic and scalable digital platforms to initiate enterprise

transformation through process digitisation and digital workflows, analytics, automation, and cloud product suites. This has helped in accelerating strategic decision-making and modernising the Company’s IT landscape. This has also been pivotal in mobilising a digitally empowered workforce and have a competitive edge in the evolving business market, thereby creating value for its customers.

Key Focus Areas

Packaging Films Business

Chemicals Business

Packaging Films Business strives to create efficient, differentiated, safer and sustainable packaging solutions
The Chemicals Technology Group (CTG) at SRF is actively engaged in the development of new products and process technologies for our Specialty Chemicals and Fluorochemicals businesses
Our technology-driven credentials, globally harmonised quality systems and in-house resin manufacturing, allows upstream modifications and helps us improve continuously
The CTG employs more than 400 research minds upstream modifications to develop innovative and helps us improve green chemistries, achieve continuously process improvements This R&D centre is fully
and demonstrate viability equipped with a pilot
of new chemistries for the polymerisation plant, pilot
future printing, lamination and
Our exemplary team of coating machine and other scientists and engineers, state-of-the-art equipment who come from to simulate customer prestigious institutions, processes on pilot scale, work on R&D projects to offering a key advantage to improve the quality of reduce concept-to-market products and enhance cycle times efficiency processes and operations

Technical Textiles

Business

The R&D facility for Technical Textiles Business includes pilot facilities for polymerisation, spinning, twisting, and dipping, enabling ideation and development of new products and also raising internal technical capabilities for current products.

SRF supply chain efficiency focuses on three critical areas as part of the operational excellence efforts, asset optimisation and sales and marketing effectiveness as listed below:

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Salesforce Digitalisation of ERP Automation supply chain Upgradation

Salesforce Automation - SRF plans to implement Customer Relationship Management (CRM) across all manual sales management processes to achieve complete digitalisation. This initiative has already been implemented in Technical Textiles Business and the plan is to scale it to other businesses in the future.

ERP Upgradation - To increase the operational effectiveness, the current ERP system is being updated with the introduction of new modules. For instance, SRF is in the process of building an Enterprise Command Centre on the current ERP system. This will monitor data and information in real-time, ensuring optimisation and efficiency in operations.

Digitalisation of Supply Chain - SRF plans to digitalise its entire value chain by increased supplier interactions through a supplier information and engagement portal.

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FINANCIAL STATEMENTS

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NATURAL CAPITAL

As the world is shifting to a low-carbon economy and embracing sustainable practices to develop greener solutions, SRF continues to strive to maximise resource efficiency, thereby minimising the impact of its operations on the environment.

Energy Management GHG & Air Emissions Water & Effluents Waste Management

Material Issues Impacted

Outputs

Inputs

Strong focus on the use of renewable energy

Energy savings – 20 TJ

Reduction in GHG emissions

Renewable energy and biomass consumption – 914 TJ

Adequate waste disposal mechanism

Efficient use of natural resources and

Water withdrawal – 4,819 Million Litres

reduced consumption

Total energy consumption – 10,755 TJ

Reduced usage of fresh resources

Biodiversity preservation

With sustainability at the core of our organisation, we work towards making a positive impact on the environment beyond complying with applicable laws and regulations. During the year, we have directed focused efforts to optimise our resource consumption, including initiatives to reduce energy and water consumption, waste generation and emissions. At present the Company does not have any project related to Clean Development Mechanism.

Furthermore, SRF complies with all applicable environmental regulations and periodically conducts Environmental Impact Assessments, wherever required. We have implemented environmental management systems in accordance with ISO 14001 standards across several plant facilities and reinforced the Company’s Environment Health & Safety Policy across businesses in line with our commitment to environmental protection. (Business Responsibility

Report: Principle 6)

Key strategic focus areas for climate change mitigation and environment protection

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----- Start of picture text -----

Commitment to
biodiversity
Water
conservation
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----- Start of picture text -----

Effective waste
management practices
Energy efficiency & carbon
emission mitigation
----- End of picture text -----

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Energy Management

We are committed to optimising energy consumption throughout our operations and reducing the associated carbon footprint to combat climate change. As part of SRF’s energy management strategy, we have set a high priority for the implementation of energy management systems and processes. SRF has taken calibrated steps to optimise energy needs while increasing the share of renewable energy in the overall energy mix of the Company. Below highlights the details of our direct and indirect energy consumption:

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----- Start of picture text -----

Direct Energy Indirect Energy
8,965 TJ 1,790 TJ
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We have a total of 18.95 MW installed capacity of renewable energy, which includes an onsite 5 MW solar power plant and an offsite 13.95 MW wind power plant. In FY 2021 - ‘22, our energy consumption from renewable sources stood at 914 TJ (including biomass consumption). Going forward, we are driving efforts towards implementing solar power generation projects and entering into power purchase agreements with third-party agencies to increase our share of renewable energy in our total energy mix.

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FINANCIAL STATEMENTS

Total Energy consumption (TJ)

Energy Intensity (TJ/Crore ` )

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----- Start of picture text -----

10,755 1.23
1.08
8,615
FY 2020-21 FY 2021-22 FY 2020-21 FY 2021-22
----- End of picture text -----

We have adopted a systematic approach to optimise our energy consumption levels. We have retrofitted lightening and replaced high energy consuming manufacturing equipment in our Chemicals, Packaging films and Technical Textiles business. Our total energy savings are 5,504 MWh (20 TJ). Details of savings achieved in each business is tabulated below:

Energy savings initiatives

2,803 MWh 1,231 MWh

1,470 MWh 5,504 MWh

Chemicals Business Packaging Films Business Packaging Films Business TOTAL SAVINGS

(Business Responsibility Report: Principle 6)

SRF is committed to progressively reducing greenhouse gas (GHG) emissions by identifying significant emission sources and implementing plans to minimise the carbon footprint. We take a proactive and vigilant approach towards tackling issues of climate change. As part of this process, we develop greenhouse gas (GHG) emissions inventories to map our impacts and identify opportunities for improvement. With our efforts in emission monitoring and GHG inventorisation, SRF’s Fluorochemicals Business is first Indian chemical Company to obtain ISO 14064-1:2006 certification for GHG emissions verification.

a regular basis. We are compliant with the mandates of respective Pollution Control Boards of the states in which we operate. As on 31[st] March 2022, there is one pending notice received from the State Pollution Control Board, which was resolved subsequently.

(Business Responsibility Report: Principle 6)

Water Management

The Company’s strategic focus areas towards effective water management include reducing water consumption with water-efficient technologies, recycling and reusing treated wastewater in operations and increasing rainwater harvesting.

(Business Responsibility Report: Principle 6)

SRF is maximising its efforts to ensure efficient water management to reduce dependency on freshwater and ensure optimum utilisation. We have installed wastewater purification systems to ensure that the quality of wastewater generated is within the permissible limits set by the respective Pollution Control Boards. In addition, we re-use treated wastewater for humidification and the development of green-belt areas. The Company conducts ETP/STP

Air Emissions

SRF has installed a real-time air emissions monitoring system to ensure that emissions from manufacturing processes are continuously monitored and kept to a minimum. Automated monitoring mechanisms are in place to ensure air emissions from manufacturing processes are in check. Stack monitoring for utilities like boilers, diesel generators etc. are conducted on

treated wastewater monitoring through third-party agencies to monitor wastewater quality characteristics before discharging the treated wastewater into garden areas.

We have a continued focus on rainwater harvesting for groundwater recharge as well as utilisation within the plants. As on date, PFB - Indore (SEZ), Bhiwadi, TTBM and TTBT Plants have installed rainwater harvesting systems.

In FY 2021 - ‘22, our water withdrawal stood at 4,819 Million Litres, which was procured from various sources including state municipal corporation, third-party water, etc. About 1,696 Million Litres of total water consumption was met through recycled wastewater. The graphs below depict the water procured and the recycled wastewater reused within the plants across.

Water Withdrawal (Million Litres)

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----- Start of picture text -----

4,819
4,616
FY 2020-21 FY 2021-22
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*Water withdrawal data of FY 2020 - ‘21 has been updated and includes rainwater harvested and reused

Water Recycled (Million Litres)

	1,013		1,696	Total Rainwater Harvested during
				FY 2021 - ‘22 is 1,472
				ML (Groundwater recharge as well
				as reuse within the
FY	2020-21	FY	2021-22	facilities)

*Water recycled data of FY 2020 - ‘21 has been updated and includes steam condensate water recovery

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Waste Management

Our waste management strategy focuses on internal waste management including - measurement and categorisation of waste, and following the 3R principle – Reduce, Reuse and Recycle.

In PFB unit, we recycle non-usable metallised BOPET film waste by unique demetallisation process. The Company is also collaborating with cement companies to utilise fly ash generated from our operations as an input in their production process. (Business Responsibility Report: Principle 2 & 6)

Biodiversity Management

SRF considers biodiversity to be a critical concern and has taken several steps to preserve biodiversity in the areas surrounding our business units. We conducted several reforestation campaigns in and around our business units and with the schools that are part of our CSR programs to increase biodiversity. We also conduct Environmental Impact Assessments to ensure business operations are conducted in a way that protect biodiversity in the neighbouring communities. SRF’s units are not located around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental approvals / clearances are required.

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FINANCIAL STATEMENTS

Human Resource Management: Focus Areas

HUMAN CAPITAL

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Our People are the force behind SRF’s consistent and successful performance. Our steady growth would not have been possible without the active contribution of our people – our most valuable assets

Health and safety Employee training and development Gender equity

Material Issues Impacted

Labour issues

Outputs

Inputs

Employee Engagement Survey Score – more than 90%

Permanent employees – 6,674

EHS training hours – 27,992 hrs

A safe, rewarding and inspiring place for employees to grow

Health and Safety standards as per best-in-class practice

8% increase in female workforce across all management levels

SRF is committed to creating a safe and healthy work environment that helps increase productivity and enhance employee happiness. Our people centric policy, established by the human resource team, helps us ensure an engaging and participatory workplace.

SRF recognises that knowledgeable and skilled human capital propels a Company in the right direction. Human capital is both valuable and crucial for our business operations and for creation of long-term value for its stakeholders. It is our constant endeavour to evolve as a relationship-based Company that recognises and nurtures the unique capabilities of its employees. We seek to promote diversity and inclusivity by providing a conducive environment for professional advancement.

Human Rights Grievance Redressal Mechanism Training & Development	Employee Engagement Diversity & Inclusion Health & Safety	Skill Evaluation
		Performance Management & Feedback
		Labour Relations

Our employees play a vital role in attaining our business objectives. To nurture the talent pool, SRF places a strong emphasis on cultivating a culture of learning and motivation while focusing on increasing productivity and efficiency among the employees. For this purpose, we ensure continuous training and better health and safety practices. Furthermore, to support growth and well-being of employees, SRF ensures protection and promotion of human rights, ensures diversity and equal opportunities to all, and focuses on appropriate and timely reward and recognition. SRF’s Human Resource Management is driven by its core Values (RINEW) that guide the Company’s actions and behaviours:

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Our Values
R I N E W
Respect Integrity Non-discrimination Excellence Well-being
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FINANCIAL STATEMENTS

Diversity and Inclusion

equality. The principle emphasises the business case for corporate action to promote gender equality and women’s empowerment. SRF is an equal opportunity employer that values a gender-balanced workforce.

The Company is progressively working towards creating an empowering environment that embraces diversity and inclusion. SRF is committed towards fostering a diverse and inclusive workplace, free from any sort of harassment and/or discrimination based on gender identity, age, ethnicity, sexual orientation, disability, faith, or marital status. SRF has adopted the Women’s Empowerment Principles, along with 3,000 other organisations around the world, partnering with UN Women on the critical journey of achieving gender

SRF places focus on sensitising people, especially leadership, to constantly challenge the hidden biases, and providing policies that support and encourage people from diverse backgrounds.

(Business Responsibility Report Principle 3)

Detailed break-up of SRF’s workforce is presented below:

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S. Total FY 2019 - ‘20 FY 2020 - ‘21 FY 2021 - ‘22
No. employees by category
1 Senior Management 64 2 70 3 67 3
2 Middle Management 193 16 191 16 194 17
3 Junior Management 558 76 606 82 652 89
4 Non-Management Staff 5,241 149 5,267 151 5,498 154
Temporary/
5 3,933 182 4,652 203 7,072 361
Contractual Workers
TOTAL 9,989 425 10,786 455 13,483 624
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During FY 2021 - ’22, SRF also hired 3,187 temporary / contractual employees.

In addition, the Company has taken proactive steps that encourage disability inclusion by providing equal opportunities to people with disabilities. During the reporting period, SRF has 18 employees with disabilities in its employment.

(Business Responsibility Report Principle 3)

Detailed breakup of SRF’s employee turnover is presented below:

S. No.	Employee turnover in	FY 2019 - ‘20	FY 2019 - ‘20	FY 2020 - ‘21	FY 2020 - ‘21	FY 2021 - ‘22	FY 2021 - ‘22
	each individual category
1	Senior Management	6	0	2	0	3	0
2	Middle Management	20	2	28	2	14	0
3	Junior Management	78	12	53	9	99	16
4	Non-Management Staf	241	24	356	13	323	32

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development has shifted from being reactive to being proactive, keeping in mind new requirements imposed by the changing environment. Research suggests that post COVID, a competency that will decide the future of organisations is ‘Emotional Intelligence’ of the organisation’s human capital. SRF too, places emphasis on this competency and conducted several developmental initiatives across the organisation covering the entire management under this. For the year ahead, ‘Agility’ and resilience’ have been added to the list of competencies that need emphasis.

Training and Development

SRF believes that an organisation’s growth is directly linked to the growth and development of its employees. For this purpose, we offer on-the-job learning modules and trainings for all our employees to give them a chance to grow and enhance their skills.

To boost employees’ morale and meet dynamic organisational needs, we, at SRF, have a well-managed Training and Development process under which we conduct regular training programs and modules. These modules are divided into three categories, i.e., Technical, Behavioural and Functional. Under our Training and Development process, we identify individual training needs, and prepare an annual training calendar for all employees. Additionally, customised training programs are also deployed to attain the intended outcomes. The focus of

Not only this, we, at SRF, also believe in instilling a culture of safety at the workplace. For this, we conduct safety and self-defence trainings, fitness classes and employee assistance programs as part of our well-being initiatives.

Below table highlights training hours of contractual and permanent employees during FY 2021 - ‘22:

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Total training hours FY 2019 - ‘20 FY 2020 - ‘21 FY 2021 - ‘22
S.
for permanent and
No.
contractual employees
1 Senior Management 1,297 12 478 34 1,619 112
2 Middle Management 5,097 275 4,264 296 22,286 537
3 Junior Management 15,517 2,395 14,647 1,629 39,669 4,309
4 Non-Management Staff 82,000 1,927 33,702 1,418 72,731 2,029
Temporary/
5 28,464 1,451 23,473 1,380 16,767 1,723
Contractual Workers
TOTAL 132,374 6,060 76,564 4,757 153,072 8,710
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In brief, during the year, 70% of the employees were covered under Health, Safety and Skill Training.

(Business Responsibility Report Principle 3)

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FINANCIAL STATEMENTS

Skill Evaluation System

Our skill evaluation system enables us to evaluate and improve the skill level of our employees. The skill level measurement is based on 3 core parameters: Assignment, Observation, and Interview, with each having different weightages. As a practice, we annually evaluate a majority of our employees on their skill sets over a range of technical parameters including:

Job-specific competencies Skill-specific competencies Soft skill competencies Environment, health Emergency response plan and safety

(Business Responsibility Report Principle 3)

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Commitment towards compliance and adherence to all applicable laws pertaining to human rights

Human Rights

SRF has a long history of upholding and preserving human rights and is against all forms of discrimination and human rights violations. SRF has a zero-tolerance approach for human rights violations.

Protection against sexual harassment at the workplace

Providing a healthy and safe work environment

Encourage formation of various committees that have representation from the workforce and make suggestions on measures to improve working conditions in the Company

A strong leadership commitment is essential in building and maintaining an ethical culture where human rights are given utmost priority. SRF’s Human Right Policy covers the following aspects:

Committed to ensure continuous upgradation of the skills and competence of employees

Protection against forced and/or child labour Providing equal opportunity

Well-being of employees

or compulsory labour across all units and discourages the same with the business associates/partners like suppliers, contractors, etc. During the current reporting period, there were no complaints relating to child labour, forced labour, involuntary labour at SRF. However, there were three complaints related to sexual harassment which were duly resolved. There are no outstanding complaints at the end of the financial year.

Reporting human rights violations

The Code of Conduct and the Whistle-blower policies are the pillars of the Human Rights policy in the organisation. SRF maintains strict adherence towards protection of human rights with supplier/contractor and does not employ anybody below the age of eighteen years. SRF also prohibits the use of forced

(Business Responsibility Report: Principle 3 & 5)

SRF provides a healthy work environment and offers equal growth opportunities to all its employees. The Company’s leave policy includes provisions for maternity and paternity leaves for all employees. Equal opportunities are provided to those who re-join after availing parental leave. Detailed break-up of parental leave entitlement and usage of these by employees in the last three years is highlighted below:

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Parameter FY 2019 - ‘20 FY 2020 - ‘21 FY 2021 - ‘22
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Parameter	FY 2019 - ‘20	FY 2020 - ‘21	FY 2021 - ‘22
Number of employees entitled to parental leaves duringreporting period	6,299	6,386	6,674
Number of employees who took parental leaves duringreporting period	482	384	436
Number of employees who re-joined back afterparental leaves	425	375	432

100%

of employees are covered by Health insurance, Accident insurance, Maternity benefits, Paternity benefits & day care facilities.

98% permanent employees returned to work

Performance Management and Feedback

As part of creating an open and transparent work culture, managers are encouraged to use 360-degree feedback mechanisms to receive regular feedback and adjust their working style accordingly.

Performance development reviews and feedback are critical pillars that shape the growth trajectory of employees in an organisation. At SRF, employees are evaluated on a regular basis and relevant positive as well as constructive feedback is provided to them to help identify their strengths and weaknesses. Adequate support is provided to them to help in minimising gaps and in leveraging their strengths.

SRF’s compensation philosophy is designed to ensure promotion of meritocracy, and rewards that are commensurate with a role’s market value. In fact, we maintain a high percentile position in the talent marketplace, especially for critical roles and resources. All roles are evaluated using a well-established and reliable methodology and accordingly grade structures are implemented. This is done once every 2-3 years to remain aligned to the market.

SRF has adopted a robust performance management and development system which helps the organisation sustain a fair and transparent culture. All employees, at all levels, are evaluated and career development assessments and roadmaps are prepared accordingly.

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FINANCIAL STATEMENTS

Rewards and Recognition

SRF has implemented a Rewards and Recognition program that is solely based on merit and helps in encouraging and retaining a rich talent pool. The Rewards and Recognition program includes monetary, non-monetary, informal day-to-day and semi-formal and non-monetary recognition.

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Special Significant
Achievement Awards Contribution Award
Significant Long Service Award
Contribution Award
Spot Awards
Protsahan Awards
Formal Monetary
Award Award
Semi formal &
Informal/ Non-monetary
Day to Day Award
Verbal and Happy Hours
Written appreciation
Work Anniversary
Team appreciation
Appreciation Cards
Team Celebration
54 Annual Report 2021-22
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Development of Rewards and Recognition Online Portal

Online Rewards and Recognition

With a view to place higher focus on reward and recognition, SRF has named its R&R policy - PRAISE. Under this policy, one can find several modes of recognition, both formal and in-formal, that are available at the disposal of our empowered managers. These include multiple avenues such as spot awards, special achievement/significant contribution awards, birthday vouchers, well done, thank you, nice idea cards, etc., along with the annual ‘protsahan’ awards.

SRF designed and developed an online Reward and Recognition portal internally that caters to entire SRF India. Below are the key highlights of the portal:

Auto-triggered wishes and vouchers on birthdays, with an intimation to the entire team

Flexible solutions for managers and colleagues so they can extend a Spot Award to a subordinate/colleague (redeemable online)

The local HRs also arrange in-person and/ or group recognition events at regular frequency in order to ensure public appreciation of awardees.

Option for managers to recommend a subordinate for a Special Achievement Award or a Significant Contribution Award

Virtually appreciation of subordinate/ colleague with a Thank you, Nice Idea and/ or Well-Done card

for the future along with corrective action plans. According to the Employee Engagement Survey, the overall employee engagement was more than 90%. Several other externally conducted surveys like the Gallup Survey and the eNPS also offer anonymous options to employees to share their feedback. In addition, open houses and discussions with senior management are also conducted on a regular basis to solicit feedback from employees for the betterment of the organisation and well-being of all.

Employee Engagement

Maintaining a high level of Employee engagement is the cornerstone of SRF’s human resource management philosophy. Employee engagement activities are held on a regular basis and these help in building a strong relationship with all employees. The Company has adopted a systematic approach to assess the satisfaction levels of employees through an annual Employee Engagement Survey. The survey is crucial for the identification of critical areas of improvement, key issues or concerns, and recommendations

*eNPS is a score that indicates a former employee’s willingness to re-join the Company. Gallup Survey is an employee engagement survey. Both are calculated independently by an external agency.

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FINANCIAL STATEMENTS

In FY 2021- ’22, eNPS was

recorded as 66%, which is the highest in the last 3
eNPS years and shows an 18% increase from last year

Industry average for eNPS for manufacturing sector is 26%

Grievance Redressal Mechanisms

At SRF, we are cognizant of the value of grievance redressal systems and use these to strengthen stakeholder relationships and ensure efficient business operations. SRF has put in place formal grievance procedures that help in effective implementation of policies, protection of human rights and steering the organisation towards a more sustainable future. SRF offers several platforms to seek feedback and suggestions from its employees ensuring an inclusive culture across the organisation.

Labour Relations

SRF believes in creating a culture of open communication so as to build a strong and healthy relationship with its workers. SRF has implemented robust systems, such as SA 8000, across several plants. They also monitor and ensure wellbeing of workers and provide a safe and productive work environment. The Company has set up various committees that have representatives of both management and workers and these provide a platform for communication and ensure transparency. These include employee

91% women said they feel safe working at SRF
85% employees are confident in the ability of the
Gallup leadership to successfully Survey face the challenges ahead
80% employees said they have a work environment where people can try, fail, and learn from mistakes

For this purpose, ‘People Redbook Systems’ have been put in place at various locations. These grievance handling systems provide a platform to employees to voice their grievances. Employees and workers can anonymously submit their grievances in offices and plants through complaint and suggestion boxes. The grievance procedures clearly outline the resolution process in a fair and independent manner while respecting confidentiality.

associations, canteen committees, health & safety committees, etc., and significantly contribute to workers’ well-being and satisfaction.

These associations are recognised by the management and provide a forum for interaction and resolution of issues between management and employees. These employee associations have about 26% of permanent employees as members.

(Business Responsibility Report: Principle 3)

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Occupational Health and Safety

and distributes its products in an environment conscious manner.

SRF strongly believes that safety is an integral part of conducting business. As a responsible organisation, SRF strives to ensure a safe and healthy working environment for its workforce.

Emergency response plans, safety procedures and processes have been deployed across the organisation to ensure a healthy and safe workplace.

To keep the employees safe, SRF educates them on the importance of safety practices and trains them to deal with adverse events and at the same time, trains them on ways to avoid such incidents. This is done through regular safety trainings and mock drills.

In addition to the above, EHS committees have been formed across plants to build a safety-oriented culture across the organisation. This helps in ensuring proactive identification and avoidance of safety incidents. SRF has systems in place to monitor and address issues at an early stage and help take pre-emptive measures and report near-miss incidents.

The Company strives to achieve zero injury/ fatality/incidents/accidents across all its plants and manufacturing units. The Company handles, stores

100%

of total eligible employees are covered by PF and gratuity benefits and 7% by ESI

During the year, no complaints were made by employees and workmen on working

conditions and health and safety issues.

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Concerted efforts are directed towards conducting health and safety trainings for the entire workforce on several aspects related to health and safety to drive a cultural transformation around safety in the organisation. The focus is also to bring about behavioural change even at the shop floor level through continuous trainings, awareness programs and proactive identification of unsafe situations. These include the following: -

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----- Start of picture text -----

Work Permit Systems
Emergency Personal Protective
Preparedness & Equipment (PPE)
Response Training
Lock
Out Tag Out (LOTO)
Process
First Aid
Safety Management
Hazard
Identification
and Risk
Assessment (HIRA)
----- End of picture text -----

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----- Start of picture text -----

Total training hours FY 2019 - ‘20 FY 2020 - ‘21 FY 2021 - ‘22
S.
for permanent and
No.
contractual employees
1 Permanent employees 41,189 1,579 17,805 934 24,508 3,484
Temporary/
2 34,592 1,902 27,216 1,591 16,095 1,622
Contractual employees
TOTAL 75,781 3,481 45,021 2,525 40,603 5,106
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SRF’s Packaging Films Business at Indore SEZ and DTA Plants are certified in accordance with the OHSAS 18001:2007 Standard, which is an international occupational health and safety management system. Also, these plants conform to the Five Star Occupational Health & Safety Standard.

The graphs below highlight the health and safety performance over the last two years:

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----- Start of picture text -----

First Aid Cases Lost Time Lost Time Injury Million man-hours
Injuries Frequency Rate worked
(LTIFR) per million
man-hours worked
133 12 26.7
11
100 23.6
0.51
0.41
FY 2020-21 FY 2021-22 FY 2020-21 FY 2021-22 FY 2020-21 FY 2021-22 FY 2020-21 FY 2021-22
----- End of picture text -----

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----- Start of picture text -----

S. No. Category Unit FY 2019 - ‘20 FY 2020 - ‘21 FY 2021 - ‘22
----- End of picture text -----

S. No.	Category	Unit	FY 2019 - ‘20	FY 2020 - ‘21	FY 2021 - ‘22
1	Management members in the health & safety committee	No.	174	174	213
2	Non-management members in the health & safety committee	No.	193	177	219
TOTAL		No.	367	351	432

Creating a safe workplace amidst the rising COVID-19 pandemic

Enforcing guidelines for security personnel and admin staff in maintaining discipline

SRF has undertaken several efforts to mitigate the impact of the unprecedented COVID-19 pandemic on its business and stakeholders. Some of the key initiatives undertaken amidst the rising COVID-19 cases in the county are mentioned below:

COVID-19 Insurance Policy coverage

Providing financial assistance to employees in need

Ensuring supplies, including food and medicines to employees in need
Tie-ups with virtual doctor programs to assist employees in need

Staying virtually connected with employees

Reaching out to employees in distress

Creating awareness on safe and healthy work practices for all employees and imparting behavioural trainings
Implementation of guidelines and measures for ensuring social distancing and safe hygiene practices for common services
Identifying areas of potential health hazards and taking necessary action
Deploying extensive communication including health/travel-related advisories
Ensuring scheduled sanitisation of workplace, vehicles and rest rooms

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SOCIAL & RELATIONSHIP CAPITAL

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Our inclusive approach to business operations has strengthened our stakeholder relationships while reinforcing our efforts for environmental protection and value-added performance.

Employment Occupational Health & Safety Local Communities

Material Issues Impacted

Outputs

Inputs

Total CSR beneficiaries 211,782 Stakeholder recognition and satisfaction

Community investment of ` 21 Cr.

Healthy relationship with customers, suppliers and other stakeholders, supported by continuous engagement and long-term relationship with stakeholders

(Business Responsibility Report: Principle 8)

SRF has made sincere efforts toward building strong and thriving relationships with all relevant stakeholders. These include customers, suppliers, local communities, etc. The Company has been consciously pursuing the agenda of empowering stakeholders to create sustainable value for all.

Besides building sustainable social capital, the Company has taken adequate measures to ensure that its operations do not have any impact on the environment or the ecosystems where our units operate.

Transforming Lives in Local Communities

At SRF, we believe in inclusive growth for all. We have committed ourselves to transforming the lives of local communities through meaningful initiatives, especially for the upliftment of disadvantaged and marginalised sections of society. Towards this end, we ensure continuous monitoring and improvements in our CSR initiatives so we can adequately address the emerging needs of the local communities and create shared value for all. The focus of such initiatives are to provide Quality Education, Empower Youths though Vocational Sill Development, Art and Culture promotions, Healthcare, Natural Resource Management and Disaster Management.

The SRF Foundation oversees all of our CSR activities in India, including one of our largest community programs. Before implementing any CSR project, we conduct a needs assessment of the local communities around our operating units through a dialogue with them. This exercise provides us with useful insights

Water Treatment Plant at Delhi Golf Club

SRF provided financial support to Delhi Golf Club in developing “Bio STP Technology”. This technology involves extracting sewage water up to 3 MLD from NDMC pipeline running through the Golf Course and processing it to obtain irrigable water.

about the prevailing issues, needs and aspirations of the communities as well as their apprehensions regarding the project, if any. It also enables us in seeking the necessary community support for the efficient and timely implementation of the project. The CSR team collaborates with Government, NGOs and local community members in implementing the necessary interventions. We also encourage our employees to volunteer for social activities at all our plant locations under the aegis of our CSR Council.

(Business Responsibility Report: Principle 8)

The local communities are vested with full responsibility and ownership of the programs, post their completion by SRF. This enables successful adoption and sustenance of these CSR programs. It also enables capacity building of local communities. We monitor the outcomes and milestones of our programs and carry out independent impact assessments at regular intervals. We recently conducted the social impact assessment for our ongoing CSR programs at Mewat district in Haryana and Bharuch district in Gujarat.

The contribution by SRF Foundation has been recognised by several agencies of the Government of India. The Foundation has received prominent awards such as the National CSR Award in Challenging Circumstance by Government of India, Best Corporate Foundation in Education Category by CSR Times and ICSI CSR Excellence Award by Institute of Company Secretaries of India.

(Business Responsibility Report: Principle 8)

The salient advantages of this technology are as follows:

DGC will have adequate water throughout the year to maintain the two golf courses and its associated facilities

The treatment technology is proven The method is efficient and cost effective The process is environment-friendly and safe

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Wow on Wheels (WoW)

‘HP WoW’ vehicle is a 20-seater computer and IT-enabled vehicle powered by green energy and backed by numerous software suites and cloud integration. This program is implemented by SRF Foundation as a mobile solution to help bridge the digital divide between urban and rural areas. This is achieved by bringing easy information technology access to the isolated and disadvantaged groups. It promotes IT enabled education through e-learning modules and basic computer literacy courses for children living in the rural areas. With added services of Common Service Centre (CSC), it benefits the local population by providing a hassle-free access to Government programs and initiatives.

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Rural Education Program

Under the Rural Education Program, SRF Foundation is working towards upgradation of infrastructure in Government schools. These schools are transformed into ‘Model Schools’ by providing them with upgraded physical infrastructure along with digital tools. Some of the upgrades include - improved sanitation facilities, access to clean drinking water, technology application, mobile science education, sports and games promotion, construction of well-equipped libraries and science labs, BaLA (Building as learning aid) paintings etc.

Apart from the physical transformation of schools, the SRF Foundation imparts leadership and curriculum training to teachers and the School Management Committees (SMCs). The Foundation works closely with them to raise the quality of teaching and create the best possible learning environment in these schools.

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Flood Relief – Bhind, Madhya Pradesh

The SRF Foundation worked relentlessly to support the flood-affected Mehgaon, Raun, and Amayan Tehsils of Bhind district and its adjoining areas when heavy rains ravaged the Bhind District of Madhya Pradesh. When constant rain brought life to a halt and caused widespread damage, SRF Foundation mobilised its team and distributed relief kits to provide immediate sustenance to the affected families. As a part of Corporate Social Responsibility, the SRF Foundation distributed 500 packets of food, which consisted of 17 items worth ` 7,27,483, along with clothes and other possible help for flood relief under Disaster Management. SRFF’s prompt response and goodwill was welcomed as well, for which SRFF was awarded a token of appreciation by the Commissioner of Chambal Division, Shri Ashish Saxena (IAS) himself.

Flood Relief – Gummidipoondi, Tamil Nadu

Heavy rains pounded Tamil Nadu’s Thiruvallur district, dumping over 1,000 mm of rain in just four weeks, and they wreaked havoc on people’s lives and property. The disaster was of such a magnitude that the Revenue Officers - Tahsildar and Revenue

101,038

Flood Relief – Manali, Tamil Nadu

Severe rain in Manali, Tamil Nadu in 2021 adversely impacted the lives of thousands of people. SRF Foundation contributed in the process of helping out the Tamil Nadu Rescue Force, consisting of police officers, by providing them with 40 pairs of gum boots, so that their safety remains assured while aiding others. The Foundation also did its part for the community by arranging for 200 bedsheets, 100 pillows and 32 bed covers for the disaster-struck people. The provision of food was also done, for both the policemen and the people in affected communities.

Inspector of Gummidipoondi approached SRF Foundation to assist in the recovery efforts of the affected people in and around the Gummidipoondi area of Thiruvallur. The Foundation also ensured the delivery of 101,038 in sponsored essential provisional items such as rice, dal, oil, and food to the 500 flood-affected families.

COVID-19 Response

SRFF organised several vaccination camps for COVID-19 that have managed to reach 115 local communities in the country in the year 2021-22. This camp was organised in collaboration with Sharda Hospitals to reach places where reach of vaccines through conventional methods was difficult and where there was heightened fear and distrust of the vaccine among the people. Overall, pan-India SRF Foundation’s noble actions impacted 15,000 people through vaccination drives.

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15,000 people

Benefited through vaccination drive

During the second wave, the Foundation also provided oxygen support to severely-affected areas and impacted 1,000 beneficiaries through oxygen concentrators and 200 people through oxygen plants. Additionally, also provided essential anti-COVID equipment such as masks and sanitisers to the students at Government High School, Manali to help them battle this dangerous virus. These recipients of these goods in the school included more than 30 Teachers and 500 students.

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Vocational Skills

Basic Electrician Training Program

SRF Foundation offers skill training in basic electrician trade through 13 centres across country. The trainees are from the poorer parts of rural society. A total of 401 people were trained in basic electrician training programme in 2021-22, with more than 60% of them being placed.

Spoken English Training Program

The teach India is a spoken English Program being run by SRF Foundation since 2010 in Nuh Block of district Nuh (Mewat) aims to build proficiency in the spoken aspect of the English Language. The students completing the course can seek good job in various MNCs in the service sector such as Retail Chains, Food outlets, call centers, schools, NGOs etc. and can easily earn about ` 8-12 k per month. Last year, 249 students successfully completed the Spoken English Language course.

Basic Computer Literacy Program

In 2017, SRF Foundation launched the Basic Computer Training Program aiming to provide knowledge and the required skill set to the youth of Nuh, Mewat, Haryana under its Rural Vocational Skills Program (RVSP). This is a three-month-long program which is free of cost for the students. During the course, students learn about MS Word, MS Excel, MS PowerPoint, and the internet. They also learn about personality development through personality development classes. During the financial year of 2020- ‘21, the program successfully mobilised 247 students in 4 batches. All 247 students completed the course.

401 people

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Partnering with Customers in their Growth Journey

information about the product is disclosed in the labels. This includes instructions pertaining to usage of the product, product grade, dimensions, gross weight, and any other applicable regulatory requirements. Other details such as material factsheet, safety instructions, Zero ODS, information related to handling of product, hazard class (for hazardous materials), or any other special information requested by the customer is also disclosed in the labels.

SRF engages with its customers in diverse and meaningful ways to build sustainable and trust-based partnership with them. The Company seeks customer feedback through periodic customer satisfaction surveys. We utilise robust resolution mechanisms to ensure that customer feedback is incorporated on a regular basis, and corrective measures are taken promptly.

In addition to the required state and national laws, our Chemicals business comply with all applicable international rules and regulations, such as the e Globally Harmonised System (GHS), Classification, Labelling and Packaging (CLP) notification, International Maritime Dangerous Goods (IMDG) Code, etc.

As on 31[st] March 2022, 5% of the total complaints received during the financial year were pending for resolution.

(Business Responsibility Report: Principle 9)

Product Labelling

(Business Responsibility Report: Principle 9)

To maintain transparency in terms of information disclosure, SRF ensures that all important and relevant

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Sustainable Product Offerings

We believe that the key to building a sustainable business is to offer products that are sustainable, affordable and accessible to all. Toward this end, SRF has been consciously pursuing the development of sustainable products by investment in design thinking, disruptive innovation and new technology deployment.

were trained in basic electrician training programme in 2021-22

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Some of the key products are highlighted below:

R125 refrigerant gas is ozone-safe and has zero Ozone-depleting substances (ODS)

Socially and Low-micron Packaging environmentally Films offer low carbon responsible footprint with sustained product Quality parameters offerings by SRF Thermal-resistant BOPP offers ease of recyclability

R422B is a non-toxic/ nonflammable refrigeration gas, that contains zero ODS and has a very low global warming potential (GWP)

(Business Responsibility Report: Principle 2)

Sustainable Supply Chain

SRF constantly works towards nurturing sustainable relationships with its supply chain partners by building trust, fair treatment, and transparency in all procurement-related decisions. We have made consistent effort to work with suppliers who are ethical and believe in sustainable development. We are also taking steps to improve the environmental footprint of our supply chain. As part of our ongoing drive to optimise natural resource management, we are now integrating recycled raw materials in our business operations.

We procure a wide range of raw materials and other products from various suppliers. We prefer sourcing locally from farmers and manufacturers wherever possible to support the local economy. We also encourage our contractors to hire workers from neighbouring towns and villages. Our chemical plant in Bhiwadi procures mustard husk from small farmers in Haryana and Rajasthan.

Our Company incorporates ESG aspects related to health and safety, human rights, labour laws, environment, etc. within the supplier agreements. We follow a Code of Conduct for assessing the ESG performance of our suppliers. A self-assessment exercise in accordance with the SA-8000 standard

is carried out for the suppliers and vendors. Additionally, SRF also undertakes the ‘Supplier Quality System’ assessment by evaluating them on various parameters like resource management, compliance with environmental requirements and certifications, customer complaint handling, storage etc. The Company follows a structured process which includes identification of gaps implementation of corrective action plans to address these in a timely manner. Based on the outcome of this assessment, rating is also provided to key suppliers. SRF conducts awareness meetings on procurement procedures and requirements with the suppliers on a regular basis to align them with the Company’s expectations regarding sustainability and product quality.

(Business Responsibility Report: Principle 2)

In order to improve efficiency and optimisation levels across supply chain, SRF is in the process of automating its supply chain. All manual processes, such as supply chain mapping for raw material, have been digitised. The system generates production batches automatically, thereby eliminating manual intervention and improving the overall efficiency of the system. In some key segments, SRF also plans to integrate the customer and supplier portals to gain quick access to information on key supply chain metrics.

Business Responsibility Report

[As per Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015]

About SRF

SRF Limited is a chemical-based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. The Company is widely recognised and well respected for its R&D capabilities globally, especially in the niche domain of chemicals. SRF is a market leader in most of its business segments in India and also commands a significant global presence in some of its businesses, with operations in four countries namely, India, Thailand and South Africa and Hungary. The Company has commercial interests in more than ninety countries and classifies its main businesses as Technical Textiles Business (TTB), Chemicals Business (CB), Packaging Films Business (PFB) and Other Businesses.

About this report

The Securities and Exchange Board of India (SEBI) as per its (Listing Obligations and Disclosure Requirements) Regulations, 2015 has mandated the inclusion of a “Business Responsibility Report” (BRR) as part of Company’s Annual Report for top 1,000 listed entities based on market capitalisation at the BSE Ltd. (BSE) and the National Stock Exchange of India Ltd. (NSE). The reporting framework is based on the ‘National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVGs)’ released by the Ministry of Corporate Affairs, Government of India, in July 2011 which contains 9 Principles and Core Elements for each of those 9 Principles. Following is the Business Responsibility Report of our Company for FY 2021 - ‘22, as per the format prescribed by SEBI.

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Section A: General Information about the Company

1. Corporate Identity Number : L18101DL1970PLC005197 (CIN) of the Company

2. Name of the Company : SRF Limited 3. Registered Address : The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, Second Floor, Mayur Place, Noida Link Road, Mayur Vihar Phase I Extn, Delhi - 110 091

4. Website : www.srf.com 5. Email id : [email protected] 6. Financial Year reported : 2021-22

7. Sector(s) that the Company : SRF Limited is a chemical-based multi-business entity engaged in is engaged in (industrial the manufacturing of industrial and specialty intermediates. The activity code-wise) Company classifies its businesses as Technical Textiles, Chemicals, Packaging Films and Other Businesses.

8. List three key products/services that the Company manufactures/provides (as in balance sheet) SRF’s product portfolio can be broadly categorised into:

Technical Textiles
Chemicals
Packaging Films

Technical Textiles include Tyre Cord Fabrics, Belting Fabrics and Industrial Yarn. Chemicals include Fluorochemicals and Specialty Chemicals. Packaging Films include Polyester Films viz. BOPET (Biaxiallyoriented polyethylene terephthalate) and BOPP (Biaxially oriented polypropylene film)

9. Total number of locations where business activity is undertaken by the Company

i) Number of International Locations (Provide details of major 5)

Details of SRF’s international businesses, through its overseas subsidiaries, are given below:

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Sl. No. Name of Subsidiary and Country Major products/categories
----- End of picture text -----

1.	SRF Industries (Thailand) Ltd., Thailand	Packaging Films
2.	SRF Flexipak (South Africa)(Pty) Ltd.	Packaging Films
3.	SRF Industex Belting (Pty) Ltd.	Chemicals Business and Packaging Films (Trading)
4.	SRF Europe KFT	PackagingFilms Business

ii) Number of National Locations

SRF has manufacturing plants in 10 locations across the country.

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State Location
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Tamil Nadu	Manali
Tamil Nadu	Viralimalai
Tamil Nadu	Gummidipoondi
Gujarat	Dahej
Rajasthan	Jhiwana
Madhya Pradesh	SEZ Indore
Madhya Pradesh	Industrial Growth Centre Pithampur
Madhya Pradesh	Malanpur
Uttarakhand	Kashipur

Section B : Financial Details of the Company

1. Paid-up Capital ( **) :** 296.42 Crore **2. Total Turnover (** ) : 9,953.44 Crore 3. Total profit after taxes ( **) :** 1,507.01 Crore **4. Total Spending on Corporate :** Total spending on CSR for FY 2021 - ‘22 is 18.68 Crore Social Responsibility (CSR) as (2.008% of average profit after tax of the past 3 years calculated percentage of profit after tax in accordance with Companies Act, 2013). This is detailed in the (%) calculated in accordance Annual Report of CSR Activities, ANNEXURE-II to the Board’s with Companies Act, 2013 Report.

5. List of activities in which : List of CSR activities are detailed in the Annual Report of CSR expenditure in 4 above has Activities, ANNEXURE-II to the Board’s Report. been incurred

Section C : Other Details

1. Does the Company have any Subsidiary Company/Companies ?

Following are the wholly-owned subsidiary companies:-

SRF Global BV, The Netherlands (Foreign wholly-owned Subsidiary)
- SRF Industries (Thailand) Ltd., Thailand (Foreign wholly-owned Subsidiary)
SRF Flexipak (South Africa) (Pty) Ltd., South Africa (Foreign wholly-owned Subsidiary)
SRF Industex Belting (Pty) Ltd., South Africa (Foreign wholly-owned Subsidiary)
SRF Europe Kft, Hungary (Foreign wholly-owned Subsidiary)
SRF Holiday Home Ltd. (Domestic wholly-owned Subsidiary)
SRF Altech Limited (Domestic wholly-owned Subsidiary)

2. Do the Subsidiary Company/Companies participate in the BR initiatives of the parent Company ? If yes, then indicate the number of such subsidiary Company(s)

The subsidiary companies operate in different jurisdictions/geographies and are engaged in their own BR initiatives as applicable to them.

3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with, participate in the BR initiatives of the Company ? If yes, then indicate the percentage of such entity/entities ? [Less than 30%, 30-60%, More than 60%]

SRF’s regional offices are situated at Delhi, Mumbai, Chennai and Kolkata.

10. Markets served by the Company – Local/State/National/International

SRF serves both national and international markets spread across Asia, Africa, Europe, North America and South America.

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Principle 9	Customer value	NA	NA	NA	NA
Principle 8	Inclusive growth	Yes	No	Yes, Board of Directors MD and Director (CSR)	Yes
Principle 7	Responsible public policy advocacy	NA	NA	NA	NA
Principle 6	Environmental protection	Yes	Yes ISO 14001 (Environment Management System) ISO 50001 (Energy Management System) The policies are in line with the best practices followed in the industry	Yes, Director – Environment, Health & Safety	Yes
Principle 5	Promotion of human rights	Yes	NA	Yes, Board of Directors President - HR	Yes
Principle 4	Stakeholder engagement	No	No	Yes, Board of Directors MD and Director (CSR)	Yes
Principle 3	Employee well-being	Yes	Yes OHSAS 18001:2007 SA 8000 (Social Accountability)	Yes, Board of Directors CEO, President - HR	Yes
Principle 2	Sustainability in life-cycle of products	NA	NA	NA	NA
Principle 1	Ethics, transparency & sustainability, accountability	Yes	NA	Yes, Board of Directors President - HR	Yes
Questions		Has the policy been developed in consultation with relevant stakeholders?	Does the policy conform to any national / international standards? If yes, specify.	Has the policy been approved by the Board? If yes, has it been signed by MD / owner / CEO / appropriate Board Director	Does the Company have a specifed Committeeof the Board / Director / Ofcial to oversee the implementation of the policy?
Sl. No.		2.	3.	4.	5.

Principle 9	Customer value	6. Indicate the link for the policy to be viewed online# 1. Code of Conduct for Directors & Senior Management Personnel 2. Whistle- blower Policy 3. Code of Conduct for Prevention of Insider Trading NA No Yes 1. CSR Policy 2. Dividend Distribution Policy No 1. Policy against Sexual Harassment 2. Whistle- blower Policy No NA Yes 1. CSR Policy NA	7. Has the policy been communicated to the relevant internal and external stakeholders? Yes NA Yes Yes Yes Yes NA Yes NA	8. Does the Company have an in-house structure to implement the policy? Yes NA Yes Yes CSR Policy is implemented through SRF Foundation Yes Yes NA CSR Policy is implemented through SRF Foundation NA	9. Does the Company have a grievance redressal mechanism related to the policy/ policies to address stakeholders’ grievances related to the policy /policies? Yes NA Yes Yes Yes Yes NA Yes NA	10. Has the Company carried out Independent audit/ evaluation of the working of this policy by an internal or external agency? No NA Yes No Yes Yes NA No NA	# CSR Policy : https://www.srf.com/wp-content/uploads/2021/04/25032021-Final-SRF-Corporate-Social-Responsibility-policy.pdf Dividend Distribution Policy: https://www.srf.com/wp-content/uploads/2020/11/Dividend-Distribution-Policy.pdf Code of Conduct for Directors & Sr. Management: https://www.srf.com/wp-content/uploads/2020/11/Code-of-Conduct-for-Directors-and-Senior-Management-Personnel.pdf Code of Conduct for Prevention of Insider Trading: https://www.srf.com/wp-content/uploads/2021/09/2021-05-05-Code-of-Conduct-to-Reg-Monitor-n-Report-Trading-V5SRF.pdf Whistle blower policy: https://www.srf.com/wp-content/uploads/2022/02/SRF-Whistleblower-Policy.pdf
Principle 8	Inclusive growth
Principle 7	Responsible public policy advocacy
Principle 6	Environmental protection
Principle 5	Promotion of human rights
Principle 4	Stakeholder engagement
Principle 3	Employee well-being
Principle 2	Sustainability in life-cycle of products
Principle 1	Ethics, transparency & sustainability, accountability
Questions
Sl. No.

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2A If answer to S. No. 1 against any principle, is ‘No’, please explain why : (Tick up to 2 options)

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----- Start of picture text -----

Sl. Question Principle 2 : Principle 7 : Principle 9 :
No. Sustainability Responsible public Customer value
in life-cycle of policy advocacy
products
----- End of picture text -----

The Company has not understood the Principles
The Company is not at a stage where it finds itself in a position to formulate and implement the policies on specified principles
The Company does not have financial or manpower resources available for the task
It is planned to be done within next 6 months
It is planned to be done within the next 1 year

	next 1 year
6.	Any other reason (please specify)	SRF manufactures	SRF is a member	SRF is a business
		intermediate	of various industrial	to business player
		products which	and trade bodies. We	and, as such, the
		are largely	actively participate	customers are largely
		supplied to other	in these forums on	manufacturing
		industries for	issues and policy	companies which
		manufacturing of	matters that impact	have stringent
		the fnal product.	the interest of our	quality control
		Any sustainability	stakeholders. We	measures in place
		initiative has	prefer to be a part	and the quality of
		to consider the	of the broader	the product supplied
		fnal product	policy development	by SRF is a part of
		as a whole	process by making	the agreements with
		for which the	representations	them. The product
		manufacturer of	to Chambers of	is manufactured
		the fnal product	Commerce, giving	as per the agreed
		is responsible.	our comments	parameters and
			on the proposed	specifcations.
			amendments in the
			relevant legislations
			and being a part of
			discussions with the
			representatives of the
			relevant authorities in
			open forums. Hence,
			we do not feel such
			a policy is necessary
			for us.

3. Governance related to BR

Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR performance of the Company. Within 3 months, 3-6 months, Annually, More than 1 year

The Board of Directors discuss the BR performance annually. CSR Committee discusses the relevant areas pertaining to CSR annually.

Does the Company publish a BR or a Sustainability Report ? What is the hyperlink for viewing this report? How frequently it is published ?

The financial year 2021-22 is the sixth year for which the provisions of Business Responsibility Reporting of the Listing Regulations are applicable to the Company. The Company is publishing BRR report for financial year 2021-22 as part of its Annual Report. The Annual Report is available on the website of the Company at https://www.srf.com/investors/reports-and-results/.

Section E : Principle-wise performance

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BRR Principle Requirement Section Page No.
Principle 1 Does the policy relating to Codes and Policies 16
Businesses should ethics, bribery and corruption
conduct and cover only the Company?
govern themselves Does it extend to the Group /
with integrity in JVs / Suppliers / Contractors
a manner that is / NGOs / Others?
Ethical, Transparent How many stakeholder Codes and Policies 17
and Accountable complaints have been
received in the past financial
year and what percentage
was satisfactorily resolved
by the Management?
Principle 2 List up to 3 of your products Social and Relationship Capital - 68
Businesses should or services whose design Sustainable product offerings
provide goods and has incorporated social or
services in a manner environmental concerns,
that is sustainable risks and / or opportunities.
and safe Does the Company have Social and Relationship Capital - 47, 68
procedures in place for Sustainable supply chain
sustainable sourcing
(including transportation)?
If yes, what percentage of
your inputs was sourced
sustainably?
Has the Company taken Social and Relationship Capital - 68
any steps to procure goods Sustainable supply chain
and services from local &
small producers, including
communities surrounding
their place of work?
Does the Company have Manufactured Capital - Raw 39
a mechanism to recycle Materials
products and waste? If yes, Natural Capital - Waste
what is the percentage of Management
recycling of products and
waste (separately as <5%,
5-10%, >10%).
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Annual Report 2021-22 75

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STATUTORY REPORTS

FINANCIAL STATEMENTS

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----- Start of picture text -----

BRR Principle Requirement Section Page No. BRR Principle Requirement Section Page No.
Principle 3 Please indicate the total Human Capital - Human 50 Principle 5 Does the policy of the Human Capital - Human 53
Businesses should number of employees. Resources Management Businesses should Company on human rights Resources Management
respect and promote Please indicate the total Human Capital - Human 50 respect and promote cover only the Company or
the well-being human rights extend to the Group/ JVs /
number of employees hired Resources Management Suppliers / Contractors /
of all employees,
on temporary / contractual / NGOs / Others?
including those in casual basis.
their value chains How many stakeholder Human Capital - Human 53
Please indicate the number Human Capital - Human 50 complaints have been Resources Management
of permanent women Resources Management received in the past financial
employees. year and what percent was
satisfactorily resolved by
Please indicate the number Human Capital - Human 50
the management?
of permanent employees Resources Management
with disabilities. Principle 6 Does the policy related to Natural Capital 45
Businesses should Principle 6 cover only the
Do you have an employee Human Capital - Human 56
association that is Resources Management respect and make Company or extends to the
recognised by Management? efforts to protect Group / JVs / Suppliers /
and restore the Contractors / NGOs / others?
What percentage of your Human Capital - Human 56 environment Does the Company have Natural Capital - Energy 45
permanent employees are Resources Management strategies/ initiatives Management
Members of this recognised to address global
employee association? environmental issues such
Please indicate the number Human Capital - Human 53 as climate change, global
warming, etc.?
of complaints relating to Resources Management
child labour, forced labour, Does the Company identify Risk Management 24
involuntary labour, sexual and assess potential
harassment in the last environmental risks?
financial year and pending,
as on the end of the financial Does the Company have Natural Capital - Emissions 45
year. any project related to Clean
Development Mechanism?
What percentage of your Human Capital – Health and 53 Whether any environmental
under mentioned employees Safety Training compliance report is filed?
were given safety & skill up-
Has the Company undertaken Natural Capital - Energy 45-46
gradation training in the last
any other initiatives on – Management
year?
clean technology, energy
Principle 4 Has the Company mapped Stakeholder Engagement 18 efficiency, renewable energy,
Businesses should its internal and external etc.
stakeholders?
respect the Are the Emissions/Waste Natural Capital - 46
interests of and be
Out of the above, has the Stakeholder Engagement 18 generated by the Company Emissions
responsive to all its Company identified the within the permissible limits Natural Capital - Waste
stakeholders
disadvantaged, vulnerable & given by CPCB/SPCB for Management
marginalised stakeholders. the financial year being
reported?
Are there any special Stakeholder Engagement 18
initiatives taken by the Number of show cause/ Natural Capital - 46
Company to engage legal notices received from Emissions
with the disadvantaged, CPCB/SPCB which are Natural Capital - Waste
vulnerable and marginalised pending (i.e. not resolved Management
stakeholders? to satisfaction) as on end of
Financial Year.
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76 Annual Report 2021-22

Annual Report 2021-22 77

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BRR Principle Requirement Section Page No.
Principle 7 Is your Company a member Industry Associations 17
Businesses, when of any trade and chamber or
engaging in influencing association?
public and regulatory Have you advocated/lobbied Industry Associations
policy, should do through above associations
so in a manner that for the advancement or
is responsible and improvement of public
transparent good?
Principle 8 Does the Company have Social and Relationship Capital – 61
Businesses specified programmes / Upliftment of local communities
should promote initiatives / projects in
inclusive growth pursuit of the policy related
and equitable to Principle 8?
development Are the programmes / Social and Relationship Capital – 61
projects undertaken through Upliftment of local communities
in-house team / own
foundation / external NGO /
government structures / any
other organisation?
Have you done any impact Social and Relationship Capital – 61
assessment of your Upliftment of local communities
initiative?
What is your Company’s direct Social and Relationship Capital – 60
contribution to community Upliftment of local communities
development projects?
Have you taken steps to Social and Relationship Capital – 61
ensure that this community Upliftment of local communities
development initiative is
successfully adopted by the
community?
Principle 9 What percentage of Social and Relationship Capital 67
Businesses should customer complaints/ - Partnering with customers in
engage with and consumer cases are pending their growth
provide value to as on the end of financial
their consumers in a year?
responsible manner Does the Company display Social and Relationship Capital – 67
product information on the Product labelling
product label, over and
above what is mandated as
per local laws?
Is there any case filed by Codes and Policies 17
any stakeholder against
the Company regarding
unfair trade practices,
irresponsible advertising
and / or anti-competitive
behaviour during the last
five years and pending as
on end of financial year?
Did your Company carry Social and Relationship Capital 67
out any consumer survey / - Partnering with customers in
consumer satisfaction trends? their growth
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SRF Limited

(CIN: L18101DL1970PLC005197)

Regd. Office: The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, 2[nd] Floor, Mayur Place, Mayur Vihar Phase I Extn, Delhi – 110091

Tel. No: (+91-11) 49482870, (+91-124) 4354400, Fax: (+91-11) 49482900, (+91-124) 4354500 Email: [email protected] website: www.srf.com

Notice

of the Company with effect from April 1, 2022. Other terms and conditions of his appointment passed by the shareholders in their meeting held on August 17, 2020 shall remain the same.

Notice is hereby given that the 51[st] Annual General Meeting of SRF Limited will be held on Thursday, July 21, 2022 at 11.00 a.m. through Video Conferencing (“VC”) / Other Audio Visual Means (“OAVM”) facility to transact the following businesses:-

“RESOLVED FURTHER THAT the Board of Directors of the Company including any duly constituted Committee thereof be and is hereby authorized to do all acts and take all such steps as may be necessary, proper or expedient to give effect to this resolution.”

Ordinary Business

To receive, consider and adopt the standalone and consolidated audited financial statements of the Company for the financial year ended March 31, 2022 along with the Reports of the Auditors’ and Board of Directors’ thereon.
Re-designation of Mr. Kartik Bharat Ram (DIN: 00008557) as Joint Managing Director
To appoint a Director in place of Mr. Ashish Bharat Ram (DIN: 00671567), who retires by rotation and being eligible, offers himself for reelection.
To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution:

Special Business

“ RESOLVED THAT pursuant to the provisions of Sections 196, 197, 198, 203 and other applicable provisions, if any, of the Companies Act, 2013 (the Act) (including any statutory modification or re-enactment thereof for the time being in force) read with Schedule V to the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended from time to time, approval of the members of the Company be and is hereby accorded for the re-designation of Mr. Kartik Bharat Ram (DIN: 00008557), as Joint Managing Director of the Company with effect from April 1, 2022. Other terms and conditions of his appointment passed by the shareholders in their meeting held on August 31, 2021 shall remain the same.

Re-designation of Mr. Ashish Bharat Ram (DIN: 00671567) as Chairman and Managing Director
To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution :

“ RESOLVED THAT pursuant to the provisions of Sections 196, 197, 198, 203 and other applicable provisions, if any, of the Companies Act, 2013 (the Act) (including any statutory modification or re-enactment thereof for the time being in force) read with Schedule V to the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended from time to time, approval of the members of the Company be and is hereby accorded for the re-designation of Mr. Ashish Bharat Ram (DIN: 00671567), as Chairman and Managing Director

“RESOLVED FURTHER THAT the Board of Directors of the Company including any duly constituted Committee thereof be and is hereby authorized to do all acts and take all such steps

78 Annual Report 2021-22

Annual Report 2021-22 79

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

as may be necessary, proper or expedient to give effect to this resolution.”

Appointment of Mr. Vellayan Subbiah (DIN: 01138759) as a Non-Executive and Non-Independent Director of the Company

To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution :

“RESOLVED THAT in accordance with the provisions of Sections 150, 152 and other applicable provisions, if any, of the Companies Act, 2013 (the “Act”) and Rules framed thereunder and the applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the “Listing Regulations’’) (including any statutory modification(s), amendment(s) or reenactment(s) thereof, for the time being in force), the Articles of Association of the Company, based on the recommendations of the Nomination and Remuneration Committee and the Board of Directors of the Company (the “Board”), Mr. Vellayan Subbiah (DIN: 01138759) who was appointed as an Additional Non-Executive NonIndependent Director of the Company with effect from May 10, 2022 and in respect of whom the Company has received a notice in writing under Section 160 of the Act from a member proposing his candidature to the office of Director, be and is hereby appointed as a Non-Executive NonIndependent Director, whose office shall be liable to retire by rotation.”

“RESOLVED FURTHER THAT the Board be and is hereby authorised to do all acts, deeds, matters, things and take all such steps as may be necessary, proper or expedient to give effect to this resolution.”

Ratification of Remuneration of Cost Auditors for financial year 2022-23

To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution :

“ RESOLVED THAT pursuant to the provisions of Section 148 and all other applicable provisions, if any, of the Companies Act, 2013

and the Companies (Audit and Auditors) Rules, 2014 (including any statutory modification(s) or re-enactment thereof, for the time being in force), the remuneration payable to the Cost Auditors appointed by the Board of Directors of the Company, to conduct the audit of the cost records of the Company for the financial year ending March 31, 2023 as provided below, be and is hereby approved and ratified:

Name of Cost Business Remuneration Auditor payable H Tara & Co. Technical 3.00 lakhs plus Textiles applicable taxes (Membership Business and reimbursement No. 17321) and Other of actual out of Businesses pocket expenses Sanjay Gupta Chemicals 5.25 lakhs plus & Associates Business applicable taxes and and reimbursement (Membership Packaging of actual out of No. 18672) Films pocket expenses Business

Appointment of Mr. Raj Kumar Jain (DIN:01741527) as an Independent Director of the Company

To consider and if thought fit, to pass with or without modification(s), the following resolution as a Special Resolution :

“ RESOLVED THAT in accordance with the provisions of Sections 149, 150, 152 read with Schedule IV and other applicable provisions, if any, of the Companies Act, 2013 (the “Act”) and Rules framed thereunder and the applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the “Listing Regulations”) (including any statutory modification(s), amendment(s) or reenactment(s) thereof, for the time being in force), the Articles of Association of the Company, based on the recommendations of the Nomination and Remuneration Committee and the Board of Directors of the Company (the “Board”), Mr. Raj Kumar Jain (DIN:01741527), who was appointed as an Additional Non-Executive Independent Director of the Company with effect from May 09, 2022 and who has submitted a declaration

that he meets the criteria for independence as provided in Section 149(6) of the Act and Regulation 16(1)(b) of the Listing Regulations and who is eligible for appointment and in respect of whom the Company has received a notice in writing under Section 160 of the Act from a member proposing his candidature to the office of Director, be and is hereby appointed as an Independent Director of the Company, not liable to retire by rotation, to hold office for a term of 5 years commencing from May 09, 2022 to May 08, 2027.”

“ RESOLVED FURTHER THAT the Board be

and is hereby authorised to do all acts, deeds, matters, things and take all such steps as may be necessary, proper or expedient to give effect to this resolution.”

or invitation to subscribe to Offer Redeemable Non-Convertible Debentures of the Company on private placement

To consider and if thought fit, to pass with or without modification(s), the following resolution as a Special Resolution :

“ RESOLVED THAT pursuant to the provisions of Sections 42, 71, 179 and any other applicable provisions of the Companies Act, 2013 read with Companies (Prospectus and Allotment of Securities) Rules, 2014 (including any statutory modification(s) or re-enactment thereof, for the time being in force), the Board of Directors of the Company (which term shall be deemed to include any Committee of the Board duly

authorized by it in this regard in accordance with the applicable provisions of the said Act) be and is hereby authorised to issue, offer or invite subscriptions for secured/unsecured redeemable non-convertible debentures, in one or more series/tranches, aggregating upto ` 1500 crores (Rupees fifteen hundred crores only), on private placement basis, and on such terms and conditions as the Board of Directors may, from time to time, determine and consider proper and most beneficial to the Company including as to the timing of issue of such Debentures, the consideration for the issue, the utilisation of the issue proceeds and all other matters connected with or incidental thereto.

RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorised to do all acts and take all such steps including the power to sub-delegate the powers as may be necessary, proper or expedient to give effect to this resolution.”

By Order of the Board of Directors

Rajat Lakhanpal

VP (Corporate Compliance) & Date : May 30, 2022 Company Secretary Place : Gurugram Membership No. ACS 12725

SRF Limited

(CIN: L18101DL1970PLC005197) Regd. Office: The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, 2[nd] Floor, Mayur Place, Mayur Vihar Phase I Extn, Delhi – 110091

80 Annual Report 2021-22

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STATUTORY REPORTS

FINANCIAL STATEMENTS

NOTES

Explanatory Statement pursuant to Section 102 of the Companies Act, 2013, which sets out details of material facts relating to the Special businesses to be transacted at this AGM, is annexed hereto.
Ministry of Corporate Affairs (“MCA”), vide Circular No. 14/2020 dated April 8, 2020, Circular No.17/2020 dated April 13, 2020 read with Circular No. 20/2020 dated May 5, 2020 read together with Circular No. 02/2021 dated January 13, 2021 and 2/2022 dated May 5, 2022 (collectively referred to as ‘MCA Circulars’) and SEBI vide its circular dated May 12, 2020, January 15, 2021 and May 13, 2022 (collectively referred to as ‘SEBI Circulars’) has permitted to hold Annual General Meeting (AGM) through Video Conferencing (VC) or Other Audio Visual means (OAVM).
In compliance with applicable provisions of the Companies Act, 2013 (“the Act”) read with the aforesaid MCA Circulars and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), the 51[st] AGM of the Company is being conducted through VC/OAVM. Deemed Venue for meeting will be Registered Office: The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, 2[nd] Floor, Mayur Place, Mayur Vihar Phase I Extn, Delhi – 110091.
National Securities Depository Limited (NSDL), will be providing facility for voting through remote e-voting, for participation in the 51[st] AGM through VC/OAVM facility and e-voting during the AGM.
Since, the meeting is being conducted through VC/OAVM, facility of appointing proxies to attend and vote at the meeting on behalf of the members of the Company is not available and hence the proxy form is not annexed to this notice. However, Body Corporates are entitled to appoint authorized representatives to attend the AGM through VC/OAVM and participate thereat and cast their votes through e-voting.

Body Corporates who intends to authorize representatives to participate and vote on their behalf in the meeting to be held through VC/ OAVM are requested to send, in advance, a duly

certified copy of the relevant board resolution/ letter of authority/power of attorney to the Scrutinizer by e-mail to [email protected] and to the Company at [email protected] through its registered E-mail Address.
The attendance of members (members’ login) attending the AGM through VC/ OAVM shall be reckoned for the purpose of Quorum under Section 103 of the Companies Act, 2013 and hence no attendance slip is attached to the notice.
Pursuant to the applicable provisions of the Companies Act 2013, unpaid/unclaimed dividends up to the financial year 2014-15, were transferred to the Investor Education & Protection Fund (IEPF). Besides the dividend so transferred, Company has also transferred the relative share scrips in respect of dividends which remained unpaid for a continuous period of seven years to the demat account of IEPF Authority, in accordance with the applicable provisions of Companies Act, 2013 and Rules made thereunder. It may be noted that once the unclaimed / unpaid dividend and/or shares are so transferred; the same can only be reclaimed by a shareholder from the IEPF Authority in accordance with the applicable provisions of the Companies Act 2013 and relevant Rules made thereunder by following the prescribed procedure in this regard. The IEPF Rules and the application Form (Form IEPF-5), as prescribed by the Ministry of Corporate Affairs, are available on the website of the Ministry of Corporate Affairs at www.iepf.gov.in. Details of the unpaid/ unclaimed dividend and shares transferred to IEPF from time to time also have been uploaded on the “Investors Section” of the website of the Company viz. www.srf.com.

Members, who have not encashed their dividend pertaining to financial year 2015-16 onwards, are advised to write at [email protected] to M/s. Kfin Technologies Limited, Registrar of the Company immediately for claiming the same.

Members desiring any information/ clarification on the financial statements or any of the resolutions as detailed in the Notice are requested to write to the Company on or before July 14, 2022 through an E-mail to [email protected], specifying his/

her name along with Demat account details. The same shall be replied by the Company suitably.

The Register of Directors and Key Managerial Personnel and their shareholding maintained under Section 170 of the Companies Act, 2013, the Register of contracts or arrangements in which directors are interested under Section 189 of the Companies Act, 2013, ESPS Certificate by Secretarial Auditor dated May 30, 2022 that SRF Limited Long term Share based Incentives Plan, 2018 has been implemented in accordance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and in accordance with the resolutions of the company passed through Postal Ballot on March 26, 2018. All documents referred to in the Notice will also be available for electronic inspection without any fee by the members from the date of circulation of this Notice up to the date of AGM, i.e. July 21, 2022. Members can inspect the same by sending an E-mail to [email protected].
Pursuant to the MCA Circulars and SEBI Circulars, the Notice of the 51[st] AGM and the Annual Report for the financial year 2021-22 are being sent only by email to the Members whose name appear in the register of members/depositories as at closing hours of business on June 17, 2022. Members may note that the Notice and Annual Report 2021-22 will also be available on the Company’s website www.srf.com, websites of the Stock Exchanges, that is, BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and www. nseindia.com, respectively, and on the website of NSDL, the e-voting agency at www.evoting. nsdl.com. The physical copy of the Notice along with Annual Report shall be made available to the Member(s) who may request for the same in writing to the Company.
Those Members, whose email address is not registered with the Company or with their respective Depository Participant/s, and who wish to receive the Notice of the 51[st] AGM and the Annual Report for the year 2021-22 and all other communication sent by the Company, from time to time, can get their email address registered by following the steps as given below:-
a. For Members holding shares in physical form, please send scan copy of a signed
- request letter mentioning your folio number, complete address, email address to be registered along with scanned self attested copy of the PAN and any document (such as Driving Licence, Passport, Bank Statement, AADHAR) supporting the registered address of the Member, by email to the Company’s email address at [email protected] or to Registrar & Transfer Agent email address at [email protected]
b. For the Members holding shares in demat form, please update your email address through your respective Depository Participant/s.
The Company has sent individual letters to all the Members holding shares of the Company in physical form for furnishing their PAN, KYC details and Nomination pursuant to SEBI Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/ CIR/2021/655 dated November 3, 2021. The aforesaid communication is also available on the website of the Company.
Members may please note that SEBI vide its Circular No. SEBI/HO/MIRSD/MIRSD_ RTAMB/P/CIR/2022/8 dated January 25, 2022 has mandated the Listed Companies to issue securities in demat form only while processing service requests viz. Issue of duplicate securities certificate; claim from Unclaimed Suspense Account; Renewal/ Exchange of securities certificate; Endorsement; Sub-division/ Splitting of securities certificate; Consolidation of securities certificates/ folios; and Transposition. Accordingly, Shareholders are requested to make service requests by submitting a duly filled and signed Form ISR – 4, the format of which is available on the Company’s website. For Transmission cases shareholders are requested to submit Form ISR-5 as specified vide SEBI Circular no. SEBI/HO/MIRSD/MIRSD_RTAMB/P/ CIR/2022/65 dated May 18, 2022. Members holding equity shares of the Company in physical form are requested to kindly get their equity shares converted into demat/electronic form to get inherent benefits of dematerialisation and also considering that physical transfer of equity shares/ issuance of equity shares in physical form have been disallowed by SEBI.

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STATUTORY REPORTS FINANCIAL STATEMENTS

Pursuant to Section 72 of the Companies Act, 2013 read with Rule 19(1) of the Rules made thereunder, Shareholders are entitled to make nomination in respect of shares held by them in physical form. Shareholders desirous of making nominations are requested to send their requests in Form SH.13, which is available on the website of the Company. Further, SEBI vide its Circular dated November 3, 2021 has mandated to furnish Form ISR-3 for opting out of Nomination by physical shareholders in case the shareholder do not wish to register for the Nomination.
To prevent fraudulent transactions, members are advised to exercise due diligence and notify to their Depositories Participants (DPs) in respect of their electronic share accounts and to the Company’s Registrar of any change in address or demise of any member as soon as possible. Members are also advised to not leave their demat account(s) dormant for long. Periodic statement of holdings should be obtained from the concerned DPs and holdings should be verified from time to time.
In case of joint holders attending the meeting, the members whose name appears as the first holder in the order of names as per the Register of Members of the Company will be entitled to vote.

Voting through electronic means

I. In compliance with provisions of Section 108 of the Companies Act, 2013, read with Rule 20 of the Companies (Management and Administration) Rules, 2014, as amended, Secretarial Standard on General Meetings (SS-2) issued by the Institute of Company Secretaries of India (“ICSI”) and the provisions of Regulation 44 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,read with MCA Circulars and SEBI Circulars, the Company is providing remote e-Voting facility to its Members in respect of the business to be transacted at the 51[st] AGM and facility for those Members participating in the 51[st] AGM to cast vote through e-Voting system during the 51[st] AGM.
II. The remote e-Voting period will commence on July 18, 2022 (9:00 am IST) and end on July 20, 2022 (5:00 pm IST). During this period, Members of the Company, holding shares

either in physical form or in dematerialized form, as on the cut-off date of July 14, 2022 , may cast their vote by remote e-Voting. The remote e-Voting module shall be disabled by NSDL for voting thereafter. Once the vote on a resolution is cast by the Member, the Member shall not be allowed to change it subsequently.

Any person, who are other than individual shareholders holding securities in Demat mode and shareholders holding securities in physical mode, who acquires shares of the Company and become member of the Company after dispatch of the notice and holding shares as of the Cut-off date may obtain the login ID and password by sending a request at [email protected] However, if you are already registered with NSDL for remote e-Voting then you can use your existing user ID and password for casting your vote. If you have forgotten your password, you could reset your password by using “Forgot User Details/Password” or “Physical User Reset Password” option available on www.evoting.nsdl.com. In case of Individual shareholders holding securities in Demat mode, who acquires shares of the Company and become member of the Company after dispatch of the Notice and holding shares as of the Cut-off date, are requested to follow the login method mentioned below in point (A) under e-Voting instructions.

The details of the process and manner for remote e-voting and voting during the AGM are explained here below:

Step 1 : Access to NSDL e-Voting system

Step 2 : Cast your vote electronically on NSDL e-Voting system

Details on Step 1 is mentioned below:

A) Login method for e-Voting and joining virtual meeting for Individual shareholders holding securities in Demat mode
In terms of SEBI circular dated December 9, 2020 on e-Voting facility provided by Listed Companies, Individual shareholders holding securities in Demat mode are allowed to vote through their Demat account maintained with Depositories and Depository Participants. Shareholders are advised to update their mobile number and email Id in their Demat accounts in order to access e-Voting facility.

Type of shareholders Login Method

A. NSDL IDeAS facility

Individual Shareholders holding securities in demat mode with NSDL.

If you are already registered for NSDL IDeAS facility
Please visit the e-Services website of NSDL. Open web browser by typing the following URL: https://eservices.nsdl.com/ either on a Personal Computer or on a mobile.
Once the home page of e-Services is launched, click on the “Beneficial Owner” icon under “Login” which is available under “IDeAS” section.
A new screen will open. You will have to enter your User ID and Password. After successful authentication, you will be able to see e-Voting services.
Click on “Access to e-Voting” under e-Voting services and you will be able to see e-Voting page.
Click on options available against company name or e-Voting service provider - NSDL and you will be re-directed to NSDL e-Voting website for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting.

If the user is not registered for IDeAS e-Services,

The option to register is available at https://eservices.nsdl.com.
Select “Register Online for IDeAS” Portal or click at https://eservices. nsdl.com/SecureWeb/IdeasDirectReg.jsp
Upon successful registration, please follow steps given at Point 1 to 5 above.

B. e-Voting website of NSDL

Visit e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile.
Once the home page of e-Voting system is launched, click on the icon “Login” which is available under Shareholder/Member’ section.
A new screen will open. You will have to enter your User ID (i.e. your sixteen digit demat account number held with NSDL), Password/OTP and a Verification Code as shown on the screen.
After successful authentication, you will be redirected to NSDL Depository site wherein you can see e-Voting page. Click on options available against company name or e-Voting service provider - NSDL and you will be redirected to e-Voting website of NSDL for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting.
Shareholders/Members can also download NSDL Mobile App “ NSDL Speede ” facility by scanning the QR code mentioned below for seamless voting experience.

==> picture [216 x 132] intentionally omitted <==

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STATUTORY REPORTS FINANCIAL STATEMENTS

Type of shareholders

Login Method

Individual Shareholders 1. Existing users who have opted for Easi / Easiest, they can login through holding securities in demat their user id and password. Option will be made available to reach mode with CDSL e-Voting page without any further authentication. The URL for users to login to Easi / Easiest are https://web.cdslindia.com/myeasi/home/login or www.cdslindia.com and click on New System Myeasi.
After successful login of Easi/Easiest the user will be also able to see the E Voting Menu. The Menu will have links of e-Voting service provider i.e. NSDL. Click on NSDL to cast your vote.
If the user is not registered for Easi/Easiest, option to register is available at https://web.cdslindia.com/myeasi/Registration/EasiRegistration
Alternatively, the user can directly access e-Voting page by providing demat Account Number and PAN No. from a link in www.cdslindia.com home page. The system will authenticate the user by sending OTP on registered Mobile & Email as recorded in the demat Account. After successful authentication, user will be provided links for the respective ESP i.e. NSDL where the e-Voting is in progress.
Individual Shareholders 1. You can also login using the login credentials of your demat account (holding securities in demat through your Depository Participant registered with NSDL/CDSL for mode) login through their e-Voting facility. depository participants
Once login, you will be able to see e-Voting option. Once you click on e-Voting option, you will be redirected to NSDL/CDSL Depository site after successful authentication, wherein you can see e-Voting feature.
Click on options available against company name or e-Voting service provider-NSDL and you will be redirected to e-Voting website of NSDL for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting.

Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID and Forget Password option available at abovementioned website.

Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login through Depository i.e. NSDL and CDSL

Login type Helpdesk details Individual Shareholders holding securities in Members facing any technical issue in login can contact demat mode with NSDL NSDL helpdesk by sending a request at evoting@ nsdl.co.in or call at toll free no.: 1800 1020 990 and 1800 22 44 30 Individual Shareholders holding securities in Members facing any technical issue in login can contact demat mode with CDSL CDSL helpdesk by sending a request at helpdesk. [email protected] or contact at 022- 23058738 or 022-23058542-43

B) Login Method for e-Voting and joining virtual meeting, shareholders other than Individual shareholders holding securities in Demat mode and shareholders holding securities in physical mode.
How to Log-in to NSDL e-Voting website?
Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile.
Once the home page of e-Voting system is launched, click on the icon “Login” which is available under ‘Shareholder/Member’ section.
A new screen will open. You will have to enter your User ID, your Password/OTP and a Verification Code as shown on the screen.
- Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in at https:// eservices.nsdl.com/ with your existing IDEAS login. Once you log-in to NSDL eservices after using your log-in credentials, click on e-Voting and you can proceed to Step 2 i.e. Cast your vote electronically.
Your User ID details are given below :
- Manner of holding Your User ID is: shares i.e. Demat (NSDL or CDSL) or Physical a) For Members who 8 Character DP ID followed by hold shares in 8 Digit Client ID demat account For example if your DP ID with NSDL. is IN300 and Client ID is 12 then your user ID is IN30012**.
- b) For Members 16 Digit Beneficiary ID who hold shares For example if your in demat account Beneficiary ID is with CDSL. 1 2 * * * * * * * * * * * * * * then your user ID is 12**
- c) For Members EVEN Number followed by holding shares in Folio Number registered Physical Form. with the company For example if folio number is 001 and EVEN is 123456 then user ID is 123456001
Password details for shareholders other than Individual shareholders are given below:
a) If you are already registered for e-Voting, then you can use your existing password to login and cast your vote.
b) If you are using NSDL e-Voting system for the first time, you will need to retrieve the ‘initial password’ which was communicated to you. Once you retrieve your ‘initial password’, you need to enter the ‘initial password’ and the system will force you to change your password.
c) How to retrieve your ‘initial password’?
(i) If your email ID is registered in your demat account or with the company, your ‘initial password’ is communicated to you on your email ID. Trace the email sent to you from NSDL from your mailbox. Open the email and open the attachment i.e. a .pdf file. Open the .pdf file. The password to open the .pdf file is your 8 digit client ID for NSDL account, last 8 digits of client ID for CDSL account or folio number for shares held in physical form. The .pdf file contains your ‘User ID’ and your ‘initial password’.
(ii) If your email ID is not registered, please follow steps mentioned below in process for those shareholders whose email ids are not registered
If you are unable to retrieve or have not received the “Initial password” or have forgotten your password:
a) Click on “Forgot User Details/ Password?” (If you are holding shares in your demat account with NSDL or CDSL) option available on www.evoting.nsdl.com.
b) Physical User Reset Password? ” (If you are holding shares in physical mode) option available on www.evoting.nsdl.com.
c) If you are still unable to get the password by aforesaid two options, you can send a request at [email protected] mentioning your demat account number/folio number, your PAN, your name and your registered address etc.
d) Members can also use the OTP (One Time Password) based login for casting the votes on the e-Voting system of NSDL.

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After entering your password, tick on Agree to “Terms and Conditions” by selecting on the check box.
Now, you will have to click on “Login” button.
After you click on the “Login” button, Home page of e-Voting will open.

Step 2: Cast your vote electronically and join General Meeting on NSDL e-Voting system.

How to cast your vote electronically and join General Meeting on NSDL e-Voting system?

After successful login at Step 1, you will be able to see all the companies “EVEN” in which you are holding shares and whose voting cycle and General Meeting is in active status.
Select “EVEN” of company for which you wish to cast your vote during the remote e-Voting period and casting your vote during the General Meeting. For joining virtual meeting, you need to click on “VC/OAVM” link placed under “Join General Meeting”.
Now you are ready for e-Voting as the Voting page opens.
Cast your vote by selecting appropriate options i.e. assent or dissent, verify/modify the number of shares for which you wish to cast your vote and click on “Submit” and also “Confirm” when prompted.
Upon confirmation, the message “Vote cast successfully” will be displayed.
You can also take the printout of the votes cast by you by clicking on the print option on the confirmation page.
Once you confirm your vote on the resolution, you will not be allowed to modify your vote.

THE INSTRUCTIONS FOR MEMBERS FOR e-VOTING ON THE DAY OF THE AGM ARE AS UNDER:-

The procedure for e-Voting on the day of the AGM is same as the instructions mentioned above for remote e-voting.
Only those Members/ shareholders, who will be present in the AGM through VC/OAVM facility and
have not casted their vote on the Resolutions through remote e-Voting and are otherwise not barred from doing so, shall be eligible to vote through e-Voting system in the AGM.
Members who have voted through Remote e-Voting will be eligible to attend the AGM. However, they will not be eligible to vote at the AGM.
The details of the person who may be contacted for any grievances connected with the facility for e-Voting on the day of the AGM shall be the same person mentioned for Remote e-voting.

General Guidelines for shareholders

Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/JPG Format) of the relevant Board Resolution/ Authority letter etc. with attested specimen signature of the duly authorized signatory(ies) who are authorized to vote, to the Scrutinizer by e-mail to arvindkohli@ gmail.com with a copy marked to evoting@nsdl. co.in and [email protected]
Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) can also upload their Board Resolution / Power of Attorney / Authority Letter etc. by clicking on “Upload Board Resolution / Authority Letter” displayed under “e-Voting” tab in their login
It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential. Login to the e-voting website will be disabled upon five unsuccessful attempts to key in the correct password. In such an event, you will need to go through the “Forgot User Details/ Password?” or “Physical User Reset Password?” option available on www.evoting.nsdl.com to reset the password.
In case of any queries, you may refer the Frequently Asked Questions (FAQs) for Shareholders and e-voting user manual for Shareholders available at the download section of www.evoting.nsdl.com or call on toll free no.: 1800 1020 990 and 1800 22 44 30 or send a request to Pallavi Mhatre at [email protected]
Process for those shareholders whose email ids are not registered with the depositories for procuring user id and password and registration of e mail ids for e-voting for the resolutions set out in this notice:
Members are encouraged to join the Meeting through Laptops for better experience.
Further Members will be required to allow Camera and use Internet with a good speed to avoid any disturbance during the meeting.
(a) In case shares are held in physical mode please provide Folio No., Name of shareholder, scanned copy of the share certificate (front and back), PAN (self attested scanned copy of PAN card), AADHAR (self attested scanned copy of Aadhar Card) by email to evoting@nsdl. co.in or [email protected].
Please note that Participants Connecting from Mobile Devices or Tablets or through Laptop connecting via Mobile Hotspot may experience Audio/Video loss due to Fluctuation in their respective network. It is therefore recommended to use Stable Wi-Fi or LAN Connection to mitigate any kind of aforesaid glitches.
(b) In case shares are held in demat mode, please provide DPID-CLID (16 digit DPID + CLID or 16 digit beneficiary ID), Name, client master or copy of Consolidated Account statement, PAN (self attested scanned copy of PAN card), AADHAR (self attested scanned copy of Aadhar Card) to evoting@ nsdl.co.in or [email protected]. If you are an Individual shareholders holding securities in demat mode, you are requested to refer to the login method explained at step 1 (A) i.e. Login method for e-Voting and joining virtual meeting for Individual shareholders holding securities in demat mode.
Members who would like to express their views or ask questions during the AGM may register themselves as a speaker by sending their request from their registered email address mentioning their name, DP ID and Client ID/folio number, PAN, mobile number at [email protected] from July 15, 2022 (9:00 am IST) to July 18, 2022 (5:00 pm IST). Those Members who have registered themselves as a speaker will only be allowed to express their views/ask questions during the AGM. The Company reserves the right to restrict the number of speakers depending on the availability of time for the AGM.
The Members can join the AGM through VC/OAVM mode 30 minutes before and after the scheduled time of the commencement of the Meeting by following the procedure mentioned in the Notice. The facility of participation in the AGM through VC/ OAVM will be made available for 1000 members on first come first served basis. This will not include large Shareholders (Shareholders holding 2% or more shareholding), Promoters, Institutional Investors, Directors, Key Managerial Personnel, the Chairpersons of the Audit Committee, Nomination and Remuneration Committee and Stakeholders Relationship Committee, Auditors etc., who are allowed to attend the AGM without restriction on account of first come first served basis.

INSTRUCTIONS FOR MEMBERS FOR ATTENDING THE AGM THROUGH VC/ OAVM ARE AS UNDER:

Member will be provided with a facility to The facility of participation in the AGM through VC/ attend the AGM through VC/OAVM through the OAVM will be made available for 1000 members on NSDL e-Voting system. Members may access first come first served basis. This will not include by following the steps mentioned above for large Shareholders (Shareholders holding 2% Access to NSDL e-Voting system . After or more shareholding), Promoters, Institutional successful login, you can see link of “VC/ Investors, Directors, Key Managerial Personnel, the OAVM link” placed under “Join General Chairpersons of the Audit Committee, Nomination meeting” menu against company name. You and Remuneration Committee and Stakeholders are requested to click on VC/OAVM link placed Relationship Committee, Auditors etc., who are under Join General Meeting menu. The link allowed to attend the AGM without restriction on for VC/OAVM will be available in Shareholder/ account of first come first served basis. Member login where the EVEN of Company will be displayed. Please note that the members 17. Any person who acquires shares of the Company who do not have the User ID and Password and becomes member of the Company postfor e-Voting or have forgotten the User ID and dispatch of Notice of AGM along with the Annual Password may retrieve the same by following Report before the Cut-Off Date may obtain the the remote e-Voting instructions mentioned in login ID and password by sending a request to the notice to avoid last minute rush. NSDL at [email protected] or at Company’s
and becomes member of the Company postdispatch of Notice of AGM along with the Annual Report before the Cut-Off Date may obtain the login ID and password by sending a request to NSDL at [email protected] or at Company’s

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email address at [email protected]. However if they are already registered with NSDL for remote e-Voting then they can use their existing user ID and password for casting their vote. If they forgot their password, they can reset their password by using “Forgot User Details/Password?” or “Physical User Reset Password?” option available on www.evoting.nsdl.com

The voting rights of the members shall be in proportion to the paid-up value of their shares in the equity capital of the Company as on the Cut-off Date.
A person, whose name is recorded in the Register of Members or in the Register of Beneficial Owners maintained by the depositories, as on the cut-off date, only shall be entitled to avail the facility of remote e-voting or e-voting during the AGM.
Mr. Arvind Kohli, (Membership No. FCS 4434, CP 2818) Practicing Company Secretary, Proprietor of M/s Arvind Kohli & Associates, Company Secretaries has been appointed as the Scrutinizer to scrutinize the entire e-voting process in a fair and transparent manner.
The results declared along with the report of the Scrutinizer shall be placed on the Company’s website https://www.srf.com and on the website of NSDL www.evoting.nsdl.com immediately after the declaration of results by the Chairman or a person authorized by him in writing. The results shall also be immediately forwarded to the concerned Stock Exchanges i.e. BSE and NSE.
Since the AGM will be held through VC/OAVM, the Route Map is not annexed to this Notice.

EXPLANATORY STATEMENT PURSUANT TO SECTION 102(1) OF THE COMPANIES ACT, 2013 & DETAILS OF DIRECTORS SEEKING APPOINTMENT/ RE-APPOINTMENT AS REQUIRED UNDER LISTING REGULATIONS AND SECRETARIAL STANDARDS ON GENERAL MEETINGS

Item Nos. 2 & 3

Shareholders had appointed Mr. Ashish Bharat Ram (DIN: 00671567) as Managing Director of the Company for a period of 5 years with effect from May 23, 2020 in the Annual General Meeting held on August 17, 2020.

Consequent to resignation of Mr. Arun Bharat Ram as Chairman and his appointment as “Chariman Emeritus” wef April 1, 2022, the Board at its meeting held on March 28, 2022, had redesignated Mr Ashish Bharat Ram (DIN: 00671567) as Chairman and Managing Director on the same terms and conditions as approved by the members on August 17, 2020. His redesignation as Chairman and Managing Director is subject to Members’ approval at this Annual General Meeting.

Details of Mr. Ashish Bharat Ram pursuant to the provisions of (i) Listing Regulations and (ii) Secretarial Standard on General Meetings (“SS-2”) issued by the Institute of Company Secretaries of India are given below :

Mr Ashish Bharat Ram (53) has done his schooling from Doon School and graduation in Economics from the Hindu College, Delhi University with an emphasis on mathematics. He holds a Masters’ degree in Business Administration on Corporate Strategy with an emphasis on finance and strategy from The Johnson Graduate School of Management, Cornell University, Ithaca, NY, USA and has a 27 years’ working experience in senior positions including in the Company’s international subsidiaries.

Mr Ashish Bharat Ram has no shareholding in the Company. He is a member of Stakeholders Relationship Committee and Committee of Directors - Financial Resources and Chairman of Risk Management Committee of the Company.

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Directorships Committee Membership
in other Public
companies
----- End of picture text -----

Directorships in other Public companies	Co	mmittee Membership
Kama Holdings Limited Havells India Limited Shri Educare Limited SRF Holiday Home Limited	• • • • •	Stakeholders Relationship Committee (Chairman) Committee of Directors - Financial Resources Nomination and Remuneration Committee Risk Management Committee (Chairman) Enterprises Risk Management Committee Nil Nil
SRF Altech Limited		Nil

None of the Directors or Key Managerial Personnel or their relatives except Mr. Ashish Bharat Ram himself and Mr. Kartik Bharat Ram, Joint Managing Director, being relative, are in any way concerned or interested, financially or otherwise, in the Resolution.

In view of the above, the Board of Directors recommends the Ordinary Resolution set out at Item No. 3 of the Notice for approval by the members.

Item No 4

Shareholders had appointed Mr. Kartik Bharat Ram (DIN: 00008557) as Deputy Managing Director of the Company for a period of 5 years with effect from June 01, 2021 in the Annual General Meeting held on August 31, 2021.

Mr. Kartik Bharat Ram is responsible for Information Technology, Total Quality Management, Human Resources and Corporate Communications functions of the Company. Due to the increasing importance of these functions especially; Information Technology in the overall functioning of the Company due to the challenges imposed by the Pandemic and the increase in operations of the Company, the complexity of his role has increased.

Taking into account the above, the Board at its meeting held on March 28, 2022 had re-designated Mr. Kartik Bharat Ram as Joint Managing Director on the same terms and conditions as contained in the resolution passed by the members on August 31, 2021. His redesignation as Joint Managing Director is subject to Members’ approval at this Annual General Meeting.

Details of Mr. Kartik Bharat Ram pursuant to the provisions of (i) Listing Regulations and (ii) Secretarial Standard on General Meetings (“SS-2”) issued by the Institute of Company Secretaries of India are given below :

Mr. Kartik Bharat Ram (51) is a graduate from Santa Clara University, California and has earned an MBA from Cornell University, New York. He is involved in

the creation and strengthening of a performancebased culture within the organization, through valuebased leadership.

He is a fellow of the India Leadership Initiative, Aspen Institute India. In the past, he has served as the

President of the Indian Blind Sports Association and as the Chairman of the Confederation of Indian Industry (CII) Delhi State Council for the year 2007-08.

Mr Kartik Bharat Ram has no shareholding in the Company. He is a member of Stakeholders Relationship Committee, Corporate Social Responsibility Committee, Committee of Directors – Financial Resources and Risk Management Committee of the Company.

Directorships Committee Membership in other Public companies Kama Holdings • Stakeholders Relationship Limited Committee • Committee of DirectorsFinancial Resources • Risk Management Committee Shri Educare Nil Limited SRF Altech Nil Limited

None of the Directors or Key Managerial Personnel or their relatives except Mr. Kartik Bharat Ram himself and Mr. Ashish Bharat Ram, Chairman and Managing Director, being relative, are in any way concerned or interested, financially or otherwise, in the Resolution.

In view the above, the Board of Directors recommend the Ordinary Resolution set out at Item No. 4 of the Notice for approval by the members.

Item No. 5

Mr. Vellayan Subbiah (DIN: 01138759) was appointed as Non-Executive Independent Director by members at the Annual General Meeting held on August 07, 2018 for the period of 5 years commencing from April 01, 2019 upto March 31, 2024. Your Directors are of the view that it would be to the benefit of the Company if his experience and wisdom would continue to be utilized by the Board and management on a long-term basis. Accordingly, a proposal to appoint him as a non-independent and non-executive director on the Board was discussed with him and he graciously agreed to step down as an independent director to be appointed as nonindependent and non-executive director, liable to retire by rotation, w.e.f May 10, 2022.

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Pursuant to Regulation 17(1C) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the “Listing Regulations”), effective from January 1, 2022, a listed entity shall ensure that approval of members for appointment of a person on the Board of Directors is taken at the next general meeting or within a time period of three months from the date of appointment, whichever is earlier.

Mr. Vellayan Subbiah is not disqualified to be appointed as a Director in terms of Section 164 of the Act and has given his consent to act as a Director of the Company.

The Company has received a notice in writing from a member under Section 160 of the Act, proposing the candidature of Mr. Vellayan Subbiah for the office of Director of the Company.

Details of Mr. Vellayan Subbiah pursuant to the provisions of (i) Listing Regulations and (ii) Secretarial Standard on General Meetings (“SS-2”) issued by the Institute of Company Secretaries of India are given below:

Mr. Vellayan Subbiah (52) is a Bachelor of Technology in Civil Engineering from IIT, Madras, and holds a Master’s Degree in Business Administration from the University of Michigan. He has over 26 years of work experience in consulting, technology manufacturing, and financial services.

Mr. Vellayan is the Chairman of Cholamandalam Investment & Finance Co. Ltd., a leading NBFCs in India, in the business of Vehicle Finance, Home Loans, SME Loans, etc. Mr. Vellayan worked with McKinsey & Company, USA for six years. His experience at McKinsey spanned across strategic consulting, mergers and acquisitions, and operations management. Vellayan also worked with 24/7 Customer Inc., Sundaram Fasteners, and Laserwords in different capacities. He was a recipient of the Extraordinary Entrepreneur of the year – TiECON 2014 Award.

Mr Vellayan Subbiah holds 67035 shares (0.02%) shares in the Company.

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Directorships Committee Membership
in other Public
companies
----- End of picture text -----

Cholamandalam Investment & Finance Co. Ltd	•	Corporate Social Responsibility Committee - Chairman
	• • •	IT Strategy Committee Nomination & Remuneration Committee Business Committee – Chairman
Tube Investments	•	Shares & Debentures
of India Limited	•	Committee Loans Committee
Ambadi		Nil
Investments Ltd
Cholamandalam Financial Holdings Limited		Nil
CG Power and	•	Nomination &
Industrial Solutions Limited	•	Remuneration Committee Risk Management
		Committee - Chairman

None of the Directors or Key Managerial Personnel or their relatives except Mr. Vellayan Subbiah, are in any way concerned or interested, financially or otherwise, in the Resolution.

The Board recommends the ordinary resolution set out in item no. 5 of the Notice for approval by the members.

Item No. 6

The Board, on the recommendation of the Audit Committee, has approved the appointment of the Cost Auditors to conduct audit of the cost records of the Company for the financial year ending March 31, 2023 at the remuneration as provided in the resolution.

In accordance with the provisions of Section 148 of the Act read with the Companies (Audit and Auditors) Rules, 2014, the remuneration payable to the Cost Auditors has to be ratified by the shareholders of the Company.

None of the Directors or Key Managerial Personnel or their relatives are, in any way, concerned or interested, financially or otherwise, in the Resolution.

Both the cost auditors had rendered satisfactory service during their last tenure, therefore the Board of Directors recommend Ordinary Resolution set out at Item No. 6 of the Notice for approval by the members.

Item No. 7

The Board of Directors of the Company, based on the recommendation of the Nomination and Remuneration Committee had approved the appointment of Mr. Raj Kumar Jain (DIN:01741527), as an Additional NonExecutive Independent Director of the Company with effect from May 09, 2022 under Sections 149, 150, 152 and other applicable provisions of the Companies Act, 2013 (the “Act”) and the Articles of Association of the Company.

In accordance with the provisions of Section 149 read with Schedule IV of the Act, appointment of Independent Director requires approval of the members of the Company. Further, pursuant to Regulation 17(1C) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the “Listing Regulations”), effective from January 1, 2022, a listed entity shall ensure that the approval of members for appointment of a person on the Board of Directors is taken at the next general meeting or within a time period of three months from the date of appointment, whichever is earlier.

Mr Raj Kumar Jain is qualified to be appointed as a director in terms of Section 164 of the Act and has given his consent to act as a director. The Company has also received declaration from Mr Raj Kumar Jain that he meets the criteria of independence as prescribed under Section 149(6) of the Act and the Listing Regulations.

The Company has also received notice under Section 160 of the Act from a member proposing the candidature of Mr Raj Kumar Jain for the office of an Independent Director of the Company. Mr Raj Kumar Jain is independent of the management and possesses appropriate skills, experience and knowledge. Considering the extensive knowledge, experience as well as his educational background,

appointment of Mr Raj Kumar Jain as an Independent Director is in the interest of the Company.

Details of Mr Raj Kumar Jain pursuant to the provisions of (i) Listing Regulations and (ii) Secretarial Standard on General Meetings (“SS-2”) issued by the Institute of Company Secretaries of India are given below :-

Mr. Raj Kumar Jain (63) founded Bounce Inc. in 2020. Bounce Inc. is a boutique management and operations consulting firm helping clients with India market entry, operating efficiency improvement and ‘phygital’ transformation initiatives.

Mr. Raj Kumar Jain has also served as Chief Executive Officer, Bennett, Coleman & Co. Ltd. (The Times Group), India’s largest Media Company across Print, Television, Out of Home and Digital Business.

Mr. Raj Kumar Jain spearheaded entry of Walmart Inc. into India through a JV with Bharti Group. He led the business to establish a Pan India Wholesale Cash & Carry, Multi format Retail and Supply Chain Business.

Mr. Raj Kumar Jain was APAC Head, Marketing & Supply Chain at Whirlpool Corporation based in Shanghai, China. During his 10 years at Whirlpool, he also served as MD & CEO of Whirlpool India Ltd. and launched the Whirlpool Brand in India.

Mr. Raj Kumar Jain started his career at Hindustan Lever Ltd. His successful and distinctive career spanning over 16 years in Unilever India and U.K. included several key managerial positions in Sales, Marketing, and Supply Chain.

Mr. Raj Kumar Jain is Ex-Chairperson of the Board of American Chamber of Commerce & Industry (AMCHAM), served on the advisory board of HOPE Foundation. He also served on the Board of ASCI (The Advertising Standards Council of India).

The nomination and remuneration committee has considered his diverse skills, Consulting Experience, Engineering Background, Analytical Ability, Customer Centricity and vast global business experience, among others, as being some of the skills identified by the Board for an Independent Director. In view of the above, the nomination and remuneration committee and the Board are of the view that Mr. Raj Kumar Jain

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to offer or invite subscription for secured/ unsecured redeemable non-convertible debentures, in one or more series/tranches on private placement. Further, SEBI circular dated November 26,2018 require that 25% of the incremental borrowings by a large corporate (as defined in that circular) during a financial year shall be met by way of issuance of debt securities in accordance with applicable SEBI regulations.

possesses the requisite skills and capabilities, which would be of immense benefit to the Company, and hence, it is desirable to appoint him as an independent director.

Mr Raj Kumar Jain (DIN:01741527) has no shareholding in the Company. He is a member of Audit Committee.

Directorship in other public Co. Committee Membership JK Agri Genetics Limited • Nil	Pricing of debentures is determined and impacted by general economic conditions and monetary policy, Company specifc rating and outlook of the investor
Copy of draft appointment letter of Mr Raj Kumar Jain	on the Company.

Copy of draft appointment letter of Mr Raj Kumar Jain setting out the terms and conditions of appointment shall be available on the website of the Company at www.srf.com

None of the Directors/Key Managerial Personnel of the Company/their relatives are, in any way, concerned or interested, financially or otherwise, in the Resolution.

None of the Directors or Key Managerial Personnel or their relatives except Mr. Raj Kumar Jain, are in any way concerned or interested, financially or otherwise, in the Resolution.

In view of the above, the Board of Directors recommend the Special Resolution set out at Item No. 8 of the Notice for approval of the members authorising the Board to issue redeemable, nonconvertible Debentures by private placement for an aggregate amount not exceeding ` 1500 crores, in one or more tranches, during the period of one year from the date of this Annual General Meeting.

The Board recommends the special resolution set out in item no. 7 of the Notice for approval by the members.

Board’s Report

Dear Members,

Your Directors are pleased to present the 51[st] Annual Report for the year ended March 31, 2022.

Item No. 8

As per the provisions of Section 42 of the Companies Act, 2013 read with Companies (Prospectus and allotment of Securities) Rules, 2014, private placement of redeemable, non-convertible debentures requires approval of shareholders by way of special resolution. However, the Company may pass a special resolution once in a year for all the offers or invitation for such debentures during the year.

In order to provide for resources for financing of capital expenditure requirements, re-financing of existing debt, general corporate purposes and such other purposes of the Company as are allowed by the applicable laws, the Company may be required

By Order of the Board of Directors

Rajat Lakhanpal

VP (Corporate Compliance) & Date : May 30, 2022 Company Secretary Place : Gurugram Membership No. ACS 12725

SRF Limited

(CIN: L18101DL1970PLC005197) Regd. Office: The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, 2[nd] Floor, Mayur Place, Mayur Vihar Phase I Extn, Delhi – 110091

Financial Results

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( ` in Crores)
Particulars Standalone Consolidated
2021-22 2020-21 2021-22 2020-21
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Revenue from operations	9,953.44	6,988.32	12,433.66	8,400.04
Other income	135.31	63.30	115.51	66.35
Total Income	10,088.75	7,051.62	12,549.17	8,466.39
Proft Before Interest, Depreciation & Tax (PBIDT)	2,668.72	1,804.78	3,218.71	2,199.68
Less: Interest & Finance Charge	94.45	111.21	115.93	133.95
Less: Depreciation and amortisation charge	419.23	383.60	517.23	453.08
Proft Before Tax (PBT) from continued operation	2,155.04	1,309.97	2,585.55	1,612.65
Less: Provision For Taxation including Deferred Tax Charge	648.03	384.91	696.63	414.40
Proft After Taxation (PAT) from continued operation	1,507.01	925.06	1,888.92	1,198.25
Proft Before Tax (PBT) from discontinued operations	-	-	-	(2.73)
Less: Provision For Taxation including Deferred Tax Charge	-	-	-	(2.42)
Proft After Taxation (PAT) from discontinued	-	-	-	(0.31)
operations
Total Proft After Taxation (PAT) from continuing and	1,507.01	925.06	1,888.92	1,197.94
discontinued operations
Add: Proft Brought Forward	4,551.58	3,828.76	5,113.66	4,117.69
Total	6,058.59	4,753.82	7,002.58	5,315.63

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FINANCIAL STATEMENTS

Appropriation

	(`in Crores)
Particulars	Standalone Consolidated
	2021-22 2020-21 2021-22 2020-21
Interim dividend on Equity Shares Other comprehensive income arising from re-measurement of defned beneft obligation Amount transferred to Debenture Redemption Reserve	211.89 141.31 211.89 141.31 4.75 (1.57) 4.92 (1.84) - 62.50 - 62.50
Proft carried to Balance Sheet	5,841.96 4,551.58 6,785.77 5,113.66

Operations Review

Share Capital

Total revenue from operations of the Company on standalone basis increased by 42.43 per cent from 6988.32 Crores in 2020-21 to 9953.44 Crores in 2021-22. The profit before interest, depreciation and tax (PBIDT) including ‘other income’ on a standalone basis increased from 1804.78 Crores in 2020-21 to 2668.72 Crores in 2021-22.

During the year, to commemorate 50th anniversary of the Company, the Board at its meeting held on October 15, 2021 allotted 23,69,80,820 Bonus Shares to the eligible shareholders of the Company in the proportion of 4 (four) new fully paid-up equity share of 10/- each for every 1 (one) existing fully paid-up equity share of 10/- each by capitalising a sum of ` 236,98,08,200 out of securities premium account of the Company.

Profit before tax (PBT) from continuing operations on a standalone basis increased by 64.51 per cent from 1309.97 Crores in 2020-21 to 2155.04 Crores in 2021-22. After accounting for the provision for tax of 648.03 Crores, profit after tax (PAT) on continuing operations on a standalone basis increased by 62.91 per cent from 925.06 Crores in 2020-21 to ` 1507.01 Crores in 2021-22

Further, the Nomination and Remuneration Committee allotted 195,000 equity shares of ` 10/each at par under Part B- SRF ESPS, 2018 of the SRF Long Term Share Incentive Plan, 2018 to eligible employees on November 1, 2021.

In view of the above, the paid up share capital of the Company increased from 59,24,52,050 divided into 5,92,45,205 equity shares of 10/- each to 296,42,10,250 divided into 29,64,21,025 equity shares of 10/- each.

Total revenue from operations of the Company on consolidated basis increased by 48.01 per cent from 8400.04 Crores in 2020-21 to 12433.66 Crores in 2021-22. The profit before interest, depreciation and tax (PBIDT) including ‘other income’ on a consolidated basis increased from 2199.68 Crores in 2020-21 to 3218.71 Crores in 2021-22.

Equity Dividend

During the year, your Company has paid two interim dividends of 12 per share (before bonus issue) and 4.75 per share (after bonus issue) amounting to ` 211.89 Crores. The Board of Directors of the Company has not recommended any final dividend.

Profit before tax (PBT) from continuing operations on a consolidated basis increased by 60.32 per cent from 1612.65 Crores in 2020-21 to 2585.55 Crores in 2021-22. After accounting for the provision for tax of 696.63 Crores, profit after tax (PAT) on continuing operations on a consolidated basis increased by 57.64 per cent from 1198.25 Crores in 2020-21 to ` 1888.92 Crores in 2021-22.

Management Discussion and Analysis

A detailed section on the Management Discussion and Analysis forms part of the Annual Report. A review of the Businesses is also given in that section.

Transfer to Reserves

ESG Report

In view of the statutory provisions of the Companies Act, 2013 the Board of Directors has decided not to transfer any amount to the reserves consequent to declaration of dividend.

ESG Report for FY 2021 - ‘22 containing the Environment, Social and Governance Initiatives taken by the Company during the year forms part of the

This company is engaged in the business of acquisition and renting of real estate properties.

Annual Report. As stipulated under the Securities and Exchange Board of India (LODR) Regulations, 2015 (“Listing Regulations”), the Business Responsibility Report has been prepared for 2021-22 and is presented along with the above ESG Report.

SRF Altech Limited is a wholly owned subsidiary of the Company incorporated in India during the year. It shall engage in the business of manufacture of Aluminum foil.

Subsidiaries, Joint Ventures and Associate

companies

The consolidated financial statements of the Company prepared in compliance with applicable Accounting Standards and other applicable laws including all the above subsidiaries duly audited by the statutory auditors are presented in the Annual Report.

As on March 31, 2022, your Company had 7 (seven) wholly owned subsidiary companies out of which 2 (two) wholly owned subsidiary companies are registered in India and remaining 5 (five) are registered outside India. 3 (three) of these are direct wholly owned subsidiaries and rest 4 (four) are stepdown wholly owned subsidiaries. The consolidated profit and loss account for the period ended March 31, 2022 includes the profit and loss account for these 7 (seven) wholly owned subsidiaries for the Financial Year ended March 31, 2022.

No subsidiaries were divested during the year. No company has become/ceased to be a joint venture or associate during the year. A report on performance and financial position of each of the subsidiaries and associates is presented in a separate section in this Annual Report. Please refer (AOC-1) annexed to the financial statements in the Annual Report at page no. 371. The Policy for determining material subsidiaries as approved may be accessed on the Company’s website at the link:

These subsidiaries are:-

SRF Global B.V. is a wholly owned subsidiary of the Company incorporated in the Netherlands. This entity is an SPV formed for the purpose of holding investments and mobilizing funds for the 4 (four) step-down subsidiaries of the Company.
h t t p s : / / w w w . s r f. c o m / w p c o n t e n t / uploads/2021/04/2019-02-04-SRF-LimitedPolicy-on-Material-Subsidiary-Companies.pdf
SRF Industries (Thailand) Ltd. (a wholly owned subsidiary of SRF Global BV) is incorporated in Thailand engaged in the manufacture and distribution of packaging films.
The annual accounts of the subsidiary companies will also be kept open for inspection at the registered office of the Company and of respective subsidiary companies. Further, the annual accounts of the subsidiaries are also available on the website of the Company viz. www.srf.com
SRF Flexipak (South Africa) (Pty) Ltd. (a wholly owned subsidiary of SRF Global BV) is incorporated in South Africa engaged in manufacture and distribution of packaging films.
SRF Industex Belting (Pty) Ltd. (a wholly owned subsidiary of SRF Global BV) is incorporated in South Africa presently in the business of trading in refrigerant gases and packaging films in South Africa and other neighbouring countries.

Directors & Key Managerial Personnel

During the year Dr. Meenakshi Gopinath, Director CSR, retired as Director in the Annual General Meeting held on August 31, 2021.
SRF Europe Kft (a wholly owned subsidiary of SRF Global BV) is incorporated in Hungary to undertake the manufacture and trading of packaging films in Hungary.
of SRF Global BV) is incorporated in Hungary Mr. Sanjay Chatrath, President and CEO, Technical to undertake the manufacture and trading of Textile Business retired on October 31, 2021, Your packaging films in Hungary. Board places on record its sincere appreciation for the contribution made by him during his years of service.
1. SRF Holiday Home Ltd. is a wholly owned Mr. Prashant Yadav, President and CEO (FCB) was subsidiary of the Company incorporated in India. also given the additional responsibility of Technical

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Textile Business (TTB) w.e.f November 01, 2021 and redesignated as President and CEO (FCB and TTB)

Mr. Arun Bharat Ram decided to step down as Executive Chairman from the close of the business hours on March 31, 2022 and was appointed as “Chairman Emeritus” for a term of five years with effect from April 1, 2022.

The Board in its meeting held on March 28, 2022, had upon recommendations of Nomination and Remuneration Committee redesignated Mr. Ashish Bharat Ram as Chairman and Managing Director and Mr. Kartik Bharat Ram as Joint Managing Director of the Company with effect from April 1, 2022 and has recommended the same to the shareholders of the Company for their approval in this Annual General Meeting.

Mr. Ashish Bharat Ram, Chairman and Managing Director, is retiring by rotation and being eligible, offers himself for re-appointment.

Mr. Vellayan Subbiah was re-appointed as NonExecutive Independent Director by members at the Annual General Meeting held on August 07, 2018 for the period of 5 years commencing from April 01, 2019 upto March 31, 2024. The Board is of the view that it would be to the benefit of the Company if his experience and wisdom would continue to be utilized by the Board and management on a longterm basis. Accordingly, a proposal to appoint him as a non-independent and non-executive director was discussed with him and he graciously agreed to step down as an independent director and resigned from the closing of Business hours on May 9, 2022 and was appointed as Additional non-independent and nonexecutive director, liable to retire by rotation, w.e.f May 10, 2022. The Board recommends his appointment as Non-executive non-Independent Director, liable to retire by rotation, to the shareholders.

Upon recommendations of Nomination and Remuneration Committee, the Board appointed Mr. Raj Kumar Jain, as Additional Independent Director w.e.f May 9, 2022 and has recommended his appointment as Independent Director to the shareholders for a term of 5 years commencing from May 09, 2022 to May 08, 2027.

Brief resume of the Directors who are proposed to be appointed/re-appointed is furnished in the explanatory statement to the notice of the ensuing Annual General Meeting.

All the Independent Director(s) have submitted the declaration of meeting the criteria for independence as provided in Section 149(6) of the Companies Act, 2013 and rules applicable thereunder and as per the SEBI Regulations. They are also independent of the management.

The Board confirms that independent directors appointed during the year possess the desired integrity, expertise and experience. The Independent Directors of the Company have confirmed that they have enrolled themselves in the Independent Directors’ Databank maintained with the Indian Institute of Corporate Affairs (‘IICA’) in terms of Section 150 of the Act read with Rule 6 of the Companies (Appointment & Qualification of Directors) Rules, 2014. Some of the Directors are exempt from the requirement to undertake the online proficiency self-assessment test conducted by IICA and the remaining have cleared the Online Proficiency Test as prescribed under Companies (Appointment and Qualifications of Directors) Rules, 2014 as amended.

In accordance with the requirements of the Companies Act and the Listing Regulations, the Company has formulated a Nomination, Appointment and Remuneration Policy. A copy of the Policy is enclosed as Annexure I and on the website of the Company at the link: https://www.srf.com/wp-content/ uploads/2022/05/2022-05-09-Rev-NRC-Policy-V6-F.pdf

In accordance with the aforesaid Policy, the Nomination and Remuneration Committee evaluates the performance of the Executive Directors, Non- Independent nonexecutive Director and Independent Directors based on the criteria more particularly described in the enclosed Nomination, Appointment and Remuneration policy. Board evaluates, its own performance and the performance of its Committees on the criteria more particularly described in the said policy.

The details of programmes for familiarisation of Independent Directors with the Company, their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, business

Transfer Pricing Policy/basis approved by the Audit Committee and/or in accordance with the Omnibus approval of the Audit Committee. During the year, the Company had not entered into any contract/ arrangement/ transaction with related parties which could be considered material in accordance with the Policy on Materiality of Related Party Transactions. Accordingly, the disclosure of related party transactions as required under Section 134(3)(h) of the Companies Act, 2013 (‘the Act’) in Form No. AOC2 is not applicable to the Company for FY 2021 - ‘22 and hence the same is not provided.

model of the Company and related matters are put up on the website of the Company at the link - https://www.srf.com/wp content/uploads/2022/04/ Familarisation-programme_2022.pdf

During the year 2021-22, Seven meetings of the Board of Directors were held. For further details, please refer to report on Corporate Governance on page no. 145 of this Annual Report.

Directors’ Responsibility Statement

Pursuant to the requirements of Section 134(3)(c) of

the Companies Act, 2013, it is hereby confirmed that :

Your Directors draw attention of the members to Note 32 to the notes to accounts forming part of the financial statements which sets out related party transaction disclosures.

(a) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;
(b) the directors had selected such accounting Particulars of Loans given, Investments policies and applied them consistently and made made, Guarantees given and Securities judgments and estimates that are reasonable provided and prudent so as to give a true and fair view of Particulars of loans given, investments made,
the state of affairs of the company at the end of guarantees given and securities provided alongwith the financial year and of the profit and loss of the the purpose for which the loan or guarantee or company for that period;

Particulars of loans given, investments made, guarantees given and securities provided alongwith the purpose for which the loan or guarantee or security was proposed to be utilised by the recipient are provided in the standalone financial statement (Please refer to Note 41(d) of Additional Disclosures forming part of the standalone financial statement).

(c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

Corporate Social Responsibility (CSR)

As per the requirements of the Companies Act, 2013, the Company has a Corporate Social Responsibility Committee comprising of Mr. Kartik Bharat Ram, Joint Managing Director (Chairman of the Committee), Mr. Lakshman Lakshminarayan, Independent Director, and Mr. Yash Gupta, Independent Director as other members. Mr. Arun Bharat Ram, was a member of this committee till March 31, 2022.

(d) the directors had prepared the annual accounts on a going concern basis;
(e) the directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively ; and
(f) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

The Corporate Social Responsibility Committee has formulated and recommended to the Board, a Corporate Social Responsibility Policy (CSR Policy) indicating the projects to be undertaken by the Company, which has been approved by the Board.

Contracts and Arrangements with Related Parties

The CSR Policy may be accessed on the Company’s website at the link https://www.srf.com/wp-content/ uploads/2021/04/25032021-Final-SRF-CorporateSocial-Responsibility-policy.pdf

All contracts/ arrangements/ transactions entered by the Company during the financial year with related parties were in the ordinary course of business and on an arms’ length basis and in accordance with the

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The Company would also undertake other needbased initiatives in compliance with Schedule VII to the Act.

As per the requirements of section 135 (5) of the Companies Act 2013, the CSR Obligation for FY 2021 - ‘22 was 18.61 Crores. The Board upon recommendations of CSR Committee approved the Annual budget of 18.68 Crores towards CSR expenditure which was duly spent during the year. Moreover, an amount of ` 2.70 Crores earmarked for ongoing projects which commenced during FY 2020 - ‘21 was also spent during the year.

The CSR Obligation for FY 2020 - ‘21 was 13.25 lakhs out of which 12.88 lakhs was spent during that year and a credit of 37 lakhs was taken on account of excess amount spent during FY 2019-20 which was allowed as per the Companies (Corporate Social Responsibility) Rules, 2014. However MCA through its circular dated 25th August 2021 clarified that the Companies cannot set off excess CSR amount spent prior to FY 2020 - ‘21. Therefore, the CSR spend for FY 2020 - ‘21 was lesser to the extent of 37 lacs.

As per the provisions of the Companies Act, 2013, any CSR obligation which was not discharged during the financial year need to be transferred to one of the specified funds prescribed under Schedule VII to the Companies Act, 2013 on or before 30th September, 2021. In compliance with MCA circular dated 25th August, 2021, an amount of ` 37 lacs was transferred to Clean Ganga Fund, which is a fund specified under Schedule VII to the Companies Act, 2013, on 28th September, 2021.

Annual Report on CSR activities is annexed herewith as Annexure II.

Risk Management

Enterprise Risk Management is a risk based approach to manage an enterprise, identifying events that may affect the entity and manage risks to provide reasonable assurance regarding achievement of entity’s objective.

The risks identified by the Company broadly fall into the following categories viz. strategic risks, operational risks, regulatory risks, financial and reporting risks, and IT & Cyber risks. The risk management process

consists of risk identification, risk assessment, risk prioritization, risk treatment or mitigation, risk monitoring and documenting the new risks.

Your Board has laid down a risk management framework and policy to address the above risks. The objective of the policy is to identify existing & emerging challenges that may adversely affect the company and manage risks in order to provide reasonable assurance to the various stakeholders. In the opinion of your Board, none of the risks which have been identified may threaten the existence of the Company.

The Board has constituted Risk Management Committee consisting of Mr. Ashish Bharat Ram as Chairman, Mr. Kartik Bharat Ram and Ms. Bharti Gupta Ramola as members of the Committee.

Internal Financial Controls

The Company believes that Internal Control is a necessary concomitant of the principle of Governance. It remains committed to ensuring an effective Internal Control environment that provides assurance to the Board of Directors, Audit Committee and the management that there is a structured system for:

close and active supervision by the Audit Committee
business planning and review of goals achieved
evaluating & managing risks

• policies and procedures adopted for ensuring orderly Financial Reporting

timely preparation of reliable Financial Information
accuracy and completeness of the Accounting Records
ensuring legal and regulatory compliance
protecting company’s assets
prevention and detection of fraud and error
validation of IT Security Controls
Entity Level Controls

Interrelated control systems, covering all financial and operating functions, assure fulfilment of these objectives.

Significant features of these control systems include:

the planning system that ensures drawing up of challenging goals and formulation of detailed

strategies and action plans for achieving these goals.

the risk assessment system that accounts for all likely threats to the achievement of the plans, and draws up contingency plans to mitigate them.
the review systems track the progress of the plan and ensure that timely remedial measures are taken, to minimise deviations from the plan.

The Company uses Enterprise Resource Planning (ERP) supported by in-built controls that ensures reliable and timely financial reporting. Well-established & robust internal audit processes, both at the Corporate and the Business levels, continuously monitor the adequacy and effectiveness of the Internal Controls and status of compliance with operating systems, internal policies and regulatory requirements. All Internal Audit findings and control systems are periodically reviewed by the Audit Committee of the Board of Directors, which provides strategic guidance on Internal Controls.

The Company also has a robust & comprehensive framework of Control Self-Assessment (CSA) which continuously verifies compliance with laid down policies & procedures and help plug control gaps, CSA comprises Automated and Manual Controls. CSA Assurance Testing completes the control compliance loop. In addition to this, Compliance Manager (CM) a facilitating tool sends pre-emptive alert to meet specific calendared regulatory deadlines in the company.

Listing of Equity Shares

SRF’s equity shares are listed at the BSE Ltd. and the National Stock Exchange of India Ltd.

SRF Limited Long term Share based

Incentives Plan, 2018

During the year, 195,000 equity shares were allotted under Part B- SRF ESPS, 2018 of the SRF Long Term Share Incentive Plan, 2018 to eligible employees. There has been no change in the said Plan which was approved by the shareholders through postal ballot on February 26, 2018. The said Plan is in compliance with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The disclosures prescribed under the said Regulations are given below:

a. In terms of the “Guidance Note on accounting for employee share based payments” issued by ICAI and Ind AS 102, note no. 34 on Employee

Share Based Payments forms part of the notes to standalone annual accounts appearing on page no. 242 of the Annual Report 2021-22. Note No.

1.B.17 forming part of the Accounting Policies which refers to this is also appearing on page no. 195 of the Annual Report 2021-22.The same are also reproduced in the “Investors Section” of the website (www.srf.com). The weblink for the same is https://www.srf.com/investors/ -
corporate governance/
b. During financial year 2018-19 and 2021-22 shares under Part B- SRF ESPS, 2018 of the SRF Long Term Share Incentive Plan, 2018 were issued directly to the eligible employees as decided by the Board/Nomination and Remuneration Committee of the Company. Basic and diluted EPS for 2021-22 was ` 50.86 per Share.
c. Other Disclosures mandated by the said circular are given in Annexure III.

Certificate from the Secretarial Auditors of the Company dated May 30, 2022 that SRF Limited Employees Long term Share Based Incentive Plan, 2018 has been implemented in accordance with these regulations and in accordance with the resolution of the company shall be placed in the forthcoming Annual general meeting.

Dividend Distribution Policy

In compliance with the Listing Regulations, your Board had formulated a Dividend Distribution Policy. A copy of the said policy is available on the website - of the Company at https://www.srf.com/wp content/ uploads/2020/11/Dividend-Distribution-Policy.pdf

Corporate Governance

Certificate of the auditors of your Company regarding compliance of the conditions of corporate governance as stipulated in regulation 34(3) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 is attached to the report as Annexure IV.

In compliance with the requirements of the regulation 17(8) of the aforesaid regulations, a certificate from Chairman and Managing Director and President & CFO was placed before the Board.

All Board members and Corporate Leadership Team (CLT) have affirmed compliance with the Code of

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Conduct for Board and Senior Management Personnel. A declaration to this effect duly signed by the Chairman and Managing Director is enclosed as a part of the Corporate Governance Report. A copy of the Code is also placed at the website of the Company at https://www. srf.com/wp-content/uploads/2020/11/Code-of-Conductfor-Directors-and-Senior-Management-Personnel.pdf

Consolidated Financial Statement

The consolidated financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Companies (Indian Accounting Standards) Rules, 2015 and other relevant amendments issued thereafter of the Act.

Audit Committee

As on date, the Audit Committee comprises of Independent Directors namely, Mr. Lakshman Lakshminarayan (Chairman of the Committee), Ms. Bharti Gupta Ramola and Mr. Raj Kumar Jain as other members. All the recommendations made by the Audit Committee were accepted by the Board.

Accounts and Audit

M/s BSR & Co. LLP, Chartered Accountants (Registration No. 101248W/W-100022) were appointed as Statutory Auditors for 5 years in 47[th] annual general meeting to hold office from the conclusion of 47[th] Annual General Meeting until the conclusion of 52[nd] annual general meeting.

The observations of the auditors are explained wherever necessary in appropriate notes to the accounts. The Auditors Report does not contain any qualification, reservation, adverse remark or disclaimer.

Vigil Mechanism

In compliance with the provisions of the Companies Act, 2013 and Listing Regulations, the company has established a vigil mechanism for directors, employees and other stakeholders to report concerns about unethical behaviour, actual or suspected fraud or violation of the company’s code of conduct.

The Vigil Mechanism of the Company consists of Code of Conduct for employees, Policy against sexual harassment, Whistleblower Policy, Code of Conduct to Regulate, Monitor and Report Trading by Insiders and

Code of Conduct for Directors and Sr. Management Personnel. These taken together constitute the vigil mechanism through which Directors, employees and other stakeholders can voice their concerns. The Whistle blower Policy, Code of Conduct to Regulate, Monitor and Report Trading by Insiders and Code of Conduct for Directors and Sr. Management Personnel can be accessed on the Company’s website at the link: - https://www.srf.com/investors/corporate governance/

Cost Audit

Pursuant to various circulars issued by Ministry of Corporate Affairs, the Company is required to maintain cost records for all the products being manufactured by it and get the same audited by a cost auditor.

M/s. H. Tara & Co., Cost Accountants, was appointed to conduct cost audit of the accounts maintained by the Company for the financial year 2022-23 in respect of all the relevant product groups of Technical Textiles Business and other Businesses of the Company.

M/s. Sanjay Gupta & Associates, Cost Accountant, was appointed to conduct cost audit of the accounts maintained by the Company for the financial year 2022-23 in respect of all the relevant product groups of Chemicals Business and Packaging Films Business of the Company.

M/s. Sanjay Gupta & Associates, Cost Accountant was nominated as the Company’s Lead Cost Auditor.

The remuneration of the cost auditors for financial year 2022-23 is subject to ratification by the shareholders. Accordingly a suitable item has been included in the notice of the ensuing annual general meeting.

The Cost Audit reports for audit of the said products for the financial year 2020-21, conducted by M/s. H. Tara, Cost Accountants (M. No. 17321) and M/s Sanjay Gupta & Associates, Cost Accountants (M. No. 18672), have been filed with the Ministry of Corporate Affairs on August 24, 2021. The due date for filing was August 27, 2021.

Secretarial Auditor

The Board has appointed M/s Sanjay Grover & Associates, Practising Company Secretary, to conduct Secretarial Audit for the financial year 2021-22. The Secretarial Audit Report for the financial year ended

March 31, 2022 is annexed herewith as Annexure V to this Report. The Secretarial Audit Report does not contain any qualification, reservation or adverse remark.

Further, Secretarial Compliance Report dated May 11, 2022 issued as per SEBI Circular CIR/CFD/ CMD1/27/2019 dated February 08, 2019 was given by M/s Sanjay Grover & Associates, Practising Company Secretary which was submitted to Stock Exchanges.

Reporting of Fraud

During the year under review, the Statutory Auditors, Cost Auditors and Secretarial Auditors have not reported any instances of frauds committed in the Company by its officers or employees, to the Audit Committee under Section 143(12) of the Act, details of which needs to be mentioned in this Report.

Personnel

The statement containing names of top ten employees in terms of remuneration drawn and the particulars of employees as required under section 197 (12) of the Act read with Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is provided in a separate annexure forming part of this report. Further, the report and the accounts are being sent to the members excluding the aforesaid annexure. In terms of Section 136 of the Act, the said Annexure is open for inspection at the registered office of the Company during business hours on working days upto the date of ensuing Annual general meeting. Any shareholder interested in obtaining a copy of the same may write to the Company Secretary at [email protected]

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided in Annexure VI.

Conservation of Energy, Technology Absorption, Foreign Exchange Earnings & Outgo

The details as required under the Companies (Accounts) Rules, 2014 are given as Annexure VII to the Directors’ report.

Annual Return

The Annual Return (MGT-7) of the Company as on 31.03.2022 is available on the following web link: https://www.srf.com/investors/corporategovernance/

Industrial Relations

The Company continued to generally maintain harmonious and cordial relations with its workers in all its businesses.

Secretarial Standards

Applicable Secretarial Standards, i.e. SS-1 SS-2 and SS-3, relating to ‘Meeting of the Board of Directors’ ‘General Meetings’ and ‘Dividend’ respectively, have been duly followed by the Company.

General

Your Directors state that no disclosure or reporting is required in respect of the following items as there was no transactions on these items during the year under review :-

Details relating to deposits covered under Chapter V of the Companies Act, 2013.
Neither the Chairman, Managing/Deputy Managing Director nor Whole-time Director received any remuneration or commission from any of the Company’s subsidiaries.
No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Company’s operations in future.

As per the requirement of The Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 (‘Act’) and Rules made thereunder, your Company has constituted Internal Complaints Committees (ICC). During the year, three complaints were received which were duly resolved.

Acknowledgements

Your Directors acknowledge with gratitude the cooperation and assistance received from various agencies of the Central Government and the Governments of Madhya Pradesh, Rajasthan, Tamil Nadu, Gujarat and Uttarakhand, financial institutions and banks. Your Directors thank the shareholders for their continued support. Your Directors also place on record their appreciation of the contribution made by employees at all levels.

For and on Behalf of the Board

Ashish Bharat Ram

Date: May 30, 2022 Chairman & Managing Director Place: New Delhi (DIN – 00671567)

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Annexure - I to Board’s Report

Nomination, Appointment and Remuneration Policy

1. Qualification & Experience

The incumbent shall possess appropriate skills, experience and knowledge in one or more fields of finance, law, management, sales & marketing, operations, research, corporate governance, education, community service or other disciplines.

2. Attributes/Qualities

A. Introduction

This Policy on Nomination, Appointment and Remuneration of Directors, Key Managerial Personnel, Senior Management Personnel and Other Employees has been formulated and amended from time to time in accordance with the provisions of Section 178 of the Companies Act, 2013 (the Act) and the Listing Regulations by the Nomination and Remuneration Committee of the Directors of the Company.

B. Definitions

Directors : Directors (other than Managing Director(s) and Whole-time Director(s)) appointed under the provisions of the Companies Act, 2013 and rules made thereunder. Key Managerial Managing Director(s), Whole-time Director(s), Chief Executive Officers of the Personnel businesses of the Company reporting to the Managing Director, Chief Financial Officer and Company Secretary. Senior Management Members of the Corporate Leadership Team of the Company (excluding Executive Personnel Directors), Chief Financial Officer and Company Secretary Other Employees Employees other than Key Managerial Personnel and Senior Management Personnel.

The incumbent Director shall possess one or more of the following attributes/qualities :-

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----- Start of picture text -----

Industry knowledge/experience Technical skills/ Behavioural Competencies
experience
a) Consulting Experience a) Accounting and finance a) Integrity and ethical standards
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b)	Manufacturing Industry experience	b) Industrial Engineers	b) Mentoring abilities
c)	Understanding of relevant laws,	c) Talent Management	c) Critical thinking
	rules, regulation and policy
d)	Analyzing Business Problems	d) Compliance and risk	d) Strategic Planning
e)	Adapting to changing Business	e) Devising plans for	e) Entrepreneurial &
	Conditions	New Business	Commercial Acumen
f)	Recommending cost-cutting	f) Proposing solutions to	f) Analytical Decision Making
	measures	Business Problems
g)	Recommending Process	g) Innovation	g) Customer Centricity
	Improvements		h) Leading Change
			i)LeadingPeople

The terms “He” or “his” as mentioned in this Policy includes any gender.

C. Terms of Reference

The Board of Directors of the Company at its meeting held on 9th May, 2014 reconstituted the existing Remuneration Committee of Directors as “Nomination and Remuneration Committee” of Directors (the Committee). The terms of reference of the Committee are as follows :-

Formulation of the criteria for determining qualifications, positive attributes and independence of a director.
Formulation of criteria for evaluation of performance of Independent Directors and the Board.
Devising a policy on Board diversity.
Formulation of policies for remuneration to Directors, Key Managerial Personnel, Sr. Management Personnel and Other Employees.
Identification and recommendation to Board of persons who are qualified to become Directors, Key Managerial Personnel and Sr. Management Personnel in accordance with the criteria laid down.
Recommend to the Board on appointment and removal of Directors, Key Managerial Personnel and Sr. Management Personnel.
Evaluation of the performance of Directors (other than independent directors).
Evaluation of the performance of independent directors and make recommendations to Board.
To oversee succession planning for Board of Directors, Key Managerial Personnel and Senior Management Personnel.
Formulation of criteria for making payment to non-executive Directors.
Recommend to the board, all remuneration, in whatever form, payable to senior management.
D. Criteria for recommending a person to become Director

The Committee shall take into consideration the following criteria of qualification, positive attributes and independence for recommending to the Board for appointment of a Director:-

In case the proposed appointee is an Independent Director, he should fulfill the criteria for appointment as Independent Director as per the provisions of the Act, Listing Regulations and other applicable laws and regulations.
The incumbent should not be disqualified for appointment as a Director pursuant to the provisions of the Act or other applicable laws & regulations.

E. Directors’ Remuneration

The Committee will approve the fixed remuneration to Executive Directors subject to the provisions of the Act, Listing Regulations and other applicable laws & regulations. Commission to the Executive Directors, if any, will be recommended by the Committee to the Board for approval. The Committee/Board shall periodically review the remuneration of such Directors in relation to other comparable companies and other factors like performance of the Company etc. as deemed appropriate.
The Committee will recommend to the Board appropriate fees / commission to the nonexecutive directors for its approval. The Committee / Board shall inter alia, consider level of remuneration /commission payable by other comparable companies, time devoted, experience, providing guidance on strategic matters and such other factors as it may deem fit.

F. Evaluation

Performance evaluation of Executive Directors, Non-executive & Non Independent Directors, Independent Directors, Board as a whole, Board Committees and their members and Chairman shall be carried out in following manner:
a) Performance evaluation of all individual Directors: It shall be done annually by the Nomination and Remuneration Committee (NRC) as per the structure of performance evaluation (as per Annexure I & II & III). The outcome of the evaluation shall be shared by the Chairman of NRC with the Board.

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b) Performance evaluation of Independent Directors: It shall be done, annually and at the time of their reappointment, by NRC for recommending to the Board whether to extend or continue the term of appointment of independent directors. Based upon the recommendations of the NRC, the Board of Directors shall decide to continue their appointment or consider them for reappointment.

The performance evaluation of independent directors, in addition to feedback received from NRC, shall be done by the entire Board of Directors, excluding the director being evaluated as per the structure of performance evaluation (as per Annexure II).

c) Performance evaluation of NonExecutive & NonIndependent Directors: It shall be done annually by NRC for recommending to the Board whether to extend or continue the term of appointment of non-executive & nonindependent Directors.

The performance evaluation of NonExecutive & Non- Independent directors, in addition to feedback received from NRC, shall be done by the entire Board of Directors, excluding the director being evaluated as per the structure of performance evaluation (as per Annexure III).

d) Performance evaluation of the Board of Directors: Board shall evaluate its own performance on criteria as specified in annexure IV.
e) Performance evaluation of Board Committees: The Board shall review the performance of all its committees annually on criteria for evaluation as specified in annexure V.
f) Performance evaluation of Chairman: The Board shall review the performance of Chairman annually on criteria for evaluation as specified in annexure VI.
g) Performance evaluation by independent directors at their separate meeting: The Independent Directors in their separate meeting shall review performance of non-independent directors, Board as a whole, the Chairman of the company, taking into account the views of executive directors and nonexecutive directors.

The Chairman of meeting of Independent Directors or one selected by independent Directors shall share outcome of their abovementioned evaluations with the Chairman of the Board.

Chairman of the Board shall be responsible for giving feedback as and when required as a result of performance evaluation above and guide on preparation of a suitable action plan, if required.

G. Board Diversity

The Committee will review from time to time Board diversity to bring in professional experience in different areas of operations, transparency, corporate governance, financial management, risk assessment & mitigation strategy, education, community service and human resource management in the Company. The Committee will keep succession planning and Board diversity in mind in recommending any new name of Director for appointment to the Board.

H. Eligibility criteria & Remuneration of Key Managerial Personnel, Senior Management Personnel and Other Employees
The eligibility criteria for appointment of Key Managerial Personnel, Senior Management Personnel and Other Employees shall be in accordance with the job description of the relevant position.
In particular, the position of Key Managerial Personnel should be filled by senior personnel having relevant qualifications and experience.

Remuneration Structure

i) Key Managerial Personnel and Senior Management Personnel,

The remuneration structure for Key Managerial Personnel and Senior Management Personnel shall be decided taking into account factors such as level of experience, qualification, performance and suitability which shall be reasonable and sufficient to attract, retain and motivate them.

Nomination and Remuneration Committee shall recommend to the Board the remuneration/remuneration structure for senior management personnel every year.

ii) Other Employees

The remuneration for the Other Employees is determined on the basis of the role and position of the individual employee, including professional experience, responsibility, job complexity and market conditions and his/ her last drawn remuneration in the previous organization.

The various remuneration components, basic salary, allowances, perquisites etc. may be combined to ensure an appropriate and balanced remuneration package.

The annual increments to the remuneration paid to the employees shall be determined based on the appraisal carried out by the respective

reporting managers/HODs of various departments as ratified by Business Leadership Teams/Corporate Leadership Team (as applicable). Decision on Annual Increments shall be made on the basis of this appraisal. The remuneration would be benchmarked intermittently with a basket of identified companies comparable to SRF.

At the same time, the increments are largely fixed for Bands. In case, a specific correction is to be brought about for a particular employee or group of employees, rationalization on a one time basis may also be carried out.

The remuneration may consist of fixed and incentive pay/retention bonus reflecting short and long-term performance objectives appropriate to the working of the Company and its goals.

The aforesaid Key Managerial Personnel, Senior Management Personnel and Other Employees may also be provided any facility, perquisites, commission, accommodation, interest free loans or loans at concessional rate in accordance with the policies framed for them or any category thereof.

However loan to the Directors who are KMPs shall be governed by such approvals as may be required by the Companies Act, 2013.

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Annexure - I

Performance Evaluation of Executive Directors

Name of Director

Type of Directorship : Executive Director

Assessment of the following Roles/Attributes as performed by or observed in the Director whose performance is under evaluation:

Sl. Particulars/Role/Attribute No.

(Yes/No)

Attendance and participation in meetings of the Board of Directors and of the Board Committees
Advises Board on implementation of good corporate governance practices
Exercised his/her duties with due & reasonable care, skill and diligence
Acted in good faith and in the best interests of the Company towards promotion of interest of the stakeholders
Conduct in compliance with the policies of the Company viz. Code of Conduct, Code of Conduct for Prevention of Insider Trading, Whistle blower Policy etc.
Ensures compliance with applicable laws/ statutory obligations in the functioning of the Company
Enhances Brand Equity
Encourages new initiatives/expansion/innovation
Encourages adherence to the principles of Quality, Cost, Delivery and safety (QCDS)
Resolves Investor complaints
Ensures talent retention
Encourages awards & recognitions Overall Performance (Remarks)

Name of Director : ………………………….

Signature : …………………………. Date & Place : ………………………….

Annexure - II

Performance Evaluation of Independent Directors

Name of Director

Type of Directorship : Independent Director

Assessment of the following Roles/Attributes as performed by or observed in the Director whose performance is under evaluation:

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----- Start of picture text -----

Sl. Particulars/Role/Attribute (Yes/No)
No.
----- End of picture text -----

Attendance and participation in meetings of the Board of Directors and of the Board Committees
Independent Directors have sufficient knowledge of Company strategy and objective and can monitor performance.
Advises on implementation of good corporate governance practices.
Whether knowledge and experience of the Independent Directors have been adequately and productively used for the functioning of Board.
Independent Directors make efforts for professional development to enable better fulfilment of their responsibilities.
Independent in judgement and actions
Exercised his/her duties with due & reasonable care, skill and diligence
Acted in good faith and in the best interests of the Company towards promotion of interest of the stakeholders
Conduct in compliance with the policies of the Company viz. Code of Conduct, Code of Conduct for Prevention of Insider Trading, Whistle blower Policy etc.
Fulfilment of the independence criteria as specified in Listing Regulations and other applicable laws and their independence from the management Overall Performance (Remarks)

Name of Director : ………………………….

Signature	: ………………………….
Date & Place	: ………………………….

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Annexure - III

Performance Evaluation of Non-executive & Non-Independent Directors

Name of Director :

Type of Directorship : Non- Executive & Non-Independent Director

Assessment of the following Roles/Attributes as performed by or observed in the Director whose performance is under evaluation:

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----- Start of picture text -----

Sl. Particulars/Role/Attribute (Yes/No)
No.
----- End of picture text -----

Attendance and participation in meetings of the Board of Directors and of the Board Committees
Non-Executive & Non-Independent Directors have sufficient knowledge of Company strategy and objective and can monitor performance.
Advises on implementation of good corporate governance practices.
Whether knowledge and experience of the Non-Executive & NonIndependent Directors have been adequately and productively used for the functioning of Board.
Non-Executive & Non-Independent Directors make efforts for professional development to enable better fulfilment of their responsibilities.
Exercised his/her duties with due & reasonable care, skill and diligence
Acted in good faith and in the best interests of the Company towards promotion of interest of the stakeholders
Conduct in compliance with the policies of the Company viz. Code of Conduct, Code of Conduct for Prevention of Insider Trading, Whistle blower Policy etc.

Overall Performance (Remarks)

Name of Director : ………………………….

Signature : …………………………. Date & Place : ………………………….

Annexure - IV

Performance Evaluation of The Board

Assessment of the following Roles/Attributes as observed in the Board as a whole:

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||||
|---|---|---|
|Sl.|Particulars/Role/Attribute|(Yes/No)|
|No.|
|Composition and Quality|

----- End of picture text -----

The Company has Diverse Board.
The Board monitors compliance with corporate governance norms and other laws applicable to the Company.

Understanding Business including Risks

The Company’s management and internal control system is periodically reviewed for appropriateness and relevance.

Process and Procedure

The structure and content of the Board meeting agendas are appropriate. 5. Board meetings are conducted effectively, with sufficient time spent on significant or emerging points.
The agenda and related information are circulated in advance of the meetings to allow Board members sufficient time to study and understand the information.

Oversight of Financial Reporting process including Internal Controls and Audit Functions

The Board considers the quality and appropriateness of financial accounting and reporting including transparency of disclosures.
The Board appropriately considers the suggestions from the Audit Committee, internal audit reports, management's responses, risk framework and steps toward improvement.
The Board through Audit Committee reviews material related party transactions.

Ethics and Compliance

The Board is fully aware of the Company's code of conduct and has a well ‐ developed sense of ethics.

Monitoring Activities

An annual performance evaluation of the Board is conducted and any ‐

matters that require follow up are resolved and presented to the Board. Overall Performance (Remarks)

Name of Director : ………………………….

Signature : …………………………. Date & Place : ………………………….

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Annexure - V

Performance Evaluation of The Committees

Assessment of the following Roles/Attributes as observed in the Committees:

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----- Start of picture text -----

Sl. Particulars/Role/Attribute (Yes/No)
No.
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The Committee(s) composition is/ are appropriate
The Committee(s) has/ have a defined agenda.
Members of the Committee(s) receive agenda in sufficient time which permits them to effectively consider issues to be dealt with.
The mandate of the Board to the Committee(s) of all matters are clear and adequate.
The Committee(s) allocate(s) the right amount of time for its discussions.
The minutes of the Committee(s) are placed before the Board on a regular basis.
Appropriate internal and external support or resources are available to the Committee(s).

Name of Director : ………………………….

Signature : …………………………. Date & Place : ………………………….

Annexure - VI

PERFORMANCE EVALUATION OF CHAIRMAN

Assessment of the following Roles/Attributes as observed in the Chairman:

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||||
|---|---|---|
|Sl.|Roles/Attributes|(Yes/No)|
|No.|
|1.|Chairman demonstrates effective leadership qualities and skills|

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Implementation of observations/recommendations of Board Members
Effective and timely resolution of grievances of Board Members
Ability to bring convergence in case of divergent views and conflict of interest situation tabled at Board meetings

Name of Director : ………………………….

Signature : ………………………….

Date & Place : ………………………….

For and on Behalf of the Board

Ashish Bharat Ram

Annexure - II to the Board’s Report

Annual Report on CSR Projects as on March 31, 2022

  - **Environment (iv):** Plantation, Awareness Creation – Water Conservation, Ground Water Recharge, Research, Waste Recycling

1. Brief outline on CSR Policy of the Company

As per the requirement of Section 135 of the Companies Act, 2013, the Company had laid down a CSR Policy under which the Company had identified projects as per the Schedule VII of the Act in the following areas for the year 2021-22: -
Art and Culture (v): Lecture cum demonstration session on classical music, dance, folk form, etc.
Promotion of Education (ii): Improving Quality of Education and Developing School infrastructure of Govt. Schools, Anganwadi Development, Setting up of School.
Rural Development (x): Construction of community shed, village roads / community assets / village development activities/ temporary shelter for homeless etc.
Employment enhancing vocational • Promotion of Heath Care (i): Prevention
skills (ii) : Focusing on imparting and Curative Health Care, Awareness
appropriate skills as per the market and Creation
industry needs and providing a platform to the youth trained to be gainfully self• Disaster Management (xii): Relief employed or linking them with potential and rehabilitation, livelihoods support, employers to increase their employability R&D, COVID awareness and response, and livelihood; vaccination etc.

2. Composition of CSR Committee:

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||||||
|---|---|---|---|---|
|Sl.|Name of Director|Designation/|Number of meetings|Number of meetings of|
|No.|Nature of|of CSR Committee|CSR Committee attended|
|Directorship|held during the year|during the year|
|1.|Dr. Meenakshi Gopinath|Chairperson|Nil|Nil|
|2.|Mr. Arun Bharat Ram|Member|Nil|Nil|
|3.|Mr. Kartik Bharat Ram|Chairman|Nil|Nil|
|4.|Mr. L. Lakshman|Member|Nil|Nil|
|5.|Mr. Yash Gupta|Member|Nil|Nil|

----- End of picture text -----

Dr. Meenakshi Gopinath ceased to be a Director of the Company w.e.f August 31, 2021 and Mr. Kartik Bharat Ram was appointed as Chairman of the Committee w.e.f October 25, 2021 and Mr. Yash Gupta was inducted as a Member of the Committee w.e.f Oct 25, 2021.

3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the board are disclosed on the website of the company.

3.1. CSR Committee & CSR Policy: https://srf.com/investors/corporate-governance/
3.2. CSR Projects: https://srf.com/investors/corporate-governance/

Date: May 30, 2022 Chairman & Managing Director Place: New Delhi (DIN – 00671567)

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  - to assess Program level and Organizational level outcomes. Also, Impact Assessment of Rural Vocational Program in Nuh district of Haryana was conducted with the objective to evaluate the program level outcomes and assess the organizational level changes in terms of tangible and intangible parameters.

4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report).

We have conducted Third Party Impact Assessment of Rural Education Program (REP) in both Nuh district of Haryana and Bharuch district of Gujarat. Study was conducted for the period between April 2019 to March 2021 with objective
Impact Assessment report can be accessed at: https://www.srf.com/investors/corporategovernance/

5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any

Sl. No.	Financial	Year Amount available preceding fnancial	for set-of from years (`in Crores)<br>Amount required to be set- of for the<br>fnancial year, if any (`in Crores)
1.	2020-21	-	-
2.	2021-22	-	-
TOTAL		-	-

6. Average net profit of the company as per Section 135(5)

` 930.31 Crores

7. (a) Two percent of average net profit of the company as per Section 135(5)

  - ` 18.61 Crores

(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years.
- Nil

(c) Amount required to be set off for the financial year, if any

  - Nil

(d) Total CSR obligation for the financial year (7a+7b- 7c): 2021-22
- ` 18.61 Crores

8. (a) CSR amount spent or unspent for the financial year: 2021 - 22

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Total Amount Amount Unspent (in ) spent for Total Amount Amount transferred to any fund specified under the Financial transferred to Schedule VII as per second proviso to Year. Unspent CSR Account Section 135(5) ( in Crores) as per Section 135(6)
Amount Date of Name of the Amount Date of
transfer Fund transfer
18.68 - - - - -
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(b) Details of CSR amount spent against ongoing projects for the financial year: 2021-22

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(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Sl. Name Item from Local Location of the Project Amount Amount Amount Mode of Mode of
No. of the the list of area project duration allocated spent transferred to Implementation- Implementation-
Project activities (Yes/ for the in the Unspent CSR Direct Through
in No) project current Account for the (Yes/No). Implementing
Schedule ( in financial project as per Agency VII to the Crores) Year ( in Section 135(6)
Act. Crores) (in ` ).
State District Name CSR
Registration
number
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(c) Details of CSR amount spent against other than ongoing projects for the financial year: 2021-22

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----- Start of picture text -----

(1) (2) (3) (4) (5) (6) (7) (8)
Sl. Name of the Item from Local area Location of Amount Mode of Mode of
No. Project the list of (Yes/ No) the project spent implementation implementation –
activities for the – Direct Through implementing
in project (Yes/No) agency
schedule State District ( ` in Name CSR
VII to Crores)
Registration
the Act
number
----- End of picture text -----

1.	Rural	(ii)	Yes, except	Gujarat, Madhya	Bharuch,	6.57	No	SRF	CSR00000733
	Education		Kamrup,	Pradesh,	Bhopal, Dhar,			Foundation
	Program		Assam	Rajasthan, Tamil	Bhind, Bhiwadi,
				Nadu, Haryana,	Thiruvallur,
				Uttarakhand and	Chennai,
				Assam	Pudukottai, Mewat,
					Kashipur and
					Kamrup (M)
2.	Vocational	(ii)	Yes, except	Gujarat, Madhya	Bharuch, Gwalior,	0.78	No	SRF	CSR00000733
	Skills Program		Bengaluru,	Pradesh,	Dhar, Bhind, Bhiwadi,			Foundation
			Karnataka	Rajasthan, Tamil	Thiruvallur, Chennai,
				Nadu, Haryana,	Mewat, Kashipur,
				Uttarakhand,	Noida and Bengaluru
				Uttar Pradesh and
				Karnataka
3.	SRF Vidyalaya,	(ii)	Yes	Haryana	Gurugram	0.29	No	SRF	CSR00000733
	Gurugram							Foundation
4.	Environment	(iv)	Yes	Delhi,Gujarat,	Delhi,Bharuch,	5.07	No	SRF	CSR00000733
				Rajasthan, Haryana	Bhiwadi, Gurugram			Foundation
5.	Art & Culture	(v)	No	Pan India	-	0.25	No	SRF	CSR00000733
	through Spic							Foundation
	Macay
6.	Disaster	(xii)	Yes, except	Gujarat, Madhya	Bharuch, Bhopal,	5.47	No	SRF	CSR00000733
	Management:		Noida, UP	Pradesh,	Dhar, Bhind, Bhiwadi,			Foundation
	Covid19			Rajasthan, Tamil	Thiruvallur, Chennai,
				Nadu, Uttarakhand,	Pudukottai, Kashipur,
				Uttar Pradesh	Noida
7.	Disaster	(xii)	Yes	Madhya Pradesh,	Gwalior, Thiruvallur	0.12	No	SRF	CSR00000733
	Management:			Tamil Nadu	and Chennai			Foundation
	Flood Relief
TOTAL						18.55

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(d) Amount spent in Administrative Overheads: Nil

(e) Amount spent on Impact Assessment, if applicable: 0.13 Crore
(f) Total amount spent for the Financial Year (8b+8c+8d+8e): ` 18.68 Crores
0.07
(g) Excess amount for set off, if any:

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Sl. Particular Amount
No. ( ` in Crores)
(i) Two percent of average net profit of the company as per section 18.61
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	135(5)
(ii)	Total amount spent for the Financial Year	18.68
(iii)	Excess amount spent for the fnancial year [(ii)-(i)]	0.07
(iv) (v)	Surplus arising out of the CSR projects or programmes or activities of the previous fnancial years, if any Amount available for set of in succeedingfnancialyears[(iii)-(iv)]	NA 0.07

9. (a) Details of Unspent CSR amount for the preceding three financial years:

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Sl. Preceding Amount Amount Amount transferred to Amount
No. Financial Year transferred to spent in any fund specified remaining to
Unspent CSR the under Schedule be spent in
Account under reporting VII as per succeeding
section 135 (6) Financial section 135(6), financial years
(in ) Year ( in if any. ( in Crores) Crores) Name of the Amount Date of Fund (in ) transfer
1. 2020-21 - - Clean Ganga Fund 0.37 Sep 28, 0.00
2021
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(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial

year(s):

(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
Sl. No.	Project ID	Name of the Project	Financial Year in which the project was commenced	Project duration	Total amount allocated for the project (in`)\|Amount<br>spent on<br>the project<br>in the<br>reporting<br>Financial<br>Year<br>(in`)	Cumulative amount spent at the end of reporting Financial Year (in`)	Status of the project - Completed /Ongoing
1.	01/2020-21	Rural	FY 2020 - ‘21	2 Years	3.21	Rural	1.25	Completed
		Education				Education
		& Skilling				& Skilling
		Program				Program
2.	02/2020-21	Rural	FY 2020 - ‘21	2 Years	3.79	Rural	1.45	Completed
		Education				Education
		& Skilling				& Skilling
		Program				Program

10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent in the financial year (asset-wise details).

(a)	Details of Capital Assets	Details of Capital Assets	Details of Capital Assets			Oxygen Compression and	In-House Water Treatment
						Cylinder fllingSystem	Plant(WTP)
(b)	Date of	creation or acquisition of the				30/06/2021	31/03/2022
	capital asset(s)
(c)	Amount	of CSR spent for creation or				0.76 Crore	4.50 Crores
	acquisition of capital asset
(d)	Details	of the	entity	or	public	SRF Foundation,	The Delhi Golf Club,
	authority or benefciary under whose					Tower – C,	Dr. Zakir Hussain Road,
	name such capital asset is registered, their address etc.					1stFloor, Unitech Business Zone,	New Delhi – 110003 A section 8 company
						Nirvana Country,	registered under companies
						South City – II,	Act, 1956
						Gurgaon, Haryana,	CSR Registration
						India – 122018	Number - CSR00002962
						A society registered under
						Societies registration
						Act, 1860
						CSR Registration
						Number- CSR00000733
(e)	Provide	details of	the capital asset(s)			SRF Limited,	The Delhi Golf Club,
	created	or acquired		(including		Mhow-Ghatabillod Road,	Dr. Zakir Hussain Road,
	complete address		and location of the			Pithampur Industrial Area,	New Delhi - 110003
	capital asset):					Indore District, Pithampur,
						Madhya Pradesh – 454774

11. Specify the reason(s), if the company has failed to spend two percent of the average net profit as per section 135(5).

There was no unspent amount.

Sd/Sd/- Ashish Bharat Ram Date: May 09, 2022 Chairman & Managing Director Place: Gurugram

Kartik Bharat Ram

Joint Managing Director and Chairman CSR Committee

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Annexure - III to the Board’s Report

ESPS Disclosures

Details related to Trust

Details, inter alia, in connection with transactions made by the Trust meant for the purpose of administering the schemes under the Regulations :-

(i) General information on all schemes:

Details related to ESPS

(i) Details of allotments made under Part-B of SRF ESPS 2018 of SRF Limited (SRF) Employees Long Term Share Based Incentive Plan – 2018 during the financial year 2021-22:
(a) Date of shareholders’ approval: 26[th] March 2018
(b) Number of shares issued: 1,95,000
(c) The price at which such shares are issued: 10
(d) Lock-in period: 1 year from the date of Allotment
(ii) Details regarding allotment made under Part-B of SRF ESPS 2018 of SRF Limited (SRF) Employees Long Term Share Based Incentive Plan – 2018, as at the end the financial year 2021-22 :

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Particulars Details of Details of
Allotment during Allotment during
FY 2018 - ‘19 FY 2021 - ‘22
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The details of the number of shares issued under ESPS	60,000#	1,95,000
The price at which such shares are issued	`10/-\|`10/-
Employee-wise details of the shares issued to
i) senior management” as defned under regulation 16(1)
(d) of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements)
Regulations, 2015
Mr. Prashant Yadav, President & CEO (FCB & TTB)	20,000 Shares	55,000 shares
Mr. Prashant Mehra, President & CEO (PFB, LF & CF)	20,000 Shares	55,000 shares
Mr. Anurag Jain, President & CEO (SCB & CTG)	20,000 Shares	55,000 shares
Mr. Rahul Jain, President & CFO	-	15,000 shares
Mr. Sanjay Rao, President & CIO	-	12,500 shares
Mr. Ajay Chowdhury, President & CHRO	-	2,500 shares
ii) any other employee who is issued shares in any one	None	None
year amounting to 5% or more shares issued during
that year;
(iii) identifed employees who were issued shares during	None	None
any one year equal to or exceeding 1% of the issued
capital of the company at the time of issuance
Consideration received against the issuance of shares,	`6,00,000\|`19,50,000
if scheme is implemented directly by the company
Loan repaid by the Trust during the year from exercise	NA	NA
price received

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Sl. Particulars Details
No
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1.	Name of the Trust	SRF Employees Welfare Trust
2.	Details of the Trustee(s)	SRF Employees Beneft Scheme LLP
3.	Amount of loan disbursed by company / any	NIL
	company in the group, during the year
4.	Amount of loan outstanding (repayable to company/	NIL
	any company in the group) as at the end of the year
5.	Amount of loan, if any, taken from any other source	NIL
	for which company / any company in the group has
	provided any security or guarantee
6.	Anyother contribution made to the Trust duringtheyear	`5,50,000

(ii) Brief details of transactions in shares by the Trust
(a) Number of shares held at the beginning of the year; : NIL
(b) Number of shares acquired during the year through (i) primary issuance (ii) secondary acquisition, also as a percentage of paid up equity capital as at the end of the previous financial year, along with information on weighted average cost of acquisition per share;: NIL
(c) Number of shares transferred to the employees / sold along with the purpose thereof : NIL
(d) Number of shares held at the end of the year.: NIL
(iii) In case of secondary acquisition of shares by the Trust

Number of shares	As a percentage of paid-up equity capital as at the end of the year immediately preceding the year in which shareholders’ approval was obtained
Held at the beginning of the year	NIL
Acquired during the year	NIL
Sold during the year	NIL
Transferred to the employee during the year	NIL
Held at the end of theyear	NIL

For and on Behalf of the Board

		Ashish Bharat Ram
Date:	30thMay 2022	Chairman & Managing Director
Place:	New Delhi	(DIN – 00671567)

Bonus shares in the ratio of 4 equity shares for every 1 equity shares were issued in respect of these shares on 15[th] October 2021

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FINANCIAL STATEMENTS

Annexure - IV to the Board’s Report

INDEPENDENT AUDITORS’ CERTIFICATE ON COMPLIANCE WITH THE CORPORATE GOVERNANCE REQUIREMENTS UNDER SEBI (Listing Obligations and Disclosure Requirements) REGULATIONS, 2015

TO

Restriction on use

The certificate is addressed and provided to the Members of the Company solely for the purpose of enabling the Company to comply with the requirement of the Listing Regulations and should not be used by any other person or for any other purpose. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this certificate is shown or into whose hands it may come without our prior consent in writing.

THE MEMBERS OF SRF LIMITED

For B S R & Co. LLP

This certificate is issued in accordance with the terms of our engagement letter dated 18 May 2022.
We have examined the compliance of conditions of Corporate Governance by SRF Limited (“the Company”), for the year ended March 31, 2022, as stipulated in regulations 17 to 27, clauses (b) to (i) of regulation 46(2) and paragraphs C, D and E of Schedule V of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from time to time (“Listing Regulations”) pursuant to the Listing Agreement of the Company with Stock Exchanges.

Place: Delhi Date: 27 May 2022

Chartered Accountants
Firm's Registration Number: 101248W/W-100022

Kaushal Kishore

Partner Membership Number: 090075 UDIN: 22090075AJTKND7904

Management’s Responsibility

The compliance of conditions of Corporate Governance as stipulated under the listing regulations is the responsibility of the Company’s Management including the preparation and maintenance of all the relevant records and documents. This responsibility includes the design, implementation and maintenance of internal control and procedures to ensure the compliance with the conditions of Corporate Governance stipulated in the Listing Regulations.

Auditors’ Responsibility

Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
Pursuant to the requirements of the Listing Regulations, it is our responsibility to provide a reasonable assurance whether the Company has complied with the conditions of Corporate Governance as stipulated in Listing Regulations for the year ended March 31, 2022.
We conducted our examination of the above corporate governance compliance by the Company in accordance with the Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) and Guidance Note on Certification of Corporate Governance both issued by the Institute of the Chartered Accountants of India (the “ICAI”), in so far as applicable for the purpose of this certificate. The Guidance Note requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI.
We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the abovementioned Listing Regulations.
We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.

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Annexure - V to the Board’s Report

SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED MARCH 31, 2022

[Pursuant to section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]
d) Wherever required, we have obtained the Management representation about the compliances of laws, rules and regulations and happening of events etc.

To,

The Members

SRF Limited

(CIN: L18101DL1970PLC005197) The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, 2[nd ] Floor, Mayur Place, Mayur Vihar Phase I Extension, New Delhi-110091

e) The compliance of the provisions of the corporate and other applicable laws, rules, regulation, standards is the responsibility of the management. Our examination was limited to the verification of procedures on test basis.

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by SRF Limited (hereinafter called “the Company”) for the financial year ended March 31, 2022. Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.

f) The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the management has conducted the affairs of the Company.
Based on our verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of Secretarial Audit, we hereby report that in our opinion, the Company has, during the audit period covering the financial year ended on March 31, 2022 (“Audit Period”) complied with the statutory provisions listed hereunder and also that the Company has proper Board processes and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

We report that

a) Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to express an opinion on these secretarial records based on our audit and we adhered to best professional standards and practices as could be possible while carrying out audit.
b) We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices, we followed, provide a reasonable basis for our opinion.
We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the Audit Period according to the provisions of:
(i) The Companies Act, 2013 (“the Act”) and the rules made thereunder;
c) We have not verified the correctness and appropriateness of the financial statements of the Company.
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings, wherever applicable;
(v) The following Regulations prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):-
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;
(d) The Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021;
(e) The Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021 {Not applicable during the audit period};
(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Act and dealing with client;
(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2021 {Not applicable to the Company during the audit period};
(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018 {Not applicable to the Company during the audit period}; and
(i) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015;
We have also examined compliance with the applicable clauses of the Secretarial Standard on Meetings of the Board of Directors and on General Meetings issued by the Institute of Company Secretaries of India.
We report that the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines and Standards, to the extent applicable, as mentioned above, during the audit period.
(vi) The Company is engaged in manufacturing of Chemicals & Other Businesses plants located at Alwar, Rajasthan; Bharuch, Gujarat, Udham Singh Nagar, Uttarakhand and Thiruvallur, Tamil Nadu; Technical Textiles plants at Manali, Tamil Nadu; Bhind, Madhya Pradesh; Thiruvallur, Tamil Nadu and Pudukottai, Tamil Nadu; and Packaging Films plants at Udham Singh Nagar, Uttarakhand and Indore and Dist. Dhar, Madhya Pradesh. As informed by the management, following are some of the laws specifically applicable to the Company: -
Narcotics Drugs and Psychotropic substance Act, 1985;
Legal Metrology Act, 2009;
SEZ Act, 2005 and SEZ Rules, 2006;
The chemical weapons convention Act, 2000;
On the basis of management representation, recording in the minutes of Board of Directors and our check on test basis, we are on the view that the Company has ensured the compliance of laws specifically applicable on it.
We further report that the Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors including woman director. The changes in the composition of the Board of Directors that took place during the audit period were carried out in compliance with the provisions of the Act.
Adequate notice was given to all directors to schedule the Board Meetings, agenda and

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detailed notes on agenda were sent in advance of the meetings and there exists a system for seeking and obtaining further information and clarifications on the agenda items before the meeting for the meaningful participation at the meetings.

Special Resolution for cancellation of unissued portion of Authorized Preference Share Capital representing 2,00,00,000 Cumulative Preference Shares of 100/each aggregating to 200,00,00,000/- and correspondingly increase in Authorised Equity Share Capital to 32,00,00,000 Equity Shares of 10/- aggregating to 320,00,00,000/- in lieu of the cancelled unissued portion of the Authorized Preference Share Capital of the Company and consequent alteration of the Memorandum of Association;

As per minutes, Board decisions were carried out with requisite majority. There were no dissenting views which were required to be captured and recorded in the minutes.

We further report that there are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

Ordinary Resolution for issue of Bonus Shares in the proportion of 4 (four) fully paid up equity shares for every 1 (one) existing fully paid up equity share. After allotment of these bonus shares, the paid-up share capital of the Company was increased to ` 296,22,60,250/-.

We further report that during the audit period

the Shareholders at their Annual General Meeting held on 31[st] August, 2021 passed a Special Resolution to Offer or invitation to subscribe to secured/unsecured Redeemable Non-Convertible Debentures in one or more series/ tranches, aggregating upto ` 1500 Crores (Rupees Fifteen Hundred Crores), on private placement basis.
For Sanjay Grover & Associates Company Secretaries
Firm Registration No.: P2001DE052900

Devesh Kumar Vasisht

Partner
CP No.: 13700
Date: May 30, 2022 Mem. No. F8488
the Shareholders of the Company passed Date: May 30, 2022 Mem. No. F8488 the following resolutions by way of postal Place: New Delhi UDIN: F008488D000427929 ballot on 6[th] October, 2021:

Annexure - VI to the Board ‘s Report

DETAILS PERTAINING TO REMUNERATION AS REQUIRED UNDER SECTION 197(12) OF THE COMPANIES ACT, 2013 READ WITH RULE 5(1) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014

(i) The percentage increase in remuneration of each Director, Chief Financial Officer, Company Secretary and CEO during the financial year 2021-22 and ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year 2021-22 are as under:

==> picture [422 x 55] intentionally omitted <==

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Sl. Name of Director/KMP and Remuneration of % Increase in Ratio of remuneration
No. Designation Director/KMP for Remuneration of each Director to
in the Financial median remuneration of
financial year
2021-22 ( ` /Crores) Year 2021-22 employees
1. Arun Bharat Ram [ 1, 2] 12.41 63.07% 248.19
----- End of picture text -----

1.	Arun Bharat Ram1, 2	12.41	63.07%	248.19
2.	Chairman Ashish Bharat Ram1	12.76	36.03%	255.20
3.	Managing Director Kartik Bharat Ram1	12.48	35.49%	249.57
	Deputy Managing Director
4.	Meenakshi Gopinath3	0.06	(62.94%)	1.26
	Director (CSR)
5.	Tejpreet S Chopra	0.21	10.53%	4.20
	Non-Executive Director
6.	Lakshman Lakshminarayan	0.19	2.11%	3.88
	Non-Executive Director
7.	Vellayan Subbiah	0.19	11.76%	3.80
	Non-Executive Director
8.	Bharti Gupta Ramola	0.19	7.22%	3.86
	Non-Executive Director
9.	Yash Gupta	0.21	11.58%	4.24
	Non-Executive Director
10.	Puneet Dalmia	0.19	9.41%	3.72
	Non-Executive Director
11.	Pramod G Gujarathi	0.22	8.75%	4.35
	Director (Safety and Environment)
12.	Prashant Mehra4	5.68	25.69%	Not Applicable
	President & CEO (Packaging Films
	Business, CF & LF)
13.	Prashant Yadav4	5.66	28.70%	Not Applicable
	President & CEO
	(Fluorochemicals Business and
	Technical Textile Business)
14.	Anurag Jain4	5.61	26.12%	Not Applicable
	President & CEO (Speciality
	Chemicals Business and CTG)
15.	Sanjay Chatrath2	2.43	(12.02%)	Not Applicable
	President and CEO - TTB
16.	Rahul Jain4	2.12	20.23%	Not Applicable
	President & CFO
17.	Rajat Lakhanpal	0.78	5.10%	Not Applicable
	VP - Corporate Compliance and
	Company Secretary

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(ii) The median remuneration of employees of the Company as on March 31, 2022 was 0.050 Crores as compared to 0.047 Crores as on March 31, 2021. The increase in median remuneration was 6.59% as compared to 2020-21.

Annexure - VII to the Board’s Report

(iii) There were 6674 permanent employees on the rolls of the Company as on March 31, 2022.
(iv) Average percentage increase already made in the salaries of employees other than the managerial personnel in the last financial year i.e. 2021-22 and its comparison with the percentage increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration.

Category Employees’ remuneration (other than Directors)	Average Increase 10.02%
Managerial remuneration(Directors)	41.41%

The increase in managerial remuneration and remuneration of other employees is a function of many factors such as company performance, compensation philosophy, market competitiveness, local agreements with unions and the total number of employees. Percentage increase in employees remuneration (other than Directors) includes increase on account of shares issued under ESPS during the year.

v) It is hereby affirmed that the remuneration paid is as per the Nomination, Appointment and Remuneration Policy of the Company.

Notes:

1 Designations as on March 31, 2022. After the resignation of Mr. Arun Bharat Ram, Executive Chairman, and re-designation of Mr. Ashish Bharat Ram and Mr. Kartik Bharat Ram, the designations have been changed w.e.f. 1[st] April 2022 as below
Chairman to Chairman Emeritus
Managing Director to Chairman and Managing Director
Deputy Managing Director to Joint Managing Director
2 Remuneration of outgoing employees includes, Leave encashment and other Retirals. Date(s) of resignation and retirement are as below:
Mr. Arun Bharat Ram - March 31, 2022 (resignation)
Mr. Sanjay Chatrath – October 31, 2021 (retirement)
3 Retired on August 31, 2021.
4 Remuneration excludes perquisite value of ESPS and tax paid thereon by the Company. Remuneration including these are given below:-

Name Prashant Mehra	Designation President & CEO	Remuneration including Perquisite value of ESPS and Tax(in`Crores) 22.29	% Increase in Remuneration in the Financial Year 2021-22 393.23%
	(PackagingFilms Business,CF & LF)
Prashant Yadav	President & CEO	22.28	406.27%
	(Fluorochemicals Business and Technical Textile Business)
Anurag Jain	President & CEO (SpecialityChemicals Business and CTG)	22.23	399.45%
Rahul Jain	President & CFO	6.57	273.40%

For and on Behalf of the Board

Ashish Bharat Ram

Chairman & Managing Director (DIN – 00671567)

Date: May 30, 2022 Place: New Delhi

Conservation of Energy – Measures taken:

4. Packaging Films Business, Indore DTA

  - Saved 1,31,500 KWH from installation of drive in hot oil system of BOPP line to optimize oil flow without compromising the process and quality

1. Laminated Fabrics Business, Kashipur

Saved 424582 Kwh / annum by Banbury A, Banbury B and Mixing mill A automation on calender line
Saved 235 MT of pet coke by commissioning ash recirculation system in pet coke heater
Saved 89.6 MT of furnace oil / annum by recirculation system in pet coke heater integrating hot oil circulating systems of PFB & LFB • Saved 20 KL water by using cooling tower water in place of chilled water from Tetra Ethylene
• Saved 27588 Kwh / annum by efficient Glycol (TEG) cooling system
Saved 27588 Kwh / annum by efficient operation of compressed air systems

5. Packaging Films Business, Kashipur

2. Coated Fabrics Business, Gummidipoondi

Saving of 50,000 KWH by replacing one more piston type vacuum pump by installation of energy efficient vacuum pump in metallizer. Amount spent – INR 26.56 lacs
Savings of 340 MT Husk in solid fired thermic fluid heater by efficient operation and maintenance of system and production planning
Saved 30,000 KWH by installation of Solar Geyser in guest house and canteen.

3. Packaging Film Business, Indore (SEZ)

Saved 3,43,314 KWH by installation of close loop cooling tower and reducing cooling load from utility chillers for Line I Chill Roll, Machine Direction Oriented (MDO), Take up and Transfer (TUT) and Air Handling Units (AHUs)

6. FCB Bhiwadi

Saved 1.8 lac units of electricity, 400 MT of steam and 90 MT of LSHS in AHF plant by implementing the following measures:
- a. Shifting crude tank from ground floor to first floor to increase the pump suction head
Saved 2,04,820 KWH by upgradation of Line I and Line II air washers, line II & metallizer AHUs (Air Handling Unit) and exhaust blower fan with new energy efficient (EC-5) plug fans - Amount spent – 59.80 lacs
b. Changing crude HF Pump from centrifugal to positive displacement pump
c. Improving the condensers & reboiler cleaning process using hydro jetting
Saved 1,18,000 KWH by optimization of chilled water pump for head, flow, and energy efficient motors - Amount spent (34.86 lacs)
d. Replacing the distillation column with improved internal design

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e. Changing the drift eliminator design 8. SCB Bhiwadi from honeycomb type to wooden type •
from honeycomb type to wooden type • Water conservation of 45 KL / day by various water saving & control measures
f. Modifying the cooling water circuit implemented at site design
- Saving of 206 MT steam ( ` 2.8 lacs) by optimizing steam traps & installation of tracer traps
Saved 3.5 lac units of electricity by improving the C1 recycling design in CMS plant
Saving of 2.04 lacs units of electricity ( ` 17.15 lacs) by installing variable frequency drives in equipment
Saved 0.12 lac units of electricity by replacing old lighting luminaires with LEDs
Saved 0.20 lac units of electricity by installing a variable frequency drive in AHF plant
Saving of 3827 units of electricity ( ` 0.31 lacs) in lighting by replacing conventional lights with LEDs
Saved 0.10 lac units of electricity by reducing and optimizing the heat load of rotary UPS panel

9. SCB Dahej

  - Savings of 532 MWH ( ` 29.26 lacs /annum) by replacing brine with chilled water from process chiller

7. FCB Dahej

Savings of 50.4 MWH ( ` 2.77 lacs /annum) by exchanger replacement in brine package
Saved 235 MT of furnace oil in -134a plant by optimizing the fuel air ratio to ensure complete combustion of fuel
Savings of 1360 MWH ( ` 74.8 lacs /annum) by power consumption optimization through pumping system
Saving of 14 lac units of electricity by improving the heat transfer coefficient of brine chiller
Savings of 133 MWH ( ` 7.31 lacs /annum) through heat load optimizations for CT
Saved 2.9 lac units of electricity by optimizing operations to take advantage of favorable climatic conditions
Savings of 776 MWH ( ` 42.68 lacs /annum) by installation of automated systems
Saving of 321.4 MWH ( ` 17.67 lacs /annum) by improving power factor
Saved 9.5 lac units of electricity by optimizing and re-routing the air compressor load
Savings of 566.9 MWH ( ` 31.18 lacs / annum) by utilization & removal of VFD / soft starter
Saved 0.5 lac units of electricity by installing new energy efficient motors
Other savings of ` 9.42 lacs /annum
Saved 0.15 lac units of electricity by replacement of CFL to LED fixture

10. Technical Textile Business – Gwalior

Annualized saving of 8.30 lacs kwh achieved by replacing conventional air blowers with energy efficient mono block fans in air washers
Saved 0.15 lac units of electricity by installing light detector Resistor (LDR) and timer
Annualized saving of 0.50 lacs kwh achieved by Installing energy efficient cooling water pump
Annualized saving of 0.58 lacs kwh achieved by fan speeds regulations in lean production period, stopping fans in accordance to heat load and ambient condition in Textile AHUs power
Annualized saving of 0.53 lacs kwh achieved by Installing energy efficient chilled water pump
Annualized saving of 1.66 lacs kwh achieved by PIY take up fan speeds regulations in accordance to heat load and ambient condition
Annualized saving of 0.72 lacs kwh achieved by replacing chilled water coils of quench air washer plant-I

13. Technical Textile Business – Viralimalai

11. Technical Textile Business – Manali

Annualized saving of 0.15 lacs kwh achieved by optimization of lighting (replacement mercury / fluoro cent with LED fittings)
Annualized saving of 1.95 lacs kwh achieved by installation of new EC fans in Textile AHU 1B & AHU 2
Annualized saving of 0.18 lacs kwh achieved by replacing TFO- motor from 40 HP to 30 HP and weft motor from 50 HP to 30 HP
Annualized saving of 0.13 lacs kwh achieved by installation of energy efficient motor (IE4 – 90KW) in spinning extruder (1 no’s)
Annualized saving of 0.08 lacs kwh achieved by replacing Sulzer RUTI loom motor capacity from 10 HP to 5 HP
Annualized saving of 1.12 lacs kwh achieved by air power consumption optimization by ultrasonic study and leakage arresting
Annualized saving of 0.20 lacs kwh achieved by Installed energy efficient air compressor in Plant 2

12. Technical Textile Business – Gummidipoondi

Annualized saving of 1.72 lacs kwh achieved in semi variable power by installation of CC2 Capital Investment on Energy Conservation twisting machines in the same textile shed Equipment: TTBM:
Annualized saving of 1.40 lacs kwh achieved by optimizing twister traveler weight
Installation of energy efficient motor (IE4 – 90KW) in spinning extruder (1 no’s). Total investment - ` 4.5 lacs
Annualized saving of 0.65 lacs kwh achieved by 4 zone operation in dipping
Installation of mew EC fans in Textile AHU
• Annualized saving of 1.26 lacs kwh achieved 1B & AHU 2. Total investment - ` 45 lacs by compressed air power savings through TTBV:
better SPC & air loss reduction through ultrasonic leak detector • The energy efficient air compressor for plant 2 is a capex of ` 6.65 lacs
Annualized saving of 3.99 lacs kwh achieved by chillers and auxiliary change overs from high capacity to lower capacity w.r.t heat load and better SPC
Packaging Film Business, Indore SEZ • Installation reinforced chain flaps in line II HS9 model chain – INR 426 lacs

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Installation of 3-way metal separator of new molecules used as intermediates by the system for Line II co-extruders – INR 65.72 Pharmaceutical and Agrochemical customers. lacs The inhouse R&D helps development of novel cost-effective routes for both new and existing
• Installation of lightning protection system products, while multiple teams in the Chemical (IS/IEC 62305-2 code)- INR 45.12 lacs Technology Group focus on innovation in cost effective processes development and overcoming
• Infrastructure for smooth utilization of dethe technology barriers to scale up the production
metallized fluff – INR 40.47 lacs to meet market demand.
Restructuring of Power Control Circuit (PCC) During the year, several molecules were developed for the
by installation of 2 MVA energy efficient global innovators, that were challenging in terms of quality
transformers – INR 28.61 lacs and technological parameters. The Business successfully
• Installation of New design Heat Exchanger demonstrated its capability to address innovators’ demand in Line I Air Drying Unit (ADU)- INR 9 lacs at different scales ranging from a few grams to few hundred metric tons by producing a number of high-value products from both dedicated and flexible manufacturing
• Conversion of energy monitoring meters: assets at its sites at Bhiwadi and Dahej. The focus of the ` 25 lacs Business is to create value for its customers by addressing complexity across the value chain.

SCB Bhiwadi:

Renewable energy utilization at warehouses: ` 15 lacs
The technological teams in conjunction also worked on improving the technology, lowering the cost of
• Installation of energy efficient compressors: production, and expanding the plants’ capacities.
` 40 lacs
Some of the areas where technology has been absorbed in this period are:
Cooling tower upgradation of plants: ` 45 lacs

technological advancements, people, and processes, to enhance learnings, and overall value proposition for the customers.

TTB:

“The R&D centre of Technical Textiles Business is located at Manali, Chennai. Equipped with stateof-the-art Pilot facilities and sophisticated testing laboratories for evaluating Polymers, Fibers and fabrics, the TTB-R&D centre aims at maximizing competitiveness of Technical Textiles Business through market oriented new product/ technology development. In this regard, the R&D centre has developed many variants of Polyester Industrial Yarns as reinforcements in geotextiles and Aramid based reinforcement fabric for hoses, each tailor-made for the respective application.

Apart from the developments in existing business space, novel products involving Nano-technology are also being developed by this centre in close association with leading Academic and Research Institutes in India and abroad for various research projects. TTBR&D also works in close collaboration with major

customers for joint developments in the field of Tyre cords, belting fabrics and other Mechanical Rubber Good reinforcements”

C) Foreign exchange earnings and outgo

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----- Start of picture text -----

( ` in Crores)
Particulars Year ended Year ended
March 31, 2021 March 31, 2022
----- End of picture text -----

	Foreign Exchange Earnings	3325.05	4,614.26
	Foreign Exchange outgo Net Foreign Exchange Earnings	1686.70 1638.35	3,114.78 1,499.48
		For and on Behalf of the Board

Ashish Bharat Ram Date: May 30, 2022 Chairman & Managing Director Place: New Delhi (DIN: 00671567)

VFD installation of ` 15 lacs

SCB Dahej:

Investment in providing heat exchanger to stop brine chiller: ` 6 lacs
Investment in providing higher capacity evaporator in brine package: ` 9 lacs
Investment in installation of automated systems: ` 33 lacs
Other investments of ` 2.4 lacs

SCB: Technology Absorption

Technology plays a pivotal role in development of complex products within shorter timelines for the Specialty Chemicals Business. The technology teams at SRF are actively engaged in development

Building capabilities and exploring novel technologies to develop new age molecules
Capacity and production yields of several product were significantly enhanced
Improvement of in-process norms to reduce costs
Focus on automation to improve process stability and costs
Strong emphasis on waste generation minimization and ensuring process safety
Enhanced efforts to create and protect IP

The Business would continue to benefit from technology absorption as it continues to invest in the

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Management Discussion & Analysis

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In the following pages, the Management will provide its perspective on the operating and financial performance of the Company during FY 2021 - ‘22 and an outlook of the business performance in the coming years.

Businesses

SRF Limited is a chemical-based, multi-business conglomerate engaged in the manufacturing of industrial and specialty intermediates. The Company is widely recognised and well respected for its R&D capabilities globally, especially in the niche domain of chemicals. SRF Limited is a market leader in most of its business segments in India with a significant global presence. The Company has operations in four countries namely India, Thailand, South Africa, and Hungary. SRF has commercial interests in more than ninety countries and classifies its businesses as Technical Textiles Business (TTB), Chemicals Business (CB), Packaging Films Business (PFB), and Other Businesses.

Technical Textiles Business

FY 2021 - ‘22 started on a difficult note with lockdown restrictions due to the second wave of COVID-19. However, the Technical Textiles Business (TTB) continued to operate all its manufacturing plants with strict adherence to safety measures resulting in top-notch product quality.

In addition, the Business faced supply chain challenges, but no plants were shut down due to shortage.

Tyre Cord Fabrics (TCF)

Nylon Tyre Cord Fabric (NTCF) segment witnessed strong demand during the first six months of the year due to pent-up demand from replacement and OEM markets. However, in H2, the market witnessed steep decline because of low original equipment (OE) tyre sales and a subdued replacement market. This led to lower capacity utilisation of TCF in H2 FY 2021 - ‘22.

Belting Fabrics (BF)

Steel, cement, coal, and power generation industries are key end-user industries for the Belting Fabrics segment. Each of these industries experienced high growth in FY 2021 - ‘22. These market dynamics led to a significant increase in business volume. The belting fabrics segment also commercialised a few key high-end Value-Added Products (VAPs), which contributed to the Business delivering its best results in FY 2021 - ‘22. Furthermore, the BF segment completed its approved capacity expansion projects in FY 2021 - ‘22.

Polyester Industrial Yarn (PIY)

The Polyester Industrial Yarn (PIY) segment achieved increased volume in FY 2021 - ‘22. Despite an unfavourable product mix, the performance of the segment remained stable. PIY segment will further consolidate its position in FY 2022 - ‘23 and focus on profitable product sales mix.

Outlook

In FY 2022 - ‘23, all trends point to a positive outlook for the Indian economy, infrastructure development,

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segments. SRF was able to maintain its share and launched one new product early in the year. Dymel®/ Propellants witnessed an increased market share along with entry in new geographies.

and agricultural growth. This is likely to have a positive affect on the performance of the Technical Textiles Business. We expect an improvement in demand & hence enhanced capacity utilisation.

Chemicals Business

Both our sites had stable and safe operations throughout the year. Regardless of various negative external factors, the overall business performance has been stable and higher than last year.

The Chemicals Business comprises two different product segments, namely Fluorochemicals and Specialty Chemicals .

Fluorochemicals

Outlook

Despite disrupted recovery, higher inflation, rise in energy and raw material prices, supply chain bottlenecks, we anticipate an increase in demand on account of pent-up refrigerants requirement in the domestic market and in the industrial chemicals segment.

Refrigerants & Propellants and Industrial Chemicals

FY 2021 - ‘22 has been a volatile year, with many uncertainties throughout the year. The year started on a positive outlook, which was soon hit by COVID-19 second wave, semiconductor chip shortage, supply chain issues, force majeures by suppliers, among others. This impacted the domestic refrigerant market negatively. However, the international markets remained strong throughout the year, and we were able to leverage on this opportunity, resulting in our exports sales going up significantly.

Exports are likely to remain stable. More specifically, in the United States, with our current reasonable business share and a positive market outlook, we expect to register healthy performance, going forward.

Overall, the Business is anticipated to improve its performance with the commissioning of new plants like CMS, PTFE, along with other cost improvement initiatives including supply chain stabilisation.

The industrial chemicals market witnessed growth due to an expansion in the pharma and agrochemicals

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Specialty Chemicals Business

In FY 2021 - ‘22, the Specialty Chemicals Business (SCB) maintained its growth momentum, despite being impacted by the 2nd wave of pandemic, which resulted in challenges such as availability of manpower and other resources. Nevertheless, both sites managed uninterrupted production. In the later part of the year, the Business encountered challenges, such as rising crude prices, logistics issues, and global shortage of some input material that increased the prices of key raw materials required in various processes.

The Business focussed on the customers’ key products and their developmental project requirements, while ensuring the production capacities were optimally utilised during the year. This ensured continuity of customers’ supply chain. The synergetic effort of all the teams ensured that even in challenging times, the Business maintained its growth trajectory and continued advancing on its key strategic priorities.

The agility demonstrated in supplying some critical and complex intermediates in challenging times was lauded by all our customers. Demonstration of operational excellence by both the sites also helped the Business successfully convert market opportunities into commercial propositions.

Furthermore, we continued our ‘Innovation and Technology Leadership’ journey by launching several new agrochemical and pharma intermediates. In addition, we also enhanced production capacities of several plants at both the sites, while reducing consumption norms of some raw materials, thereby offsetting the impact of higher raw material prices to some extent.

The Business continues to evaluate its capabilities vis-à-vis the market needs and takes measures to secure its ability to deliver complex specialty products to meet the customers’ requirements. During the year, we enhanced our market positioning by commissioning three new dedicated plants.

During the year, SCB secured the Board’s approval to build its fourth Multipurpose Plant and a new Pharma Intermediates facility, among other new upcoming facilities at Dahej, Gujarat. The Business continues to make investment towards safer, cleaner,

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We continued our ‘Innovation and Technology Leadership’ journey by launching several new agrochemical and pharma intermediates.

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The Business focussed on the customers’ key products and their developmental project requirements, while ensuring the production capacities were optimally utilised during the year.

and leaner operations, and further strengthen its sustainability initiatives.

Outlook

The Specialty Chemicals Business remains focussed on agrochemical and pharmaceutical segments, where it collaborates with major global innovators for process development, commercialisation, and production of complex, new-age molecules having downstream application in agrochemical and pharmaceutical segments.

With sustainability and environment at the heart of product development, the Business will continue in its endeavour to deliver better value to its customers. We remain committed to invest in emerging and futuristic technologies, while focussing on operational excellence to grow sustainably.

Chemicals Technology Group

The Chemicals Technology Group (CTG) has been instrumental in bringing path-breaking technologies for new products’ development and introduction of new chemistries for the growth of the Fluorochemicals and Specialty Chemicals Businesses.

During the year, CTG continued to boost its capabilities and added new technologies, to support the Businesses. The centrepiece of the sustained growth momentum was technological advances and breakthroughs achieved by our team of researchers and scientists. Today, CTG has transformed into the innovation and technology leadership centre at SRF, developing a variety of new technologies and platforms to bolster SRF into next-level technology play.

For over two decades, CTG has enabled the Business growth in Fluorinated molecules and now it is increasingly engaged in the development of complex non-Fluorinated intermediates. It is crucial to keep on enhancing CTG’s capabilities and support systems with rising complexity in developing products and reducing timelines for delivery to market. The R&D and scale-up facilities at Bhiwadi were augmented during the year and a new R&D facility has been commissioned at Bhiwadi to achieve this. In addition, the R&D has been integrated into one location at Bhiwadi, to further improve the collaborative efforts of researchers and scientists.

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R&D worked on 57 molecules and many products were successfully taken up for process development. More than 20 molecules were taken up for the scale-up studies and 70% were commercially produced in multipurpose and dedicated plants.

The dedicated R&D facilities, developmental labs, and pilot plant facilities, having many scientists and engineers are working together to achieve the innovation and technology leadership at SRF. SRF continues to invest in R&D for creating propositions for the future and Capital and Revenue expenditures of ~ ` 110 crore was spent during FY 2021 - ‘22.

we launched several new products and grew overall BOPET VAP sales significantly over the previous year. Our team worked relentlessly to start the new BOPP film plant at Thailand despite severe travel restrictions and limited availability of supplier personnel and field experts on-site due to COVID-19 pandemic. Work on the upcoming BOPP film line in India is also progressing well and timely vertical start-up of this line will be an important focus area for us in FY 2022 - ‘23.

Even during challenging circumstances, the Business is driven by its philosophy of ETDBW, which keeps us focussed on serving our customers every day. Sustainability initiatives continue to remain amongst the topmost priorities for the Business. Recognising our commitment and contribution towards various sustainability-related initiatives, we were recently recognised with the prestigious award for Quality & Sustainability by the International Academy for Quality, a well-reputed global forum for promoting quality & sustainability initiatives.

In FY 2021 - ‘22, CTG filed fifty-two patents taking the total count to three hundred and sixty-one patents filed so far. Twenty-one patents were granted in FY 2021 - ‘22 taking the total count of patents granted to the Company to one hundred and fourteen.

Packaging Films Business

FY 2021 - ‘22 has been a good year for the Packaging Films Business (PFB). Increased demand for food packaging accompanied by hard work and passion of the team and our ‘Easy To Do Business With (ETDBW)’ philosophy, helped the Business achieve its best-ever performance.

Outlook

In recent times, several new film lines have been announced in India and globally. In future, we might witness an oversupplied market resulting in pressure on profitability. In FY 2022 - ‘23, SRF’s primary focus will be on running its plants optimally and keeping costs under control. Our manufacturing capability in VAPs has been enhanced by the recent addition of paper metallisation and Alox coating assets and we plan to leverage our capabilities fully to further enhance our VAP portfolio. Efforts will be directed towards the vertical start-up of the BOPP line in India, both in terms of production and sales. In addition, we will continue our work on various sustainability

All plants maximised their production, kept costs under control and created their own benchmarks. We could achieve our highest ever output of almost 3,07,000 MT during the year while sustaining best-in-industry cost structures. While optimising our assets to the fullest, we continuously strive to maintain a safe and healthy environment at our plants. In our journey of enhancing our Value-Added Products (VAPs) portfolio,

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initiatives driven by the ‘3R’ approach - Reduce, Reuse and Recycle. During the year, we will also keep a close watch on the macro scenario and will remain flexible to adapt our strategy accordingly.

Human Resources

At SRF, we ensured that we made our people feel a strong sense of security and belongingness, concern for their well-being and above all, a sense of safety, especially in their toughest times. The year began with a devastating wave of the pandemic, and the entire country grappled with it. Our prime focus at this time was to provide ‘whatever’ was needed by our people. From proper treatment to financial and/or emotional support to medicines to medical equipment, whatever was needed, was provided to the best of our abilities.

Other Businesses

Coated and Laminated Fabrics Businesses

Coated and Laminated Fabrics Businesses were negatively impacted in the first quarter due to the situation arising from the COVID-19 pandemic. Demand for Coated Fabrics recovered during the year as restrictions on events and outdoor activities eased. SRF continued its price and volume leadership in Laminated Fabrics (LF) Business by selling at full capacity and achieving its highest-ever sales during the year. However, margins remained under pressure in LF as increase in costs could not be passed on completely to the customer due to excess supply.

In the backdrop of COVID-19, financial well-being also became an important component of employee happiness and therefore, the organisation made concerted efforts to relieve this financial strain by placing increased importance on compensation and benefits, not just limited to but focussing more on COVID-related benefits such as higher insurances, access to proper medical treatment, timely and free vaccination, amongst the many other areas covered.

Outlook

In FY 2022 - ‘23, we expect the demand to pick up as all restrictions on outdoor events have been lifted. In addition, with an overall revival in economic activity, the Business is anticipating healthy performance. In both the Businesses, the focus will be on increasing sales and working on various cost reduction initiatives.

HR at SRF has been working with agility to reshape and automate its processes, provide custom-made decisions aligning to individual needs. To understand these individual needs even better, we reached

out to Gallup and hope to soon roll out customised solutions in areas that matter most. One such solution was the automated induction plan which was rolled out last year.

Information Technology

Information Technology supported the hybrid work environment with staff working from different locations, bridging the distances very effectively through collaboration solutions. As the working practices stabilised in the new normal, the IT focus shifted to strategic growth projects and core systems modernisation this year.

Both development and diversity have been at the forefront when it comes to the strategic agenda for the HR function. Building and sustaining diversity by making fundamental cultural changes will remain at the core of the organisational agenda till we are able to achieve desired targets in this space. On the development front, building emotional intelligence through specially-crafted programs for different people in different career stations became a key success factor. Development through special flagship journeys also picked a lot of steam leading to both acceptance and recognition of these.

The ERP system which is the main system of records and transaction processing for the Company is undergoing a generational upgrade which will provide many new-age enhancements and business benefits. As part of this project, the underlying hardware capacity was enhanced, and the database versions of all mission-critical applications were migrated to the latest versions. This provides room for the growth aspirations of the Company on reliable platforms.

Industrial Environment

The organisation’s overall employee relations remained positive throughout the year. This was a result of our consistent efforts towards keeping our employees engaged. Various initiatives were implemented at the plants that encouraged participation and collaboration. We maintained a pleasant and cordial working environment across all manufacturing locations and witnessed a high in productivity at most of our manufacturing locations.

The annual planning and budgeting activity is now digitised across all business units giving SRF the benefit of electronically visualising multiple scenarios as the start of the year. The monthly supply chain planning in the Chemicals Business is now fully automated with production batch planning and sourcing being optimally determined considering the market demand and the production capacity constraints, leading to optimal supply chain inventory holding and on-time availability to customers.

The total number of permanent employees at SRF stands at 7,389 at the close of business on March 31, 2022. Of these, 6,674 are based at our Indian locations.

There were some Fin-Tech solutions deployed this year in supplier bill discounting and financial consolidation. An automated solution was deployed whereby vendors

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Building and sustaining diversity by making fundamental cultural changes will remain at the core of the organisational agenda till we are able to achieve desired targets in this space.

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FY 2021 - ‘22 witnessed the strengthening of the Foundation’s Education Program. SRF Foundation turns Government schools into dynamic centres of education.

can auction on a marketplace to bid for early payment of their invoices. The quarterly consolidation and preparation of financial books is a time-consuming exercise. This process was It-enabled on an application which facilitated automated consolidation while consolidating the budget variance explanations and notes to accounts from the finance teams.

took concrete steps in compliance with Section 135 of the Companies Act 2013 during FY 2021 – ‘22.

The Foundation continued to focus on the identified areas of Education, Vocational Skills, Environment, Rural Development, Disaster Management, Promotion of Arts and Culture and affirmative action on sustainable basis. Furthermore, it strengthened its Public Private Community Partnership (PPCP) model to positively affect the lives of people.

In the current scenario, it is important to give our new recruits a streamlined and good experience. The entire recruitment process was digitised to improve the turnaround time while improving the repository of candidates. The employee on-boarding process was also automated to ensure a uniform experience for new joiners.

FY 2021 – ‘22 witnessed the strengthening of the Foundation’s Education Program. SRF Foundation turns Government schools into dynamic centres of education. These schools are transformed into “Model Schools” through physical infra and digital development as well as the academic and school leadership transformation. Today, we have reached 414 Government schools across 24 locations in 12 states directly and indirectly by collaborating with likeminded partners providing quality education to more than 1,52,529 students, and training 4,401 teachers and headmasters.

Information security continues to a major focus area considering the volatile global situation. Solutions were put in place to protect and recover the SRF IT assets from a ransomware attack while also limiting its ability to spread. Automated Vulnerability management solution was put in place to discover and plug security gaps across the enterprise.

SRF will continue to invest in essential Information Technologies to keep operations running optimally while giving businesses an edge to compete globally with innovative offerings.

To promote digital inclusion, SRF Foundation is working on KidSmart Centres, World on Wheels & GetSmart Mobile Digital Labs, Common Services Lab, and Digital Smart TV Classroom Programs in the intervention locations. In addition, the SRF Foundation is committed to turning schools into centres of innovation through future skills programs such as Tinker Coding Program, Atal Community Innovation Centers, Coding for Girls, and ATAL Tinkering Labs.

Community Partnerships

Building on its long-term commitment to the sustainable and inclusive growth of the community, SRF Foundation, the Corporate Social Responsibility arm of SRF Limited, expanded its scope of work and

SRF Foundation undertook several new initiatives to improve the employability of people around its plant locations by providing vocational skills in partnerships with Amway India and Schneider Electric. This initiative benefited 897 school dropout youth and women from the marginalised community in FY 2021- ‘22. The Foundation also supported a child nutrition program through its project, ‘Power of 5’.

Through its Natural Resource Management (NRM) program, SRF Foundation continued to reach the economically weaker families near its manufacturing plant in Bhiwadi, Rajasthan to improve their livelihood by adopting the watershed-based livelihood and environment conservation approach. In FY 2021 – ‘22, the program benefited more than 12,320 people in 35 villages around SRF Bhiwadi plant in the Tijara block where rainfall is below normal, by maintaining 206 earthen dams and ensuring the proper usage of these dams.

SRF Foundation conducted vaccination drive for more than 15,000 people, installed oxygen plants, and provided 60 oxygen concentrators for the benefit of the marginalised community around SRF plant locations.

As part of disaster management, we performed flood relief work in Gwalior, Gummidipoondi and Manali locations by distributing ration kits, blankets, and food to 3,376 people.

During the year, the Foundation was conferred the CSR Times Award (Gold category) for our Rural Education Program.

Internal Control System and Internal Audit

Being an enabling function, Internal Audit & Risk Management steers and coordinates the internal controls and risk management system. It provides standard operating procedures, methods, and tools, which forms the basis for enterprise risk management and internal control process.

The Internal Audit team develops a comprehensive annual internal audit plan employing systematic approach, which is risk-based audit area identification commensurate with the size and nature of business activities of the Company. In addition, the statutory auditor assesses the fundamental suitability of

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internal audit for ensuring the effectiveness of internal financial controls as part of its audit of the annual financial statements. The Internal Audit plan is approved by the Audit Committee, which also reviews compliance to the said plan. The Company has a well-documented system of internal financial controls in place commensurate with its size, scale, and complexity of operations. These controls have been designed to provide reasonable assurance with respect to recording and providing reliable financial and operational information, complying with applicable laws, safeguarding assets, executing transactions with proper authorisation, and ensuring compliance with corporate policies. The controls based on the prevailing business conditions and processes have been tested by internal/reputed external auditors during the year and no reportable material weaknesses in the design or effectiveness were observed.

self-compliance monitoring mechanism in accordance with laid down policies and procedures, regulatory environment through IT-enabled platform such as CSA tool and Compliance Manager.

Risk Management

The Company has developed and implemented a Risk Management Framework, which is approved by the Board. Further, Board has constituted a Risk Management Committee (RMC) to oversee key risks and assist the Board in efficient management of risk management process.

The Risk Management Policy, inter alia, includes identification therein of elements of risk, including those, which in the opinion of the Board/RMC may threaten the existence of the Company or may have a significant material impact. Risk management process has been an integral part of the Company strategy and planning process. The Company has established a risk management framework to identify, assess and frame a response to threats that can affect its business objectives and stakeholders. Further, it is embedded across all the major functions and revolves around the goals and objectives of the organisation. The responsibility of tracking and monitoring the key risks of the business/function periodically and implementing suitable mitigation plans proactively is with the senior executives of various business/ functional units.

The Internal Audit team also monitors and evaluates the efficacy and adequacy of internal control systems in the Company, the ERP solutions, the accounting procedures, and policies at all locations. Based on the gaps reported in the internal audit report, process owners undertake corrective actions in their respective areas and thereby strengthen the controls. Any significant audit observations and corrective actions thereon are presented to the Audit Committee.

The Audit Committee reviews the reports submitted by the Internal Auditors (both internal and external) in each of its meetings. The Company also has a robust and comprehensive framework of Control Self-Assessment (CSA), which promotes

Risk Management Process

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----- Start of picture text -----

Risk Risk Risk Risk Risk
Identification Assessment Prioritisation Treatment Monitoring &
Reporting
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Risk Governance Structure
Business
Board of Risk Management Corporate
Leadership
Directors (BOD)/ Committee Leadership Team
Team (BLT) &
Audit Committee (RMC) (CLT)
Risk Owners
----- End of picture text -----

The key roles and responsibilities regarding risk management in the Company are summarised as follows:

Assist the Board/Audit Committee in evaluating the effectiveness of Risk Management System

1. Board of Directors (BOD) & the Audit Committee:

3. Corporate Leadership Team (CLT):

  - Develop risk management framework and policy

The Board of Directors holds the overall responsibility for an effective risk management system. The Audit Committee of the Board examines the appropriateness and effectiveness of the risk management system at least once a year and reports to the Board
- Review key risks and mitigation action plan
- Review effectiveness of risk mitigation strategies, develop counter measure if any and update the same to RMC

4. Business Leadership Team (BLT) & Risk Owners:

Review the risks that may threaten the existence of the Company
Identification, classification, and prioritisation of risks into high, medium, and low as per risk management framework
Consider the recommendation of Risk Management Committee on Risk Management Plan / Policy
- Identify and implement risk mitigation measures

2. Risk Management Committee (RMC):

Overview Company’s risk management framework and its compliance
Periodically review mitigation measures status, develop counter measures, if any
Identifications of key risks which may significantly impact the performance of the Company
Provide status update of key risks to CLT
Review of policy, key risks as identified by management, provide guidance to the management, and updates the Board & Audit Committee on the same

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Risk Classification

All the risks have been broadly classified into following categories:

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Strategic Risk

Financial & Reporting Risk

Risk arising out of macro-economics and other external conditions which can significantly impact Company’s strategic business decision, future aspiration, and financial performance

Financial reporting risk arises from the evolving accounting and financial reporting requirement, increasingly complex business model, etc.

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Operational Risk

IT and Cyber Risk

Risks of loss due to inadequate manufacturing process, insufficient resources, inadequate processes, safety or failure thereof, insufficient skill or people

Potential loss due to non-availability of technical infrastructure or appropriate software technology, impact on data integrity, data theft or loss of Intellectual Property Right (IPR) due to compromised network security

Regulatory Risk

Risks arising out of regulatory non-compliances

During FY 2021 - ‘22, significant changes in the key financial ratios as per listing regulations were as follows:

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Ratio FY 2021 - ‘22 FY 2020 - ‘21 % Change Remarks
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Interest Coverage Ratio =	19.04	12.02	58.41%	Higher operating margins
(EBDIT - Current Tax) / Gross				and lower fnance costs
Interest and lease payments
Return on Net Worth = PAT /	19.77%	14.70%	34.50%	Increase in PAT by 62.91%
Net Worth				from`925.06 crore in FY21
				to`1,507.01 crore in FY22

Corporate Governance Report

Philosophy of the Company on Corporate Governance

For SRF Limited (SRF), good corporate governance means adoption of best practices to ensure that the Company operates not only within the regulatory framework, but is also guided by broader business ethics. The adoption of such corporate practices — based on transparency and proper disclosures — ensures accountability of the persons in charge of the Company and brings benefits to investors, customers, creditors, employees and the society at large.

Board of Directors

Composition of the Board

As on March 31, 2022, SRF’s Board consisted of 10 Directors, of which four are executives of the Company (including the Chairman, who is an Executive Chairman), and six are independent. Table 1 gives the details of the Board as on March 31, 2022.

Table 1: Composition of the Board of Directors of SRF

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Name of Director Category of No. of No. of Committees Name of Listed
Director Directorships where Chairperson Entities & Category
of Indian or Member of Directorship
Public Ltd Co. (including
(other than SRF Limited) [#]
SRF Limited) Chairperson Member
Mr. Arun Bharat Ram ** Executive 3 - 2 - J K Paper Limited –
Chairman, Independent Director
Promoter
Mr. Ashish Executive, 5 1 1 - KAMA Holdings
Bharat Ram Promoter Limited – Non-
Executive Director
- Havells India Limited –
Independent Director
Mr. Kartik Executive, 3 - 2 - KAMA Holdings Limited
Bharat Ram Promoter – Non- Executive Director
Mr. Pramod G Gujarathi Executive 1 - 1 - Chemiesynth
(Vapi) Limited –
Independent Director
Mr. Tejpreet S Chopra Non-Executive, 3 1 1 - Gujarat Pipavav
Independent Port Limited –
Independent Director
- Indian Energy
Exchange Limited –
Independent Director
- Tube Investments
of India Ltd.
– Independent Director
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Name of Director Category of No. of No. of Committees Name of Listed
Director Directorships where Chairperson Entities & Category of
of Indian or Member Directorship
Public Ltd Co. (including SRF
(other than SRF Limited) [#]
Limited) Chairperson Member
----- End of picture text -----*

Mr. Lakshman	Non-	0	1	-
Lakshminarayan	Executive,
	Independent
Mr. Vellayan Subbiah	Non-	5	1	3	-	Tube Investments
	Executive,					of India Limited –
	Independent					Executive, Promoter
						Director
					-	Cholamandalam
						Investment and
						Finance Company
						Limited - Non-
						Executive Director
					-	Cholamandalam
						Financial Holdings
						Limited - Non-
						Executive Director
					-	CG Power and
						Industrial Solutions
						Limited - Non-
						Executive Director
Mrs. Bharti Gupta	Non-	2	1	1	-	HDFC Life Insurance
Ramola	Executive,					Company Limited –
	Independent					Independent Director
Mr. Puneet Yadu Dalmia	Non-	3	-	-	-	Dalmia Bharat Limited-
	Executive,					Managing Director
	Independent				-	Piramal Enterprises
						Ltd - Additional
						Independent Director
					-	Piramal Capital &
Mr. Yash Gupta	Non-Executive, Independent	1	-	1	-	Housing Finance Ltd - Additional Independent Director

Other directorships does not include directorships of private limited companies, foreign companies and companies registered under Section 8 of the Act.
# Membership & Chairmanship of Stakeholder Relationship Committee & Audit Committee of Indian Public Companies have been considered.
** Mr. Arun Bharat Ram ceased to be Director from the closing of business hours on March 31, 2022 and was appointed as “Chairman Emeritus” wef April 1, 2022.
*** Mr. Ashish Bharat Ram was redesignated as Chairman and Managing Director and Mr. Kartik Bharat Ram was redesignated as Joint Managing Director wef 01.04.2022.

Approval of the shareholders to these changes is being sought in this annual general meeting.

Mr. Arun Bharat Ram is the father of Mr. Ashish Bharat Ram and Mr. Kartik Bharat Ram.

The Board has identified the following skills/expertise/ competencies fundamental for the effective functioning of the Company which are currently available with the Board :

Industry knowledge/experience Technical skills/experience	Industry knowledge/experience Technical skills/experience	Industry knowledge/experience Technical skills/experience	Industry knowledge/experience Technical skills/experience	Industry knowledge/experience Technical skills/experience	Behavioural Competencies	Behavioural Competencies
a)	Consulting Experience	a)	Accounting and	fnance	a)	Integrity and ethical standards
b)	Manufacturing Industry experience b)		Industrial Engineers		b)	Mentoring abilities
c)	Understanding of relevant laws, c)		Talent Management		c)	Critical thinking
	rules, regulation and policy
d)	Analyzing Business Problems	d)	Compliance and	risk	d)	Strategic Planning
e)	Adapting to changing Business	e)	Devising plans for New		e)	Entrepreneurial & Commercial
	Conditions		Business			Acumen
f)	Recommending cost-cutting	f)	Proposing solutions to		f)	Analytical Decision Making
	measures		Business Problems
g)	Recommending Process	g)	Innovation		g)	Customer Centricity
	Improvements				h)	Leading Change
					i)	LeadingPeople
Skills available with Board as per skill matrix -
Sl. No. Name of Director		Industry knowledge/ experience		Technical skills/ experience Behavioural Competencies
1.	Mr. Arun Bharat Ram*	b,d,e f,g		b,e,f,g		a,b,c,d,e,f,h,i
2.	Mr. Ashish Bharat Ram	b,c,d,e,f,g		a,d,e,f,g		a,c,d,e,f,g,h,i
3.	Mr. Kartik Bharat Ram	b,d,e,f,g		c,d,e,f,g		a,b,c,d,e,f,h,i
4.	Mr. Lakshman	b,c,d,e,f,g		a,b,c,f		a,b,e,f,g,i
	Lakshminarayan
5.	Mr. Vellayan Subbiah	a,b,c,d,e,f,g		a,b,e,f		a,c,d,e,f,g,h
6.	Mr. Tejpreet S Chopra	b,c,d,f,g		d,e,f,g		a,c,d,e,f,g,h
7.	Mr. Pramod G. Gujarathi	b,c,f,g		b,d,		a,b,c,f,g
8.	Mrs. Bharti Gupta Ramola	a,c,d,e,g		a,d,f,g		a,c,d,f,g,h
9.	Mr. Puneet Yadu Dalmia	b,c,d,e,f,g		a,b,e,f		a,b,c,d,e,f,i
10.	Mr. Yash Gupta	a,d,e,f,g		a,c,e,f,g		a,b,c,d,e,f,h

* Mr. Arun Bharat Ram ceased to be Director from the closing of business hours on March 31, 2022 and was appointed as “Chairman Emeritus” wef April 1, 2022.

confirmation / disclosures received from the Directors and on evaluation of the relationships disclosed, all Non-Executive Directors are Independent in terms of Regulation 16 of Listing Regulations and Section 149(6) of the Companies Act, 2013.

Certificate from M/s. Rohit Parmar & Associates, Practising Company Secretary (Registration No. 22137) dated April 28, 2022, confirming that none of the Directors on the Board of the Company have been debarred or disqualified from being appointed or continuing as directors of the Company by the SEBI/ Ministry of Corporate Affairs or any such Statutory Authority as stipulated under Regulation 34(3) of the Listing Regulations, is attached to this Report.

The Company has received declarations from all the Independent Directors confirming that they meet the criteria of independence as prescribed both under the Companies Act and Listing Regulations. In terms of Regulation 25(8) of SEBI Listing Regulations, they have confirmed that they are not aware of any circumstance or situation which exists or may be reasonably anticipated that could impair or impact their ability to discharge their duties. Based on the

Independent Directors on the Board are Non-Executive Directors

Our definition of ‘Independence’ of Directors is derived from Regulation 16 of Listing Regulations, and Section 149(6) of the Companies Act, 2013. Based on the

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meeting of the Independent Directors of the Company was held on January 25, 2022, without the attendance of Non-Independent Directors and members of the management.

declarations received from the Independent Directors, the Board of Directors has confirmed that they meet the criteria of independence as mentioned under Regulation 16(1)(b) of the SEBI Listing Regulations and that they are independent of the management.

Familiarisation Programme

None of the Directors on the Board holds directorships in more than ten public companies. None of our Directors serve as a director/ independent director on more than seven listed entities. None of our Directors who is serving as whole time Director/Managing Director in any listed entity is holding position of independent director in more than three listed entities. None of the Directors is a member of more than ten Board level committees nor are they Chairman of more than five committees in which they are members.

Your Company has put in place familiarisation programme for all its Directors including the Independent Directors with regard to their roles, rights, responsibilities in the Company, nature of the industry in which the Company operates, the business models of the Company etc and the familiarisation programme for the Independent Directors is available on the website of the Company at the link https:// - www.srf.com/investors/corporate governance/

Number of Board Meetings

Independent Directors’ Meeting

During 2021-22, the Board of Directors met seven times on the dates as referred below in Table 2.

In accordance with the applicable provisions of Companies Act, 2013 and Listing Regulations, a

Table 2: Attendance of directors in Board Meetings and Annual General Meeting (AGM) held during the year in 2021-22

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----- Start of picture text -----

Name of the Director Date of Board Meeting and Date of
Attendance of Directors AGM and
Attendance
of Directors
May 5, July 28, August October October January March August 31,
2021 2021 31, 2021 15, 2021 25, 2021 25, 2022 28, 2022 2021
----- End of picture text -----

	May 5, 2021	July 28, 2021	August 31, 2021	October 15, 2021	October 25, 2021	January 25, 2022	March 28, 2022	Attendance of Directors August 31, 2021
Mr. Arun Bharat Ram	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Mr. Ashish Bharat Ram	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Mr. Kartik Bharat Ram	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Mr. Pramod G Gujarathi Mr. Tejpreet S Chopra	Yes Yes	Yes Yes	Yes Yes	Yes Yes	Yes Yes	Yes Yes	Yes Yes	Yes Yes
Mr. Lakshman	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Lakshminarayan
Mr. Vellayan Subbiah	Yes	Yes	No	Yes	Yes	Yes	Yes	No
Dr. Meenakshi	Yes	Yes	NA	NA	NA	NA	NA	NA
Gopinath*
Mrs. Bharti Gupta	Yes	Yes	Yes	Yes	No	Yes	Yes	Yes
Ramola
Mr. Puneet Yadu Dalmia	Yes	No	Yes	Yes	Yes	Yes	No	Yes
Mr. Yash Gupta	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes

* Dr Meenakshi Gopinath ceased to be Director – CSR wef 31.08.2021.

Remuneration of Directors

Table 3 gives the remuneration paid or payable to the Directors of SRF Limited for financial year 2021-22 and table 4 gives details of Service Contracts

Table 3: Remuneration Paid or Payable

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----- Start of picture text -----

Sl. Name Salary & Sitting Perquisites Provident Commission Total ( ` In
No Allowances Fees Fund and (Provided)/ Crores)
Superannuation Professional Fees
and leave
encashment
----- End of picture text -----

1	Mr Arun Bharat Ram	3.12		0.29	3.00	6.00	12.41
2	Mr Ashish	4.86	-	1.28	0.61	6.00	12.76
	Bharat Ram
3	Mr Kartik	4.86	-	1.00	0.61	6.00	12.47
	Bharat Ram
4	Mr Pramod G	0.21	-		0.01		0.22
	Gujarathi
5	Dr. Meenakshi		0.01	-	-	0.06	0.06
	Gopinath
6	Mr Tejpreet	-	0.06	-	-	0.15	0.21
7	S Chopra Mr L. Lakshman	-	0.04	-	-	0.15	0.19
8	Mr Vellayan	-	0.04	-	-	0.15	0.19
	Subbiah
9	Mrs. Bharti Gupta	-	0.04	-	-	0.15	0.19
	Ramola
10	Mr. Puneet Dalmia	-	0.036	-	-	0.15	0.19
11	Mr Yash Gupta	-	0.062	-	-	0.15	0.21
	Total	13.05	0.29	2.57	4.23	18.96	39.10

The Nomination and Remuneration Committee has laid down criteria for making payments to non-executive directors, which inter alia, includes level of remuneration /commission payable by other comparable companies, time devoted, experience, providing guidance on strategic matters and such other factors as it may deem fit.

The non-executive directors are entitled to remuneration up to an aggregate limit of one percent per annum of the net profits of the Company. Within the aforesaid limit, the commission payable is determined by the Board and equal amount of commission is payable to all the Independent Non-Executive Directors in accordance with the NRC Policy. For the year under review, remuneration to non-executive directors was approved by the Board of Directors with the interested non-executive directors, not participating or voting in the resolution.

Table 4: Details of Service Contracts

Name of Director	Tenure	Notice Period	Severance Fee
Mr. Ashish Bharat Ram	5 years w.e.f.	3 months by either party	As per the provisions of the
	May 23, 2020		Companies Act, 2013
Mr. Kartik Bharat Ram	5 years w.e.f June 01, 2021	3 months by either party	As per the provisions of the
			Companies Act, 2013
Mr. Pramod Gopaldas	3 years w.e.f.	1 month by either party	Nil
Gujarathi	April 01, 2020

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Shareholding of Non-Executive Directors

Table 5 gives details of the shares held by the non-executive Directors as on March 31, 2022.

Table 5: Equity Shares held by Non-Executive Directors as on March 31, 2022

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Name of Director Category Number of Equity Shares Held
----- End of picture text -----

Mr. Tejpreet S Chopra	Independent	3,335
Mr. Lakshman Lakshminarayan Mr. Vellayan Subbiah Mrs. Bharti Gupta Ramola	Independent Independent Independent	- 67,035 -
Mr. Puneet Yadu Dalmia	Independent	-
Mr. Yash Gupta	Independent	1,000

The Company has not issued any convertible securities to any Director

Details of any joint venture or collaboration agreement

Information Supplied to the Board

The Board has complete access to all information with the Company. Inter-alia, the following information is regularly provided to the Board as a part of the agenda papers well in advance of the Board meetings or is tabled in the course of the Board meeting:

Transactions that involve substantial payment towards goodwill, brand equity or intellectual property
Significant labour problems and their proposed solutions. Any significant development in human resources / industrial relations front like signing of wage agreement, implementation of voluntary retirement scheme, etc
Annual operating plans and budgets and any update thereof
Capital budgets and any updates thereof
Quarterly results of the Company and operating divisions and business segments
Sale of material nature of investments,
• Minutes of the meetings of the audit committee subsidiaries, assets, which is not in the normal and other committees of the Board course of business
Information on recruitment and remuneration of senior officers just below the level of Board, including the appointment or removal of Chief Financial Officer and Company Secretary
Quarterly details of foreign exchange exposures and the steps taken by management to limit the risks of adverse exchange rate movement, if material
Non-compliance of any regulatory, statutory
• Materially important show cause, demand, nature or listing requirements and shareholders
prosecution notices and penalty notices service such as non-payment of dividend, delay
• Fatal or serious accidents, dangerous occurrences, in share transfer, etc any material effluent or pollution problems
The Board periodically reviews compliance reports of
• Any material default in financial obligations to all laws applicable to the Company, prepared by the
and by the Company, or substantial non-payment Company as well as steps taken by the Company to
for goods sold by the Company rectify instances of non-compliances.
Any issue, which involves possible public or product liability claims of substantial nature, including any judgement or order, which may have passed strictures on the conduct of the Company or taken an adverse view regarding another enterprise that can have negative implications on the Company
In addition to the above, pursuant to the Listing Regulations the minutes of the Board meetings of your Company’s unlisted subsidiary companies and a statement of all significant transactions and arrangements entered into by the unlisted subsidiary companies are also placed before the Board.

Code of Conduct

The Company’s Board has laid down a Code of Conduct for all Board members and senior management of the Company. The Code of Conduct is available on the website of the Company, https://www.srf.com/ investors/corporate-governance/. All Board members and designated senior management personnel have affirmed compliance with the Code of Conduct. A declaration signed by the Managing Director to this effect is enclosed at the end of this report.

Risk Management

The Company has laid down procedures to inform the Board members about the risk assessment and minimisation procedures. These procedures are being periodically reviewed to ensure that management controls risk through means of a properly defined framework.

Statutory Committees of the Board

a) Audit Committee

i) Terms of Reference

The terms of reference of the Audit Committee are wide enough covering the matters as per the guidelines set out in the Listing Regulations read with Section 177 of the Companies Act, 2013. These broadly includes approval of annual internal audit plan, review of financial reporting systems, ensuring compliance with regulatory guidelines, discussions on quarterly, half yearly and annual financial results, interaction with statutory, internal and cost auditors, recommendation for

appointment, remuneration and term of auditors, examination of financial statements and auditors’ report thereon, review the functioning of the Whistle Blower Mechanism, review and monitor the auditor’s independence and performance and effectiveness of audit process, approval or any subsequent modification of transactions of the Company with related parties, scrutiny of inter-corporate loans and investments, valuation of undertakings or assets of the company, wherever it is necessary, evaluation of internal financial controls and risk management systems, reviewing with the management adequacy of internal

control system and reviewing the utilization of loan and/ or advances from/ investment by the holding company in the subsidiary company exceeding prescribed limit.

In addition, the Committee also mandatorily reviews:

Management discussion and analysis of financial condition and results of operations;
Statement of significant related party transactions (as defined by the Audit Committee), submitted by management;
Management letters / letters of internal control weaknesses issued by the statutory auditors;
Internal audit reports relating to internal control weaknesses;
The appointment, removal and terms of remuneration of the Chief internal auditor shall be subject to review by the Audit Committee, and
Statement of deviations:
(a) Quarterly statement of deviation(s) including report of monitoring agency, if applicable, submitted to stock exchange(s) in terms of Regulation 32(1).
(b) Annual statement of funds utilized for purposes other than those stated in the offer document/prospectus/notice in terms of Regulation 32(7).
ii) Composition of Audit Committee and Attendance of members in Audit Committee Meeting held during the year
As on March 31, 2022, the Audit Committee of SRF comprised of three Directors all of whom are independent, namely Mr. Lakshman Lakshminarayan as Chairman, Mr. Vellayan Subbiah and Mrs. Bharti Gupta Ramola as members. The constitution of the Committee meets the requirements of Section 177 of the Companies Act, 2013, as

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Secretary of the Company acts as Secretary to the Committee.

well as Regulation 18 of Listing Regulations. All the members of the Audit Committee are financially literate. Chairman, Managing Director, Deputy Managing Director, CFO, Internal Auditors and Statutory Auditors are invitees to the Committee. Company

Table 6 provides details of the Audit Committee meetings held during the year 2021-22 and attendance of its members.

Table 6: Attendance Record of Audit Committee Meetings during 2021-22

Name of Members Category	Date of Audit Committee Meeting and Attendance of Members
	May 5, 2021 July 28, 2021 October 25, 2021 January 25, 2022
Mr. Lakshman Lakshminarayan (Chairman) Independent, Non-Executive Mr. Vellayan Subbiah Independent, Non-Executive Mrs. Bharti Gupta Ramola Independent, Non-Executive	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

b) Nomination and Remuneration Committee

  - Evaluation of the performance of Directors (other than independent directors).

i) Terms of Reference :
The terms of reference of the Committee are wide enough covering the matters specified in Listing Regulations and the Companies Act, 2013 and Terms of reference of the Committee briefly are as under:
Evaluation of the performance of independent directors and make recommendations to Board.
To oversee succession planning for Board of Directors, Key Managerial Personnel and Senior Management Personnel
Formulation of the criteria for determining qualifications, positive attributes and independence of a director.
Formulation of criteria for evaluation of Independent Directors and the Board
Formulation of criteria for making payment to Non-Executive Directors
Devising a policy on Board diversity.
Recommend to the board, all remuneration, in whatever form, payable to senior management.
Formulation of policies for remuneration to Directors, Key Managerial Personnel, Senior Management Personnel and other Employees.
ii) Composition of Nomination and Remuneration Committee and Attendance of members in the meetings of the Nomination and Remuneration Committee held during the year
Identification and recommendation to Board of persons who are qualified to become Directors, Key Managerial Personnel and, Senior Management Personnel and in accordance with the criteria laid down.

As on March 31, 2022, this Committee comprised of three Directors, all of whom are independent, namely Mr. Tejpreet S Chopra (Chairman), Mr. Yash Gupta and Mr. Puneet Yadu Dalmia as Members. The constitution of the Committee meets the requirements of Section 178 of the Companies Act, 2013.

Recommend to the Board on appointment and removal of Directors, Key Managerial Personnel and Senior Management Personnel

Table 7 provides details of the Nomination and Remuneration Committee meetings held during the year 2021-22 and attendance of its members.

Table 7: Attendance Record of Nomination and Remuneration Committee Meetings during 2021-22

Name of Members Category	Date of NRC Meeting and Attendance of Members
	October 22, 2021 November 1, 2021 January 19, 2022 March 21, 2022
Mr. Tejpreet S Chopra (Chairman) Independent, Non-Executive Mr. Puneet Yadu Dalmia Independent, Non-Executive Mr. Yash Gupta Independent, Non-Executive	Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

iii) Annual Evaluation of Board, Committees and Individual Directors
Remuneration Policy, a copy of which is attached as Annexure I to the Board Report.
Pursuant to the provisions of the Companies Act, 2013, Listing Regulations and as per the Nomination, Appointment and Remuneration Policy, the Board of Directors/ Independent Directors/Nomination & Remuneration Committee (“NRC”) (as applicable) had undertaken an evaluation of the Board’s own performance, the performance of its Committees and of all the individual Directors including the Chairman of the Board of Directors based on various parameters relating to roles, responsibilities and obligations of the Board, effectiveness of its functioning, contribution of Directors at meetings and the functioning of its Committees.

Based on the recommendations of the NRC, the Board of Directors decide to continue their appointment or consider them for reappointment, as applicable.

iv) Nomination, Appointment and Remuneration Policy The Company’s Nomination, Appointment and Remuneration Policy for Directors, Key Managerial Personnel and Senior Management Personnel forms part of the Board’s Report and is also accessible on Company’s website www.srf.com.

c) Stakeholders Relationship Committee

As on March 31, 2022, this Committee comprised four Directors—two executive Directors and two non-executive Directors, namely Mr. Tejpreet S Chopra, Independent Director is Chairman, Mr. Yash Gupta, Independent Director and Mr. Ashish Bharat Ram & Mr. Kartik Bharat Ram Executive Directors are members of the Committee.

Performance evaluation of independent directors is done by the Nomination and Remuneration Committee on criteria more particularly described in the Nomination, Appointment and

Table 8 provides details of the Stakeholders Relationship Committee meetings held during the year 2021-22 and attendance of its members.

Table 8: Attendance Record of Stakeholders Relationship Committee Meetings during 2021-22

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----- Start of picture text -----

Name of Category Date of Stakeholders Relationship Committee Meeting and Attendance of Members
Members 12-Apr- 28-Apr- 22-Jun- 03-Aug- 16-Sep- 11-Oct- 25-Oct- 22-Dec- 31-Jan- 21-Mar-
2021 2021 2021 2021 2021 2021 2021 2021 2022 2022
Mr. Tejpreet Non- Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
----- End of picture text -----

S Chopra (Chairman) Mr. Ashish	Executive, Independent Executive,	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Bharat Ram	Promoter
Mr. Kartik	Executive,	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Bharat Ram	Promoter
Mr. Yash Gupta	Non-Executive, Independent	Yes	Yes	No	Yes	Yes	Yes	Yes	Yes	Yes	Yes

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Mr. Rajat Lakhanpal, VP (Corporate Compliance) & Company Secretary is Compliance Officer under Listing Regulations.

As on March 31, 2021, no investor complaint was pending with the Registrar and Share Transfer Agent. Table 9 gives data on the shareholder/investor complaints received and redressed during the year 2021-22.

Table 9: Shareholder and Investor Complaints received and redressed during 2021-22

Total Complaints Received	Total Complaints Redressed Complaints not solved to the satisfaction of Shareholders	Pending as on March 31, 2022
394	394 Nil	Nil

d) Corporate Social Responsibility Committee

ESG related risks), information, cyber security risks or any other risk as may be determined by the Committee.

As on March 31, 2022, this Committee comprised of four Directors —Mr. Kartik Bharat Ram (Chairman), Mr. Arun Bharat Ram, Mr. Lakshman Lakshminarayan and Mr. Yash Gupta (appointed wef 25.10.2021) as members. The constitution of the Committee meets the requirements of Section 135 of the Companies Act, 2013. Dr. Meenakshi Gopinath ceased to be Director wef 31.08.2021 and consequently ceased to be Chairperson of CSR Committee.
(b) Measures for risk mitigation including systems and processes for internal control of identified risks.
(c) Business continuity plan.
(2) To ensure that appropriate methodology, processes and systems are in place to monitor and evaluate risks associated with the business of the Company;

The terms of reference of the Committee in line with the requirements of the Section 135 of the Companies Act, 2013 and the rules framed thereunder. No Meeting of CSR Committee held during the year 2021-22.

(3) To monitor and oversee implementation of the risk management policy, including evaluating the adequacy of risk management systems;

e) Risk Management Committee

As on March 31, 2022, this Committee comprised of three Directors— Mr. Ashish Bharat Ram as Chairman, Mr. Kartik Bharat Ram and Mrs. Bharti Gupta Ramola as Members. The composition of the Committee is in conformity with Regulation 21 of the Listing Regulations.
(4) To periodically review the risk management policy, at least once in two years, including by considering the changing industry dynamics and evolving complexity;
(5) To keep the board of directors informed about the nature and content of its discussions, recommendations and actions to be taken;

As on March 31, 2022, brief description of terms of reference of Risk Management Committee interalia includes the following:

  - (6)  The appointment, removal and terms of remuneration of the Chief Risk Officer (if any) shall be subject to review by the Risk Management Committee.

(1) To formulate a detailed risk management policy which shall include:
(a) A framework for identification of internal and external risks specifically faced by the listed entity, in particular including financial, operational, sectoral, sustainability (particularly,
Table 11 provides details of the Risk Management Committee meetings held during the year 2021-22 and attendance of its members.

Table 11: Attendance Record of Risk Management Committee Meeting during 2021-22

Name of Members	Category	Date of meeting and Attendance of Director December 27, 2021
Mr. Ashish Bharat Ram	Executive, Promoter	Yes
(Chairman)
Mr. Kartik Bharat Ram	Executive, Promoter	Yes
Mrs. Bharti Gupta Ramola	Independent,Non-Executive	Yes

Notification, the Company would be holding two risk management committee meetings from calendar year 2022 onwards.

The Company has held one meeting of the Risk management committee during the current two risk management committee meetings from financial year as per the requirements of the calendar year 2022 onwards. Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) f) Committee of Directors – Financial Resources Regulations, 2015 (‘Listing regulations’) read As on March 31, 2022, this Committee comprised with notification no. SEBI/LAD-NRO/GN/2021/22 of three Directors— Mr. Arun Bharat Ram, Mr. dated 5 May 2021 (‘Notification’). Based on the Ashish Bharat Ram and Mr. Kartik Bharat Ram all requirements of the Listing regulations and the of whom are executive directors.

Table 12 provides details of the Committee of Directors- Financial Resources meetings held during the year 2021--22 and attendance of its members.

Name of Members	Date of Committee of Directors- Financial Resources Meeting and Attendance of Members
	1-Jun- 2021 28-Jul- 2021 03-Sep- 2021 08-Oct- 2021 09-Nov- 2021 03-Dec- 2021 24-Dec- 2021 25-Jan- 2022 18-Feb- 2022
Mr. Arun Bharat Ram Mr. Ashish Bharat Ram Mr. Kartik Bharat Ram	No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

subsidiaries’ is available on the website of the Company at https://www.srf.com/investors/ - corporate governance/

Management

Management Discussion and Analysis

This is given as a separate chapter in this Annual Report.

The equity shares of the Company are listed on BSE Limited and National Stock Exchange of India Limited. The Company has complied with all the applicable requirements of capital markets and no penalties or strictures have been imposed on the Company by Stock Exchange(s), SEBI or any other statutory authority, on any matter relating to the capital markets, during the last three years.

Disclosure Requirements

During the year 2021-22, the Company had no materially significant related party transactions. Transactions with related parties are disclosed in Note No 32 to the Financial Statements. The Company has policies on materiality of Related Party Transactions and on dealing with Related Party Transactions. The said policies are available on the website of the Company at https://www.srf.com/investors/corporategovernance/. Policy of determining ‘material
Vigil Mechanism Policy : Section 177 (9) of the Companies Act, 2013 and Regulation 22 of Listing Regulations requires that a Company shall have a

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CEO/CFO certification

vigil mechanism for directors and employees for reporting concerns about unethical behaviour, actual or suspected fraud or violation of the Company’s code of conduct or ethics policy. Vigil Mechanism Policy of the Company includes Code of Conduct for Directors and Senior Management Personnel, Code of Conduct for employees, Policy against sexual harassment, Whistle blower Policy and Code of Conduct for Prevention of Insider Trading. The Company is following such a policy and crux of which is disclosed by the Company on its website at https://www.srf.com/investors/ - corporate governance/. No personnel has been denied access to the Audit Committee for raising his/her concern under this policy during financial year 2021-22.

The Certificate in compliance with Regulation 17(8) of Listing Regulations was placed before the Board of Directors.

Appointment/ Reappointment/Resignation of Directors

Dr. Meenaskhi Gopinath, Director CSR was retiring by rotation in 50[th] Annual General Meeting and had expressed her intention not to seek re-appointment. She retired at 50[th] Annual General Meeting held on 31.08.2021 and ceased to be Director of the Company.

Mr. Arun Bharat Ram, Executive Chairman ceased to be the Director of the Company from the closing of business hours on March 31, 2022 and was appointed as Chairman Emeritus of the Company for a term of five years with effect from April 1, 2022.

The Company has complied with all the mandatory requirements specified in Regulations 17 to 27 (as applicable) and clauses (b) to (i) of sub – regulation (2) of Regulation 46 of the Listing Regulations

Mr. Ashish Bharat Ram was redesignated as Chairman and Managing Director and Mr. Kartik Bharat Ram redesignated as Joint Managing Director wef 01.04.2022.

Listing Regulations Mr. Vellayan Subbiah was appointed as Non-Executive Independent Director by members at the Annual
• This Corporate Governance Report of the General Meeting held on August 07, 2018 for the period Company for the year 2021-22 is in compliance of 5 years commencing from April 01, 2019 upto March with the requirements of Listing Regulations, as 31, 2024. The Board was of the view that it would be applicable. to the benefit of the Company if his experience and wisdom would continue to be utilized by the Board
Non-Mandatory Requirement and management on a long-term basis. Accordingly, a proposal to appoint him as a non-independent and
The status of adoption of the non-mandatory requirements as specified in sub – regulation 1 of non-executive director on the Board was discussed with him and he graciously agreed to step down as
Regulation 27 of the SEBI (Listing Obligations and an independent director and resigned from the closing
Disclosure Requirements) Regulations, 2015 are as follows: of Business hours of May 9, 2022 and was appointed as Additional non-independent and non-executive director, liable to retire by rotation, w.e.f May 10, 2022.
(a) The Board : The Chairman of the Company is Executive Chairman; (b) Shareholder Rights: Half-yearly and other quarterly financial statements are published in newspapers and uploaded on Company’s website www.srf.com. (c) Modified opinion(s) in audit report: The Company already has in place a regime of un-qualified financial statements. Auditors have raised no qualification on the financial statements; and (d) Reporting of Internal Auditor: The Internal Auditor of the Company reports to the President & CFO of the Company and has direct access to the Audit Committee.

Mr. Raj Kumar Jain, was appointed as an Additional Independent Director w.e.f May 9, 2022 subject to approval by the shareholders at this annual general meeting. Further, he was also appointed as member of Audit Committee w.e.f May 10, 2022.

Means of Communication with Shareholders

Quarterly and annual results of SRF are published in two major national dailies, generally Business Standard / Financial Express (in English) and Jansatta (in Hindi). In addition, these results are posted on the website of the Company, www.srf.com. The website also contains other information regarding SRF available in the public domain.

SRF communicates with its institutional shareholders through analysts briefing and individual discussions between the fund managers and the management team. The presentations made to analysts and funds managers are posted on the Company’s website.

General body meetings

Last three Annual General Body Meetings

The details of the last three AGMs are given in Table 14.

Table 14 : Last three AGMs of the Company

Year Location Date Time No. of Special Resolutions Passed	Year Location Date Time No. of Special Resolutions Passed
2018-19 Laxmipat Singhania Auditorium, PHD House, 4/2, Siri Institutional Area, August Kranti Marg, New Delhi-110016 August 5, 2019 3.30 P.M. 2 2019-20 Video Conferencing. Deemed Venue- The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, 2nd Floor, Mayur Place, Mayur Vihar Phase I Extn, Delhi – 110091 August 17, 2020 11.00 A.M. 2 2020-21 Video Conferencing. Deemed Venue- The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, 2nd Floor, Mayur Place, Mayur Vihar Phase I Extn, Delhi – 110091 August 31, 2021 11.00 A.M. 1
Postal Ballot During the year the Company had passed One special and One ordinary Resolution for change in share capital clause of Memorandum of Association and Issuance of Bonus shares respectively as per following details :
Date of Postal Ballot Notice : August 31, 2021	Voting period : September 7, 2021 to October 6, 2021
Date of approval : October 6, 2021	Date of declaration of result : October 6, 2021

Sl. No. Name of the resolution Type of resolution No. of votes polled Votes cast in favour Votes cast against No. of votes % No. of votes %
1 Approval for cancellation of unissued portion of authorized preference share capital and corresponding increase in authorised equity share capital of the Company and consequent alteration of the Memorandum of Association Special 45268341 45266961 99.9970 1380 0.0030 2 Issue of Bonus Shares Ordinary 45268624 44646020 98.6246 622604 1.3754

During the year the Company had passed One special and One ordinary Resolution for change in share capital clause of Memorandum of Association and Issuance of Bonus shares respectively as per following details :

156 Annual Report 2021-22

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Procedure for Postal Ballot In compliance with Listing Regulations and Sections 108, 110 and other applicable provisions of the Companies Act, 2013, read with the related Rules, and in accordance with the guidelines prescribed by the Ministry of Corporate Affairs for holding general meetings/conducting postal ballot process through e-voting vide General Circular Nos. 14/2020 dated April 8, 2020 and 17/2020 dated April 13, 2020, 22/2020 dated June 15, 2020, 33/2020 dated September 28, 2020, 39/2020 dated December 31, 2020 and 10/2021 dated June 23, 2021 (“MCA Circulars”), the Company provided electronic voting facility to all its members, to enable them to cast their votes electronically. The Company has availed E-voting facility offered by KFin Technologies Private Limited (R&T Agent of the Company) for conducting e-voting by members of the Company and as permissible under the Act, notices to the shareholders were sent through e-mail whose e-mail ids were registered with depository participants and Registrar and Transfer Agent. The Company has also provided option for e-voting to those shareholders, who held shares in Physical form. In compliance with the requirements of the MCA Circulars, hard copy of Postal Ballot Notice along with Postal Ballot Forms and pre-paid business envelope were not sent to the shareholders for this Postal Ballot and shareholders were requested to communicate their assent/dissent through the remote e-voting system only. The Company also published a notice in the newspaper declaring the details of completion of dispatch and other requirements and procedure for registration of the email address as mandated under the Act and applicable Rules and recent circulars.

Voting rights were reckoned on the paid-up value of the shares registered in the names of the members as on the cut-off date. Members were entitled to exercise their votes by electronic mode only and were requested to vote before close of business hours on the last date of e-voting. The scrutinizer submitted his report to Mr. Rajat Lakhanpal, VP (Corporate Compliance) & Company Secretary (who was duly authorised by the Chairman in this regard), after the completion of scrutiny, the results of the voting by postal ballot were then announced by him. The results were also displayed on the website of the Company, www.srf.com, besides being communicated to the stock exchanges, depositories

and registrar and share transfer agent. The date of passing of the resolutions was 06.10.2021 i.e. last date of voting and date of declaration of the results was 06.10.2021.

Additional Shareholder Information

51[st ] Annual General Meeting

Day: Thursday Date: July 21, 2022 Time: 11.00 A.M. Mode: Video Conferencing

Venue: The Company is conducting meeting through VC / OAVM pursuant to the Ministry of Corporate Affairs (“MCA”), vide Circular No. 14/2020 dated April 8 2020, Circular No.17/2020 dated April 13, 2020 read with Circular No. 20/2020 dated May 5, 2020 read together Circular No. 02/2021 dated January 13, 2021 and Circular No. 2/2022 dated May 5, 2022 (collectively referred to as ‘MCA Circulars’) and SEBI vide its circular dated May 12, 2020, January 15, 2021 and May 13, 2022 (collectively referred to as ‘SEBI Circulars’) and deemed venue for meeting will be Registered Office: The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, 2nd Floor, Mayur Place, Mayur Vihar Phase I Extn, Delhi – 110091 For details please refer to the Notice of this AGM.

Financial Year

April 1 to March 31

Tentative Financial Calendar for Results, 2022-23

First Quarter Third week of July 2022 Second Quarter First week of November 2022 Third Quarter Last week of January 2023 Fourth Quarter and Annual Second week of May 2023

Interim Dividend Payment Date

During the financial year 2021-22, the Company has issued Bonus Shares on October 15, 2021 in the ratio of 4:1. Two interim dividends of 12 (120%) pre-Bonus and 4.75 per share (47.5%) post-bonus on the paid up capital of the Company absorbing ` 211.89 Crores approx. were paid on August 25, 2021 and February 23, 2022 respectively.

Unclaimed Shares Suspense Account

Details of Total fees paid to Statutory Auditors and all entities in the network firm/network entity of which the statutory auditor is a part

Issue of 23,69,80,820 Bonus shares of ` 10 each fully paid up in the ratio of 4:1 was approved by the shareholders through postal ballot on October 06, 2021 and allotted by the Board of Directors at its meeting held on October 15, 2021. Physical share certificates which were returned undelivered are lying as unclaimed with the Registrar & Transfer Agent of the Company (RTA).

B S R & Co. LLP, Chartered Accountant who are the Statutory Auditors of the Company are a part of B S R & Affiliates network. During financial year 2021-22, total fees paid by the Company and its subsidiaries on a consolidated basis to B S R & Co. LLP, Chartered Accountant and all entities forming part of B S R & Affiliates network is ` 1.34 Crores (excluding out of pocket expenses).

Pursuant to the requirements of Regulation 39(4) read with Schedule VI of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (dealing with unclaimed shares in the physical form), 1[st] Reminder letter was sent to the shareholders on 25.03.2022, requesting them to claim the shares lying with the Company as unclaimed by submitting the relevant documents. The Company shall transfer the unclaimed shares to “Unclaimed Suspense Account” opened with a depository in compliance with the listing regulations in due course of time.

Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 for the year 2021-22 No. of complaints filed during the 3 financial year No. of complaints disposed off 3 during the financial year No. of complaints pending as on 0 the end of the financial year

List of Credit Ratings

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Instrument Rating Agency Rating Outlook
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Fund Based and Non-Fund Based Limits India Ratings	Fund Based and Non-Fund Based Limits India Ratings	IND AA+/Stable/IND A1+	Stable
Fund Based and Non-Fund Based Limits CRISIL		CRISIL AA+/Stable/ CRISIL A1+	Stable
Long Term Loans	India Ratings	IND AA+/Stable	Stable
Long Term Loans	CRISIL	CRISIL AA+/Stable	Stable
Commercial Papers	India Ratings	IND A1+	Stable
Commercial Papers	CRISIL	CRISIL A1+	Stable
Non-Convertible Debentures	CRISIL	CRISIL AA+/Stable	Stable

During the year under review there is no revision in Credit Rating.

Listing on Stock Exchanges in India

SRF’s shares are listed on the BSE and the NSE and debentures are listed on NSE. The Company has paid the listing fee to both BSE and NSE for the year 2021-22. The Stock Codes are:

Stock Exchanges	Equity Shares	Debentures
BSE Limited 25thFloor, P.J. Towers Dalal Street, Mumbai 400 001	503806
National Stock Exchange of India Limited	SRF	SRF 22
“Exchange Plaza” Bandra-Kurla Complex Bandra (E) Mumbai 400 051

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Stock Market Data

Table15 gives the monthly high and low quotations as well as the volume of shares traded at BSE and NSE during 2021-22.

Table 15: Monthly Highs and Lows and Volumes Traded at the BSE and NSE during 2021-22

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Month BSE NSE
Highest Price Lowest Price Volume Highest Price Lowest Price Volume
( ) ( ) (No.) ( ) ( ) (No.)
----- End of picture text -----

(`)<br>(`) (No.) (`)<br>(`) (No.)	(`)<br>(`) (No.) (`)<br>(`) (No.)
Apr-21 6,588.85 5,410.00 2,04,093 6,590.00 5,436.05 46,56,564 May-21 6,986.05 6,200.00 2,24,868 6,999.00 6,181.20 56,04,063 Jun-21 7,307.25 6,468.50 1,52,384 7,310.00 6,461.70 33,24,618 Jul-21 8,720.20 7,250.00 2,19,835 8,724.80 7,251.00 43,41,681 Aug-21 10,354.25 8,649.95 2,86,979 10,345.00 8,610.00 63,00,785 Sep-21 11,409.00 9,826.00 3,11,288 11,378.20 9,825.10 65,87,490 Oct-21 12,599.95 2,060.00 11,84,862 12,600.00 2,065.00 1,98,56,836 Nov-21 2,250.00 1,975.00 12,84,450 2,249.95 1,973.10 4,27,19,655 Dec-21 2,427.25 1,994.05 8,42,491 2,428.15 1,994.00 1,86,65,096 Jan-22 2,679.00 2,271.45 8,08,197 2,680.00 2,268.55 1,80,13,956 Feb-22 2,610.55 2,258.80 7,62,363 2,611.85 2,259.25 1,37,11,734 Mar-22 2,734.00 2,106.35 6,66,462 2,734.60 2,106.00 1,86,37,731
Chart 1	: Share prices of Nifty versus SRF Limited for the year ended March 31 2022
SRF VS. NIFTY 250.00 200.00 150.00 100.00 50.00 - Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Nifty Close SRF Close

Note 1: Both Nifty and SRF share prices are indexed to 100 as on April 1, 2021

Note 2: The shares traded during the period April 1, 2021 to October 12, 2021 have been indexed to post bonus share issue quantum.

Registrar and Share Transfer Agents

Share Transfer System

DP processes the DRF and generates a unique De-materialisation Request No

As per SEBI Notification No. SEBI/LAD-NRO/ GN/2018/24 dated June 8, 2018 and further amendment vide Notification No. SEBI/LAD-NRO/ GN/2018/49 dated November 30, 2018 request for effecting transfer of securities (except in case of transmission or transposition of securities) shall not be processed from April 01, 2019 unless the securities are held in dematerialized form with the depositories. In view of this and to eliminate all risks associated with physical shares and for ease of portfolio management, members holding shares in physical form are requested to consider converting their holdings to dematerialized form. To enhance ease of dealing in securities markets by investors, SEBI has decided that listed companies shall henceforth issue the securities in dematerialized form only (vide Gazette Notification no. SEBI/LADNRO/ GN/2022/66 dated January 24, 2022) while processing the service request mentioned in the above notification (viz., Issue of duplicate securities certificate, Claim from Unclaimed Suspense Account, Transmission, Transposition etc).

DP forwards the DRF and share certificates to the Registrar and Share Transfer Agent (RTA)
RTA after processing the DRF confirms or rejects the request to Depositories
If confirmed by the RTA, depositories give the credit to shareholder in his /her account maintained with DP
This process takes approximately 10-15 days from the date of receipt of DRF.

As the trading in the shares of the Company can be done only in the electronic form, it is advisable that the shareholders who have the shares in physical form get their shares dematerialised.

Dematerialisation of Shares & Liquidity

As on March 31, 2022, out of 29,64,21,025 Equity Shares of ` 10/- each, 29,29,07,644 shares (98.81%) were held in electronic form by 2,13,171 shareholders and balance 35,13,381 shares (1.19%) were held by 7,660 shareholders in physical form.

Depository System

Shareholders can trade in the Company’s shares only in electronic form. The process for getting the shares de-materialised is as follows:

Distribution of Shareholding as on March 31, 2022[@]

Shareholder submits the shares certificate along with De-materialisation Request Form (DRF) to Depository Participant (DP)

Table 16 gives the distribution of shares according to shareholding class, while Table 17 gives the distribution of shareholding by ownership.

Table 16: Pattern of Shareholding by Share Class as on March 31, 2022

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No. of Equity Shares held No. of % of No. of shares % of
shareholders Shareholders Shareholding
Upto 500 207,300 93.86 9,664,526 3.26
501- 1000 5,830 2.64 4,470,123 1.51
1001- 2000 3,841 1.74 5,573,306 1.88
2001- 3000 1,404 0.64 3,503,591 1.18
3001- 4000 566 0.26 1,998,960 0.67
4001- 5000 397 0.18 1,860,178 0.63
5001- 10000 612 0.28 4,410,269 1.49
10001& Above 881 0.40 264,940,072 89.38
Total 220,831 100.00 296,421,025 100.00
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M/s KFin Technologies Limited (Formerly known as KFin Technologies Private Limited), Hyderabad are the Registrar and Share Transfer Agent of the Company for handling both electronic and physical shares .

160

Annual Report 2021-22 161

Annual Report 2021-22

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Table 17: Pattern of Shareholding by Ownership as on March 31, 2022

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Sl. Category Total Shares % To Equity
No
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1	PROMOTER COMPANIES	150,245,000	50.69
2	FOREIGN PORTFOLIO - CORP	58,080,039	19.59
3	RESIDENT INDIVIDUALS	36,551,391	12.33
4	MUTUAL FUNDS	24,622,097	8.31
5	Qualifed Institutional Buyer	12,852,262	4.34
6	BODIES CORPORATES	3,862,208	1.30
7	NON RESIDENT INDIAN NON REPATRIABLE	3,572,357	1.21
8	I E P F	1,993,040	0.67
9	CLEARING MEMBERS	1,237,929	0.42
10	H U F	1,055,109	0.36
11	EMPLOYEES	611,089	0.21
12	NON RESIDENT INDIANS	565,839	0.19
13	INSURANCE COMPANIES	508,910	0.17
14	ALTERNATIVE INVESTMENT FUND	366,069	0.12
15	PROMOTERS	137,500	0.05
16	DIRECTORS	71,370	0.02
17	FOREIGN INSTITUTIONAL INVESTORS	29,743	0.01
18	BANKS	19,580	0.01
19	UNIT TRUST OF INDIA	17,265	0.01
20	TRUSTS	12,343	0.00
21	NBFC	9,879	0.00
22	FOREIGN NATIONALS	6	0.00
	Total	296,421,025	100.00

@Including holdings by NSDL and CDSL

Outstanding GDRs/ ADRs/ Warrants or Any Convertible Instruments, Their Conversion Dates and Likely Impact on Equity

As on March 31, 2022, there were no outstanding GDRs/ ADRs/ Warrants or any convertible instruments

The details of foreign currency exposure are disclosed in the Note No. 38 to the Financial Statements.

Plant Locations

Business	Plant Locations	Plant Locations
Technical Textiles	•	Manali Industrial Area, Manali, Chennai-600068, Tamil Nadu
Business	•	Industrial Area, Malanpur, Distt. Bhind-477116,MP
	•	Plot No. 1, SIPCOT Industrial Area Complex, Gummidipoondi,
		Dist. Thiruvallur– 601 201, Tamil Nadu
	•	Viralimalai, Distt. Pudukottai - 621 316, Tamil Nadu
	•	Plot No. 12, Rampura, Ramnagar Road, Kashipur, Dist. Udham Singh
		Nagar-244713, Uttarakhand
Chemicals and Other	•	Village & P.O. Jhiwana, Tehsil Tijara, Distt. Alwar - 301 018, Rajasthan
Business	•	DII / I GIDC. PCPIR,GIDC Phase II, Tal Vagra, Vill.		Dahej,
		Dist Bharuch-392130, Gujarat
Packaging Films	•	Plot No. 12, Rampura, Ramnagar Road, Kashipur, Dist. Udham Singh
Business		Nagar-244713, Uttarakhand
	•	Plot No. C 1-8, C 21-30, Sector 3, Indore Special Economic Zone, Pithampur,
		Dist. Dhar-454775, Indore, MP
	•	Plot No. 675, Industrial Area, Sector 3, Village Bagdoon, Pithampur,
		Dist. Dhar – 454775, Indore MP
	•	Plot No 3-A, Industrial Growth Sector Kheda, Kheda, Dist-Dhar,
		Madhya Pradesh,454775
Address for Correspondence
Registered Ofce	Corporate Ofce		Registrar & Share Transfer Agent	Debenture Trustee
The Galleria, DLF	Block – C, Sector –45		KFin Technologies Limited	Vistra ITCL (India) Limited
Mayur Vihar, Unit No.236 & 237, Second Floor, Mayur Place, Mayur Vihar, Phase-I Extn., Delhi - 110091 Tel No.: (+ 91-11) 49482870 Fax No.:(+ 91-11)	Gurugram 122 003 Tel No.:(+ 91-124) 4354400 Fax No.: (+ 91-124) 4354500 E-mail :[email protected]		Karvy Selenium Tower B, Plot No 31 & 32 Gachibowli, Financial District, Nanakramguda, Serilingampally Hyderabad – 500032 E-mail :[email protected] Website:https://www.kfntech.com Toll Free No. 1- 800-309-4001	Corporate Ofce : 602. ‘A’ Wing, The Qube, Hasan Pada Rd, Mittal Industrial Estate, Marol, Andheri-E, Mumbai 400059 Website:www.vistra.com Contact Person: Compliance Ofcer Tel No.: +91 22 69300000
49482900 E-mail :[email protected]				Email:itclcomplianceofcer@ vistra.com

Commodity price risk or foreign exchange risk and hedging activities

During the year 2021-22, the Company had managed the foreign exchange risk and hedged to the extent considered necessary. The Company enters into forward contracts for hedging foreign exchange exposures against exports and imports. There is no direct hedgeable commodity risk that the Company has on any of its raw materials or finished products. Thus, the Foreign Exchange Risk Management Policy covers only net forex exposure on account of its imports and exports.

Declaration Regarding Code of Conduct

I, Ashish Bharat Ram, Chairman & Managing Director of SRF Limited hereby declare that all Board Members and Senior Management personnel have affirmed compliance with the Code of Conduct for Board and Senior Management Personnel for the year ended March 31, 2022.

Ashish Bharat Ram

Chairman & Managing Director

Date: May 9, 2022 Place: Gurugram

162 Annual Report 2021-22

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CORPORATE OVERVIEW STATUTORY REPORTS

FINANCIAL STATEMENTS

Certificate of Non-Disqualification of Directors

Independent Auditor’s Report

(Pursuant to Regulation 34(3) read with Schedule V Para-C Clause 10(i) of the SEBI

(Listing Obligations and Disclosure Requirements) Regulations, 2015)

The Members

SRF Limited

The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, 2nd Floor, Mayur Place, Mayur Vihar Phase I Extension, New Delhi-110091

I have examined the relevant registers, records, forms, returns and disclosures received from the Directors of SRF Limited having CIN L18101DL1970PLC005197 and having registered office at the Galleria, DLF Mayur Vihar, Unit No. 236 & 237, 2nd Floor, Mayur Place, Mayur Vihar Phase I Extension, New Delhi-110091 (hereinafter referred to as ‘the Company’), produced before me by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Clause 10(i) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In my opinion and to the best of my information and according to the verifications (including Directors Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to me by the Company & its officers, I hereby certify that none of the Directors on the Board of the Company as stated below for the financial year ending on March 31, 2022, have been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.

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Sl. No. Name of Director DIN Date of appointment in
the Company
1. Mr. Arun Bharat Ram 00694766 01/08/1975
----- End of picture text -----*

2. 3.	Mr. Ashish Bharat Ram Mr. Kartik Bharat Ram	00671567 00008557	23/05/2005 14/11/2006
4.	Mr. Lakshman Lakshminarayan	00012554	11/11/2011
5.	Mr. Puneet Yadu Dalmia	00022633	01/04/2019
6.	Mr. Yash Gupta	00299621	01/04/2019
7.	Mr. Tejpreet Singh Chopra	00317683	21/09/2011
8.	Mrs. Bharti Gupta Ramola	00356188	04/02/2019
9.	Mr. Pramod Gopaldas Gujarathi	00418958	01/04/2017
10.	Mr. Vellayan Subbiah	01138759	01/05/2012

*The date of appointment is as per the MCA Portal.

**Mr. Arun Bharat Ram, resigned as Executive Chairman of the Company w.e.f April 01, 2022.

Ensuring the eligibility of the appointment / continuity of every Director on the Board is the responsibility of the management of the Company. My responsibility is to express an opinion on these, based on my verification. This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.

Rohit Parmar

Rohit Parmar & Associates

Company Secretaries ACS No.: 54442, C.P. No.: 22137 UDIN: A054442D000226328

Place: New Delhi Date: April 28, 2022

To the Members of SRF Limited

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of SRF Limited (the “Company”), which comprise the standalone balance sheet as at 31 March 2022, and the standalone statement of profit and loss (including other comprehensive income), standalone statement of changes in equity and standalone statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2022, and its profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Description of Key Audit Matter

Accounting for derivatives

The key audit matter

How the matter was addressed in our audit In view of the significance of the matter we applied the following audit procedures in this area, among others, to obtain sufficient appropriate audit evidence:

An important element of Company’s fund-raising strategy involves various types of borrowings including foreign currency denominated borrowings and a combination of fixed and floating interest rates, and also foreign currency denominated loans – and advances to other parties. The Company’s operating activities are also exposed to significant foreign exchange risk (refer to note 38 of the standalone financial statements). The Company uses derivative financial instruments to mitigate foreign currency risk and interest rate – risk primarily through foreign currency forward exchange contracts and interest rate swaps.

Tested the design, implementation and operating effectiveness of controls over the Company’s treasury and other related functions which directly impact the relevant account balances and transactions, including hedge accounting.

For selected samples via statistical sampling, obtained external confirmations from counterparties of the year end positions as well as agreed to original agreements.

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FINANCIAL STATEMENTS

Accounting for derivatives

The key audit matter

Further, the Company has been using hedge relationship designation as per criteria set out in relevant Indian accounting standards. Accounting thereof and related presentation and disclosures of these transactions require significant judgement.

Given the significant level of judgement and estimation involved and the quantitative significance, we have determined this to be a key audit matter.

Other Information

The Company’s Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company’s annual report, but does not include the standalone financial statements and our auditor’s report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Management’s and Board of Directors’ Responsibilities for the Standalone Financial Statements

The Company’s Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit/ loss and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards

How the matter was addressed in our audit

– Performed sample tests of valuation and accounting of these transactions. In doing so we have involved valuation specialists to assist us in carrying out aforesaid procedure, as considered necessary.

Assessed the adequacy of disclosures in the financial statements in respect of both non-derivative and derivative financial instruments.

(Ind AS) specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the Management and Board of Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report

that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management and Board of Directors.
Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting in preparation of standalone financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in

our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by the Central Government of India in terms of Section 143 (11) of the Act, we give in the “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

166 Annual Report 2021-22

Annual Report 2021-22 167

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

(A) As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31 March 2022 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2022 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”.
(B) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditor’s) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
a) The Company has disclosed the impact of pending litigations as at 31 March 2022 on its financial position in its standalone
financial statements - Refer Note 31 to the standalone financial statements.
b) The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 38 to the standalone financial statements.
c) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
d) (i) The management has represented that, to the best of its knowledge and belief, as disclosed in the note 41 (g) (viii) to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or
- provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) The management has represented, that, to the best of its knowledge and belief, as disclosed in the note 41 (g) (ix) to the accounts, no funds have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall:
directly or indirectly, lend or (C) With respect to the matter to be included in the invest in other persons or Auditor’s Report under Section 197(16) of the Act: entities identified in any manner whatsoever by or on behalf of In our opinion and according to the information the Funding Party (“Ultimate and explanations given to us, the remuneration Beneficiaries”) or paid by the Company to its directors during the current year is in accordance with the provisions
● provide any guarantee, security of Section 197 of the Act. The remuneration paid or the like on behalf of the to any director is not in excess of the limit laid Ultimate Beneficiaries. down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other
(iii) Based on the audit procedures that details under Section 197(16) of the Act which
have been considered reasonable are required to be commented upon by us.
and appropriate in the circumstances, nothing has come to our notice that For B S R & Co. LLP
has caused us to believe that the Chartered Accountants
representations under sub-clause (i) Firm’s Registration No.: 101248W/W-100022
and (ii) of Rule 11(e) contain any material mis-statement.

Kaushal Kishore

e) The dividend declared or paid during the Partner year by the Company is in compliance with Place: Gurugram Membership No.: 090075 Section 123 of the Act. Date: 27 May 2022 UDIN: 22090075AJTEDQ5066

168

Annual Report 2021-22 169

Annual Report 2021-22

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Annexure A to the Independent Auditor’s Report on Standalone Financial Statements

With reference to the Annexure A referred to in the Independent Auditor’s Report of even date to the members of the Company on the standalone financial statements for the year ended 31 March 2022, we report the following:

in a phased manner over a period of three years. In accordance with this programme, certain property, plant and equipment were verified during the year. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. As informed to us, no material discrepancies were noticed on such verification.

(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.
- (c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties (other than immovable properties where the Company is the lessee and the leases agreements are duly executed in favour of the lessee) disclosed in the standalone financial statements are held in the name of the Company, except for the following which are not held in the name of the Company:
(B) The Company has maintained proper records showing full particulars of intangible assets.
(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has a regular programme of physical verification of its Property, Plant and Equipment by which all property, plant and equipment are verified

Description of property	Gross carrying value as at 31 March 2022 (`in Crores)	Held in the name of	Whether promoter, director or their relative or employee Period held since	Reason for not being held in the name of the Company/ Remarks
Land at Bharuch, Da-	109.29 (carried cost)	Gujarat Industrial	No From June 2009	The execution of lease deed of land in respect of 1,165,437
hej, Gujarat		Development	onwards	square meters of leasehold land
		Corporation	(by multiple	already allotted (out of a total of
		(‘GIDC’) at Dahej, Gujarat	allotment orders)	1,181,776 square meters) to the Company is pending. We under- stand that, as a process agreed with GIDC, the same will be ex-
				ecuted once the entire/ substan-
				tial portion of the above piece of
				land is allotted/ handed over to the Company.

(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not revalued its Property, Plant and Equipment (including Right of Use assets) or intangible assets or both during the year.
(e) According to information and explanations given to us and on the basis of our examination of the records of the Company, there are no proceedings initiated or pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

of security of current assets. In our opinion, the quarterly returns or statements filed by the Company with such banks or financial institutions are in agreement with the books of account of the Company.

(ii) (a) The inventories, except goods-in-transit, have been physically verified by the management during the year. For goods-intransit, subsequent evidence of receipts till date of the report has been linked with inventory records. In our opinion, the frequency of such verification is reasonable, and procedures and coverage as followed by management were appropriate. No discrepancies were noticed on verification between the physical stocks and the book records that were more than 10% in the aggregate of each class of inventory.
(iii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not provided any security or granted any advances in the nature of loans, secured or unsecured, to companies, firms, limited liability partnership or any other parties during the year. The Company has made investments in, provided guarantees, and granted loans to companies and other parties, in respect of which the requisite information is as below. The Company has not made any investments in, provided guarantees and granted loans to firms or limited liability partnership.
(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis
(a) Based on the audit procedures carried out by us and, as per the information and explanations given to us, the Company has provided loans, or stood guarantee, to any other entity as below:

==> picture [403 x 28] intentionally omitted <==

----- Start of picture text -----

Particulars Guarantees Loans
( Crores) ( Crores)
----- End of picture text -----

Aggregate amount during the year
- Subsidiaries	190.84	230.20
- Others (Employees)	-	28.12
Balance outstanding as at the balance sheet date
- Subsidiaries	1,614.94	565.72
- Others(Employees)	-	22.75

(b) According to the information and explanations given to us and based on the audit procedures conducted by us, in our opinion, the investments made and guarantees provided during the year, and the terms and conditions of the grant of loans and guarantees provided during the year, are, prima facie, not prejudicial to the interest of the Company.

given to SRF Altech Limited, which is repayable on demand. As informed to us, the Company has demanded repayment of the loan during the year and the same has been received during the year. The interest on this loan was not due during the year ended 31 March 2022. Thus, there has been no default on the part of the party to whom the money has been lent. Further, the Company has not given any advance in the nature of loan to any party during the year.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, in the case of loans given, in our opinion the repayment of principal and payment of interest has been stipulated and the repayments or receipts have been regular except for the loan of ` 2.75 Crores
(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no overdue amount for more than ninety days in respect of loans given. Further, the Company has not given any advances in the nature of loans to any party during the year.

170

171

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CORPORATE OVERVIEW STATUTORY REPORTS

FINANCIAL STATEMENTS

(e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, in our opinion, following instance of loan, falling due during the year, was settled by a fresh loan:

==> picture [403 x 51] intentionally omitted <==

----- Start of picture text -----

|||||
|---|---|---|---|
|Name of the party|Aggregate amount settled|Percentage of the aggregate|
|by fresh loan|to the total loans granted|
|during the year|
|SRF Global BV|`|227.45 Crores|88.05%|

----- End of picture text -----

(f) According to the information and explanations given to us and on the basis of our examination of the records of the Company, in our opinion, the Company has not granted any loans, or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment, except for the following loan to a related party as defined in Clause (76) of Section 2 of the Companies Act, 2013 (“the Act”).

==> picture [403 x 53] intentionally omitted <==

----- Start of picture text -----

||||
|---|---|---|
|Particulars|Related Party|
|Loan repayable on demand|`|2.75 Crores|
|Percentage of loans granted to the total loans|1.06%|

----- End of picture text -----

deducted / accrued in the books of account in respect of undisputed statutory dues including Goods and Services Tax (‘GST’), Provident fund, Employees’ State Insurance, Income-Tax, Duty of Customs, Cess and other statutory dues have been regularly deposited by the Company with the appropriate authorities.
(iv) According to the information and explanations given to us and on the basis of our examination of records of the Company, in respect of investments made and loans, guarantees and security given by the Company, in our opinion, the provisions of Section 185 and 186 of the Companies Act, 2013 (“the Act”) have been complied with.
(v) The Company has not accepted any deposits or According to the information and amounts which are deemed to be deposits from explanations given to us and on the basis the public. Accordingly, clause 3(v) of the Order of our examination of the records of the is not applicable. Company, no undisputed amounts payable in respect of Goods and Services Tax
(vi) We have broadly reviewed the books of accounts (‘GST’), Provident fund, Employees’ State maintained by the Company pursuant to the Insurance, Income-Tax, Duty of Customs, rules prescribed by the Central Government Cess and other statutory dues were in for maintenance of cost records under Section arrears as at 31 March 2022 for a period of 148(1) of the Act in respect of its manufactured more than six months from the date they goods and are of the opinion that prima facie, became payable.
(vi) We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules prescribed by the Central Government for maintenance of cost records under Section 148(1) of the Act in respect of its manufactured goods and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not carried out a detailed examination of the records with a view to determine whether these are accurate or complete.
(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, statutory dues relating to Goods and Service Tax, Provident Fund, Employees State Insurance, Income-Tax, Duty of Customs or Cess or other statutory dues which have not been deposited on account of any dispute are as follows:
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, in our opinion, amounts

==> picture [442 x 50] intentionally omitted <==

----- Start of picture text -----

Name of the Nature of Amount Period to Forum where Remarks,
statute the dues ( ` which the dispute is if any
Crores) amount pending
relates
----- End of picture text -----*

==> picture [442 x 322] intentionally omitted <==

----- Start of picture text -----

|||||||
|---|---|---|---|---|---|
|Central Excise|Excise Duty|9.32|1993-2002|Upto Commissioner|None|
|Laws|(Appeals)|
|Service Tax Laws|Service Tax|1.58|2006-15|Upto Commissioner|
|(Appeals)|
|0.98|2008-12|Customs, Excise &|
|Service Tax|
|Appellate Tribunal|
|Customs Law|Customs Duty|1.27|2012-13|Supreme Court|
|0.27|2016-19|High Court|
|0.17|2002|Upto Commissioner|
|(Appeals)|
|Sales Tax Laws|Sales Tax|0.34|2015-16|High Court|
|4.97|1993-2017|Sales Tax Appellate|
|Tribunal|
|7.68|1988-2017|Upto Commissioner|
|(Appeals)|
|Income Tax Laws|Income Tax|1.13|Assessment Year|Supreme Court|
|(AY) 1989-90|
|22.66|AY 2016-17|Income Tax Appellate|
|Tribunal|
|Goods &|Goods &|0.23|2017-18|Upto Commissioner|
|Service tax Laws|Services Tax|(Appeals)|
|Employees|Provident Fund|0.21|2011-16|EPF Appellate Tribunal|
|Provident Fund &|
|Miscellaneous Pro-|0.30|2011-13|Central Government|
|visions Act, 1952|Industrial Tribunal|

----- End of picture text -----

The following matters, which have been excluded from the above table, have been decided in favour of the Company but the department has preferred appeals at higher levels. The details are given below:

==> picture [442 x 130] intentionally omitted <==

----- Start of picture text -----

||||||||
|---|---|---|---|---|---|---|
|Name of the|Nature of|Amount*|Period to|Forum where|Remarks,|
|statute|the dues|(|`|which the|dispute is|if any|
|Crores)|amount|pending|
|relates|
|Income Tax Laws|Income Tax|5.55|AY 2000-04|High Court|None|
|Central Excise|Excise Duty|1.18|1994-95|High Court|
|Laws|
|2.24|1989-95|Upto Commissioner|
|(Appeals)|
|Customs Law|Customs Duty|0.01|2012-13|Upto Commissioner|
|(Appeals)|

----- End of picture text -----

*The amounts disclosed are net of payments and include interest and penalties, wherever applicable.

Also refer to note 31 of the standalone financial statements with regard to income tax demand raised subsequent to year-end.

172 Annual Report 2021-22

Annual Report 2021-22 173

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

or financial institution or government or government authority.

(viii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year.
not surrendered or disclosed any transactions, (c) In our opinion and according to the previously unrecorded as income in the books information and explanations given to us by of account, in the tax assessments under the the management, term loans were applied Income Tax Act, 1961 as income during the year. for the purpose for which the loans were obtained, other than ` 200 Crores which
(ix) (a) According to the information and remained unutilised as at 31 March 2022 explanations given to us and on the basis because the funds were received towards of our examination of the records of the the end of the year. The Company has Company, the Company has not defaulted in temporarily kept such unutilised balance in repayment of loans and borrowing or in the fixed deposits as at 31 March 2022. payment of interest thereon to any lender.
(d) According to the information and
(b) According to the information and explanations given to us and on an overall explanations given to us and on the basis examination of the balance sheet of the of our examination of the records of the Company, we report that no funds raised Company, the Company has not been on short-term basis have been used for declared a wilful defaulter by any bank long-term purposes by the Company.
(e) According to the information and explanations given to us and on an overall examination of the standalone financial statements of the Company, we report that the Company has taken funds from

the following entity to meet the obligations of its subsidiary as per details below:

Nature of fund taken Name of lender Amount involved	Name of the relevant subsidiary	Relationship Nature of transaction for which funds utilised Remarks, if any
Term Loan HSBC Bank `227.45	SRF Global	Subsidiary Repayment of None
Crores	BV	loan due to SRF
		Limited

(f) According to the information and any preferential allotment or private explanations given to us and procedures placement of shares or fully or partly performed by us, we report that the convertible debentures during the year. Company has not raised loans during the Accordingly, clause 3(x)(b) of the Order is year on the pledge of securities held in its not applicable. subsidiaries. The Company does not have any joint ventures or associate companies. (xi) (a) Based on examination of the books and
- (xi) (a) Based on examination of the books and records of the Company and according to the information and explanations given to us, considering the principles of materiality outlined in Standards on Auditing, we report that no fraud by the Company or on the Company has been noticed or reported during the course of the audit.
(x) (a) The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year. Accordingly, clause 3(x)(a) of the Order is not applicable.
(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not made
(b) According to the information and explanations given to us, no report under sub-section (12) of Section 143 of the Act

has been filed by the auditors in Form ADT-4 as prescribed under Rule 13 of the Companies (Audit and Auditors) Rules, 2014 with the Central Government.

  - (d)  According to the information and explanations provided to us, the Group (as per the provisions of the Core Investment Companies (Reserve Bank) Directions, 2016) does not have more than one CIC.

(c) As represented to us by the management, there are no whistle blower complaints (xvii) The Company has not incurred cash losses in the received by the Company during the year. current year and in the immediately preceding financial year.
(xii) According to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, clause 3(xii) of the Order is not applicable.
- (xviii) There has been no resignation of the statutory auditors during the year. Accordingly, clause 3(xviii) of the Order is not applicable.
- (xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the standalone financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that the Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.
(xiii) In our opinion and according to the information and explanations given to us, the transactions with related parties are in compliance with Sections 177 and 188 of the Act, where applicable, and the details of the related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
(xiv) (a) Based on information and explanations provided to us and our audit procedures, in our opinion, the Company has an internal audit system commensurate with the size and nature of its business.
(b) We have considered the internal audit reports of the Company issued till date for the period under audit.
(xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with its directors or persons connected to its directors and hence, provisions of Section 192 of the Act are not applicable to the Company.
- (xx) In our opinion and according to the information and explanations given to us, there is no unspent amount under sub-section (5) of Section 135 of the Act pursuant to any project. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the Order are not applicable.
(xvi) (a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, clause 3(xvi) (a) of the Order is not applicable.
(b) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, clause 3(xvi) (b) of the Order is not applicable.

For B S R & Co. LLP Chartered Accountants Firm’s Registration No.: 101248W/W-100022

(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly, clause 3(xvi)(c) of the Order is not applicable.

Kaushal Kishore Partner Place: Gurugram Membership No.: 090075 Date: 27 May 2022 UDIN: 22090075AJTEDQ5066

174

Annual Report 2021-22 175

Annual Report 2021-22

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Annexure B to the Independent Auditors’ report on the standalone financial statements of SRF Limited for the year ended 31 March 2022

Report on the internal financial controls with reference to the aforesaid standalone financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (Referred to in paragraph 2(A)(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013 (hereinafter referred to as “the Act”).

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to financial statements. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements were established and maintained and whether such controls operated effectively in all material respects.

Opinion

We have audited the internal financial controls with reference to financial statements of SRF Limited (“the Company”) as of 31 March 2022 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date. In our opinion, the Company has, in all material respects, adequate internal financial controls with reference to financial statements and such internal financial controls were operating effectively as at 31 March 2022, based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the “Guidance Note”).

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of such internal financial controls, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.

Management’s Responsibility for Internal Financial Controls

The Company’s management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors,

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls with reference to financial statements.

Meaning of Internal Financial controls with Reference to Financial Statements A company’s internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial controls with reference to financial statements include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial controls with Reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

For B S R & Co. LLP

Chartered Accountants Firm’s Registration No.: 101248W/W-100022

Kaushal Kishore

Partner

Place: Gurugram Membership No.: 090075 Date: 27 May 2022 UDIN: 22090075AJTEDQ5066

176 Annual Report 2021-22

Annual Report 2021-22 177

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Standalone Balance Sheet

as at March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

==> picture [442 x 27] intentionally omitted <==

----- Start of picture text -----

Particulars Note No. As at As at
March 31, 2022 March 31, 2021
----- End of picture text -----

ASSETS
Non-current assets
Property, plant and equipment	2	5,750.50	5,568.33
Right-of-use assets	37	255.35	216.76
Capital work-in-progress	2.1	1,617.04	436.13
Goodwill	3	-	0.62
Other intangible assets	4	108.13	109.88
Financial assets
(i) Investments	5	92.82	87.76
(ii) Loans	6	410.05	346.70
(iii) Other fnancial assets	7	140.53	80.61
Non-current tax assets (net)	20	21.31	33.74
Other non-current assets	8	207.48	173.36
Total non-current assets		8,603.21	7,053.89
Current assets
Inventories	9	1,750.88	1,286.70
Financial assets
(i) Investments	5	316.74	412.52
(ii) Trade receivables	10	1,350.99	1,012.00
(iii) Cash and cash equivalents	11	319.64	86.72
(iv) Bank balances other than above	12	8.87	143.71
(v) Loans	6	178.42	281.48
(vi) Other fnancial assets	7	226.51	217.64
Other current assets	8	179.96	216.64
Total current assets		4,332.01	3,657.41
Assets classifed as held for sale	40	3.00	-
TOTAL ASSETS		12,938.22	10,711.30
EQUITY AND LIABILITIES
Equity
Equity share capital	13	297.44	60.26
Other equity	14	7,327.36	6,235.01
Total equity		7,624.80	6,295.27
Liabilities
Non-current liabilities
Financial liabilities
(i) Borrowings	15	1,189.73	1,422.24
(ii) Lease liabilities	37	95.18	63.83
(iii) Other fnancial liabilities	19	153.53	0.54
Provisions	16	44.86	38.23
Deferred tax liabilities(net)	17	613.04	326.46
Total non - current liabilities		2,096.34	1,851.30

Standalone Balance Sheet (CONTD.)

as at March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Particulars Note No. As at As at
March 31, 2022 March 31, 2021
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Current liabilities
Financial liabilities
(i) Borrowings	15	1,585.17	1,152.84
(ii) Lease liabilities	37	20.66	13.80
(iii) Trade payables	18
(a) Total outstanding dues of micro enterprises and		55.98	33.37
small enterprises
(b) Total outstanding dues of creditors other than micro		1,284.39	1,163.12
enterprises and small enterprises
(iv) Other fnancial liabilities	19	148.15	109.08
Other current liabilities	21	107.56	75.79
Provisions	16	5.42	7.00
Current tax liabilities(net)	20	9.75	9.73
Total current liabilities		3,217.08	2,564.73
Total Liabilities		5,313.42	4,416.03
TOTAL EQUITY AND LIABILITIES		12,938.22	10,711.30
Summary of signifcant accounting policies	1B
See accompanying notes to the standalone	2 to 41
fnancial statements

As per our report of even date attached For and on behalf of the Board of Directors For B S R & Co. LLP

Chartered Accountants ICAI Firm registration no. 101248W / W-100022

Kaushal Kishore Ashish Bharat Ram Kartik Bharat Ram Partner Chairman and Managing Joint Managing Director Membership No.: 090075 Director DIN - 00008557 Place : Gurugram DIN - 00671567 Place : Gurugram Date : May 27, 2022 Place : Gurugram Date : May 09, 2022 Date : May 09, 2022

Rahul Jain Bharti Gupta Ramola Rajat Lakhanpal President & CFO Director Vice President Place : Gurugram DIN - 00356188 (Corporate Compliance) Date : May 09, 2022 Place : Gurugram and Company Secretary Date : May 09, 2022 Place : Gurugram Date : May 09, 2022

178 Annual Report 2021-22

Annual Report 2021-22 179

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Standalone Statement of Profit and Loss

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Particulars Note No. Year ended Year ended
March 31, 2022 March 31, 2021
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I	Revenue from operations	22	9,953.44	6,988.32
II	Other income	23	135.31	63.30
III	Total Income (I + II)		10,088.75	7,051.62
IV	Expenses
	Cost of materials consumed	24.1	4,748.26	3,278.50
	Purchases of stock-in-trade	24.2	137.27	60.49
	Changes in inventories of fnished goods, work-in-	24.3	(193.25)	(28.21)
	progress and stock-in-trade
	Employee benefts expense	25	658.48	534.13
	Finance costs	26	94.45	111.21
	Depreciation and amortisation expense	27	419.23	383.60
	Other expenses	28	2,069.27	1,401.93
	Total Expenses (IV)		7,933.71	5,741.65
V	Proft before tax (III - IV)		2,155.04	1,309.97
VI	Tax expense	29
	Current tax		616.41	327.23
	Deferred tax
	MAT credit entitlement		(25.27)	(5.38)
	Others		56.89	63.06
	Total tax expense		648.03	384.91
VII	Proft for the year (V - VI)		1,507.01	925.06
VIII	Other comprehensive income
A	Items that will not be reclassifed to proft or loss
	(i)(a) Gain / (loss) of defned beneft obligation	14.2, 33.2	(7.30)	2.41
	(i)(b) Income tax on item (i)(a) above	14.2, 30	2.55	(0.84)
B	Items that will be reclassifed to proft or loss
	(i)(a) Efective portion of gain / (loss) on hedging instruments in a cash fow hedge	14.3	39.99	132.33
	(i)(b) Income tax on item (i)(a) above	14.3, 30	(13.03)	(46.24)

Standalone Statement of Profit and Loss (CONTD.)

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Particulars Note No. Year ended Year ended
March 31, 2022 March 31, 2021
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	(ii)(a) Cost of Hedging Reserve	14.10	1.48	0.95
	(ii)(b) Income tax on item (ii)(a) above	14.10, 30	(0.45)	(0.33)
	Total other comprehensive income for the		23.24	88.28
	year, net of taxes (A(i) + B(i+ii))
IX	Total comprehensive income for the year		1,530.25	1,013.34
	(VII + VIII)
	Basic and Diluted Earnings per equity share (in`)	36	50.86	31.33
	Summary of signifcant accounting policies	1B
	See accompanying notes to the standalone fnancial	2 to 41
	statements

As per our report of even date attached For and on behalf of the Board of Directors For B S R & Co. LLP Chartered Accountants ICAI Firm registration no. 101248W / W-100022

Kaushal Kishore

Ashish Bharat Ram

Kartik Bharat Ram

Chairman and Managing Joint Managing Director Director DIN - 00008557 DIN - 00671567 Place : Gurugram Place : Gurugram Date : May 09, 2022 Date : May 09, 2022

Partner

Membership No.: 090075 Place : Gurugram Date : May 27, 2022

Bharti Gupta Ramola Rajat Lakhanpal

Rahul Jain

President & CFO Place : Gurugram Date : May 09, 2022

Director Vice President DIN - 00356188 (Corporate Compliance) Place : Gurugram and Company Secretary Date : May 09, 2022 Place : Gurugram Date : May 09, 2022

180 Annual Report 2021-22

Annual Report 2021-22 181

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Standalone Cash Flow Statement

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Particulars Year ended Year ended
March 31, 2022 March 31, 2021
A CASH FLOW FROM OPERATING ACTIVITIES
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	Proft before tax	2,155.04	1,309.97
	Adjustments for:
	Finance costs	94.45	111.21
	Interest income	(32.20)	(9.24)
	Net gain on sale of property, plant and equipment Net gain on fnancial assets measured at fair value through proft and loss Credit impaired assets provided / written of	(3.09) (7.06) 0.76	(0.39) (25.45) 12.06
	Depreciation and amortisation expense	419.23	383.60
	Property, plant and equipment and inventory discarded / provided	18.83	3.36
	Provision / liabilities no longer required written back Net unrealised currency exchange fuctuation (gain) / loss	(2.59) (21.27)	(11.42) 7.59
	Employee share based payment expense	11.11	0.97
	Stamp duty on purchase of investments	0.08	0.15
	Adjustments for (increase) / decrease in operating assets :-
	Trade receivables	(331.15)	(274.12)
	Inventories	(472.29)	(178.37)
	Loans (current)	(1.04)	(1.04)
	Loans (non-current)	(4.16)	(0.60)
	Other assets (current)	44.44	49.92
	Other assets (non-current)	(1.85)	(3.97)
	Adjustments for increase / (decrease) in operating liabilities :-
	Trade payables	142.65	248.04
	Provisions	5.05	6.32
	Other liabilities (current)	(15.34)	22.01
	Cash generated from operations	1,999.60	1,650.60
	Income taxes paid (net of refunds)	(361.99)	(229.00)
	Net cash generated from operating activities	1,637.61	1,421.60
B	CASH FLOW FROM INVESTING ACTIVITIES
	Net sale / (purchases) of current investments	102.84	(188.57)
	Stamp duty on purchase of investments	(0.08)	(0.15)
	Purchase of non-current investments	(5.06)	-
	Interest received	31.57	0.07
	Bank balances not considered as cash and cash equivalents	104.84	(134.68)
	Payment for purchase of property, plant and equipment, capital	(1,575.85)	(853.05)
	work-in-progress and other intangible assets
	Proceeds from disposal of property, plant and equipment	14.95	4.06
	Loans given to subsidiaries	(230.20)	(617.49)
	Repayment of loans received from subsidiaries	277.41	-
	Net cash used in investing activities	(1,279.58)	(1,789.81)
C	CASH FLOW FROM FINANCING ACTIVITIES
	Proceeds from issue of shares	0.20	750.00
	Costs incurred on issue of shares	-	(11.99)
	Proceeds from borrowings (Non-current)	455.36	1,294.04
	Repayment of borrowings (Non-current)	(414.05)	(1,344.41)
	Net proceeds / (repayment) from borrowings (Current)	157.22	(42.57)
	Dividends on equity share capital paid	(211.74)	(140.78)
	Repayment towards lease liability	(25.68)	(20.19)
	Finance costs paid Net cash (used in) / generated from fnancing activities	(86.42) (125.11)	(127.43) 356.67
	Net increase / (decrease) in cash and cash equivalents	232.92	(11.54)
	Cash and cash equivalents at the beginning of the year	86.72	98.26
	Cash and cash equivalents at the end of the year (Refer to note 11)	319.64	86.72

Standalone Cash Flow Statement (CONTD.)

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Notes:

(i) The cash flow statement has been prepared under indirect method as set out in Indian Accounting Standard-7 (Ind AS) on ‘Statement of Cash Flows’.
(ii) During the year, the Company paid in cash 21.75 Crores (Previous year: 10.18 Crores) towards corporate social responsibility (CSR) expenditure.
(iii) The following table discloses changes in liabilities arising from financing activities, including both cash and non-cash changes:

Particulars	As at March 31, 2021	Cash fow from fnancing activities Upfront fees amortised	Cash fow from fnancing activities Upfront fees amortised	Exchange fuctuation changes#	Non-cash changes Finance cost# Interim dividend declared Lease liability recognised	Non-cash changes Finance cost# Interim dividend declared Lease liability recognised	Non-cash changes Finance cost# Interim dividend declared Lease liability recognised	Utilisation of securities premium	Utilisation of securities premium	As at March 31, 2022
Equity share capital	60.26	0.20	-	-	-	-	-	236.98		297.44
Securities premium	736.25	-	-	-	-	-	-	(226.69)		509.56
Non-current borrowings *	1,812.82	41.31	1.48	(3.39)	-	-	-		-	1,852.22
Current borrowings^	762.26	157.22	-	3.20	-	-	-		-	922.68
Interest accrued	4.47	(86.42)	-	-	85.65	-	-		-	3.70
Lease liability	77.62	(25.68)	-	-	8.70	-	55.20		-	115.84
Dividend	6.57	(211.74)	-	-	-	211.89	-		-	6.72
Total	3,460.25	(125.11)	1.48	(0.19)	94.35	211.89	55.20	10.29		3,708.16

Particulars	As at March 31, 2020	Cash fow from fnancing activities	Non-cash changes Upfront fees amortised Exchange fuctuation changes# Finance cost# Interim dividend declared Lease liability recognised							As at March 31, 2021
Equity share capital	58.50	1.76		-	-	-	-	-		60.26
Securities premium	-	736.25		-	-	-	-	-		736.25
(net of issue expenses)
Non-current borrowings *	1,859.62	(50.37)		2.30	1.27	-	-	-		1,812.82
Current borrowings ^	804.80	(42.57)		-	0.03	-	-	-		762.26
Interest accrued	22.64	(127.43)		-	-	109.26	-	-		4.47
Lease liability	87.69	(20.19)		-	-	6.49	-	3.63		77.62
Dividend	6.04	(140.78)		-	-	-	141.31	-		6.57
Total	2,839.29	356.67		2.30	1.30	115.75	141.31	3.63		3,460.25

including current maturities of long term borrowings

^ excluding current maturities of long term borrowings

including amount capitalised See accompanying notes to the standalone financial statements

2 to 41

As per our report of even date attached For and on behalf of the Board of Directors For B S R & Co. LLP

Chartered Accountants ICAI Firm registration no. 101248W / W-100022

Kaushal Kishore

Ashish Bharat Ram

Kartik Bharat Ram

Partner Chairman and Managing Joint Managing Director Membership No.: 090075 Director DIN - 00008557 Place : Gurugram DIN - 00671567 Place : Gurugram Date : May 27, 2022 Place : Gurugram Date : May 09, 2022 Date : May 09, 2022

Bharti Gupta Ramola

182

Annual Report 2021-22 183

Annual Report 2021-22

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Standalone Statement of Changes In Equity

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

(a) Equity share capital

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Amount
Balance at March 31, 2020 58.50
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Changes in equity share capital during the year	1.76
Balance at March 31, 2021	60.26
Changes in equity share capital during the year	237.18
Balance at March 31, 2022	297.44

(b) Other Equity

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Particulars Reserves and Surplus Items of other comprehensive income Total
Capital General Capital Securities Debenture Employee Retained Effective Equity Cost of equity
reserve reserve redemption premium redemption share earnings portion of instrument hedging
reserve reserve based cash flow through other reserve
payment hedge comprehensive
reserve income
Balance at March 31, 2020 219.19 573.54 10.48 - 75.00 1.56 3828.76 (78.56) (4.22) - 4,625.75
Other comprehensive income for Profit for the year -- -- -- -- -- -- 925.061.57 86.09- -- 0.62- 925.0688.28
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the year, net of income tax
Total comprehensive income	-	-	-	-	-	-	926.63	86.09	-	0.62	1,013.34
for the year
Payment of dividend ^	-	-	-	-	-	-	(141.31)	-	-	-	(141.31)
Employee share based payment	-	-	-	-	-	0.98	-	-	-	-	0.98
expense
Transfer to debenture	-	-	-	-	-	-	(62.50)	-	-	-	(62.50)
redemption reserve
Transfer to general reserve	-	-	-	-	(75.00)	-	-	-	-	-	(75.00)
Transfer from debenture	-	75.00	-	-	-	-	-	-	-	-	75.00
redemption reserve
Transfer from retained earnings	-	-	-	-	62.50	-	-	-	-	-	62.50
Premium on issue of equity	-	-	-	736.25	-	-	-	-	-	-	736.25
shares (net of issue expenses)^
Balance at March 31, 2021 Proft for the year Other comprehensive income for	219.19 - -	648.54 - -	10.48 - -	736.25 - -	62.50 - -	2.54 - -	4551.58 1,507.01 (4.75)	7.53 - 26.96	(4.22) - -	0.62 - 1.03	6,235.01 1,507.01 23.24
the year, net of income tax
Total comprehensive income	-	-	-	-	-	-	1,502.26	26.96	-	1.03	1,530.25
for the year
Payment of dividend ^	-	-	-	-	-	-	(211.89)	-	-	-	(211.89)
Employee share based payment	-	-	-	-	-	10.91	-	-	-	-	10.91
expense
Recognised / (released) on	-	-	-	10.29	-	(10.23)	-	-	-	-	0.06
vesting of shares issued
under employee share purchase
scheme
Utilisation on issue of bonus	-	-	-	(236.98)	-	-	-	-	-	-	(236.98)
equity shares
Balance at March 31, 2022	219.19	648.54	10.48	509.56	62.50	3.22	5841.95	34.49	(4.22)	1.65	7,327.36

Refer note 14

^ Refer note 13.1 See accompanying notes to the standalone financial statements 2 to 41

As per our report of even date attached For and on behalf of the Board of Directors For B S R & Co. LLP

Chartered Accountants

ICAI Firm registration no. 101248W / W-100022

Kartik Bharat Ram Joint Managing Director DIN - 00008557 Place : Gurugram Date : May 09, 2022

Ashish Bharat Ram

Kaushal Kishore Partner

Partner Chairman and Managing Membership No.: 090075 Director Place : Gurugram DIN - 00671567 Date : May 27, 2022 Place : Gurugram Date : May 09, 2022

Bharti Gupta Ramola Rajat Lakhanpal Director Vice President DIN - 00356188 (Corporate Compliance) Place : Gurugram and Company Secretary Date : May 09, 2022 Place : Gurugram Date : May 09, 2022

Rahul Jain President & CFO Place : Gurugram Date : May 09, 2022

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

1 Corporate Information, Significant Accounting Policies and Significant Accounting Judgements, Estimates and Assumptions
Defined benefit plans - plan assets measured at fair value less present value of defined benefit obligation
Share-based payments

A CORPORATE INFORMATION

The standalone financial statements are presented in Indian Rupees (INR) which is also the Company’s functional currency and all values are rounded to the nearest crores, except when otherwise indicated.

SRF Limited (“the Company”) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company’s equity shares are listed at the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The registered office of the Company is situated at The Galleria, DLF Mayur Vihar, Unit No. 236 and 237, Second Floor, Mayur Vihar Place, Noida Link Road, Mayur Vihar Phase I Extn, Delhi - 110091. The Company’s parent company is KAMA Holdings Limited.

The principal accounting policies are set out below.

2 Current versus non-current classification The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.

The principal activities of the Company are manufacturing, purchase and sale of technical textiles, chemicals, packaging films and other polymers.

An asset is treated as current when it is:

Expected to be realised or intended to be sold or consumed in normal operating cycle

The standalone financial statements were authorised for issue in accordance with a resolution of the directors on May 9, 2022.

Held primarily for the purpose of trading
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

B SIGNIFICANT ACCOUNTING POLICIES

1 Basis of Preparation

These standalone financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), under the Companies (Indian Accounting Standards) Rules, 2015 notified under section 133 of the Companies Act 2013 (“the Act”) as amended thereafter and other relevant provisions of the Act.

All other assets are classified as non-current.

A liability is current when:

It is expected to be settled in normal operating cycle
It is held primarily for the purpose of trading

The standalone financial statements have been prepared on an accrual basis and under the historical cost convention, except for the following assets and liabilities which have been measured at fair value:

There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.
The Company classifies all other liabilities as non-current.
Derivative financial instruments
Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments)

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

184 Annual Report 2021-22

185

Annual Report 2021-22

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has identified twelve months as its operating cycle for the purpose of current / non current classification of assets and liabilities.

Capital Work in Progress: Project under which assets are not yet ready for their intended use are carried at cost comprising direct cost, related incidental expenses and attributable interest.

3 Property, plant and equipment (PPE) Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation and accumulated impairment losses, if any.

Spare parts are capitalized when they meet the definition of PPE, i.e., when the Company intends to use these for a period of more than 12 months.

All items of property, plant and equipment have been measured at fair value at the date of transition to Ind AS. The Company have opted such fair valuation as deemed cost at the transition date i.e. April 1, 2015.

4 Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.

Cost of acquisition or construction is inclusive of freight, duties, non-recoverable taxes, incidental expenses and interest on loans attributable to the acquisition of qualifying assets, up to the date of commissioning of the assets.

Depreciation has been provided on the cost of assets less their residual values on straight line method on the basis of estimated useful life of assets determined by the Company which are different from the useful life as prescribed in Schedule II of the 2013 Act. The estimated useful life of the assets have been assessed based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc. and are as under:

Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for qualifying assets, upto the date of commissioning of the assets.

Likewise, when a major inspection for faults is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria is satisfied. All other repair and maintenance costs are recognised in the statement of profit and loss as incurred.

Roads	40-50 years
Buildings (including	5-60 years
temporary structures) Plant and equipment Furniture and fxtures Ofce equipment	2-40 years 3-20 years 3-20 years
Vehicles	4-5years

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items of property, plant and equipment and depreciated accordingly.

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Freehold land is not depreciated.

Trademarks / Brand	10-30 years
Technical Knowhow Software Other intangibles	30-40 years 3-5 years 2.5-8years

Depreciation is calculated on a pro rata basis except assets costing upto ` 5,000 each, which are fully depreciated in the year of purchase.

The Company has elected to continue with the carrying value of all of its intangibles assets recognised as on April 1, 2015 measured as per the previous GAAP and use that carrying value as its deemed cost as of transition date.

An item of property, plant and equipment or any significant part initially recognised of such item of property plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss when the asset is derecognised.

The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

The estimated useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

5 Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost.

An intangible asset is derecognised on disposal or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when the asset is derecognised.

Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any.

Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

6 Research and development expenditure

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The useful lives considered are as follows:

Expenditure on research and development of products is included under the natural heads of expenditure in the year in which it is incurred except which relate to development activities whereby research findings are applied to a plan or design

186 Annual Report 2021-22

Annual Report 2021-22 187

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

for the production of new or substantially improved products and processes.

goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.

Such development costs are capitalised if they can be reliably measured, the product or process is technically and commercially feasible and the Company has sufficient resources to complete the development and to use or sell the asset.

On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation and accumulated impairment losses, if any. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised over the period of expected future benefit. Amortisation expense is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset. During the period of development, the asset is tested for impairment annually.

8 Impairment of tangible and intangible assets other than goodwill

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use.

7 Goodwill

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any.

Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.

For the purposes of impairment testing, goodwill is allocated to each of the Company’s cash-generating units that is expected to benefit from the synergies of the combination.

Impairment loss is recognised when the carrying amount of an asset or CGU exceeds its recoverable amount. In such cases, the asset is considered impaired and is written down to its recoverable amount.

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples or other available fair value indicators.

9 Leasing

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assess whether:

The Company bases its impairment calculation on detailed budgets and forecast, which are prepared separately for each of the Company’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of 5 years. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after 5th year. To estimate cash flow projections beyond periods covered by the most recent budgets/forecasts, Company extrapolates cash flow projections in the budget using a steady or declining growth rate for subsequent years, unless an increasing rate can be justified.

the contract involves the use of an identified asset – this may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;
the Company has the right to obtain substantially all of the economic benefits from use of the asset through the period of use; and

For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset’s or CGU’s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.

the Company has the right to direct the use of the asset. The Company has this right when it has the decisionmaking rights that are most relevant to changing how and for what purpose the asset is used. In rare cases, where the decision about how and for what purpose the asset is used is predetermined, the Company has the right to direct the use of the asset if either:
the Company has the right to operate the asset; or
the Company designed the asset in a way that predetermines how and for what purpose it will be used.

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Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

An entity shall reassess whether a contract is, or contains, a lease only if the terms and conditions of the contract are changed.

Lease payments included in the measurement of the lease liability comprise the fixed payments, including in-substance fixed payments.

At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option.

Company as lessee

The Company accounts for assets taken under lease arrangement in the following manner:

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right of use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentive received.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-of use assets and lease liabilities for short term leases that have a lease term of 12 months or less and leases of low value assets. The Company recognises the lease payments associated with these leases as an expense on a straight- line basis over the lease term.

the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

10 Borrowing costs

Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Company’s incremental borrowing rate.

Borrowing costs directly attributable to the acquisition, construction or production of

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. Borrowing costs incurred for the period from commencement of activities relating to construction/ development of the qualifying asset upto the date of capitalisation of such asset are added to the cost of the asset. All other borrowing costs are expensed in the period in which they occur.

(i) Monetary assets and liabilities denominated in foreign currency remaining unsettled at the end of the year, are translated at the closing rates prevailing on the Balance Sheet date. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rate at the date of transaction. Any gains or losses arising due to differences in exchange rates at the time of translation or settlement are accounted for in the Statement of Profit and Loss either under the head foreign exchange fluctuation or interest cost, as the case may be, except those relating to exchange differences arising from cash flow hedges to the extent that the hedges are effective and those covered below.

In case of a specific borrowing taken for the purpose of acquisition, construction or production of a qualifying asset, the borrowing costs capitalised shall be the actual borrowing costs incurred during the period less any interest income earned on temporary investment of specific borrowing pending expenditure on qualifying asset.

(ii) Exchange differences pertaining to long term foreign currency loans obtained or re-financed on or before March 31, 2016:

In case funds are borrowed generally and such funds are used for the purpose of acquisition, construction or production of a qualifying asset, the borrowing costs capitalised are calculated by applying the weighted average capitalisation rate on general borrowings outstanding during the period, to the expenditures incurred on the qualifying asset.

Exchange differences on long-term foreign currency monetary items relating to acquisition of depreciable assets are adjusted to the carrying cost of the assets and depreciated over the balance useful life of the assets.

If any specific borrowing remains outstanding after the related asset is ready for its intended use, that borrowing is considered part of the funds that are borrowed generally for calculating the capitalisation rate.

(iii) Exchange differences pertaining to long term foreign currency loans obtained or re-financed on or after April 1, 2016:

The exchange differences pertaining to long term foreign currency loans obtained or re-financed on or after April 1, 2016 is treated in accodance with Ind AS 21/ Ind AS 109. Refer point (i) above.

11 Foreign Currencies

Transactions in foreign currencies are recorded on initial recognition at the exchange rate prevailing on the date of the transaction.

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

asset, but only when the reimbursement is virtually certain.

12 Inventories

Inventories are valued at cost or net realisable value, whichever is lower. The basis of determining the cost for various categories of inventory are as follows:

The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

(a) Raw materials, packing materials and stores and spares (including fuel) - Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on weighted average basis. The aforesaid items are valued at Net Realisable Value if the finished products in which they are to be incorporated are expected to be sold at a loss.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements unless the possibility of an outflow of resources embodying economic benefits is remote. Contingent liabilities and commitments are reviewed by the management at each balance sheet date.

(b) Traded goods, Stock in progress and finished goods- Direct cost plus appropriate share of overheads.
(c) By products - At estimated realisable value
- Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.
13 Provisions, contingent liabilities and contingent assets

Provisions

The Company recognises a provision when there is a present obligation (legal or constructive) as a result of past events and it is more likely than not that an outflow of resources would be required to settle the obligation and a reliable estimate can be made.

Contingent assets

Contingent assets are neither recognised nor disclosed in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs.

When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

reliably. Interest income is accrued on a time basis, by reference to the principal outstanding.

14 Revenue recognition

a) Sale of goods

Revenue from sale of products is recognised upon transfer of control of products to customers at the time of shipment to or receipt of goods by the customers. Service income is recognised as and when the underlying services are performed. The Company exercises judgement in determining whether the performance obligation is satisfied at a point in time or over a period of time.

Dividend income from investments is recognised when the shareholder’s right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably).

c) Export Incentives

The benefit accrued under the Duty Drawback scheme and other schemes as per the Export and Import Policy in respect of exports made under the said Schemes is included under the head “Revenue from Operations” under ‘Export and other Incentives’. Also refer policy on “government grants”.

Revenues are measured based on the transaction price, which is the consideration, net of tax collected from customers and remitted to government authorities such as goods and services tax and applicable discounts and allowances.

Any fees including upfront fees received in relation to contract manufacturing arrangements is recognised on straight line basis over the period over which the Company satisfies the underlying performance obligations. Contract assets are recognised when there is excess of revenue earned over billings on contracts. Contract assets are classified as unbilled revenue (only act of invoicing is pending) when there is unconditional right to receive cash as per contractual terms. Advance from customers (“contract liability”) is recognised when the Company has received consideration from the customer before it delivers the goods.

15 Taxation

Income tax expense represents the sum of current tax and deferred tax.

a) Current tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss i.e. in other comprehensive income or in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

b) Interest and dividend income Interest income is recognised when it is probable that the economic benefits will flow to the Company using the effective interest rate and the amount of income can be measured

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STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Deferred tax assets/liabilities are not recognised for below mentioned temporary differences:

b) Deferred tax

Deferred tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying amounts at the reporting date.

(i) At the time of initial recognition of goodwill;

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.

(ii) Initial recognition of assets or liabilities (other than in a business combination) at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT asset is recognised in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

The Company considers whether it is probable that a taxation authority will accept an uncertain tax treatment. If the Company concludes that it is probable that the taxation authority will accept an uncertain tax treatment, the Company determines the taxable profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates consistently with the tax treatment used or planned to be used in its income tax filings. However, if the Company concludes that it is not probable that the taxation authority will accept an uncertain tax treatment, the Company reflects the effect of uncertainty in determining the related taxable profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss i.e. in other comprehensive income or in equity.

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Defined benefit plans

16 Government grants

The Company has defined benefit gratuity plan and provident fund for certain category of employees administered through a recognised provident fund trust. Provision for gratuity and provident fund for certain category of employees administered through a recognised provident fund trust are determined on an actuarial basis at the end of the year and charged to Statement of Profit and Loss, other than remeasurements. The cost of providing these benefits is determined using the projected unit credit method.
Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with.

A government grant that becomes receivable as compensation for expenses or losses incurred in a previous period. Such a grant is recognised in profit or loss of the period in which it becomes receivable.

Government grants are recognised in profit or loss on a systematic basis over the periods in which the Company recognises as expenses the related costs for which the grants are intended to compensate.

Remeasurements, comprising of actuarial gains and losses and the effect of the asset ceiling, (excluding amounts included in net interest on the net defined benefit liability and return on plan assets), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive income in the period in which they occur. Remeasurements are not reclassified to statement of profit and loss in subsequent periods.

Government grants related to assets are presented in the balance sheet as deferred income and is recognised in profit or loss on a systematic basis over the expected useful life of the related assets.

17 Employee benefits

Short-term employee benefits

Wages and salaries including non monetary benefits that are expected to be settled within the operating cycle after the end of the period in which the related services are rendered, are measured at the undiscounted amount expected to be paid.

Other long-term employee benefits

The Company also has other long-term employee benefits in the nature of compensated absences and long term retention pay. Provision for compensated absences and long term retention pay are determined on an actuarial basis at the end of the year and charged to Statement of Profit and Loss. The cost of providing these benefits is determined using the projected unit credit method.

Defined contribution plans

Provident fund administered through Regional Provident Fund Commissioner, Superannuation Fund and Employees’ State Insurance Corporation are defined contribution schemes. Contributions to such schemes are charged to the statement of profit and loss in the year when employees have rendered services entitling them to contributions. The Company has no obligation, other than the contribution payable to such schemes.

Share based payments

Equity settled share based payments to employees under SRF Long Term Share Based Incentive Plan (SRF LTIP) are measured at the fair value (which is the

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

market price less exercise price) of the equity instruments on the grant date. This compensation expense is amortised over the remaining tenure over which the employees renders their service on a straight line basis.

a) At amortised cost
b) At fair value through profit and loss (FVTPL)
c) At fair value through other comprehensive income (FVTOCI

18 Earnings per share

Financial Asset is measured at amortised cost if both the following conditions are met:

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in other income in the statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and loss. This category generally applies to trade and other receivables.

19 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

20 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial assets not classified as measured at amortised cost or FVTOCI as are measured at FVTPL. Financial assets included within the FVTPL category are measured at fair value with all changes recognised in the statement of profit and loss.

A) Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus transaction costs that are directly attributable to the acquisition of the financial asset.

Subsequent measurement

Equity Investments

For purposes of subsequent measurement, financial assets of the Company are classified in three categories:

All equity investments in the scope of Ind AS 109 are measured at fair value.

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Equity instruments which are held for trading are measured at fair value through profit and loss.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company’s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

For all other equity instruments, the Company may make an irrevocable election to present subsequent changes in the fair value in other comprehensive income. The Company makes such election on an instrument by instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognised in other comprehensive income. This cumulative gain or loss is not reclassified to statement of profit and loss on disposal of such instruments.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay. Any gain or loss on derecognition is recognised in profit or loss.

Investments representing equity interest in subsidiaries are carried at cost less any provision for impairment.

Derecognition

A financial asset (or, where applicable, a part of a financial asset) is primarily derecognised (i.e. removed from the balance sheet) when:

When the Company has retained substantially all the risks and rewards of ownership of the transferred asset, the Company continues to recognise the transferred asset in its entirety and recognises a financial liability for the consideration received.

a) The rights to receive cash flows from the asset have expired, or
b) The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (i) the Company has transferred substantially all the risks and rewards of the asset, or (ii) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Impairment of financial assets

The Company recognizes loss allowance using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all financial assets with contractual cash flows other than trade receivable, ECLs are measured at an amount equal to

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Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting date is recognised as an impairment gain or loss in the Statement of Profit and Loss.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified entity fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee.

B) Financial liabilities and Equity instruments Initial recognition and measurement

All financial liabilities are recognised initially at fair value, net of directly attributable transaction costs, if any.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.

The Company’s financial liabilities includes borrowings, trade and other payables including financial guarantee contracts and derivative financial instruments.

Subsequent measurement

Borrowings

Borrowings are subsequently measured at amortised cost. Any differences between the proceeds (net of transaction costs) and the redemption/repayment amount is recognised in profit and loss over the period of the borrowings using the effective interest rate method.

Equity instrument

Equity instruments are any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

Trade and other payables

Trade and other payables represent liabilities for goods and services provided to the Company prior to the end of the financial year which are unpaid.

Debt or equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

21 Derivative and non derivative financial instruments and hedge accounting
Initial recognition and subsequent measurement
The Company uses derivative financial instruments (such as forward currency

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

For the purpose of hedge accounting, hedges are classified as:

contracts, interest rate swaps and full currency swaps) or non derivative financial assets / liabilities to hedge its foreign currency risks and interest rate risks. The Company has opted for “Hedge Accounting” for all its derivative as well as non-derivative financial instrument used for hedging. Accordingly, at the inception of the hedge the Company formally designates a hedge relationship between the ‘hedging instrument’ and ‘hedged item’ which determines the initial recognition of the financial intrument as Fair Value Hedge or Cashflow hedge. The documentation includes the Compnay’s risk management objective and strategy for undertaking hedge, the hedging/ economic relationship, the hedged item or transaction, the nature of the risk being hedged and how the entity will assess the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for which they were designated. These financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

a) Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability.
b) Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognised firm commitment.

Hedges that meet the strict criteria for hedge accounting are accounted for, as described below:

Fair value hedges

The change in the fair value of a hedging instrument is recognised in the statement of profit and loss. The change in the fair value of the hedged item attributable to the risk hedged is recorded as part of the carrying value of the hedged item and is also recognised in the statement of profit and loss.

If the hedged item is derecognised, the unamortised fair value is recognised immediately in profit or loss. When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain or loss recognised in statement of profit and loss.

Cash flow hedges

Any gains or losses arising from changes in the fair value of derivatives are taken directly to profit or loss, except for the effective portion of cash flow hedges, which is recognised in OCI and later reclassified to profit and loss when the hedge item affects profit or loss.

The effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income in the cash flow hedge reserve, while any ineffective portion is recognised immediately in the statement of profit and loss.

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Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

a hedge is revoked, or when the hedge no longer meets the criteria for hedge accounting, the hedge accountig will be discontinued prospectively. Any cumulative gain or loss previously recognised in other comprehensive income remains separately in other equity if the forecast transaction or the foreign currency firm commitment is expected to occur else the amount shall be immediately reclassified from the cash flow hedge reserve to profit or loss as a reclassification adjustment.

The Company uses forward currency contracts as hedges of its exposure to foreign currency risk in forecast transactions and firm commitments. The ineffective portion relating to foreign currency contracts is recognised in the statement of profit and loss. In some cases, the Company separates the premium element and the spot element of a forward contract and designates only the change in fair value of the spot element of forward exchange contracts as the hedging instrument in cash flow hedging relationships. In such cases, the changes in the fair value of the premium element of the forward contract or the foreign currency basis spread of the financial instrument is accumulated in a separate component of equity as ‘cost of hedging’. The changes in the fair value of such premium element or foreign currency basis spread are reclassified to profit or loss as a reclassification adjustment on a straight-line basis over the period of the forward contract or the financial instrument.

22 Fair value measurement

The Company measures some of its financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

The Company also designates non derivative financial liabilities, such as foreign currency borrowings from banks, as hedging instruments for the hedge of foreign currency risk associated with highly probable forecasted transactions and, accordingly, applies cash flow hedge accounting for such relationships.

a) In the principal market for the asset or liability, or
b) In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in

Amounts recognised as other comprehensive income are transferred to profit or loss when the hedged transaction affects profit or loss, such as when the hedged financial income or financial expense is recognised or when a forecast transaction occurs.

If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover (as part of the hedging strategy), or if its designation as

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

23 Segment Reporting

Based on “Management Approach” as defined in Ind AS 108 -Operating Segments, the Chief Operating Decision Maker evaluates the Company’s performance and allocates the resources based on an analysis of various performance indicators by business segments. Inter segment sales and transfers are reflected at market prices.
Unallocable items includes general corporate income and expense items which are not allocated to any business segment.

Segment Policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the standalone financial statements of the Company as a whole. Common allocable costs are allocated to each segment on an appropriate basis.
a) Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
b) Level 2 — Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

24 Dividend

The Company recognises a liability to make cash distributions to equity holders when the distribution is authorised and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.
c) Level 3 — Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

25 Non-current assets held for sale and discontinued operations
Non-current assets (or disposal groups) are classified as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. The appropriate level of management must be committed to a plan to sell, an active programme to locate a buyer and complete the plan has been initiated, the sale is considered highly

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

200 Annual Report 2021-22

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Ind AS 103 – Reference to Conceptual Framework

probable and is expected within one year from the date of classification.

The amendments specifiy that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in its financial statements.

Non-current assets (or disposal groups) held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Assets and liabilities classified as held for sale are presented separately from other assets and liabilities in the balance sheet. Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortised.

A discontinued operation is a component of the Company that either has been disposed of, or is classified as held for sale, and:

a) Represents a separate major line of business or geographical area of operations,

Ind AS 16 – Proceeds before intended use

The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognised in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipment. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.
b) Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations, or
c) Is a subsidiary acquired exclusively with a view to resale.

Discontinued operations are excluded from the results of continuing operations and are presented separately in the statement of profit and loss.

Ind AS 37 – Onerous Contracts - Costs of Fulfilling a Contract

The amendments specify that that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.

26 Recent pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 01, 2022, as below:

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes.

Ind AS 109 – Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the ‘10 percent’ test of Ind AS 109 in assessing whether to derecognise a financial liability. The Company does not expect the amendment to have any significant impact in its financial statements.

Classification and lease term determination of leasing arrangement – Note 1.B.9

Ind AS 106 – Annual Improvements to Ind AS (2021)

Derecognition of trade receivables and hedge effectiveness - Note 1.B.20

The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described in that illustration. The Company does not expect the amendment to have any significant impact in its financial statements.

Fair value measurement of derivative instruments – Note 1.B.22
Assessment of useful life of property, plant and equipment and intangible asset – Note 1.B.4
Recognition and estimation of tax expense including determination of applicable tax rate for measuring deferred tax balances – Note 1.B.15

C SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimation of assets and obligations relating to employee benefits (including actuarial assumptions) – Note 1.B.17
Assessment of impairment of financial assets and non-financial assets – Note 1.B.20 and Note 1.B.8

Judgements, estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the

Recognition and measurement of contingencies: key assumptions about the likelihood and magnitude of an outflow of resources – Note 1.B.13

202 Annual Report 2021-22

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

2 PROPERTY, PLANT AND EQUIPMENT

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Particulars Freehold Roads Buildings Plant and Furniture Office Vehicle Total
land equipment and fixtures equipment
----- End of picture text -----

Cost
Balance at March 31, 2020	317.18	63.48	686.96	5430.23	25.80	58.14	41.09	6622.88
Additions / adjustments	-	8.29	38.66	564.41	2.01	8.08	6.59	628.04
Disposals	-	-	(0.14)	(6.18)	(0.20)	(1.06)	(3.99)	(11.57)
Balance at March 31, 2021	317.18	71.77	725.48	5988.46	27.61	65.16	43.69	7239.35
Additions / adjustments	-	1.08	31.80	536.32	0.99	11.06	10.08	591.33
Disposals	-	-	(5.84)	(59.86)	(0.54)	(3.91)	(4.85)	(75.00)
Balance at March 31, 2022	317.18	72.85	751.44	6464.92	28.06	72.31	48.92	7755.68
Accumulated depreciation
Balance at March 31, 2020	-	6.31	85.03	1,166.81	9.30	31.04	20.75	1319.24
Depreciation expenses	-	1.54	20.22	320.71	2.07	6.53	7.25	358.32
Disposals	-	-	(0.03)	(2.70)	(0.14)	(0.90)	(2.76)	(6.53)
Balance at March 31, 2021	-	7.85	105.22	1484.82	11.23	36.67	25.24	1671.03
Depreciation expenses	-	1.67	21.38	347.26	1.91	7.86	7.76	387.84
Disposals	-	-	(0.63)	(45.56)	(0.32)	(3.53)	(3.64)	(53.68)
Balance at March 31, 2022	-	9.52	125.97	1786.52	12.82	41.00	29.36	2005.19
Carrying Amount
Balance at March 31, 2020	317.18	57.17	601.93	4263.42	16.50	27.10	20.34	5303.64
Additions / adjustments	-	8.29	38.66	564.41	2.01	8.08	6.59	628.04
Disposals	-	-	(0.11)	(3.48)	(0.06)	(0.16)	(1.22)	(5.03)
Depreciation expenses	-	(1.54)	(20.22)	(320.71)	(2.07)	(6.53)	(7.25)	(358.32)
Balance at March 31, 2021	317.18	63.92	620.26	4503.64	16.38	28.49	18.46	5568.33
Additions / adjustments	-	1.08	31.80	536.32	0.99	11.06	10.08	591.33
Disposals	-	-	(5.21)	(14.30)	(0.22)	(0.38)	(1.21)	(21.32)
Depreciation expenses	-	(1.67)	(21.38)	(347.26)	(1.91)	(7.86)	(7.76)	(387.84)
Balance at March 31, 2022	317.18	63.33	625.47	4678.40	15.24	31.31	19.57	5750.50

Notes:

(i) Borrowing cost capitalised during the year 17.85 Crores (Previous year: 7.62 Crores) with a capitalisation rate ranging from 0.40% to 3.55% (Previous year: 3.22% to 8.09%).
(ii) The industrial freehold land measuring 32.41 acres at the Company’s plant in Gummudipoondi, Tamil Nadu had been acquired by the Company w.e.f. January 01, 2001 pursuant to a scheme of amalgamation sanctioned by the Hon’ble High court of Judicature at Madras and the Hon’ble High court of Delhi. Out of the said land, there is a dispute on a land parcel of 2.74 acres. Based on the legal documentation available, the Company is of the view that the said dispute is not tenable.
(iii) Capital expenditure incurred during the year includes 8.49 Crores (Previous year: 13.46 Crores) on account of research and development. Depreciation for the year includes depreciation on assets deployed in research and development as per note 41 (a) below.

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

2.1 CAPITAL WORK-IN-PROGRESS (CWIP)

(i) Ageing of capital work-in-progress :

	Amount in CWIP for aperiod of
	Less than 1year 1 - 2 years 2 - 3 years More than 3years Total
Projects in progress As at March 31, 2022 As at March 31, 2021	1,509.77 99.77 7.50 - 1,617.04 416.73 18.44 0.96 - 436.13

(ii) CWIP completion schedule for capital work-in-progress whose completion is overdue or has exceeded its cost compared to its original plan :

	As at March 31, 2022
	To be completed in
	Less than 1year 1 - 2 years 2 - 3 years More than 3years
Projects in progress Chloromethanes plant Augmentation of power and steam capacity Others *	333.38 - - - 138.23 - - - 113.60 0.02 - -
	585.21 0.02 - -

	As at March 31, 2021
	To be completed in
	Less than 1year 1 - 2 years 2 - 3 years More than 3years
Projects in progress R22 facility Dedicated facility for SS-04 Others *	87.08 - - - 52.05 - - - 107.31 0.06 - -
	246.44 0.06 - -

Comprises projects not considered material at an individual level.
(iv) Refer to note 15.1 for information on PPE pledged as security by the Company. Additionally, non funded working capital facilities from banks amounting to 37.80 Crores (Previous year: 58.50 Crores) are secured by hypothecation of Captive Power Plant (CPP) and HFC134A plant situated at Dahej in the state of Gujarat.
(v) Refer to note 41 (c) for additions / adjustments on account of exchange difference during the year.
(vi) The Company accounts for all capitalisation of property, plant and equipment through capital work in progress and, therefore, the movement in capital work-in-progress is the difference between closing and opening balance of capital work-in-progress as adjusted by additions in property, plant and equipment and intangible assets.
(vii) Disposals during the current year include property, plant and equipment classified as assets held for sale. Refer note 40 below.

204

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

3 GOODWILL

Cost
Balance at March 31, 2020		0.62
Additions		-
Disposals		-
Balance at March 31, 2021		0.62
Additions		-
Disposals		-
Balance at March 31, 2022		0.62
Accumulated Impairment losses
Balance at March 31, 2020		-
Additions		-
Balance at March 31, 2021		-
Additions(Refer to note 40)		0.62
Balance at March 31, 2022		0.62

Carrying Amount	As at March 31, 2022	As at March 31, 2021
Industrialyarn unit	-	0.62
	-	0.62

The Company had allocated goodwill to the above mentioned cash generating unit and determined recoverable amount of this allocated goodwill using cash flow projections based on financial budget as approved by the directors of the Company.

4 OTHER INTANGIBLE ASSETS

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Particulars Trade Marks/ Technical Software Others Total
Brands Knowhow
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Cost
Balance at March 31, 2020	77.53	55.19	30.75	19.39	182.86
Additions / adjustments	-	-	0.64	-	0.64
Disposals	-	-	-	-	-
Balance at March 31, 2021	77.53	55.19	31.39	19.39	183.50
Additions / adjustments	-	-	5.21	-	5.21
Disposals	(4.28)	-	(6.29)	-	(10.57)
Balance at March 31, 2022	73.25	55.19	30.31	19.39	178.14
Accumulated amortisation
Balance at March 31, 2020	16.76	5.95	25.19	18.50	66.40
Amortisation expenses	2.45	1.70	3.02	0.05	7.22
Disposals	-	-	-	-	-
Balance at March 31, 2021	19.21	7.65	28.21	18.55	73.62
Amortisation expenses	2.45	1.70	2.76	0.05	6.96
Disposals	(4.28)	-	(6.29)	-	(10.57)
Balance at March 31, 2022	17.38	9.35	24.68	18.60	70.01

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Particulars Trade Marks/ Technical Software Others Total
Brands Knowhow
----- End of picture text -----

Carrying Amount
Balance at March 31, 2020	60.77	49.24	5.56	0.89	116.46
Additions / adjustments	-	-	0.64	-	0.64
Disposals	-	-	-	-	-
Amortisation expenses	(2.45)	(1.70)	(3.02)	(0.05)	(7.22)
Balance at March 31, 2021	58.32	47.54	3.18	0.84	109.88
Additions / adjustments	-	-	5.21	-	5.21
Disposals	-	-	-	-	-
Amortisation expenses	(2.45)	(1.70)	(2.76)	(0.05)	(6.96)
Balance at March 31, 2022	55.87	45.84	5.63	0.79	108.13

5 INVESTMENTS

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As at As at
March 31, 2022 March 31, 2021
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Non-current
Investment in equity instruments
Subsidiary companies	88.66	83.60
Others	4.16	4.16
	92.82	87.76
Aggregate book value of unquoted investments	92.82	87.76
Aggregate amount of impairment in value of investments	4.34	4.34
Current
Investment in mutual funds	121.86	197.16
Investment in debentures / bonds	194.88	215.36
	316.74	412.52
Aggregate book value and market value of unquoted investments	121.86	197.16
Aggregate book value and market value of quoted investments	194.88	215.36

5.1 Investment in subsidiaries (at cost)

	As at March 31, 2022 As at March 31, 2021
	Number Amount Number Amount
Unquoted investments (Non-current) Equity shares of`10 each fully paid up of SRF Holiday<br>Home Limited (A wholly owned subsidiary)<br>4,000,000<br>4.004,000,000<br>4.00<br>Equity shares of Euro 100 each fully paid up of SRF<br>Global BV (A wholly owned subsidiary)<br>128,920<br>79.60<br>128,920<br>79.60<br>Equity shares of`10 each fully paid up of SRF Altech Limited (A wholly owned subsidiary) 5,000,000 5.00 - - Contribution in SRF Employees Welfare Trust (Controlled trust) - 0.06 - *
88.66 83.60

Amount in absolute: ` 60,000

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

5.2 Other equity instruments (at fair value through other comprehensive income)

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As at March 31, 2022 As at March 31, 2021
Number Amount Number Amount
Unquoted investments (Non-current)
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Unquoted investments (Non-current)	Number	Amount	Number	Amount
Equity shares of`10 each fully paid up of Malanpur	4,221,535	4.22	4,221,535	4.22
Captive Power Limited
Less: Impairment in value of investment		(4.22)		(4.22)
Equity shares of`10 each fully paid up of Vaayu	50,000	0.05	50,000	0.05
Renewable Energy (Tapti) Private Limited
Equity shares of`10 each fully paid up of Suryadev	1,354,000	4.11	1,354,000	4.11
Alloys & Power Private Limited
Equity shares of`10 each fully paid up of Sanghi	670,000	0.12	670,000	0.12
Spinners India Limited
Less: Impairment in value of investment		(0.12)		(0.12)
		4.16		4.16

5.3 Investment in mutual funds (at fair value through profit and loss)

	As at March 31, 2022 As at March 31, 2021
	Number Amount Number Amount
Unquoted investments (Current) ICICI Prudential P1543 Saving Fund-Growth Plan Axis Overnight Fund- Regular Growth Plan SBI Liquid Fund L72SG Regular Growth Plan	3,612,365 121.863,612,365 117.16 - - 276,009 30.00 - - 156,109 50.00
	121.86 197.16

5.4 Investment in debentures / bonds (at fair value through profit and loss)

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As at March 31, 2022 As at March 31, 2021
Number Amount Number Amount
Quoted investments (Current)
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Quoted investments (Current)
Bonds
9.56% State Bank of India Perpetual Bonds 2023 of	500	52.33	500	52.25
`10,00,000 each
8.99% Bank of Baroda Perpetual Bonds 2024 of	550	56.92	500	51.02
`10,00,000 each
8.85% HDFC Bank Limited Perpetual Bonds 2022 of	500	50.08	500	51.00
`10,00,000 each
8.50% State Bank of India Perpetual Bonds 2024 of	248	25.40	-	-
`10,00,000 each
8.50% State Bank of India Perpetual Bonds 2025 of	50	5.11	-	-
`10,00,000 each
Debentures
Non convertible debentures of Shriram Transport	-	-	250	32.10
Finance Company Limited 2021 of`10,00,000 each
7.35% non convertible debentures of NIIF	-	-	250	25.43
Infrastructure Finance Limited of`10,00,000 each
Non convertible debentures of Tata Capital Financial	-	-	30	3.56
Services Limited of`10,00,000 each
9.50% non convertible debentures of Piramal Capital	63	5.04	-	-
& Housing Finance Limited 2022 of`8,00,000 each
		194.88		215.36

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

6 LOANS

(unsecured and considered good, unless otherwise stated)

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As at As at
March 31, 2022 March 31, 2021
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Non- current
Loans to subsidiary (Refer note 41 (d))	395.33	336.14
Loans to employees	14.72	10.56
	410.05	346.70
Current
Loans to subsidiary (Refer note 41 (d))	170.39	274.31
Loans to employees	8.03	7.17
Others (other than related parties)
Credit impaired	2.74	2.74
Less : Provision for credit impaired loans	(2.74)	(2.74)
	178.42	281.48

7 OTHER FINANCIAL ASSETS

(unsecured and considered good, unless otherwise stated)

	As at March 31, 2022	As at March 31, 2021
Non-Current
Derivatives carried at fair value through other comprehensive income
- Forward exchange contracts used for hedging	60.65	28.84
- Interest rate swaps used for hedging	0.36	-
Other fnancial assets carried at amortised cost
- Government grants and claims recoverable	15.86	15.86
- Deposit accounts with maturity beyond twelve months	30.00	-
- Security deposits
Related parties (Refer note 32)	3.55	3.56
Other than relatedparties	30.11	32.35
	140.53	80.61
Current
Derivatives carried at fair value through proft and loss
- Forward exchange contracts used for hedging	3.64	4.39
Derivatives carried at fair value through other comprehensive income
- Forward exchange contracts used for hedging	60.52	45.91
- Interest rate swaps used for hedging	3.16	1.01
Other fnancial assets carried at amortised cost
- Insurance claim recoverable	1.06	0.33
- Government grants and claims recoverable	135.07	154.11
- Security deposits
Other than related parties	1.26	2.19
- Others	21.80	9.70
	226.51	217.64

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

8 OTHER ASSETS

(unsecured and considered good, unless otherwise stated)

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As at As at
March 31, 2022 March 31, 2021
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Non-Current
Capital advances	188.60	158.56
Prepaid expenses	0.71	0.25
CENVAT/ Service tax/ Goods and Services Tax/ Sales tax recoverable	18.05	14.43
Claims recoverable under Post EPCG scheme and others	0.12	0.12
	207.48	173.36
Current
Prepaid expenses	14.50	9.13
CENVAT/ Service tax/ Goods and Services tax/ Sales tax recoverable	41.88	67.71
Export incentives recoverable	16.21	32.76
Deposits with customs and excise authorities	15.35	17.41
Advance to suppliers	90.78	87.82
Others	1.24	1.81
	179.96	216.64

9 INVENTORIES

(Valued at lower of cost and net realisable value)

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As at As at
March 31, 2022 March 31, 2021
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Raw material (including packing material)	855.01	597.10
Stock in progress	189.36	148.97
Finished goods	432.51	284.77
Stores and spares (including fuel)	267.95	254.93
Tradedgoods	6.05	0.93
	1,750.88	1,286.70
Goods-in-transit included above :
Raw material (including packing material)	239.65	220.11
Finished goods	119.92	78.82
Stores and spares (including fuel)	2.50	1.06
Tradedgoods	4.83	0.33
	366.90	300.32

Notes

(i) The cost of inventories recognised as an expense includes 3.18 Crores (Previous year: 10.35 Crores) in respect of write-downs of inventory to net realisable value.
(ii) Refer Note 15.1 for information on inventories pledged as security by the Company.

(iii) The method of valuation of inventories has been stated in note 1.B.12

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

10 TRADE RECEIVABLES

	As at March 31, 2022	As at March 31, 2021
Unsecured, considered good	1,350.99	1,012.00
Unsecured, credit impaired	2.28	3.96
Less: Provision for credit impaired receivables	(2.28)	(3.96)
	1,350.99	1,012.00

Notes

(i) The credit period generally allowed on sales varies, on a case to case basis, and from business to business and is based on market conditions. Generally credit period allowed is upto 120 days.
(ii) Ageing of receivables :

Outstanding for following periods from due date of payment	As at March 31, 2022
	Undisputed trade receivables - considered good Undisputed trade receivables - credit impared Disputed trade receivables - considered good Disputed trade receivables - credit impaired Total
Not due Less than 6 months 6 months - 1 year 1 - 2 years 2 - 3 years More than 3years	1,173.69 - - - 1,173.69 177.30 - - - 177.30 - 0.01 - - 0.01 - 1.06 - - 1.06 - - - - - - 1.21 - - 1.21
	1,350.99 2.28 - - 1,353.27

Outstanding for following periods from due date of payment	As at March 31, 2021
	Undisputed trade receivables - considered good Undisputed trade receivables - credit impared Disputed trade receivables - considered good Disputed trade receivables - credit impaired Total
Not due Less than 6 months 6 months - 1 year 1 - 2 years 2 - 3 years More than 3years	887.68 - - - 887.68 123.04 0.01 - - 123.05 0.60 0.08 - - 0.68 - 3.30 - - 3.30 - - - - - 0.68 0.57 - - 1.25
	1,012.00 3.96 - - 1,015.96

(iii) The Company has entered into receivables purchase agreements with banks to unconditionally and irrevocably sell, transfer, assign and convey all the rights, titles and interest of the Company in the receivables as identified. Receivables sold as on March 31, 2022 are of 714.62 Crores (Previous year: 343.46 Crores). The Company has derecognized these receivables as it has transferred its contractual rights to the banks with substantially all the risks and rewards of ownership and retains no control over these receivables as the banks have the right to further sell and transfer these receivables with notice to the Company.
(iv) During the previous year the Company had sold, with recourse, trade receivables amounting to ` 47.15 Crores to a bank for cash proceeds. These trade receivables were not derecognised because the Company retained substantially all of the risks and rewards, primarily credit risk. The amounts received on such transfer were recognised as a secured bank loan (refer note 15).
(v) No customer represents more than 10% (Previous year: Nil) of the total balances of trade receivables.

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

(vi) Refer Note 15.1 for information on trade receivables pledged as security by the Company.

11 CASH AND CASH EQUIVALENTS

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As at As at
March 31, 2022 March 31, 2021
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Balances with banks
Current accounts	97.94	73.15
Exchange earners foreign currency (EEFC) accounts	20.98	12.82
Deposit accounts with maturity of three months or less *	200.00	-
Cash on hand	0.72	0.75
	319.64	86.72

Refer to note 15.

12 BANK BALANCES OTHER THAN ABOVE

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As at As at
March 31, 2022 March 31, 2021
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Earmarked balances
- Margin money	1.95	1.95
- Unclaimed dividend accounts	6.72	6.57
Other deposit accounts
- Deposit accounts with maturity beyond three months	0.20	135.19
upto twelve months
	8.87	143.71

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

13.1 Fully paid equity shares

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Number of shares Amount
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Balance at March 31, 2020	57,480,500	57.48
Add: Movement during the year *	1,764,705	1.76
Balance at March 31, 2021	59,245,205	59.24
Add : Movement during the year ^	237,175,820	237.18
(alsorefer note 34on "Employee ShareBasedPayments")
Balance at March 31, 2022	296,421,025	296.42

There are no buy back of equity shares during the period of five years immediately preceding the reporting date.

Bonus shares issued during the five years preceding the reporting date

^ During the current year, the Company has issued and allotted 236,980,820 fully paid up Bonus Equity shares of ` 10 each in the ratio of 4:1 (i.e. 4 Bonus Equity shares for every 1 existing equity share of the Company) to the shareholders who held shares on October 14, 2021 (Record date).

During the year ended March 31, 2021, the Company had issued 1,764,705 fully paid up equity shares equivalent to 3.07% of the existing paid up equity capital of the Company to Qualified Institutional Buyers in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. These shares were issued at an issue price of 4,250 per share (including securities premium of 4,240 per share) for an aggregate consideration of 750 Crores. The proceeds (net of share issue expenses of 11.99 Crores charged off against securities premium) were utilised for repayment of borrowings.

Terms/ rights attached to equity shares :

13 SHARE CAPITAL

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As at As at
March 31, 2022 March 31, 2021
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Authorised share capital:
320,000,000 (Previous Year - 120,000,000) Equity shares of	320.00	120.00
`10 each
1,000,000 (Previous Year - 1,000,000) Preference shares of	10.00	10.00
`100 each
1,200,000 (Previous Year - 1,200,000) Cumulative Preference	6.00	6.00
shares of`50 each
Nil (Previous Year - 20,000,000) Cumulative Preference shares	-	200.00
of`100 each
	336.00	336.00
Issued share capital:
300,477,780(Previous Year - 63,301,960)EquityShares of`10 each	300.48	63.30
Subscribed capital:
296,421,025 (Previous Year - 59,245,205) Equity Shares of`10	296.42	59.24
each fully paid up
Add: Forfeited shares - Amount originally paid up	1.02	1.02
	297.44	60.26

The Company has only one class of equity shares having a par value of ` 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board may from time to time pay to the members such interim dividends as appear to it to be justified by the profits of the Company.

During the year ended March 31, 2022, first interim dividend of 12 per share (before issue of bonus shares) and second interim dividend of 4.75 per share (post issue of bonus shares) were recognised as distributions to equity shareholders, aggregating 211.89 Crores (Previous year: 24 per share before issue of bonus shares, aggregating ` 141.31 Crores).

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

13.2 Details of equity shares held by the holding company

	Number of fully paid ordinary shares
As at March 31, 2022
KAMA Holdings Limited, the Holding Company	150,245,000
As at March 31, 2021
KAMA HoldingsLimited, theHolding Company	30,049,000

212 Annual Report 2021-22

213

Annual Report 2021-22

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

13.3 Details of eqiuty shares held by promoters:

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Promoter name Number of fully % holding in that % change
paid equity shares class of shares during the year
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As at March 31, 2022
1. Arun Bharat Ram	137,500	0.05%	400.00%*
2. KAMA Holdings Limited	150,245,000	50.69%	400.00%*
As at March 31, 2021
1. Arun Bharat Ram	27,500	0.05%	-
2. KAMA Holdings Limited	30,049,000	50.72%	-

Also refer to note 13.1 above.

13.4 Details of equity shares held by each shareholder holding more than 5% shares:

Class of shares / Name of shareholder	As at March 31, 2022 As at March 31, 2021
	Number of shares held % holding in that class of shares Number of shares held % holding in that class of shares
Fully paid equity shares 1. KAMA Holdings Limited 2. Amansa HoldingPrivate Limited	150,245,000 50.69% 30,049,000 50.72% 11,361,408 3.83% 3,373,411 5.69%

14 OTHER EQUITY

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As at As at
March 31, 2022 March 31, 2021
----- End of picture text -----

General reserve	648.54	648.54
Retained earnings	5,841.95	4,551.58
Cash fow hedging reserve	34.49	7.53
Capital redemption reserve	10.48	10.48
Capital reserve	219.19	219.19
Debenture redemption reserve	62.50	62.50
Employee share based payment reserve	3.22	2.54
Reserve for equity instruments through other comprehensive income	(4.22)	(4.22)
Securities premium	509.56	736.25
Cost of hedgingreserve	1.65	0.62
	7,327.36	6,235.01

14.1 General reserve

	As at March 31, 2022	As at March 31, 2021
Balance at beginning of year	648.54	573.54
Increase/ (decrease)duringtheyear	-	75.00
Balance at end ofyear	648.54	648.54

The general reserve is created from time to time on transfer of profits from retained earnings. General reserve is created by transfer from one component of equity to another and is not an item of other comprehensive income. Items included in general reserve will not be reclassified subsequently to profit and loss.

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

14.2 Retained earnings

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As at As at
March 31, 2022 March 31, 2021
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Balance at beginning of year	4,551.58	3,828.76
Proft for the year	1,507.01	925.06
Other comprehensive income arising from remeasurement of	(4.75)	1.57
defned beneft obligation * (Refer note 33.2 (iv))
Payment of dividend on equity shares	(211.89)	(141.31)
Transfer to debenture redemption reserve	-	(62.50)
Balance at end ofyear	5,841.95	4,551.58

The amount that can be distributed as dividend by the Company to its equity shareholders is determined based on the financial statements of the Company and also considering the requirements of the Companies Act, 2013.

net of income tax of 2.55 Crores (Previous year: (0.84) Crore)

14.3 Cash flow hedging reserve

(Refer note 38.3.1 (C))

	As at March 31, 2022	As at March 31, 2021
Balance at beginning of year	7.53	(78.56)
Recognised / (released) during the year	39.99	132.33
Income tax related to above	(13.03)	(46.24)
Balance at end ofyear	34.49	7.53

The Cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. The cumulative gain or loss arising on changes in the fair value of the designated portion of the hedging instruments that are recognised and accumulated under the heading of cash flow hedging reserve will be reclassified to profit or loss only when the hedged transaction affects the profit or loss, or included as a basis adjustment to the non-financial hedged item.

14.4 Capital redemption reserve

	As at March 31, 2022	As at March 31, 2021
Balance at beginning of year	10.48	10.48
Increase/ (decrease)duringtheyear	-	-
Balance at end ofyear	10.48	10.48

Capital Redemption Reserve is a statutory, non-distributable reserve into which amounts are transferred following the redemption or purchase of a company’s own shares. The reserve is utilised in accordance with the provisions of the Act.

214

Annual Report 2021-22 215

Annual Report 2021-22

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

14.5 Capital reserve

	As at March 31, 2022	As at March 31, 2021
Balance at beginning of year	219.19	219.19
Increase/ (decrease)duringtheyear	-	-
Balance at end ofyear	219.19	219.19

Capital reserve represents amounts received pursuant to Montreal Protocol Phaseout Programme of refrigerant gases.

14.6 Debenture redemption reserve

	As at March 31, 2022	As at March 31, 2021
Balance at beginning of year	62.50	75.00
Transfer from retained earnings	-	62.50
Transfer togeneral reserve	-	(75.00)
Balance at end ofyear	62.50	62.50

The Company has issued non-convertible debentures. The Company has created debenture redemption reserve out of the profits available for payment of dividend.

14.7 Employee share based payment reserve

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As at As at
March 31, 2022 March 31, 2021
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Balance at beginning of year	2.54	1.56
Increase / (decrease) during the year	10.91	0.98
Released on vesting of shares issued under employee share	(10.23)	-
purchase scheme
Balance at end ofyear	3.22	2.54

The Company has allotted equity shares to certain employees under an employee share purchase scheme. The employee share based payment reserve is used to recognise the value of equity settled share based payments provided to such employees as part of their remuneration. Refer note 34 for further details of the scheme.

14.8 Reserve for equity instruments through other comprehensive income

	As at March 31, 2022	As at March 31, 2021
Balance at beginning of year	(4.22)	(4.22)
Net fair valuegain on investment in equityinstruments at FVTOCI	-	-
Balance at end ofyear	(4.22)	(4.22)

This reserves represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, net of amount reclassified to retained earnings when those assets have been disposed of.

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

14.9 Securities premium

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As at As at
March 31, 2022 March 31, 2021
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Balance at beginning of year	736.25	-
Recognised on issue of equity shares	-	736.25
Utilisation on issue of bonus equity shares	(236.98)	-
Recognised on vesting of shares issued under employee share	10.29	-
purchase scheme
Balance at end ofyear	509.56	736.25

Securities premium represents the amount received in excess of the face value upon issue of equity shares. The same may be, inter-alia, utilised for issue of fully paid bonus shares or for buy-back of equity shares by the Company, in accordance with the provisions of the Act. During the previous year, expenses amounting to ` 11.99 Crores incurred on issue of equity shares under Qualified Institutional Placement have been charged off against securities premium (Refer note 13.1).

14.10 Cost of hedging reserve

(Refer note 38.3.1 (C))

	As at March 31, 2022	As at March 31, 2021
Balance at beginning of year	0.62	-
Recognised / (released) during the year	1.48	0.95
Income tax related to above	(0.45)	(0.33)
Balance at end ofyear	1.65	0.62

The cost of hedging reserve reflects gain or loss on the portion excluded from the designated hedging instrument that relates to the forward element of forward contracts. It is initially recognised in other comprehensive income and accounted for similarly to gains or losses in the cash flow hedging reserve.

15 BORROWINGS

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As at As at
March 31, 2022 March 31, 2021
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Non-current
Secured
2,500 Nos. (Previous year: 2,500 Nos.), Three Months T Bill plus	250.00	250.00
188 bps, listed, secured, redeemable, non-convertible debentures
of`10 lakhs each* (Refer note 15.1.1)
Term Loans from banks* ^ (Refer note 15.1.2)	1,461.15	1,387.81
Term Loans from others* (Refer note 15.1.3)	141.07	175.01
Less: Current maturities of long-term borrowings*	(662.49)	(390.58)
	1,189.73	1,422.24

Above amount of borrowings are net of upfront fees paid 2.39 Crores (Previous year: 2.84 Crores).

^ Out of a term loan of 227.91 Crores obtained towards the end of the current year, unutilised balance of 200 Crores as on March 31, 2022 has been temporarily invested in fixed deposit with a bank. There was no such loan / amount in previous year.

216 Annual Report 2021-22

Annual Report 2021-22 217

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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----- Start of picture text -----

As at As at
March 31, 2022 March 31, 2021
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Current
Secured
Loans repayable on demand from banks (Refer note 15.1.4.(i))	158.30	233.38
Bills discounted with banks (Refer note 15.1.4.(ii))	-	47.15
Current maturities of long-term borrowings	662.49	390.58
	820.79	671.11
Unsecured
Loans repayable on demand from banks	464.38	381.73
Commercialpapers from banks and others #	300.00	100.00
	764.38	481.73
	1,585.17	1,152.84

Maximum amount due during the year is `500.00 Crores (Previous year:` 600.00 Crores)

The quarterly returns or statements of current assets filed by the Company with the banks are in agreement with the books of account of the Company.

There have been no defaults in repayment of principal and interest on borrowings during the reporting periods.

15.1 Details of security of the secured loans:

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Details of Loan As at As at Security
March 31, March 31,
2022 [#] 2021 [#]
----- End of picture text -----

1	2,500 (Previous Year : 2,500),	250.00	250.00 Debentures are secured by hypothecation of
	Three Months T-Bill plus 188 bps,		Company’s moveable properties, both present and
	Listed, Secured, Redeemable, Non-Convertible Debentures of the face value of`10 lakhs each * Terms and conditions a) Redeemable at face value in one single installment at the end of 2nd year from the		future, situated at Manali, Viralimalai (other than moveable assets of Coated Fabrics Business) and Gummidipoondi in the State of Tamil Nadu, Jhiwana in the State of Rajasthan, Malanpur and Special Economic Zone, Indore in the State of Madhya Pradesh, Kashipur in the State of Uttarakhand
	date of allotment.		(other than moveable assets of Laminated Fabrics
	b) Coupon is payable on a		Business) and Dahej in the State of Gujarat (excluding
	quarterly basis every year.		certain assets).
2	(i) Term loan from Banks *	1,463.21	1,390.07Moveable property

(a)(i) Out of the loans as at 2(i), loans aggregating to 1,008.83 Crores (Previous Year – 1,099.30 Crores) are secured by hypothecation of Company’s moveable properties, both present and future, situated at Manali, Viralimalai (other than moveable assets of Coated Fabrics Business) and Gummidipoondi in the State of Tamil Nadu, Jhiwana in the State of Rajasthan, Malanpur and Special Economic Zone, Indore in the State of Madhya Pradesh and Kashipur (other than moveable assets of Laminated Fabrics Business) in the State of Uttarakhand and Dahej in the State of Gujarat (save and except certain assets).

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Details of Loan As at As at Security
March 31, March 31,
2022 [#] 2021 [#]
----- End of picture text -----

(a)(ii) Out of the loans as at 2(i), loans aggregating to 454.38 Crores (Previous Year – 290.77 Crores) are in the process of being secured by hypothecation of Company’s moveable properties, both present and future, situated at Manali, Viralimalai(other than moveable assets of Coated Fabrics Business) and Gummidipoondi in the State of Tamil Nadu, Jhiwana in the State of Rajasthan, Malanpur and Special Economic Zone, Indore in the State of Madhya Pradesh and Kashipur (other than moveable assets of Laminated Fabrics Business) in the State of Uttarakhand and Dahej in the State of Gujarat (save and except certain assets).

Immoveable property

(b)(i) Out of the loans as at 2(i) loans aggregating to 516.71 Crores (Previous Year – 849.30 Crores) are secured by equitable Mortgage of Company’s immoveable properties, both present and future, situated at Viralimalai, Gummidipoondi (freehold land) in the State of Tamil Nadu and Kashipur in the State of Uttarakhand.

(b)(ii) Out of the loans as at 2(b)(i)) loans aggregating to 289.09 Crores (Previous Year – 400.99 Crores) are additionally secured by equitable Mortgage of Company’s immoveable properties, both present and future, situated at Jhiwana in the State of Rajasthan.

(b)(iii) Out of the loans as at 2(i), the term loans aggregating to Nil (Previous Year – 38.50 Crores) are to be further secured by equitable mortgage of Company’s immoveable properties, both present and future, situated at Jhiwana in the State of Rajasthan.

3 Term loans from others 141.40 175.59 Secured by the hypothecation and equitable mortgage of Company’s moveable and immoveable properties at Dhar in the State of Madhya Pradesh.
4 (i) Loans repayable on 158.30 233.38 Secured by hypothecation of stocks, stores and book demand from banks debts (current assets), both present and future at Manali, Viralimalai (other than current assets of Coated Fabrics Business) and Gummidipoondi in the State of Tamil Nadu, Jhiwana in the State of Rajasthan, Malanpur and Indore in the State of Madhya Pradesh and Kashipur (other than current assets of Laminated Fabrics Business) in the State of Uttarakhand.
(ii) Bills discounted with banks 47.15 Secured against certain trade receivables of the Company. (Also refer note 10(iv))
Such hypothecation in respect of Non convertible debentures mentioned in point no. 1 and hypothecation and equitable mortgage mentioned in point no. 2 rank pari-passu inter se between term loans from banks / Non convertible debentures (both current year and previous year).

Gross of upfront fees paid `2.39 Crores (Previous year :` 2.84 Crores)

218 Annual Report 2021-22

Annual Report 2021-22 219

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

15.2 Terms of loans

As at March 31, 2022

NON CURRENT BORROWINGS

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Loan Category Frequency of Interest rate Up to Up to Up to From
principal March 31, March 31, March 31, 2025 to
repayments 2023 2024 2025 2027
----- End of picture text -----

R e d e e m a b l e	Redeemable at face	Floating rate at 5.63%	250.00	-	-	-
Non-Convertible	value on maturity
Debentures
Term loan from	Quarterly payments	Ranging from 0.94%	334.19	270.02	205.28	122.54
banks		to 5.85%
	Half yeary payments	Fixed rate of 1.23%	24.08	24.08	240.82	-
	Bullet	Ranging from 1.18%	15.00	-	227.19	-
		to 6.65%
Term loan from	Half yeary payments	Floating rate at 1.46%	40.38	40.38	40.38	20.27
others
			663.65	334.48	713.67	142.81

Amounts mentioned above are gross of upfront fees paid of ` 2.39 Crores.

CURRENT BORROWINGS

Short term borrowings are either payable in installments within one year or repayable on demand. For short term borrowings, interest rate ranges from 0.26% to 4.05%.

As at March 31, 2021

NON CURRENT BORROWINGS

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Loan Category Frequency of Interest rate Up to Up to Up to From
principal March 31, March 31, March 31, 2024 to
repayments 2022 2023 2024 2027
----- End of picture text -----

Redeemable Non-	Redeemable at face	Floating rate at 5.23%	-	250.00	-	-
Convertible Debentures	value on maturity
Term loan from banks	Quarterly payments	Ranging from 0.71%	331.38	321.67	217.49	169.26
		to 6.25%
	Half yeary payments	Ranging from 1.23%	17.63	55.76	23.26	232.62
		to 7.85%
	Yearly payments	Floating rate at 7.25%	4.00	1.00	1.00	-
	Bullet	Fixed rate of 6.65%	-	15.00	-	-
Term loan from others	Half yeary payments	Floating rate at 2.01%	39.00	39.00	39.00	58.58
			392.01	682.43	280.75	460.46

Amounts mentioned above are gross of upfront fees paid of ` 2.84 Crores.

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Terms of repayment

1) Reedemable non convertible debenture of 250 Crores is repayable in one bullet instalment in September 2022 (Previous year: 250 Crores repayable in one bullet instalment in September 2022).
2) Rupee term loan from bank of 38.50 Crores was prepaid in current year in October 2021 (Previous year: 38.50 Crores repayable in 3 half yearly instalments from August 2021).
3) Rupee term loan from bank of 8.22 Crores is repayable in 2 quarterly instalments from June 2022 (Previous year: 24.66 Crores repayable in 6 quarterly instalments from June 2021).
4) Rupee term loan from bank of 6.00 Crores was prepaid in current year in October 2021 (Previous year: 6.00 Crores repayable in 3 annual instalments from December 2021).
5) Rupee term loan from bank of 203.13 Crores is repayable in 13 quarterly instalments from April 2022 (Previous year: 250.00 Crores repayable in 16 quarterly instalments from July 2021).
6) Foreign currency term loan from bank of 23.67 Crores is repayable in 1 quarterly instalment in June 2022 (Previous year: 114.30 Crores repayable in 5 quarterly instalments from June 2021).
7) Foreign currency term loan from bank of 265.87 Crores is repayable in 12 quarterly instalments from May 2022 (Previous year: 361.33 Crores repayable in 16 quarterly instalments from May 2021).
8) Foreign currency term loan from bank of 94.66 Crores is repayable in 7 quarterly instalments from April 2022 (Previous year: 143.69 Crores repayable in 11 quarterly instalments from April 2021).
9) Foreign currency term loan from others of 141.40 Crores is repayable in 7 half yearly instalments from April 2022 (Previous year: 175.59 Crores repayable in 9 half yearly instalments from April 2021).
10) Foreign currency term loan from bank of 15.00 Crores is repayable in one bullet instalment in June 2022 (Previous year: 15.00 Crores is repayable in one bullet instalment in June 2022).
11) Foreign currency term loan from bank of 109.29 Crores is repayable in 5 quarterly instalments from April 2022 (Previous year: 145.82 Crores repayable in 12 quarterly instalments from April 2021).
12) Foreign currency term loan from bank of 288.99 Crores is repayable in 4 half yearly instalments from September 2022 and then 12 monthly instalments from April 2024 onwards (Previous year: 290.77 Crores repayable in 5 half yearly instalments from March 2022 and then 12 monthly instalments from April 2024 onwards).
13) Foreign currency term loan from bank of ` 227.19 Crores is repayable in one bullet instalment in March 2025 (Previous year: Nil).
14) Foreign currency term loan from bank of ` 227.19 Crores is repayable in 17 quarterly instalments from March 2023 (Previous year: Nil).

CURRENT BORROWINGS

Short term borrowings are either payable in installments within one year or repayable on demand. For short term borrowings, interest rate ranges from 0.32% to 4.73%.

220 Annual Report 2021-22

Annual Report 2021-22 221

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

16 PROVISIONS

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As at As at
March 31, 2022 March 31, 2021
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Non-Current
Provision for employee benefts
Provision for compensated absences (Refer note 33.3)	44.69	38.06
Provision for retentionpay (Refer note 33.3)	0.17	0.17
	44.86	38.23
Current
Provision for employee benefts
Provision for compensated absences(Refer note 33.3)	5.42	7.00
	5.42	7.00

17 DEFERRED TAX (NET)

The following is the analysis of deferred tax assets / (liabilities) presented in balance sheet

	As at March 31, 2022	As at March 31, 2021
Deferred tax assets	79.54	293.83
Deferred tax liabilities	(692.58)	(620.29)
Deferred tax liabilities, net	(613.04)	(326.46)

The major components of deferred tax assets / (liabilities) arising on account of temporary differences are as follows:

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----- Start of picture text -----

2021-22 Opening Recognised Recognised MAT Credit Closing
balance in statement in other Entitlement balance
of profit comprehensive utilised
and loss income
----- End of picture text -----

Deferred tax assets
Expenses deductible in future years	15.08	2.08	-	-	17.16
Provision for credit impaired	0.99	(0.42)	-	-	0.57
loans / receivables
MAT Credit Entitlement	274.66	25.27	-	(241.48)	58.45
Others	3.10	0.26	-	-	3.36
	293.83	27.19	-	(241.48)	79.54
Deferred tax liabilities
Property, plant and equipment and	(603.82)	(58.07)	-	-	(661.89)
intangible assets
Investment in mutual funds	(10.85)	(1.09)	-	-	(11.94)
Cash fow hedges	(4.27)	-	(13.48)	-	(17.75)
Others	(1.35)	0.35	-	-	(1.00)
	(620.29)	(58.81)	(13.48)	-	(692.58)
Total	(326.46)	(31.62)	(13.48)	(241.48)	(613.04)

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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----- Start of picture text -----

2020-21 Opening Recognised Recognised MAT Credit Closing
balance in statement in other Entitlement balance
of profit comprehensive utilised
and loss income
----- End of picture text -----

Deferred tax assets
Expenses deductible in future years	13.77	1.31	-	-	15.08
Provision for credit impaired	0.61	0.38	-	-	0.99
loans / receivables
MAT Credit Entitlement	367.07	5.38	-	(97.79)	274.66
Cash fow hedges	42.30	-	(42.30)	-	-
Others	4.65	(1.55)	-	-	3.10
	428.40	5.52	(42.30)	(97.79)	293.83
Deferred tax liabilities
Property, plant and equipment and	(538.64)	(65.18)	-	-	(603.82)
intangible assets
Investment in mutual funds	(7.95)	(2.90)	-	-	(10.85)
Cash fow hedges	-	-	(4.27)	-	(4.27)
Others	(6.23)	4.88	-	-	(1.35)
	(552.82)	(63.20)	(4.27)	-	(620.29)
Total	(124.42)	(57.68)	(46.57)	(97.79)	(326.46)

Note:

(i) MAT credit entitlement of 74.02 Crores (Previous year: 74.02 Crores) expiring in the financial year ending March 31, 2035 is not recognised, due to expected timing of exercise of the option under section 115BAA of Income Tax Act, 1961.

18 TRADE PAYABLES

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----- Start of picture text -----

As at As at
March 31, 2022 March 31, 2021
----- End of picture text -----

Total outstanding dues of micro enterprises and small enterprises#
- Acceptances*	3.61	-
- Other than acceptances	52.37	33.37
Total outstanding dues of creditors other than micro enterprises
and small enterprises
- Acceptances*	192.59	107.61
- Other than acceptances	1,091.80	1,055.51
	1,340.37	1,196.49

Refer to note 18.1
Acceptances represent invoices discounted by vendors with banks.

222 Annual Report 2021-22

Annual Report 2021-22 223

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

(i) Ageing of trade payables :

Outstanding for following periods from due date of payment	As at March 31, 2022
	Dues of micro enterprises and small enterprises Dues of creditors other than micro enterprises and small enterprises Disputed dues of micro enterprises and small enterprises Disputed dues of creditors other than micro enterprises and small enterprises Total
Unbilled dues Not due Less than 1 year 1 - 2 years 2 - 3 years More than 3years	- 153.48 - - 153.48 55.98 1,035.16 - - 1,091.14 - 92.55 - - 92.55 - 3.07 - - 3.07 - - - - - - 0.13 - - 0.13
	55.98 1,284.39 - - 1,340.37

Outstanding for following periods from due date of payment	As at March 31, 2021
	Dues of micro enterprises and small enterprises Dues of creditors other than micro enterprises and small enterprises Disputed dues of micro enterprises and small enterprises Disputed dues of creditors other than micro enterprises and small enterprises Total
Unbilled dues Not due Less than 1 year 1 - 2 years 2 - 3 years More than 3years	- 119.16 - - 119.16 33.37 974.85 - - 1,008.22 - 64.93 - - 64.93 - 2.28 - - 2.28 - - - - - - 1.90 - - 1.90
	33.37 1,163.12 - - 1,196.49

18.1 Total outstanding dues of micro enterprises and small enterprises

Trade payables include the following dues to micro and small enterprises covered under “The Micro, Small and Medium Enterprises Development Act, 2006” (MSMED) to the extent such parties have been identified from the available information.

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----- Start of picture text -----

As at As at
March 31, 2022 March 31, 2021
----- End of picture text -----

Amount remaining unpaid to suppliers under MSMED (suppliers)
as at the end of year
- Principal amount**	108.82	52.02
- Interest due thereon	-	-
Amount of payments made to suppliers beyond the appointed day
during the year
- Principal amount	-	-
- Interest actually paid under section 16 of MSMED/ settled	-	-
Amount of interest due and payable for delay in payment (which	-	-
has been paid but beyond the appointed day during the year) but
without adding interest under MSMED

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

	As at March 31, 2022	As at March 31, 2021
Interest accrued and remaining unpaid at the end of the year
- Interest accrued during the year	-	-
- Interest remaining unpaid as at the end of the year	-	-
Interest remaining due and payable even in the succeeding years,	-	-
until such date when the interest dues are actually paid, for the
purpose of disallowance of a deductible expenditure
** including payable to micro enterprises and small enterprises included in other fnancial liabilities (refer note 19).
OTHER FINANCIAL LIABILITIES
	As at March 31, 2022	As at March 31, 2021
Non-Current
Derivatives carried at fair value through other comprehensive income
Interest rate swaps used for hedging	-	0.54
Payables to capital creditors
Total outstanding dues of creditors other than micro enterprises
and small enterprises
- Acceptances*	153.53	-
	153.53	0.54
* Acceptances represent amount payable under letter of credit arrangements with the vendor / banks.
Current
Interest accrued but not due on borrowings	3.70	4.47
Unpaid dividends^	6.72	6.57
Security deposits received	8.15	8.62
Payables to capital creditors
Total outstanding dues of micro enterprises and small enterprises#
- Acceptances*	10.56	-
- Other than acceptances	42.28	18.65
Total outstanding dues of creditors other than micro enterprises and	60.36	27.65
small enterprises
Others	16.38	43.12
	148.15	109.08

19 OTHER FINANCIAL LIABILITIES

Acceptances represent invoices discounted by vendors with banks.

^ Amount will be credited to investor education and protection fund if not claimed within seven years from the date of declaration of dividend.

Refer to note 18.1

224 Annual Report 2021-22

Annual Report 2021-22 225

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

20 TAX ASSETS AND LIABILITIES

	As at March 31, 2022	As at March 31, 2021
Non - Current tax assets
Advance tax(net ofprovision for tax)	21.31	33.74
Current tax liablities
Provision for tax(net of advance tax)	9.75	9.73

21 OTHER LIABILITIES

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----- Start of picture text -----

As at As at
March 31, 2022 March 31, 2021
----- End of picture text -----

Current
Contract liability (Refer note 39)	23.85	13.53
Statutory liabilities	30.78	26.00
Payable to gratuity trust (Refer note 33.2)	11.57	4.52
Otherpayables	41.36	31.74
	107.56	75.79

22 REVENUE FROM OPERATIONS

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

Sale of products
Manufactured goods	9,696.55	6,817.90
Tradedgoods	140.00	69.59
	9,836.55	6,887.49
Other operating revenues
Claims	-	0.52
Export and other incentives	48.42	69.23
Scrap sales	45.92	28.36
Other operatingincome	22.55	2.72
	116.89	100.83
	9,953.44	6,988.32

Reconciliation of revenue from sale of products with the contracted price

	Year ended March 31, 2022	Year ended March 31, 2021
Contracted price	9,920.88	7,017.01
Less: Discounts, allowances and claims	(84.33)	(129.52)
Sale of products	9,836.55	6,887.49

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

23 OTHER INCOME

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

Interest income
- from customers	0.01	0.01
- on loans, deposits and investments	28.85	1.58
- on others	3.33	7.65
Net gain on sale/ discarding of property, plant and equipment	3.09	0.39
Net gain on fnancial assets measured at fair value through proft and loss Net foreign currency exchange fuctuation gains	7.06 71.40	25.45 -
Provision/ liabilities no longer required written back	2.59	11.42
Other non-operatingincome	18.98	16.80
	135.31	63.30

24.1 COST OF MATERIALS CONSUMED

	Year ended March 31, 2022	Year ended March 31, 2021
Opening stock of raw materials	597.10	465.59
Add: Purchases of raw materials	5,006.17	3,410.01
Less: Closingstock of raw materials	855.01	597.10
Cost of materials consumed*	4,748.26	3,278.50

including packing material

24.2 PURCHASES OF STOCK IN TRADE

	Year ended March 31, 2022	Year ended March 31, 2021
Purchase of stock in trade	137.27	60.49
	137.27	60.49
CHANGES IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK IN TRADE
	Year ended March 31, 2022	Year ended March 31, 2021
Inventories at the end of the year :
Stock-in-Process	189.36	148.97
Finished goods	432.51	284.77
Tradedgoods	6.05	0.93
	627.92	434.67
Inventories at the beginning of the year :
Stock-in-Process	148.97	152.85
Finished goods	284.77	251.88
Tradedgoods	0.93	1.73
	434.67	406.46
Net(increase) / decrease	(193.25)	(28.21)

24.3 CHANGES IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK IN TRADE

226 Annual Report 2021-22

Annual Report 2021-22 227

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

25 EMPLOYEE BENEFITS EXPENSE

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

Salaries and wages, including bonus	521.20	444.80
Contribution to provident and other funds	35.98	33.74
Workmen and staf welfare expenses	72.69	54.61
Employee share basedpayment expense(Refer note 34)	28.61	0.98
	658.48	534.13

26 FINANCE COST

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

Interest cost ^
- Non-convertible debentures	13.23	12.27
- Term loans and others	48.07	82.52
- Lease liabilities	8.69	6.49
Other borrowing costs	10.05	9.15
Exchange diferences regarded as an adjustment to borrowingcosts	14.41	0.78
	94.45	111.21

^ pertains to liabilities measured at amortised cost.

27 DEPRECIATION AND AMORTISATION EXPENSE

	Year ended March 31, 2022	Year ended March 31, 2021
Depreciation of property, plant and equipment	387.84	358.32
Depreciation of right-of-use assets	24.43	18.06
Amortisation of intangible assets	6.96	7.22
	419.23	383.60

28 OTHER EXPENSE

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

Stores and spares consumed	63.01	51.79
Power and fuel	984.23	632.06
Labour production	46.08	36.93
Rent*	27.54	15.62
Repairs and maintenance
- Buildings	7.68	5.15
- Plant and machinery	185.34	152.85
- Others	34.33	30.33

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

Insurance	38.37	33.26
Rates and taxes	11.92	8.37
Freight charges	420.82	238.39
Expenditure on corporate social responsibility**	19.06	12.88
Legal and professional charges	35.35	27.39
Travelling and conveyance	7.68	3.89
Directors' sitting fees	0.29	0.27
Selling commission	13.11	18.29
Credit impaired assets provided/ written of	0.76	12.06
Property, plant and equipment provided/ written of ^	11.48	1.37
Auditor remuneration ^^
- Audit fees	0.65	0.65
- For limited review of unaudited fnancial results	0.54	0.54
- For Corporate governance, consolidated fnancial statements and other certifcates	0.07	0.07
- For tax audit	0.08	0.08
- Reimbursement of out of pocket expenses	0.10	0.07
Efuent disposal expenses	120.54	76.18
Net foreign currency exchange fuctuation loss	-	7.21
Miscellaneous expenses	40.24	36.23
	2,069.27	1,401.93

Refer to note 37
** Refer to note 41(f)
^ Including amount of ` 5.75 Crores (Previous year: Nil) recognised on fair valuation of assets classified as held for sale. Also refer to note 40
^^ Excluding fees of ` 0.43 Crore in previous year for QIP related attestation and certification, netted off from securities premium.

29 INCOME TAX RECOGNISED IN PROFIT AND LOSS

Year ended March 31, 2022 Year ended March 31, 2021	Year ended March 31, 2022 Year ended March 31, 2021
Current tax
In relation to current year 616.41	327.21
Adjustment in relation to earlieryears -	0.02
616.41	327.23
Deferred tax
- MAT credit entitlement
In relation to current year -	-
Adjustment in relation to earlieryears (25.27)	(5.38)
(25.27)	(5.38)

228 Annual Report 2021-22

Annual Report 2021-22 229

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

- Others
In relation to current year	48.93	58.71
Adjustment in relation to earlieryears	7.96	4.35
	56.89	63.06
Total tax expense	648.03	384.91

The income tax expenses for the year can be reconciled to the accounting profits as follows:

	Year ended March 31, 2022	Year ended March 31, 2021
Proft before tax	2,155.04	1,309.97
Income Tax Expenses @ 34.944% (Previous year: 34.944%)	753.06	457.76
Efect of deductions (research and development, share issue	(79.28)	(54.59)
expenses and deductions under chapter VI A of Income Tax Act)
Efect of expenses that are not deductible in determining taxable proft	13.15	5.48
Efect of re-measurement of deferred tax balances / lower tax rate on certain temporary diferences pursuant to Section 115BAA	(21.59)	(22.73)
of Income Tax Act
Income tax expenses recognised in statement of proft	665.34	385.92
and loss in relation to current year
Income tax credit recognised in statement of proft and loss in	(17.31)	(1.01)
relation to earlieryears(Refer note(ii)below)
Total Income tax expenses recognised inproft and loss	648.03	384.91

Notes:

(i) The tax rate used for the current year reconciliation above is the corporate tax rate of 34.944% (Previous year: 34.944%) payable by corporate entities in India on taxable profits under the Indian tax law.
(ii) Income tax in relation to earlier years includes tax credit of 15.42 Crores (Previous year: tax expense of 1.62 Crores) which is related to finalization and determination of deduction / allowance claimed for earlier years under Chapter-VIA of the Income-tax Act, 1961, for generation of power from captive power plants which is based on finalization of transfer pricing study / tax audit reports of the previous year.

30 INCOME TAX RECOGNISED IN OTHER COMPREHENSIVE INCOME

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Year ended Year ended
March 31, 2022 March 31, 2021
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Arising on income and expense recognised in other
comprehensive income
Net (gain)/ loss on designated portion of hedging instruments in	(13.03)	(46.24)
cash fow hedges
Cost of Hedging Reserve	(0.45)	(0.33)
Remeasurement of defned beneft obligation	2.55	(0.84)
	(10.93)	(47.41)

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

Bifurcation of the income tax recognised in other
comprehensive income into:
Items that will be reclassifed to proft or loss	(13.48)	(46.57)
Items that will not be reclassifed toproft or loss	2.55	(0.84)
	(10.93)	(47.41)

31 CONTINGENT LIABILITIES AND COMMITMENTS

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----- Start of picture text -----

As at As at
March 31, 2022 March 31, 2021
----- End of picture text -----

Claims against the Company not acknowledged as debts
Goods and services tax, excise duty, custom duty	8.39	23.11
and service tax*
Sales tax and entry tax **	19.17	20.38
Income tax (also refer note b(ii) and b(iii) below) ***	22.26	3.74
Others ****	10.40	13.19

Amount deposited against contingent liability 1.23 Crores (Previous year: 1.79 Crores)

** Amount deposited against contingent liability 6.74 Crores (Previous year: 7.59 Crores)

*** Amount deposited against contingent liability 2.98 Crores (Previous year: 3.09 Crores)

**** Amount deposited against contingent liability 0.42 Crore (Previous year: 0.40 Crore)

**** Includes demand by Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Ltd. (MPPKVV Ltd) of 8.12 Crores (Previous year: 11.40 Crores).

All the above matters are subject to legal proceedings in the ordinary course of business. In the opinion of the management, the legal proceedings, when ultimately concluded, will not have a material effect on the results of the operations or financial position of the Company.

b. (i) The Company has been served with show cause notices regarding certain transactions as to why additional customs / excise duty / service tax / goods and service tax amounting to 18.86 Crores (Previous year: 18.58 Crores) should not be levied. The Company has been advised that the contention of the department is not tenable and hence the show cause notice may not be sustainable.
(ii) The Company has received a notice for assessment year 2018-19 on April 13, 2022 on account of non deduction of TDS on foreign payments involving an amount of ` 14.34 Crores. Based on the facts of the case and the Company’s assessment, the Company is of the view that the proposed adjustments are not likely to sustain.
(iii) Besides the above, the Company has received final assessment orders for assessment years 2017-18 and 2018-19 on April 30,2022 in which adjustments amounting to 277.31 Crores and 323.09 Crores respectively were made on account of transfer pricing adjustments, research and development expenditure and others etc. (in line with earlier years) and a demand of 1.20 Crores and 96.71 Crores respectively has been raised. The Company plans to file rectification application towards certain computation errors and for rest of the issues, appeal will be filed

230 Annual Report 2021-22

231

Annual Report 2021-22

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

before Income Tax Appellate Tribunal. Based on the facts of the case and the management’s assessment, the Company is of the view that the proposed adjustments are not likely to sustain.

c. Guarantees given to banks and others for repayment of financial facilities availed by wholly owned subsidiaries are as below:

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|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|Name of the|Currency|Guarantee amount as at|Loan / payable outstanding against the|
|subsidiary|guarantee as at|
|March 31, 2022|March 31, 2021|March 31, 2022|March 31, 2021|
|In|In||In|In||In|In||In|In||
|Millions|Crores^|Millions|Crores^^|Millions|Crores^|Millions|Crores^^|
|SRF Flexipak South|USD|-|-|46.00|336.49|-|-|3.00|21.95|
|Africa (Pty Limited|USD|8.00|60.58|-|-|-|-|-|-|
|SRF Global BV|EUR|-|-|22.00|188.72|-|-|-|-|
|USD|44.00|333.21|44.00|321.86|11.13|84.29|10.00|73.16|
|SRF Industries|EUR|18.00|151.33|18.00|154.40|18.00|151.33|18.00|154.40|
|(Thailand) Limited|EUR|12.76|107.27|12.76|109.46|5.84|49.10|8.56|73.44|
|USD|17.20|130.26|-|-|15.12|114.50|-|-|
|SRF Europe Kft|EUR|22.00|184.95|22.00|188.72|-|-|-|-|
|(Hungry)|EUR|77.00|647.34|77.00|660.51|64.13|539.14|57.50|493.24|

----- End of picture text -----

^ Converted using closing exchange rate - USD 75.73 and Euro 84.07

^^ Converted using closing exchange rate - USD 73.15 and Euro 85.78

d. The amounts shown above represents the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately or relate to a present obligations that arise from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate cannot be made.
e. Capital and other commitments

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|||||
|---|---|---|---|
|As at|As at|
|March 31, 2022|March 31, 2021|
|(i)|Estimated amount of contracts remaining to be executed on|913.41|690.96|
|capital account and not provided for (net of advances)|

----- End of picture text -----

(ii) The Company has other commitments, for purchases / sales orders which are issued after considering requirements per operating cycle for purchase / sale of goods and services, employee benefits including union agreements in normal course of business. The Company does not have any long term contracts including derivative contracts for which there will be any material foreseeable losses which have not been provided for.
(iii) Export obligation under advance license scheme on duty free import of specific raw materials, remaining outstanding is 721.78 Crores (Previous year: 619.36 Crores).

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

32 RELATED PARTY TRANSACTIONS

32.1 Description of related parties under Ind AS - 24 “Related party disclosures”

Ultimate Holding Entity ABR Family Trust

Key management personnel (KMP) # Arun Bharat Ram ^ Ashish Bharat Ram Kartik Bharat Ram Tejpreet S Chopra Lakshman Lakshminarayan Vellayan Subbiah Meenakshi Gopinath ^^ Pramod Gopaldas Gujarathi Bharti Gupta Ramola Yash Gupta

Holding Company KAMA Holdings Limited

Subsidiaries

SRF Holiday Home Limited SRF Global BV SRF Industries (Thailand) Limited SRF Industex Belting (Pty) Limited SRF Flexipak (South Africa) (Pty) Limited

Puneet Yadu Dalmia

SRF Europe Kft

SRF Employees Welfare Trust (Controlled trust) SRF Altech Limited *

Enterprises over which KMP have significant influence #

SRF Foundation

SRF Welfare Trust BLP Industry AI Private Limited

Fellow subsidiaries #

KAMA Realty (Delhi) Limited Shri Educare Limited SRF Transnational Holding Limited

Relative of KMP #

Sushil Ramola Murugappan Vellayan Subbiah

Post Employment Benefit Plans Trust #

SRF Limited Officers Provident Fund Trust SRF Employees Gratuity Trust SRF Officers Gratuity Trust

Relative of KMP of Holding Company # Nirmala Kothari

Enterprises over which relative of KMP has control #

Murugappa & Sons

KMP of Holding Company #

Ekta Maheshwari

Jagdeep Singh Rikhy **

^ upto March 31, 2022
^^ upto August 31, 2021
from March 15, 2022
** from December 03, 2021
Only with whom the Company had transactions during the year

232

Annual Report 2021-22 233

Annual Report 2021-22

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

32.2 Transactions with related parties

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Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

Sale of goods to:
Subsidiaries	75.33	28.27
Enterprises over which KMP have signifcant infuence	0.04	-
	75.37	28.27
Purchase of goods from:
Subsidiaries	44.18	17.50
	44.18	17.50
Purchase of property, plant & equipment and
intangible assets from:
Subsidiaries	-	15.37
	-	15.37
Sale of property, plant & equipment and intangible assets to:
Subsidiaries	-	1.94
Fellow Subsidiaries	0.19	-
	0.19	1.94
Services rendered to:
Subsidiaries	13.97	8.78
	13.97	8.78
Receiving of Services from:
Enterprises over which KMP have signifcant infuence	0.19	0.07
	0.19	0.07
Rent paid to:
Fellow Subsidiaries	6.60	6.60
Subsidiaries	0.06	0.06
Key management personnel	0.26	0.27
Enterprises over which KMP have signifcant infuence	0.27	0.27
	7.19	7.20
Reimbursement of expenses from:
Holding Company	0.01	0.01
Subsidiaries	1.25	1.50
Fellow Subsidiaries	0.04	0.05
	1.30	1.56
Loan given to:
Subsidiaries	230.20	617.48
	230.20	617.48
Loan received back from:
Subsidiaries	277.41	-
	277.41	-
Interest received from:
Subsidiaries	8.37	0.39
	8.37	0.39

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
Deposits received back from:
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Deposits received back from:
Keymanagementpersonnel	0.01	-
	0.01	-
Contribution for expenditure on corporate
social responsibility:
Enterprises over which KMP have signifcant infuence	21.38	9.18
	21.38	9.18
Investments made in:
Subsidiaries	5.06	*
	5.06	-
* Amount in absolute in previous year`25,000
Contribution to post employment beneft plans: Post Employment Beneft Plans Trust	30.20	35.41
	30.20	35.41
Employee beneft obligations transferred to:
Holding Company	-	0.02
Fellow Subsidiaries	0.20	-
Enterprises over which KMP have signifcant infuence	-	^
	0.20	0.02
^ Amount in absolute in previous year`25,962
Equity dividend paid:
Holding Company	107.43	72.12
Key management personnel	0.15	0.12
Relative of KMP	0.11	0.07
KMP of Holding Company	*	*
Relative of KMP of Holding Company	^	^
Enterprises over which relative of KMP has control	#	#
	107.69	72.31
* Amount in absolute`1,095 (Previous year:`168)
^ Amount in absolute`358 (Previous year:`240)
# Amount in absolute`36,966 (Previous year:`24,618)
Bonus shares issued:
Holding Company (No. of shares: 120,196,000 ;	-	-
Previous year: Nil)
Key management personnel (No. of shares: 178,968 ;	-	-
Previous year: Nil)
Relatives of KMP (No. of shares :110,388 ; Previous year: Nil)	-	-
KMP of Holding Company (No. of shares: 76 ; Previous year: Nil)	-	-
Relatives of KMP of Holding Company (No. of shares: 40;	-	-
Previous year: Nil)

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Year ended Year ended
March 31, 2022 March 31, 2021
Enterprises over which relative of KMP has control (No. - -
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of shares: 4,136;Previousyear: Nil)
	-	-
Guarantees issued / renewed:
Subsidiaries*	190.84	109.46
	190.84	109.46
Guarantees run-down / released:
Subsidiaries*	533.31	879.12
	533.31	879.12

Converted using closing exchange rate - March 31, 2022 : USD 75.73 and EUR 84.07 (Previous year: USD 73.15, EUR 85.78 and THB 2.34).

32.3 Outstanding Balances:

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As at As at
March 31, 2022 March 31, 2021
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Receivables
Subsidiaries	8.82	11.47
Post Employment Beneft Plans Trust	11.48	1.49
	20.30	12.96
Payables
Subsidiaries	5.15	9.03
Post Employment Beneft Plans Trust	13.30	6.02
	18.45	15.05
Interest receivable
Subsidiaries	2.05	0.39
	2.05	0.39
Commission payable
Keymanagementpersonnel	18.90	12.84
	18.90	12.84
Security deposits outstanding
Subsidiaries	0.02	0.02
Fellow Subsidiaries	3.27	3.27
Key management personnel	0.12	0.13
Enterprises over which KMP have signifcant infuence	0.14	0.14
	3.55	3.56
Equity Investment outstanding
Subsidiaries	88.66	83.60
	88.66	83.60

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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As at As at
March 31, 2022 March 31, 2021
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Loans outstanding
Subsidiary	565.72	610.45
	565.72	610.45
Guarantees outstanding
Subsidiaries**	1,614.94	1,960.15
	1,614.94	1,960.15

** Converted using closing exchange rate - March 31, 2022 : USD 75.73 and EUR 84.07 (Previous year: USD 73.15 and EUR 85.78).

32.4 Key management personnel compensation

	Year ended March 31, 2022	Year ended March 31, 2021
Short-term benefts*	34.88	26.21
Post-employment benefts	2.15	1.44
Other long-term benefts	1.19	0.97
	38.22	28.62

*Includes sitting fees and commission paid/ payable to non executive directors

33 EMPLOYEE BENEFITS

33.1 Defined contribution plans:

Amounts recognized in the statement of profit and loss are as under:

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Year ended Year ended
March 31, 2022 March 31, 2021
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Superannuation fund (Refer to note (i) below)	0.59	0.61
Provident fund administered through Regional Provident Fund	15.11	14.02
Commissioner (Refer to note (ii) below)
Employees’ State Insurance Corporation	0.40	0.43
National Pension Scheme	1.71	1.34
	17.81	16.40

The expenses incurred on account of the above defined contribution plans have been included in Note 25 “Employee Benefits Expenses” under the head “Contribution to provident and other funds”.

(i) Superannuation fund

The Company makes contributions to a Trust which in turn contributes to ICICI Prudential Life Insurance Company Limited. Apart from being covered under the Gratuity Plan described below, the employees of the Company also participate in a defined contribution superannuation plan maintained by the Company. The Company has no further obligations under the plan except making annual contributions based on a specified percentage of each covered employee’s salary. From November 1, 2006, the

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STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Company provided an option to the employees to receive the said benefit as cash compensation along with salary in lieu of the superannuation benefit. Thus, no contribution is required to be made for the category of employees who opted to receive the benefit in cash.

(ii) Provident fund administered through Regional Provident Fund Commissioner All employees are entitled to Provident Fund benefits as per the law. For certain category of employees the Company administers the benefits through a recognised Provident Fund Trust. The Company has an obligation to fund any shortfall on the yield of the trust’s investments over the administered interest rates on an annual basis. For other employees contributions are made to the Regional Provident Fund Commissioners. The Government mandates the annual yield to be provided to the employees on their corpus. This plan is considered as a Defined Contribution Plan. For the first category of employees (covered by the Trust), the Company has an obligation to make good the shortfall, if any, between the yield on the investments of the trust and the yield mandated by the Government and these are considered as Defined Benefit Plans and are accounted for on the basis of an actuarial valuation.

33.2 Defined benefit plans

The Company sponsors funded defined benefit plans for qualifying employees. The defined benefit plans are administered by separate funds which are legally separate from the Company. These plans are:

(a) Gratuity
(b) Provident fund for certain category of employees administered through a recognised provident fund trust
(i) These plans typically expose the company to actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Investment Risk

The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Salary Risk

The present value of defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in rate of increase in salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan’s liability.

Interest Risk

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in value of the liability.

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

(ii) The principal assumption used for the purpose of the actuarial valuation were as follows:

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As at March 31, 2022 As at March 31, 2021
Gratuity Provident Fund Gratuity Provident Fund
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Discount Rate	7.16%	7.16%	6.69%	6.69%
Expected statutory interest rate	-	8.10%	-	8.50%
Salary increase	8.00%	-	7.00%	-
Retirement Age (years)	58	58	58	58
Mortality Rates	IALM	IALM	IALM	IALM
	(2012-14)	(2012-14)	(2012-14)	(2012-14)
Withdrawal rate
Upto 30 years	20.00%	20.00%	20.00%	20.00%
31 to 44 years	7.00%	7.00%	7.00%	7.00%
Above 44years	8.00%	8.00%	8.00%	8.00%

The cost of the defined benefit plans and other long term benefits are determined using actuarial valuations. Actuarial valuations involve making various assumptions that may differ from actual developments in the future. These includes the determination of the discount rate, future salary increases and mortality rate. Due to these complexity involved in the valuation it is highly sensitive to the changes in these assumptions. All assumptions are reviewed at each reporting date. The present value of the defined benefit obligation and the related current service cost and planned service cost were measured using the projected unit cost method.

(iii) Amounts recognised in statement of profit and loss in respect of these benefit plans are as follows:

	Year ended March 31, 2022 Year ended March 31, 2021
	Gratuity Provident Fund Gratuity Provident Fund
Current Service cost Interest expenses (net of expected return onplan assets)	9.09 7.73 8.03 6.75 0.30 - 1.07 -
	9.39 7.73 9.10 6.75

The current service cost and the net interest expenses for the year are included in Note 25 “Employee Benefits Expenses” under the head “Contribution to provident and other funds”.

Longevity Risk

The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after employment. An increase in the life expectancy of the plan participants will increase the plans liability.

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STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

(iv) Amounts recognised in Other Comprehensive Income:

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Year ended Year ended
March 31, 2022 March 31, 2021
Gratuity Provident Fund Gratuity Provident Fund
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Actuarial (gain)/	(0.31)	-	(5.84)	-
losses on plan assets
Actuarial (gain)/ losses	3.71	-	0.49	-
arising from changes in fnancial assumptions
Actuarial (gain)/ losses	3.90	-	2.94	-
arising from changes in
experience adjustments
	7.30	-	(2.41)	-

(v) The amount included in balance sheet arising from the entity’s obligation in respect of its defined benefit plans is as follows:

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As at March 31, 2022 As at March 31, 2021
Gratuity Provident Fund Gratuity Provident Fund
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Present value of funded	107.45	155.50	98.72	158.91
defned beneft obligation
Fair value ofplan assets	95.88	157.64	94.20	157.71
Surplus/ (Defcit) Efect of asset ceiling,if any	(11.57) -	2.14 (2.14)	(4.52) -	(1.20) -
Net assets /(liability)	(11.57)	-	(4.52)	(1.20)

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

(vii) Movements in the fair value of plan assets are as follows:

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Year ended Year ended
March 31, 2022 March 31, 2021
Gratuity Provident Fund Gratuity Provident Fund
----- End of picture text -----

Opening fair	94.20	157.71	69.96	136.55
value of plan assets
Return on plan assets	6.62	15.76	10.58	11.18
(excluding amounts included in
net interest expenses)
Contributions from employer	9.63	7.73	17.99	6.75
Contributions from	-	12.72	-	10.83
plan participants
Benefts paid	(14.57)	(39.82)	(4.33)	(8.73)
Settlement/transfer in	-	3.54	-	1.13
Closing fair	95.88	157.64	94.20	157.71
value ofplan assets

Gratuity:

Plan assets comprises primarily of investment in HDFC Group Unit Linked Plan fund and ICICI Prudential Life Fund. The average duration of the defined benefit obligation is 9.12 years (Previous year: 9.14 years). The Company expects to make a contribution of 10.58 Crores (Previous year: 8.76 Crores) to the defined benefit plans during the next financial year.

Provident fund:

(vi) Movements in the present value of defined benefit obligation are as follows:

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Year ended Year ended
March 31, 2022 March 31, 2021
Gratuity Provident Fund Gratuity Provident Fund
Opening defined 98.72 158.91 85.78 137.01
benefit obligation
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Opening defned beneft obligation	98.72	158.91	85.78	137.01
Current service cost	9.09	7.73	8.03	6.75
Interest cost	6.60	12.42	5.81	11.92
Actuarial (gain)/ losses	3.71	-	0.49	-
arising from changes in fnancial assumptions
Actuarial (gain)/ losses	3.90	-	2.94	-
arising from changes in
experience adjustments
Benefts paid	(14.57)	(39.82)	(4.33)	(8.73)
Contribution by plan	-	12.72	-	10.83
participants/ employees
Settlement/ transfer in	-	3.54	-	1.13
Closing defned beneft obligation	107.45	155.50	98.72	158.91

The plan assets have been primarily invested in government securities and corporate bonds.

(viii) Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of reporting period, while holding all other assumptions constant.

	Year ended March 31, 2022 Year ended March 31, 2021
	0.50% increase 0.50% decrease 0.50% increase 0.50% decrease
Sensitivity analysis of Gratuity Discount rate Expected salary growth Sensitivity analysis of Provident Fund Discount rate	(3.54) 3.77 (3.00) 3.20 3.72 (3.53) 3.17 (3.01) (0.01) 0.01 (0.01) 0.01

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Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

33.3 Other long-term employee benefit

Amounts recognized in the statement of profit and loss in note 25 “ Employee Benefits expense” under the head “Salaries and wages, including bonus” are as under:

	Year ended March 31, 2022	Year ended March 31, 2021
Long term retention pay (Refer to note (i) below)	-	-
Compensated absences	12.26	11.57
	12.26	11.57

(i) Long Term Retention Pay

The Company has a Long Term Retention Pay Plan which covers employees selected on the basis of their current band and their long term value to the Company. The incentive is payable in three year blocks subject to achievement of certain performance ratings. The Company also has a scheme for talent retention of certain identified employees under which an incentive is payable over a period of three years.

34 EMPLOYEE SHARE BASED PAYMENTS

The Company has an Employee Share Purchase Scheme (SRF Long Term Share Based Incentive Plan) to provide equity settled share based payments to eligible employees. The expenses related to the grant of shares under the Scheme are accounted for on the basis of fair value of the share on the grant date (which is the market price of the Company’s share on the date of grant less exercise price). The fair value so determined is expensed on a straight line basis over the remaining tenure over which the employees renders their services.

The movement of number of equity shares granted, their fair value and the share based payment expense recognised during the year are as under:

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Year ended Year ended
March 31, 2022 March 31, 2021
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Number of equity shares:
(i) At the beginnning of the year	60,000	60,000
(ii) Impact of bonus issue of shares (Refer to note 13.1)	240,000	-
(iii) Granted during the year *	195,000	-
(iv) Released during the year^	(300,000)	-
(v) At the end of the year	195,000	60,000
Market price on the grant date (`per equity share)	2,126.05	-
Exercise price (`per equity share)	10.00	-
Fair value of share based payment (`per equity share)	2,116.05	-
Share based payment expense recognised during the year^#	28.61	0.98

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

35 SEGMENT REPORTING

Based on the guiding principles laid down in Indian Accounting Standard (Ind AS) - 108 “Segment Reporting”, the Chairman & Managing Director of the Company is the Chief Operating Decision Maker (CODM) and for the purposes of resource allocation and assessment of segment performance the business of the Company is segregated in the segments below:
Technical Textiles business: includes nylon tyre cord fabric, belting fabric, polyester tyre cord fabric and industrial yarns and its research and development
Chemicals business: includes refrigerant gases, industrial chemicals, speciality chemicals, fluorochemicals & allied products and its research and development.
Packaging Film business: includes polyester films and polypropylene films.
Others: includes coated fabric, laminated fabric and other ancilliary activities.

Segment revenue, results and capital employed include the respective amounts identifiable to each of the segments. Other unallocable expenditure includes expenses incurred on common services provided to the segments, which are not directly identifiable.

In addition to the significant accounting policies applicable to the business segments as set out in note 1 above, the accounting policies in relation to segment accounting are as under:

a) Segment revenue and expenses

Joint revenue and expenses of segments are allocated amongst them on a reasonable basis. All other segment revenue and expenses are directly attributable to the segments. These amounts relate to continuing operations, unless otherwise stated. (Refer to note 40 with regard to information in relation to discontinued operations).

b) Segment assets and liabilities

Segment assets include all operating assets used by a segment and consist principally of operating cash, trade receivables, inventories and property plant and equipment and intangible assets, net of allowances and provisions, which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities and do not include deferred income taxes. While most of the assets / liabilities can be directly attributed to individual segments, the carrying amount of certain assets / liabilities pertaining to two or more segments are allocated to the segments on a reasonable basis.

These shares have a lock in period upto November 30, 2022 and are pledged for a period upto October 31, 2026.

^ During the current year, the Nomination and Remuneration Committee based upon the recommendations of the management released 300,000 equity shares from pledge, resulting into immediate vesting of these shares. As a result, an additional amount of ` 6.72 Crores has been recognised in the statement of profit and loss.

Includes amount of ` 17.50 Crores (Previous year: Nil) towards witholding tax on equity shares granted under the above scheme.

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STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

A. Information about operating business segments

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Year ended Year ended
March 31, 2022 March 31, 2021
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Segment revenue
a) Technical textiles business (TTB)
- External sales	2,073.33	1,231.41
- Inter-segment sales	11.91	8.70
Total	2,085.24	1,240.11
b) Chemicals business (CB)
- External sales	5,212.26	3,636.85
- Inter-segment sales	-	-
Total	5,212.26	3,636.85
c) Packaging flms business (PFB)
- External sales	2,327.51	1,888.04
- Inter-segment sales	-	-
Total	2,327.51	1,888.04
d) Others
- External sales	340.34	232.02
- Inter-segment sales	-	-
Total	340.34	232.02
Total segment revenue	9,965.35	6,997.02
Less: Inter segment revenue	11.91	8.70
Revenue from operations	9,953.44	6,988.32
Add: Unallocable income	135.31	63.30
Total revenue	10,088.75	7,051.62
Segment profts
(Proft before interest and tax from each segment)
a) Technical textiles business (TTB)	470.84	176.90
b) Chemicals business (CB)	1,397.35	730.11
c) Packaging flms business (PFB)	482.72	567.79
d) Others	20.35	25.59
Total segment results	2,371.26	1,500.39
Less: i) Interest and fnance charges	94.45	111.21
Less: ii)Other unallocable expenses net of income	121.77	79.21
Proft before tax	2,155.04	1,309.97

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

Ca	pital expenditure
a)	Technical textiles business (TTB)	63.43	77.90
b)	Chemicals business (CB)	1,292.68	618.66
c)	Packaging flms business (PFB)	416.20	20.46
d)	Others	1.66	1.92
e)	Unallocated	8.38	3.13
Total		1,782.35	722.07
Depreciation and amortisation
a)	Technical textiles business (TTB)	40.56	35.41
b)	Chemicals business (CB)	303.59	273.09
c)	Packaging flms business (PFB)	54.72	54.13
d)	Others	7.53	8.06
e)	Unallocated	12.83	12.91
Total		419.23	383.60

Segment assets and liabilities

	As at March 31, 2022	As at March 31, 2021
Segment assets
a) Technical textiles business (TTB)	1,830.61	1,594.08
b) Chemicals business (CB)	7,154.46	5,723.01
c) Packaging flms business (PFB)	2,198.19	1,667.82
d) Others	174.94	171.97
Total	11,358.20	9,156.88
Unallocable assets	1,577.02	1,554.42
Assets classifed as held for sale	3.00	-
Total assets	12,938.22	10,711.30
Segment liabilities
a) Technical textiles business (TTB)	416.95	336.77
b) Chemicals business (CB)	938.85	707.94
c) Packaging flms business (PFB)	390.99	338.22
d) Others	37.02	32.85
Total	1,783.81	1,415.78
Unallocable liabilities	3,529.61	3,000.25
Total liabilities	5,313.42	4,416.03

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STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

B. Information about geographical business segments

	Year ended March 31, 2022	Year ended March 31, 2021
Revenue from operations
- India	5,116.93	3,581.87
- Germany	382.97	466.31
- USA	1,399.61	477.13
- Belgium	528.32	635.51
- Switzerland	827.37	687.75
- Others	1,698.24	1,139.75
	9,953.44	6,988.32

	As at March 31, 2022	As at March 31, 2021
Non current segment assets
- Within India	7,938.50	6,505.08
- Outside India	-	-
	7,938.50	6,505.08

Non-current segment assets includes property, plant and equipments, right-of-use assets, capital work in progress, intangible assets, goodwill and other non current assets.

During the year ended March 31, 2022 no customer contributed more than 10% to the Company’s revenue (Previous year: one customer contributed 10.71% to the Company’s revenue).

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Revenue from major products Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

a)	Technical textiles business (TTB)
	Nylon tyre cord fabric/ Polyester tyre cord fabric/ Belting fabric	1,880.90	1,122.94
	Synthetic flament yarn including industrial yarn/ Twine	165.78	97.21
	Others	5.16	0.62
b)	Chemicals business (CB)
	Speciality chemicals	3,100.32	2,389.39
	Fluorochemicals, Refrigerant gases and Allied products	1,695.53	885.95
	Industrial chemicals	350.65	311.00
	Others	0.01	0.75
c)	Packaging flms business (PFB)
	Packaging flms	2,301.59	1,853.37
d)	Others
	Laminated fabric,Coated fabric and other ancilliaryactivities	336.61	226.26
		9,836.55	6,887.49

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

36 EARNINGS PER SHARE (EPS)

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Year ended Year ended
March 31, 2022 March 31, 2021
Profit attributable to the equity holders of the Company used in 1,507.01 925.06
----- End of picture text -----

calculating basic earning per share and diluted earning per share
Weighted average number of equity shares for the purpose of	296,306,696	295,263,898
calculating basic and diluted earnings per share (numbers)
Basic and diluted earningsper share of face value`10 each	50.86	31.33

Note:

During the current year, the Company has issued and allotted 236,980,820 fully paid up Bonus Equity shares of ` 10 each in the ratio of 4:1 (i.e. 4 Bonus Equity shares for every 1 existing equity share of the Company) to the shareholders who held shares on October 14, 2021 (Record date). Accordingly, basic and diluted earnings per share has been calculated based on the weighted average number of shares outstanding in the current and previous year, as adjusted by issuance of bonus shares.

37 LEASES

The Company leases various types of assets including land, buildings and plant and equipment. Information about leases for which the Company is a lessee is presented below.

Right-of-use assets	Land *	Buildings Plant and equipment	Total
Cost
Balance at March 31, 2020	148.04	44.98 50.63	243.65
Additions / adjustments	3.25	2.13 1.86	7.24
Disposals	-	(0.86) (2.60)	(3.46)
Balance at March 31, 2021	151.29	46.25 49.89	247.43
Additions / adjustments	4.88	(0.45) 58.59	63.02
Disposals	-	- (8.20)	(8.20)
Balance at March 31, 2022	156.17	45.80 100.28	302.25
Accumulated amortisation
Balance at March 31, 2020	0.87	6.76 8.44	16.07
Depreciation expenses	1.68	7.07 9.31	18.06
Disposals	-	(0.86) (2.60)	(3.46)
Balance at March 31, 2021	2.55	12.97 15.15	30.67
Depreciation expenses	1.74	6.59 16.10	24.43
Disposals	-	- (8.20)	(8.20)
Balance at March 31, 2022	4.29	19.56 23.05	46.90

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STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Right-of-use assets Land * Buildings Plant and Total
equipment
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||||||
|---|---|---|---|---|
|Carrying Amount|
|Balance at March 31, 2020|147.17|38.22|42.19|227.58|
|Additions / adjustments|3.25|2.13|1.86|7.24|
|Disposals|-|-|-|-|
|Depreciation expenses|(1.68)|(7.07)|(9.31)|(18.06)|
|Balance at March 31, 2021|148.74|33.28|34.74|216.76|
|Additions / adjustments|4.88|(0.45)|58.59|63.02|
|Disposals|-|-|-|-|
|Depreciation expenses|(1.74)|(6.59)|(16.10)|(24.43)|
|Balance at March 31, 2022|151.88|26.24|77.23|255.35|

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Refer note 41(g)(ii)

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||||
|---|---|---|
|Lease liabilities included in the Balance Sheet|As at|As at|
|March 31, 2022|March 31, 2021|
|Current|20.66|13.80|
|Non-current|95.18|63.83|

----- End of picture text -----

The average incremental borrowing rate applied to lease liabilities during the year ranges from 6.40% to 7.00% (Previous year: ranges from 6.50% to 8.00%)

==> picture [424 x 79] intentionally omitted <==

----- Start of picture text -----

||||
|---|---|---|
|Year ended|Year ended|
|Amounts recognised in Statement of Profit and Loss|
|March 31, 2022|March 31, 2021|
|Interest on lease liabilities|8.69|6.49|
|Depreciation expense|24.43|18.06|
|Expenses relating to short-term leases and leases of low-value|27.54|15.62|
|assets (Refer note 28)|

----- End of picture text -----

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----- Start of picture text -----

||||
|---|---|---|
|Amounts recognised in Cash Flow Statement|Year ended|Year ended|
|March 31, 2022|March 31, 2021|
|Total cash outflow for leases|25.68|20.19|

----- End of picture text -----

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

38 FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

38.1 Capital Management

The Company manages its capital to ensure that it will be able to continue as a going concern and provide reasonable return to the shareholders by maintaining a reasonable balance between debt and equity. The capital structure of the Company consists of net debt (borrowings net of cash and cash equivalents, deposit accounts with maturity beyond three months upto twelve months and current investments) and total equity of the Company. The Company is not subject to any externally imposed capital requirements. The Company’s management reviews the capital structure of the Company on periodic basis. As part of its review, the management considers the cost of capital and risk associated with each class of capital. The Company also evaluates its gearing measures using Debt Equity Ratio to arrive at an appropriate level of debt and accordingly evolves its capital structure.

The following table provides the details of the debt and equity at the end of the reporting periods :

==> picture [423 x 28] intentionally omitted <==

----- Start of picture text -----

As at As at
March 31, 2022 March 31, 2021
----- End of picture text -----

==> picture [423 x 122] intentionally omitted <==

----- Start of picture text -----

||||
|---|---|---|
|Debt and lease liabilities|2,890.74|2,652.71|
|Less:|
|Cash and cash equivalents|319.64|86.72|
|Deposit accounts with maturity beyond three months|0.20|135.19|
|upto twelve months|
|Current investments|316.74|412.52|
|Net debt|2,254.16|2,018.28|
|Total equity|7,624.80|6,295.27|
|Net debt to equity ratio|0.30|0.32|

----- End of picture text -----

38.2 Financial instruments by category

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----- Start of picture text -----

|||||||
|---|---|---|---|---|---|
|Financial assets|Level of|Notes|Carrying value|Fair value|
|hierarchy|As at|As at|As at|As at|
|March 31,|March 31,|March 31,|March 31,|
|2022|2021|2022|2021|
|Measured at amortised cost|
|Trade Receivables|a|1,350.99|1,012.00|1,350.99|1,012.00|
|Cash and cash equivalents|a|319.64|86.72|319.64|86.72|
|Bank balances other than above|a|8.87|143.71|8.87|143.71|
|Loans|a,b|588.47|666.28|588.47|666.28|
|Other financial assets|a,b|238.71|180.00|238.71|180.00|
|2,506.68|2,088.71|2,506.68|2,088.71|

----- End of picture text -----

248 Annual Report 2021-22

Annual Report 2021-22 249

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

==> picture [424 x 54] intentionally omitted <==

----- Start of picture text -----

Financial assets Level of Notes Carrying value Fair value
hierarchy As at As at As at As at
March 31, March 31, March 31, March 31,
2022 2021 2022 2021
----- End of picture text -----

Measured at Fair value
through proft and loss
Investments in mutual funds and	2	d	316.74	412.52	316.74	412.52
bonds / debentures
Derivative instruments	2	d	3.64	4.39	3.64	4.39
			320.38	416.91	320.38	416.91
Measured at Fair
value through Other
comprehensive income
Investments in unquoted	3	d	4.16	4.16	4.16	4.16
equity instruments
Derivative instruments	2	d	124.69	75.76	124.69	75.76
			128.85	79.92	128.85	79.92

==> picture [424 x 51] intentionally omitted <==

----- Start of picture text -----

Financial liabilities Level of Notes Carrying value Fair value
hierarchy As at As at As at As at
March 31, March 31, March 31, March 31,
2022 2021 2022 2021
----- End of picture text -----

Measured at amortised cost
Borrowings		a,c	2,774.90	2,184.49	2,774.90	2,184.49
Trade payables		a	1,340.37	1,196.49	1,340.37	1,196.49
Other fnancial liabilities		a	301.68	499.66	301.68	499.66
			4,416.95	3,880.64	4,416.95	3,880.64
Measured at Fair value through
proft and loss
Derivative instruments	2	d	-	-	-	-
			-	-	-	-
Measured at Fair value through
Other comprehensive income
Derivative instruments	2	d	-	0.54	-	0.54
			-	0.54	-	0.54

The following methods/ assumptions were used to estimate the fair values:

(a) Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying amount due to the short term maturities of these instruments.
(b) Fair valuation of non-current financial assets has been disclosed to be same as carrying value as there is no significant difference between carrying value and fair value.

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

(c) The fair value of other long-term borrowings is estimated by discounting future cash flows using current rates (applicable to instruments with similar terms, currency, credit risk and remaining maturities) to discount the future payouts.
(d) The fair value is determined by using the valuation model/ technique with observable/ non-observable inputs and assumptions.
(e) Investment value excludes investment in subsidiaries which are shown at cost in balance sheet as per Ind AS 27 “Separate financial statements”.

There are no transfers between Level 1, Level 2 and Level 3 during the year ended March 31, 2022 and March 31, 2021.

Level 1:

Quoted prices in the active market: This level of hierarchy includes financial assets that are measured by reference to quoted prices in the active market.

Level 2:

Valuation techniques with significant observable inputs: This level of hierarchy includes items measured using inputs other than quoted prices included within Level 1 that are observable for such items, either directly or indirectly. This level of hierarchy consists of over the counter (OTC) derivative contracts, open ended mutual funds, bonds and debentures.

Level 3:

Valuation techniques with significant unobservable inputs: This level of hierarchy includes items measured using inputs that are not based on observable market data (unobservable inputs). Fair value is determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based on available market data. The main item in this category are unquoted equity instruments.

The fair value of the financial instruments are determined at the amount that would be received to sell an asset in an orderly transaction between market participants. The following methods and assumptions were used to estimate the fair values:

(i) Investments in mutual funds and bonds / debentures: Fair value is determined by reference to quotes from the financial institutions.
(ii) Derivative contracts: The Company has entered into various foreign currency contracts and interest rate swaps contracts to manage its exposure to fluctuations in foreign exchange rates and interest rate respectively. These financial exposures are managed in accordance with the Company’s risk management policies and procedures. Fair value of derivative financial instruments are determined using valuation techniques based on information derived from observable market data, i.e., mark to market values determined by the authorized dealers banks and forward exchange rates at the balance sheet date.
(iii) Unquoted equity investments: Fair value is determined based on the recoverable value as per agreement with the investee.

250

251

Annual Report 2021-22

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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----- Start of picture text -----

Reconciliation of Level 3 fair value Unlisted equity Financial
measurements instruments Guarantee Contracts
----- End of picture text -----

As at March 31, 2020	4.16	-
Purchase of investment	-	-
As at March 31, 2021	4.16	-
Purchase of investment	-	-
As at March 31, 2022	4.16	-

Sensitivity of the fair value measurement to changes in unobservable inputs for financial instruments in Level 3 level of hierarchy is insignificant.

38.3 Financial Risk Management

The Company is exposed to various financial risks arising from its underlying operations and finance activities. The Company is primarily exposed to market risk (i.e. interest rate and foreign currency risk) and to credit risk and liquidity risk. The Company’s Corporate Treasury function plays the role of monitoring financial risk arising from business operations and financing activities.

Financial risk management within the Company is governed by policies and guidelines approved by the senior management and the Board of Directors. These policies and guidelines cover interest rate risk, foreign currency risk, credit risk and liquidity risk. Company policies and guidelines also cover areas such as cash management, investment of excess funds and the raising of short and long-term debt. Compliance with the policies and guidelines is managed by the Corporate Treasury function within the Company. Review of the financial risk is done on a monthly basis by the Managing Director and on a quarterly basis by the Board of Directors. The objective of financial risk management is to contain, where deemed appropriate, exposures on net basis to the various types of financial risks mentioned above in order to limit any negative impact on the Company’s results and financial position.

In accordance with its financial risk management policies, the Company manages its market risk exposures by using specific type of financial instruments duly approved by the Board of Directors as and when deemed appropriate. It is the Company’s policy and practice neither to enter into derivative transactions for speculative purpose, nor for any purpose unrelated to the underlying business. The Board of Directors / Managing Director reviews and approves policies for managing each of the above risks.

38.3.1 Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of interest rate risk and foreign currency risk. Financial instruments affected by market risk includes loans and borrowings, deposits, investments and derivative financial instruments. The Company enters into derivative contracts as approved by the Board to manage its exposure to interest rate risk and foreign currency risk.

A. Foreign Currency Risk Management

Foreign currency risk also known as Exchange Currency Risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. Foreign currency risk in the Company is attributable to Company’s operating activities, investing activities and financing activities.

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

In the operating activities, the Company’s exchange rate risk primarily arises when revenue / costs are generated in a currency that is different from the reporting currency (transaction risk). In compliance with the Board approved policy, the Company manages the net exposure on a rolling 12 month basis and for exposures between 12 to 36 months, hedging is done based on specific exposure. The information is monitored by the Audit committee and the Board of Directors on a quarterly basis. This foreign currency risk exposure of the Company are mainly in U.S. Dollar (USD), Euro (EUR), Japanese Yen (JPY) and British Pound Sterling (GBP). The Company’s exposure to foreign currency changes for all other currencies is not material.

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting periods expressed in ` are as follows:

	Assets Liabilities
	As at March 31, 2022 As at March 31, 2021 As at March 31, 2022 As at March 31, 2021
USD EUR JPY GBP	870.29 729.29 2,205.38 1,903.09 282.87 257.67 547.26 512.07 - - 6.33 9.95 6.73 3.15 0.01 13.12

Foreign currency sensitivity analysis

The Company is mainly exposed to changes in USD, EUR, JPY and GBP exchange rates.

The following table details the Company’s sensitivity to a 1% increase and decrease in the ` against the relevant foreign currency. The sensitivity analysis includes only outstanding foreign currency denominated monetary items as tabulated above and adjusts their translation at the period end for 1% change in foreign currency rates. A positive number below indicates an increase in profit before tax or vice-versa.

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----- Start of picture text -----

Year ended March 31, 2022 Year ended March 31, 2021
strengthens by weakens strengthens by weakens by
1% by 1% 1% 1%
Impact on profit / (loss)
----- End of picture text -----*

|Impact|**strengthens by** **1%** w
on proft / (loss) |eakens
by 1%
**stre**|**ngthens by** **1%** |weakens by
1%|
|---|---|---|---|---|
|USD|4.58|(4.58)|6.10|(6.10)|
|EUR|(1.11)|1.11|(2.52)|2.52|
|JPY|0.06|(0.06)|0.10|(0.10)|
|GBP|(0.07)|0.07|0.10|(0.10)|
|Impact|on equity (Other Comprehensive Income)*||||
|USD|8.62|(8.62)|5.49|(5.49)|
|EUR|3.75|(3.75)|5.08|(5.08)|

Includes sensitivity on long-term foreign currency monetary items on which Para D13 AA of Ind AS 101 has been applied. Accordingly, the exchange loss/ (gain) arising on long term foreign currency monetary items relating to acquisition of depreciable assets will be added to/ deleted from the cost of such assets/ capital work in progress and will be depreciated over the balance useful life of assets.

252 Annual Report 2021-22

Annual Report 2021-22 253

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Foreign exchange derivative and non-derivative financial instruments

The Company uses derivative as well as non-derivative financial instruments for hedging financial risks that arise from its commercial business or financing activities. The Company’s Corporate Treasury team manages its foreign currency risk by hedging transactions that are expected to occur within of 1 to 36 months for hedges of forecasted sales, purchases, loans and liabilities and capital expenditures. When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable or payable that is denominated in the foreign currency. All identified exposures are managed as per the policy duly approved by the Board of Directors.

The following table details the foreign currency derivative contracts outstanding at the end of the reporting period:

		Maturity
Outstanding Contracts*	No of Deals Contract Value of Foreign Currency (In Millions)	Up to 12 months *Nominal Amount(`<br>Crores)<br>More than 12 months<br>Nominal Amount* (` Crores)**
	As at March 31, 2022 As at March 31, 2021 As at March 31, 2022 As at March 31, 2021 As at March 31, 2022 As at March 31, 2021 As at March 31, 2022 As at March 31, 2021
USD / INR Sell forward EUR / INR Sell forward	362 264 735.50 513.25 2,821.04 2,029.40 3,095.66 1,998.63 1 17 20.00 40.50 - 181.53 202.77 202.77

Computed using average forward contract rates

The following table details the Company’s sensitivity to a 1% increase and decrease in the ` against the relevant foreign currency. The sensitivity analysis includes only outstanding forward exchange contracts as tabulated above and adjusts their translation at the period end for 1% change in forward rates. A positive number below indicates an increase in profit before tax or vice-versa.

==> picture [424 x 51] intentionally omitted <==

----- Start of picture text -----

Year ended March 31, 2022 Year ended March 31, 2021
strengthens weakens strengthens weakens
by 1% by 1% by 1% by 1%
Impact on profit /
----- End of picture text -----

|**s** **Impact on proft /** |**trengthens** **by 1%**|weakens
by 1%
**s**|**trengthens** **by 1%**|weakens
by 1%|
|---|---|---|---|---|
|(loss) for the year|||||
|USD|1.83|(1.83)|1.76|(1.76)|
|EUR|-|-|0.34|(0.34)|
|Impact on equity (Other|||||
|Comprehensive Income)|||||
|USD|56.31|(56.31)|37.82|(37.82)|
|EUR|1.81|(1.81)|3.40|(3.40)|

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

B. Interest Rate Risk Management

Interest rate risk arises from movements in interest rates which could have effects on the Company’s net income or financial position. Changes in interest rates may cause variations in interest income and expenses resulting from interest-bearing assets and liabilities. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a portfolio of fixed and variable rate loans and borrowings. The Company enters into interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts, calculated by reference to an agreed principal amount outstanding at the time of inception of the swap. Out of the total long term borrowings, the amount of fixed interest loan is 938.35 Crores and floating interest loan is 916.26 Crores (Previous year: Fixed interest loan 898.59 Crores and Floating interest loan 917.02 Crores).

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate long term borrowings, as follows:

	Year ended March 31, 2022 Year ended March 31, 2021
	`loans interest<br>rate decreases<br>by 0.50 %<br>Foreign<br>currency loans<br>interest rate<br>decreases by<br>0.15 %<br>`loans interest rate decreases by 0.50 % Foreign currency loans interest rate decreases by 0.15 %
Increase in proft before tax by	1.29 0.99 2.85 0.52

In case of increase in interest rate by above mentioned percentage, there would be a comparable negative impact on the profit before tax as mentioned above.

Managing interest rate benchmark reform and associated risks

A fundamental reform of major interest rate benchmarks is being undertaken globally, including the replacement of some interbank offered rates (IBORs) with alternative nearly risk-free rates (referred to as ‘IBOR reform’). The Company has exposures to USD-LIBOR and EUR-IBOR on its financial instruments. The Company has renegotiated all working capital facilities agreements and have moved to new benchmarks, wherever IBOR reforms had mandated.

As per the IBOR reform regulations, USD LIBOR based contracts entered into on or before December 31, 2021 are allowed to continue utilising the facility until the maturity date, provided such date is before June 30, 2023. The Company has certain loans which falls under this category and accordingly, the management has taken a decision to continue on 1 Month / 3 Months / 6 Months LIBOR. All the EUR denominated long term loans of the Company are linked to EURIBOR and thus not impacted by IBOR reforms.

254 Annual Report 2021-22

Annual Report 2021-22 255

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

The Company has two loans (USD-LIBOR benchmark linked) which are maturing after June 2023 and the management has planned to migrate these loans to SOFR (secured overnight financing rate) benchmark prior to June 2023, along with IRS contract, if any. The management does not envisage any significant impact on the financial statements due to the migration.

Interest Rate Swap Contracts

Under interest rate swap (IRS) contracts, the Company agrees to exchange the difference between fixed and floating rate interest amounts calculated on the agreed notional principal amounts. Such contracts enables the Company to mitigate the risk of changing interest rates.

The following table details the IRS contracts outstanding at the end of the reporting period:

		Maturity
Outstanding Contracts*	No of Deals Contract Value of Foreign Currency (In Millions)	Up to 12 months Nominal Amount (`Crores)<br>More than 12 months<br>Nominal Amount<br>(`Crores)
	As at March 31, 2022 As at March 31, 2021 As at March 31, 2022 As at March 31, 2021 As at March 31, 2022 As at March 31, 2021 As at March 31, 2022 As at March 31, 2021
IRS Contracts*	4 4 20.28 31.05 90.76 85.49 62.79 141.68

Sensitivity on the above IRS contracts in respect of interest rate exposure is insignificant

Each of the above trades are in the nature of cash flow hedges and are effective hedges. The mark to market on these trades is therefore routed through Cash flow Hedge Reserve. The interest rate swap and the interest payments on the loan are paid simultaneously and are charged off to the statement of profit and loss.

C. Hedge accounting

Cash flow hedges

The amounts at the reporting date relating to the item designed as hedge items are as follows:

Hedging instruments As at March 31, 2022 Year ended March 31, 2022 As at March 31, 2021 Year ended March 31, 2021 Nominal amount Carrying amount Assets / (liabilities) Line item where the hedging instrument is included Change in the value of the hedging instrument recognised in OCI Nominal amount Carrying amount Assets / (liabilities) Line item where the hedging instrument is included Change in the value of the hedging instrument recognised in OCI	Hedging instruments As at March 31, 2022 Year ended March 31, 2022 As at March 31, 2021 Year ended March 31, 2021 Nominal amount Carrying amount Assets / (liabilities) Line item where the hedging instrument is included Change in the value of the hedging instrument recognised in OCI Nominal amount Carrying amount Assets / (liabilities) Line item where the hedging instrument is included Change in the value of the hedging instrument recognised in OCI
	Nominal amount Carrying amount Assets / (liabilities) Line item where the hedging instrument is included Change in the value of the hedging instrument recognised in OCI Nominal amount Carrying amount Assets / (liabilities) Line item where the hedging instrument is included Change in the value of the hedging instrument recognised in OCI
Foreign exchange contracts	5,932.96 121.17 Other fnancial assets (current and non - current) 46.424,197.13 74.75 Other fnancial assets (current and non - current) 140.37
Foreign currency denominated loans	1,236.86 (1,236.86) Borrowings (current and non - current) 8.201,055.91 (1,055.91) Borrowings (current and non - current) (1.27)

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Hedging instruments As at March 31, 2022 Year ended March 31, 2022 As at March 31, 2021 Year ended March 31, 2021 Nominal amount Carrying amount Assets / (liabilities) Line item where the hedging instrument is included Change in the value of the hedging instrument recognised in OCI Nominal amount Carrying amount Assets / (liabilities) Line item where the hedging instrument is included Change in the value of the hedging instrument recognised in OCI	Hedging instruments As at March 31, 2022 Year ended March 31, 2022 As at March 31, 2021 Year ended March 31, 2021 Nominal amount Carrying amount Assets / (liabilities) Line item where the hedging instrument is included Change in the value of the hedging instrument recognised in OCI Nominal amount Carrying amount Assets / (liabilities) Line item where the hedging instrument is included Change in the value of the hedging instrument recognised in OCI	Hedging instruments As at March 31, 2022 Year ended March 31, 2022 As at March 31, 2021 Year ended March 31, 2021 Nominal amount Carrying amount Assets / (liabilities) Line item where the hedging instrument is included Change in the value of the hedging instrument recognised in OCI Nominal amount Carrying amount Assets / (liabilities) Line item where the hedging instrument is included Change in the value of the hedging instrument recognised in OCI
	Nominal amount Carrying amount Assets / (liabilities) Line item where the hedging instrument is included Change in the value of the hedging instrument recognised in OCI Nominal amount Carrying amount Assets / (liabilities) Line item where the hedging instrument is included Change in the value of the hedging instrument recognised in OCI
Interest rate swap contacts	153.55 3.52 Other fnancial assets (current and non - current) 2.51 227.17 1.01 Other fnancial assets (current and non - current) 1.01 - Other fnancial liabilities (current and non - current) 0.54 (0.54) Other fnancial liabilities (current and non - current) 1.88
		(0.54) Other fnancial liabilities (current and non - current) 1.88

Fair Value hedges

The amounts at the reporting date relating to the item designed as hedge items are as follows:

Hedging
instruments
As at March 31, 2022
Year ended
March 31,
2022
As at March 31, 2021
Year ended
March 31,
2021
Nominal
amount
Carrying
amount
Assets /
(liabilities)
Line item
where the
hedging
instrument is
included
Change in
the value of
the hedging
instrument
recognised
in
statement
of proft
and loss
Nominal
amount
Carrying
amount
Assets /
(liabilities)
Line item
where the
hedging
instrument is
included
Change in
the value of
the hedging
instrument
recognised
in
statement
of proft
and loss

Nominal
amount
Carrying
amount
Assets /
(liabilities)
Line item
where the
hedging
instrument is
included
Change in
the value of
the hedging
instrument
recognised
in
statement
of proft
and loss
Nominal
amount
Carrying
amount
Assets /
(liabilities)
Line item
where the
hedging
instrument is
included
Change in
the value of
the hedging
instrument
recognised
in
statement
of proft
and loss

Foreign
exchange
contracts

186.51
3.64
Other fnancial
assets (current
and non -
current)
(0.74)
215.21
4.39
Other fnancial
assets (current
and non -
current)
4.44

Movement of cash flow hedging reserve and cost of hedging reserve

Particulars	Cash fow hedging reserve Cost of hedging reserve
	As at March 31, 2022 As at March 31, 2021 As at March 31, 2022 As at March 31, 2021
Opening Balance 7.53 (78.56) 0.62 - Changes in the spot element of the forward contracts which is designated as hedging instruments for time period related hedge (3.12) 7.04 - -

256 Annual Report 2021-22

Annual Report 2021-22 257

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

==> picture [424 x 63] intentionally omitted <==

----- Start of picture text -----

Particulars Cash flow hedging Cost of hedging reserve
reserve
As at As at As at As at
March 31, March 31, March 31, March 31,
2022 2021 2022 2021
----- End of picture text -----

Changes in the forward element of the forward	-	-	20.83	3.87
contracts where changes in spot element of
forward contract is designated as hedging
instruments for time period related hedges
Changes in fair value of forward contracts	28.77	130.71	-	-
designated as hedging instruments
Changes in fair value of interest rate swaps	3.05	2.89	-	-
Amount reclassifed to Proft or Loss (Foreign	16.54	3.12	(19.35)	(2.92)
exchange (gain) / loss)
Amount arising from remeasurement of fnancial liability	(5.25)	(11.43)	-	-
Taxes related to above	(13.03)	(46.24)	(0.45)	(0.33)
Closing Balance	34.49	7.53	1.65	0.62

38.3.2 Credit Risk Management

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables, loans and other financial assets) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy. Investments of surplus funds are made only with counterparties who meet the parameters specified in Investment Policy of the Company. The investment policy is reviewed by the Company’s Board of Directors on an annual basis and if required, the same may be updated during the year. The investment policy specifies the limits of investment in various categories of products so as the minimize the concentration of risks and therefore mitigate financial loss due to counterparty’s potential failure.

Expected credit loss on financial assets:

To manage credit risk for trade receivables, the Company establishes credit approvals and credit limits, periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends, analysis of historical bad debts and aging of such receivables.

With regard to all financial assets with contractual cash flows other than trade receivable, management believes these to be high quality assets with negligible credit risk. The management believes that the parties, from which these financial assets are recoverable, have strong capacity to meet the obligations and where the risk of default is negligible and accordingly no provision for excepted credit loss has been provided on these financial assets other than as detailed below.

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Loss allowance for the following financial assets have been recognised by the Company:

	Note No.	As at March 31, 2022	As at March 31, 2021
Loans - current	6	2.74	2.74
Trade receivables	10	2.28	3.96
		5.02	6.70

Movement of loss allowance :

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----- Start of picture text -----

Loans (current and Trade receivables
non current)
----- End of picture text -----

As at March 31, 2020	2.74	2.46
Provided during the year	0.24	11.82
Reversed/utilised duringtheyear	(0.24)	(10.32)
As at March 31, 2021	2.74	3.96
Provided during the year	0.17	0.59
Reversed/utilised duringtheyear	(0.17)	(2.27)
As at March 31, 2022	2.74	2.28

Other than financial assets mentioned above, none of the Company’s financial assets are impaired, as there are no indications that defaults in payments obligation would occur.

38.3.3 Liquidity Risk Management

Liquidity risk is the risk of non-availability of financial facilities available to the Company to meet its financial obligations. The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of money market instruments, bank overdrafts, bank loans, debentures and other types of facilities. The liquidity management is governed by the Board approved liquidity management policy. Any deviation from the policy has to be approved by the Treasury Management comprising of Managing Director, Chief Financial Officer and Treasury Head. The Company assesses the concentration of risk with respect to refinancing its debt, guarantee given and funding of its capital expenditure needs of the future. The Company manages its liquidity by holding appropriate volumes of liquid assets which are available for its disposal on T +1 basis and by maintaining open credit lines with banks / financial institutions.

The table below analyze the Company’s financial liabilities into relevant maturity profiles based on their contractual maturities:

	Less than 1year	More than 1 year and upto 5years	More than 5years	Total
As at March 31, 2022
Borrowings*	1,613.26	1,211.71	-	2,824.97
Lease Liabilities**	28.63	84.50	59.52	172.65
Trade payables	1,340.37	-	-	1,340.37
Other fnancial liabilities	148.15	153.53	-	301.68
	3,130.41	1,449.74	59.52	4,639.67

258 Annual Report 2021-22

Annual Report 2021-22 259

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

==> picture [424 x 27] intentionally omitted <==

----- Start of picture text -----

Less than More than 1 year More than Total
1 year and upto 5 years 5 years
----- End of picture text -----

As at March 31, 2021
Borrowings*	1,198.91	1,466.63	-	2,665.54
Lease Liabilities**	19.30	53.85	53.68	126.83
Trade payables	1,196.49	-	-	1,196.49
Other fnancial liabilities	109.08	0.54	-	109.62
	2,523.78	1,521.02	53.68	4,098.48

Includes current maturity of non-current borrowings and future cash outflow towards estimated interest on noncurrent borrowings

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

41 ADDITIONAL DISCLOSURES

(a) RESEARCH AND DEVELOPMENT EXPENDITURE

The details of research and development expenditure of 116.99 Crores (Previous year: 110.50 Crores) included in these financial statements are as under:

	Year ended March 31, 2022	Year ended March 31, 2021
Capital expenditure	8.49	13.46
Revenue expenditure	108.50	97.04
	116.99	110.50

** Includes future cash outflow towards estimated interest on lease liabilities.

The details of revenue expenditure incurred on research and development is as below:

39 Contract balances

The following table provides information about contract liabilities from contracts with customers:

==> picture [424 x 29] intentionally omitted <==

----- Start of picture text -----

Contract liability Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

Opening balance	13.53	10.75
Revenue recognised that was included in the contract liability	(13.53)	(10.75)
balance at the beginning of the period
Increase due to cash received, excluding the amount recognised	23.85	13.53
as revenue duringtheperiod
	23.85	13.53

40 Assets held for sale

(a) Description:

During the current year, the management has decided to dispose off inoperative assets related to Industrial Yarn Unit. Accordingly, these assets have been classified as assets held for sale in terms of Ind AS 105“Non-current assets held for sale and discontinued operations” and recognised at their estimated fair value. Till previous year, these assets were reported under “Technical textiles business segment” in accordance with the requirements of Ind AS 108 – “Operating Segments” in the financial statements.

(b) Assets classified as held for sale:

	As at March 31, 2022	As at March 31, 2021
Property, plant and equipment	3.00	-
Loss recognised on:
	Year ended March 31, 2022	Year ended March 31, 2021
(i) Impairment of goodwill	0.62	-
(ii)Fair value of assets classifed as held for sale	5.75	-

(c) Loss recognised on:

	Year ended March 31, 2022	Year ended March 31, 2021
Cost of material consumed	1.68	2.73
Salaries and wages, including bonus	49.11	42.97
Contribution to provident and other funds	2.92	2.61
Workmen and staf welfare expenses	3.37	2.72
Stores and spares consumed	4.94	6.11
Power and fuel	7.94	4.84
Rent	0.26	-
Repairs and maintenance
- Buildings	-	-
- Plant and machinery	10.63	8.32
- Others	0.85	0.58
Insurance	1.02	0.96
Rates and taxes	0.06	0.07
Travelling and conveyance	0.51	0.16
Legal and professional charges	4.12	3.58
Depreciation and amortisation expense	16.65	18.33
Interest cost	0.05	0.28
Miscellaneous expenses	4.39	2.78
	108.50	97.04

260

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

(b) MANAGERIAL REMUNERATION

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

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----- Start of picture text -----

||||
|---|---|---|
|(i) (a) Remuneration to Chairman/ Managing|
|Director/ Deputy Managing Director/|
|Whole time Director|
|Salary and contribution to provident and other funds|16.39|12.04|
|Value of perquisites|2.58|2.36|
|Commission|18.00|12.00|
|SUB-TOTAL|36.97|26.40|
|(b) Remuneration to Non Executive Directors|
|Commission|0.90|0.84|
|Directors’ sitting fees|0.29|0.27|
|Other fees|0.06|0.14|
|SUB-TOTAL|1.25|1.25|
|TOTAL|38.22|27.65|

----- End of picture text -----

ii) Computation of managerial remuneration in accordance with section 197 of the Companies Act, 2013

==> picture [424 x 41] intentionally omitted <==

----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
Profit before taxation 2,155.04 1,309.97
----- End of picture text -----

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----- Start of picture text -----

||||
|---|---|---|
|Add:|
|Managerial remuneration including commission|38.22|27.65|
|Loss/ write off of fixed assets as per accounts|10.73|1.37|
|Provision for doubtful debts/ advances/ investments|(1.68)|1.44|
|Sub Total|47.27|30.46|
|Less:|
|Profit on sale of fixed assets as per accounts|3.09|0.39|
|Net Gain on financial assets measured at FVTPL|7.06|25.45|
|Excess Provision written back|2.59|11.42|
|Sub Total|12.74|37.26|

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Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

==> picture [423 x 41] intentionally omitted <==

----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
Profit as per section 197 of the Companies Act, 2013 2,189.57 1,303.17
----- End of picture text -----

==> picture [423 x 126] intentionally omitted <==

----- Start of picture text -----

||||||
|---|---|---|---|---|
|Maximum remuneration as commission and/ or salary including|218.96|130.32|
|perquisites @ 10% of net profit of||2,189.57 Crores (Previous| |year:||1,303.17 Crores) which can be paid to Managing Directors/|
|Whole time Directors under section 197 of the 2013 Act|
|Remuneration paid/ payable to Managing Directors /|36.97|26.40|
|Whole Time Directors|
|Maximum remuneration payable to Non-Executive Directors @|21.90|13.03|
|1% of net profit of||2,189.57 Crores (Previous year:||1,303.17|
|Crores) under section 197 of the 2013 Act|
|Remuneration paid/ payable to Non-Executive Directors|1.25|1.25|

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(c) The Company has elected to continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items as described in Para D13 AA of Ind AS 101. Accordingly, exchange loss/ (gain) arising on all long term monetary items financed or re-financed on or before March 31, 2016 relating to acquisition of following depreciable assets are added to/ adjusted from the cost of such assets/ capital work in progress and will be depreciated over the balance useful life of such assets.

==> picture [423 x 68] intentionally omitted <==

----- Start of picture text -----

||||
|---|---|---|
|Exchange loss/ (gain) added/ (adjusted)|Year ended|Year ended|
|March 31, 2022|March 31, 2021|
|Property, plant and equipment|
|- Plant and equipment|5.90|(8.60)|
|5.90|(8.60)|

----- End of picture text -----

The cumulative exchange loss/ (gain) added/ (adjusted) and remaining unamortised as at March 31, 2022 is 122.66 Crores (Previous year: 130.49 Crores).

(d) Disclosures pursuant to section 186(4) of the Companies Act, 2013 and regulation 34(3) and 53(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, as applicable:
(i) Details of guarantees:

==> picture [404 x 40] intentionally omitted <==

----- Start of picture text -----

|||
|---|---|
|Nature of Guarantees|Purpose|
|Refer note 31 (c) above|To secure the financial facilities sanctioned to subsidiaries by banks and|
|other companies.|

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(ii) Details of investments:

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----- Start of picture text -----

|||
|---|---|
|Nature of Investments|Purpose|
|Refer note 5.1 above|Investment in wholly owned subsidiaries.|

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262 Annual Report 2021-22

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CORPORATE OVERVIEW STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

(iii) Details of unsecured loans given:

==> picture [423 x 28] intentionally omitted <==

----- Start of picture text -----

Particulars of loans Terms As at As at
March 31, 2022 March 31, 2021
----- End of picture text -----

SRF Global BV	Principal amount repayable	Principal amount repayable	Principal amount repayable
(denominated in USD) -	from March 2023	to March 2025
given for repayment of	(Previous year: December 2021
existing borrowings and general corporate purpose	to March 2023). Interest on a fxed rate basis, payable annually. The efective yield is in compliance
	with Section	186	of the
	Companies Act, 2013.
As at the beginning of the year				438.90	-
Given during the year				227.45	439.45
Received back during the year				(274.66)	-
Foreign currency exchange				5.89	(0.55)
fuctuation gain / (loss)
As at end of the year				397.58	438.90
Maximum balance outstanding				611.97	439.45
SRF Global BV	Principal amount	repayable in
(denominated in EUR) - given for prepayment of	June 2023. Interest on a fxed rate basis, payable annually.
existing borrowings	The efective yield	is in compliance
	with Section	186	of the
	Companies Act, 2013.
As at the beginning of the year				171.55	-
Given during the year				-	178.03
Foreign currency exchange				(3.41)	(6.48)
fuctuation gain / (loss)
As at end of the year				168.14	171.55
Maximum balance outstanding				171.55	178.03
SRF Altech Limited	Repayabe on		demand.
(denominated in	Interest payable	within	60 days
INR) - given for	from the end of calender quarter
incorporation expenses	at 5% per annum.
As at the beginning of the year				-	-
Given during the year				2.75	-
Received back during the year				(2.75)	-
As at end of the year				-	-
Maximum balance outstanding				2.75	-

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

(e) The Company has established a comprehensive system of maintenance of information and documents as required by transfer pricing legislation under section 92D for its international transactions as well as specified domestic transactions. Based on the transfer pricing regulations/ policy, the transfer pricing study for the year ended March 31, 2022 is to be conducted on or before due date of the filing of return and the Company will further update above information and records based on the same and expects these to be in existence latest by that date. Management believes that all the above transactions are at arm’s length price and the aforesaid legislations will not have impact on the financial statement, particularly on the amount of tax expense and provision for taxation.

(f) Disclosure on corporate social responsibility expense:

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

(i)	Amount required to be spent by the company	18.61	12.88
	during the year
(ii)	Amount of expenditure incurred	19.06 *	10.18
(iii)	Shortfall at the end of the year	-	2.70 ^
(iv)	Total of previous years shortfall	-	-
(v)	Reason of shortfall	-	Pertains to
			ongoing projects
(vi)	Nature of CSR activities	School education, disaster management,
		environmental projects, Covid 19 Relief,
		Vocational skill and livelihoods projects
		and promotion of art and cultural projects.
(vii)	Details of related party transactions	21.38	9.18
(viii)	Provision made with respect to a liability incurred by	-	-
	entering into a contractual obligation

^ Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, the unspent amount was subsequently deposited in a “Unspent CSR Account” and also utilised during the year ended March 31, 2022.
This includes 18.68 Crores pertaining to current year and 0.37 Crore pertaining to previous year. In accordance with the above amended rules, the Company had taken credit for 0.37 Crore for excess CSR expenditure incurred during financial year 2019-20 and adjusted the same towards the CSR obligation for financial year 2020-21. However, the Ministry of Corporate Affairs (MCA), through its circular dated August 25, 2021, clarified that the companies cannot set off excess CSR amount spent prior to financial year 2020-21. Accordingly, an amount of 0.37 crore has been transferred to one of the specified funds prescribed under Schedule VII to the Companies Act, 2013 before September 30, 2021.

264 Annual Report 2021-22

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

(g) OTHER STATUTORY INFORMATION

(i) Analytical ratios:

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----- Start of picture text -----

Year Year % Reason for
ended ended change change, wherever
March 31, March 31, more than 25%
2022 2021
----- End of picture text -----

(i)	Current ratio (Total current	1.35	1.43	(5.57)% Not applicable
	assets / Total current liabilities)
(ii)	Debt-equity ratio (Total debt	0.38	0.42	10.03% Not applicable
	including lease liabilities
	/ Total equity)
(iii)	Debt service coverage ratio	4.06	1.70	138.32% Better operating		margins
	[(Earnings before depreciation,			resulting in higher cash fows,
	interest and tax - current tax)			lower cost of borrowing,
	/ (Gross interest and lease			and lower	scheduled
	payments + scheduled principal			principal repayment			of
	repayment of long term debts)]			long term debts.
(iv)	Return on equity ratio (Proft	21.65%	16.85%	28.50% Increase in PAT by		62.91%
	after tax / Average equity)			from`925.06	Crores		to
				`1507.01 Crores.
(v)	Inventory turnover ratio (Sale of	6.48	5.75	12.70% Not applicable
	products / Average inventory)
(vi)	Trade receivables turnover ratio	8.33	7.74	7.63% Not applicable
	(Sale of products / Average
	trade receivables)
(vii)	Trade payables turnover ratio	3.95	3.17	(24.65)% Not applicable
	(Purchases of raw materials /
	Average trade payables)
(viii)	Net capital turnover ratio (Sale	8.82	6.30	39.97% Increase in sales turnover.
	of products / Working capital)
(ix)	Net proft ratio (Proft after	15.14%	13.24%	14.38% Not applicable
	tax / Total revenue from
	operations including other
	operating income)
(x)	Return on capital employed	20.41%	15.51%	31.62% Higher earnings		before
	[Earnings before interest and			interest and tax by		58.28%
	tax / (Total equity - other			and capital	employed
	intangible assets - goodwill			increase by 20.26%.
	+ total debt + deferred
	tax liability)]
(xi)	Return on investment * (Income	6.09%	5.41%	12.57% Not applicable
	generated from investments /
	Weighted average investments)

Notes to the standalone financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

(ii) Details of title deeds of immovable property not held in name of the Company:

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----- Start of picture text -----

Relevant Description Gross Title deeds Whether title Property Reason for not
line item of item of carrying held in the deed holder is a held since being held in
in the property value name of promoter, director which the name of the
Balance or relative of date Company
sheet promoter / director
or employee of
promoter / director
----- End of picture text -----

Right-of-	Land at	`109.29	Gujarat	From	The execution
use assets	Bharuch,	Crores	Industrial	June 2009	of lease deed of
	Dahej,	(carrying	Development	onwards	land in respect
	Gujarat	amount)	Corporation	(by	of 1,165,437
			(GIDC)	multiple	square meters of
			at Dahej,	allotment	leasehold land
			Gujarat	orders)	already alloted
					(out of a total
					of 1,181,776
					square meters)
					to the Company
					is pending. As a
					process agreed
					with GIDC, the
					same will be
					executed once the
					entire / substantial
					portion of the
					above piece of
					land is allotted
					/ handed over to
					the Company.

(iii) The Company does not have any transactions with companies which are struck off, except the following:

Name of the struck of company	Nature of transactions with struck of company	Balance outstanding as at March 31, 2022	Balance outstanding as at March 31, 2021	Relationship with the struck of company, if any
Jyotsna Engineers &	Receivables	^	^	Vendor
Consultants Private Limited
Krishna Freeze Private Limited	Payables	0.01	0.01	Customer
Perfect Refcon & Tools	Payables	0.01	0.01	Customer
Private Limited

^ Amount in absolute 2,000 (Previous year: 2,000)

Mutual funds, bonds and debentures are considered for the purpose of computing return on investment.

266

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the standalone financial statements

for the year ended March 31, 2022

Independent Auditor’s Report

(All amounts in ` Crores, unless otherwise stated)

(iv) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(v) The Company is not declared a wilful defaulter by any bank or financial institution or any other lender.
(vi) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(vii) The company has complied with the number of layers prescribed under section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.
(viii) There are no funds which have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
- a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or
- b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ix) There are no funds which have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall:
- a) directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or
- b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(x) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
(xi) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(h) The figures for the previous year have been regrouped wherever necessary to comply with amendments in Schedule III of the Companies Act, 2013.

As per our report of even date attached For and on behalf of the Board of Directors For B S R & Co. LLP Chartered Accountants ICAI Firm registration no. 101248W / W-100022

Kaushal Kishore Ashish Bharat Ram Partner Chairman and Managing Membership No.: 090075 Director Place : Gurugram DIN - 00671567 Date : May 27, 2022 Place : Gurugram Date : May 09, 2022

Kartik Bharat Ram

Joint Managing Director DIN - 00008557 Place : Gurugram Date : May 09, 2022

Bharti Gupta Ramola Rajat Lakhanpal Director Vice President DIN - 00356188 (Corporate Compliance) Place : Gurugram and Company Secretary Date : May 09, 2022 Place : Gurugram Date : May 09, 2022

Rahul Jain

President & CFO Place : Gurugram Date : May 09, 2022

To the Members of SRF Limited

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the consolidated financial statements of SRF Limited (hereinafter referred to as the “Holding Company”) and its subsidiaries (Holding Company and its subsidiaries together referred to as “the Group”), which comprise the consolidated balance sheet as at 31 March 2022, and the consolidated statement of profit and loss (including other comprehensive income), consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the consolidated financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of other auditors on separate financial statements of such subsidiaries as were audited by the other auditors, the aforesaid consolidated financial statements give the information required by the Companies Act, 2013 (“Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group as at 31 March 2022, of its consolidated profit and other comprehensive income, consolidated changes in equity and consolidated cash flows for the year then ended.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in terms of the Code of Ethics issued by the Institute of Chartered Accountants of India and the relevant provisions of the Act, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence obtained by us along with the consideration of reports of the other auditors referred to in paragraph (a) of the “Other Matters” section below, is sufficient and appropriate to provide a basis for our opinion on the consolidated financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment and based on the consideration of reports of other auditors on separate financial statements of components audited by them, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

268 Annual Report 2021-22

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Description of Key Audit Matter

Accounting for derivatives

The key audit matter

An important element of Group’s fund-raising strategy involves various types of borrowings, including, foreign currency denominated borrowings and a combination of fixed and floating interest rates, and also foreign currency denominated loans and advances to other parties. The Group’s operating activities are also exposed to significant foreign exchange risk (refer to note 40 of the consolidated financial statements).

The Group uses derivative financial instruments to mitigate foreign currency risk and interest rate risk primarily through foreign currency forward exchange contracts and interest rate swaps.

Further, the Group has been using hedge relationship designation as per criteria set out in relevant Indian accounting standards.

Accounting thereof and related presentation and disclosures of these transactions require significant judgement.

Given the significant level of judgement and estimation involved and the quantitative significance, we have determined this to be a key audit matter.

Other Information

The Holding Company’s Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Holding Company’s annual report, but does not include the consolidated financial statements and our auditor’s report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed and based on the work done/ audit report of other auditors, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

How the matter was addressed in our audit

In view of the significance of the matter we applied the following audit procedures in this area, among others to obtain sufficient appropriate audit evidence:

– Tested the design, implementation and operating effectiveness of controls over the Group’s treasury and other related functions which directly impact the relevant account balances and transactions, including hedge accounting.

For selected samples via statistical sampling, obtained external confirmations from counterparties of the year end positions as well as agreed to original agreements.

Assessed the adequacy of disclosures in the financial statements in respect of both non-derivative and derivative financial instruments.

Management’s and Board of Directors’ Responsibilities for the Consolidated Financial Statements

The Holding Company’s Management and Board of Directors are responsible for the preparation and presentation of these consolidated financial statements in term of the requirements of the Act that give a true and fair view of the consolidated state of affairs, consolidated profit/ loss and other comprehensive income, consolidated statement of changes in equity and consolidated cash flows of the Group in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. The respective Management and Board of Directors/Trustees of the companies/entity included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of each company/entity and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and

maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements by the Management and Board of Directors of the Holding Company, as aforesaid.

In preparing the consolidated financial statements, the respective Management and Board of Directors/ Trustees of the companies/entity included in the Group are responsible for assessing the ability of each company/entity to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors/ Trustees either intends to liquidate the Company/ Entity or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors/Trustees of the companies/entity included in the Group are responsible for overseeing the financial reporting process of each company/entity.

Auditor’s Responsibilities for the Audit of

the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis

for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management and Board of Directors.
Conclude on the appropriateness of the Management and Board of Directors use of the going concern basis of accounting in preparation of consolidated financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the appropriateness of this assumption. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of such entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of the financial information of such entities included in the consolidated financial statements of which

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FINANCIAL STATEMENTS

we are the independent auditors. For the other entities included in the consolidated financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion. Our responsibilities in this regard are further described in paragraph (a) of the section titled “Other Matters” in this audit report.

We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated financial statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

(a) We did not audit the financial information of eight subsidiaries, whose financial information reflect total assets (before consolidation adjustments) of 4,120.82 Crores as at 31 March 2022, total revenues (before consolidation adjustments) of 2,613.96 Crores and net cash inflows (before consolidation adjustments) amounting to ` 79.23 Crores for the year ended on that date, as considered in the consolidated financial statements. These financial statements have been audited by other auditors whose reports

have been furnished to us by the Management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries and our report in terms of sub-section (3) of Section 143 of the Act, in so far as it relates to the aforesaid subsidiaries is based solely on the reports of the other auditors.

Certain of these subsidiaries are located outside India whose financial statements and other financial information have been prepared in accordance with accounting principles generally accepted in their respective countries and which have been audited by other auditors under generally accepted auditing standards applicable in their respective countries. The Holding Company’s management has converted the financial information of such subsidiaries located outside India from accounting principles generally accepted in their respective countries to accounting principles generally accepted in India. We have audited these conversion adjustments made by the Holding Company’s management. Our opinion in so far as it relates to the balances and affairs of such subsidiaries located outside India is based on the reports of other auditors and the conversion adjustments prepared by the management of the Holding Company and audited by us.

Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and the financial statements certified by the Management.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by the Central Government of India in terms of Section 143 (11) of the Act, we give in the “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2 (A) As required by Section 143(3) of the Act, based on our audit and on the consideration of reports of the other auditors on separate financial statements of such subsidiaries as were audited by other auditors, as noted in

the “Other Matters” paragraph, we report, to the extent applicable, that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements.
b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books and the reports of the other auditors.
c) The consolidated balance sheet, the consolidated statement of profit and loss (including other comprehensive income), the consolidated statement of changes in equity and the consolidated statement of cash flows dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements.
d) In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors of the Holding Company as on 31 March 2022 taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors of its subsidiary companies incorporated in India, none of the directors of the Group companies incorporated in India is disqualified as on 31 March 2022 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Holding Company and its subsidiary companies incorporated in India and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”.
B. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditor’s) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on separate financial statements of the subsidiaries, as noted in the “Other Matters” paragraph:
a) The consolidated financial statements disclose the impact of pending litigations as at 31 March 2022 on the consolidated financial position of the Group. Refer Note 33 to the consolidated financial statements.
b) Provision has been made in the consolidated financial statements, as required under the applicable law or Ind AS, for material foreseeable losses, on long-term contracts including derivative contracts. Refer Note 40 to the consolidated financial statements in respect of such items as it relates to the Group.
c) There has been no delay in transferring amounts to the Investor Education and Protection Fund by the Holding Company during the year ended 31 March 2022. There are no amounts which are required to be transferred to the Investor Education and Protection Fund by its subsidiary companies incorporated in India during the year ended 31 March 2022.
d) (i) The respective managements of the Company and its subsidiaries, which are incorporated in India whose financial statements have been audited under the Act have represented to us and the other auditors of such subsidiaries respectively that, to the best of its knowledge and belief, as disclosed in the note 47(f)(i) to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Holding Company or any of such subsidiaries to or in

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the circumstances performed by us and that performed by the auditors of the subsidiaries which are companies incorporated in India whose financial statements have been audited under the Act, nothing has come to our or other auditors’ notice that has caused us or the other auditors to believe that the representations under sub-clause (i) and (ii) of Rule 11(e) contain any material mis-statement.

any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Holding Company or any of such subsidiaries (“Ultimate Beneficiaries”) or
- e) The dividend declared or paid during the year by the Holding Company is in compliance with Section 123 of the Act. The subsidiary companies incorporated in India have neither declared nor paid any dividend during the year.
provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) The respective managements of the Company and its subsidiaries which are companies incorporated in India whose financial statements have been audited under the Act have represented to us and the other auditors of such subsidiaries respectively, that, to the best of its knowledge and belief, as disclosed in the note 47(f)(ii) to accounts, no funds have been received by the Holding Company or any of such subsidiaries from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Holding Company or any of such subsidiaries shall:
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 - C. With respect to the matter to be included in the Auditor’s Report under Section 197(16) of the Act:
```
such subsidiaries respectively, In our opinion and according to the that, to the best of its knowledge information and explanations given to us and belief, as disclosed in the and based on the reports of the statutory note 47(f)(ii) to accounts, no auditors of such subsidiary companies funds have been received by the incorporated in India which were not audited Holding Company or any of such by us, the remuneration paid during the subsidiaries from any persons or current year by the Holding Company and entities, including foreign entities its subsidiary companies to its directors is (“Funding Parties”), with the in accordance with the provisions of Section understanding, whether recorded 197 of the Act. The remuneration paid to in writing or otherwise, that the any director by the Holding Company and Holding Company or any of such its subsidiary companies is not in excess of subsidiaries shall: the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has
directly or indirectly, lend not prescribed other details under Section or invest in other persons 197(16) of the Act which are required to be or entities identified in any commented upon by us. manner whatsoever by or on behalf of the Funding Parties (“Ultimate Beneficiaries”) or For B S R & Co. LLP
```
    - For **B S R & Co. LLP**

    - Chartered Accountants
```
provide any guarantee, Firm’s Registration No.: 101248W/W-100022 security or the like on behalf of the Ultimate Beneficiaries.
- Kaushal Kishore Partner
- Place: Gurugram Membership No.: 090075 Date: 27 May 2022 UDIN: 22090075AJTDSI3005
(iii) Based on the audit procedures that have been considered reasonable and appropriate in

Annexure A to the Independent Auditor’s Report on Consolidated Financial Statements

(Referred to in our report of even date)

Clause (xxi) of Companies (Auditor’s Report) Order, 2020

In our opinion and according to the information and explanations given to us, there are no qualifications or adverse remarks by the respective auditors in the Companies (Auditor’s Report) Order, 2020 reports of the companies incorporated in India and included in the consolidated financial statements.

For B S R & Co. LLP Chartered Accountants Firm’s Registration No.: 101248W/W-100022

Kaushal Kishore

Partner Membership No.: 090075 UDIN: 22090075AJTDSI3005

Place: Gurugram Date: 27 May 2022

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STATUTORY REPORTS

FINANCIAL STATEMENTS

Annexure B to the Independent Auditors’ report on the consolidated financial

statements of SRF Limited for the year ended 31 March 2022

Report on the internal financial controls with reference to the aforesaid consolidated financial statements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013.

established by the respective Company considering the essential components of internal control stated in the Guidance Note. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013 (hereinafter referred to as “the Act”).

(Referred to in paragraph 2(A)(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

Opinion

In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended 31 March 2022, we have audited the internal financial controls with reference to consolidated financial statements of SRF Limited (hereinafter referred to as “the Holding Company”) and such companies incorporated in India under the Companies Act, 2013 which are its subsidiary companies, as of that date.

Auditors’ Responsibility

Our responsibility is to express an opinion on the internal financial controls with reference to consolidated financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls with reference to consolidated financial statements. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to consolidated financial statements were established and maintained and if such controls operated effectively in all material respects.

In our opinion, the Holding Company and such companies incorporated in India which are its subsidiary companies, have, in all material respects, adequate internal financial controls with reference to consolidated financial statements and such internal financial controls were operating effectively as at 31 March 2022, based on the internal financial controls with reference to consolidated financial statements criteria established by such companies considering the essential components of such internal controls stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the “Guidance Note”).

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to consolidated financial statements and their operating effectiveness. Our audit of internal financial controls with reference to consolidated financial statements included obtaining an understanding of internal financial controls with reference to consolidated financial statements, assessing the risk that a material weakness exists,

Management’s Responsibility for Internal

Financial Controls

The respective Company’s management and the Board of Directors are responsible for establishing and maintaining internal financial controls with reference to consolidated financial statements based on the criteria

and testing and evaluating the design and operating effectiveness of the internal controls based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors of the relevant subsidiary companies in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls with reference to consolidated financial statements.

Meaning of Internal Financial controls with Reference to Consolidated Financial Statements

A company’s internal financial controls with reference to consolidated financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial controls with reference to consolidated financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection

of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial controls with Reference to consolidated Financial Statements

Because of the inherent limitations of internal financial controls with reference to consolidated financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to consolidated financial statements to future periods are subject to the risk that the internal financial controls with reference to consolidated financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Other Matters

Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls with reference to consolidated financial statements insofar as it relates to two subsidiary companies, which are companies incorporated in India, is based on the corresponding reports of the auditors of such companies incorporated in India.

For B S R & Co. LLP Chartered Accountants Firm’s Registration No.: 101248W/W-100022

Kaushal Kishore

Partner

Place: Gurugram Membership No.: 090075 Date: 27 May 2022 UDIN: 22090075AJTDSI3005

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Consolidated Balance Sheet

as at March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Particulars Note No. As at As at
March 31 , 2022 March 31 , 2021
ASSETS
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Non-current assets
Property, plant and equipment	4	8,050.54	7,497.21
Right-of-use assets	43	255.35	216.76
Capital work-in-progress	4.1	1,671.63	772.26
Goodwill	5	-	0.62
Other intangible assets	6	119.40	112.37
Financial assets
(i) Investments	7	4.16	4.16
(ii) Loans	8	14.72	10.55
(iii) Other fnancial assets	10	140.52	80.58
Deferred tax assets	9	11.60	18.14
Non current tax assets (net)	22	21.31	33.74
Other non-current assets	11	233.06	244.10
Total non-current assets		10,522.29	8,990.49
Current assets
Inventories	12	2,138.47	1,465.82
Financial assets
(i) Investments	7	316.74	412.52
(ii) Trade receivables	13	1,792.45	1,274.56
(iii) Cash and cash equivalents	14	450.48	138.29
(iv) Bank balances other than above	15	8.87	143.71
(v) Loans	8	8.80	11.21
(vi) Other fnancial assets	10	225.83	225.85
Other current assets	11	309.68	266.96
Total current assets		5,251.32	3,938.92
Assets classifed as held for sale TOTAL ASSETS	42 C	3.00 15,776.61	- 12,929.41
EQUITY AND LIABILITIES
Equity
Equity share capital	16	297.44	60.26
Other equity	17	8,267.92	6,796.16
Total equity		8,565.36	6,856.42
Liabilities
Non-current liabilities
Financial liabilities
(i) Borrowings	18	1,753.30	1,965.01
(ii) Lease liabilities	43	95.18	63.83
(iii) Other fnancial liabilities	21	153.86	0.54
Provisions	19	51.58	43.55
Deferred tax liabilities (net)	9	677.46	386.16
Other non-current liabilities	23	39.56	42.77
Total non - current liabilities		2,770.94	2,501.86

Consolidated Balance Sheet (CONTD.)

as at March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Particulars Note No. As at As at
March 31 , 2022 March 31 , 2021
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Current liabilities
Financial liabilities
(i) Borrowings	18	1,786.05	1,425.95
(ii) Lease liabilities	43	20.66	13.80
(iii) Trade payables	20
a) Total outstanding dues of micro enterprises		55.98	33.37
and small enterprises
b) Total outstanding dues of creditors other than		2,040.37	1,551.82
micro enterprises and small enterprises
(iv) Other fnancial liabilities	21	371.70	432.29
Other current liabilities	23	143.97	92.73
Provisions	19	7.38	8.68
Current tax liabilities(Net)	22	14.20	12.49
Total current liabilities		4,440.31	3,571.13
Total Liabilities		7,211.25	6,072.99
TOTAL EQUITY AND LIABILITIES		15,776.61	12,929.41
Summary of signifcant accounting policies	1-3
See accompanying notes to the consolidated	4 to 47
fnancial statements

As per our report of even date attached

For and on behalf of the Board of Directors

For B S R & Co. LLP Chartered Accountants ICAI Firm registration no. 101248W / W-100022

Kaushal Kishore Ashish Bharat Ram Kartik Bharat Ram Bharti Gupta Ramola Partner Chairman and Managing Joint Managing Director Director Membership No.: 090075 Director DIN - 00008557 DIN - 00356188 Place : Gurugram DIN - 00671567 Place : Gurugram Place : Gurugram Date : May 27, 2022 Place : Gurugram Date : May 09, 2022 Date : May 09, 2022 Date : May 09, 2022

Rahul Jain Rajat Lakhanpal President & CFO Vice President Place : Gurugram (Corporate Compliance) Date : May 09, 2022 and Company Secretary Place : Gurugram Date : May 09, 2022

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Consolidated Statement of Profit and Loss

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Particulars Note No. Year ended Year ended
March 31, 2022 March 31, 2021
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I	Revenue from operations	24	12,433.66	8,400.04
II	Other income	25	115.51	66.35
III	Total Income (I + II)		12,549.17	8,466.39
IV	Expenses
	Cost of materials consumed	26.1	6,171.10	4,027.68
	Purchases of stock-in-trade	26.2	175.59	62.92
	Changes in inventories of fnished goods, work-in-	26.3	(279.75)	(71.66)
	progress and stock-in-trade
	Employee benefts expense	27	780.00	621.40
	Finance costs	28	115.93	133.95
	Depreciation and amortisation expense	29	517.23	453.08
	Other expenses	30	2,483.52	1,626.37
	Total Expenses (IV)		9,963.62	6,853.74
V	Proft before tax from continuing operations		2,585.55	1,612.65
	(III - IV)
VI	Tax expense related to continuing operations	31
	Current tax		657.53	357.99
	Deferred tax
	- MAT credit entitlement		(25.27)	(5.38)
	- Others		64.37	61.79
	Total tax expense related to continuing		696.63	414.40
	operations
VII	Proft for the year from continuing operations		1,888.92	1,198.25
	(V - VI)
VIII	Proft / (loss) before tax from discontinued	42 A	-	(2.73)
	operations
IX	Tax expense / (credit) of discontinued	31	-	(2.42)
	operations
X	Proft for the year from discontinued		-	(0.31)
	operations (VIII - IX)
XI	Total Proft for the year (VII + X)		1,888.92	1,197.94

Consolidated Statement of Profit and Loss (CONTD.)

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Particulars Note No. Year ended Year ended
March 31, 2022 March 31, 2021
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XII	Other comprehensive income
A	Items that will not be reclassifed to proft or loss
	(i) Remeasurements of the defned beneft plans	17.2, 36.2	(7.47)	2.68
	Income tax on item (i) above	17.2, 32	2.55	(0.84)
B	Items that will be reclassifed to proft or loss
	(i) Exchange diferences on translation of foreign	17.9	1.30	36.44
	operations
	(ii) Efective portion of gains and loss on	17.3	39.99	132.33
	designated portion of hedging instruments in a cash fow hedge
	Income tax on item (ii) above	32	(13.03)	(46.24)
	(iii) Cost of hedging reserve	17.4	(2.17)	3.46
	Income tax on item(iii)above	32	(0.45)	(0.33)
	Total other comprehensive income for the		20.72	127.50
	year, net of taxes(A(i) + B(i+ii+iii))
XIII	Total comprehensive income for the year		1,909.64	1,325.44
	(XI + XII)
	Basic and Diluted earning per equity share (in`)	39
	From continuing operations		63.75	40.58
	From discontinued operations		-	(0.01)
	From continuing and discontinued operations		63.75	40.57
	Summary of signifcant accounting policies	1-3
	See accompanying notes to the consolidated fnancial statements	4 to 47

As per our report of even date attached For and on behalf of the Board of Directors

For B S R & Co. LLP Chartered Accountants ICAI Firm registration no. 101248W / W-100022

Rahul Jain

Rajat Lakhanpal

President & CFO Vice President Place : Gurugram (Corporate Compliance) Date : May 09, 2022 and Company Secretary Place : Gurugram Date : May 09, 2022

280 Annual Report 2021-22

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Consolidated Cash Flow Statement

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Particulars Year ended Year ended
March 31, 2022 March 31, 2021
A CASH FLOW FROM OPERATING ACTIVITIES
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	Proft (loss) before tax - Continuing Operations	2,585.55	1,612.65
	- Discontinued Operations	-	(2.73)
	Adjustments for:
	Finance costs	115.93	134.01
	Interest income	(24.00)	(9.02)
	Net gain on sale of property, plant and equipment Net gain on fnancial assets measured at fair value through proft and loss Credit impaired assets provided / (written back)	(2.90) (7.06) 0.95	(5.99) (25.45) 11.94
	Amortisation of grant income	(1.76)	(1.38)
	Depreciation and amortisation expense	517.23	453.08
	Property, plant and equipment and inventory discarded / provided	18.80	3.40
	Provision / liabilities no longer required written back Net unrealised currency exchange fuctuations loss /(gain) Employee share based payment expense	(2.71) (39.44) 11.11	(11.99) (9.05) 0.97
	Stamp duty on purchase of investments	0.08	0.15
	Adjustments for (increase) /decrease in operating assets:-
	Trade receivables	(507.14)	(400.10)
	Inventories	(665.67)	(259.83)
	Loans (current)	(1.24)	1.07
	Loans (non-current)	(4.16)	(0.61)
	Other assets (current)	(23.11)	35.70
	Other assets (non-current)	(1.85)	(3.96)
	Adjustments for increase / (decrease) in operating liabilities:-
	Trade payables	510.11	480.23
	Provisions	6.68	7.46
	Other liabilities (non-current)	0.34	-
	Other liabilities (current)	21.58	16.44
	Cash generated from operations	2,507.32	2,026.99
	Income taxes paid (net of refunds)	(401.60)	(255.31)
	Net cash generated from operating activities	2,105.72	1,771.68
B	CASH FLOW FROM INVESTING ACTIVITIES
	Payment made for acquisition of business by subsidiary	(9.96)	-
	(Refer note 46)
	Net sale / (purchases) of mutual funds	102.84	(188.57)
	Stamp duty on purchase of investments	(0.08)	(0.15)
	Interest received	31.60	0.09
	Bank balances not considered as cash and cash equivalents	104.98	(134.52)
	Payment for purchase of property, plant, equipment, capital work-in-	(1,832.07)	(1,214.35)
	progress and intangible assets
	Proceeds from disposal of property, plant and equipment	14.95	9.66
	Grant Received from Government of Republic of Hungary	-	28.16
	Net cash used in investing activities	(1,587.74)	(1,499.68)
C	CASH FLOW FROM FINANCING ACTIVITIES
	Proceeds from issue of shares	0.20	750.00
	Cost incurred on issue of shares	-	(11.99)
	Proceeds from borrowings (Non-current)	533.15	1,304.84
	Repayment of borrowings (Non-current)	(470.94)	(1,990.41)
	Net proceeds / (repayment) from borrowings (Current)	84.98	14.78
	Dividends on equity share capital paid	(211.74)	(140.78)
	Payment towards lease liability	(25.68)	(20.19)
	Finance costs paid Net cash used in fnancing activities	(117.25) (207.28)	(157.36) (251.11)
D	EFFECT OF EXCHANGE RATE CHANGES	1.49	0.96
	Net movement in cash and cash equivalents	312.19	21.85
	Cash and cash equivalents at the beginning of the year	138.29	116.44
	Cash and cash equivalents at the end of theyear(Refer to note 14)	450.48	138.29

Consolidated Cash Flow Statement (CONTD.)

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Notes:

(i) The cash flow statement has been prepared under the indirect method as set out in Indian Accounting Standard (Ind AS) -7 on “Statement of Cash Flows”
(ii) During the year, the Company paid in cash 21.75 crores (Previous year: 10.18 crores) towards corporate social responsibility (CSR) expenditure.
(iii) For cash flow information of discontinued operations, Refer note 42 A
(iv) The following table discloses changes in liabilities arising from historical activities including both cash and non cash changes.

Particulars	As at March 31, 2021	Cash fow from fnancing activities Upfront fees amortised	Cash fow from fnancing activities Upfront fees amortised	Exchange fuctuation changes#	Exchange fuctuation changes#	Non-cash changes Finance cost# Interim dividend declared	Non-cash changes Finance cost# Interim dividend declared	Lease liability recognised	Utilisation of securities premium	Utilisation of securities premium	As at March 31, 2022
Equity share capital	60.26	0.20	-		-	-	-	-	236.98		297.44
Security Premium	736.25	-	-		-	-	-	-	(226.69)		509.56
Non current borrowings ^	2,425.26	62.20	2.24		7.79	-	-	-		-	2,497.49
Current borrowings*	965.70	84.98	-	(8.82)		-	-	-		-	1,041.86
Interest accrued	5.79	(117.25)	-		-	115.93	-	-		-	4.47
Lease liability	77.63	(25.68)	-		-	8.69	-	55.20		-	115.84
Dividend	6.57	(211.74)	-		-	-	211.89	-		-	6.72
Total	4,277.46	(207.29)	2.24	(1.03)		124.62	211.89	55.20	10.29		4,473.38
Particulars	As at March 31, 2020	Cash fow from fnancing activities	Upfront fees amortised		Non-cash changes Exchange fuctuation changes# Finance cost# Interim dividend declared Lease liability recognised						As at March 31, 2021
Equity share capital	58.50	1.76		-		-	-	-	-		60.26
Security Premium (net of	-	736.25		-		-	-	-	-		736.25
issue expenses)
Non current borrowing ^	3,091.38	(685.57)		4.34		15.11	-	-	-		2,425.26
Current borrowings*	955.44	14.78		-		(4.52)	-	-	-		965.70
Interest accrued	29.14	(157.36)		-		-	134.01	-	-		5.79
Lease liability	87.70	(20.19)		-		-	6.49	-	3.63		77.63
Dividend	6.04	(140.78)		-		-	-	141.31	-		6.57
Total	4,228.20	(251.11)		4.34		10.59	140.50	141.31	3.63		4,277.46
^ including current maturities of long term borrowings
* excluding current maturity of long term borrowings
# including amount capitalized
Summary of signifcant accounting policies						1-3
See accompanying notes to the consolidated fnancial statements						4 to 47

As per our report of even date attached For and on behalf of the Board of Directors

For B S R & Co. LLP

Chartered Accountants ICAI Firm registration no. 101248W / W-100022

Bharti Gupta Ramola

Kaushal Kishore Partner

Ashish Bharat Ram

Kartik Bharat Ram

Chairman and Managing Joint Managing Director Director Director DIN - 00008557 DIN - 00356188 DIN - 00671567 Place : Gurugram Place : Gurugram Place : Gurugram Date : May 09, 2022 Date : May 09, 2022 Date : May 09, 2022

Membership No.: 090075 Place : Gurugram Date : May 27, 2022

Rahul Jain

Rajat Lakhanpal

President & CFO Vice President Place : Gurugram (Corporate Compliance) Date : May 09, 2022 and Company Secretary Place : Gurugram Date : May 09, 2022

282

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Consolidated Statement of Changes In Equity

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

(a) Equity share capital

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Amount
Balance at March 31, 2020 58.50
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Changes Balance	in equity share capital during the year at March 31, 2021	1.76 60.26
Changes Balance	in equity share capital during the year at March 31, 2022	237.18 297.44

(b) Other Equity

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Particulars Reserves and Surplus Items of other comprehensive income Total
Capital General Capital Debenture Securities Employee Retained Foreign Equity Effective Cost of
reserve reserve redemption redemption Premium share earnings currency instruments portion of hedging
reserve reserve based translation through other cash flow reserve
payment reserve comprehensive hedge
reserve income
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Balance at March 31, 2020 Proft for the year Other comprehensive income for the	193.77 - -	573.77 - -	10.48 - -	75.00 - -	- - -	1.56 - -	4,117.69 1,197.94 1.84	(14.67) - 36.44	(4.22) - -	(78.56) - 86.09	- 3.13	4,874.82 1,197.94 127.50
year, net of income tax Total comprehensive income for	-	-	-	-	-	-	1,199.78	36.44	-	86.09	3.13	1,325.44
the year
Payment of dividend ^ Transfer from Debenture redemption	- -	- 75.00	- -	- (75.00)	- -	- -	(141.31) -	- -	- -	- -	- -	(141.31) -
reserve
Transfer to Debenture redemption	-	-	-	62.50	-	-	(62.50)	-	-	-	-	-
reserve
Employee share based payments to employees	-	-	-	-	-	0.96	-	-	-	-	-	0.96
Premium on issue of equity shares (net of issue expenses) ^	-	-	-	-	736.25	-	-	-	-	-	-	736.25
Balance at March 31, 2021 Proft for the year Other comprehensive income for the	193.77 - -	648.77 - -	10.48 - -	62.50 - -	736.25	2.52 - -	5,113.66 1,888.92 (4.92)	21.77 - 1.30	(4.22) - -	7.53 - 26.96	3.13 (2.62)	6,796.16 1,888.92 20.72
year, net of income tax Total comprehensive income for the year Payment of dividend ^ Tax on Dividend Employee share based payment	- - - -	- - - -	- - - -	- - - -	- - - -	- - 10.93	1,884.00 (211.89) - -	1.30 - - -	- - - -	26.96 - - -	(2.62) - - -	1,909.64 (211.89) - 10.93
expense
Recognised / (released) on vesting of	-	-	-	-	10.29	(10.23)	-	-	-	-	-	0.06
shares issued under employee share
purchase scheme Utilisation on issue of bonus equity	-	-	-	-	(236.98)	-	-	-	-	-	-	(236.98)
shares Balance at March 31, 2022	193.77	648.77	10.48	62.50	509.56	3.22	6,785.77	23.07	(4.22)	34.49	0.51	8,267.92

Refer note 17 ^ Refer note 16.1 Summary of significant accounting policies 1-3 See accompanying notes to the consolidated financial statements 4 to 47

For and on behalf of the Board of Directors

As per our report of even date attached

For B S R & Co. LLP Chartered Accountants ICAI Firm registration no. 101248W / W-100022

Rahul Jain Rajat Lakhanpal President & CFO Vice President Place : Gurugram (Corporate Compliance) Date : May 09, 2022 and Company Secretary Place : Gurugram Date : May 09, 2022

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

The functional currency of the Company is ‘INR’. The functional currencies of Group companies are USD, THB, ZAR and EURO. The financial statements are presented in INR and all values are rounded to the nearest crores, except when otherwise indicated.

CORPORATE INFORMATION

1

SRF Limited (“the Company”) is a public limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company’s equity shares are listed at the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The registered office of the Company is situated at The Galleria, DLF Mayur Vihar, Unit No. 236 and 237, Second Floor, Mayur Vihar Place, Noida Link Road, Mayur Vihar Phase I Extn, Delhi - 110091. The Company’s parent company is KAMA Holdings Limited.

The consolidated financial statements incorporate the financial statements of the holding group and its subsidiaries. Control is achieved when the group :

has power over the investee;

The principal activities of the Company and its subsidiaries (together the Group) are manufacturing, purchase and sale of technical textiles, chemicals, packaging films and other polymers.

is exposed, or has rights, to variable returns from its involvement with the investee; and
has the ability to use its power to affect its returns.

The consolidated financial statements were authorised for issue in accordance with a resolution of the directors on May 09, 2022.

Consolidation of a subsidiary begins when the group obtains control over the subsidiary and ceases when the group loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit and loss from the date the group gains control until the date when the group ceases to control the subsidiary.

2 SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Preparation

These consolidated financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), under the Companies (Indian Accounting Standards) Rules, 2015 notified under section 133 of the Companies Act 2013 (“the Act”) as amended thereafter and other relevant provisions of the Act.

Profit or loss and each component of other comprehensive income are attributed to the owners of the group and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the group and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

The consolidated financial statements have been prepared on an accrual basis and under the historical cost convention, except for the following assets and liabilities which have been measured at fair value:

Derivative financial instruments

Necessary adjustments are made in the consolidated financial statements of subsidiaries to bring their accounting policies in line with the Company’s accounting policies if any.

Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments)
Defined benefit plans - plan assets measured at fair value less present value of defined benefit obligation

All intragroup assets and liabilities, equity, income, expenses, and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

Share based payments

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

The subsidiaries considered in the preparation of these consolidated financial statements are: -

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Name of subsidiary Country of Proportion of Proportion of
incorporation ownership as at ownership as at
March 31, 2022 March 31, 2021
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Indian Subsidiaries
SRF Holiday Home Limited	India	100%	100%
SRF Altech Limited	India	100%	-
SRF Employees Welfare Trust (Controlled Trust)	India	*	*
Foreign Subsidiaries SRF Global BV	Netherlands	100%	100%
SRF Europe Kft (100% subsidiary	Hungary	100%	100%
of SRF Global BV)
SRF Industries (Thailand) Limited (100% subsidiary of SRF Global BV)	Thailand	100%	100%
SRF Industex Belting (Pty) Limited (100%	Republic	100%	100%
subsidiary of SRF Global BV)	of South Africa
SRF Flexipak (South Africa) (Pty) Limited	Republic	100%	100%
(100% subsidiaryof SRF Global BV)	of South Africa

By virtue of management control

An asset is treated as current when it is:

The group owns 22.60% (Previous year – 22.60%) in Malanpur Captive Power Limited and the same has not been considered for the purposes of consolidation, since the group does not exercise significant influence over Malanpur Captive Power Limited.

Expected to be realised or intended to be sold or consumed in normal operating cycle
Held primarily for the purpose of trading
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

The group owns 26.32% (Previous year – 26.32%) in Vaayu Renewable Energy (Tapti) Private Limited and the same has not been considered for the purposes of consolidation, since the group does not exercise significant influence over Vaayu Renewable Energy (Tapti) Private Limited.

All other assets are classified as non-current.

A liability is current when:

It is expected to be settled in normal operating cycle

The principal accounting policies are set out below.

It is held primarily for the purpose of trading
There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period
2.2 Current versus non-current classification The group presents assets and liabilities in the balance sheet based on current/non-current classification.
The group classifies all other liabilities as non-current.

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

Deferred tax assets and liabilities are classified

as non-current assets and liabilities.

Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the group has identified twelve months as its operating cycle for the purpose of current / non current classification of assets and liabilities.

Capital Work in Progress: Project under which assets are not yet ready for their intended use are carried at cost comprising direct cost, related incidental expenses and attributable interest.

Spare parts are capitalized when they meet the definition of PPE, i.e., when the group intends to use these for more than a period of 12 months.

2.3 Property, plant and equipment (PPE)

Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation and accumulated impairment losses, if any.

2.4 Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.

All items of property plant and equipment have been measured at fair value at the date of transition to Ind AS. The Group have opted such fair valuation as deemed cost at the transition date i.e. April 1, 2015.

Depreciation has been provided on the cost of assets less their residual values on straight line method on the basis of estimated useful life of assets determined by the Group which are different from the useful life as prescribed in Schedule II of the 2013 Act. The estimated useful life of the assets have been assessed based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc. and are as under:

Cost of acquisition or construction is inclusive of freight, duties, non recoverable taxes, incidental expenses and interest on loans attributable to the acquisition of qualifying assets, up to the date of commissioning of the assets.

Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for qualifying assets, upto the date of commissioning of the assets

Roads	40-50 years
Buildings (including	5-60 years
temporary structures)
Plant and equipment	2-40 years
Furniture and fxtures Ofce equipment	3-20 years 3-20 years
Vehicles	4-5 years

Freehold land is not depreciated.

Depreciation is calculated on a pro rata basis except, assets costing upto ` 5,000 each, which are fully depreciated in the year of purchase.

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Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

An item of property, plant and equipment or any significant part initially recognised of such item of property plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated statement of profit and loss when the asset is derecognised.

the previous GAAP and use that carrying value as its deemed cost as of transition date.

The estimated useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

An intangible asset is derecognised on disposal or when no future economic benefit are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when the asset is derecognised.

2.5 Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost.

Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any.

2.6 Research and development expenditure

Such development costs are capitalised if they can be reliably measured, the product or process is technically and commercially feasible and the Group has sufficient resources to complete the development and to use or sell the asset.

Trademarks / Brand Technical Knowhow Software	10-30 years 30-40 years 3-5 years
Other intangibles	2.5-12 years

Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation and accumulated impairment losses, if

The group has elected to continue with the carrying value of all of its intangibles assets recognised as on April 1, 2015 measured as per

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

any. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised over the period of expected future benefit. Amortisation expense is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset. During the period of development, the asset is tested for impairment annually.

impairment testing for an asset is required, the group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use.

Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.

2.7 Goodwill

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any.

For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units that is expected to benefit from the synergies of the combination.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples or other available fair value indicators.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.

The Group bases its impairment calculation on detailed budgets and forecast, which are prepared separately for each of the group’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of 5 years. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after 5th year. To estimate cash flow projections beyond periods covered by the most recent budgets/forecasts, group extrapolates cash flow projections in the budget using a steady or declining growth rate for subsequent years, unless an increasing rate can be justified.

On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

2.8 Impairment of tangible and intangible

assets other than goodwill
The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the group estimates the asset’s or CGU’s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.

about how and for what purpose the asset is used is predetermined, the Group has the right to direct the use of the asset if either:

the Group has the right to operate the asset; or
the Group designed the asset in a way that predetermines how and for what purpose it will be used

An entity shall reassess whether a contract is, or contains, a lease only if the terms and conditions of the contract are changed.

At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

2.9 Leasing

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assess whether:

Group as lessee

The Group accounts for assets taken under lease arrangement in the following manner:

The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right of use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentive received.

the contract involves the use of an identified asset – this may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;
the Group has the right to obtain substantially all of the economic benefits from use of the asset through the period of use; and

The right of use asset is subsequently depreciated using the straight line method from the commencement date to the end of the lease term. The estimated useful lives of right-of-use assets are determined on the basis of remaining lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

the Group has the right to direct the use of the asset. The Group has this right when it has the decision- making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases, where the decision

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Group’s incremental borrowing rate.

sale are capitalised as part of the cost of the asset. Borrowing costs incurred for the period from commencement of activities relating to construction/development of the qualifying asset upto the date of capitalisation of such asset are added to the cost of the asset. All other borrowing costs are expensed in the period in which they occur.

Lease payments included in the measurement of the lease liability comprise the fixed payments, including in-substance fixed payments.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in Group’s estimate of the amount expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option.

Short-term leases and leases of low-value assets

The Group has elected not to recognise right-of use assets and lease liabilities for short term leases that have a lease term of 12 months or less and leases of low value assets. The Group recognises the lease payments associated with these leases as an expense on a straight- line basis over the lease term.

2.11 Foreign Currencies

Transaction and balances

2.10 Borrowing costs

Transactions in foreign currencies are recorded on initial recognition at the exchange rate prevailing on the date of the transaction.

Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.
(i) Monetary assets and liabilities denominated in foreign currency remaining unsettled at the end of the year, are translated at the closing rates prevailing on the Balance Sheet date. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

products in which they are to be incorporated

reported using the exchange rate at the date of transaction. Any gains or losses arising due to differences in exchange rates at the time of translation or settlement are accounted for in the Statement of Profit and Loss either under the head foreign exchange fluctuation or interest cost, as the case may be, except those relating to exchange differences arising from cash flow hedges to the extent that the hedges are effective and those covered below.

are expected to be sold at a loss.

(b) Traded goods, Stock in progress and finished goods- Direct cost plus appropriate share of overheads.
(c) By products - At estimated realisable value

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

(ii) Exchange differences pertaining to long term foreign currency loans obtained or re-financed on or before March 31, 2016
2.13 Provisions, contingent liabilities and contingent assets
Provisions

The group recognised a provision when there is a present obligation (legal or constructive) as a result of past events and it is more likely than not that an outflow of resources would be required to settle the obligation and a reliable estimate can be made.

(iii) Exchange differences pertaining to long term foreign currency loans obtained or re-financed on or after April 1, 2016

When the group expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain.

The exchange differences pertaining to long term foreign currency loans obtained or re-financed on or after April 1, 2016 is treated in accordance with Ind AS 21/ Ind AS 109. Refer point (i) above.

The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

2.12 Inventories

Inventories are valued at cost or net realisable value, whichever is lower. The basis of determining the cost for various categories of inventory are as follows:
(a) Raw materials, packing material and stores and spares including fuel - Cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on weighted average basis. The aforesaid items are valued below cost if the finished

Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

control of the group or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The group does not recognize a contingent liability but discloses its existence in the financial statements unless the possibility of an outflow of resources embodying economic benefits is remote. Contingent liabilities and commitments are reviewed by the management at each balance sheet date.

arrangements is recognised on straight line basis over the period over which the Group satisfies the underlying performance obligations. Contract assets are recognised when there is excess of revenue earned over billings on contracts. Contract assets are classified as unbilled revenue (only act of invoicing is pending) when there is unconditional right to receive cash as per contractual terms. Advance from customers (“contract liability”) is recognised when the group has received consideration from the customer before it delivers the goods.

b) Interest and dividend income

Interest income is recognised when it is probable that the economic benefits will flow to the group using the effective interest rate and the amount of income can be measured reliably. Interest income is accrued on time basis, by reference to the principal outstanding.

Contingent assets

Dividend income from investments is recognised when the shareholder’s right to receive payment has been established(provided that it is probable that the economic benefits will flow to the group and the amount of income can be measured reliably).

2.14 Revenue recognition

a) Sale of goods

Revenue from sale of products is recognised upon transfer of control of products to customers at the time of shipment to or receipt of goods by the customers. Service income is recognised as and when the underlying services are performed. The Group exercises judgement in determining whether the performance obligation is satisfied at a point in time or over a period of time.

c) Export incentive

The benefit accrued under the Duty Drawback scheme and other schemes as per the Export and Import Policy in respect of exports made under the said Schemes is included under the head “Revenue from Operations” under ‘Export and other incentives’. Also refer policy on “Government Grants

Revenues are measured based on the transaction price, which is the consideration, net of tax collected from customers and remitted to government authorities such as sales tax/value added tax and goods and services tax and applicable discounts and allowances.

2.15 Taxation

Income tax expense represents the sum of the current tax and deferred tax.

a) Current tax

Current income tax assets and liabilities are measured at the amount expected to

Any fees including upfront fees received in relation to contract manufacturing

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Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax relating to items recognised outside profit or loss is recognised in other comprehensive income or in equity.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss account i.e. in Other comprehensive income or equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax assets/liabilities are not recognised for below mentioned temporary differences:

(i) At the time of initial recognition of goodwill;
(ii) Initial recognition of assets or liabilities (other than in a business combination) at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;

b) Deferred tax

Deferred tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying amounts at the reporting date.

(iii) In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the group has a legally enforceable right for such set off.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the group will pay normal income tax. Accordingly, MAT asset is recognised in the consolidated Balance Sheet when it is probable that future economic benefit associated with it will flow to the group.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets

The group considers whether it is probable that a taxation authority will accept an

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

uncertain tax treatment. If the group concludes that it is probable that the taxation authority will accept an uncertain tax treatment, the group determines the taxable profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates consistently with the tax treatment used or planned to be used in its income tax filings. However, if the group concludes that it is not probable that the taxation authority will accept an uncertain tax treatment, the group reflects the effect of uncertainty in determining the related taxable profit (tax loss), tax bases, unused tax losses, unused tax credits or tax rates.

in which the related services are rendered are measured at the undiscounted amount expected to be paid

Defined contribution plans

Provident fund administered through Regional Provident Fund Commissioner, Superannuation Fund, National pension scheme and Employees’ State Insurance Corporation are defined contribution schemes. Contributions to such schemes are charged to the statement of profit and loss in the year when employees have rendered services entitling them to the contributions. The group has no obligation, other than the contribution payable to such schemes.

2.16 Government grants

Defined benefit plans

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with.
The group has defined benefit plan such as gratuity, provident fund for certain category of employees administered through a recognised provident fund trust and legal severance plans.
A government grant that becomes receivable as compensation for expenses or losses incurred in a previous period. Such a grant is recognised in profit or loss of the period in which it becomes receivable.

Provision for gratuity, provident fund for certain category of employees administered through a recognised provident fund trust and legal severance plans are determined on an actuarial basis at the end of the year and charged to consolidated statement of profit and loss, other than remeasurements. The cost of providing these benefits is determined using the projected unit credit method.

Government grants are recognised in profit or loss on a systematic basis over the periods in which the group recognizes as expenses the related costs for which the grants are intended to compensate.

Remeasurements, comprising of actuarial gains and losses and the effect of the asset ceiling, (excluding amounts included in net interest on the net defined benefit liability and return on plan assets), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive income in the period in which they occur. Re-measurements are not reclassified to consolidated statement of profit and loss in subsequent periods.

Government grants related to assets are presented in the consolidated balance sheet as deferred income and is recognised in profit or loss on a systematic basis over the expected useful life of the related assets.

2.17 Employee benefits

Short term employee benefits

Wages and salaries including non monetary benefits that are expected to be settled within the operating cycle after the end of the period

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Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Other long term employee benefits

and a financial liability or equity instrument of another entity.

The group also has other long term benefits plan such as compensated absences and retention pay. Provision for compensated absences and long term retention pay are determined on an actuarial basis at the end of the year and charged to consolidated Statement of Profit and Loss. The cost of providing these benefits is determined using the projected unit credit method.

A) Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus transaction costs that are directly attributable to the acquisition of the financial asset.

Subsequent measurement

Share based payments

For purposes of subsequent measurement, financial assets of the group are classified in three categories:

Equity settled share based payments to employees under SRF Long Term Share Based Incentive Plan (SRF LTIP) are measured at the fair value (which is the market price less exercise price) of the equity instruments on the grant date. This compensation cost relating to employee stock purchase scheme is amortised over the remaining tenure over which the employees renders their service on a straight line basis.

a) At amortised cost
b) At fair value through profit and loss (FVTPL)
c) At fair value through other comprehensive income (FVTOCI)

2.18 Earnings per share

Financial asset is measured at amortised cost if both the following conditions are met:

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in other income in the consolidated

2.19 Cash and cash equivalents

2.20 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and loss. This category generally applies to trade and other receivables.

a) The rights to receive cash flows from the asset have expired, or
b) The group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (i) the group has transferred substantially all the risks and rewards of the asset, or (ii) the group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Financial assets not classified as measured at amortised cost or FVOCI as are measured at FVTPL. Financial assets included within the FVTPL category are measured at fair value with all changes recognised in the statement of profit and loss.

Equity Investments

All equity investments in the scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are measured at fair value through profit and loss.

When the group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the group continues to recognise the transferred asset to the extent of the group’s continuing involvement. In that case, the group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the group has retained. Any gain or loss on derecognition is recognised in profit or loss.

For all other equity instruments, the group may make an irrevocable election to present subsequent changes in the fair value in other comprehensive income.

The group makes such election on an instrument by instrument basis. The classification is made on initial recognition and is irrevocable.

If the group decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognised in other comprehensive income. This cumulative gain or loss is not reclassified to statement of profit and loss on disposal of such instruments.

Derecognition

A financial asset (or, where applicable, a part of a financial asset) is primarily derecognised (i.e. removed from the balance sheet) when:

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STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

period of the borrowings using the Effective interest rate method.

When the group has retained substantially all the risks and rewards of ownership of the transferred asset, the group continue to recognise the transferred asset in its entirety and recognise a financial liability for the consideration received.

Trade and other payables

Trade and other payables represent the liabilities for goods and services provided to the group prior to the end of the financial year which are unpaid.

Impairment of financial assets

Offsetting of financial instruments

The group recognizes loss allowance using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all financial assets with contractual cash flows other than trade receivable, ECLs are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting date is recognised as an impairment gain or loss in the Statement of Profit and Loss.

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

Derecognition

B) Financial liabilities and Equity instruments Initial recognition and measurement

All financial liabilities are recognised initially at fair value, net of directly attributable transaction costs, if any.

The group’s financial liabilities include borrowings and trade and other payables including derivative financial instruments.

Equity Instruments

Equity Instruments are any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

Subsequent measurement

Debt or equity instruments issued by the group are classified as either financial liability or as equity in accordance with the substance of contractual arrangements and the definitions of a financial liabilities and an equity instruments.

Borrowings

Borrowings are subsequently measured at amortised cost. Any differences between the proceeds(net of transaction cost) and the redemption/repayment amount is recognised in profit and loss over the

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

2.21 Derivative and Non Derivative financial instruments and hedge accounting
For the purpose of hedge accounting, hedges are classified as:

Initial recognition and subsequent measurement The group uses derivative financial instruments (such as forward currency contracts, interest rate swaps and full currency swaps) or non derivative financial assets/liabilities to hedge its foreign currency risks and interest rate risks. The group has opted for “Hedge Accounting” for all its derivative as well as non-derivative financial instrument used for hedging. Accordingly, at the inception of the hedge the group formally designates a hedge relationship between the ‘hedging instrument’ and ‘hedged item’ which determines the initial recognition of the financial instrument as Fair Value Hedge or Cashflow hedge. The documentation includes the group’s risk management objective and strategy for undertaking hedge, the hedging/ economic relationship, the hedged item or transaction, the nature of the risk being hedged and how the entity will assess the effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for which they were designated. These financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

a) Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability.
b) Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognised firm commitment.
Hedges that meet the strict criteria for hedge accounting are accounted for, as described below:

Fair value hedges

The change in the fair value of a hedging instrument is recognised in the consolidated statement of profit and loss. The change in the fair value of the hedged item attributable to the risk hedged is recorded as part of the carrying value of the hedged item and is also recognised in the statement of profit and loss.

If the hedged item is derecognised, the unamortised fair value is recognised immediately in profit or loss. When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain or loss recognised in consolidated profit and loss.

Cash flow hedges

The effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income in the cash flow hedge reserve, while any ineffective portion is recognised immediately in the consolidated statement of profit and loss.

The Group uses forward currency contracts as hedges of its exposure to foreign currency risk

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Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

in forecast transactions and firm commitments. The ineffective portion relating to foreign currency contracts is recognised in the consolidated statement of profit and loss. In some cases, the group separates the premium element and the spot element of a forward contract and designates only the change in fair value of the spot element of forward exchange contracts as the hedging instrument in cash flow hedging relationships. In such cases, the changes in the fair value of the premium element of the forward contract or the foreign currency basis spread of the financial instrument is accumulated in a separate component of equity as ‘cost of hedging’. The changes in the fair value of such premium element or foreign currency basis spread are reclassified to profit or loss as a reclassification adjustment on a straight-line basis over the period of the forward contract or the financial instrument.

other equity if the forecast transaction or the foreign currency firm commitment is expected to occur else the amount shall be immediately reclassified from the cash flow hedge reserve to profit or loss as a reclassification adjustment.

2.22 Fair value measurement

The group measures some of its financial instruments at fair value at each balance sheet date.

a) In the principal market for the asset or liability, or
b) In the absence of a principal market, in the most advantageous market for the asset or liability

The Group also designates certain non derivative financial liabilities, such as foreign currency borrowings from banks, as hedging instruments for the hedge of foreign currency risk associated with highly probable transactions and, accordingly, applies cash flow hedge accounting for such relationships.

The principal or the most advantageous market must be accessible by the group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorised within the

If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover (as part of the hedging strategy), or if its designation as a hedge is revoked, or when the hedge no longer meets the criteria for hedge accounting, the hedge accounting will be discontinued prospectively. Any cumulative gain or loss previously recognised in other comprehensive income remains separately in

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

that particular foreign operation is recognised in profit or loss.

fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

2.24 Segment reporting

a) Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
Based on “Management Approach” as defined
prices in active markets for identical assets in Ind AS 108 -Operating Segments, the Chief
or liabilities. Operating Decision Maker evaluates the group’s
b) Level 2 - inputs other than quoted performance and allocates the resources based prices included in Level 1 that are on an analysis of various performance indicators observable for the asset or liability, either by business segments. Inter segment sales and directly (i.e. as prices) or indirectly (i.e. transfers are reflected at market prices. derived from prices).
Unallocable items includes general corporate
c) Level 3 - inputs for the asset or liability that income and expense items which are not
are not based on observable market data allocated to any business segment.
(unobservable inputs).

Segment Policies:

For assets and liabilities that are recognised in the consolidated financial statements on a recurring basis, the group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

The group prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the consolidated financial statements of the group as a whole. Common allocable costs are allocated to each segment on an appropriate basis.

2.25 Dividend

The group recognises a liability to make cash distributions to equity holders when the distribution is authorised and the distribution is no longer at the discretion of the group. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

For the purpose of fair value disclosures, the group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

2.23 Foreign Currency translation reserve

On consolidation, the assets and liabilities of foreign operations are translated into Rupees at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated at exchange rates prevailing at the dates of the transactions. For practical reasons, the group uses an average rate to translate income and expense items, if the average rate approximates the exchange rates at the dates of the transactions. The exchange differences arising on translation for consolidation are recognised in OCI. On disposal of a foreign operation, the component of OCI relating to

2.26 Non-current assets held for sale and

discontinued operations

Non-current assets (or disposal groups) are classified as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. The appropriate level of management must be committed to a plan to sell, an active programme to locate a buyer and complete the plan has been initiated, the sale is considered highly probable and is expected within one year from the date of classification.

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Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

other comprehensive income and accumulated in equity as capital reserve provided there is clear evidence of the underlying reasons for classifying the business combination as a bargain purchase.

2.28 Recent Pronouncements:

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1, 2022, as below:

A discontinued operation is a component of the Company that either has been disposed of, or is classified as held for sale, and:

a) Represents a separate major line of business or geographical area of operations,
b) Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations, or

Ind AS 103 – Reference to Conceptual Framework The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in its financial statements.

c) Is a subsidiary acquired exclusively with a view to resale.

Discontinued operations are excluded from the results of continuing operations and are presented separately in the statement of profit and loss.

2.27 Business combinations

The Group accounts for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Group. In determining whether a particular set of activities and assets is a business, the Group assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs.

Ind AS 16 – Proceeds before intended use

The amendment clarifies that excess of net sale proceeds of items produced over the cost of testing, if any, shall not be recognised in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipment. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.

The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment.

Ind AS 37 – Onerous Contracts - Costs of Fulfilling a Contract

The amendments specify that that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate

If consideration transferred is less than the fair value of the net identifiable assets of the business acquired, the difference is recognised in

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Judgements, estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated financial statements is included in the following notes.

directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.

Ind AS 109 – Annual Improvements to Ind AS (2021)

Classification and lease term determination of leasing arrangement – Note 2.9
Derecognition of trade receivables and hedge effectiveness- Note 2.20
Fair value measurement of derivative instruments – Note 2.22

Ind AS 106 – Annual Improvements to Ind AS (2021)

Assessment of useful life of property, plant and equipment and intangible asset – Note 2.4

Recognition and estimation of tax expense including determination of applicable tax rate for measuring deferred tax balances– Note 2.15
Estimation of assets and obligations relating to employee benefits (including actuarial assumptions) – Note 2.17

3 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

Assessment of impairment of financial assets and non-financial assets – Note 2.20 and Note 2.8

The preparation of consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Recognition and measurement of contingencies: key assumptions about the likelihood and magnitude of an outflow of resources – Note 2.13

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Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

4 PROPERTY, PLANT AND EQUIPMENT

==> picture [424 x 23] intentionally omitted <==

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Particulars Freehold Roads Buildings Plant and Furniture Office Vehicle Total
land equipment and fixtures equipment
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Cost
Balance at March 31,2020	382.94	74.22	836.28	6,082.10	29.01	64.30	41.70	7,510.55
Additions/adjustments	0.99	23.36	367.86	1,458.06	4.35	10.58	6.59	1,871.79
Disposals/adjustments	-	(0.45)	(6.29)	(24.63)	(0.32)	(2.44)	(3.99)	(38.12)
Efect of foreign currency exchange diferences	3.37	1.13	15.79	51.63	0.34	0.70	0.01	72.97
Balance at March 31,2021	387.30	98.26	1,213.64	7,567.16	33.38	73.14	44.31	9,417.19
Additions/adjustments	12.78	2.27	113.29	924.29	2.75	13.33	10.41	1,079.12
Disposals/adjustments Efect of foreign currency exchange diferences	- (0.60)	- (0.06)	(5.84) (3.42)	(60.90) (14.55)	(0.54) 0.03	(3.92) 0.07	(4.85) (0.01)	(76.05) (18.54)
Balance at March 31,2022	399.48	100.47	1,317.67	8,416.00	35.62	82.62	49.86	10,401.72
Accumulated depreciation
Balance at March 31,2020	-	7.74	102.52	1,310.27	11.13	35.15	20.81	1,487.62
Depreciation expenses	-	2.14	29.68	377.63	2.42	7.55	7.36	426.78
Disposals/adjustments	-	-	(0.03)	(2.70)	(0.14)	(1.25)	(2.76)	(6.88)
Efect of foreign currency exchange diferences	-	0.11	1.78	10.05	0.13	0.21	0.18	12.46
Balance at March 31,2021	-	9.99	133.95	1,695.25	13.54	41.66	25.59	1,919.98
Depreciation expenses	-	2.47	34.93	427.66	2.61	9.12	7.85	484.64
Disposals/adjustments	-	-	(0.63)	(46.40)	(0.32)	(3.54)	(3.63)	(54.52)
Efect of foreign currency exchange diferences	-	0.01	0.37	0.59	0.02	0.10	(0.01)	1.08
Balance at March 31,2022	-	12.47	168.62	2,077.10	15.85	47.34	29.80	2,351.18
Net block
Balance at March 31,2021	387.30	88.27	1,079.69	5,871.91	19.84	31.48	18.72	7,497.21
Balance at March 31,2022	399.48	88.00	1,149.05	6,338.90	19.77	35.28	20.06	8,050.54

Notes:

(i) Borrowing cost capitalised during the year 18.41 crores (Previous year: 13.07 Crores) with a capitalisation rate ranging from 0.40% to 3.55% (Previous year: 0.5% to 8.09%).
(ii) The industrial freehold land measuring 32.41 acres at the group’s plant in Gummudipoondi, Tamil Nadu had been acquired by the Company w.e.f. January 1, 2001 pursuant to a scheme of amalgamation sanctioned by the Hon’ble High court of Judicature at Madras and the Hon’ble High court of Delhi. Out of the said land, there is a dispute on a land parcel of 2.74 acres. Based on the legal documentation available, the management is of the view that the said dispute is not tenable.
(iii) Capital expenditure incurred during the year includes 8.49 crores (Previous year - 13.46 crores) on account of research and development. Depreciation for the year includes depreciation on assets deployed in research and development as per note 47 (a) below.

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

4.1 CAPITAL WORK-IN-PROGRESS (CWIP)

(i) Ageing of capital work-in-progress :

	Amount in CWIP for aperiod of
	Less than 1year 1 - 2 years 2 - 3 years More than 3years Total
Projects in progress As at March 31, 2022 As at March 31, 2021	1,554.87 102.92 13.84 -1,671.63 745.04 26.27 0.95 - 772.26

(ii) CWIP completion schedule for capital work-in-progress whose completion is overdue or has exceeded its cost compared to its original plan :

	As at March 31, 2022
	To be completed in
	Less than 1year 1 - 2 years 2 - 3 years More than 3years
Projects in progress Chloromethanes plant Augmentation of power and steam capacity Others *	333.38 - - - 138.23 - - - 164.04 0.02 - -
	635.65 0.02 - -

	As at March 31, 2021
	To be completed in
	Less than 1year 1 - 2 years 2 - 3 years More than 3years
Projects in progress R22 facility Dedicated facility for SS-04 Others *	87.08 - - - 52.05 - - - 143.29 1.40 - -
	282.42 1.40 - -

Comprises projects not considered material at an individual level.
(iv) Refer to note 18.1 for information on PPE pledged as security by the group. Additionally, non funded working capital facilities from banks amounting to ` 37.80 crores (previous year : 58.50) are secured by hypothecation of Captive Power Plant (CPP) and HFC134A plant situated at Dahej in state of Gujarat.
(v) Refer to note 47 (c) for additions/adjustments on account of exchange difference during the year.
(vi) The group accounts for all capitalizations of property, plant and equipment through capital work in progress, and, therefore, the movement in capital work in progress is the difference between closing and opening balance of capital work in progress as adjusted by additions in property, plant and equipment and intangible assets.
(vii) Disposals during the current year include property, plant and equipment classified as assets held for sale. Refer note 42 C below.

304

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

5 GOODWILL

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Amount
Cost
Balance at March 31,2020 4.12
Additions -
Disposals -
Balance at March 31, 2021 4.12
Additions -
Disposals -
Balance at March 31, 2022 4.12
Accumulated Impairment losses
Balance at March 31,2020 3.50
Additions -
Balance at March 31, 2021 3.50
Additions (Refer note 42 C ) 0.62
Balance at March 31, 2022 4.12
Carrying Amount As at As at
March 31, 2022 March 31, 2021
Industrial yarn unit - 0.62
- 0.62
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The group had allocated goodwill to the above mentioned cash generating units and determined recoverable amount of this allocated goodwill using cash flow projections based on financial budget as approved by the directors of the Company.

6 OTHER INTANGIBLE ASSETS

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Particulars Trade Marks/ Technical Software Others Total
Brands Knowhow
----- End of picture text -----

Cost
Balance at March 31,2020	77.53	55.19	30.75	19.39	182.86
Additions / adjustments	-	-	4.19	-	4.19
Disposals/adjustments	-	-	-	-	-
Balance at March 31, 2021	77.53	55.19	34.94	19.39	187.05
Additions / adjustments *	-	-	5.37	9.79	15.16
Disposals/adjustments	(4.28)	-	(6.29)	-	(10.57)
Balance at March 31, 2022	73.25	55.19	34.02	29.18	191.64
Accumulated amortisation
Balance at March 31,2020	16.76	5.95	25.19	18.50	66.40
Amortisation expenses	2.45	1.70	4.04	0.05	8.24
Efects of foreign currency exchange diferences	-	-	0.04	-	0.04
Balance at March 31, 2021	19.21	7.65	29.27	18.55	74.68

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Particulars Trade Marks/ Technical Software Others Total
Brands Knowhow
----- End of picture text -----

Amortisation expenses	2.45	1.70	3.90	0.11	8.16
Efects of foreign currency exchange diferences	-	-	(0.03)	-	(0.03)
Disposals/adjustments	(4.28)	-	(6.29)	-	(10.57)
Balance at March 31, 2022	17.38	9.35	26.85	18.66	72.24
Carrying Amount
Balance at March 31, 2021	58.32	47.54	5.67	0.84	112.37
Balance at March 31, 2022	55.87	45.84	7.17	10.52	119.40

Notes:

“Other” intangible assets acquired through Business Combination (Refer note 46 below).

7 INVESTMENTS

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As at As at
March 31, 2022 March 31, 2021
Non-current
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Non-current
Investment in equityinstruments	4.16	4.16
	4.16	4.16
Aggregate book value of unquoted investments	4.16	4.16
Aggregate amount of impairment in value of investments	4.34	4.34
Current Investment in mutual funds Investment in bonds/Debentures	121.86 194.88	197.16 215.36
	316.74	412.52
Aggregate book value and market value of quoted investments	194.88	215.36
Aggregate book value and market value of unquoted investments	121.86	197.16

7.1 Investment in equity instruments (at fair value through other comprehensive income)

As at March 31, 2022 As at March 31, 2021

Number
Amount
Number
Amount

Unquoted investments (Non-current)
Equity shares of10 each fully paid up of Malanpur Captive Power Limited 42,21,535 4.2242,21,535 4.22 Less: impairment in value of investments (4.22) (4.22) Equity Share of10 each fully paid of Vaayu Renewable
Energy (Tapti) Private Limited
50,000
0.05
50,000
0.05
Equity Shares of10 each fully paid of Suryadev Alloys & Power Private Limited 13,54,000 4.1113,54,000 4.11 Equity shares of10 each fully paid up of Sanghi
Spinners India Limited
6,70,000
0.12
6,70,000
0.12
Less: impairment in value of investments
-
(0.12)
-
(0.12)

306 Annual Report 2021-22

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

7.2 Investment in mutual funds (at fair value through profit and loss)

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As at March 31, 2022 As at March 31, 2021
Number Amount Number Amount
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Unquoted investments (Current)
ICICI Prudential P1543 Saving Fund-Growth Plan	36,12,365	121.86	36,12,365	117.16
Axis Overnight Fund- Regular Growth Plan	-	-	2,76,009	30.00
SBI Liquid Fund L72SG Regular Growth Plan	-	-	1,56,109	50.00
		121.86		197.16

7.3 Investment in Bonds/Debentures (at fair value through profit and loss)

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As at March 31, 2022 As at March 31, 2021
Number Amount Number Amount
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Quoted investments (Current)
Debentures
Non convertible debentures of Shriram	Transport	-	-	250	32.11
Finance Company Limited 2021 of`10,00,000 each
7.35% non convertible debentures	of NIIF	-	-	250	25.43
Infrastructure Finance Limited of`10,00,000 each
Non convertible debentures of Tata Capital	Financial	-	-	30	3.56
Services Limited of`10,00,000 each
9.50% non convertible debenture of Piramal	Capital &	63	5.04	-	-
Housing Finance Limited 2022 of`8,00,000	each
Bonds
8.85% HDFC Bank Limited Perpetual Bonds 2022 of		500	50.08	500	51.00
`10,00,000 each
8.99% Bank of Baroda Perpetual Bonds	2024 of	550	56.92	500	51.02
`10,00,000 each
9.56% State Bank of India Perpetual Bonds 2023 of		500	52.33	500	52.24
`10,00,000 each
8.50% State Bank of India Perpetual Bonds 2024 of		248	25.40	-	-
`10,00,000 each
8.50% State Bank of India Perpetual Bonds 2025 of		50	5.11	-	-
`10,00,000 each
			194.88		215.36

8 LOANS

(unsecured and considered good, unless otherwise stated)

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As at As at
March 31, 2022 March 31, 2021
Non- current
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Non- current
Loans to employees	14.72	10.55
	14.72	10.55
Current
Loans to employees	8.80	7.69
Others (other than related parties)
- Considered good	-	3.52
- Credit impaired	2.74	2.74
Less:Provision for credit impaired loans	(2.74)	(2.74)
	8.80	11.21

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

9 DEFERRED TAX (NET)

The following is the analysis of deferred tax assets (liabilities) presented in balance sheet.

	As at March 31, 2022	As at March 31, 2021
Deferred tax assets	107.26	331.70
Deferred tax liabilities	(773.12)	(699.72)
Deferred tax liabilities, net	(665.86)	(368.02)
Net Deferred tax assets after set of	11.60	18.14
Net Deferred tax liabilities after set of	677.46	386.16

The major components of deferred tax assets/(liabilities) arising on account of temporary differences are as follows:

2021-22	Opening balance	Recognised of proft Continuing operations	in statement and loss Discontinued operations	MAT Credit Entitlement utilised	Recognised in other comprehensive income	Foreign currency translation reserve for the year	Closing Balance
Deferred tax assets
Expenses deductible	23.49	(2.27)	-	-	-	0.21	21.43
in future years
Provision for	1.26	(0.44)	-	-	-	-	0.82
credit impaired
loans / receivables
MAT Credit Entitlement	274.66	25.27	-	(241.48)	-	-	58.45
Unabsorbed	23.95	(4.92)	-	-	-	(0.62)	18.41
carried forward losses
Others	8.34	(0.44)	-	-	-	0.25	8.15
	331.70	17.20	-	(241.48)	-	(0.16)	107.26
Deferred tax liabilities
Property plant and	(683.28)	(55.56)	-	-		(3.63)	(742.47)
equipment and
intangible assets
Investment	(10.85)	(1.09)	-	-		-	(11.94)
in mutual funds
Cash fow hedges	(4.28)	-	-	-	(13.47)	-	(17.75)
Others	(1.31)	0.35	-	-	-	-	(0.96)
	(699.72)	(56.30)	-	-	(13.47)	(3.63)	(773.12)
Total	(368.02)	(39.10)	-	(241.48)	(13.47)	(3.79)	(665.86)

308 Annual Report 2021-22

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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2020-21 Opening Recognised in statement MAT Credit Recognised in Foreign Closing
balance of profit and loss Entitlement other currency Balance
Continuing Discontinued utilised comprehensive translation
operations operations income reserve for
the year
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Deferred tax assets
Expenses deductible	27.70	(6.01)	-	-	-	1.80	23.49
in future years
Provision for	0.90	0.37	-	-	-	(0.01)	1.26
credit impaired
loans / receivables
MAT Credit Entitlement	367.07	5.38	-	(97.79)	-	-	274.66
Cash fow hedges	42.29	-	-	-	(42.29)	-	-
Unabsorbed	22.98	(1.91)	2.42	-	-	0.46	23.95
carried forward losses
Others	8.98	(1.40)	-	-	-	0.76	8.34
	469.92	(3.57)	2.42	(97.79)	(42.29)	3.01	331.70
Deferred tax liabilities
Property plant and	(617.02)	(54.82)	-	-	-	(11.44)	(683.28)
equipment and
intangible assets
Investment	(7.95)	(2.90)	-	-	-	-	(10.85)
in mutual funds
Cash fow hedges	-	-	-	-	(4.28)	-	(4.28)
Others	(6.19)	4.88	-	-	-	-	(1.31)
	(631.16)	(52.84)	-	-	(4.28)	(11.44)	(699.72)
Total	(161.24)	(56.41)	2.42	(97.79)	(46.57)	(8.43)	(368.02)

Notes:

(i) At March 31, 2022, there was no recognised deferred tax liability (Previous year : Nil) for taxes that would be payable on the unremitted earnings of certain of the Company’s subsidiaries. The Company has determined that undistributed profits of its subsidiaries will not be distributed in the foreseeable future.
(ii) MAT credit entitlement of 74.02 Crores (previous year 74.02 Crores) expiring in the financial year ending March 31, 2035 is not recognised, due to expected timing of exercise of the option under section 115BAA of Income Tax Act, 1961.

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

10 OTHER FINANCIAL ASSETS

(unsecured and considered good, unless otherwise stated)

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As at As at
March 31, 2022 March 31, 2021
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Non-Current
Derivatives carried at fair value through other comprehensive income
- Forward exchange contracts used for hedging	60.65	28.84
- Interest rate swaps used for hedging	0.36	-
Other fnancial assets carried at amortised cost
- Security deposits
Related parties (Refer note 35)	3.53	3.54
Other than related parties	30.12	32.35
- Government grant and claims recoverable	15.86	15.85
- Deposit accounts with maturitybeyond twelve months	30.00	-
	140.52	80.58
Current
Derivatives carried at fair value through proft and loss
- Forward exchange contracts used for hedging	3.64	4.39
Derivatives carried at fair value through other comprehensive income
- Forward exchange contracts used for hedging	60.52	56.70
- Interest rate swaps used for hedging	3.16	1.01
Other fnancial assets carried at amortised cost
- Security deposits
Other than related parties	2.59	-
- Insurance claim recoverable	1.09	0.33
- Government grant and claims recoverable	135.07	154.11
- Others	19.76	9.31
	225.83	225.85

11 OTHER ASSETS

(unsecured and considered good, unless otherwise stated)

	As at March 31, 2022	As at March 31, 2021
Non-Current
Capital advances	214.17	229.30
Prepaid expenses	0.72	0.25
Cenvat/Service tax/Goods and Services Tax/ sales tax recoverable	18.05	14.43
Claims recoverable under Post EPCG scheme and others	0.12	0.12
Total other non-current assets	233.06	244.10
Current
Prepaid expenses	17.22	11.97
Cenvat/Service tax/ Goods and Services Tax/ sales tax recoverable	135.25	103.02

310 Annual Report 2021-22

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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As at As at
March 31, 2022 March 31, 2021
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Export incentives recoverable	16.21	32.76
Deposits with customs and excise authorities	15.52	17.58
Advance to suppliers	124.11	99.61
Others	1.37	2.02
Total other current assets	309.68	266.96

12 INVENTORIES

(Valued at lower of cost and net realisable value)

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As at As at
March 31, 2022 March 31, 2021
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Raw material (including packing material)	1,058.18	683.36
Stock in progress	237.41	176.47
Finished goods	535.44	338.59
Stores and spares (including fuel)	280.05	263.08
Tradedgoods	27.39	4.32
	2,138.47	1,465.82
Goods-in-transit included above:
Raw material (including packing material)	256.55	241.43
Finished goods	162.25	100.47
Stores and spares (including fuel)	2.51	1.06
Tradedgoods	9.62	0.33
	430.93	343.29

Notes

(i) The cost of inventories recognised as an expense includes 5.92 crores.(Previous year : 11.22 Crores) in respect of write-downs of inventory to net realisable value.

(ii) Refer Note 18.1 for information on inventories pledged as security by the group.

(iii) The method of valuation of inventory has been stated in note 2.12

13 TRADE RECEIVABLES

Current	As at March 31, 2022	As at March 31, 2021
Unsecured, considered good	1,792.45	1,274.56
Unsecured, credit impaired	3.45	5.03
Less: Provision for credit impaired receivables	(3.45)	(5.03)
	1,792.45	1,274.56

Notes

(i) The credit period generally allowed on sales varies, on a case to case basis, business to business and based on market conditions. Generally credit period allowed is upto 120 days.

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

(ii) Ageing of receivables :

Outstanding for following periods from due date of payment	As at March 31, 2022
	Undisputed trade receivables - considered good Undisputed trade receivables - credit impared Disputed trade receivables - considered good Disputed trade receivables - credit impaired Total
Not due Less than 6 months 6 months- 1 year 1-2 Years 2-3 Years More than 3 years	1,565.03 - - - 1,565.03 226.00 - - - 226.00 1.42 0.08 - - 1.50 - 2.13 - - 2.13 - - - - - - 0.52 - 0.72 1.24
	1,792.45 2.73 - 0.72 1,795.90

Outstanding for following periods from due date of payment	As at March 31, 2021
	Undisputed trade receivables - considered good Undisputed trade receivables - credit impared Disputed trade receivables - considered good Disputed trade receivables - credit impaired Total
Not due Less than 6 months 6 months- 1 year 1-2 Years 2-3 Years More than 3years	1,131.74 - - - 1,131.74 141.13 0.12 - - 141.25 0.98 0.09 - - 1.07 0.02 3.33 - - 3.35 - 0.18 - - 0.18 0.69 0.56 - 0.75 2.00
	1,274.56 4.28 - 0.75 1,279.59

(iii) The group has entered into receivables purchase agreements with banks to unconditionally and irrevocably sell, transfer, assign and convey all the rights, titles and interest of the group in the receivables as identified. Receivables sold as on March 31, 2022 are of 756.96 crores (Previous year: 369.12 Crores). The group has derecognized these receivables as it has transferred its contractual rights to the banks with substantially all the risks and rewards of ownership and retains no control over these receivables as the banks have the right to further sell and transfer these receivables with notice to the group.
(iv) During the previous year the group had sold, with recourse, trade receivables amounting to ` 47.15 Crores to a bank for cash proceeds. These trade receivables were not derecognised because the group retained substantially all of the risks and rewards, primarily credit risk. The amounts received on such transfer were recognised as a secured bank loan (Refer note 18).
(v) There is no customer who represents more than 10% (Previous year - Nil) of the total balances of trade receivables.
(vi) Refer Note 18.1 for information on trade receivables pledged as security by the group.

14 CASH AND CASH EQUIVALENTS

	As at March 31, 2022	As at March 31, 2021
Balances with banks
Current accounts	228.70	124.57
Exchange earners foreign currency (EEFC) accounts	20.97	12.83
Deposit accounts with maturity of three months or less* Cash on hand	200.00 0.81	0.09 0.80
	450.48	138.29

Refer to note 18.

312

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

15 BANK BALANCES OTHER THAN ABOVE

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As at As at
March 31, 2022 March 31, 2021
Earmarked balances
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- Margin money - Unclaimed dividend accounts Other deposit accounts	1.95 6.72	1.95 6.57
- Deposit accounts with maturity beyond three months	0.20	135.19
upto twelve months
	8.87	143.71

16 SHARE CAPITAL

	As at March 31, 2022	As at March 31, 2021
Authorised share capital: 320,000,000 (Previous Year - 120,000,000) Equity	320.00	120.00
shares of`10 each
1,000,000 (Previous Year - 1,000,000) Preference	10.00	10.00
shares of`100 each<br>1,200,000 (Previous Year - 1,200,000) Cumulative Preferences<br>shares of`50 each Nil (Previous Year - 20,000,000) Cumulative Preferences	6.00 -	6.00 200.00
shares of`100 each
	336.00	336.00

	As at March 31, 2022	As at March 31, 2021
Issued share capital:
300,477,780 (Previous Year - 63,301,960) Equity	300.48	63.30
Shares of`10 each
Subscribed capital:
296,421,025 (Previous Year - 59,245,205) Equity Shares of`10	296.42	59.24
each fully paid up
Add: Forfeited shares- Amount originally paid up	1.02	1.02
	297.44	60.26

16.1 Fully paid equity shares

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Number of shares Amount
Balance at March 31, 2020 5,74,80,500 57.48
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Fully paid equity shares Balance at March 31, 2020	Number of shares 5,74,80,500	Amount 57.48
Add:Movement during the year**	17,64,705	1.76
Balance at March 31, 2021	5,92,45,205	59.24
Add:Movement during the year * (Also refer note 37 on	23,71,75,820	237.18
"Employee ShareBasedPayments")
Balance at March 31, 2022	29,64,21,025	296.42

There are no buy back of equity shares during the period of five years immediately preceding the reporting date.

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Bonus shares issued during the five years preceding the reporting date

*’During the current year, Company has issued and allotted 236,980,820 fully paid up Bonus Equity shares of ` 10 each in the ratio of 4:1 (i.e. 4 Bonus Equity shares for every 1 existing equity share of the Company) to the shareholders who held shares on October 14, 2021 (Record date).

** ‘During the year ended March 31, 2021, the Company had issued 1,764,705 fully paid up equity shares equivalent to 3.07% of the existing paid up equity capital of the Company to Qualified Institutional Buyers in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. These shares were issued at an issue price of 4,250 per share (including securities premium of 4,240 per share) for an aggregate consideration of 750 Crores. The proceeds (net of share issue expenses of 11.99 Crores charged off against securities premium) have been utilised for repayment of borrowings.

Terms/ rights attached to equity shares :

The parent has only one class of equity shares having a par value of ` 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board may from time to time pay to the members, such interim dividends as appear to it to be justified by the profits of the company.

16.2 Details of equity shares held by the holding Company

	Number of fully paid ordinary shares
As at March 31, 2022
KAMA Holdings Limited, the Holding Company	15,02,45,000
As at March 31, 2021
KAMA Holdings Limited,the HoldingCompany	3,00,49,000

16.3 Details of equity shares held by each shareholder holding more than 5% shares:

Class of shares / Name of shareholder	As at March 31, 2022 As at March 31, 2021
	Number of shares held % holding in that class of shares Number of shares held % holding in that class of shares
Fully paid equity shares 1. Kama Holdings Limited 2. Amansa HoldingPrivate Limited	15,02,45,000 50.69% 3,00,49,000 50.72% 1,13,61,408 3.83% 33,73,411 5.69%

314 Annual Report 2021-22

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

16.4 Details of equity shares held by Promoters

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Name of Promoter Number of fully paid % holding in that % change
equity shares held class of shares during the year
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As at March 31, 2022
1. KAMA Holdings Limited	15,02,45,000	50.69%	400%*
2. Mr. Arun Bharat Ram	1,37,500	0.05%	400%*
As at March 31, 2021
1. KAMA Holdings Limited	3,00,49,000	50.72%	-
2. Mr. Arun Bharat Ram	27,500	0.05%	-

Also refer to note 16.1 above.

17 OTHER EQUITY

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As at As at
March 31, 2022 March 31, 2021
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General reserve	648.77	648.77
Retained earnings	6,785.77	5,113.66
Cash fow hedging reserve	34.49	7.53
Cost of hedging reserve	0.51	3.13
Capital redemption reserve	10.48	10.48
Capital reserve	193.77	193.77
Debenture redemption reserve	62.50	62.50
Foreign currency translation reserve	23.07	21.77
Reserve for equity instruments through other comprehensive income	(4.22)	(4.22)
Employee share based payment reserve	3.22	2.52
Securitiespremium	509.56	736.25
	8,267.92	6,796.16

17.1 General reserve

	As at March 31, 2022	As at March 31, 2021
Balance at beginning of year	648.77	573.77
Increase/(decrease)duringtheyear	-	75.00
Balance at end ofyear	648.77	648.77

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

17.2 Retained earnings

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As at As at
March 31, 2022 March 31, 2021
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Balance at beginning of year	5,113.66	4,117.69
Proft for the year	1,888.92	1,197.94
Other comprehensive income arising from measurement of	(4.92)	1.84
defned beneft obligation* (Refer note 36.2 (iv))
Payments of dividend on equity shares	(211.89)	(141.31)
Transfer to debenture redemption reserve	-	(62.50)
Balance at end ofyear	6,785.77	5,113.66

The amount that can be distributed as dividend by the parent to its equity shareholders is determined based on the separate financial statements of the parent company and also considering the requirements of the Companies Act, 2013.

net of income tax of 2.55 crores. (Previous year : (0.84) crores)

17.3 Cash flow hedging reserve

(Refer note 40.3.1 (C))

	As at March 31, 2022	As at March 31, 2021
Balance at beginning of year	7.53	(78.56)
Recognized/(released) during the year	39.99	132.33
Income tax related to above	(13.03)	(46.24)
Balance at end ofyear	34.49	7.53

17.4 Cost of hedging reserve

(Refer note 40.3.1 (C)

	As at March 31, 2022	As at March 31, 2021
Balance at beginning of year	3.13	-
Recognized/(released) during the year	(2.17)	3.46
Income tax related to above	(0.45)	(0.33)
Balance at end ofyear	0.51	3.13

316 Annual Report 2021-22

Annual Report 2021-22 317

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

17.5 Capital redemption reserve

	As at March 31, 2022	As at March 31, 2021
Balance at beginning of year	10.48	10.48
Increase/(decrease)duringtheyear	-	-
Balance at end ofyear	10.48	10.48

Capital Redemption reserve is a statutory, non-distributable reserve into which amounts are transferred following the redemption or purchase of a company’s own shares. The reserve is utilised in accordance with the provision of the Act.

17.6 Capital reserve

	As at March 31, 2022	As at March 31, 2021
Balance at beginning of year	193.77	193.77
Increase/(decrease)duringtheyear	-	-
Balance at end ofyear	193.77	193.77

Capital reserve represents amounts received pursuant to Montreal Protocol Phase-out Programme of refrigerant gases.

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

17.9 Foreign currency translation reserve

	As at March 31, 2022	As at March 31, 2021
Balance at beginning of year	21.77	(14.67)
Exchange diferences arisingon translation of foreign operations	1.30	36.44
Balance at end ofyear	23.07	21.77

Exchange differences relating to translation of the results and net assets of the group’s foreign operations from their functional currency in to group presentation currency (i.e. ` ) are recognized in Other Comprehensive Income and accumulated in foreign currency translation reserve. Exchange differences previously accumulated in foreign currency translation reserve in respect of foreign operations are reclassified to statement of profit and loss on disposal of foreign operation.

17.10 Employee share based payment reserve

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As at As at
March 31, 2022 March 31, 2021
----- End of picture text -----

Balance at beginning of year	2.52	1.56
Increase/(decrease) during the year	10.93	0.96
Released on vesting of shares issued under employee share	(10.23)	-
purchase scheme
Balance at end ofyear	3.22	2.52

17.7 Debenture redemption reserve

	As at March 31, 2022	As at March 31, 2021
Balance at beginning of year	62.50	75.00
Increase/(decrease) during the year	-	(75.00)
Transfer from retained earnings	-	62.50
Balance at end ofyear	62.50	62.50

The Company has issued non-convertible debentures. The Company had created debenture redemption reserve out of the profits of the company available for payment of dividend.

17.8 Reserve for equity instruments through other comprehensive income

	As at March 31, 2022	As at March 31, 2021
Balance at beginning of year	(4.22)	(4.22)
Increase/(decrease)duringtheyear Balance at end ofyear	- (4.22)	- (4.22)

The group has allotted equity shares to certain employees under an employee share purchase scheme. The share based payment reserve is used to recognise the value of equity-settled share based payments provided to the such employees as part of their remuneration. Refer note 37 for further details of the scheme.

17.11 Securities premium

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----- Start of picture text -----

As at As at
March 31, 2022 March 31, 2021
Balance at beginning of year 736.25 -
----- End of picture text -----

Balance at beginning of year	736.25	-
Recognised on issue of equity shares	-	736.25
Utilisation on issue of bonus equity shares	(236.98)	-
Recognised on vesting of shares issued under employee share	10.29	-
purchase scheme
Balance at end ofyear	509.56	736.25

318 Annual Report 2021-22

Annual Report 2021-22 319

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

18 BORROWINGS

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----- Start of picture text -----

As at As at
March 31, 2022 March 31, 2021
----- End of picture text -----

Non-current
Secured
2,500 Nos. (Previous Year:2,500 Nos.), 3 Months T-Bill + 188	250.00	250.00
bps, Listed, Secured, Redeemable, Non-Convertible Debentures
of the face value of`10 lakhs each * (Refer note 18.1.1)
Term Loans from banks*^ (Refer note 18.1.2)	2,106.42	1,978.95
Term Loans from others*(Refer note 18.1.3)	141.07	196.31
Less: Current maturities of longterm borrowings	(744.19)	(460.25)
	1,753.30	1,965.01
Current
Secured
Cash credits from banks (Refer note 18.1.4.(iii))	1.90	0.44
Loans repayable on demand from banks (Refer note	191.93	297.71
18.1.4.((i) and (ii))
Bills discounted with banks (Refer note 18.1.4.(iv))	-	47.15
Current maturities of longterm borrowings	744.19	460.25
	938.02	805.55
Unsecured
Loans repayable on demand from banks	548.03	520.40
Commercialpapers from banks and others #	300.00	100.00
	848.03	620.40
	1,786.05	1,425.95

Above amount of borrowings are net of upfront fees paid 3.80 crores (Previous year : 5.02 Crores)

The maximum amount due during the year is `500 crores (Previous year :` 600 Crores)

There have been no defaults in repayment of principal and interest on borrowings during the reporting periods.

The quarterly returns or statements of current assets filed by the Company with the banks are in agreement with the books of account of the Company.

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

18.1 Details of security of the secured loans:

Details of Loan As at As at Security March 31, March 31, 2022[#] 2021[#]
1. 2,500 (Previous Year : 2,500), 250.00 250.00 Debentures are secured by hypothecation of Company’s 3 Months T-Bill + 188 bps, moveable properties, both present and future, situated Listed, Secured, Redeemable, at Manali, Viralimalai (other than moveable assets of Non-Convertible Debentures of Coated Fabrics Business) and Gummidipoondi in the
the face value of 10 lakhs each* State of Tamil Nadu, Jhiwana in the State of Rajasthan,
Terms and conditions Malanpur and Special Economic Zone, Indore in the State of Madhya Pradesh, Kashipur in the State of
a) Redeemable at face value in Uttarakhand (other than moveable assets of Laminated
one single instalment at the end of 2nd year from the Fabrics Business) and Dahej in the State of Gujarat date of allotment. (excluding certain assets).
Terms and conditions a) Redeemable at face value in one single instalment at the end of 2nd year from the date of allotment.
b) Coupon is payable on a quarterly basis every year.
2 (i) Term loan from Banks * 1,463.21 1,390.07 Moveable property

(a)(ii) Out of the loans as at 2(i), loans aggregating to 454.38 Crores (Previous Year – 290.77 Crores ) are in the process of being secured by hypothecation of Company’s moveable properties, both present and future, situated at Manali, Viralimalai(other than moveable assets of Coated Fabrics Business) and Gummidipoondi in the State of Tamil Nadu, Jhiwana in the State of Rajasthan, Malanpur and Special Economic Zone, Indore in the State of Madhya Pradesh and Kashipur (other than moveable assets of Laminated Fabrics Business) in the State of Uttarakhand and Dahej in the State of Gujarat (save and except certain assets).

Immoveable property

320 Annual Report 2021-22

Annual Report 2021-22 321

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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----- Start of picture text -----

Details of Loan As at As at Security
March 31, March 31,
2022 [#] 2021 [#]
----- End of picture text -----

				(b)(ii) Out of the loans as at 2(b)(i)) loans aggregating
				to`289.09 Crores (Previous Year –`400.99 Crores)
				are additionally secured by equitable Mortgage of
				Company’s immoveable properties, both present and
				future, situated at Jhiwana in the State of Rajasthan.
				(b) (iii) Out of the loans as at 2(i), the term loans
				aggregating to Nil (Previous Year –`38.50 Crores)
				are to be further secured by equitable mortgage of
				Company’s immoveable properties, both present and
				future, situated at Jhiwana in the State of Rajasthan.
	(ii)	Term loans from banks	412.98	428.88 Term loan is secured by pledge of 85% of the share
				capital of SRF Europe Kft held by SRF Global BV,
				mortgage of land and building of SRF Europe Kft and exclusive charge over the fxed assets of SRF Europe Kft.
	(iii)	Term loans from banks	233.70	163.79 Out of 2(iii), Term loan of`119.70 crores (previous
				year`163.79 crores) is secured by mortgage of existing
				plant and machinery, land and building and/or any construction in future of Packaging flm Factory (SRF Industries (Thailand) Ltd) and`114.00 crores is to be charged against certain specifc Plant and machinery of Packaging flm Factory (SRF Industries (Thailand) Ltd).
3	(i)	Term loans from Others	-	21.95 Term loan availed from International Finance
				Corporation, Washington is secured by continuing
				coverage mortgage bond over the land, special notarial bond and general notarial bond over the property of
				SRF Flexipak (South Africa) (Pty) Limited.
	(ii)	Term loans from Others	141.40	175.59 Loan of`141.40 Crores (Previous Year –`175.59
				Crores) is secured by the hypothecation and equitable
				mortgage of Company’s moveable and immoveable
				properties at Dhar in the State of Madhya Pradesh.
4	(i)	Loans repayable on	158.30	233.38 Secured by hypothecation of stocks, stores and book
		demand from banks		debts (current assets), both present and future at
				Manali, Viralimalai (other than current assets of Coated
				Fabrics Business) and Gummidipoondi in the State
				of Tamil Nadu, Jhiwana in the State of Rajasthan,
				Malanpur and Indore in the State of Madhya Pradesh
				and Kashipur (other than current assets of Laminated
				Fabrics Business) in the State of Uttarakhand.
	(ii)	Loans repayable on	33.63	64.33 Working capital facilities is secured by pledge of 85%
		demand from banks		of the share capital of SRF Europe Kft held by SRF
				Global BV and pledge over receivables arising out of
				trade agreements
	(iii)	Cash credit from banks	1.90	0.44 Working capital facilities availed by SRF Flexipak (South
				Africa) (Pty) Ltd. are secured by cession of debtors and
				limited cession and pledge of credit balances
	(iv)	Bills discounted with Banks	-	47.15 Secured against certain trade receivables of the
				Company.(Also Refer note 13(iv))

Such hypothecation in respect of Non convertible debentures mentioned in point no. 1 and hypothecation and equitable mortgage mentioned in point no 2 rank pari-passu inter se between term loans from banks / Non convertible debentures (both current year and previous year)

Gross of upfront fees paid `3.80 Crores (Previous year -` 5.02 Crores)

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

18.2 Terms of loans

As at March 31, 2022

NON CURRENT BORROWINGS

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----- Start of picture text -----

Loan Category Frequency of Interest rate Up to Up to Up to From
principal March 31, March 31, March 31, 2026 to
repayments 2023 2024 2025 2027
----- End of picture text -----

Redeemable	Redeemable at	Floating rate at 5.63%	250.00	-	-	-
Non-Convertible	face value in one
Debentures	Instalment at the
	end of second year
Term	Half	Ranging
loans from banks	yearly instalment	from 1.23% to 2.35%	63.98	63.98	280.71	-
	Quarterly Instalment	Ranging
		from 0.41% to 5.85%	383.11	348.96	287.38	439.57
	Bullet payments	Ranging
		from 1.18% to 6.65%	15.00	-	227.19	-
Term	Half year payments	Floating rate at 1.46%	40.38	40.38	40.38	20.27
loans from Others
			752.47	453.32	835.66	459.84

Amounts mentioned above are gross of upfront fees paid of ` 3.80 crores

CURRENT BORROWINGS

Short term borrowings are either payable in instalments within one year or repayable on demand. For short term borrowings, interest rates ranges from 0.26% to 7.50%

==> picture [423 x 36] intentionally omitted <==

Redeemable Non-	Redeemable at	Floating rate at 5.23%	-	250.00	-	-
Convertible Debentures	face value in one
	Instalment at the
	end of second year
Term loan from banks	Half	Ranging
	yearly instalment	from 1.23% to 7.85%	17.63	55.76	23.26	232.62
	Quarterly	Ranging
	Instalment	from 0.41% to 6.25%	379.83	398.00	309.90	544.75
	Yearly payments	Floating rate at 7.25%	4.00	1.00	1.00	-
	Bullet payments	Fixed rate at 6.65%	-	15.00	-	-
Term loan from others	Half year payments	Ranging
		from 2.01% to 2.21%	60.95	39.00	39.00	58.58
			462.41	758.76	373.16	835.95

Amounts mentioned above are gross of upfront fees paid of ` 5.02 Crores.

CURRENT BORROWINGS

Short term borrowings are either payable in instalments within one year or repayable on demand. For short term borrowings, interest rates ranges from 0.30% to 7.50%

322 Annual Report 2021-22

Annual Report 2021-22 323

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Terms of repayment

1) Rupee term loans from banks of 38.50 Crores prepaid in current year (Previous year: 38.50 Crores repayable in 3 half yearly instalments from August 2021).
2) Rupee term loans from banks of 8.22 Crores is repayable in 2 quarterly instalments from June 2022 (Previous year: 24.66 Crores repayable in 6 quarterly instalments from June 2021)
3) Rupee term loans from banks of 6.00 Crores prepaid in current year (Previous year: 6.00 Crores repayable in 3 annual instalments from December 2021).
4) Redeemable non convertible debenture of 250.00 Crores is repayable in one bullet instalment in September 2022.(Previous year: 250 crores repayable in one bullet instalment in September 2022)
5) Rupee term loans from banks of 203.13 Crores is repayable in 13 quarterly instalments from April 2022 (Previous year: 250 crores repayable in 16 quarterly instalments from July 2021).
6) Foreign currency term loan from banks of 23.67 Crores is repayable in 1 quarterly instalment in June 2022 (Previous year: 114.30 Crores repayable in 5 quarterly instalments from June 2021).
7) Foreign currency term loan from banks of 265.87 Crores is repayable in 12 quarterly instalments from May 2022 (Previous year: 361.33 Crores are repayable in 16 quarterly instalments from May 2021).
8) Foreign currency term loan from banks of 94.66 Crores is repayable in 7 quarterly instalments from April 2022 (Previous year: 143.69 Crores are repayable in 11 quarterly instalments from April 2021).
9) Foreign currency term loan from others of 141.40 Crores is repayable in 7 half yearly instalments from April 2022 (Previous year: 175.59 Crores are repayable in 9 half yearly instalments from April 2021).
10) Foreign currency term loan from banks of 15.00 Crores is repayable in one bullet instalment in June 2022 (Previous year: 15.00 Crores is repayable in one bullet instalment in June 2022).
11) Foreign currency term loan from banks of 109.29 Crores is repayable in 5 quarterly instalments from April 2022 (Previous year: 145.82 Crores are repayable in 9 quarterly instalments from April 2021)
12) Foreign currency term loan from bank of 288.99 Crores is repayable in 4 half yearly instalments from September 2022 and then 12 monthly instalments from April 2024 onwards (Previous year: 290.77 Crores repayable in 5 half yearly instalments from March 2022 and then 12 monthly instalments from April 2024 onwards).
13) Foreign currency term loan from bank of ` 227.19 Crores is repayable in one bullet instalment in March 2025 (Previous year: Nil)
14) Foreign currency term loan from bank of ` 227.19 Crores is repayable in 17 quarterly instalments from March 2023 (Previous year: Nil)
15) Foreign currency term loan from others of 21.95 Crores repaid in current year (Previous year: 21.95 Crores are repayable in 2 half yearly instalments from May 2021).
16) Foreign currency term loan from bank of 412.98 Crores is repayable in 19 quarterly instalments from June 2022 (Previous year : 428.88 Crores are repayable in 20 quarterly instalments from March 2022).
17) Foreign currency term loan from bank of 119.70 Crores is repayable in 6 half yearly instalments from September 2022 (Previous year : 163.79 Crores are repayable in 8 half yearly instalments from September 2021).
18) Foreign currency term loan from bank of ` 114.00 Crores is repayable in 16 quarterly instalments from October 2022 (Previous year: Nil)

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

19 PROVISIONS

	As at March 31, 2022	As at March 31, 2021
Non-Current
Provision for employee benefts Provision for compensated absence (Refer note 36.3)	46.08	39.24
Provision for retention pay (Refer note 36.3)	0.17	0.17
Other employee benefts	5.33	4.14
	51.58	43.55
Current
Provision for employee benefts Provision for compensated absence(Refer note 36.3)	7.38	8.68
	7.38	8.68
TRADE PAYABLES
	As at March 31, 2022	As at March 31, 2021
Total outstanding dues of micro enterprises and small enterprises#
- Acceptances* - Other than acceptances	3.61 52.37	- 33.37
Total outstanding dues of creditors other than micro enterprises and small enterprises
- Acceptances*	410.27	139.97
- Other than acceptances	1,630.10	1,411.85
	2,096.35	1,585.19

20 TRADE PAYABLES

Refer to note 20.1

Acceptances represents invoices discounted by vendors with banks

(i) Ageing of trade payables :

Outstanding for following periods from due date of payment	As at March 31, 2022
	Dues of micro enterprises and small enterprises Dues of creditors other than micro enterprises and small enterprises Disputed dues of micro enterprises and small enterprises Disputed dues of creditors other than micro enterprises and small enterprises Total
Not due Less than one year 1-2 Years 2-3 Years More than 3 years Unbilled dues	55.98 1,743.01 - - 1,798.99 - 97.11 - - 97.11 - 3.13 - - 3.13 - - - - - - 0.13 - - 0.13 - 196.99 - - 196.99
	55.98 2,040.37 - - 2,096.35

324 Annual Report 2021-22

Annual Report 2021-22 325

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Outstanding for following periods from due date of payment	As at March 31, 2021
	Dues of micro enterprises and small enterprises Dues of creditors other than micro enterprises and small enterprises Disputed dues of micro enterprises and small enterprises Disputed dues of creditors other than micro enterprises and small enterprises Total
Unbilled dues Not due Less than one year 1-2 Years 2-3 Years More than 3years	- 144.40 - - 144.40 33.37 1,287.92 - - 1,321.29 - 113.78 - - 113.78 - 3.81 - - 3.81 - - - - - - 1.91 - - 1.91
	33.37 1,551.82 - - 1,585.19

20.1 Total outstanding dues of micro enterprises and small enterprises

Trade Payables include the following dues to micro and small enterprises covered under “The Micro, Small and Medium Enterprises Development Act, 2006” (MSMED) to the extent such parties have been identified from the available information.

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As at As at
March 31, 2022 March 31, 2021
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Amount remaining unpaid to suppliers under MSMED (suppliers)
as at the end of year
- Principal amount **	108.82	52.02
- Interest due thereon	-	-
Amount of payments made to suppliers beyond the appointed day
during the year
- Principal amount	-	-
- Interest actually paid under section 16 of MSMED /settled	-	-
Amount of interest due and payable for delay in payment (which	-	-
has been paid but beyond the appointed day during the year) but
without adding interest under MSMED
Interest accrued and remaining unpaid at the end of the year
- Interest accrued during the year	-	-
- Interest remaining unpaid as at the end of the year	-	-
Interest remaining due and payable even in the succeeding years,	-	-
until such date when the interest dues are actually paid, for the
purpose of disallowance of a deductible expenditure

** including payable to micro enterprise and small enterprise included in other financial liabilities (refer note 21)

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

21 OTHER FINANCIAL LIABILITIES

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----- Start of picture text -----

As at As at
March 31, 2022 March 31, 2021
----- End of picture text -----

Non-Current
Derivatives carried at fair value through other comprehensive income
- Forward exchange contracts	used for hedging			0.33	-
- Interest rate swaps used for	hedging			-	0.54
Payables to capital creditors
- Total outstanding dues of	creditors	other than	micro
enterprises and small enterprises
Acceptances*				153.53	-
				153.86	0.54
*Acceptances represent amount payable under letter		of credit arrangements with the vendor/banks
Current
Interest accrued but not due on borrowings				4.47	5.79
Unpaid dividends^				6.72	6.57
Security deposits received				8.15	8.63
Payables to capital creditors
- Total outstanding dues	of micro	enterprises	and
small enterprises#
Acceptances*				10.56	-
Other than acceptances				42.28	18.65
- Total outstanding dues of	creditors	other than	micro	276.66	349.46
enterprises and small enterprises
Derivatives carried at fair value through other comprehensive income
- Forward exchange contracts used for hedging				5.03	-
Others				17.83	43.19
				371.70	432.29

^ Amount will be credited to investor education and protection fund if not claimed within seven years from the date of declaration of dividend.

# Refer note 20.1

Acceptances represent invoices discounted by vendors with banks.

22 TAX ASSETS AND LIABILITIES

	As at March 31, 2022	As at March 31, 2021
Non - Current tax assets
Advance tax(net ofprovision for tax)	21.31	33.74
Current tax liablities
Provision for tax(net of advance tax)	14.20	12.49

326 Annual Report 2021-22

Annual Report 2021-22 327

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

23 OTHER LIABILITIES

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----- Start of picture text -----

As at As at
March 31, 2022 March 31, 2021
----- End of picture text -----

Non-current
Deferredgovernmentgrants *	39.56	42.77
	39.56	42.77
Current
Contract liability (Refer note 41)	28.32	18.40
Statutory liabilities	60.95	38.07
Payable to gratuity trust (Refer note 36.2)	11.57	4.52
Deferred government grants*	1.77	-
Otherpayables	41.36	31.74
	143.97	92.73

The group had received financial assistance in earlier year from:
The Industrial Development Corporation of South Africa towards setting up of property, plant and equipment under a government program; and
Ministry of Foreign Affair and Trade, Hungary under the governments’ ”Scheme for Investment Promotion” to promote investment and job creation.

The unamortised grant amount as on March 31, 2022 is 41.33 crores (Previous year : 42.77 crores).

24 REVENUE FROM OPERATIONS*

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Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

Sale of products
Manufactured goods	12,138.37	8,214.10
Tradedgoods	174.38	81.30
	12,312.75	8,295.40
Other operating revenues
Claims	0.01	0.52
Export and other incentives	49.47	70.65
Scrap sales	48.11	29.98
Other operatingincome	23.32	3.49
	120.91	104.64
	12,433.66	8,400.04

Reconciliation of revenue from sale of products with the contracted price

	Year ended March 31, 2022	Year ended March 31, 2021
Contracted price	12,421.10	8,438.70
Less: Discounts,allowances and claims	(108.35)	(143.30)
Sale ofproducts	12,312.75	8,295.40

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

25 OTHER INCOME*

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

Interest Income
- from customers	0.01	0.01
- on loans, deposits and investments	20.51	1.22
- on others	3.47	7.80
Net gain on sale/discarding of property, plant and equipment	2.90	0.39
Net gain on fnancial assets measured at fair value through proft and loss Net foreign currency exchange fuctuation gains	7.06 72.71	25.45 11.86
Provision / liabilities no longer required written back	3.66	11.49
Other non-operatingincome	5.19	8.13
	115.51	66.35

Refer Note 42 B

26.1COST OF MATERIALS CONSUMED*

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
Opening stock of raw materials 683.36 512.59
----- End of picture text -----

Opening stock of raw materials	683.36	512.59
Add: Purchases of raw materials	6,545.92	4,198.45
	7,229.28	4,711.04
Less: Closingstock of raw materials	1,058.18	683.36
Cost of materials consumed*	6,171.10	4,027.68

Including packing material

26.2 PURCHASES OF STOCK IN TRADE*

	Year ended March 31, 2022 Year ended March 31, 2021
Purchase of stock in trade ^	175.59 62.92
	175.59 62.92

Refer Note 42 B

^ includes amount of ` 15.71 crores acquired through Business Combination (Refer note 46 below)

26.3 CHANGES IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK IN TRADE*

	Year ended March 31, 2022	Year ended March 31, 2021
Inventories at the end of the year:
Stock-in-Process	237.41	176.47
Finished goods	535.44	338.59
Tradedgoods	27.39	4.32
	800.24	519.38

Refer Note 42 B

328 Annual Report 2021-22

Annual Report 2021-22 329

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
Effect of changes in exchange currency rates
----- End of picture text -----

Efect of changes in exchange currency rates
Stock-in-Process	(0.46)	0.56
Finished goods	0.82	2.47
Tradedgoods	0.75	-
	1.11	3.03
Inventories at the beginning of the year:
Stock-in-Process	176.47	156.45
Finished goods	338.59	281.24
Tradedgoods	4.32	7.02
	519.38	444.71
Net(increase) / decrease	(279.75)	(71.66)

Refer Note 42 B

27 EMPLOYEE BENEFITS EXPENSE*

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

Salaries and wages, including bonus	618.82	515.89
Contribution to provident and other funds	45.46	40.89
Workmen and staf welfare expenses	87.11	63.66
Share basedpayment expense(Refer note 37)	28.61	0.96
	780.00	621.40

Refer Note 42 B

28 FINANCE COST

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

Interest cost ^
- Non-convertible debentures	13.23	12.27
- Term loans and others	61.74	99.46
- Lease liabilities	8.69	6.49
Other borrowing costs	17.86	14.95
Exchange diferences regarded as an adjustment to borrowingcosts	14.41	0.78
	115.93	133.95

^ pertains to liabilities measured at amortised cost.
Refer Note 42 B

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

29 DEPRECIATION AND AMORTISATION EXPENSE*

	Year ended March 31, 2022	Year ended March 31, 2021
Depreciation of property, plant and equipment	484.64	426.78
Amortisation of intangible assets	8.16	8.24
Depreciation of Right of use assets	24.43	18.06
	517.23	453.08

Refer Note 42 B

30 OTHER EXPENSES*

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
Credit impaired assets provided / written off 0.95 11.94
----- End of picture text -----

Credit impaired assets provided / written of	0.95	11.94
Labour production	70.63	52.44
Directors' sitting fees	0.66	0.29
Expenditure on corporate social responsibility** Property, plant and equipment provided/ written of ^	19.06 11.48	12.88 1.37
Freight charges	547.78	302.06
Insurance	47.66	39.57
Power and fuel	1,135.56	717.34
Legal and professional charges	40.98	33.10
Rates and taxes	19.76	9.91
Rent***	30.36	17.92
Repairs and maintenance
- Buildings	9.11	5.38
- Plant and machinery	201.53	162.42
- Other maintenance	43.23	37.34
Selling commission	35.73	26.83
Stores and spares consumed	81.80	66.54
Travelling and conveyance	12.48	5.84
Auditor remuneration#****
- Audit Fees	1.52	1.52
- For limited review of unaudited fnancial results - For Corporate governance, consolidated fnancial statements and other certifcates	0.97 0.10	0.94 0.22
- For tax audit	0.08	0.08
- Reimbursement of out of pocket expenses Efuent disposal expenses	0.15 121.99	0.08 77.10
Miscellaneous expenses	49.95	43.26
	2,483.52	1,626.37

Refer Note 42 B
** Refer to note- 47(d)
*** Refer to note- 43
including fees paid to auditors of subsidiary companies
^ including amount of ` 5.75 crores (previous year: Nil) recognised on fair valuation of assets classified as held for sale. Also Refer note 42 C.
**** Excluding fees Nil (Previous year: ` 0.43 Crore) for QIP related attestation and certification, netted off from securities premium.

330 Annual Report 2021-22

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

31 INCOME TAX RECOGNISED IN PROFIT AND LOSS

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

	Tax expense related to continuing operations	696.63	414.40
	Tax expense related to discontinued operations	-	(2.42)
		696.63	411.98
(a)	Tax expense related to continuing operations
	Current tax
	In relation to current year	657.53	357.97
	Adjustment in relation to earlieryears	-	0.02
		657.53	357.99
	Deferred tax
	- MAT credit entitlement
	In relation to current year	-	-
	Adjustment in relation to earlieryears	(25.27)	(5.38)
		(25.27)	(5.38)
	- Others
	In relation to current year	56.41	57.44
	Adjustment in relation to earlieryears	7.96	4.35
		64.37	61.79
(b)	Tax expense related to discontinued operations
	Deferred tax
	- Others
	In relation to current year	-	(0.28)
	Adjustment in relation to earlieryears	-	(2.14)
		-	(2.42)

The income tax expenses for the year can be reconciled to the accounting profits as follows:

	Year ended March 31, 2022	Year ended March 31, 2021
Proft before tax
From continuing operations	2,585.55	1,612.65
From discontinued operations	-	(2.73)
Total Proft before tax	2,585.55	1,609.92
Income Tax Expenses @ 34.944% (Previous year @ 34.944%)	903.50	562.57
Efect of deductions (research and development, share issue	(79.28)	(54.59)
expenses and deductions under Chapter - VIA of Income Tax Act)
Efect of expenses that are not deductible in determining taxable profts	13.28	5.48

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
Effect of re-measurement of deferred tax balances / lower tax rate (21.59) (22.73)
on certain temporary differences pursuant to Section 115BAA of
----- End of picture text -----

Efect of re-measurement of deferred tax balances / lower tax rate on certain temporary diferences pursuant to Section 115BAA of	(21.59)	(22.73)
Income tax act.
Efect of Nil tax/exemption of overseas subsidiaries	(34.13)	(40.05)
Efect of additional expenses deductible in subsidiaries	(6.89)	-
Efect of lower tax rates in overseas subsidiaries	(61.82)	(40.14)
Others	0.88	2.45
Income tax expenses recognised in proft and loss in	713.94	412.99
relation to currentyear
Income tax expenses recognised in proft and loss in relation to	(17.31)	(1.01)
earlieryears(Refer note(ii)below)
Total Income tax expenses recognised inproft and loss	696.63	411.98

Notes:

(i) The tax rate used for the current year reconciliation above is the corporate tax rate of 34.944% (2021: 34.944%) payable by corporate entities in India on taxable profits under the Indian tax law.
(ii) Income tax in relation to earlier years includes tax credit of 15.42 Crores (Previous year: tax expense of 1.62 Crores) which is related to finalization and determination of deduction/allowance claimed for earlier years under Chapter-VIA of the Income-tax Act, 1961, for generation of power from captive power plants which is based on finalization of transfer pricing study /tax audit reports of the previous years.

32 INCOME TAX RECOGNISED IN OTHER COMPREHENSIVE INCOME

	Year ended March 31, 2022	Year ended March 31, 2021
Arising on income and expense recognised in other
comprehensive income
Net (gain)/ loss on designated portion of hedging instruments in	(13.03)	(46.24)
cash fow hedges
Cost of hedging reserve	(0.45)	(0.33)
Remeasurement of defned beneft obligation	2.55	(0.84)
	(10.93)	(47.41)
Bifurcation of the income tax recognised in other
comprehensive income into:
Items that will be reclassifed to proft or loss	(13.48)	(46.57)
Items that will not be reclassifed toproft or loss	2.55	(0.84)
	(10.93)	(47.41)

332 Annual Report 2021-22

Annual Report 2021-22 333

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

33 CONTINGENT LIABILITIES

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----- Start of picture text -----

As at As at
March 31, 2022 March 31, 2021
----- End of picture text -----

Claims against the group not acknowledged as debts:
Goods and Services tax, excise duty, custom duty	8.39	23.11
and service tax *
Sales tax and entry tax **	19.17	20.38
Income Tax (Also refer note b (ii) and b (iii) below)***	22.26	3.74
Others****	11.27	13.19

Amount deposited against contingent liability 1.23 Crores (Previous year: 1.79 Crores)
** Amount deposited against contingent liability 6.74 Crores (Previous year: 7.59 Crores)
*** Amount deposited against contingent liability 2.98 Crores (Previous year: 3.09 Crores)

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

34 CAPITAL AND OTHER COMMITMENTS

		As at March 31, 2022	As at March 31, 2021
(i)	Estimated amount of contracts remaining to be executed on	960.57	751.56
	capital account and not provided for (net of advances)

(ii) The group has other commitments, for purchases / sales orders which are issued after considering requirements per operating cycle for purchase / sale of goods and services, employee benefits including union agreements in normal course of business. The group does not have any long term contracts including derivative contracts for which there will be any material foreseeable losses which have not been provided for.
(iii) Export obligation under advance license scheme on duty free import of specific raw materials, remaining outstanding is 721.78 crores (Previous year: 619.36 crores).
**** Amount deposited against contingent liability 0.42 Crore (Previous year: 0.40 Crore)
**** Includes demand by Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Ltd. (MPPKVV Ltd) of 8.12 Crores (Previous year: 11.40 Crores).

b. (i) The Company has been served with show cause notices regarding certain transactions as to why additional customs / excise duty / service tax / goods and service tax amounting to 18.86 Crores (Previous year: 18.58 Crores) should not be levied. The Company has been advised that the contention of the department is not tenable and hence the show cause notice may not be sustainable.
(ii) The Company has received a notice for assessment year 2018-19 on April 13, 2022 on account of non deduction of TDS on foreign payments involving an amount of ` 14.34 Crores. Based on the facts of the case and Company’s assessment, the Company is of the view that the proposed adjustments are not likely to sustain.
(iii) Besides the above, the Company has received final assessment orders for assessment years 2017-18 and 2018-19 on April 30,2022 in which adjustments amounting to 277.31 Crores and 323.09 Crores respectively were made on account of transfer pricing adjustments, research and development expenditure and others etc.(in line with earlier years) and a demand of 1.20 Crores and 96.71 Crores respectively has been raised. The Company plans to file rectification application towards certain computation errors and for rest of the issues, appeal will be filed before Income Tax Appellate Tribunal. Based on the facts of the case and the management’s assessment, the Company is of the view that the proposed adjustments are not likely to sustain.
c. The amounts shown above represents the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be predicted accurately or relate to a present obligations that arise from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate cannot be made.

35 RELATED PARTY TRANSACTIONS

35.1 Description of related parties under Ind AS- 24 “ Related party disclosures “

Ultimate Holding Entity ABR Family Trust Holding Company KAMA Holdings Limited

Key management personnel (KMP) #

Arun Bharat Ram* Ashish Bharat Ram Kartik Bharat Ram Tejpreet S Chopra Lakshman Lakshminarayan Vellayan Subbiah Meenakshi Gopinath Pramod Gopaldas Gujarathi Bharti Gupta Ramola Yash Gupta Puneet Yadu Dalmia

Fellow subsidiaries #

KAMA Realty (Delhi) Limited Shri Educare Limited SRF Transnational Holding Limited

Post employment benefit plans trust # SRF Limited Officers Provident Fund Trust SRF Employees Gratuity Trust SRF Officers Gratuity Trust

Enterprises over which KMP have significant influence #

SRF Foundation

SRF Welfare Trust BLP Industry AI Private Limited

Relatives of KMP #

Sushil Ramola Murugappan Vellayan Subbiah

Relatives of KMP of Holding Company #

Nirmala Kothari

334 Annual Report 2021-22

Annual Report 2021-22 335

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

KMP of Holding Company #	Enterprises over which relative of
Ekta Maheshwari	KMP has control #
Jagdeep Singh Rikhy ***	Murugappa & Sons

Only with whom the Company had transactions during the year

Upto August 31, 2021
** Upto March 31, 2022
*** From December 03, 2021

35.2 Transactions with related parties

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Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

Sale of property, plant & equipment and intangible assets to
Fellow Subsidiaries	0.19	-
	0.19	-
Sale of goods to
Enterprises over which KMP have signifcant infuence	0.04	-
	0.04	-
Rent paid
Fellow Subsidiaries	6.60	6.60
Key management personnel	0.26	0.27
Enterprises over which KMP have signifcant infuence	0.27	0.27
	7.13	7.14
Reimbursement of expenses from
Holding Company	0.01	0.01
Fellow Subsidiaries	0.04	0.05
	0.05	0.06
Receiving of Services from:
Enterprises over which KMP have signifcant infuence	0.19	0.07
	0.19	0.07
Deposits received back from
Keymanagementpersonnel	0.01	-
	0.01	-
Contribution for expenditure on corporate
social responsibility
Enterprises over which KMP have signifcant infuence	21.38	9.18
	21.38	9.18
Contribution to post employment beneft plans
Post employment beneftplans trust	30.20	35.41
	30.20	35.41

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
Employee benefit obligations transferred to
----- End of picture text -----

Employee beneft obligations transferred to
Holding Company	-	0.02
Fellow Subsidiaries	0.20	-
Enterprises over which KMP have signifcant infuence	*	*
	0.20	0.02
* Amount in absolute Nil (Previous year: `25,962)
Equity dividend paid
Holding Company	107.43	72.12
Key management personnel	0.15	0.12
Relatives of KMP	0.11	0.07
KMP of Holding Company	^^	^^
Relatives of KMP of Holding Company	^	^
Enterprises over which relative of KMP has control	^^^	^^^
	107.69	72.31
^ Amount in absolute`358 (Previous year:`240)
^^ Amount in absolute`1,095 (Previous year:`168)
^^^ Amount in absolute`36,966 (Previous year:`24,618)
Bonus shares issued
Holding Company (No. of shares:120,196,000;previous	-	-
year:Nil )
Key management personnel (No. of shares:178,968;previous	-	-
year:Nil)
Relatives of KMP (No. of shares:110,388;previous year:Nil)	-	-
KMP of Holding Company (No. of shares:76;previous year:Nil)	-	-
Relatives of KMP of Holding Company (No. of shares:40;	-	-
previous year:Nil)
Enterprises over which relative of KMP has control (No.	-	-
of shares:4,136; previousyear:Nil)
	-	-

336 Annual Report 2021-22

Annual Report 2021-22 337

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

35.3 Outstanding Balances:

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----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

Commission payable
Keymanagementpersonnel	18.90	12.84
	18.90	12.84
Receivable
Post employment beneftplans trust	11.48 11.48	1.49 1.49
Payable
Post employment beneftplans trust	13.30	6.02
Security deposits outstanding Fellow Subsidiaries Key management personnel Enterprises over which KMP have signifcant infuence	13.30 3.27 0.12 0.14 3.53	6.02 3.27 0.13 0.14 3.54

35.4 Key management personnel compensation

	Year ended March 31, 2022	Year ended March 31, 2021
Short-term benefts * Post-employment benefts Other long-term benefts	34.88 2.15 1.19	26.21 1.44 0.97
	38.22	28.62

Includes sitting fees and commission paid/ payable to non executive directors

36 EMPLOYEE BENEFITS

36.1 Defined contribution plans:

Amounts recognized in the statement of profit and loss are as under:

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----- Start of picture text -----

Indian entities Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

Superannuation fund (Refer to note (i) below)	0.59	0.61
Provident fund administered through Regional Provident Fund	15.11	14.02
Commissioner (Refer to note (ii) below
Employees’ State Insurance Corporation	0.40	0.43
National Pension Scheme	1.71	1.34
	17.81	16.40

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Foreign subsidiaries	Year ended March 31, 2022	Year ended March 31, 2021
Contribution to provident fund	1.47	1.21
Skill, development and Social Security Fund	4.87	3.10
Pension fund	1.63	1.53
	7.97	5.84

The expenses incurred on account of the above defined contribution plans have been included in Note 27 “Employee Benefits Expenses” under the head “Contribution to provident and other funds.”

(i) Superannuation fund

The Company makes contributions to a Trust which in turn contributes to ICICI Prudential Life Insurance Company Limited. Apart from being covered under the Gratuity Plan described below, the employees of the Company also participate in a defined contribution superannuation plan maintained by the Company. The Company has no further obligations under the plan except making annual contributions based on a specified percentage of each covered employee’s salary. From November 1, 2006, the Company provided an option to the employees to receive the said benefit as cash compensation along with salary in lieu of the superannuation benefit. Thus, no contribution is required to be made for the category of employees who opted to receive the benefit in cash.

(ii) Provident fund administered through Regional Provident Fund Commissioner

All employees are entitled to Provident Fund benefits as per the law. For certain category of employees the group administers the benefits through a recognized Provident Fund Trust. For other employees contributions are made to the Regional Provident Fund Commissioners . The Government mandates the annual yield to be provided to the employees on their corpus. This plan is considered as a Defined Contribution Plan. For the first category of employees (covered by the Trust), the group has an obligation to make good for the shortfall, if any, between the yield on the investments of the trust and the yield mandated by the Government and these are considered as Defined Benefit Plans and are accounted for on the basis of an actuarial valuation.

36.2 Defined benefit plans

The group sponsors funded defined benefit plans for qualifying employees. The defined benefit plans are administered by separate funds which are legally separate from the group. These plans are:

(a) Gratuity

(b) Provident fund for certain category of employees administered through a recognised provident fund trust
(c) Legal Severance pay & Health care (Unfunded) as applicable with respect to foreign entities
(i) These plans typically expose the company to actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Investment Risk

The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

338 Annual Report 2021-22

339

Annual Report 2021-22

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Salary Risk

Interest Risk

The plan exposes the group to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of the providing the above benefits and will thus result an increase in value of the liability.

Longevity Risk

The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of the plan participants both during and after the employment. An increase in the life expectancy of plan participants will increase the plan’s liability.

(ii) The principal assumption used for the purpose of the actuarial valuation were as follows:

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Indian entities As at March 31, 2022 As at March 31, 2021
Gratuity Provident Fund Gratuity Provident Fund
----- End of picture text -----

Discount Rate	7.16%	7.16%	6.69%	6.69%
Expected statutory interest rate	-	8.10%	-	8.50%
Salary increase	8.00%	-	7.00%	-
Retirement Age (years)	58.00	58.00	58.00	58.00
Mortality Rates	IALM	IALM	IALM	IALM
	(2012-14)	(2012-14)	(2012-14)	(2012-14)
Withdrawal rate
Upto 30 years	20.00%	20.00%	20.00%	20.00%
31 to 44 years	7.00%	7.00%	7.00%	7.00%
Above 44years	8.00%	8.00%	8.00%	8.00%

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----- Start of picture text -----

Foreign subsidiaries Legal Severance Pay (unfunded)
As at As at
March 31, 2022 March 31, 2021
----- End of picture text -----

Discount Rate	3.18%	2.70%
Salary increase	6.35%	6.25%
In service mortality	TMO	TMO
	2017	2017
Retirement Age	55	55
Withdrawal Rate
- up to 20 years	16%	15%
- 21-30	16%	15%
- 31-40	7%	8%
- 41-50	3%	3%
- 51 onwards	2%	2%

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

The cost of the defined benefit plans and other long term benefits are determined using actuarial valuations. An actuarial valuations involves making various assumptions that may differ from actual developments in the future. These includes the determination of the discount rate, future salary increases and mortality rate. Due to these complexity involved in the valuation it is highly sensitive to the changes in these assumptions. All assumptions are reviewed at each reporting date.

The present value of defined benefit obligation and the related current service cost and past service cost were measured using projected unit credit method.

(iii) Amounts recognised in statement of profit and loss in respect of these benefit plans are as follows:

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----- Start of picture text -----

Indian entities Year ended Year ended
March 31, 2022 March 31, 2021
Gratuity Provident Fund Gratuity Provident Fund
Current Service cost 9.09 7.73 8.03 6.75
Interest expenses (net 0.30 - 1.07 -
of expected return
on plan assets)
9.39 7.73 9.10 6.75
Foreign subsidiaries Legal Severance Pay (unfunded)
Year ended Year ended
March 31, 2022 March 31, 2021
Current/past Service cost 1.10 0.93
Net interest expenses 0.12 0.06
1.22 0.99
----- End of picture text -----

The current service cost and the net interest expenses for the year are included in Note 27 “Employee Benefits Expenses” under the head Contribution to provident and other funds

(iv) Amount recognized in other comprehensive income:

Indian entities	Gratuity
	Year ended March 31, 2022 Year ended March 31, 2021
Actuarial (gain)/losses on plan assets Actuarial (gain)/losses arising from changes in fnancial assumptions Actuarial (gain)/losses arising from changes in experience adjustments	(0.31) (5.84) 3.71 0.49 3.90 2.94
	7.30 (2.41)

340 Annual Report 2021-22

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Foreign subsidiaries	Legal Severance Pay (unfunded)
	Year ended March 31, 2022 Year ended March 31, 2021
Actuarial (gain)/losses arising from changes in fnancial assumptions Actuarial (gain)/losses arising from changes in experience adjustments and demographic assumption	(0.23) (0.37) 0.40 0.10
	0.17 (0.27)

(v) The amount included in consolidated balance sheet arising from the entity’s obligation in respect of its defined benefit plans is as follows:

Indian entities	As at March 31, 2022 As at March 31, 2021	As at March 31, 2022 As at March 31, 2021
	Gratuity Provident Fund Gratuity Provident Fund
Present value of funded defned beneft obligation Fair value ofplan assets	107.45 95.88	155.50 98.72 158.91 157.64 94.20 157.71
Surplus/ (Defcit) Efect of asset ceiling,if any	(11.57) -	2.14 (4.52) (1.20) (2.14) - -
Net assets/ (liability)	(11.57)	- (4.52) (1.20)

Foreign subsidiaries		Legal Severance Pay (unfunded)
		As at March 31, 2022 As at March 31, 2021
Present value of defned beneft obligation Fair value of plan assets		5.33 4.14 - -
Net asset/ (liability)		(5.33) (4.14)

(vi) Movements in the present value of defined benefit obligation are as follows:

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----- Start of picture text -----

Indian entities As at March 31, 2022 As at March 31, 2021
Gratuity Provident Fund Gratuity Provident Fund
Opening defined 98.72 158.91 85.78 137.01
benefit obligation
----- End of picture text -----

Opening defned beneft obligation	98.72	158.91	85.78	137.01
Current Service Cost	9.09	7.73	8.03	6.75
Interest Cost	6.60	12.42	5.81	11.92
Actuarial (gain)/losses arising from changes in fnancial assumptions Actuarial (gain)/losses	3.71 3.90	- -	0.49 2.94	- -
arising from changes in
experience adjustments
Benefts paid	(14.57)	(39.82)	(4.33)	(8.73)
Contribution by plan	-	12.72	-	10.83
participants / employees
Settlement/transfer in	-	3.54	-	1.13
Closing defned beneft obligation	107.45	155.50	98.72	158.91

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Foreign subsidiaries Legal Severance Pay (unfunded)
As at As at
March 31, 2022 March 31, 2021
Opening defined benefit obligation 4.14 3.99
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Opening defned beneft obligation	4.14	3.99
Current Service Cost	1.10	0.93
Interest Cost	0.12	0.06
Actuarial (gain)/losses arising from changes in	(0.23)	(0.37)
fnancial assumptions Actuarial (gain)/losses arising from changes in experience	0.40	0.10
adjustments and demographic assumption
Exchange diference on foreign plans	(0.10)	0.07
Beneftspaid/Settled Closing defned beneft obligation	(0.10) 5.33	(0.64) 4.14

(vii) Movements in the fair value of plan assets are as follows:

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Indian entities As at As at
March 31, 2022 March 31, 2021
Gratuity Provident Fund Gratuity Provident Fund
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Opening fair	94.20	157.71	69.96	136.55
value of plan assets
Return on plan assets	6.62	15.76	10.58	11.18
(excluding amounts included in
net interest expenses)
Contributions from employer	9.63	7.73	17.99	6.75
Contributions from	-	12.72	-	10.83
plan participants
Benefts paid	(14.57)	(39.82)	(4.33)	(8.73)
Settlement/transfer in	-	3.54	-	1.13
Closing fair	95.88	157.64	94.20	157.71
value ofplan assets

Gratuity :

Plan assets comprises primarily of investment in HDFC Group Unit Linked Plan fund. The average duration of the defined benefit obligation is 9.12 years (Previous year: 9.14 years). The Company expects to make a contribution of 10.58 Crores (Previous year: 8.76 Crores) to the defined benefit plans during the next financial year.

Provident fund:

The plan assets have been primarily invested in government securities and corporate bonds.

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

(viii) Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined obligation are discount rate and expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of reporting period, while holding all other assumptions constant.

Indian entities Sensitivity analysis of gratuity Discount rate Expected salary growth Sensitivity analysis of Provident Fund Foreign subsidiaries Sensitivity analysis of Legal Severance Pay Discount rate Expected salary growth	Year ended March 31, 2022 Year ended March 31, 2021
	0.50% increase 0.50% decrease 0.50% increase 0.50% decrease
	(3.54) 3.77 (3.00) 3.20 3.72 (3.53) 3.17 (3.01) (0.01) 0.01 (0.01) 0.01

	Year ended March 31, 2022 Year ended March 31, 2021
	1% increase 1% decrease 1% increase 1% decrease
	(0.54) 0.63 (0.44) 0.52 0.59 (0.51) 0.48 (0.42)

Sensitivity due to mortality and withdrawals are insignificant and hence ignored

36.3 Other long-term employee benefit

Amounts recognised in the statement of profit and loss in note 27 “Employee benefits expenses” under the head “Salaries and wages, including bonus”

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

37 EMPLOYEE SHARE BASED PAYMENTS

The Company has an Employee Share Purchase Scheme (SRF Long Term Share Based Incentive Plan) to provide equity settled share based payments to eligible employees. The expenses related to the grant of shares under the Scheme are accounted for on the basis of fair value of the share on the grant date (which is the market price of the Company’s share on the date of grant less exercise price). The fair value so determined is expensed on a straight line basis over the remaining tenure over which the employees renders their services.

The movement of number of equity shares granted, their fair value and the share based payment expense recognised during the year are as under:

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Year ended Year ended
March 31, 2022 March 31, 2021
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Number of equity shares:
(i) At the beginning of the year	60,000	60,000
(ii) Impact of bonus issue of shares (Refer to note 16.1)	2,40,000	-
(iii) Granted during the year *	1,95,000	-
(iv) Released during the year ^	(3,00,000)	-
(v) At the end of the year	1,95,000	60,000
Market price on the grant date (`per equity share)	2,126.05	-
Exercise price (`per equity share)	10.00	-
Fair value of share based payment (`per equity share)	2,116.05	-
Share basedpayment expense recognised duringtheyear ^ **	28.61	0.96

These shares have a lock in period up to November 30, 2022 and are pledged for a period up to October 31, 2026.
^ During the current year, the Nomination and Remuneration Committee based upon the recommendations of the management, released 300,000 equity shares from pledge, resulting into immediate vesting of these shares. As a result, an additional amount of ` 6.72 crores has been recognised in consolidated statement of profit and loss.
** Includes amount of ` 17.50 Crores (previous year -Nil) towards withholding tax on equity shares granted under the above scheme.

	Year ended March 31, 2022	Year ended March 31, 2021
Long term retention pay (refer to note (i) below)	-	-
Compensated absences	12.26	11.57
	12.26	11.57

(i) Long Term Retention Pay

The group has a Long Term Retention Pay Plan which covers employees selected on the basis of their current band and their long term value to the Company. The incentive is payable in three year blocks subject to achievement of certain performance ratings. The Company also has a scheme for talent retention of certain identified employees under which an incentive is payable over a period of three years.

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

38 SEGMENT REPORTING

Based on the guiding principles laid down in Indian Accounting Standard (Ind AS) - 108 “Segment Reporting”, the Chairman and Managing Director of the Company is the Chief Operating Decision Maker (CODM) and for the purposes of resource allocation and assessment of segment performance, the business of the Group is segregated in the segments below:
Technical Textiles business: includes nylon tyre cord fabric, belting fabric, polyester tyre cord fabric and industrial yarns and its research and development
Chemicals business: includes refrigerant gases, industrial chemicals, speciality chemicals, fluorochemicals & allied products and its research and development.
Packaging Film business: includes polyester films and polypropylene films.
Others: include coated fabric, laminated fabric and other ancillary activities

In addition to the significant accounting policies applicable to the business segments as set out in note 1 above, the accounting policies in relation to segment accounting are as under:

a) Segment revenue and expenses

Joint revenue and expenses of segments are allocated amongst them on a reasonable basis. All other segment revenue and expenses are directly attributable to the segments. These amounts relate to continuing operations, unless otherwise stated. (Refer to note 42 with regard to information in relation to discontinued operations).

b) Segment assets and liabilities

Segment assets include all operating assets used by a segment and consist principally of operating cash, trade receivables, inventories and property plant and equipment and intangible assets, net of allowances and provisions, which are reported as direct offsets in the consolidated balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities and do not include deferred income taxes. While most of the assets / liabilities can be directly attributed to individual segments, the carrying amount of certain assets / liabilities pertaining to two or more segments are allocated to the segments on a reasonable basis.

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

A. Information about operating business segments

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Year ended Year ended
March 31, 2022 March 31, 2021
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Segment revenue
a) Technical textiles business (TTB)
- External sales	2,073.33	1,231.41
- Inter-segment sales	11.91	8.70
Total	2,085.24	1,240.11
b) Chemicals business (CB)
- External sales	5,240.78	3,644.89
- Inter-segment sales	-	-
Total	5,240.78	3,644.89
c) Packaging flms business (PFB) - External sales	4,779.21	3,291.72
- Inter-segment sales	-	-
Total d) Others	4,779.21	3,291.72
- External sales	340.34	232.02
- Inter-segment sales	-	-
Total	340.34	232.02
Total segment revenue	12,445.57	8,408.74
Less: Inter segment revenue	11.91	8.70
Revenue from operations	12,433.66	8,400.04
Add: Unallocable income	115.51	66.35
Total revenue	12,549.17	8,466.39
Segment profts Proft before interest and tax from each segment
a) Technical textiles business (TTB)	471.43	176.90
b) Chemicals business (CB)	1,396.91	728.14
c) Packaging flms business (PFB)	946.33	897.87
d) Others	20.35	25.59
Total segment results	2,835.02	1,828.50
Less: i) Interest and fnance Charges	115.93	133.95
Less: ii)Other unallocable expenses net of income	133.54	81.90
Proft before tax from continuing operations	2,585.55	1,612.65
(Loss) / Proft before tax from discontinuing operations	-	(2.73)
(Refer note 42)
Total Proft before tax	2,585.55	1,609.92

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Year ended Year ended
March 31, 2022 March 31, 2021
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Ca	pital expenditure
a)	Technical textiles business (TTB)	63.43	77.90
b)	Chemicals business (CB)	1,296.56	618.66
c)	Packaging flms business (PFB)	637.06	553.34
d)	Others	1.66	1.92
e)	Unallocated	8.38	3.13
Total		2,007.09	1,254.95
Depreciation and amortisation
a)	Technical textiles business (TTB)	39.97	35.41
b)	Chemicals business (CB)	303.59	273.09
c)	Packaging flms business (PFB)	153.31	123.61
d)	Others	7.53	8.06
e)	Unallocated	12.83	12.91
Total		517.23	453.08

Segment assets and liabilities

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As at As at
March 31, 2022 March 31, 2021
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Segment assets
a) Technical textiles business (TTB) b) Chemicals business (CB)	1,818.01 7,193.65	1,582.16 5,741.97
c) Packaging flms business (PFB)	5,633.10	4,543.33
d) Others	174.94	171.97
Total	14,819.70	12,039.43
Unallocable assets	953.91	889.98
Assets classifed as held for sale	3.00	-
Total assets	15,776.61	12,929.41
Segment Liabilities
a) Technical textiles business (TTB)	416.95	337.14
b) Chemicals business (CB)	950.33	710.22
c) Packaging flms business (PFB)	1,449.62	1,117.90
d)Others	37.02	32.85
Total	2,853.92	2,198.11
Unallocable Liabilities	4,357.33	3,874.88
Total Liabilities	7,211.25	6,072.99

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

B. Information about geographical business segments

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Year ended Year ended
March 31, 2022 March 31, 2021
Revenue from operations
- India 5,259.57 3,640.40
- South Africa 603.51 475.37
- Singapore 43.14 5.47
- Germany 462.74 476.58
- USA 1,440.87 576.20
- Thailand 353.74 188.89
- Hungary 27.66 13.61
- Switzerland 827.37 687.75
- Belgium 528.32 635.51
- Others 2,886.74 1,700.26
12,433.66 8,400.04
Year ended Year ended
March 31, 2022 March 31, 2021
Non current segment assets
- Within India 7,938.51 6,505.08
- Outside India 2,391.47 2,338.23
10,329.98 8,843.31
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Non current segment assets includes property, plant and equipment, right of use assets, capital work in progress, intangible assets, Goodwill and other non current assets.

No single customer contributed 10% or more to the Group’s revenue for both financial years 2021-22 and 2020-21.

Revenue from major products	Revenue from major products	Year ended March 31, 2022	Year ended March 31, 2021
a)	Technical textiles business (TTB)
	Nylon tyre cord fabric/ Polyester tyre cord fabric / Belting fabric	1,880.90	1,122.94
	Synthetic flament yarn including Industrial yarn /Twine	165.78	97.21
	Waste/others	5.16	0.62
b)	Chemicals business (CB)
	Speciality chemicals	3,100.32	2,389.39
	Fluorochemicals, Refrigerant Gases and allied products	1,724.06	893.98
	Industrial chemicals	350.65	311.00
	Waste/others	0.01	0.74
c)	Packaging flms business (PFB) Packaging flms	4,749.26	3,253.26
d)	Others
	Coated fabric,laminated fabric and other ancillaryactivities	336.61	226.26
		12,312.75	8,295.40

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

39 EARNINGS PER SHARE (EPS)

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Year ended Year ended
March 31, 2022 March 31, 2021
Profit attributable to equity holders of the group used
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Proft attributable to equity holders of the group used
in calculating basic earning per share and diluted
earning per share:
- From continuing operations	1,888.92	1,198.25
- From discontinued operations	-	(0.31)
- From continuing and discontinued operations	1,888.92	1,197.94
Weighted average number of equity shares of the	29,63,06,696	29,52,63,898
company used in calculating basic earning per share and
diluted earning per share (nos.)
Basic and diluted earnings per share of face value
`10 each *
- From continuing operations (`)	63.75	40.58
- From discontinued operations (`)	-	(0.01)
- From continuingand discontinued operations(`)	63.75	40.57

Note:

During the current year, Company has issued and allotted 236,980,820 fully paid up Bonus Equity shares of ` 10 each in the ratio of 4:1 (i.e. 4 Bonus Equity shares for every 1 existing equity share of the Company) to the shareholders who held shares on October 14, 2021 (Record date). Accordingly, basic and diluted earnings per share has been calculated based on the weighted average number of shares outstanding in the current and previous year, as adjusted by issuance of bonus shares.

40 FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

40.1 Capital Management

The group manages its capital to ensure that it will be able to continue as a going concern and provide reasonable return to the shareholders by maintaining a reasonable balance between debt and equity. The capital structure of the group consists of net debt (borrowings net of cash and cash equivalents, deposits accounts with maturity beyond three months upto twelve months and current investments) and total equity of the group. The group is not subject to any externally imposed capital requirements. The group’s management reviews the capital structure of the group on periodic basis. As part of its review, the management considers the cost of capital and risk associated with each class of capital. The group also evaluates its gearing measures using Net Debt Equity Ratio to arrive at an appropriate level of debt and accordingly evolves its capital structure.

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

The following table provides the details of the debt and equity at the end of the reporting periods :

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As at As at
March 31, 2022 March 31, 2021
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Debt and lease liabilities	3,655.19	3,468.58
Less:
Cash and cash equivalents	450.48	138.29
Deposits accounts with maturity beyond three months	0.20	135.19
upto twelve months
Current investments	316.74	412.52
Net debt	2,887.77	2,782.58
Total equity	8,565.36	6,856.42
Net debt to equity ratio	0.34	0.41

40.2 Financial instruments by category

Financial assets Level of hierarchy Notes	Carrying value Fair value
	As at March 31, 2022 As at March 31, 2021 As at March 31, 2022 As at March 31, 2021
Measured at amortised cost Trade Receivables a Cash and cash equivalents a Bank balances other than above a Loans a,b Other fnancial assets a,b	1,792.45 1,274.56 1,792.45 1,274.56 450.48 138.29 450.48 138.29 8.87 143.71 8.87 143.71 23.52 21.76 23.52 21.76 238.02 215.49 238.02 215.49
	2,513.34 1,793.81 2,513.34 1,793.81
Measured at Fair value through proft and loss Investments in mutual funds and bonds/debentures 2 d Derivative instruments 2 d	316.74 412.52 316.74 412.52 3.64 4.39 3.64 4.39
	320.38 416.91 320.38 416.91
Measured at Fair value through Other comprehensive income Investments in unquoted equity instruments 3 d Derivative instruments 2 d	4.16 4.16 4.16 4.16 124.69 86.55 124.69 86.55
	128.85 90.71 128.85 90.71

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Measured at amortised cost
Borrowings		a,c	3,539.35	3,390.96	3,539.35	3,390.96
Trade payables		a	2,096.35	1,585.19	2,096.35	1,585.19
Other fnancial liabilities		a	520.20	432.29	520.20	432.29
			6,155.90	5,408.44	6,155.90	5,408.44
Measured at Fair value through
other comprehensive income Derivative instruments	2	d	5.36 5.36	0.54 0.54	5.36 5.36	0.54 0.54

The following methods / assumptions were used to estimate the fair values:

(a) Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying amount due to the short term maturities of these instruments.
(b) Fair valuation of non-current financial assets has been disclosed to be same as carrying value as there
is no significant difference between carrying value and fair value.
(c) Fair value of other long-term borrowings is estimated by discounting future cash flows using current rates (applicable to instruments with similar terms, currency, credit risk and remaining maturities) to discount the future payouts.
(d) The fair value is determined by using the valuation model/technique with observable/non-observable
inputs and assumptions.

There are no transfers between Level 1, Level 2 and Level 3 during the Year ended March 31, 2022 and March 31, 2021.

Level 1:

Quoted prices in the active market: This level of hierarchy includes financial assets that are measured by reference to quoted prices in the active market.

Level 2:

Level 3:

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based on available market data. The main item in this category are unquoted equity instruments.

(i) Investments in mutual funds and bonds/debentures: Fair value is determined by reference to quotes from the financial institutions.
(ii) Derivative contracts: The group has entered into various foreign currency contracts and interest rate swaps contracts to manage its exposure to fluctuations in foreign exchange rates and interest rate respectively. These financial exposures are managed in accordance with the group’s risk management policies and procedures. Fair value of derivative financial instruments are determined using valuation techniques based on information derived from observable market data, i.e., mark to market values determined by the authorized dealers banks and forward exchange rates at the balance sheet date.
(iii) Unquoted equity investments: Fair value is determined based of the recoverable value as per agreement with the investee.

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Reconciliation of Level 3 fair value Unlisted equity
measurements instruments
----- End of picture text -----

	As at March 31, 2020	4.16
	Purchase of investment	-
	As at March 31, 2021	4.16
	Purchase of investment	-
	As at March 31, 2022	4.16

Sensitivity of the fair value measurement to changes in unobservable inputs for financial instruments in Level 3 level of hierarchy is insignificant.

40.3 Financial Risk Management

The group is exposed to various financial risks arising from its underlying operations and finance activities. The group is primarily exposed to market risk (i.e. interest rate and foreign currency risk) and to credit risk and liquidity risk. The Group’s Corporate Treasury function plays the role of monitoring financial risk arising from business operations and financing activities.

Financial risk management within the group is governed by policies and guidelines approved by the senior management and the Board of Directors. These policies and guidelines cover interest rate risk, foreign currency risk, credit risk and liquidity risk. Group policies and guidelines also cover areas such as cash management, investment of excess funds and the raising of short and long-term debt. Compliance with the policies and guidelines is managed by the Corporate Treasury function within the group. Review of the financial risk is done on a monthly basis by the Managing Director and on a quarterly basis by the Board of Directors. The objective of financial risk management is to contain, where deemed appropriate, exposures

352

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Annual Report 2021-22

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

on net basis to the various types of financial risks mentioned above in order to limit any negative impact on the group’s results and financial position.

In accordance with its financial risk management policies, the group manages its market risk exposures by using specific type of financial instruments duly approved by the Board of Directors as and when deemed appropriate. It is the group’s policy and practice neither to enter into derivative transactions for speculative purpose, nor for any purpose unrelated to the underlying business. The Board of Directors / Managing Director reviews and approves policies for managing each of the above risks.

40.3.1 Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of interest rate risk and foreign currency risk. Financial instruments affected by market risk includes loans and borrowings, deposits, investments and derivative financial instruments. The group enters into derivative contracts as approved by the Board to manage its exposure to interest rate risk and foreign currency risk.

A. Foreign Currency Risk Management

Foreign currency risk also known as Exchange Currency Risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. Foreign currency risk in the group is attributable to group’s operating activities, investing activities and financing activities.

In the operating activities, the group’s exchange rate risk primarily arises when revenue / costs are generated in a currency that is different from the reporting currency (transaction risk). In compliance with the Board approved policy, the Group manages the net exposure on a rolling 12 month basis and for exposures between 12 to 36 months, hedging is done based on specific exposure. The information is monitored by the Audit committee and the Board of Directors on a quarterly basis. This foreign currency risk exposure of the group are mainly in U.S. Dollar (USD), Euro (EUR), Japanese Yen (JPY) and British pound sterling (GBP). The group’s exposure to foreign currency changes for all other currencies is not material.

The carrying amounts of the group’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting periods expressed in ` are as follows:

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

monetary items as tabulated above and adjusts their translation at the period end for 1% change in foreign currency rates. A positive number below indicates an increase in profit before tax or vice-versa.

	Year ended March 31, 2022 Year ended March 31, 2021
	`strengthens<br>by 1%<br>`weakens by 1% `strengthens<br>by 1%<br>`weakens by 1%
Impact on proft / (loss) * USD EUR JPY GBP	5.02 (5.02) 5.73 (5.73) 1.87 (1.87) 3.60 (3.60) 0.06 (0.06) 0.11 (0.11) (0.22) 0.22 0.02 (0.02)

Includes sensitivity on long-term foreign currency monetary items on which Para D13 AA of Ind AS 101 has been applied. Accordingly, the exchange loss/ (gain) arising on long term foreign currency monetary items relating to acquisition of depreciable assets will be added to/deducted from the cost of such assets/capital work-in-progress and will be depreciated over the balance useful life of assets.

	Year ended March 31, 2022 Year ended March 31, 2021
	`strengthens<br>by 1%<br>`weakens by 1% `strengthens<br>by 1%<br>`weakens by 1%
Impact on equity (Other Comprehensive Income) USD 8.62 (8.62) 5.49 (5.49) EUR 3.75 (3.75) 5.08 (5.08)

Foreign exchange derivative and non-derivative financial instruments

The group uses derivative as well as non derivative financial instruments for hedging financial risks that arise from its commercial business or financing activities. The group’s Corporate Treasury team manages its foreign currency risk by hedging transactions that are expected to occur within 1 to 36 months for hedges of forecasted sales, purchases, loans and liabilities and capital expenditures. When a derivative is entered into for the purpose of being a hedge, the group negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable or payable that is denominated in the foreign currency. All identified exposures are managed as per the policy duly approved by the Board of Directors.

	Assets Liabilities
	As at March 31, 2022 As at March 31, 2021 As at March 31, 2022 As at March 31, 2021
USD EUR JPY GBP	983.61 824.27 2,346.96 1,946.21 283.94 257.67 846.24 1,124.86 - - 6.33 11.28 21.56 10.96 0.01 13.12

Foreign currency sensitivity analysis

The group is mainly exposed to changes in USD, EURO, JPY and GBP exchange rates.

354 Annual Report 2021-22

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

The following table details the foreign currency derivative contracts outstanding at the end of the reporting period:

		Maturity
Outstanding Contracts*	No of Deals Contract Value of Foreign Currency (In Millions)	Up to 12 months Nominal Amount (`Crores)<br>More than 12<br>months Nominal<br>Amount<br>(`Crores)
	As at March 31, 2022 As at March 31, 2021 As at March 31, 2022 As at March 31, 2021 As at March 31, 2022 As at March 31, 2021 As at March 31, 2022 As at March 31, 2021
USD/INR Sell forward EUR/INR sell forward USD/THB Buy forward EUR/USD Buy forward EUR/THB Buy forward	362 264 735.50 513.25 2,821.04 2,029.40 3,095.66 1,998.63 1 17 20.00 40.50 - 181.53 202.77 202.77 - 20 - 18.48 - 129.98 - - - 20 - 15.67 - 135.55 - - 6 - 18.00 - 149.41 - 9.26 -

Computed using average forward contract rates

The following table details the group’s sensitivity to a 1% increase and decrease in the ` against the relevant foreign currency. The sensitivity analysis includes only outstanding forward exchange contracts as tabulated above and adjusts their translation at the period end for 1% change in forward rates. A positive number below indicates an increase in profit before tax or vice-versa.

	Year ended March 31, 2022 Year ended March 31, 2021
	Functional currency strengthens by 1% Functional currency weakens by 1% Functional currency strengthens by 1% Functional currency weakens by 1%
Impact on proft / (loss) for the year USD EUR Impact on equity (Other Comprehensive Income) USD EUR	1.83 (1.83) 1.76 (1.76) - - 0.34 (0.34) 56.31 (56.31) 36.47 (36.47) 3.34 (3.34) 2.05 (2.05)

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

B. Interest Rate Risk Management

Interest rate risk arises from movements in interest rates which could have effects on the group’s net income or financial position. Changes in interest rates may cause variations in interest income and expenses resulting from interest-bearing assets and liabilities. The group’s exposure to the risk of changes in market interest rates relates primarily to the group’s long-term debt obligations with floating interest rates.

The group manages its interest rate risk by having a portfolio of fixed and variable rate loans and borrowings. The group enters into interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed principal amount outstanding at the time of inception of the swap. Out of the total long term borrowings, the amount of fixed interest loan is 938.35 Crores and floating interest loan is 1,562.94 Crores (Previous year : Fixed interest loan 898.62 Crores and Floating interest loan 1,531.65 Crores).

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the group’s profit before tax is affected through the impact on floating rate long term borrowings, as follows:

	Year ended March 31, 2022 Year ended March 31, 2021
	`loans interest<br>rate decreases<br>by 0.50 %<br>Foreign<br>currency loans<br>interest rate<br>decreases by<br>0.15 %<br>`loans interest rate decreases by 0.50 % Foreign currency loans interest rate decreases by 0.15 %
Increase in proft before tax by	1.29 1.96 2.85 1.44

In case of increase in interest rate by above mentioned percentage, there would be a comparable negative impact on the profit before tax as mentioned above.

Managing interest rate benchmark reform and associated risks

A fundamental reform of major interest rate benchmarks is being undertaken globally, including the replacement of some interbank offered rates (IBORs) with alternative nearly risk-free rates (referred to as ‘IBOR reform’). The group has exposures to USD-LIBOR and EUR-IBOR on its financial instruments. The group has renegotiated all working capital facilities agreements and have moved to new benchmarks, wherever IBOR reforms had mandated.

As per the IBOR reform regulations, USD LIBOR based contracts entered into on or before December 31, 2021 are allowed to continue utilising the facility until the maturity date, provided such date is before June 30, 2023, the group has certain loans which falls under this category and accordingly, the management has taken a decision to continue on 1 Month / 3 Months / 6 Months LIBOR. All the EUR denominated long term loans of the Group are linked to EURIBOR and thus not impacted by IBOR reforms.

356 Annual Report 2021-22

Annual Report 2021-22 357

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

The group have two loans (USD LIBOR benchmark linked) which are maturing after June 2023 and the management has planned to migrate these loans to Secured Overnight Financing Rate (SOFR) benchmark prior to June 2023, along with IRS contract, if any. The management does not envisage any significant impact on the consolidated financial statements due to the migration.

Interest Rate Swap Contracts

Under interest rate swap (IRS) contracts, the group agrees to exchange the difference between fixed and floating rate interest amounts calculated on the agreed notional principal amounts. Such contracts enables the group to mitigate the risk of changing interest rates.

The following table details the IRS contracts outstanding at the end of the reporting period:

==> picture [424 x 88] intentionally omitted <==

----- Start of picture text -----

Maturity
Outstanding No of Deals Contract Value of Up to 12 months More than 12 months
Contracts Foreign Currency Nominal Amount Nominal Amount
(In Millions) ( Crores) ( Crores)
As at As at As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2022 2021 2022 2021 2022 2021 2022 2021
IRS Contracts 4 4 20.28 31.05 90.76 85.49 62.79 141.68
----- End of picture text -----*

Sensitivity on the above IRS contracts in respect of interest rate exposure is insignificant

C. Hedge accounting

Cash flow hedges

The amounts at the reporting date relating to the item designed as hedge items are as follows:

Hedging
instruments
As at March 31, 2022
Year ended
March 31,
2022
As at March 31, 2021
Year ended
March 31,
2021
Nominal
amount
( **Crores)** **Carrying** **amount** **Assets /** **(liabilities)** **(**Crores)
Line item
where the
hedging
instrument is
included
Change in
the value of
the hedging
instrument
recognised
in OCI
(**Crores)** **Nominal** **amount** **(**
Crores)
Carrying
amount
Assets /
(liabilities)
(**Crores)** **Line item** **where the** **hedging** **instrument is** **included** **Change in** **the value of** **the hedging** **instrument** **recognised** **in OCI** **(**Crores) Hedging
instruments
As at March 31, 2022
Year ended
March 31,
2022
As at March 31, 2021
Year ended
March 31,
2021
Nominal
amount
( **Crores)** **Carrying** **amount** **Assets /** **(liabilities)** **(**Crores)
Line item
where the
hedging
instrument is
included
Change in
the value of
the hedging
instrument
recognised
in OCI
(**Crores)** **Nominal** **amount** **(**
Crores)
Carrying
amount
Assets /
(liabilities)
(**Crores)** **Line item** **where the** **hedging** **instrument is** **included** **Change in** **the value of** **the hedging** **instrument** **recognised** **in OCI** **(**Crores)

Nominal
amount
( **Crores)** **Carrying** **amount** **Assets /** **(liabilities)** **(**Crores)
Line item
where the
hedging
instrument is
included
Change in
the value of
the hedging
instrument
recognised
in OCI
(**Crores)** **Nominal** **amount** **(**
Crores)
Carrying
amount
Assets /
(liabilities)
(**Crores)** **Line item** **where the** **hedging** **instrument is** **included** **Change in** **the value of** **the hedging** **instrument** **recognised** **in OCI** **(**Crores)

Foreign
exchange
contracts 6,091.63
121.17 Other fnancial
assets (current
and non -
current)
35.63
4,462.65
85.54 Other fnancial
assets (current
and non -
current)
151.16
(5.36) Other fnancial
liabilities
(current and
non - current)
(5.36)
- Other fnancial
liabilities (current
and non -
current)
-

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Hedging
instruments
As at March 31, 2022
Year ended
March 31,
2022
As at March 31, 2021
Year ended
March 31,
2021
Nominal
amount
( **Crores)** **Carrying** **amount** **Assets /** **(liabilities)** **(**Crores)
Line item
where the
hedging
instrument is
included
Change in
the value of
the hedging
instrument
recognised
in OCI
(**Crores)** **Nominal** **amount** **(**
Crores)
Carrying
amount
Assets /
(liabilities)
(**Crores)** **Line item** **where the** **hedging** **instrument is** **included** **Change in** **the value of** **the hedging** **instrument** **recognised** **in OCI** **(**Crores) Hedging
instruments
As at March 31, 2022
Year ended
March 31,
2022
As at March 31, 2021
Year ended
March 31,
2021
Nominal
amount
( **Crores)** **Carrying** **amount** **Assets /** **(liabilities)** **(**Crores)
Line item
where the
hedging
instrument is
included
Change in
the value of
the hedging
instrument
recognised
in OCI
(**Crores)** **Nominal** **amount** **(**
Crores)
Carrying
amount
Assets /
(liabilities)
(**Crores)** **Line item** **where the** **hedging** **instrument is** **included** **Change in** **the value of** **the hedging** **instrument** **recognised** **in OCI** **(**Crores)

Foreign
currency
denominated
loans
Interest
rate swap
contacts 1,236.86 (1,236.86) Non-current/
current
borrowings
8.201,055.91
(1,055.91) Non-current
borrowing
(1.27)
153.55
3.52 Other fnancial
assets (current
and non -
current)
2.51
227.17
1.01 Other fnancial
assets (current
and non -
current)
1.01
- Other fnancial
liabilities
(current and
non - current)
0.54
(0.54) Other fnancial
liabilities (current
and non -
current)
1.88

Fair Value hedges

The amounts at the reporting date relating to the item designed as hedge items are as follows:

|Hedging
instruments
As at March 31, 2022
Year ended
March 31,
2022
As at March 31, 2021
Year ended
March 31,
2021
Nominal
amount
( **Crores)** **Carrying** **amount** **Assets /** **(liabilities)** **(**Crores)
Line item
where the
hedging
instrument
is included
Change in
the value of
the hedging
instrument
recognised in
consolidated
statement of
Proft
and loss
Nominal
amount
( **Crores)** **Carrying** **amount** **Assets /** **(liabilities)** **(**Crores)
Line item
where the
hedging
instrument is
included
Change in
the value of
the hedging
instrument
recognised
in
consolidated
statement
of Proft and
loss
(**Crores)**|**Hedging** **instruments** **As at March 31, 2022** **Year ended** **March 31,** **2022** **As at March 31, 2021** **Year ended** **March 31,** **2021** **Nominal** **amount** **(**
Crores)
Carrying
amount
Assets /
(liabilities)
(**Crores)** **Line item** **where the** **hedging** **instrument** **is included** **Change in** **the value of** **the hedging** **instrument** **recognised in** **consolidated** **statement of** **Proft** **and loss** **Nominal** **amount** **(**
Crores)
Carrying
amount
Assets /
(liabilities)
(**Crores)** **Line item** **where the** **hedging** **instrument is** **included** **Change in** **the value of** **the hedging** **instrument** **recognised** **in** **consolidated** **statement** **of Proft and** **loss** **(**Crores)|
|---|---|
||Nominal
amount
( **Crores)** **Carrying** **amount** **Assets /** **(liabilities)** **(**Crores)
Line item
where the
hedging
instrument
is included
Change in
the value of
the hedging
instrument
recognised in
consolidated
statement of
Proft
and loss
Nominal
amount
( **Crores)** **Carrying** **amount** **Assets /** **(liabilities)** **(**Crores)
Line item
where the
hedging
instrument is
included
Change in
the value of
the hedging
instrument
recognised
in
consolidated
statement
of Proft and
loss
(`Crores)|
|Foreign
exchange
contracts|186.51
3.64
Other
fnancial
assets /
liabilities
(current
and non -
current)
(0.75)
215.21
4.39
Other fnancial
assets / liabilities
(Current and Non
- current)
6.89|

358 Annual Report 2021-22

Annual Report 2021-22 359

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

: Movement of cash flow hedging reserve and cost of hedging reserve

==> picture [423 x 62] intentionally omitted <==

Opening Balance	7.53	(78.56)	3.13	-
Changes in the spot element of the forward	(3.12)	8.59	-	-
contracts which is designated as hedging
instruments for time period related hedge
Changes in the forward element of the forward	-	-	19.31	7.74
contracts where changes in spot element of
forward contract is designated as hedging
instruments for time period related hedges
Changes in fair value of forward contracts	28.77	130.71	-	-
designated as hedging instruments
Changes in fair value of interest rate swaps	3.05	2.89	-	-
Amount reclassifed to Proft or Loss (Foreign	16.54	3.12	(21.48)	(4.28)
exchange (gain) / loss) Amount arising from remeasurement of fnancial liability	(5.25)	(12.98)	-	-
Taxes related to above	(13.03)	(46.24)	(0.45)	(0.33)
Closing Balance	34.49	7.53	0.51	3.13

40.3.2 Credit Risk Management

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The group is exposed to credit risk from its operating activities (primarily trade receivables, loans and other financial assets) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Credit risk from balances with banks and financial institutions is managed by the group’s treasury department in accordance with the group’s policy. Investments of surplus funds are made only with counterparties who meet the parameters specified in Investment Policy of the groups . The investment policy is reviewed by the group’s Board of Directors on an annual basis and if required, the same may be updated during the year. The investment policy specifies the limits of investment in various categories of products so as the minimize the concentration of risks and therefore mitigate financial loss due to counterparty’s potential failure.

Expected credit loss on financial assets:

To manage credit risk for trade receivables, the group establishes credit approvals and credit limits, periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends, analysis of historical bad debts and aging of such receivables.

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Loss allowance for the following financial assets have been recognised by the Group:

	Note No.	As at March 31, 2022	As at March 31, 2021
Loans - current	8	2.74	2.74
Trade receivables	13	3.45	5.03
		6.19	7.77
Movement of loss allowance:
	Loans (current and non current) Trade receivables
As at March 31, 2020		2.74	3.61
Provided during the year		0.24	11.70
Reversed / utilised during the year		(0.24)	(10.28)
As at March 31, 2021		2.74	5.03
Provided during the year		0.17	0.78
Reversed / utilised during the year		(0.17)	(2.35)
As at March 31, 2022		2.74	3.45

Other than financial assets mentioned above, none of the group’s financial assets are impaired, as there are no indications that defaults in payments obligation would occur.

40.3.3 Liquidity Risk Management

Liquidity risk is the risk of non-availability of financial facilities available to the group to meet its financial obligations. The group’s objective is to maintain a balance between continuity of funding and flexibility through the use of money market instruments, bank overdrafts, bank loans, debentures and other types of facilities. The liquidity management is governed by the Board approved liquidity management policy. Any deviation from the policy has to be approved by the Treasury Management comprising of Managing Director, Chief Financial Officer and Treasury Head. The group assesses the concentration of risk with respect to refinancing its debt, guarantee given and funding of its capital expenditure according to needs of the future. The group manages its liquidity by holding appropriate volumes of liquid assets which are available for its disposal on T +1 basis and by maintaining open credit lines with banks / financial institutions.

The table below analyse the group’s financial liabilities into relevant maturity profiles based on their contractual maturities:

==> picture [423 x 27] intentionally omitted <==

----- Start of picture text -----

Less than More than 1 year More than Total
1 year and upto 5 years 5 years
----- End of picture text -----

	As at March 31, 2022 Borrowings*	1,819.30	1,783.41	-	3,602.71
	Lease Liabilities** Trade payables Other fnancial liabilities	28.63 2,096.35 371.70 4,315.98	84.50 - 153.86 2,021.77	59.52 - - 59.52	172.65 2,096.35 525.56 6,397.27

360 Annual Report 2021-22

Annual Report 2021-22 361

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

==> picture [424 x 27] intentionally omitted <==

----- Start of picture text -----

Less than More than 1 year More than Total
1 year and upto 5 years 5 years
----- End of picture text -----

As at March 31, 2021
Borrowings*	1,477.41	1,806.11	214.67	3,498.19
Lease Liabilities**	19.30	53.85	53.68	126.83
Trade payables	1,585.19	-	-	1,585.19
Other fnancial liabilities	432.29	0.54	-	432.83
	3,514.19	1,860.50	268.35	5,643.04

including future cash outflow towards estimated interest on non -current borrowings.

** including future cash outflow towards estimated interest on lease liabilities.

41 Contract balances

The following table provides information about contract liabilities from contracts with customers

==> picture [424 x 29] intentionally omitted <==

----- Start of picture text -----

Contract liability Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

Opening balance	18.40	12.68
Revenue recognised that was included in the contract liability	(18.40)	(12.68)
balance at the beginning of the period
Increase due to cash received, excluding the amount recognised as revenue duringtheperiod	28.32 28.32	18.40 18.40

42 Non - current assets held for sale and Discontinued operation

A Technical Textiles Business of SRF Industries(Thailand) Limited

(a) Description

SRF Industries(Thailand) Limited closed its Technical Textiles Business operations located at Rayong, Thailand w.e.f. October 21, 2019. The business was reported as part of Technical Textiles Business as per requirements of Ind AS 108 – “Operating Segments” in the consolidated financial statements. The financial information of the said business have been classified as Discontinued Operations as per requirements of INDAS 105 - “Non -current assets held for sale and discontinued operations”. The particulars of said discontinued operations are as under:

(b) Financial performance and cash flow information

==> picture [423 x 29] intentionally omitted <==

----- Start of picture text -----

S.no. Particulars Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

(a)	Sale of Products	-	-
(b)	Other operatingRevenues	-	2.26
(c)	Total revenue from operations{I(a)+I(b)}	-	2.26
(d)	Other income	-	6.22
(e)	Total income{I(c)+I(d)}	-	8.48
(f)	Total expenses excluding point no.(g)	-	11.21

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

==> picture [424 x 28] intentionally omitted <==

----- Start of picture text -----

S.no. Particulars Year ended Year ended
March 31, 2022 March 31, 2021
----- End of picture text -----

	(g)	Impact on account of fair value measurement loss /	-	-
		(gain)on assets/liabilities
	(h)	Proft / (loss) before tax from discontinued	-	(2.73)
		operations{I(e)-I(f)-I(g)}
	(i)	Tax expense /(gain)related to discontinued operations		(2.42)
II		Net Proft / (loss) after tax from discontinued	-	(0.31)
		operations{1(h)-I(i)}
III		Net cash generated from operating activities	-	(1.64)
IV		Net cash generated from investing activities	-	17.91
V		Net cash used in fnancingactivities	-	(0.06)

B. Pursuant to requirements of Ind AS 105, the amounts in the consolidated statement of profit and loss (and related notes) for the previous year have been presented for continuing operations, as applicable unless otherwise stated.

C. Assets classified as held for sale

(a) Description:

During the current year, the management has decided to dispose off inoperative assets related to Industrial Yarn Unit. Accordingly, these assets have been classified as assets held for sale in terms of Ind AS 105- “Non-current assets held for sale and discontinued operations” and recognised at their estimated fair value. Till previous year, these assets were reported under “Technical textiles business segment” in accordance with the requirements of Ind AS 108 – “Operating Segments” in the consolidated financial statements.

(b) Assets classified as held for sale:

	Property plant and equipment	As at March 31, 2022 3.00	As at March 31, 2021 -

		Year ended March 31, 2022	Year ended March 31, 2021
(i)	Impairment of goodwill	0.62	-
(ii)	Fair value of assets classifed as held for sale	5.75	-

362

Annual Report 2021-22 363

Annual Report 2021-22

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

43 Leases

The group leases various types of assets including land, buildings and Plant & Machinery. Information about leases for which the group is a lessee is presented below.

==> picture [423 x 29] intentionally omitted <==

----- Start of picture text -----

Right-of-use assets Land * Buildings Plant & Total
equipment
----- End of picture text -----

Cost
Balances at March 31, 2020	148.04	44.98	50.63	243.65
Additions/adjustments	3.25	2.13	1.86	7.24
Disposals	-	(0.86)	(2.60)	(3.46)
Balance at March 31,2021	151.29	46.25	49.89	247.43
Additions/adjustments	4.88	(0.45)	58.59	63.02
Disposals	-	-	(8.20)	(8.20)
Balance at March 31,2022	156.17	45.80	100.28	302.25
Accumulated depreciation
Balances at March 31, 2020	0.87	6.76	8.44	16.07
Depreciation expenses	1.68	7.07	9.31	18.06
Disposals	-	(0.86)	(2.60)	(3.46)
Balances at March 31, 2021	2.55	12.97	15.15	30.67
Depreciation expenses	1.74	6.59	16.10	24.43
Disposals	-	-	(8.20)	(8.20)
Balance at March 31,2022	4.29	19.56	23.05	46.90
Net block
Balances at March 31, 2021	148.74	33.28	34.74	216.76
Balances at March 31, 2022	151.88	26.24	77.23	255.35

The execution of lease deed of land in respect of 1,165,437 square meters of leasehold land already alloted (out of a total of 1,181,776 square meters) to the Company is pending. As a process agreed with Gujarat Industrial Development Corporation (GIDC), the same will be executed once the entire / substantial portion of the above piece of land is allotted / handed over to the Company.

Lease liabilities included in the Balance Sheet	As at March 31, 2022	As at March 31, 2021
Current	20.66	13.80
Non-current	95.18	63.83

The average incremental borrowing rate applied to lease liabilities during the year ranges from 6.40% to 7.00% (Previous year: 6.50% to 8.00%)

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

Amounts recognised in Statement of Proft and Loss Year ended March 31, 2022 Year ended March 31, 2021	Amounts recognised in Statement of Proft and Loss Year ended March 31, 2022 Year ended March 31, 2021
Interest on lease liabilities 8.69 6.49 Depreciation expense 24.43 18.06 Expenses relating to short-term leases and leases of low-value assets(Refer note 30) 30.36 17.92

Amounts recognised in Cash Flow Statement Year ended March 31, 2022 Year ended March 31, 2021
Total cash outfow for leases	25.68 20.19
Group Information
Name Principal activities Country of incorporation	% equity interest
	March 31, 2022 March 31, 2021
SRF Holiday Home Limited Development and lease of Industrial, commercial and residential complexes India SRF Altech Limited Manufacture of Aluminium flms India SRF Employees Welfare Trust (Controlled Trust) Implementation and operationalisation of long term incentive plans of the Company India SRF Global BV Investment company Netherlands SRF Flexipak (South Africa) (Pty) Limited (subsidiary of SRF Global BV) Manufacture of BOPP and metallized BOPP flms Republic of South Africa SRF EUROPE Kft (subsidiary of SRF Global BV) Manufacture of Polyester flm and metallized Polyester flm Hungary SRF Industries (Thailand) Limited (subsidiary of SRF Global BV) Manufacture of Tyre cord fabric, Polyester flm and metallized Polyester flm & trading of chemical products Thailand SRF Industex Belting (Pty) Limited (subsidiary of SRF Global BV) Trading of packaging flms and chemicalproducts Republic of South Africa	100% 100% 100% — 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

44 Group Information

By virtue of management control.

364 Annual Report 2021-22

Annual Report 2021-22 365

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

45 Additional information as required by Paragraph 2 of General Instructions for preparation of consolidated financial statements to the Schedule III to the Companies Act, 2013

==> picture [423 x 79] intentionally omitted <==

----- Start of picture text -----

Name of the entity in Net Assets, i.e., total Share in profit or loss Share in other Share in total
the Group assets minus total comprehensive income comprehensive income
liabilities
As % of Amount As % of Amount As % of Amount As % of total Amount
consolidated ( consolidated ( Crores) consolidated ( consolidated (
net assets Crores) Share in other Crores) comprehensive Crores)
profit or loss comprehensive income
income
----- End of picture text -----

I	Parent - SRF	89%	7,624.81	80%	1,507.01	112%	23.25	80%	1,530.26
	Limited
II	Subsidiaries:
A	Indian
1	SRF Holiday Home	-	3.75	-	0.01	-	-	-	0.01
	Limited
2	SRF Altech Limited	-	2.72	-	(2.28)				(2.28)
3	SRF Employees	-	0.05	-	(0.01)	-	-	-	(0.01)
	Welfare Trust
	(Controlled Trust)
B.	Foreign
1	SRF Global BV	12%	1,036.38	20%	383.42	(12)%	(2.53)	20%	380.89
	(Consolidated)
	Adjustments arising	(1)%	(102.35)	-	0.77	-	-	-	0.77
	out of consolidation
	Total	100%	8,565.36	100%	1,888.92	100%	20.72	100%	1,909.64
	Non-controlling	Nil	Nil	Nil	Nil	Nil	Nil	Nil	Nil
	Interests in all
	subsidiaries

46 Business Combinations

Effective March 04, 2022, one of subsidiaries (SRF Industex Belting (Pty) Limited) in the group acquired a business from an external party (Supratov Investments CC). The following assets were recognised as at the date of acquisition on the basis of provisional purchase price allocation.

==> picture [424 x 18] intentionally omitted <==

----- Start of picture text -----

Assets acquired Amount
----- End of picture text -----

Inventories	15.71
Intangible assets(Customer Contracts)	9.79
Purchase Price	25.50

Based on the current available information, the management has identified the above mentioned assets and carried out initial account as per Ind AS 103, as the business has been acquired closer to year-end. The group is in the process of identifying additional intangibles, if any, and completing the registration process of property, plant and equipment (building). Any further adjustments, would be recognised once the accounting for business combination is complete.

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

47 ADDITIONAL DISCLOSURES

(a) RESEARCH AND DEVELOPMENT EXPENDITURE

The details of research and development expenditure of 116.99 crores (Previous Year - 110.50 crores) included in these financials statements are as under:

	Year ended March 31, 2022	Year ended March 31, 2021
Capital expenditure	8.49	13.46
Revenue expenditure	108.50	97.04
	116.99	110.50

The details of revenue expenditure incurred on research and development is as below:

==> picture [424 x 35] intentionally omitted <==

----- Start of picture text -----

Year ended Year ended
March 31, 2022 March 31, 2021
Cost of material consumed 1.68 2.73
----- End of picture text -----

Cost of material consumed	1.68	2.73
Salaries and wages, including Bonus	49.11	42.97
Contribution to provident and other funds	2.92	2.61
Workmen and staf welfare expenses	3.37	2.72
Stores and spares consumed	4.94	6.11
Power and fuel	7.94	4.84
Rent	0.26	-
Repairs and maintenance
- Plant and machinery	10.63	8.32
- Others	0.85	0.58
Insurance	1.02	0.96
Rates and taxes	0.06	0.07
Travelling and conveyance Legal and professional charges	0.51 4.12	0.16 3.58
Depreciation and amortisation expense	16.65	18.33
Interest cost	0.05	0.28
Miscellaneous expenses	4.39	2.78
	108.50	97.04

(b) MANAGERIAL REMUNERATION

			Year ended March 31, 2022	Year ended March 31, 2021
(i)	(a)	Remuneration to Chairman / Managing
		Director / Deputy Managing Director /
		Whole time Director
		Salary and contribution to provident and other funds	16.39	12.04
		Value of perquisites	2.58	2.36
		Commission	18.00	12.00
		SUB-TOTAL	36.97	26.40

366 Annual Report 2021-22

Annual Report 2021-22 367

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Year ended Year ended
March 31, 2022 March 31, 2021
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Remuneration to Non Executive Directors
Commission	0.90	0.84
Directors sitting fees	0.29	0.27
Other fees	0.06	0.14
SUB-TOTAL	1.25	1.25
TOTAL	38.22	27.65

(c) The Group has elected to continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items as described in Para D13 AA of Ind AS 101. Accordingly, exchange loss/ (gain) arising on all long term monetary items financed or re-financed on or before March 31, 2016 relating to acquisition of following depreciable assets are added to/ adjusted from the cost of such assets/ capital work in progress and will be depreciated over the balance useful life of such assets.

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Exchange loss/ (gain) added/ (adjusted) Year ended Year ended
March 31, 2022 March 31, 2021
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Property, plant and equipment
- Roads	0.11	(0.52)
- Buildings - Plant and equipment - Furniture and fxtures	1.52 13.60 0.04	(6.98) (31.59) (0.14)
- Ofce equipment	0.01 15.28	(0.01) (39.24)

The cumulative exchange loss/ (gain) added/ (adjusted) and remaining unamortised as at March 31, 2022 is 258.34 Crores (Previous year: 259.14 Crores).

(d) Disclosure on corporate social responsibility expense:

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Year ended Year ended
March 31, 2022 March 31, 2021
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(i)	Amount required to be spent by the company	18.61	12.88
	during the year
(ii)	Amount of expenditure incurred	19.06*	10.18
(iii)	Shortfall at the end of the year	-	2.7**
(iv)	Total of previous years shortfall	-	-
(v)	Reason of shortfall	-	Pertains to
			ongoing projects

Notes to the consolidated financial statements

for the year ended March 31, 2022

(All amounts in ` Crores, unless otherwise stated)

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Year ended Year ended
March 31, 2022 March 31, 2021
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(vi)	Nature of CSR activities	School education, disaster management,
		environmental projects, Covid 19 Relief,
		Vocational skill and livelihoods projects
		and promotion of art and cultural projects
(vii)	Details of related party transactions	21.38 9.18
(viii)	Provision made with respect to a liability incurred by	- -
	enteringinto a contractual obligation

** Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, the unspent amount was subsequently deposited in a “Unspent CSR Account” and also utilised during the year ended March 31, 2022.
This includes 18.68 crores pertaining to current year and 0.37 crores pertaining to previous year. In accordance with the above amended rules, the Company had taken credit for 0.37 crores for excess CSR expenditure incurred during financial year 2019-20 and adjusted the same towards the CSR obligation for financial year 2020-21. However, the Ministry of Corporate Affairs (MCA), through its circular dated August 25, 2021, clarified that the companies cannot set off excess CSR amount spent prior to financial year 2020-21. Accordingly, an amount of 0.37 crore has been transferred to one of the specified funds prescribed under Schedule VII to the Companies Act, 2013 before September 30, 2021.
(e) The Company has established a comprehensive system of maintenance of information and documents as required by transfer pricing legislation under section 92D for its international transactions as well as specified domestic transactions. Based on the transfer pricing regulations/ policy, the transfer pricing study for the year ended March 31, 2022 is to be conducted on or before due date of the filing of return and the Company will further update above information and records based on the same and expects these to be in existence latest by that date. Management believes that all the above transactions are at arm’s length price and the aforesaid legislations will not have impact on the financial statement, particularly on the amount of tax expense and provision for taxation.

(f) OTHER STATUTORY INFORMATION

(i) There are no funds which have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Holding Company or any of subsidiaries incorporated in India, to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Holding Company or any of such subsidiaries (“Ultimate Beneficiaries”) or
b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ii) There are no funds which have been received by the Holding Company or any of subsidiaries incorporated in India, from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Holding Company or any of such subsidiaries shall:
a) directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or
b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

368 Annual Report 2021-22

Annual Report 2021-22 369

Notes to the consolidated financial statements

for the year ended March 31, 2022

Statement pursuant to first proviso to sub section(3) of section 129 of Companies Act 2013,read with rule 5 of Companies (Accounts) Rules, 2014 in prescribed form AOC-1 relating to subsidiaries/associates companies/joint ventures

(All amounts in ` Crores, unless otherwise stated)

(iii) The group does not have any transactions with companies which are struck off, except the following:

Name of the struck of company	Nature of transactions with struck of company	Balance outstanding as at March 31, 2022	Balance outstanding as at March 31, 2021	Relationship with the struck of company, if any
Jyotsna Engineers &	Receivables	^	^	Vendor
Consultants Private
Limited
Krishna Freeze Private	Payables	0.01	0.01	Customer
Limited
Perfect Refcon & Tools	Payables	0.01	0.01	Customer
Private Limited

^ Amount in absolute 2,000 (Previous year: 2,000)

(iv) The group does not have any benami property, where any proceeding has been initiated or pending against the group for holding any Benami property.
(v) The group is not declared a wilful defaulter by any bank or financial institution or any other lender.
(vi) The Company has complied with the number of layers prescribed under section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.
(vii) The group does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
(viii) The group has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(g) The figures for the previous year have been regrouped wherever necessary to comply with amendments in Schedule III of the Companies Act, 2013.

As per our report of even date attached For and on behalf of the Board of Directors

For B S R & Co. LLP Chartered Accountants ICAI Firm registration no. 101248W / W-100022

Kaushal Kishore Ashish Bharat Ram Kartik Bharat Ram Partner Chairman and Joint Managing Director Membership No.: 090075 Managing Director DIN - 00008557 Place : Gurugram DIN - 00671567 Place : Gurugram Date : May 27, 2022 Place : Gurugram Date : May 09, 2022 Date : May 09, 2022 Rahul Jain Bharti Gupta Ramola Rajat Lakhanpal President & CFO Director Vice President Place : Gurugram DIN - 00356188 (Corporate Compliance) Date : May 09, 2022 Place : Gurugram and Company Secretary Date : May 09, 2022 Place : Gurugram Date : May 09, 2022

A Statement showing salient features of the financial statements of subsidiaries Indian Subsidiaries

S. No. Name of the subsidiary SRF Holiday Home Limited (subsidiary of SRF Limited) (`Crores)<br>SRF Altech Limited<br>(subsidiary of SRF Limited)<br>(`Crores)	S. No. Name of the subsidiary SRF Holiday Home Limited (subsidiary of SRF Limited) (`Crores)<br>SRF Altech Limited<br>(subsidiary of SRF Limited)<br>(`Crores)
(a) Reporting Period 1 April 2021 to 31 March, 2022 1 April 2021 to 31 March, 2022 (b) Date since when subsidiary was acquired/formed 30.01.2008 15.03.2022 (c) Reporting Currency INR INR (d) Exchange Rate - - (e) Share Capital 4.00 5.00 (f) Reserves and Surplus (0.25) (2.28) (g) Total Assets 3.78 2.72 (h) Total Liabilities 0.02 0.01 (i) Investment - - (j) Turnover - - (k) Proft/(Loss) Before Taxation 0.01 (2.76) (l) Tax expense / (income) - (0.47) (m) Proft/(Loss) After Taxation 0.01 (2.28) (n) Proposed Dividend - - (o) % of shareholding 100% 100%

S. No. Name of the subsidiary	SRF Global BV# SRF Flexipak (South Africa) (Pty) Limited#
	(subsidiary of SRF Limited) (subsidiary of SRF Global BV)
	USD `Crores<br>Rand<br>`Crores
(a) Reporting Period (b) Date since when subsidiary was acquired/formed (c) Reporting Currency (d) Exchange Rate (e) Share Capital (f) Reserves and Surplus (g) Total Assets (h) Total Liabilities (i) Investment (j) Turnover (k) Proft/(Loss) Before Taxation (l) Tax expense / (income) (m) Proft/(Loss) After Taxation (n) Proposed Dividend (o) % of shareholding	1 April 2021 to 31 March, 2022 1 April 2021 to 31 March, 2022 20.10.2008 26.10.2011 USD `Crores<br>Rand<br>`Crores 75.73 5.22 1,83,15,664 138.70 100 0.00 (2,42,53,897) (183.67) 54,92,59,311 286.71 8,00,89,962 606.52 93,01,73,795 485.55 8,60,28,195 651.49 38,09,14,384 198.84 - - - - 1,21,82,56,227 635.93 (3,47,088) (2.63) 31,51,60,169 164.51 - - 8,60,57,017 44.92 (3,47,088) (2.63) 22,91,03,152 119.59 - - - - 100% 100%

Investment in subsidiary USD 1,42,79,669 (Equivalent to ` 108.14 crores)

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S. No. Name of the subsidiary	SRF Industries (Thailand) Limited# SRF Industex Belting (Pty) Limited#	SRF Industries (Thailand) Limited# SRF Industex Belting (Pty) Limited#
	(subsidiary of SRF Global BV) (subsidiary of SRF Global BV)
	THB `Crores<br>Rand<br>`Crores
(a) Reporting Period (b) Date since when subsidiary was acquired/formed (c) Reporting Currency (d) Exchange Rate (e) Share Capital (f) Reserves and Surplus (g) Total Assets (h) Total Liabilities (i) Investment (j) Turnover (k) Proft/(Loss) Before Taxation (l) Tax expense / (income) (m) Proft/(Loss) After Taxation (n) Proposed Dividend (o) % of shareholding	1 April 2021 to 31 March, 2022 1 April 2021 to 31 March, 2022 08.09.2008 13.06.2008 THB `Crores<br>Rand<br>`Crores 2.28 5.22 20,00,00,300 45.60 1,33,20,202 6.95 3,10,05,96,284 706.94 (4,66,60,708) (24.36) 8,04,89,03,897 1,835.15 10,66,76,650 55.69 4,74,83,07,313 1,082.61 14,00,17,156 73.09 - - - - 6,01,36,39,796 1,371.11 2,21,61,161 11.57 1,01,37,84,473 231.14 29,57,686 1.54 2,16,43,990 4.93 - - 99,21,40,483 226.21 29,57,686 1.54 - - - - 100% 100%

S. No. Name of the subsidiary		SRF Europe Kft#
		(subsidiary of SRF Global BV)
		EURO `Crores
(a) Reporting Period (b) Date since when subsidiary was acquired/formed (c) Reporting Currency (d) Exchange Rate (e) Share Capital (f) Reserves and Surplus (g) Total Assets (h) Total Liabilities(external liabilities) (i) Investment (j) Turnover (k) Proft/(Loss) Before Taxation (l) Tax expense / (income) (m) Proft/(Loss) After Taxation (n) Proposed Dividend (o) % of shareholding		1 April 2021 to 31 March, 2022 25.04.2018 EURO `Crores 84.07 10,10,000 8.49 48,57,005 40.83 11,73,56,051 986.61 11,14,89,046 937.29 - - 7,24,60,536 609.18 50,70,087 42.62 69,915 0.59 50,00,172 42.04 - - 100%

B Statement containing salient features of the financial statements of associates companies/ joint ventures

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Name of Associate Companies/Joint Ventures Malanpur Captive Vaayu Renewable
# Power Ltd. Energy(Tapti) Pvt. Ltd.
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Latest audited Balance Sheet date	31.03.2021	31.03.2021
Share of Associate Companies held by the Company	4.22	0.05
on the year end
Date on which the Associate was associated or acquired	09.01.2007	29.05.2013
Shares of associate held by the company on the
year end
Number of shares:	42,21,535	50,000
Amount of investment in Associate Companies	4.22	0.05
Extent of holding (%)	22.60%	26.32%
Description of how there is signifcant infuence	Due to control of at	Due to control of at
	least 20% of total share	least 20% of total share
	capital as envisaged	capital as envisaged
	in Sec. 2(6) of the	in Sec. 2(6) of the
	Companies Act ,2013	Companies Act ,2013
Reason why the associate company is not consolidated	*	*
Net worth attributable to shareholding as per latest	(7.46)	11.60
Audited Balance Sheet
Proft & loss for the year
(i) Considered in Consolidation	Nil	Nil
(ii)Not considered in Consolidation	(0.35)	(0.70)

# The company has no joint venture

Investment in both these captive power companies are held by the company as a consumer in accordance with the requirements of the Electricity Act, 2005. The company does not exercise significant influence as defined under IND AS over these companies and therefore their annual accounts are not consolidated with the annual accounts of the company.

For and on behalf of the Board of Directors

Bharti Gupta Ramola Director DIN - 00356188 Place : Gurugram Date : May 09, 2022

Ashish Bharat Ram Chairman and Managing Director DIN - 00671567 Place : Gurugram Date : May 09, 2022

Kartik Bharat Ram

Joint Managing Director DIN - 00008557 Place : Gurugram Date : May 09, 2022

The financial statements of these foreign subsidiaries have been converted into Indian Rupees on the basis of following exchange rates:

(i) 1 USD = 75.73 (ii) 1 Baht = 2.28 (iii) 1 Rand = 5.22 (iv) 1 Euro = 84.07

Rahul Jain

President & CFO Place : Gurugram Date : May 09, 2022

Rajat Lakhanpal

Vice President (Corporate Compliance) and Company Secretary Place : Gurugram Date : May 09, 2022

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Notes

Notes

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Registered Office

Unit No. 236 & 237, 2nd Floor, DLF Galleria, Mayur Place, Noida Link Road, Mayur Vihar Phase - I Extn., Delhi, India - 110 091 Tel.: +91-11- 49482870

Corporate Office Block - C, Sector - 45, Gurugram, Haryana, India - 122 003 Tel.: +91-124-4354400

Follow Us

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AI assistant

SRF Ltd. — Annual Report 2022

61903_rns_2022-06-28_c3f9df62-bf92-4021-af19-b5320b6d56a1.pdf

SFIF

Contents

Chairman’s Message

Dear Shareholders,

Firmly rooted. Growing responsibly.

Financial Performance

Business Performance

Chemicals Business

as propel the business forward.

Packaging Films Business

Technical Textiles Business

Other Businesses

Our People are our Real Assets

Expanding our Community Impact

In closing

Ashish Bharat Ram

Our Locations

National

International

Chairman Emeritus

Board of Directors

Corporate Information

Registered Office

Auditors

President & CFO

Corporate Office

Bankers

Our approach to ESG

Table of Contents

Scope and Boundary

SRF’s Business Verticals

The Six Capitals

Speciality Chemicals

Fluorochemicals

Technical Textiles Business

Key ESG Performance Highlights

Governance

Committees Driving Performance Excellence

CSR Committee

Audit Committee

Nomination and Remuneration Committee

The Committee is

Stakeholders Relationship Committee

Risk Management Committee

Sustainability is at the Heart of our Governance Framework

Codes and Policies for Best-in-Class Governance

Codes & Policies

(Business Responsibility Report Principle 1)

Regulatory Compliance - Our Pride

(Business Responsibility Report Principle 1 & 9)

(Business Responsibility Report Principle 7)

Creating Shared Value Through Extensive Stakeholder Engagement

Inclusive Stakeholder Engagement Process

Materiality Assessment Driving Long-Term Value Creation

Social

Governance

Environment

Managing Risks Strategically for a Sustainable Tomorrow

Enterprise-Level Risk Management Framework

Strategy

Value Creation Model

DRIVING BUSINESS WITH VALUES

The Six Capitals

The Capitals

FINANCIAL CAPITAL

1. Financial Capital

2. Manufactured Capital

3. Intellectual Capital

4. Natural Capital

5. Human Capital

6. Social & Relationship Capital

Material Issues Impacted

Inputs

Outputs

Revenue & EBITDA/Revenue ( ` Cr.)

MANUFACTURED CAPITAL

Material Issues Impacted

SRF Ltd. Annual Report 2022