The BSE Ltd. BSE’s Corporate Relationship Department 1[st] 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-52/2023

07[th] June, 2023

Dear Sir,

Sub: Annual Report of 52[nd] Annual General Meeting- SRF Limited

In Compliance with Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 please find attached 52[nd] 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

Rajat Digitally signed by Rajat Lakha Lakhanpal Date: 2023.06.07 12:00:31 +05'30' npal

Rajat Lakhanpal

Sr. VP (Corporate Compliance) & Company Secretary

Encl : A/a

ANNUAL REPORT 2022-23

CREATING VALUE, THE SUSTAINABLE WAY

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A. Corporate Overview

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08 Our Locations
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02 Chairman’s Message 06 SRF Limited at a Glance 07 Awards & Recognition 08 Our Locations 10 Board of Directors 11 Corporate Information

B. Statutory Reports

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112 Board’s Report
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95 Notice

148 Management Discussion & Analysis 161 Corporate Governance Report

C. Financial Statements

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12 Our approach to ESG
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12 Our approach to ESG 14 About the ESG Report 20 Corporate Governance
25 Materiality Assessment
26 Building Long-Term Relationship With Stakeholders
30 Risk Management
38 Value Creation Model
40 Capital-Wise Performance
70 Business Responsibility & Sustainability Report

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182 Financial Statements
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182 Standalone Financial Statements 290 Consolidated Financial Statements

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

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

CHAIRMAN’S MESSAGE

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Dear Shareholders,
On behalf of the Board
of Directors of SRF Ltd.,
I am pleased to present
the annual report for
the financial year ended
March 31, 2023.
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SRF’s progress has always been

purposeful – beyond profits and always inclusive. Mindfulness in our actions and awareness about the impact of our decisions, have helped us be the changemakers for a better tomorrow. It explains why we chose – ‘ Creating Value, the Sustainable Way’, as the theme of our annual report this year. We remain committed to the sustainable

From a financial point of view, in FY23, SRF’s revenue increased 20% from ₹12,434 crore to ₹14,870 crore over Corresponding Period Last Year (CPLY). The Company’s EBIT increased 13% from ₹2,835 crore to ₹3,193 crore and the Profit after Tax increased 14% from ₹1,889 crore to ₹2,162 crore, over CPLY.

growth of our Business.

The Year Under Review

Backed by a strong sense of purpose, and a clear strategic vision, SRF demonstrated resilience and delivered an exceptional performance in FY23.

Throughout FY23, the operating environment was characterised by complexity and uncertainty: the volatile international crude oil prices, which led to fluctuation in the prices of certain key raw materials; the low level of demand from customers of our Technical Textiles and Packaging Films Businesses; and the overall macroeconomic and geopolitical upheavals. Having said that, our Chemicals Business performed exceedingly well, both on operating and financial parameters.

₹2,162 crore, over CPLY.

Let me now talk about some of the milestones achieved by each of our Businesses in FY23.

Our fourth state-of-the-art Multipurpose Plant at Dahej, India

Chemicals Business

In FY23, the Chemicals Business accomplished strong growth of 41.4% Year-over-Year (Y-o-Y) to achieve record revenues of ₹7,410.9 crore.

Specialty Chemicals Business

Our Specialty Chemicals Business (SCB) performed remarkably well in the year, driven by strong demand in both the export and domestic markets. The basic premise that the world is looking at alternative options to build a reliable supply chain holds true and as a result the value proposition for SCB remains very strong. Our new product portfolio is being enhanced continuously, which also helps us expand and strengthen our customer base further. During FY23, we launched four new products in the agrochemicals space and one product in the pharma segment and our developmental pipeline is stronger than ever before.

The Business continues to make investments towards safer, cleaner, and leaner operations, and further strengthen its sustainability initiatives. During the year, we successfully commissioned our state-of-the-art Multi-Purpose Production (MPP4) facility, a dedicated facility each for agrochemical and pharmaceutical intermediates and a Thermal Oxidation facility at Dahej.

The centrepiece of this sustained growth momentum has been the technological advances and breakthroughs achieved by our team of researchers and scientists. Today, the Chemicals Technology Group (CTG) has transformed into the innovation and technology leadership hub at SRF, developing a variety of new technologies and

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platforms to bolster SRF into nextlevel technology play. In this regard, I am pleased to share that in FY23, our R&D and scale-up facilities were further augmented, and a new R&D facility was commissioned to achieve this. With R&D getting integrated in one location at Bhiwadi, we expect further enhancement in the collaborative efforts of our researchers and scientists.

Fluorochemicals Business

The Fluorochemicals Business (FCB) delivered a solid performance in FY23, owing to higher sales volumes and enhanced realisations in the refrigerants, blends, and chloromethanes segments, in both the domestic and export markets. Our continued focus on growing our export markets, especially in the US has borne fruit.

Moreover, our Dymel® HFA 134a/P (pharma grade) gas continued to expand its presence in several countries and recorded healthy growth. With a solid demand outlook in important markets like India, parts of Europe, US, and the Middle East, we will continue to focus on operating our facilities as efficiently

as possible to maintain the business’ dominant market position.

In FY23, our second CMS plant in Dahej was commissioned successfully. At approx. 100,000 Metric Tonnes Per Annum (MTPA), it is one of the largest of its kind plants anywhere in the world. We also commissioned a new captive power plant, which ensures that the Dahej site will not be starved for any of its utility needs, and a calcium chloride plant.

Work on the new HFC plant remains on track and product approvals for the PTFE plant, to be commissioned shortly, are underway. In addition to the above, the Board approved a project to expand our fluoropolymers range beyond PTFE to other specialty fluoropolymers during the year.

In FY23, our second CMS plant in Dahej was commissioned successfully. At approx. 100,000 Metric Tonnes Per Annum (MTPA), it is one of the largest of its kind plants anywhere in the world.

Our second CMS Plant in Dahej

Packaging Films Business

In FY23, our Packaging Films Business witnessed moderate growth of 8.4% Y-o-Y to achieve

revenues of ₹5,182.7 crore.

During the year, the Packaging Films Business faced headwinds with several new lines getting operationalised in both the BOPET and BOPP film segments in India and overseas. In addition, a decline in the global demand, coupled with elevated energy costs in Europe adversely impacted our operations in Hungary. We have since seen some moderation in the energy index and are confident of a better performance in FY24. We have also debottlenecked our capacity in South Africa by ~15%, which will give us some added benefits in

the year ahead.

I am pleased to share that during the year, we successfully commissioned our 2nd BOPP Film Line and Metalliser at Indore, India. This investment for the expanded BOPP film production means that we are adding another 60,000 MTPA to our existing BOPP capacity of 45,000 MTPA in India. It will further boost SRF’s position in the BOPP market in India and enhance volume growth in the future. It is also a matter of great pride that our Packaging Films Business (Indore) was recognised with the Quality Sustainability Award at the international convention, organised by the International Academy for Quality (IAQ), second year in a row, in recognition of our work in the area of innovating films that have a lower environmental footprint.

Our VAP story remains on track and our Aluminium Foil project is likely to start towards the end of Q2 in FY24. With this project coming on stream, it will make SRF one of a handful of companies globally that provides

three of the major substrates — BOPET, BOPP and Aluminium Foil. We believe that the ability to crosssell all three will be unique to SRF.

As demand pivots towards global suppliers with multi-locational facilities, and with our focus on operational efficiencies, cost reduction initiatives to mitigate volatility and our strong customer relationships, we remain cautiously optimistic about the prospects of this Business.

Technical Textiles Business

In FY23, our Technical Textiles Business witnessed de-growth of 9.2% Y-o-Y, to close the year with revenues of ₹1,893.9 crore.

Overall, the Technical Textiles Business witnessed a subdued performance, owing to weak demand for the Nylon Tyre Cord Fabric (NTCF), our foundation business segment. Having said that, we are seeing trends for a slight improvement in demand for NTCF. This is based on our interactions with our customers. Our focus will be on

ramping up capacity utilisation.

In the future, we will build on the non-tyre market in order to derisk Technical Textiles Business from NTCF. We expect the demand for Belting Fabrics to grow in the near future due to an increased Government focus on infrastructural development. In this regard, I am pleased to share that a project for capacity expansion and modernisation of Belting Fabrics operations at Viralimalai, India from 1,100 Metric Tonnes Per Month (MTPM) to 1,800 MTPM was approved during the year. This investment will aid in enhancing our market share further and provide a strong margin profile, which is sustainable in the medium-to-long term. In addition, the sales of high-

– children, youth, women, and marginalised people.

end VAPs and commercialising Solid Woven products will be our focus in the Belting Fabrics segment.

Looking ahead

Polyester Industrial Yarn demand is expected to go up with key drivers being geo-textiles and seat belts.

I believe that our Chemicals Business will continue to do well, and we will target a 20% growth in FY24 as well, which in my view will be exceptional considering the global headwinds that we are seeing. Our Packaging Films Business is expected to have a tough year, but we will find countermeasures as we go along. This is a part-and-parcel of business cycles.

Overall, we expect the Business to

experience moderate growth in FY24.

Other Businesses

In FY23, our Other Businesses demonstrated promising results of 15.4% Y-o-Y to achieve healthy

revenues of ₹392.6 crore.

We achieved the highest-ever EBITDA in the Coated Fabrics Business , maintaining our domestic market leadership in the segment. In the Laminated Fabrics Business too, we managed overall volume and price leadership, despite an over-supply situation in the market that adversely impacted realisations

We will continue to invest ahead of time in our Chemicals Business and work towards capitalising the many attractive growth opportunities we see in this Business.

In closing

over-supply situation in the market I would like to thank everyone that adversely impacted realisations who supported us throughout this in this segment. eventful year. I am grateful to our customers for entrusting us with An Employer of Choice their business, to our Board for Our People are at the heart of providing invaluable guidance and to our success and our continuing our shareholders for their continued endeavours to do better. Our HR support. I also wish to express my policies are crafted to ensure appreciation to our employees, professional growth while who delivered successful outcomes contributing to the employee’s across the globe. I look forward sense of pride and well-being. to the year ahead and am excited Our record employee engagement about what we can achieve together. scores and people practices have also been recognised externally, as Sincerely, highlighted by our recent inclusion on the Fortune ‘Employers of Ashish Bharat Ram the Future’ list.

Chairman and Managing Director SRF Limited

Uplifting Lives and Livelihoods

Our commitment to the communities we serve has never been stronger. Working in the areas of education, healthcare, skills development, and the bridging of the digital divide between urban and rural India, our programmes are scaling well - in reach as well as depth of impact. Today, these initiatives are touching the lives of over 2 lakh beneficiaries

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FINANCIAL STATEMENTS

SRF LIMITED AT A GLANCE

has commercial interests in more than ninety countries and classifies its main businesses as Chemicals Business (CB), Packaging Films Business (PFB), Technical Textiles Business (TTB), and Other Businesses.

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. The Company 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 three other countries namely, Thailand, South Africa and Hungary. The Company

At SRF, we stand committed to serving our customers in the best possible manner through our wide range of products and services. Pursuing our passion, we have adopted ‘continuous improvement’ as a motto that shapes our plans and actions. With our diverse portfolio,

we strive to provide the highest quality of sustainable, industrial and specialty intermediates that contribute to a better way of life.

Our maxim – “We always find a better way” – is encapsulated not only in the products that we manufacture and the superior processes that we adopt but also amply demonstrated in our penchant for innovation, technology leadership, employee engagement, professional management, transparent governance and inclusive growth.

AWARDS & RECOGNITION

SRF is proud to be recognised by some of the most important and influential publications and organisations around the world in FY23.

Received the Finance Transformation Initiative of the Year Award - The C2FO program

Awarded the Best Family Business in the Giga category at the first-ever Moneycontrol Indian Family Business Awards 2021

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Named Employer of the Won the award for Future by FORTUNE INDIA Enlightened Growth Magazine Leadership , 2022 by the Frost & Sullivan Institute

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Mahatma Award for Social Good and Impact in Quality Education earned by SRF Foundation

SRF’s President & CFO, Rahul Jain recognised with the “ FE Financial Star” award under Financial Express.com FE POWER LIST

S R F ’ s C h e m i c a l s manufacturing facility in Bhiwadi, Rajasthan honoured with the Bhamashah Award by the Government of Rajasthan. The site received this award for outstanding contribution in Education and Infrastructural development of Government Schools in Alwar, Rajasthan

SRF’s Packaging Films Business is the recipient of the IAQ Quality Sustainability Award by the International Academy for Quality (IAQ)

SRF’s Chairman and Managing Director, Ashish Bharat Ram named India’s Best CEO in the Mid-sized Companies category of the Business Today-PwC India’s Best CEOs.

SRF’s Fluorochemicals Business unit in Thailand was conferred the ‘ Best Supplier’ Award by Toshiba

Bird’s eye view of our Dahej facility

Annual Report 2022-23

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OUR LOCATIONS

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CHEMICALS
BUSINESS
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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

National

Rampura, Ramnagar Road, PACKAGING FILMS Kashipur - 244 713, Uttarakhand BUSINESS
Special Economic Zone, Pithampur – 454 775, Madhya Pradesh
Industrial Area, Bagdoon, Pithampur – 454 775, Madhya Pradesh
Plot No. K1, SIPCOT Industrial Complex, TECHNICAL TEXTILES Gummidipoondi, Thiruvallur, District - Tamil Nadu, BUSINESS India - 601 201
Manali Industrial Area, Manali, Chennai, Tamil Nadu, India - 600 068
Viralimalai, District - Pudukottai, Tamil Nadu, India - 621 316
Malanpur Industrial Area, Bhind, Madhya Pradesh, India - 477 116
Plot No. K1, SIPCOT Industrial Complex, Gummidipoondi, OTHER Thiruvallur District, Tamil Nadu, India - 601 201 BUSINESSES
• Unit No. 2, Plot No. 12, Rampura, Ramnagar Road, Kashipur, District - Udham Singh Nagar, Uttarakhand, India - 244 713
Industrial Growth Centre, Pithampur – 454 775, Madhya Pradesh
SRF Altech Ltd. Jetapur-Palasia Industrial Area, Jetapur – 454 552, Madhya Pradesh

International

SRF Industries (Thailand) Ltd. • SRF Flexipak (South Africa) Ltd. • SRF Europe Kft. D-20, Hemraj Eastern 5 Eddie Hagan Drive, SRF Ut 1, Seaboard Industrial Estate, Cato Ridge 3680, Jászfényszaru-5126, Hungary Amphur Pluakdaeng, KwaZulu-Natal, Durban Rayong - 21140

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CHAIRMAN EMERITUS

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Arun
Bharat Ram
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BOARD OF DIRECTORS

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Ashish Kartik
Bharat Ram Bharat Ram
Chairman & Joint
Managing Managing
Director Director
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Pramod Vellayan G. Gujarathi Subbiah Director (Safety Non-Executive, & Environment) Non-Independent and Occupier Director

Tejpreet S Chopra Independent Director

Lakshman Bharti Gupta Puneet Lakshminarayan Ramola Yadu Dalmia Independent Independent Independent Director Director Director

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Yash Raj Kumar Gupta Jain Independent Independent Director Director

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CORPORATE INFORMATION

Bankers

Auditors

Yes Bank

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

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

President & CFO

Rahul Jain

Sr. Vice President (Corporate Compliance) & Company Secretary Rajat Lakhanpal

Corporate Office

Registered Office (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

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

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About the ESG Report Business Portfolio Industries we serve
ESG Highlights
Performance Snapshot
Corporate Governance Board of Directors Board Committees

Our Policies and Codes

OUR APPROACH TO ESG

Sustainability Governance Framework

Industry Associations Compliances and Regulations
Materiality Assessment

Building Long-term Relationship with Stakeholders

Risk Management Linkages with SDGs

Strategy

Value Creation Model
Capital-wise Performance

Financial Capital

Manufactured Capital
Intellectual Capital

Human Capital

Natural Capital
Social and Relationship Capital

12 Annual Report 2022-23

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

ABOUT THE ESG REPORT

The ESG report provides a holistic overview of our sustainable and responsible approach to creating long-term value for our stakeholders, including customers, investors, employees, communities, etc., and sustainably leading our business operations. It reflects the financial and non-financial performance of SRF Limited highlighting the current system, processes, performance and initiatives undertaken in the reporting period.

Scope and Boundary

The report highlights the performance of SRF Limited for the period April 1, 2022 to March 31, 2023. This report covers the following businesses of SRF Limited:

Chemicals Business

Packaging Films Business Technical Textiles Business

Other businesses such as Laminated Fabrics and Coated Fabrics are not considered.

Financial numbers in this report are given on a consolidated basis.

Reporting Frameworks

The report is aligned with the ‘Guiding Principles’ and the ‘Content Elements’ of the International Integrated Reporting Council’s (IIRC) framework. The content also conforms to the Global Reporting Initiative (GRI) standard.

The Company has disclosed statutory information in this required information in accordance report is in accordance with the with Business Responsibility and requirements of the Companies Act, Sustainability Reporting (BRSR) 2013, Indian Accounting Standards, disclosure principles wherever and the Secretarial Standards. applicable. The financial and

Annual Report 2022-23

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FINANCIAL STATEMENTS

Business Portfolio

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Chemicals Packaging Technical
Business Films Business Textiles Business
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CHEMICALS BUSINESS

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Fluorochemicals

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The Chemicals business includes two segments, namely Specialty Chemicals and Fluorochemicals.

Manufacturer of ozone-friendly refrigerants in India with globalscale fully integrated facilities

Specialty Chemicals

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

Pharma propellants and industrial chemicals

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

PACKAGING FILMS BUSINESS

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TECHNICAL TEXTILES BUSINESS

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

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

The largest manufacturer of technical textiles in India

Product basket for technical textiles includes tyre cord fabrics, belting fabrics and industrial yarn and is used in varied applications, such as tyres, seatbelts, conveyor-belts and other industrial applications

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STATUTORY REPORTS FINANCIAL STATEMENTS

Industries we serve

With our presence in India, Thailand, South Africa, and Hungary, we serve customers in over 86 countries globally.

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Automotive	Pharmaceuticals	Air Conditioning	Manufacturing
Food & Agro	Renewable Energy	Lifestyle & Decor	Agrochemicals

FMCG	Refrigeration	Technical Textiles	Advertising

Events &	Mining	Electronics	Chemicals
Exhibitions

ESG Highlights

SRF Limited is committed towards building an organisation that is focussed on long-term sustainable growth and development. We believe our ESG journey is inherently a collaborative one, inclusive of planet, people, and profit. This section of the report reflects our commitments, current systems, performance, and initiatives undertaken by SRF for mainstreaming ESG in our business activities. The report provides standalone nonfinancial information on SRF Limited and covers the period from April 1, 2022 to March 31, 2023.


Performance Snapshot
31% Increase in Energy	38.45 TJ of energy saved		8.30% Increase in recycled	1,201TJ Energy consumed from
consumption from renewable			water from FY22	renewable sources and
sources (including biomass				biomass
consumption) from FY22
61%	~1.6Lakh		3.5Lakh	16%
Reduction in LTIFR from FY22	Training	hours	CSR benefciaries	Increase of females at management level from FY22
18	`3,708Cr.\|\|`2,162Cr.		`14,870Cr.
New process	EBIDTA		PAT	Gross Operating Revenue
patents granted

18 Annual Report 2022-23

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FINANCIAL STATEMENTS

CORPORATE GOVERNANCE

Our prosperity is proportional to our good corporate governance practices

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CORPORATE
GOVERNANCE
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At SRF, an efficient governance framework is a crucial element in achieving success and generating long-term value for all stakeholders. The corporate governance structure aligns with the Company’s deeply ingrained and widely practised core values. The Board is dedicated to fostering an ecosystem that encourages effective corporate governance, internal controls, accountability, and financial prudence. To capitalise on various opportunities at all levels, robust processes and systems are established to support

is a group of industry professionals who come with diverse skill sets, and rich experiences which enable and facilitate effective decision-making and execution of sustainable and long-term strategies. The Board conducts thorough evaluations of all significant aspects of the Company, ensuring that all business activities align with the Company’s longterm objectives. Board members oversee the Company’s financial, environmental, and social performance, as well as address key risks and opportunities.

and develop organisational capabilities. This reinforces SRF’s commitment to operating with the utmost standards of integrity, ethics, and transparency to gain and retain the trust of its people, customers, vendors, communities, and other relevant stakeholders.

Board of Directors

We firmly believe that a Board that is both proactive and wellinformed, as well as impartial, is crucial in maintaining the utmost level of corporate governance standards. Our Board of Directors

Arun Bharat Ram	Ashish		Kartik	Tejpreet
Chairman Emeritus	Bharat Ram		Bharat Ram	S Chopra
	Chairman &		Joint	Independent Director
	Managing Director		Managing Director
Vellayan Subbiah	Lakshman		Pramod	Bharti
Non-Executive, Non-	Lakshminarayan		G. Gujarathi	Gupta Ramola
Independent Director	Independent	Director	Director (Safety & Environment)	Independent Director
			and Occupier
Puneet Yadu Dalmia	Yash Gupta Independent Director		Raj Kumar Jain Independent Director
Independent Director
Risk	Nomination		Stakeholders	Committee
Management Committee	& Remuneration		Relationship Committee	Chairman
	Committee
Audit Committee	Corporate	Social	Committee of Directors
	Responsibility Committee		Financial Resources

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FINANCIAL STATEMENTS

Board Committees

Teams that go beyond their duty to nurture stakeholder relationships and give them the value they deserve.

At SRF, the governance structure encompasses six committees at the Board level, each with distinct roles and responsibilities. These committees play a critical role in safeguarding the interests of all shareholders and aiding the Company’s ascent to market leadership.

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Board of Directors
Nomination Stakeholders Risk Committee of
Audit CSR
and Remuneration Relationship Management Directors
Committee Committee
Committee Committee Committee Financial Resources
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Refer Corporate Governance Report for a detailed description.

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Our Code of Conduct

The Company’s Code of Conduct (CoC) serves as evidence of the organisation’s commitment to conducting business with the highest levels of integrity, honesty, and accountability. The CoC ensures compliance with internal standards of business practices and encompasses areas such as regulatory compliance, fair employment practices, environmental, health and safety, conflicts of interest, and safeguarding the Company’s assets. The Board members and senior management representatives adhere to the principles outlined in the Code of Conduct. The CoC, combined with the Whistleblower policy, reinforces the Company’s stated values (RINEW) and encourages ethical behaviour and transparency in business.

Our Policies and Codes

At SRF, we believe that implementing robust policies and practices that consider Environmental, Social, and Governance (ESG) factors is essential in the decision-making process. We continuously reassess and reimagine our strategies to keep up with the rapidly changing business landscape and the evolving needs of our consumers. Our policies offer explicit guidance to employees regarding their ethical and behavioural standards to uphold our organisation’s values and ensure responsible business practices. While compliance with these policies is obligatory for all employees, we also promote and encourage all other stakeholders to adopt and adhere to the same.

Code of Conduct Supplier Code of Conduct Board Diversity Policy Privacy Policy Information Security/ Cybersecurity Policy Anti-corruption and Bribery Policy/Whistleblower Policy Ethical, Transparent and Accountable Policy Tax Policy & Governance Policy on responsibility and transparency when engaging in influencing public and regulatory Business Responsibility Policy POSH Policy

Environmental Management Policy Occupational Health and Safety Policy Equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016 Policy on promote inclusive growth and equitable development Policy to promote respect and well-being of employees and value chain partners Human Rights Policy

Policy respecting the interests of stakeholders
Policy on responsible engagement with consumers

Policy on provision of sustainable and safe provision of goods and services

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Equal Prevention of
Invention/Innovation
employment opportunity sexual harassment
Code of
Conduct Company
Insider trading
Policies and Records
Rules for gifts Conduct with
and entertainments customers and suppliers Conflict of Interest
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Sustainability Governance Framework

1 2 Corporate Business Leadership Team (CLT) Leadership Team (BLT)

Process Owners

The Process Owners are represented by heads of different functions such as, HR, Safety, Finance, Engineering, Production and Processes.

CLT is represented BLT is represented by Chairman & MD, by various heads of Jt. Managing Director functions, including respective business marketing, strategic CEO’s, CFO, CIO sourcing, HR, Finance, IT, and CHRO Operations and TQM

The CLT provides guidance The Business Leadership for making all the major Team implements and business decisions at the monitors sustainability Group level. It implements performance at strategies across the business levels organisation through the Business Leadership Team and Process Owners

Industry Associations

Compliances and

Regulations

SRF, a socially responsible corporate entity, strives to establish shared value for all stakeholders and promote industry growth and national development. The Company is affiliated with various industry and trade associations and actively engages in cross-industry forums to facilitate the exchange of best practices, advocate for industry concerns, and implement a variety of reforms and initiatives for the advancement of the industry and society.

SRF Limited implements a structured approach to supervise compliance-related matters. The Company utilises an internally developed tool called “Compliance Manager” to continuously monitor and update the status of each non-compliance. Additionally, a well-defined escalation matrix is in place to monitor noncompliance across all business units. SRF ensures timely and transparent disclosures in all reports and documents filed or submitted to comply with relevant legal provisions.

SRF Limited is a member of the following trade and industry chambers: Confederation of Indian Industry

Refrigerant Gases Manufacture Association

Indian Chemical Council

CHEMEXCIL

National Safety Council

MATERIALITY ASSESSMENT

Materiality assessment helps in identifying and prioritising key environmental, social and governance topics which influence the Company’s strategy, investments, business and have the capability to create value for stakeholders in the long run.

Our approach to materiality assessment

Identification of Shortlisted list of Business-wise Final list of material material issues across material topics consultation topics of SRF each business vertical

main businesses - Chemicals, stakeholder consultations. In FY23, Packaging Films and Technical SRF Limited revisited its material Textiles, following globally aspects to align itself with the recognised ESG frameworks, global ESG requirements. peer benchmarking and extensive

Given the dynamic ESG landscape and the new trends in the market, SRF Limited conducted a rigorous materiality assessment exercise in FY21 across all the three

The final list of material topics for SRF Limited

Environmental

Social

Governance

Energy Management • Employment
• GHG Emission Reduction • Occupational Health • Air Emissions and Safety • Water Conservation • Community Relations and Engagement
• Waste Management • Key Material Procurement and Management
Corporate Governance • Total Quality Management (TQM)
• Innovation & Research and Development
Centre for Chemical Process Safety

The Synthetic & Rayon Textiles Export Promotion Council Indian Technical Textile Association (ITTA) Association of Synthetic Fibre Industry Indian Society for Quality Quality Circle Forum of India British Safety Council

At SRF, we continue to measure the Company’s progress against identified material aspects and take necessary actions wherever necessary, to improve the overall business outcomes and value for stakeholders.

24 Annual Report 2022-23

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

BUILDING LONG-TERM RELATIONSHIP WITH STAKEHOLDERS

Our constant drive to safeguard the interests of stakeholders through robust engagement is instrumental in delivering value and sustainably enabling growth. We continuously engage with the stakeholders, including investors,

employees, suppliers, regulators, communities, customers, and others. This helps us in understanding their concerns and needs, seek feedback, and find ways to meet their expectations through modifications in business

strategy and plans. Our inclusive and transparent dialogue with stakeholders enhances the outlook towards the material issues and helps in identifying key improvement areas to mitigate evolving risks and challenges.

Inclusive Stakeholder Engagement Process

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

Identify

Identify internal and external stakeholders relevant to SRF. Identify and prioritise key issues critical to each of the identified stakeholder groups

Plan

Establish objectives and scope of the stakeholder engagement. Allocate time, resources and responsibilities. Design engagement strategy and modes of communication for each stakeholder

Engage & Consult

Engage with each stakeholder group through interviews, etc. Share contextual information with stakeholders and follow-up sessions for feedback on identified material issues

Monitor & Report

Ensure effective, timely documentation of consultation process and learning points. Report back to stakeholders on commitments and performance related to identified material issues. Ensure transparency in the stakeholder engagement

Key stakeholders of SRF Limited

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Employees Customers Regulatory Bodies
`
Local Communities Investors/Shareholders Suppliers
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FINANCIAL STATEMENTS

Stakeholder Engagement

We ensure continuous dialogue with all our stakeholders. We believe regular interaction with stakeholders helps in the growth and development of all groups involved. We have mapped below the expectations, modes of communication, key topics discussed, with the stakeholders identified.

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

FINANCIAL STATEMENTS

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RISK
MANAGEMENT
30 Annual Report 2022-23
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RISK MANAGEMENT

SRF Limited practices 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 to manage risks and transform risks into

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.

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 Management Process

Risk Identifcation		Risk Assessment	Risk Prioritisation		Risk Mitigation		Monitoring & Documentation

The Board of Directors has System and assists the Board the Risk Management Framework. established a dedicated Risk in framing, implementing, Further, Business Leadership Management Committee (RMC), monitoring, and revising the Team and Risk Owners, report which, inter alia, drives continuous Risk Management Policy. The risks and mitigation plans to efforts to identify various types Committee is competent to Corporate Leadership Team of risks including ESG Risks, identify, assess and manage both and subsequently to the Risk oversees the implementation of traditional and emerging business Management Committee the risk management measures risks. It ensures that stakeholder for review. We also have a and suggests future action plans, interests are protected, business robust framework of Control wherever required. objectives are met, and longSelf-Assessment (CSA) term growth is enabled. Risk which continuously verifies The Committee also aids the categorisation and prioritisation compliance with existing policies Audit Committee in analysing the is done on a high, medium, and and procedures. efficacy of the Risk Management low category basis as defined by

Enterprise-Level Risk Management Framework

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Corporate Leadership
Team
Risk Risk
Business Leadership
Management Board Management Team and Risk
Policy Committee Owners Across
all Businesses
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CORPORATE OVERVIEW

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FINANCIAL STATEMENTS

Key risks identified at SRF Mitigation strategies • Detailed policy guidelines to deal with key financial risks.
` • Robust processes & systems for ensuring timely reporting and compliance with applicable regulatory framework
Financial Risks • Optimum cash flows through continuous new product development and innovation
• Continuous monitoring of the changing regulations, impact assessment, implementation of statutory compliance, internal audit and external legal review (including ESG)
Regulatory Risks • Liaisoning with regulatory bodies and industry associations to bring systemic changes for the benefit of industries
• Implementation of safety and quality management systems, TQMdriven processes to eliminate operational risks and contribute to the Company’s strategy for sustained operational success
• Adoption and deployment of resource efficiency initiatives (across energy, water, etc.), ensuring reduction in loss time injuries
Operational Risks • Development and retention of a skilled workforce that contributes to organisational goals by offering opportunities for learning and development, and career growth
• Implementation of new perimeter security mechanisms such as dual firewalls, internet content filtering, mobile device management for users with critical data leak risk, etc.
• Training and awareness sessions on cybersecurity risks conducted
IT and Cyber- for those in possession of Company’s digital assets on regular basis Security Risks • Ensuring adequate update and maintenance of servers and network devices for added security and data protection
• Long-term strategic planning and regular management reviews Long-term strategic planning and regular management reviews with business teams, Audit Committees and Board meetings
• Strategic sourcing initiative ensuring uninterrupted supply of
Strategic Risks raw materials
Long-term strategic planning and regular management reviews Long-term strategic planning and regular management reviews with business teams, Audit Committees and Board meetings

Linkages with SDGs

We are a responsible business and our ESG practice defines the way we create and protect value for our stakeholders. We have integrated the Environmental, Social, and Governance (ESG) aspects throughout all our business operations to ensure that our processes, systems, procedures, and initiatives are all aligned with our Aspirations 2030.

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Our Aspirations 2030 SDGs impacted
Operational excellence
Professional reputation
and value system
Customer advocacy
Innovation and Technology
Leadership
Environment & Social
Responsibility
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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Strategy

At SRF Limited, sustainability is deeply ingrained in our corporate values and is reflected in all aspects of our business functions and strategies. We are committed to safeguarding natural resources, prioritising employee health and safety, promoting responsible governance, and ensuring the

of ethical and principled business practices. At SRF, our Aspirations provide us with a clear set of guidelines for pursuing our strategic focus areas in a sustainable manner, with the aim of creating shared value over the long run.

well-being of local communities. To chart our path forward, we align our strategic focus areas with our Aspirations, which serve as a roadmap for our future endeavours. Our long-term value creation for all stakeholders is achieved through the adoption

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Professional Reputation &
Value System
Operational
Customer
Excellence
Advocacy
Environment
Innovation
& Social
& Technology
Responsibility Our Aspirations
Leadership
2030
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Aspirations 2030

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Operational Excellence

Professional reputation and value system Customer advocacy

Innovation and Technology Leadership

Environment & Social Responsibility

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)
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-focussed, agile and lean organisation, becoming a trusted, long-term partner of choice with the customers through innovative offerings and strong customer relationships
The Company constantly focusses 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

Our Environment and Social Responsibility 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

Annual Report 2022-23 35

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Risks

Operational

` Financial

IT & Cyber-Security

Strategic

Regulatory

Material aspects

Energy Management GHG emission reduction Air emissions

Water conservation Waste Management Key material procurement and management

Employment Occupational health and safety Community relations and engagement

Total Quality Management (TQM) Innovation & Research and Development

Corporate Governance

Strategic focus areas

Focus on implementing cutting-edge technology and energy efficiency initiatives to achieve energy savings
Transition to cleaner energy sources to help reduce carbon emissions

• Drive efforts towards reducing water consumption with waterefficient technologies, recycling and reusing wastewater and sequestering 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 efforts on local sourcing of raw materials and increasing the use of recycled materials in production

Concerted efforts 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 efforts to empower local communities through community initiatives focussing on vocational skills, education, natural resource management, among others

• Emphasis on capitalising new opportunities, expand product portfolio considering the evolving customer expectations and enhancing market presence

Implement differentiated 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 and higher dividend pay-out
Implementation of Total Quality Management (TQM) for meeting evolving customer aspirations and shifting market dynamics by bringing systemic changes to maximise plant efficiency and deliver diverse solutions
Focus on creating an eco-system which promotes effective decisionmaking, accountability and financial 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 identification, assessment, monitoring and mitigation of risks to achieve business objectives
Focus on robust internal control system and proactive response strategy towards identified risks

Progress in FY23	Aspirations 2030
•Implemented energy efciency initiatives, leading to energy savings of 10,683 MWh •1,201 TJ of energy consumed from renewables and biomass •17.1 Lakh KL of water consumption met through recycled wastewater
•29 Lakh KL rainwater harvested	Operational
•Following 3R principle - recycled materials used as raw materials	Excellence
in production •Utilisation of onsite generation of fy ash as raw material in cement industries •71% raw material sourced sustainably •176,156 training manhours
•Increase in female workforce across the management levels by more than 16% compared to FY23 •More than 91% employee engagement score	Professional Reputation and Value System
•61% reduction in LTIFR •3.5 lakh+ benefciaries of CSR initiatives in local communities •24 no. of CSR projects
	Customer
•TQM led supply chain improvements, enhancement of internal process efciency and building a skilled workforce	Advocacy
•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 •18 process patents granted •Earnings per share`72.95	Innovation and
	Technology Leadership
•No fnes levied or non-compliance with respect to environmental and social aspects •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	Environment and
	Social Responsibility

36 Annual Report 2022-23

Annual Report 2022-23 37

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

VALUE CREATION MODEL

DRIVING BUSINESS WITH VALUES

RESOURCE CAPITAL INPUTS Total energy consumed: 12,912 TJ Water withdrawal – 5,359,141 KL Environment and Social Responsibility as one of our Aspirations 2030 400+ R&D experts `129.31 Cr. of R&D spend<br>Process Patents fled - 406<br>2 state-of-the-art R&D facilities<br>Innovative product solution<br>Our Workforce: 7,171<br>Training Hours: 176,156<br>Structured Learning & Development<br>`28.63 Cr. of CSR spends 24 CSR projects Operating Cost:`11,103 Cr.<br>Total Debt:`3,379.29 Cr. Capex: ₹ 2,815.78 Cr. Plant automation and backward integration of value chain Efcient production processes Financial Capital Manufactured Capital Intellectual Capital Human Capital Social Capital Natural Capital Economic Social Environmental	VALUE CREATION APPROACH Our values Respect Integrity Non-discrimination T E C H N I C A L T E X T I L E S B U S I N E S S P A C K A G I N G F I L M S B U S I N E S S S P E C I A L T Y C H E M I C A L S Diferentiated Business Strategy Corporate Governance Customer Centricity Stakeholder Engagement Operational Excellence Digitisation & Innovation KEY ENABLERS Our Aspirations 2030 Operational Excellence Professional Reputation and Value System Customer Advocacy Excellence Well-being Innovation and Technology Leadership Environment & Social Responsibility	OUTPUT LONG-TERM VALUE CREATION Net Debt-Equity: 0.33 Revenue:`14,870 Cr.<br>Earnings per share`72.95 Two interim dividends payouts Sales volume expansion Export to 86+ Countries SRF is the only fully Backward integrated manufacturer of ozone-friendly refrigerant gases No. of process patents granted during the year - 18 Total patents granted - 132 Commercialisation of new products Reafrmed CRISIL AA+ /Stable/ CRISIL A1+ ratings Sustainable cash fow and strong liquidity position aiding robust balance sheet position Strong Leadership position in key segments Diverse product portfolio with multi-location facilities designed to service large customers Efcient manufacturing process driven through TQM principles Optimum manufacturing capacity Robust product pipeline with continuous development Re-engineering of products in collaboration with customers Ability to handle complex chemistries with deep domain expertise Mitigating impact of climate change Reduction of environmental footprint Demonstrating responsible corporate citizenship Increase in RE mix Energy savings – 10,683 MWh 1,201 TJ of renewable energy consumed Increase in water recycled 8.30% Efcient use of natural resources and reduced consumption Biodiversity preservation Attraction & retention Safe working environment Productive workforce High employee engagement & satisfaction levels Upliftment of the society through community development projects Ensuring responsible business through respect for all stakeholders Robust supply chain 61% reduction in LTIFR Employee Engagement Survey Score – 91% Total number of benefciaries of CSR initiative – 3.5 lakh+ New suppliers added during the year Stakeholder recognition and satisfaction

Annual Report 2022-23

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Capital-wise Performance

This report showcases our performance across the Six Capitals of the Integrated Reporting framework: Financial Capital, Manufactured Capital, Intellectual Capital, Human Capital, Natural Capital, and Social & Relationship Capital. Achieving sustainability in business requires a clear understanding of the trade-offs between the different capitals to maximise positive outcomes while minimising or eliminating negative impacts. For us, striking a balance between these competing tendencies is an ongoing endeavour, and we strive to achieve it to the best of our ability.

The Six Capitals

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Manufactured Capital

Financial Capital

Sources include debt and Investments are focussed on equity financing and cash expansion, bringing efficiency generated by operations and upgrading existing and investments equipment and infrastructure

Funds are being invested in various CAPEX projects throughout the business

Intellectual Capital

Considerable investments focussed on ESG and innovation agenda for a competitive edge

Due assessment of the returns on investment against the extent to which it might aid business growth

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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

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Natural Capital

Social & Relationship Capital

Natural capital inputs such as raw materials, water, fuel Fundamental part stakeholders and renewable energy, etc., play in creating & sustaining an critical to operate efficiently enabling external environment for the business to flourish

Consideration of all relevant factors while making investment decisions

Annual Report 2022-23 41

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Material issues addressed

Corporate Governance

Innovation, Research & Development

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Inputs Outputs
Cr. Cr.
11,103 14,870
Operating Cost Revenue
Cr. Cr.
3,379.29 3,708
Net Debt EBIDTA
` 72.95
EPS
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FINANCIAL CAPITAL

SRF Limited believes in the long-term growth through balanced and cost-effective debt & equity mix deployed for sustaining and creating value across all capitals. We have a strong mechanism in place to monitor our cash flows and liquidity position, which enables us to identify opportunities for business growth and rationalise costs across all departments. We ensure that an appropriate level of capital for growth projects is allocated along with optimum liquidity for supporting and protecting our business operations under different economic scenarios.

Expansion Plans

SRF Limited has established internal policies for governing CAPEX proposals and investment rules, that promote sound capital allocation. Our consistent business growth coupled with strong market insights have paved the way for our expansion. This year we have incurred ~ ` 2,815.78 crore mainly in our Chemical Business for setting up new plants in the agrochemical, capacity enhancement of an existing plant and setting up a range of Specialty Fluoropolymers. These projects are a part of our overall expansion strategy in the Chemicals Business and achieve our future growth aspirations.

Performance

In FY23, we recorded a total turnover of 14,592 crore which is 17% more than the previous year owing to strong demand mainly from the chemical business. Our PAT increased by 14.5% to 2,162.34 crore in FY23. The Company’s EBIDTA increased by 17.8% from the previous year resulting in a strong Balance Sheet.

EBIDTA in ` Crore

Earnings per share

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3,708 72.95
3,146 63.75
2,188 40.57
FY21 FY22 FY23 FY21 FY22 FY23
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Annual Report 2022-23 43

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STATUTORY REPORTS

FINANCIAL STATEMENTS

Our objective is to provide a favourable long-term return on investment. Our EPS has been 72.95 and we disbursed two interim dividends of 3.6 per share each in the financial year.

Impact of financial capital on other capitals

Manufactured Capital: Facilitates expansions and augment existing capacities
Intellectual Capital: Induction of latest technologies, new product development across business

CRISIL Ratings has reaffirmed its ‘CRISIL AA+ /Stable/CRISIL A1+’ ratings on the bank facilities and debt instruments of SRF Limited. These ratings continue to reflect a strong business profile driven by market leadership, diversified revenue, high operating efficiency, and a healthy financial profile.

Human Capital: Investment in learning and development, attracting and retaining top talent
Natural Capital: Investment in clean energy, conservation of natural resources
Social & Relationship Capital: Local area development and employment

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MANUFACTURED CAPITAL

We have been strengthening our operations through a combination of process efficiency and expansion. Our strategies and plans of action are guided by our motto ––‘We always find a better way’ – which is reflected in the high-quality products that we deliver to our customers.

44 Annual Report 2022-23

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Material issues addressed

Innovation, Research & Development

Total Quality Management Employment

Occupational Health & Safety Key Material Procurement and Management

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Inputs
` Cr.
2,815.78
Capex
10
Manufacturing facilities
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Outputs Higher sales volume

86+ Countries we export to

Raw Material Efficiency

We employ cutting-edge facilities Guided by strong demand, we and highly effective production have been able to utilise optimum methods to manufacture capacity for the Chemical dependable and high-quality Business. However, Packaging goods. Through our extensive Films Business and Technical product range, we aim to provide a Textiles Business witnessed diverse range of superior products headwinds owing to the difficult with elements of sustainability and market situation. value accretive for our customers. We have attained economies Ensuring robust manufacturing, some of our initiatives are: of scale through backward integration in our chemical • Quality, Cost, Delivery & Safety business and remain steadfast • Quality Circles in our commitment to deliver • excellent products through our PSP Certification R&D efforts, which has earned us • Failure, Modes and Failure, Modes and enduring customer relationships. Affect Analysis

Our efforts are focussed on optimising the use of resources, including sustainable sourcing of raw materials. At SRF, we are committed to increasing the usage and proportion of recycled input materials in our manufacturing processes through product reengineering and innovation. In addition to reducing our environmental impact, this approach also minimises waste generated at the source by promoting the reuse of input materials.

Failure, Modes and Failure, Modes and Affect Analysis

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Record sales achieved for Dymel® HFA 134a/P, with an expanded geographical footprint across 20+ countries

SRF Limited continues to focus on creating a strong indigenous supply chain network for the procurement of locally sourced raw materials to promote local businesses and mitigate the associated environmental impact.

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Major raw material used in Chemicals Business
(in MT)
165898
123464
114003
92668
76765 84878
52422
31321
15509 [19723]
Fluorspar Liquid Methanol Sulphuric Ethylene
Chlorine Acid Dichloride
FY 2021-22 FY 2022-23
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Major raw material used in Packaging Films Business (in MT)

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110788
99929
75289
73993
57419
35245
29438
28832
PET chips PP Chips PTA MEG
FY 2021-22 FY 2022-23
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Major raw material used in Technical Textiles Business (in MT)

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40402
34644
13460 13786
Caprolactam Pet Chips
FY 2021-22 FY 2022-23
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Impact of manufactured capital on other capitals

Financial Capital: Revenue generation and higher turnover
Intellectual Capital: Asset optimisation and better operational efficiency
Human Capital: Digital ready and trained workforce, optimum productivity levels
Natural Capital: Efficient utilisation of natural resources utilised during production
Social & Relationship Capital: Collaborations for better solutions for the market

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Material issues addressed

Innovation, Research & Development

Inputs 42 Patents applied in FY23 ` 129.31 Cr. R&D spent

400+

Total Quality Management Employment

Outputs 18 Patents granted in FY23 Multiple New products launched

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R&D workforce

INTELLECTUAL CAPITAL

Innovation, research and development is an important part of our Chemicals Business. This is embedded as part of our Aspirations 2030 – i.e. under Innovation & Technology Leadership. In line with our aspirations, the ingenious team of scientists and engineers across our R&D centres in Bhiwadi and Gurugram work tirelessly to ensure our R&D investments and programs are directed towards the requirements of the market and the customers.

Chemicals Technology Group (CTG)

CTG at SRF is actively engaged in the development of new products and process technologies for the Specialty Chemicals and Fluorochemicals businesses. The Group’s key focus is the development of intermediates for new Active Ingredients (AI) in pharmaceuticals, agrochemical industries as well as new generation refrigerants. With a 400+ workforce, CTG serves as the catalyst in improving SRF’s capabilities of process development, scale-up, and commercialisation of new chemistries in our chosen areas of operation.

Collaborating with Customers

Our R&D team along with business development teams often collaborate with our customers for joint product and process development. These have proven to be successful models for customer-driven product development, further

enhancing a spirit of collaboration Continuous Efforts

and partnership between us and Towards Digitalisation our customers.

To propel enterprise New Product & Process transformation, the Company Development has invested in cutting-edge and • Chemicals Business: scalable digital platforms that Launch of products catering emphasise process digitisation, to Agrochemical and digital workflows, analytics, Pharma sectors automation, and cloud product • Packaging Films Business: suites. Consequently, strategic decision-making has been Multiple BOPET and BOPP expedited, and the Company’s products commercialised IT landscape is based on the during the year latest technology.

Technical

Textiles

Business: Developing valueadded products

Impact of Intellectual Capital on other capitals

Manufactured Capital: Efficient capacity utilisation, new product development across businesses
Financial Capital: Higher profits earned on account of new and better products
Human Capital: Specialised talent enhancing Company’s research & development capabilities
Natural Capital: Operational efficiencies leading to the lower input of natural resources
Social & Relationship Capital: Collaborations with customers on product reengineering

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Material issues addressed

Occupational Health & Safety

Inputs 7,171 Permanent employees

Skill development ~1.6 LAKH Training hours

Employment

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Outputs

61%

Reduction in LTIFR

16% Increase of women in management roles

SRF Limited is committed to creating a safe and healthy work environment that helps increase productivity and enhance employee happiness. Our people-centric policies, established by the human resource team, help us in ensuring and engaging a participatory workplace.

Our Values

HUMAN CAPITAL

SRF Limited acknowledges the significance of proficient and capable human resources in driving a company towards success. Human capital is both valuable and crucial for our business operations and 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. By offering an environment that supports professional growth, we aim to promote diversity and inclusivity within our organisation.

Respect Integrity NonWell-being Excellence We believe We stand by our Discrimination We believe that We use the SRF in building commitments We do not happy employees Management and nurturing and do not discriminate are key Way to pursue relationships compromise on on account to organisational excellence in all with all our our ethical and of gender, success that we do stakeholders, by moral standards caste, religion, treating them creed, region, with respect language, and dignity physical disabilities, etc.

Employee Engagement employee satisfaction levels Maintaining a high level of through an annual Employee Engagement Survey, which is employee engagement is the cornerstone of SRF’s human crucial in identifying critical areas for improvement, key issues or resource management philosophy. concerns, and recommendations The Company regularly organises for future action plans. According employee engagement activities to the survey, overall employee to foster strong relationships with engagement score was 91%. The its employees. SRF has adopted Company also conducts external a systematic approach to assess

surveys, such as the Gallup Survey and the eNPS, which offer anonymous feedback options to employees. Open houses and discussions with senior management are held regularly to gather feedback from employees, which helps in improving the employee’s overall well-being.

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FINANCIAL STATEMENTS

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

S. No.	Total employees by category	FY 2021-22	FY 2021-22	FY 2022-23	FY 2022-23
		Male	Female	Male	Female
1	Senior Management	67	3	70	4
2	Middle Management	194	17	200	19
3	Junior Management	652	89	663	104
4	Non-Management Staf	5,498	154	5,887	224
5	Temporary/Contractual Workers	7,068	360	6,666	289
6	Others	4	1	102	27

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philosophy, we offer on-the-job To keep pace with changing learning modules and training organisational needs and boost programmes to all employees, employee morale, we have providing them with opportunities established a well-managed to develop and enhance their skills Training and Development and competencies. process, which includes regular

Training and Development

SRF Limited firmly believes that the growth and development of its employees are directly linked to the growth of the organisation. In line with this

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At SRF, we believe in instilling a culture of safety in the workplace. We conduct regular safety and self-defence trainings, fitness classes, and employee assistance programmes as part of our wellbeing initiatives.

with new requirements imposed by the changing environment, our focus on development has shifted from being reactive to proactive.

training programmes and modules divided into three categories: Technical, Behavioural, and Functional. Our process identifies individual training needs and creates an annual training calendar for all employees, and we also offer customised training programmes to achieve the desired outcomes. Keeping pace

For the year ahead, we will add focus on building “Agility”, “Resilience”, and “Change Management” apart from the list of other core competencies.

S. No.	Total training hours for permanent and contractual employees	FY 2021-22	FY 2021-22	FY 2022-23	FY 2022-23
		Male	Female	Male	Female
1	Senior Management	1,619	112	312	1
2	Middle Management	22,286	537	3,682	158
3	Junior Management	39,669	4,309	24,368	2,012
4	Non-Management Staf	72,731	2,029	1,27,007	1,852
5	Temporary/ Contractual Workers	16,767	1,723	15,336	1,428

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a majority of our employees on their skill sets over a range of technical parameters including but not limited to the following:

Emergency response plan

Skill Evaluation System

Skill-specific competencies

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 weights. As a practice, we annually evaluate

Soft skills
Logical reasoning
Job-specific competencies
Aptitude
Environment, Health and Safety
Chemicals and Energy

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Principles, joining forces with support and encourage people 3,000 other organisations from diverse backgrounds. worldwide in partnership with UN Human Rights Women to drive gender equality. These principles emphasise the SRF Limited has a history of business case for corporate action safeguarding and preserving to promote gender equality and human rights, and opposes all women’s empowerment. SRF is an forms of discrimination and equal opportunity employer that human rights abuses. The places a premium on maintaining Company has a zero-tolerance a gender-balanced workforce. The approach towards human rights Company focusses on sensitising violations. Developing and all employees, especially leaders, maintaining an ethical culture to continuously challenge hidden that places the highest priority on biases and provide policies that human rights necessitates strong

Diversity and Inclusion

SRF Limited is actively working towards fostering an empowering environment that embraces diversity and inclusion. The Company is deeply committed to promoting a workplace that is free from any form of harassment or discrimination, basis factors such as gender identity, age, ethnicity, sexual orientation, disability, faith, or marital status. As part of this commitment, SRF has adopted the Women’s Empowerment

leadership commitment. SRF’s Human Rights Policy covers the following aspects:

Protection against forced and/or child labour
Providing equal opportunity
Commitment towards compliance and adherence to all applicable laws pertaining to human rights
Protection against sexual harassment in the workplace
Providing a healthy and safe work environment
Encourage the formation of various committees that have representation from the workforce and make suggestions on measures to improve working conditions in the Company
Committed to ensuring continuous upgradation of the skills and competence of employees
Well-being of employees
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 strictly adheres to the protection of human rights with its suppliers and contractors and does not employ individuals under the age of eighteen. The use of forced or compulsory labour is also prohibited across all units and discouraged with business associates and partners such as suppliers and contractors.

SRF provides a healthy work environment and offers equal growth opportunities to all its employees. The Company’s leave

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policy includes provisions for Detailed break-up of parental maternity and paternity leaves for leave entitlement and usage all employees. Equal opportunities of these by employees in the are provided to those who re-join last three years is after availing of parental leave. highlighted below:

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Parameter FY 2021-22 FY 2022-23
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	FY 2021-22	FY 2021-22

Number of employees entitled to parental leaves during the reporting period	6,674	7,171
Number of employees who took parental leaves during the reporting period	436	463
Number of employees who re-joined back after parental leaves during the reporting period	432	462

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are in line with a role’s market value. The Company maintains a high percentile position in the talent marketplace, particularly for critical roles and resources. All roles are evaluated using a reliable methodology, and grade structures are implemented every 2-3 years to remain aligned with the market.

Performance Management and Feedback

assessment reports and KPIs are created accordingly.

Performance development reviews and feedback are critical To maintain an open and transparent work culture, pillars that shape the growth managers are encouraged to use trajectory of employees in an 360-degree feedback mechanisms organisation. SRF Limited has to receive regular feedback adopted a robust performance and adjust their working style review and career development accordingly. SRF’s compensation system to sustain a fair and philosophy ensures the promotion transparent culture. All employees, of meritocracy and rewards that at all levels, are evaluated, and

Sr. No.	Number of employees that received a performance development and career review	FY 2021-22 Employee Performance Review	FY 2021-22 Employee Performance Review	FY 2022-23 Employee Performance Review	FY 2022-23 Employee Performance Review
		Male	Female	Male	Female
1	Senior Management	67	3	70	4
2	Middle Management	194	17	200	19
3	Junior Management	652	89	663	104

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Rewards and Recognition

SRF Limited has put in place a Rewards and Recognition program that is solely based on merit and serves to encourage and retain a diverse and talented workforce. The program offers various forms of recognition, including monetary and nonmonetary rewards, informal day-to-day acknowledgements, as well as semi-formal and nonmonetary recognition.

Semi-formal & Non-monetary

Formal Award

Happy Hours Appreciation Cards Work Anniversary Team Celebration

Special Achievement Awards Significant Contribution Award Protsahan Awards

Informal/Day to Day Award

Monetary Award

Significant Contribution Award Special Achievement Awards Long Service Award Spot Awards

Verbal and Written appreciation Team appreciation

Online Rewards and Recognition

With a view to place a higher focus on reward and significant contribution awards, birthday vouchers, recognition, SRF Limited has named its Rewards well done, thank you, and nice idea cards, along & Recognition policy - PRAISE. This policy offers with the annual “Protsahan” awards. In addition, several modes of recognition, both formal and local HRs organise in-person or group recognition informal, that are available to our managers who are events regularly to ensure that awardees receive empowered to recognise. Some of these avenues public appreciation. include spot awards, special achievement or

their feedback and suggestions, fostering an inclusive work culture throughout the organisation

procedures are clearly outlined and follow a fair and independent resolution process while maintaining confidentiality.

Grievance Redressal Mechanisms

SRF Limited acknowledges the importance of grievance redressal systems and leverages them to enhance stakeholder relationships and facilitate smooth business operations. The Company has established structured grievance procedures that enable effective policy implementation, safeguarding of human rights, and promoting sustainable practices. SRF provides multiple channels for employees to voice

For this purpose, ‘People Redbook Systems’ has been put in place at various locations. This grievancehandling systems serves as a platform for employees to voice their grievances. Employees and workers are provided with complaint and suggestion boxes in offices and plants where they can anonymously submit their grievances. The grievance

Labour Relations

SRF Limited believes in creating a culture of open communication to build a strong and healthy relationship with its workers. The Company has implemented rigorous systems such as SA 8000 across several plants, which monitor and ensure the well-

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being of workers and maintain a safe and productive work environment. Additionally, SRF has established various committees comprised of representatives from both management and workers, providing a platform for transparent communication. These committees include employee associations, canteen committees, health and safety committees, among others, and greatly contribute to the satisfaction and well-being of workers. Management recognises these associations and encourages interaction and issue resolution between management and employees. Currently, employee associations have around 11% of employees/workers as members.

Total Quality Management (TQM)

The SRF Limited’s way of management 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. The application of TQM practices cuts across the entire value chain of SRF’s businesses, from product conceptualisation, development,

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

Quality
`
Morale
Impact of Cost
TQM
Environment,
Health Delivery
& Safety
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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 flexibly adapt to evolving customer aspirations and shifting market dynamics, 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.

SRF Limited recognises the need to continually improve its processes to stay competitive in the market. The Company has adopted a structured approach to Kaizen implementation that involves identifying areas for improvement, analysing the root cause of the problem, implementing solutions, and monitoring and measuring the results.

Occupational Health and Safety

SRF Limited firmly believes that ensuring a safe and healthy working environment for its workforce is a fundamental aspect of conducting business. The Company takes responsibility for educating its employees on safety practices, training them to deal with adverse events, and preventing such incidents. This

is accomplished through regular safety training and mock drills. SRF aims for zero incidents of injury, fatality, or accidents across all its plants and manufacturing units. The Company handles, stores, and distributes its products in an environmentally conscious manner, deploying emergency response plans, safety procedures, and processes to create a healthy and safe workplace. EHS committees have been formed across plants to inculcate a safety-oriented culture across the organisation. This helps in proactively identifying and avoiding safety incidents, with systems in place to monitor and address issues at an early stage and take pre-emptive measures. SRF conducts health and safety training for the entire workforce, focussing on behavioural change at the shop floor level through continuous training, awareness programmes, and proactive identification of unsafe situations in the following areas: -

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

Safety training is being conducted in three different categories at different sites:

Employees – induction training, refresher training for topics like risk assessments, work permit system, emergency response,

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Don’ts, PPE management, emergency response, working at height, scaffolding, firefighting, etc.

PPE management, and BBS. Don’ts, PPE management, Special training like – defensive emergency response, working driving, HAZOP, process safety, at height, scaffolding, fireaccident investigation, safety fighting, etc. maturity, fire-fighting, first ● Others – visitor’s induction, aid, etc. truck/tanker/bus/forklift drivers’ ● Workers – induction training, training, etc. chemical handling, Do’s &

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Injuries FY 2021-22 FY 2022-23
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Injuries	FY 2021-22	FY 2022-23

Lost Time Injuries (per million man-hours worked)	0.41	0.16
First Aid Injuries (nos.)	133	180
Million man-hours worked	26.75	30.57

Impact of Human Capital on other capitals

Financial Capital: Higher earnings per employee ratio on account of better employee productivity, cost optimisation
Intellectual Capital: Retain the best talent to drive research and innovation at SRF
Natural Capital: Training and sensitisation of the workforce to ensure the best utilisation of natural resources in SRF
Manufactured Capital: Higher productivity, product, and process management
Social & Relationship Capital: Ensuring robust relations with all stakeholders

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Material issues addressed

NATURAL CAPITAL

Environment and Social Responsibility is one of our Aspirations for 2030. In line with our aspirations, SRF considers environmental stewardship a key responsibility, and we are constantly working towards reducing our ecological footprint. Our objective is to manage the impact of our operations by responsibly managing materials, energy, emissions, water, and waste.

Energy Management

Water Conservation

Inputs

TJ 12,912 of energy consumed

~46 LAKH KL of water consumed

Our approach to managing natural capital is based on our strategies for enhanced procurement of green energy, efficient utilisation of freshwater consumption, pollution control, and proper waste management.

SRF adheres to all relevant environmental regulations and conducts periodic assessment of environment, health and safety parameters across our various businesses to demonstrate our dedication to environmental protection. Our plants are ISO 14001 certified reinforcing the commitment as mentioned in the Company’s Environment, Health & Safety Policy.

Energy Management

Being cognisant of the risks associated with climate change and the heavy cost of global

GHG Emission Reduction Air Emissions Waste Management

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Outputs
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TJ 1,201 of green energy and biomass consumption

17 LAKH KL of water recycled

warming, we have initiated efforts towards transitioning to an energy efficient and clean energy future. We have been taking action to decarbonise our business by implementing various energy and emissions reduction initiatives and enhancing the use of renewable energy in our operations.

In FY23, our renewable energy and biomass consumption accounts for 1,201 TJ. We are driving efforts to increase the share of renewable power in our electricity mix by implementing solar power generation projects and entering into power purchase agreements with third-party agencies.

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Our total energy savings in FY 2022-23 are tabulated business-wise:

6,242MWh	954MWh	3,487MWh
Chemicals	Packaging Films	Technical Textiles

Refer to Principle 6, Essential Refer to Principle 6, Essential Indicator 1 for more details Indicator 5 for more details

Our plants are equipped with wastewater purification systems to ensure that the quality of wastewater released is within the permissible limits set by the respective Pollution Control Boards. In addition, the Company re-uses treated wastewater for humidification and the development of green-belt areas. The quality of the treated wastewater is monitored through third-party agencies before being discharged into garden areas.

GHG Emissions

Water Conservation

SRF’s Fluorochemicals Business is the first Indian chemical Company to obtain the ISO 14064-1: 2006 certification for verification of our greenhouse gas emissions. We have calculated our Greenhouse Gas (GHG) emissions, i.e., Scope 1 i.e. emissions from burning of fossil fuels by the Company, and Scope 2 i.e. emissions from purchased electricity emissions data in accordance with the GHG Protocol Corporate Accounting and Reporting Standard.

At our operations, we strive to continuously improve our efforts to minimise water consumption. This is achieved through the adoption of various water-efficient technologies, the recycling and reuse of treated wastewater in processes and the practice of rainwater harvesting. Additionally, we are in the process of implementing a seawater desalination project in partnership with local authorities which will further reduce our dependency on freshwater resources.

We have continued to focus on rainwater harvesting for groundwater recharge as well as utilisation within the plants.

Refer to Principle 6, Essential Indicator 6 for more details

Refer to Principle 6, Essential Indicator 3 for more details

Air Emissions

We recognise the significance of measuring and supervising the emission of air pollutants resulting from our activities. We not only adhere to the regulations set by the Pollution Control Boards in the states where we operate but our top priority is always to maintain the air quality within and around our facilities. We have established automated monitoring mechanisms to ensure that our air emissions are under control during the manufacturing processes, and we regularly conduct stack monitoring for utilities such as boilers and diesel generators.

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Waste Management

We are committed to responsible waste management and strive to integrate waste reduction, resource efficiency, and safe disposal practices into our business operations.

We collaborate with authorised vendors for the safe and responsible disposal of our waste, ensuring that all regulatory requirements are met. We maintain comprehensive records of waste generation, disposal, and treatment, and conduct regular internal audits to ensure compliance with waste management regulations.

Refer to Principle 6, Essential Indicator 8 for more details

Care for Biodiversity

As a responsible organisation, we recognise the importance of preserving biodiversity in the areas surrounding our business units and we are committed to taking measures to achieve this objective. We have implemented several initiatives, including collaborating with schools in and around our units as a part of our CSR programs.

We also recognise the importance of raising awareness about biodiversity conservation among our stakeholders. We engage with local communities, schools, and NGOs to promote environmental education and awareness. We encourage our employees to participate in biodiversity conservation activities, such as tree plantation drives and awareness campaigns.

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Impact of Natural Capital on other capitals

Financial Capital: Working towards sustainable and inclusive growth
I ntellectual Capital: Asset optimisation and operational efficiency
Human Capital: Safe work environment across
Manufactured Capital: Manufacturing of sustainable products
Social & Relationship Capital: Community acceptance and alignment with stakeholders’ objectives

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Material issues addressed

Community Relations and Engagement

Employment Water Conservation

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

Inputs
` 28.63 Cr.
spent in community projects regular
engagement with suppliers
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Outputs 3.5 Lakh+ CSR beneficiaries

71% raw material sourced sustainably

schools are transformed into model schools through our physical, digital, academic and leadership transformations thereby enhancing the learning experience of students and aiding in their holistic development.

SRF Foundation is working to bring a smile to the faces of some of the most vulnerable members of society through high-impact interventions in Education, Vocational Skills & Livelihood, Health, Environment and Art & Culture etc.

Education

Our initiatives around education are resolute in scope, extensive in reach, and yet mere small steps within the context of the needs of our country, given its size and diversity. Through our various education programs, in partnership with like-minded organisations, academia and the Government, we have reached twenty-four locations in twelve Indian States. Today, most of our intervention

We empower our employees to get involved in their local communities and coordinate volunteer activities at schools in the vicinity of our operation.

CSR Thrust Areas

SRF Foundation champions the cause of quality education in India. The core thrust areas of the foundation are listed below:

a) Promotion of Health Care
b) Promotion of Quality Education & Vocational Skills
c) Ensure

SOCIAL AND RELATIONSHIP CAPITAL

Environmental Sustainability
d) Promotion of Art and Culture
e) Promotion of Sports
f) Disaster Management

At SRF, we believe that it is essential for companies to have a purpose, more engaging than profits, and that purpose should be intrinsic to the fabric of the organisation. Building on this belief, SRF Foundation formerly known as the Society for Education and Welfare Development was set up in the year 1982 as the Corporate Social Responsibility (CSR) arm of SRF Limited.

PAHAL - Our Employee Volunteering Initiative

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I. Basic Electrician Training programme

Our education programmes are:

2020, which had a direct impact on 10,905 children from 308 Anganwadis across 7 locations.

Rural Education programme
II. Digital Literacy Mission
Anganwadi Development programme

Vocational Skills & Livelihood

III. Spoken English programme
Enhancing Early Education
IV. Livelihood Skills programme

In line with Government’s initiatives such as Skill India and V. Basic Computer Training programme Make in India, we are working towards evolving our youth as VI. Digital Skills training for ITIs employable and contributing and Polytechnics citizens. Through our partnership with other organisations in For FY23, we’ve reached around vocational skill development, we 14,279 lives including unemployed have expanded the scope of our youth, school dropouts and flagship programs to train morewomen from around 20 locations and-more people, especially pan India. school dropouts, unemployed youth, and women and integrate Environmental them into the mainstream Sustainability workforce by equipping them SRF Foundation’s projects in with appropriate skills to Natural Resource Management meet the demands of the supply (NRM) aim at the livelihood chain. Our programmes include:

The Shri Ram Schools
SRF Vidyalayas

Presently, we have reached 465 Government schools across 24 locations in 12 states directly and indirectly by collaborating with like-minded partners, providing quality education to over 1,78,702 students, and training 3,397 teachers and 465 headmasters.

Apart from school education, this year, the SRF Foundation initiated the ‘Anganwadi Development Program,’ aimed at improving the quality of Early Childhood Care and Education in line with the National Education Policy (NEP)

SRF Foundation’s projects in Natural Resource Management (NRM) aim at the livelihood promotion, ecological conservation and improvement

in the socio-economic condition of poor and marginalised families living in the thirty-five villages of the Tijara Block of Alwar district in Rajasthan. The scope of the project includes rainwater harvesting, wasteland restoration, large scale plantation, agricultural intervention, livestock promotion, micro enterprise development, and community mobilisation through women self-help and user groups. SRF Foundation collaborated with the Society for Promotion and Conservation of Environment (SPACE).

The project also recharged 2,832,510 kilolitres of groundwater, greatly improving water availability for irrigation. Another achievement involved levelling 1,750 hectares of wastelands, enabling farmers to engage in wheat and mustard cultivation, doubling their income.

In FY23, this programme directly medical services to remote and benefited over 5,249 families and difficult areas. A Primary Health indirectly supported 1,705 more Centre in Nalcha (M.P.) has also from 35 villages in the Tijara block been adopted by the Foundation, surrounding the SRF Bhiwadi ensuring that the marginalised plant. This region receives populations have access to highbelow-normal rainfall, but our quality medical treatment. These programme has helped maintain initiatives have positively impacted 206 earthen dams, ensuring their 35,000 lives in 2 locations Nalcha proper utilisation and providing (Madhya Pradesh) and Bharuch sustainable benefits. (Gujarat).

Art & Culture

Promotion of Healthcare

SRF Foundation organises SRF Foundation is promoting art preventative health check-ups & culture through SRF Virasat for a variety of illnesses, such as association with SPIC MACAY eye and orthopaedic conditions, and SMARAN aimed at promoting heart and lung conditions etc. Indian classical music, dance, The Foundation has also started and culture across pan India. two powerful health initiatives Through these programmes, to enhance wellbeing in remote we have nurtured artistic locations. The first is the Swasthya expression, preserved cultural Sewa project, which runs a Mobile heritage, and fostered creativity Health Van and offers crucial among the younger generation. SRF Virasat has successfully conducted 325 programmes across India in the years 2022 and 2023. Uttarakhand witnessed 88 shows, while Madhya Pradesh hosted 95. Notably, Delhi, Gujarat, Chennai, and Assam organised 69, 49, 17, and 7 shows, respectively, where over 200 talented artists showcased various art forms.

With the active participation of over 3 lakh students, 1,000 dedicated volunteers, 200 accomplished artists, 6,000 experienced faculty members, 1,000 support staff, and 500 skilled accompanists, SRF Virasat has made a profound and positive impact on the lives of countless individuals.

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Customer relationship

SRF Limited recognises that strong customer relationships are built on trust and transparency. We are committed to open and honest communication with our customers regarding their needs, preferences. SRF Limited also encourages customer feedback and actively seeks out opportunities to improve its products and services based on customer input. We conduct periodic customer satisfaction surveys and implement corrective measures to resolve the matter in the best possible manner and provide exceptional customer service.

Product Labelling

To maintain transparency in terms of information disclosure, SRF ensures that all important and relevant information about the product is disclosed on the labels. This includes instructions

pertaining to usage of the product, products that are sustainable, product grade, dimensions, gross affordable, and accessible to all. weight, and any other applicable SRF has been consciously pursuing regulatory requirements. Other the development of sustainable details such as material factsheet, products by investing in design safety instructions, Zero ODS, thinking, disruptive innovation, information related to the handling and new technology deployment. of product, hazard class (for hazardous materials), or any other We have a proven track record special information requested by of showcasing our in-house the customer is also disclosed in technological capability in the the labels. wherein

We have a proven track record of showcasing our in-house technological capability in the fluorochemical space wherein we could successfully transition from CFCs to HCFC and then later to HFC which has enabled the customers to adopt lower GWP potential refrigerant gas products. The integrated facilities and our R&D capabilities provide us great confidence in meeting future challenges and fulfill customer requirements.

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

Sustainable Product The R&D team of the chemical Offerings business continues to be the torchbearer in the specialty We believe that the key to building chemical space, wherein we have a sustainable business is to offer been able to successfully launch various new generation products. In our specialty business while we started with fluorine chemistry but over the years we have acquired deep expertise in various areas and command leadership position in certain chemistries and the ability to manage complex custom synthesis and other Contract development and manufacturing operations (CDMO). To maintain this enviable position, we have invested substantially in people, equipment, and capital; in turn, creating an environment of agile process development and rapid project implementation for Specialty Chemicals.

where we plan to integrate customer and supplier portals in key segments to gain better control over crucial supply chain metrics. In some of our segments to procure critical raw materials we have established long-term contracts with vendors, which include formula-driven price discovery agreements and automated indenting to ensure continuous supply.

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The organisation strongly upholds the idea of promoting its supply chain with elevated norms of health, safety, human rights, business ethics, and environmental preservation, among other criteria. This approach not only creates benefits for the company and stakeholders but also helps in reducing the potential risks associated with its complex supply chain.

Packaging films and Technical Textiles business continues to show strong resilience against a tough business environment. In the current year these businesses worked on their significantly cost structures optimisation, and offered various innovative products and solutions to their customers. For instance; Lowmicron Packaging Films offer a low carbon footprint with sustained quality parameters; NTCF / Belting fabric products are offered in multiple substrates.

relationships with suppliers and other business partners to ensure uninterrupted operations and business continuity.

SRF’s focus on sustainable sourcing is reflected in its emphasis on local procurement of raw materials, wherever feasible.

SRF has implemented digital solutions and automated processes through Business Process Management platforms

Impact of Social & Relationship Capital on other capitals

Financial Capital: Sustained financial growth
Intellectual Capital: Incorporating feedback leading to better product offerings

Sustainable Supply Chain

Human Capital: Skill development and awareness initiatives for the workforce

We believe in nurturing longterm relationships with our suppliers and business partners by building trust and transparency in procurement-related processes and decisions. SRF procures all the key raw materials from reliable and sustainable sources by establishing strong

Manufactured Capital: Robust supply of raw materials
Natural Capital: Contribution towards environment conservation, 3R principles

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT

SECTION A: GENERAL DISCLOSURES

I. Details of the entity
1 Corporate Identity Number (CIN) of the Listed L18101DL1970PLC005197 Entity
2 Name of the Listed Entity SRF Limited 3 Year of incorporation 1970 4 Registered office 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
5 Corporate address Block - C, Sector - 45, Gurugram, Haryana, India - 122 003
6 E-mail [email protected] 7 Telephone 91-124-4354400 8 Website www.srf.com 9 Financial year for which reporting is being done 1 April 2022 to 31 March 2023 10 Name of the Stock Exchange(s) where shares 1. BSE Limited are listed 2. The National Stock Exchange of India Limited
11 Paid-up Capital ` 296.42 Crore 12 Name and contact details (telephone, email Rajat Lakhanpal address) of the person who may be contacted Sr. Vice President (Corporate Compliance) & in case of any queries on the BRSR report Company Secretary Email - [email protected] Contact - 0124-4354589
13 Reporting boundary - Are the disclosures Disclosures under this report are made on under this report made on a standalone basis standalone basis for SRF Limited (i.e. only for the entity) or on a consolidated basis (i.e. for the entity and all the entities which form a part of its consolidated financial statements, taken together):

II. Products/services

14. Details of business activities (accounting for 90% of the turnover):

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S. Description of Description of Business Activity % of Turnover
No. Main Activity of the entity
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1	Chemicals	Chemicals Business consists of two segments, namely	60.68
	Business	Specialty Chemicals and Fluorochemicals located in Dahej,
		Gujarat and Bhiwadi, Haryana respectively
2	Packaging Films	Packaging Films Business (PFB) consists of Polyester Films.	20.41
	Business	PFB manufacturing locations are based in Indore (3), Madhya
		Pradesh and Kashipur, Uttarakhand. Additionally, there are
		three overseas plants in Thailand, South Africa, and Hungary
3	Technical Textiles	Technical Textiles Business (TTB) consists of manufacturing of	15.66
	Business	Tyre Cord Fabrics, Belting Fabrics and Industrial Yarn. TTB has
		manufacturing locations in Manali, Gummidipoondi and
		Viralimalai in Tamil Nadu and Malanpur in Madhya Pradesh
4	Other Businesses	Coated and Laminated Fabric Businesses located at	3.25
		Gummidipoondi,Tamil Nadu and Kashipur,Uttarakhand

Based on segment revenue

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15. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):

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S. Product/Service NIC % of total Turnover
No. Code contributed
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1.	Specialty Chemicals	2029	35.28
2.	Fluorochemicals, Refrigerant Gases and allied products	2011	21.66
3.	Packaging Films	2220	20.35
4.	Nylon Tyre Cord Fabric / Polyester Tyre Cord Fabric / Belting Fabric	1399	13.81
5	Industrial Chemicals	2011	3.64
6.	Laminated Fabric, Coated Fabric and other ancilliary activities	1399	3.28
7.	Synthetic Filament Yarn includingIndustrial Yarn/Twine	2220	1.98

*Excluding other operating income

III. Operations

16. Number of locations where plants and/or operations/offices of the entity are situated:

Location	Number ofplants	Number of ofces	Total
National	10	7	17
International	0	0	0

17. Markets served by the entity:

a. Number of locations

Locations Value(in numbers)	Locations Value(in numbers)
National (No. of States)	30
International(No. of Countries)	86

b. Differently abled Employees and workers (FY 2022-23):

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S. Particulars Total (A) Male Female
No. No. (B) % (B / A) No. (C) % (C / A)
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			Employees
1.	Permanent (D)	3		2	67	1	33
2.	Other than Permanent (E)	-		-	-	-	-
3.	Total diferently abled	3		2	67	1	33
	employees(D + E)
			Workers
4.	Permanent (F)	14		14	100	0	0
5.	Other than permanent (G)	5		5	100	0	0
6.	Total diferently abled	19		19	100	0	0
	workers(F + G)

19. Participation/Inclusion/Representation of women

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Particulars Total (A) Number and Percentage of Females
No. (B) % (B / A)
Board of Directors 10 1 10
Key Management Personnel 8 0 0
20. Turnover rate for permanent employees and workers
Particulars FY 2022-23 FY 2021-22 FY 2020-21
(Turnover rate in %) (Turnover rate in %) (Turnover rate in %)
Male Female Total Male Female Total Male Female Total
Permanent Employees 13 18 13 10 18 11 7 6 7
Permanent Workers 7 10 7 5 21 5 7 18 7
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20. Turnover rate for permanent employees and workers

b. What is the contribution of exports as a percentage of the total turnover of the entity?
The contribution of exports as a percentage of total turnover of SRF Limited on standalone basis is 51.03%.

A brief on types of customers:

c.

The Company’s customers base consists of organisations under automotive, pharmaceuticals, air conditioning and refrigeration, manufacturing, chemicals, food & agro, renewable energy, lifestyle & decor, agrochemicals, mining and FMCG.

IV. Employees

18. Details as at the end of Financial Year (FY 2022-23):

a. Employees and workers (including differently abled):

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S. Particulars Total (A) Male Female
No. No. (B) % (B / A) No. (C) % (C / A)
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			Employees
1.	Permanent (D)	3276	3049	93	227	7
2.	Other than Permanent (E)	-	-	-	-	-
3.	Total employees(D + E)	3276	3049	93	227	7
			Workers
4.	Permanent (F)	3895	3771	97	124	3
5.	Other than Permanent (G)	7084	6768	96	316	4
6.	Total workers(F + G)	10979	10539	96	440	4

V. Holding, Subsidiary and Associate Companies (including joint ventures)

21. (a) Names of holding / subsidiary / associate companies / joint ventures

S. No.	Name of the holding / subsidiary / associate companies / joint ventures (A)	Indicate whether holding/ Subsidiary/ Associate/ Joint Venture	% of shares held by listed entity	Does the entity indicated at column A, participate in the Business Responsibility initiatives of the listed entity? (Yes/No)
1	KAMA Holdings Limited	Holding	50.48	Yes
2	SRF Holiday Home Limited	Subsidiary	100	No
3	SRF Global BV	Subsidiary	100	No
4	SRF Industries (Thailand) Limited	Subsidiary	100	No
5	SRF Industex Belting (Pty) Limited	Subsidiary	100	No
6	SRF Flexipak (South Africa) (Pty)	Subsidiary	100	No
	Limited
7	SRF Europe Kft	Subsidiary	100	No
8	SRF Employees Welfare Trust	Subsidiary	100	No
	(Controlled Trust) *
9	SRF Altech Limited	Subsidiary	100	No
10	Malanpur Captive Power Ltd.	Associate	22.60	No
11	Vaayu Renewable Energy (Tapti)	Associate	26.32	No
	Private Limited

as per the requirements of INDAS

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FINANCIAL STATEMENTS

VI. CSR Details

i. Whether CSR is applicable as per section 135 of Companies Act, 2013: (Yes/No): Yes
ii. Turnover (in ` ) (FY 2022-23): INR 12,074 Crores
iii. Net worth (in ` ) (FY 2022-23): INR 9,109 Crores

VII. Transparency and Disclosures Compliances

23. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct:

Stakeholder	Grievance Redressal		FY 2022-23			FY 2021-22
group from whom complaint is received	Mechanism in Place (Yes/No) (If Yes, then provide web-link for grievance redress policy)	Number of complaints fled during the year	Number of complaints pending resolution at close of the year	Remarks	Number of complaints fled during the year	Number of complaints pending resolution at close of the year	Remarks
Communities	Yes	0	0		0	0
Investors	Yes	0	0		0	0
Shareholders	Yes	304	0		394	0
Employees and workers	Yes	3	0	None	3	0	None
Customers	Yes	440	56		545	32
Value Chain	Yes	0	0		0	0
Partners

24. Overview of the entity’s material responsible business conduct issues

Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the risk along-with its financial implications, as per the following format.

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S. Material Indicate Rationale for identifying In case of risk, Approach to Financial
No. Issue whether the risk / opportunity adapt or mitigate implications of the
identified risk or risk or opportunity
opportunity (Indicate Positive
(R/O) or negative
implications)
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1	Energy	Opportunity	Optimising energy installations	-	Positive
	Management		in our manufacturing locations
			and ofces adds to our efort
			of reducing Company’s GHG
			emissions
2	GHG emission	Opportunity	Undertake GHG emissions	-	Positive
	reduction		reduction initiatives through
			use of fuel from renewable
			sources, increased use of
			electricity from renewable
			sources and implement energy
			efcient measures
3	Air emissions	Risk	Emission beyond prescribed	Ensure monitoring of all sources	Negative
			limits by the respective State	of air pollutants in Company’s
			Pollution Control Board (SPCB)	manufacturing locations.
			may attract fnes and penalties	Undertake measures to reduce
				SOx,NOx and PM emissions

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4	Water	Opportunity	Reuse, recycling and	-		Positive
	conservation		rainwater harvesting lowers
			water withdrawals leading to
			increased availability of water
			resource
5	Waste Management	Risk	Inefcient waste management practices may pose a risk to	Our waste management strategy focuses efcient management of		Negative
			environment	waste based on 3R principle –
				Reduce, Reuse and Recycle and
				promotes circular economy
6	Key material	Risk	Non-adherence to ESG	Engage in frequent dialogue		Negative
	procurement		Practices and EHS compliances	with raw material suppliers
	and		in organisations providing raw	for implementation of EHS
	management		material may lead to supply	Governance and ESG Practices
			chain disruptions
7	Employment	Opportunity	Ensuring we remain as the	-		Positive
			“go to Company” for emerging
			talent.
8	Occupational	Risk	Occupational health & safety	Company continues	to	Negative
	Health and		risks due to the nature of	implement robust and efective
	Safety		operations of the Company	occupational health and safety
9	Community	Opportunity	CSR activities helps empower	management systems and minimise Industrial accidents -		Positive
	relations and		communities and generates
	engagement		employment leading to
			development of people and
			the region
10	Corporate	Opportunity	Code of Conduct of the			Positive
	Governance		Company enshrines the
	Practices		principles by which the
			Company and its employees
			are guided.
11	Total Quality	Opportunity	Implementation of TQM	-		Positive
	Management		ensures meeting evolving
	(TQM)		customer aspirations and
			shifting market dynamics by
			bringing systemic changes to
			maximise operational efciency
12	Innovation &	Opportunity	Enhance resource efciency	-		Positive
	Research and		and continuous development
	Development		of newproducts for the market

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SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting the NGRBC Principles and Core Elements.

Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9 1. a. Whether your entity’s policy/policies cover Yes Yes Yes Yes Yes Yes Yes Yes Yes each principle and its core elements of the NGRBCs. (Yes/No)
b. Has the policy been approved by the Yes No Yes No Yes Yes No Yes No Board? (Yes/No)

c. Web Link of the Policies, if available

Whether the entity has translated the policy Yes Yes Yes Yes Yes Yes Yes Yes Yes into procedures. (Yes / No)
Do the enlisted policies extend to your value No No No No No No No No No chain partners? (Yes/No)
Name of the national and international ISO 14001, OHSAS 18001, SA8000, ISO 9001, ISO 45001 codes/ certifications/labels/ standards (e.g. Forest Stewardship Council, Fairtrade, Rainforest Alliance, Trusts) standards (e.g. SA 8000, OHSAS, ISO, BIS) adopted by your entity and mapped to each principle.
Specific commitments, goals and targets set by Our values – Respect, Integrity, Non-discrimination, Excellence & the entity with defined timelines, if any. Wellbeing– ensure our commitment towards sustainability across our plants and offices. In line with our identified material topics, we have taken the following targets and commitments:
30% electricity sourced from RE by 2030
Improvement in water credit to debit ratio
Moving towards an Injury Free Workplace
Enhanced women participation across organisation
Performance of the entity against the specific We have set up an internal mechanism to regularly track our targets commitments, goals and targets along-with and commitments as mentioned in (5). Yearly performance of identified reasons in case the same are not met. targets and commitments will be updated as part of our ESG disclosures
Statement by director responsible for the Our Environment and Social Responsibility will focus on four main business responsibility report, highlighting ESG aspects: related challenges, targets and achievements i. We will benefit the communities where we work. (listed entity has flexibility regarding the ii. We will embrace diversity, equality and inclusion in our workforce. placement of this disclosure): iii. We will enhance our focus on the 3R’s- Recycle, Reuse and Reduce. iv. We will transition from traditional energy to renewable energy in the future (Refer to point no 5 for targets)

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Subject for Review Indicate whether review was Frequency (Annually/ Half
undertaken by Director / Committee of yearlyQuarterly/
the Board/Any other Committee Any other – please specify)
P1 P2 P3 P4 P5 P6 P7 P8 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9
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10 Details of Review of NGRBCs by the Company:

Performance against Yes Yes Yes Yes Yes Yes Yes Yes Yes A A A A A A A A A above policies and follow up action Compliance with statutory Yes Yes Yes Yes Yes Yes Yes Yes Yes A A A A A A A A A requirements of relevance to the principles, and, rectification of any non-compliances

	requirements of relevance to the principles, and, rectification of any non-compliances
11.	Has the entity carried out	P1	P2	P3	P4	P5	P6	P7	P 8	P9
	independent assessment/
	evaluation of the	No external	assessment	was	conducted,	However The Company		conducts	periodic	review of
	working of its policies	the policies	internally.
	by an external agency?
	(Yes/No). If yes, provide
	name of the agency.

If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated:

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Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
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The entity does not consider the Principles material to its business (Yes/No) The entity is not at a stage where it is in a position to formulate and implement the policies on specified principles (Yes/No) The entity does not have the financial or/human and technical resources available for the task (Yes/No) It is planned to be done in the next financial year (Yes/No) Any other reason (please specify)

Details of the highest authority responsible for We are guided by the Board of Directors comprising of industry experts implementation and oversight of the Business having diverse and rich experiences which enable and facilitate effective Responsibility policy (ies). decision-making and execution of sustainable and long-term strategies. The Board reviews key ESG imperatives and ensure ESG performance is aligned to our aspirations
Does the entity have a specified Committee The Board periodically monitor the financial, environmental, and of the Board/ Director responsible for decision social performance of the Company while addressing key risks and making on sustainability related issues? (Yes / opportunities. The Company also has a Risk Management Committee No). If yes, provide details. which reviews entity wide risks including ESG risks.

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SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE

This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core Elements with key processes and decisions. The information sought is categorized as “Essential” and “Leadership”. While the essential indicators are expected to be disclosed by every entity that is mandated to file this report, the leadership indicators may be voluntarily disclosed by entities which aspire to progress to a higher level in their quest to be socially, environmentally and ethically responsible.

PRINCIPLE 1: Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and Accountable.

Essential Indicators

1. Percentage coverage by training and awareness programmes on any of the principles during the financial year:

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Segment Total number Topics /principles covered under the %age of persons in
of training and training and its impact respective category
awareness covered by the awareness
programmes held programmes
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Board of	4	Familiarisation of business environment	100
Directors		and related risk, Changes in regulatory
		framework, TQM, ESG, OHS, etc
Key Managerial	5	Information Security, Familiarisation of	68
Personnel		business environment and related risk,
		Changes in regulatory framework, TQM,
		ESG, OHS, etc.
Employees	2041	Various trainings pertaining to health,	81
other than BoD		safety, behavioural, skill upgradation,
and KMPs		management, operations, etc.
Workers	2203	Various trainings pertaining to health,	84
		safety, behavioural, skill upgradation,
		management,operations,etc.

2. Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the financial year, in the following format

(Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):

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Monetary
NGRBC Name of the Amount Brief of the Has an appeal
Principle regulatory/ (In INR) Case been preferred?
enforcement agencies/ (Yes/No)
judicial institutions
Penalty/ Fine
Penalty/ Fine
Nil
Settlement
Compounding fee
Monetary
NGRBC Name of the Amount Brief of the Has an appeal
Principle regulatory/ (In INR) Case been preferred?
enforcement agencies/ (Yes/No)
judicial institutions
Imprisonment
Nil
Punishment
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3. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or non-monetary action has been appealed.

	Case Details Name of the regulatory/ enforcement agencies/ judicial institutions
	Not applicable

4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a web-link to the policy.

We adhere to the Code of Conduct & Ethics and Whistle Blower Policy which reflects the commitments regarding ethical conduct, anti-corruption and to maintain highest level of integrity. We have also established a vigil mechanism for our directors and employees to report any concerns about unethical behaviour, actual or suspected fraud or violation of the company’s code of conduct.

5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement agency for the charges of bribery/ corruption:

	FY 2022-23	FY 2021-22
Directors
KMPs	Nil	Nil

Directors KMPs Employees Workers

6. Details of complaints with regard to conflict of interest:

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FY 2022-23 FY 2021-22
Number Remarks Number Remarks
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Number of complaints received
in relation to issues of Confict of
Interest of the Directors Number of complaints received in relation to issues of Confict of Interest of the KMPs	Nil	Nil

7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by regulators/ law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest.

No fines/penalties were imposed by regulators/ law enforcement agencies/ judicial institutions, on account of bribery/corruption and conflict of interest.

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PRINCIPLE 2: Businesses should provide goods and services in a manner that is sustainable and safe

Essential Indicators

1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and processes to total R&D and capex investments made by the entity, respectively.

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FY 2022-23 FY 2021-22 Details of improvements in
Environmental and social impacts
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R&D			While the Company makes signifcant investments in
	-	-	development of new sustainable and green technologies,
			however we have not measured the impact specifcally.
Capex	3.45%	7.10%	Project for solar energy, reduction of emissions and environmental impact, Employee health and safety.

2. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No)

SRF is committed towards sustainably sourcing our raw material. We constantly work towards nurturing sustainable relationships with our supply chain partners by building trust, fair treatment, and transparency in all procurement-related decisions. SRF also undertakes the ‘Supplier Quality System’ assessment wherever possible by evaluating them on various parameters like resource management, compliance with environmental requirements & certifications, storage etc

b. If yes, what percentage of inputs were sourced sustainably?

71% (including procurement of capital goods)

3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.

a) Plastics- We have established our capability to recycle non-usable metallised film by unique demetallisation process. This process has resulted in reduced input of virgin raw material.

4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If not, provide steps taken to address the same.

No

PRINCIPLE 3: Businesses should respect and promote the well-being of all employees, including those in their value chains

Essential Indicators

1. a. Details of measures for the well-being of employees:

Category	Total (A)	% of employees covered by
		Health insurance Accident insurance Maternity benefts Paternity Benefts Day Care facilities
		Number (B) % (B /A) Number (C) % (C / A) Number (D) % (D / A) Number (E) % (E /A) Number (F) % (F / A)
		Permanent employees
Male Female Total	3049 227 3276	3049 100 3049 100 0 0 3049 100 3049 100 227 100 227 100 227 100 0 0 227 100 3276 100 3276 100 227 100 3049 100 3276 100
		Other than Permanent employees
Male Female Total	- - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

b. Details of measures for the well-being of workers:

Category	Total (A)	% of workers covered by
		Health insurance Accident insurance Maternity benefts Paternity Benefts Day Care facilities
		Number (B) % (B /A) Number (C) % (C / A) Number (D) % (D / A) Number (E) % (E /A) Number (F) % (F / A)
		Permanent workers
Male Female Total	3771 124 3895	3771 100 3771 100 0 0 3771 100 3771 100 124 100 124 100 124 100 0 0 124 100 3895 100 3895 100 124 100 3771 100 3895 100
		Other than Permanent workers
Male Female Total	6768 316 7084	6768 100 6768 100 0 0 6768 100 6768 100 316 100 316 100 316 100 0 0 316 100 7084 100 7084 100 316 100 6768 100 7084 100

2. Details of retirement benefits, for Current FY and Previous Financial Year.

Benefts	FY 2022-23 FY 2021-22
	No. of employees covered as a % of total employees No. of workers covered as a % of total workers Deducted and deposited with the authority (Y/N/N.A.) No. of employees covered as a % of total employees No. of workers covered as a % of total workers Deducted and deposited with the authority (Y/N/N.A.)
PF Gratuity ESI	100 91 Y 100 92 Y 100 91 N.A. 100 92 N.A. 2 6 Y 2 11 Y

Benefts

FY 2022-23
FY 2021-22

No.
of employees
covered as
a % of total
employees
No.
of workers
covered as
a % of total
workers
Deducted and
deposited
with the
authority
(Y/N/N.A.)
No.
of employees
covered as
a % of total
employees
No.
of workers
covered as
a % of total
workers
Deducted and
deposited
with the
authority
(Y/N/N.A.)

PF
Gratuity
ESI

100
91
Y
100
92
Y
100
91
N.A.
100
92
N.A.
2
6
Y
2
11
Y

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3. Accessibility of workplaces

Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard.

At SRF, we believe in safe and integrated working environment for all individuals. Our premises are equipped with lifts, ramps with adequate slopes, proper seating plan to enable easy movement and comfortable seating arrangement for differently abled persons.

4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a web-link to the policy.

We have Human Rights policy and code of conduct which reflects equal opportunity for all. We ensure that there is no discrimination in employment or developmental opportunities based on religion, caste, language, region, gender (male, female or transgender), age, sex, sexual orientation, physical abilities, etc. For more details, refer section on Human Rights. https://www.srf.com/wp-content/uploads/2022/01/SRF-HumanRights-Policy.pdf

5. Return to work and Retention rates of permanent employees and workers that took parental leave.

	Permanent employees	Permanent employees	Permanent workers	Permanent workers
Gender	Return to work rate	Retention rate	Return to work rate	Retention rate
Male	100%	87%	100%	95%
Female	100%	89%	100%	100%
Total	100%	88%	100%	95%

6. Is there a mechanism available to receive and redress grievances for the following categories of employees and worker? If yes, give details of the mechanism in brief.

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Gender Yes/No (If Yes, then give details of the mechanism in brief)
Permanent Workers Yes
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Other than Permanent Workers	Yes
Permanent Employees	Yes
Other than Permanent Employees	Yes

Yes, our company has Grievance Redressal Mechanisms for all employees and workers. The Company has put in place a ‘People Redbook Systems’ 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 which is conducted in a fair and independent manner while respecting confidentiality.

7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:

		FY 2022-23			FY 2021-22
	Total employees / workers in respective category (A)	No. of employees / workers in respective category, who are part of association(s) or Union(B)	% (B/A)	Total employees / workers in respective category (C)	No. of employees / workers in respective category, who are part of association(s) or Union(D)	% (D/C)
Total Permanent Employees	3276	85	3	2976	395	13
Male	3049	81	3	2782	395	14
Female	227	4	2	194	0	0
Total Permanent Workers	3895	986	25	3698	1314	36
Male	3771	957	25	3629	1264	35
Female	124	29	23	69	50	72

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 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.

8. Details of training given to employees and workers:

Category		FY 2022-23 FY 2021-22	FY 2022-23 FY 2021-22
	Total (A)	On Health and safety measures On Skill upgradation Total (D) On Health and safety measures On Skill upgradation No. (B) % (B / A) No. (C) % (C / A) No. (E) % (E / D) No. (F) % (F / D)
			No. (E) % (E / D) No. (F) % (F / D)
		Employees
Male Female	3049 227	1925 63 2228 73 2782 98 43 136 60 194	1085 39 921 33 79 41 80 41
Total	3276	2023 62 2364 72 2976	1164 39 1001 34
		Workers
Male Female	3771 124	2284 61 2403 64 3629 111 90 105 85 69	1427 39 1204 33 28 41 28 41
Total	3895	2395 61 2508 64 3698	1455 39 1232 33

9. Details of performance and career development reviews of employees and worker:

Category	FY 2022-23 FY 2021-22
	Total(A) No.(B) %(B / A) Total(C) No.(D) %(D / C)
	Employees
Male Female	3049 3049 100 2782 2782 100 227 227 100 194 194 100
Total	3276 3276 100 2976 2976 100
	Workers
Male Female	3771 3771 100 3629 3629 100 124 124 100 69 69 100
Total	3895 3895 100 3698 3698 100

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10. Health and safety management system:

a) Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No). If yes, the coverage of such system?

We recognise safety and health as an essential part of our operations. Our Health & Safety Policy ensures safe and healthy workplace for all. Based on the policy, we have established robust safety management systems across all our plants which includes, training on safety parameters including case studies, awareness campaigns, identification of hazards and tangible interventions to make the workplace safer. We have an Occupational Health Centre (OHC) in our plants which caters to any type of injury sustained by a worker or an employee. The OHC is managed round the clock by qualified doctors and trained paramedic staff.

b) What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity?

Company follows Hazard Identification and Risk Assessment (HIRA) and Hazard and operability (HAZOP) study to identify the work-related hazards and all the significant risks arising from the identified hazards are then addressed through operational control procedure and management programs.

Audits and inspections are carried out on an annual basis to identify risks, address areas of concern and minimise the risk of occurrence of any accidents at the workplace. Our plants and offices are assessed by third party auditors to ensure the health & safety and working conditions of our workplace as well. For more detail, refer section on Occupational Health & Safety.

c) Whether you have processes for workers to report the work-related hazards and to remove themselves from such risks. (Y/N)

We have a structured way to report any work-related hazard identified in our facilities. Workers are given trainings and awareness sessions on a regular basis on identifying work related hazards. Additionally, everyone is encouraged to report work related hazards in our portal and to the plant EHS SPOC to ensure timely corrective action.

d) Do the employees/ worker of the entity have access to non-occupational medical and healthcare services? (Yes/ No)

Our Occupational Health Centres are managed by qualified doctors, Trained paramedic staff. In addition to response to occupational injuries, they also cater to non-occupational medical and healthcare advice in general.

11. Details of safety related incidents, in the following format:

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

Safety Incident/Number Category FY 2022-23 FY 2021-22
----- End of picture text -----

Lost Time Injury Frequency Rate (LTIFR)	Employees	0	0
	Workers	0.19	0.73
Total recordable work-related injuries	Employees	0	0
	Workers	5	11
Number of fatalities	Employees	1	0
	Workers	1	2
High consequence work-related injury or	Employees	0	0
ill-health(excludingfatalities)	Workers	0	0

12. Describe the measures taken by the entity to ensure a safe and healthy workplace.

SRF is committed to be an injury free workplace. Consequently, the Company strives to achieve zero injury/ fatality/incidents/accidents across all its plants and manufacturing units. The Company handles, stores and distributes its products in an environment conscious manner. Emergency response plans, safety procedures and processes have been deployed across the organization to ensure a healthy and safe workplace. In addition to the above, EHS committees have been formed across plants to build a safety-oriented culture across the organization. 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.

13. Number of Complaints on the following made by employees and workers:

	FY 2022-23 FY 2021-22
	Filed during the year Pending resolution at the end of year Remarks Filed during the year Pending resolution at the end of year Remarks
WorkingConditions	0 0 0 0
Health & Safety	0 0 0 0

14. Assessments for the year:

% of your plants and offices that were assessed (by entity or statutory authorities or third parties) Health and safety practices 100 Working Conditions

15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks / concerns arising from assessments of health & safety practices and working conditions.

As a responsible organisation, SRF strives to ensure a safe and healthy working environment for its workforce. We have deployed emergency response plans, safety procedures and processes across the organisation to ensure a healthy and safe workplace. To keep the employees safe, SRF provides training 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 emergency mock drills. For more information, refer Occupational Health & Safety section.

PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders Essential Indicators

1. Describe the processes for identifying key stakeholder groups of the entity.

We take a collaborative approach when it comes to working with both internal and external stakeholders namely employees, suppliers, dealers, customers, shareholders / investors, communities surrounding the operations and government / regulatory authorities and gives utmost importance to healthy relationship and continuous engagement with them.

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2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.

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

Stakeholder Whether Channels of communication Frequency of Purpose and scope of engagement
Group identified as (Email, SMS, Newspaper, engagement including key topics and concerns
Vulnerable & Pamphlets, Advertisement, (Annually/ raised during such Engagement
Marginalized Community Meetings, Notice Half yearly/
Group Board, Website), Other Quarterly/
(Yes/No) others please
specify)
Regulatory No • Regulatory fillings As per • Compliance requirements
----- End of picture text -----

Regulatory	No	•	Regulatory fllings	specify) As per	•Compliance requirements
bodies		•	Meetings	requirement	•Upcoming rules and regulations
		•	Emails		•Industry representation on key
		•	Briefngs on industry trend		matters
		•	Through Industry
			Associations
Shareholders	No	•	Regulatory fllings	As per	•Financial and non-fnancial
		•	Company website	requirement	performance
		•	Quarterly publication of		•Corporate governance, Ethics and
			results followed by earning		value
			call
		•	Periodic Analysts’ briefng
Suppliers	No	•	Emails	As per	•Business opportunities, quality and
		•	Periodic meetings	requirement	safety of raw materials
		•	Visits to supplier’s facilities		•Supplier evaluation programme
		•	Conferences		•Materials management
					•Issues faced byCompany/suppliers
Customers	No	•	Emails	Regularly	•Product innovation and life-cycle
		•	Meetings		efciency
		•	Conferences		•Resolution of Customer Complaints
		•	Surveys to capture		•Quality and Safety
			customer satisfaction level		•New products oferings
		•	Awards and Recognitions
		•	Joint workings on product
			reengineering
Employees	No	•	Emails	Regularly	•Career growth prospects
		•	Notice board		•Learning and development programs
		•	Meetings		•Trainings Rewards and Recognition
		•	Open house sessions with		•Occupational Health and Safety
			senior management		•Work environment and policies
		•	Grievance mechanism		Grievance redressal mechanism
		•	Performance feedback		•Ethics and transparency
		•	Surveys to capture		•Total Quality Management
			employee satisfaction level		•IT enablement & digitisation
		•	Focused trainings and		•Employee-oriented work policies
			awareness sessions
Local	Yes	•	Community meetings	Regularly	•Social concerns in the region
Communities		•	CSR projects		•Minimising negative environmental
		•	Email		impact
		•	Social impact assessment		•Local employment
					•Partnership with local NGOs
					for servicing wider set of local
					communities
					•Local infrastructure development,
					structured learning by digital classrooms
					training, providing scholarships, and
					other necessarysupport

PRINCIPLE 5: Businesses should respect and promote human rights

Essential Indicators

1. Employees and workers who have been provided training on human rights issues and policy (ies) of the entity, in the following format:

Category	FY 2022-23 FY 2021-22
	Total (A) No. of employees /workers covered(B) % (B / A) Total (C) No. of employees /workers covered(D) % (D / C)
	Employees
Permanent Other than permanent Total Employees	3276 2552 78 2976 2793 94 - - - - - - 3276 2552 78 2976 2793 94
	Workers
Permanent Other than permanent Total Workers	3895 3045 78 3698 3409 92 7084 4785 68 7433 4525 61 10979 7830 71 11131 7934 71

2. Details of minimum wages paid to employees and workers, in the following format:

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

Category FY 2022-23 FY 2021-22
Total Equal to More than Total (D) Equal to More than
(A) Minimum Wage Minimum Wage Minimum Wage Minimum Wage
No. % No. % No. % No. %
(B) (B /A) (C) (C / A) (E) (E / D) (F) (F / D)
----- End of picture text -----

					Employees
Permanent
Male	3049	0	0	3049	100	2782	0	0	2782	100
Female	227	0	0	227	100	194	0	0	194	100
Other than
Permanent
Male	-	-	-	-	-	-	-	-	-	-
Female	-	-	-	-	-	-	-	-	-	-
					Workers
Permanent
Male	3771	0	0	3771	100	3629	0	0	3629	100
Female	124	0	0	124	100	69	0	0	69	100
Other than
Permanent
Male	6768	1356	20	5412	80	7072	1445	20	5627	80
Female	316	181	57	135	43	361	167	46	194	54

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3. Details of remuneration/salary/wages, in the following format:

	Male Female
	Number Median remuneration/ salary (average)/ wages of respective category (in INR) Number Median remuneration/ salary (average)/ wages of respective category (in INR)
Board of Directors (BoD) Key Managerial Personnel Employees other than BoD and KMP Workers	9 20,70,000 1 21,50,000 8 7,92,08,036 0 - 3041 7,87,819 227 7,93,965 3771 4,43,116 124 1,59,732

4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or contributed to by the business? (Yes/No)

SRF Limited recognises, respects and reinforces ‘Human Rights’ and is committed towards protection of such rights by creating a safe, secure and healthy working environment for all its employees. SRF has established a Values Steering Committee which comprises of the Joint Managing Director (JMD) and senior level employees. Our Values Steering Committee is responsible for addressing human rights issues highlighted by Company’s employees and workers.

8. Do human rights requirements form part of your business agreements and contracts?

SRF Limited recognises, respects, and reinforces ‘Human Rights’ and is committed towards protection of such rights. We encourage our suppliers to be fully compliant with applicable laws and to adhere environmental, social and corporate governance standards (ESG standards), and intent to foster relationship with suppliers having robust Environment Health and Safety (EHS) practices.

9. Assessments for the year:

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

% of your plants and offices that were assessed (by entity
or statutory authorities or third parties)
Child labour 100
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Child labour	or statutory authorities or thirdparties) 100
Forced/involuntary labour	100
Sexual harassment	100
Discrimination at workplace	100
Wages	100

10. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 9 above.

Not applicable

PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment

Essential Indicators

5. Describe the internal mechanisms in place to redress grievances related to human rights issues.

We have a robust mechanism to address grievances related to human rights. Any issue pertaining to human rights by any worker or employee can reported to Company’s Values Steering Committee or any of its member. The Values Steering Committee will identify the resources who would conduct the investigation based on the nature of the issue reported and take necessary actions to address the issue in the best interest of the aggrieved person and the Company.

6. Number of Complaints on the following made by employees and workers:

	FY 2022-23 FY 2021-22
	Filed during the year Pending resolution at the end of year Remarks Filed during the year Pending resolution at the end of year Remarks
Sexual Harassment Discrimination at workplace Child Labour Forced Labour/ Involuntary Labour Wages Other human rights related issues	2 0 None 3 0 None 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

7. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.

The Company has a Vigil Mechanism comprises of various policies which ensure protection of the complainant against victimization for the disclosures made by him/her.

1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:

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

Parameter FY 2022-23 FY 2021-22
Total electricity consumption (A) (TJ) 1,973 1,972
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Total fuel consumption (B) (TJ)	10,939	8,783
Energy consumption through other sources (C) (TJ)	Nil	Nil
Total energy consumption^ (A+B+C) TJ	12,912	10,755
Energyintensity per rupee of turnover(TJ/INR Crores)	1.07	1.08

^ Increase due to higher business operations and new product commercialisation.

Purchased electricity including renewable and non renewable sources

2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any.

Not applicable

3. Provide details of the following disclosures related to water, in the following format:

Parameter	FY 2022-23	FY 2021-22
Water withdrawal by source (in kilolitres)
(i) Surface water	-	6,179
(ii) Groundwater	10,25,296	10,13,771
(iii) Third party water	42,75,483	37,73,657
(iv) Seawater / desalinated water (v) Others (Rainwater harvesting)	- 58,362	- 25,788
Total volume of water withdrawal (in KL) (i + ii + iii + iv + v) Total volume of water consumption (in KL)	53,59,141 46,76,294	48,19,395 42,60,531
Water intensity per rupee of turnover(KL/INR Lakhs)	3.87	4.28

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4. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and implementation.

We have identified water conservation as a material topic. SRF is committed in optimising use of water using water efficient technologies, recycling and reusing treated wastewater in operations. Our Chemicals plant in Bhiwadi, Technical Textiles Business units Manali, Viralimalai and Gwalior and Packaging Films Business units are zero liquid discharge. Other locations have wastewater treatment plants ensuring quality and quantity of wastewater discharged is within permissible limits set by the respective Pollution Control Boards.

5. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:

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

Parameter Please specify unit FY 2022-23 FY 2021-22
----- End of picture text -----

NOx	MT/Annum	490.31	430.24
SOx	MT/ Annum	646.79	817.54
PM	MT/Annum	263.34	249.11

6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format:

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

Parameter Unit FY 2022-23 FY 2021-22
----- End of picture text -----

in the following format: Parameter	Unit	FY 2022-23	FY 2021-22
Total Scope 1 emissions Total Scope 2 emissions Total Scope 1 and Scope 2 emissions per rupee	tCO2e tCO2e	10,89,283 3,15,771 1.16	8,82,002 3,87,681 1.27
of turnover(tCO~~2~~e/INR Lakhs)

7. Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details.

Increase in renewable energy share - In FY 2022-23, our energy consumption from renewable sources stood at 1201 TJ (including biomass consumption) with an increase of 31% as compared to FY 2021-22
Retrofitted lightening and replaced high energy consuming manufacturing equipment in our Chemicals, Packaging Films and Technical Textiles business.
We are in the process of implementing Thermal Oxidation for further reduction of green house gas emission impact.

8. Provide details related to waste management by the entity, in the following format:

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

Parameter FY 2022-23 FY 2021-22
----- End of picture text -----

Total Waste generated (in metric tonnes)
Plastic waste (A)	2,313	1,287
E-waste (B)	19	12
Bio-medical waste (C)	0	0
Construction and demolition waste (D) Battery waste (E) Radioactive waste (F)	0 104 0	0 61 0
Other Hazardous waste (G)	4,25,959	3,06,946
(Primarily consists of Spent solvent and process residue
generated in Co-processing/Pre-processing)
Other Non-hazardous waste generated (H)	78,922	67,877
(Primarilyconsists of fyash and other miscellaneous scrapitems)
Total(A+B + C + D + E + F + G + H)	5,07,316	3,76,184

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Parameter FY 2022-23 FY 2021-22
For each category of waste generated, total waste recovered through recycling, re-using or other recovery
----- End of picture text -----

operations (in metric tonnes) (i) Recycled (ii) Re-used (iii)Other recoveryoperations	9,189 7,556 3,30,805 2,32,150 69,776 51,961
Total	4,09,770 2,91,667
For each category of waste generated, total waste disposed tonnes) Category of waste (i) Incineration (ii) Landflling (iii) Other disposal operations Total	by nature of disposal method (in metric 223 4,123 34,753 30,700 0 0
	34,976 34,823

9. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to manage such wastes.

SRF emphasises on the principle of 3R – Reduce, Reuse and Recycle and strives to operate in a ‘closed-loop’ through circularity in operations. The Company has been able to significantly enhance its capability by implementing necessary infrastructure for ensuring conversion and neutralization of hazardous waste into usable material or disposable in the most environment-friendly manner.

10. If the entity has operations/offices in/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, please specify details in the following format:

S. Location of Type of Whether the conditions of environmental approval / No. operations/ operations clearance are being complied with? (Y/N) If no, the reasons offices thereof and corrective action taken, if any. The Company does not have any of its manufacturing facilities in ecologically sensitive areas.

11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current financial year:

	Name and brief details of project EIA Notifcation No. Date Whether conducted by independent external agency (Yes / No) Results communicated in public Domain (Yes / No) Relevant Web Link
	Not applicable
	Is the entity compliant with the applicable environmental law/ regulations/ guidelines in
	India, such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control
	of Pollution) Act, Environment protection act and rules thereunder (Y/N). If not, provide
	details of all such non-compliances, in the following format:
	S. No. Specify the law / regulation / guidelines which was not complied with Provide details of the non- compliance Any fnes / penalties / action taken by regulatory agencies such as pollution control boards or by courts Corrective action taken, if any
	None

12. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India, such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and rules thereunder (Y/N). If not, provide details of all such non-compliances, in the following format:

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PRINCIPLE 7: Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent

Essential Indicators

1.a. Number of affiliations with trade and industry chambers/ associations.

We proactively collaborate with several industry associations to share our best practices, address industry concerns, and implement measures for driving industry growth and fostering economic development in the country. We are affiliated with eight trade and industry associations at the national and state level.

b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such body) the entity is a member of/ affiliated to.

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S. No. Name of the trade and industry chambers/ Reach of trade and industry
associations chambers/ associations
(State/National)
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||||
|---|---|---|
|1|Confederation of Indian Industry|National|
|2|Refrigerant Gases Manufacture Association|National|
|3|Indian Chemical Council|National|
|4|CHEMEXCIL|National|
|5|Centre for Chemical Process Safety|National|
|6|The Synthetic & Rayon Textiles Export Promotion Council|National|
|7|Indian Technical Textile Association (ITTA)|National|
|8|Association of Synthetic Fibre Industry|National|
|9|Indian society for quality|National|
|10|British Safety Council|National|

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2. Provide details of corrective action taken or underway on any issues related to anticompetitive conduct by the entity, based on adverse orders from regulatory authorities.

No adverse orders received from the regulatory authorities on any issues related to anti-competitive conduct.

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

||||
|---|---|---|
|Name of authority|Brief of the case|Corrective action taken|
|None|

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PRINCIPLE 8: Businesses should promote inclusive growth and equitable development

Essential Indicators

1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current financial year.

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

Name SIA Date of Whether conducted by Results communicated Relevant Web
and brief Notification notification independent external in public domain link
details of No. agency (Yes / No) (Yes / No)
project
Not applicable
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2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your entity.

Our operations have not displaced any population or their livelihoods. Hence, no Rehabilitation and Resettlement (R&R) activities is applicable to us.

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||||||||
|---|---|---|---|---|---|---|
|S. No.|Name of|State|District|No. of Project Affected|% of PAFs|Amounts paid to|
|Project for|Families (PAFs)|covered by R&R|PAFs in the|
|which R&R|FY (In INR)|
|is ongoing|
|Not applicable|

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3. Describe the mechanisms to receive and redress grievances of the community. The Company has a robust grievance mechanism to receive and redress complaints or any concerns raised by the community. We constantly engage with local communities through various means such as personal visits, surveys, meetings, letter etc. to understand their concerns and take appropriate actions to resolve them.

4. Percentage of input material (inputs to total inputs by value) sourced from suppliers.

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||||
|---|---|---|
|FY 2022-23|FY 2021-22|
|Directly sourced from MSMEs/ small producers|16.95%|12.20%|
|Sourced directly from within the district and neighbouring districts|16.75%|17.15%|

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PRINCIPLE 9: Businesses should engage with and provide value to their consumers in a responsible manner

Essential Indicators

1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.

We have a robust resolution mechanism for resolution of customer complaints. Customers can raise their complaints through the grievance redressal mechanism. Our marketing and customer relationship management team regularly engages with customers through visits/surveys and meetings to understand their feedback and subsequently incorporate into our solutions. We also conduct periodic consumer satisfaction surveys to seek detailed consumer feedback on our solutions. All complaints are resolved in the least possible time.

2. Turnover of products and/services as a percentage of turnover from all products/service that carry information about:

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

As a percentage to total turnover
Environmental and social parameters relevant to the product 100%
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----- Start of picture text -----

|||
|---|---|
|Safe and responsible usage|100%|
|Recycling and/or safe disposal|Not Applicable|

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3. Number of consumer complaints in respect of the following:

	FY 2022-23 FY 2021-22
	Received during the year Pending resolution at end of year Remarks Received during the year Pending resolution at end of year Remarks
Data privacy Advertising Cyber-security Restrictive Trade practices Unfair Trade Practices Others	0 0 None 0 0 None 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 440 56 545 32

4. Details of instances of product recalls on account of safety issues:

Voluntary recalls Forced recalls	Number Reasons for recall - Not Applicable -

5. Does the entity have a framework/policy on cyber security and risks related to data privacy? (Yes/No) If available, provide a web-link of the policy.

It is essential for the continuous operations of the Company to ensure security and confidentiality of its information systems and associated data are maintained, at a level that is appropriate to its business.

Company has a well defined cyber risk management policy and has implemented various systems to protect from cyber attacks. The said policy is available for internal use.

Some of our key strategies to mitigate Cybersecurity risks are mentioned below:
Implementation of new perimeter security mechanisms such as dual firewalls, internet/email content filtering, Secure VPNs etc.
Secure data centres, identity and password management
Awareness sessions on cybersecurity risks conducted for employees on regular basis
Implementation of mobile device management for users with critical data leak risk.
Classification and encryption of Intellectual property with IRM solutions to protect against data exfiltration.
Ensuring adequate upgradation, maintenance and segregation of servers and network zones
Devices for added security and data protection
Security events management and monitoring tools managed through a 24x7 SOC
Modern anti-malware and EDR solutions deployed on all end points and servers
Regular backups sufficiently segregated to ensure recovery in the event of any compromise.

6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential services; cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty / action taken by regulatory authorities on safety of products / services.

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

who shall hold office from the conclusion of this 52[nd] Annual General Meeting till the conclusion of the 57[th] Annual General Meeting on such remuneration as may be decided by the Board of Directors in consultation with the Statutory Auditors of the Company.”

Notice is hereby given that the 52[nd] Annual General Meeting of SRF Limited will be held on Friday, June 30, 2023 at 10.00 a.m . through Video Conferencing (“VC”) / Other Audio Visual Means (“OAVM”) facility to transact the following businesses: -

Ordinary Business

Special Business

To receive, consider and adopt the standalone and consolidated audited financial statements of 4. Re-appointment of Mr. Pramod Gopaldas the Company for the financial year ended March Gujarathi (DIN 00418958) as a Whole- 31, 2023 along with the Reports of the Auditors’ Time Director, designated as “Director and Board of Directors’ thereon. (Safety & Environment) and Occupier
To appoint a Director in place of Mr. Pramod To consider and if thought fit, to pass with or Gopaldas Gujarathi (DIN 00418958), who retires without modification(s), the following resolution by rotation and being eligible, offers himself for as a Special Resolution : re-election.
“ RESOLVED THAT in accordance with the provisions of Sections 196, 197 and 203 read with Schedule V and other applicable provisions, if any, of the Companies Act, 2013 and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 (including any statutory modification(s) or re-enactment(s) thereof, for the time being in force), approval be and is hereby accorded for re-appointment of Mr. Pramod Gopaldas Gujarathi (DIN 00418958), as the Whole-Time Director, designated as “Director (Safety & Environment) and Occupier” of the Company, on the terms, conditions and remuneration, including minimum remuneration as are hereinafter specifically given:-
To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution:

Re-appointment of Statutory Auditors of the Company

“ RESOLVED THAT pursuant to Section 139, 142 and all other applicable provisions, if any, of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules, 2014, (including any statutory modification(s) or re-enactment thereof) and pursuant to the recommendations of the Audit Committee and the Board of Directors of the Company, M/s. B S R & Co. LLP, Chartered Accountants, having registration No. 101248W/W-100022 be and are hereby re-appointed as the Statutory Auditors of the Company for term of five consecutive years,

Tenure

Three years with effect from April 1, 2023. He shall be liable to retire by rotation.

Not applicable

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Functions

Mr. Pramod Gopaldas Gujarathi (DIN 00418958) shall be responsible for compliances with the laws relating to safety, health and environment at the factories of the Company, present and future. He shall continue to act as person in charge for the business of SRF Limited under Legal Metrology Act, 2009. He shall also discharge such other responsibilities as may be entrusted to him by the Chairman & Managing Director, Joint Managing Director and/or the Board, from time to time.

Remuneration

Subject to the overall limit on remuneration payable to all the managerial personnel taken together, the remuneration payable to Mr. Pramod Gopaldas Gujarathi shall comprise salary, perquisites and commission, as may be decided by the Board/Nomination and Remuneration Committee in accordance with the Nomination, Appointment and Remuneration Policy not exceeding ` 30 lakhs p.a.

Remuneration for a part of the year shall be computed on pro-rata basis.

Minimum Remuneration

In the event of absence or inadequacy of profits in any financial year, the remuneration payable to Mr. Pramod Gopaldas Gujarathi (DIN 00418958) shall be decided by the Nomination and Remuneration Committee subject to the provisions of the Companies Act, 2013 and such approvals, if any, as may be required.

Termination

The appointment of Mr. Pramod Gopaldas Gujarathi (DIN 00418958) as Director (Safety & Environment) and Occupier may be terminated by either party giving to the other one calendar months’ notice in writing.

“ RESOLVED FURTHER THAT the Nomination

and Remuneration Committee be and is hereby authorised to recommend/decide from time to time the salary, perquisites and commission payable to Mr. Pramod Gopaldas Gujarathi (DIN 00418958) during his tenure with effect from 01.04.2023 within the approved ceiling of

remuneration, in accordance with the Nomination and Remuneration Policy, as amended from time to time.”

“ RESOLVED FURTHER THAT the powers and authorities delegated by the Board to Mr. Pramod Gopaldas Gujarathi (DIN 00418958), from time to time, including powers to sub-delegate shall remain valid upon his re-appointment.”

5. Re-appointment of Ms. Bharti Gupta Ramola (DIN: 00356188) as an Independent Director

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 149, 150 and 152 read with Schedule IV and any other applicable provisions of the Companies Act, 2013 (‘the Act’) and the Companies (Appointment and Qualification of Directors) Rules, 2014 (including any statutory modification(s) or re-enactment thereof for the time being in force), applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) and the Nomination, Appointment and Remuneration Policy of the Company, Ms. Bharti Gupta Ramola (DIN: 00356188) Independent Non-executive Director of the Company who has submitted a declaration that she meets the criteria for independence as provided in Section 149(6) of the Companies Act, 2013 and who in the opinion of the Board fulfills the conditions specified in the Act and the rules made thereunder, is independent of the management and eligible for reappointment, be and is hereby re-appointed as an Independent Non-Executive Director of the Company to hold office for a period of 5 consecutive years from Februrary 4, 2024 to February 3, 2029, and whose office shall not be liable to retire by rotation.”

6. Re-appointment of Mr. Puneet Yadu Dalmia (DIN: 00022633) as an Independent Director

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 149, 150 and 152 read with Schedule IV and any other applicable provisions of the Companies Act, 2013 (‘the Act’) and the Companies (Appointment and Qualification of Directors) Rules, 2014 (including any statutory modification(s) or re-enactment thereof for the time being in force), applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) and the Nomination, Appointment and Remuneration Policy of the Company, Mr. Puneet Yadu Dalmia (DIN: 00022633) Independent Non-executive Director of the Company who has submitted a declaration that he meets the criteria for independence as provided in Section 149(6) of the Companies Act, 2013 and who in the opinion of the Board fulfills the conditions specified in the Act and the rules made thereunder, is independent of the management and eligible for reappointment, be and is hereby re-appointed as an Independent Non-Executive Director of the Company to hold office for a period of 5 consecutive years from April 1, 2024 to March 31, 2029, and whose office shall not be liable to retire by rotation.”

7. Re-appointment of Mr. Yash Gupta (DIN: 00299621) as an Independent Director

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

149(6) of the Companies Act, 2013 and who in the opinion of the Board fulfills the conditions specified in the Act and the rules made thereunder, is independent of the management and eligible for reappointment, be and is hereby re-appointed as an Independent Non-Executive Director of the Company to hold office for a period of 5 consecutive years from April 1, 2024 to March 31, 2029, and whose office shall not be liable to retire by rotation.”

8. 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.”

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9. Alteration of the Article of Association 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 pursuant to the provisions of Sections 5, 14(1), 15 read with Companies (Incorporation) Rules, 2014, and other applicable provisions, if any, of the Companies Act, 2013 and subject to such other approvals and permissions, if any and to the extent required, approval of the members be and is hereby accorded for amendment in the Articles of Association of the Company by inserting following article 68A after the existing article 68 in the Articles of Association of the Company:

68A. Notwithstanding anything to the contrary contained in these Articles, The Directors shall have authority from time to time to appoint or accept nomination of Directors, not liable to retirement by rotation, nominated by the debenture trustee(s) in terms of clause (m) of sub-regulation (1) of regulation 15 of the Securities and Exchange Board of India (Debenture Trustees) Regulations, 1993, as amended, or such other provisions of law, as may be applicable.

10. Ratification of Remuneration of Cost Auditors for financial year 2023-24

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, 2024 as provided below, be and is hereby approved and ratified:

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Name of Business Remuneration
Cost Auditor payable
H Tara & Co. Technical 3.25 lakhs Textiles plus applicable (Membership Business taxes and No. 17321) and Other reimbursement Businesses of actual out of pocket expenses Sanjay Gupta Chemicals 5.25 lakhs
& Associates Business plus applicable
and taxes and
(Membership Packaging reimbursement
No. 18672) Films of actual out of
Business pocket expenses
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By Order of the Board of Directors

Rajat Lakhanpal

Sr. VP (Corporate Compliance) & Date : May 09, 2023 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

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 read with Circular No. 2/2022 dated May 5, 2022 and Circular No. 10/2022 dated December 28, 2022 (collectively referred to as ‘MCA Circulars’) and SEBI vide its circular dated May 12, 2020, January 15, 2021, May 13, 2022 and January 5, 2023 (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 the 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 52[nd] 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 52[nd] 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 intend 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 2015-16, 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 2016-17 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 June 23, 2023 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.

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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 09, 2023 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. June 30, 2023. 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 52[nd] AGM and the Annual Report for the financial year 2022-23 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 May 26, 2023. Members may note that the Notice and Annual Report 2022-23 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 52[nd] AGM and the Annual Report for the year 2022-23 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 Securities and Exchange Board of India ("SEBI") has mandated furnishing of PAN, KYC details (i.e., Postal Address with PIN Code, email address, mobile number, bank account details) and nomination details by holders of securities in prescribed forms. Effective from 1[st] January 2022, any service requests or complaints received from the member, are being processed by RTA on receipt of aforesaid details/ documents. On or after 1[st] October 2023, in case any of the above cited documents/ details are not available in the Folio(s), in terms of SEBI circulars, RTA shall be constrained to freeze such Folio(s). Relevant details and forms prescribed by SEBI in this regard are available on the website of the Company at https://www.srf.com/investors/ investors-information/ and website of RTA at Investor Support Center | Kfintech.
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. Further SEBI vide its circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/65 dated 18[th] May 2022 has simplified the procedure and standardized the format of documents for transmission of securities. Accordingly, members are requested to make service requests by submitting a duly filled and signed Form ISR-4 & ISR-5, as the case may be. The said form can be downloaded from the website of the Company and RTA.

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.

Nomination facility as per the provisions of Section 72 of the Act is available to individuals holding shares in the Company. Members can nominate a person in respect of all the shares held by him singly or jointly. Members holding shares in physical form and who have not yet registered their nomination are requested to register the same by submitting Form No. SH13. If a member desires to opt out or cancel the earlier nomination and record a fresh nomination, he/ she may submit the same in Form ISR-3 or SH-14 as the case may be. The said forms can be downloaded from the website of the Company and RTA. Members holding shares in electronic form may approach their respective DPs for completing the nomination formalities.
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 52[nd] AGM and facility for those Members participating in the 52[nd] AGM to cast vote through e-Voting system during the 52[nd] AGM.

II. The remote e-Voting period will commence on June 27, 2023 (9:00 am IST) and end on June 29, 2023 (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 June 23, 2023 , 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

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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.

Login method for Individual shareholders holding securities in demat mode is given below:

Type of shareholders Login Method

Individual Shareholders A. NSDL IDeAS facility holding securities in demat If you are already registered for NSDL IDeAS facility mode with NSDL.

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.
Type of shareholders Login Method Individual Shareholders 1. Existing users who have opted for Easi / Easiest, they can login through their user id holding securities in demat and password. Option will be made available to reach e-Voting page without any further mode with CDSL 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 through your Depository (holding securities in Participant registered with NSDL/CDSL for e-Voting facility. demat mode) login 2. Once login, you will be able to see e-Voting option. Once you click on e-Voting option, you
through their depository will be redirected to NSDL/CDSL Depository site after successful authentication, wherein
participants 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.

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.

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

==> picture [442 x 96] intentionally omitted <==

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

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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 login 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 8 Character DP ID followed who hold shares by 8 Digit Client ID in demat account with NSDL. For example if your DP ID is IN300 and Client ID is 12 then your user ID is IN30012**. b) For Members 16 Digit Beneficiary ID who hold shares in demat account For example if your with CDSL. Beneficiary ID is 12** then your user ID is 12** c) For Members EVEN Number followed holding shares in by Folio Number Physical Form. registered 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.
After entering your password, tick on Agree through remote e-Voting and are otherwise not to “Terms and Conditions” by selecting on the barred from doing so, shall be eligible to vote check box. through e-Voting system in the AGM.
Now, you will have to click on “Login” button.
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.
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.

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.

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.

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 [email protected] with a copy marked to [email protected] and [email protected]
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.
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
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.
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].
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

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Process for those shareholders whose email 2. Members are encouraged to join the Meeting ids are not registered with the depositories for through Laptops for better experience. procuring user id and password and registration 3. Further Members will be required to allow

of e mail ids for e-voting for the resolutions set Camera and use Internet with a good speed to

out in this notice:

  3. 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.
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 June 25, 2023 (9:00 am IST) to June 27, 2023 (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.
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.
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 attend the AGM through VC/OAVM through the NSDL e-Voting system. Members may access by following the steps mentioned above for Access to NSDL e-Voting system . After successful login, you can see link of “VC/OAVM link” placed under “ Join General meeting ” menu against company name. You are requested to click on VC/OAVM link placed under Join General Meeting menu. The link for VC/OAVM will be available in Shareholder/Member login where the EVEN of Company will be displayed. Please note that the members who do not have the User ID and Password for e-Voting or have forgotten the User ID and Password may retrieve the same by following the remote e-Voting instructions mentioned in the notice to avoid last minute rush.
Any person who acquires shares of the Company 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

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 No. 3

M/s. B S R & Co. LLP, Chartered Accountants, were appointed as Statutory Auditors of the Company at the 47[th] Annual General Meeting (‘AGM’) held on August 07, 2018 for a period of 5 years, up to the

conclusion of 52[nd] AGM. M/s. B S R & Co. LLP are eligible for re-appointment for a further period of 5 years. M/s. B S R & Co. LLP have given their consent for their re-appointment as Statutory Auditors of the Company and has issued certificate confirming that their re-appointment, if made, will be within the limits prescribed under the provisions of Section 139 of the Companies Act, 2013 (‘the Act’) and the rules made thereunder. M/s. B S R & Co. LLP have confirmed that they are eligible for the proposed appointment under the Act, the Chartered Accountants Act, 1949 and the rules or regulations made thereunder. As confirmed to Audit Committee and stated in their report on financial statements, the Auditors have reported their independence from the Company and its subsidiary(ies) according to the Code of Ethics issued by the Institute of Chartered Accountants of India (‘ICAI’) and the ethical requirements relevant to audit. Based on the recommendations of the Audit Committee and the Board of Directors, it is hereby proposed to re-appoint M/s. B S R & Co. LLP, Chartered Accountants, having registration No. 101248W/W100022, as the Statutory Auditors of the Company for the second and final term of five consecutive years from the conclusion of this 52[nd] AGM till the conclusion of the 57[th] AGM of the Company.

M/s. B S R & Co. LLP, Chartered Accountants, having registration No. 101248W/W-100022 have performed upto the expectations of the Board during their first term and hence, their appointment for the second term of 5 years is being recommended by the Board as set out at Item No. 3 of the Notice for approval by the Members by way of an Ordinary Resolution.

The Board of Directors has approved a remuneration of ` 1.65 Crores for conducting the audit for the financial year 2022-23, including reimbursement of out-of-pocket expenses on actuals. The remuneration proposed to be paid to the Statutory Auditors during their second and final term would be recommended by the Audit Committee, from time to time, and decided by the Board keeping in view the enhancement in the scope of work and other factors as may be applicable.

None of the Directors or Key Managerial Personnel of the Company or their relatives are interested or concerned, financially or otherwise, in the resolution.

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Item Nos. 2 & 4

Shareholders had appointed Mr. Pramod Gopaldas Gujrathi (DIN 00418958) as Director (Safety & Environment) and Occupier of factories of the Company, w.e.f. April 01, 2020 for a term of three years. He is also the person in charge for the business of SRF Limited under Legal Metrology Act, 2009.

The Board of Directors on the recommendation of Nomination and Remuneration Committee had at its meeting held on 30.01.2023 re-appointed Mr. Pramod Gopaldas Gujarathi (DIN 00418958) for a period of 3 years with effect April 01,2023. Members’ approval is sought to the re-appointment. The Company has received a notice under Section 160 from a member signifying his intention to propose the candidature of Mr. Gujarathi at the forthcoming Annual General Meeting, copy of which is available on the website of the Company www.srf.com.

The terms of appointment and remuneration including minimum remuneration proposed for Mr. Pramod Gopaldas Gujarathi (DIN 00418958) are fully set out in the resolution.

The information required by the Listing Regulations and Secretarial Standards on General Meetings is given below:

Mr. Gujarathi (71 years) is B. Tech. (Chemical Engineering) from IIT, Bombay having Post Graduate Diploma in Management Studies with a vast and rich experience of 44 years in the field of production, engineering, safety, environment, QA and R&D, etc. He had served as Director & Site Manager with Bayer Group for around eighteen years.

Keeping in view Mr. Gujarathi’s rich and varied experience in the industry, health and safety matters, it would be in the interest of the Company to reappoint him as a Whole-time director designated as Director (Safety and Environment) and Occupier.

Mr. Gujarathi has no shareholding in the Company. He is Independent Director in Chemiesynth Vapi Ltd since May 2018 and is a Chairman of Nomination and Remuneration Committee and member of Audit Committee in Chemiesynth Vapi Ltd.

Approval of the members is sought to the appointment of Mr. Pramod Gopaldas Gujarathi (DIN 00418958) as Director (Safety & Environment) and Occupier

of in terms of Sections 196, 197 and 203 read with Schedule V and other applicable provisions of the Companies Act, 2013.

Except Mr. Gujarathi, none of the Directors, Key Managerial Personnel or their relatives are concerned or interested, financial or otherwise, in the Resolution. The Board of Directors recommends the Special Resolution set out at Item No. 4 of the Notice for approval of the members.

Item Nos. 5 to 7

The Company had, pursuant to the provisions of Listing Regulations and Companies Act 2013, appointed:

a. Ms. Bharti Gupta Ramola as Independent Director for a term of five years ending on February 03, 2024;
b. Mr. Puneet Yadu Dalmia as Independent Director for a term of five years ending on March 31, 2024; and
c. Mr. Yash Gupta as Independent Director for a term of five years ending on March 31, 2024.

The Nomination and Remuneration Committee and Board recommend to the shareholders the reappointment of these directors as Independent Directors for a second term of 5 years.

Aforesaid non-executive Independent directors of the Company, have given a declaration to the Board that they meet the criteria of independence as provided under section 149(6) of the Act. In the opinion of the Board, each of these directors fulfil the conditions specified in the Act and the Rules framed thereunder for appointment as Independent Director and are independent of the management.

Copies of the draft letters for re-appointment of Independent Directors setting out the terms and conditions of re-appointment are available on the website of the Company at www.srf.com.

The Company has also received notice under Section 160 of the Act from members proposing the candidature of the aforesaid Independent Directors.

Details of aforesaid Independent Directors pursuant to the provisions of (i) Listing Regulations and (ii) Secretarial Standards (‘SS-2’) issued by the Institute of Company Secretaries of India are given below:

Ms. Bharti Gupta Ramola (DIN: 00356188)

Ms. Bharti Gupta Ramola (65) (DIN: 00356188) was a partner at PwC during 1984-2017. She was a part of the founding team of varied advisory businesses (Corporate Finance and Recovery, Project Finance, Sustainability) for PwC in India. She has worked across a range of industries, the government and development institutions. As an advisory partner, her primary focus was transactions and advice on private investment and finance raising for large complex projects to Indian and multinational organizations. She became PwC’s India Market Leader and joined the management team in August 2011 focusing on building the brand and the institution. During this stint, she led the firm in identifying and seeding investment in technology led growth areas. She is member of the Audit Committee and Risk Management Committee of SRF Limited.

She holds a Post Graduate Diploma in Management from the Indian Institute of Management, Ahmedabad, and a Bachelor’s Degree (Hons) in Physics from St Stephen’s College, University of Delhi.

Ms. Ramola has no shareholding in the Company.

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Directorships in Committee Membership
other companies
HDFC Life Insurance Nomination & Remuneration Committee
company Limited and Policyholders Protection Committee
TATA Steel Limited Audit Committee and Safety, health
and Environment Committee
-
Villgro Innovations
Foundation
(Non Profit Co,)
----- End of picture text -----

Except Ms. Ramola, none of the Directors, Key Managerial Personnel or their relatives are concerned or interested, financial or otherwise, in the Resolution.

Keeping in view the vast experience of Ms. Ramola, the Board of Directors recommend the resolution for approval of the members by way of special Resolution set out at Item No. 5 of the Notice.

Mr. Puneet Yadu Dalmia (DIN: 00022633)

Mr. Puneet Yadu Dalmia (51) is B.Tech from IIT-Delhi and gold medalist M.B.A from IIM-Bangalore. Mr. Dalmia serves as the Managing Director of Dalmia Bharat Group and he has been driving force behind

the exponential growth witnessed by this group in last decade. He has keen interest in education and serves as a Founder and Trustee of Ashoka University. He is member of Nomination & Remuneration Committee of SRF Limited.

Mr. Puneet Yadu Dalmia has no shareholding in the Company.

Directorships in other Committee Membership companies Dalmia Bharat Limited Foundation for Pluralistic Research and Empowerment International Foundation for research and Education RLJ Family Trusteeship Private Limited SKLNJ Family Trusteeship Private Limited RANDR Trustee Private Limited RRJ Family Trustee Private Limited Piramal Enterprises Limited Audit Committee and Corporate Social Responsibility Report Piramal Capital & Housing Risk and Management Finance Limited Committee

Except Mr. Puneet Yadu Dalmia, none of the Directors, Key Managerial Personnel or their relatives are concerned or interested, financial or otherwise, in the Resolution.

In view of the Board, Mr. Dalmia would make useful contributions to the discussions and deliberations of the Board and therefore recommend the resolution for approval of the members by way of special Resolution set out at Item No. 6 of the Notice.

Mr. Yash Gupta (DIN: 00299621)

Mr. Yash Gupta (56 years) is MBA from Harvard Business School and BSc in Industrial Management from Carnegie Mellon University. Mr. Gupta has global work experience across Asia, US and Europe. Before founding YG Real Estate and BlueSky Ventures, he established and led Hines as its Country Head, India and Senior Managing Director. Previously, he has served as CEO at Silverglades - mid-sized residential developer, CEO at Doorvani Cables - wire & cable manufacturer,

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Senior Engagement Manager at McKinsey & Company and Staff Consultant at Price Waterhouse. In addition to his participation on several company boards, Mr. Gupta is South-Asia Chair, YPO Real Estate Network; Founding Board Member, HBS RE Alumni Association; Member RE Committees of FICCI and CII; Ex-chair USIBC Real Estate Executive Committee and Advisory Board Member, GRI. He is member of Nomination & Remuneration, Stakeholder Relationship Committee and Corporate Social Responsibility Committee of SRF Limited. Mr. Yash Gupta holds 3200 equity shareholding in the Company.

A notice has been received from a shareholder proposing his candidature for appointment as independent director under section 160 of the Companies Act, 2013.

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Directorships in other Committee Membership
companies
Pureearth Infrastructure
Limited
Pawan Impex Private Limited
----- End of picture text -----

Except Mr. Yash Gupta, none of the Directors, Key Managerial Personnel or their relatives are concerned or interested, financial or otherwise, in the Resolution.

Keeping in view his vast experience in the field of consulting which can add value to the discussions and deliberations of the Board, his appointment is recommended for approval of the members by way of special Resolution set out at Item No. 7 of the Notice.

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 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, as amended, 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.

Pricing of debentures is determined and impacted by general economic conditions and monetary policy, Company specific rating and outlook of the investor on the Company.

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.

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.

Item No. 9

As per the provisions of Regulation 24(1) of Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (“NCS Regulations”) read with Regulation 15(1)(m) of the Securities and Exchange Board of India (Debenture Trustees) Regulations, 1993, a debenture trustee is empowered to appoint a nominee director on the Board of the Company in the event of :-

(i) two consecutive defaults in payment of interest to the debenture holders; or

(ii) default in creation of security for debentures; or

(iii) default in redemption of debentures

Board at its meeting held on 09[th] May, 2023 had decided, subject to the approval by the shareholders, to insert a provision in the Articles of Association of the Company to appoint or accept nomination of Directors, nominated by the debenture trustee(s) as above.

In terms of Section 14 and other applicable provisions of the Companies Act, 2013, the consent of the Members by way of special resolution is required for insert a provision Articles of Association of the Company.

A copy of the amended Articles of Association shall be placed 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. In view of the above, the Board of Directors recommends the Special Resolution set out at Item No. 9 of the Notice for approval by the members.

Item No. 10

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, 2024 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. 10 of the Notice for approval by the members.

By Order of the Board of Directors

Rajat Lakhanpal

Sr. VP (Corporate Compliance) & Date : May 09, 2023 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

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Board’s Report

Dear Members,

Your Directors are pleased to present the 52[nd] Annual Report for the year ended March 31, 2023.

Financial Results

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( ` in Crores)
Particulars Standalone Consolidated
2022-23 2021-22 2022-23 2021-22
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Revenue from operations Other income Total Income	12,073.84 106.06 12,179.90	9,953.44 135.31 10,088.75	14,870.25 74.93 14,945.18	12,433.66 115.51 12,549.17
Proft Before Interest, Depreciation & Tax (PBIDT)	3,300.12	2,668.72	3,604.13	3,218.71
Less: Interest & Finance Charge Less: Depreciation and amortisation charge Proft Before Tax (PBT) Less: Provision For Taxation including Deferred Tax Charge	175.82 468.44 2,655.86 632.50	94.45 419.23 2,155.04 648.03	204.82 575.32 2,823.99 661.65	115.93 517.23 2,585.55 696.63
Proft After Taxation (PAT) Add: Proft Brought Forward	2,023.36 5,841.95	1,507.01 4,551.58	2,162.34 6785.77	1,888.92 5,113.66
Total	7,865.31	6,058.59	8,948.11	7,002.58

Appropriation

	(`In Crores)
Particulars	Standalone Consolidated
	2022-23 2021-22 2022-23 2021-22
Interim dividend on Equity Shares Other comprehensive income arising from re-measurement of defned beneft obligation Amount transferred to Debenture Redemption Reserve Proft carried to Balance Sheet	213.43 211.89 213.43 211.89 7.90 4.75 7.71 4.92 - - - 7,643.97 5,841.96 8,726.97 6,785.77

Operations Review

Share Capital

Total revenue from operations of the Company on standalone basis increased by 21.30% per cent from 9,953.44 Crores in 2021-22 to 12,073.84 Crores in 2022-23. The profit before interest, depreciation and tax (PBIDT) including ‘other income’ on a standalone basis increased from 2,668.72 Crores in 2021-22 to 3,300.12 Crores in 2022-23.

During the year, the Board allotted 3,800 equity shares of ` 10/- each at par under Part B- SRF ESPS, 2018 of the SRF Long Term Share Incentive Plan, 2018 to an eligible employee on July 21, 2022.

In view of the above, the paid up share capital of the Company increased from 2,96,42,10,250 divided into 29,64,21,025 equity shares of 10/- each to 2,96,42,48,250 divided into 29,64,24,825 equity shares of 10/- each.

Profit before tax (PBT) from continuing operations on a standalone basis increased by 23.24% per cent from 2,155.04 Crores in 2021-22 to 2,655.86 Crores in 2022-23. After accounting for the provision for tax of 632.50 Crores, profit after tax (PAT) on continuing operations on a standalone basis increased by 34.26 per cent from 1,507.01 Crores in 2021-22 to ` 2,023.36 Crores in 2022-23

Non-Convertible Debentures

During the year, the Company redeemed Listed, Rated, Secured, Taxable, Redeemable Non-Convertible Debentures of ` 250 Crores on September 16, 2022.

Equity Dividend

Total revenue from operations of the Company on consolidated basis increased by 19.60 per cent from 12,433.66 Crores in 2021-22 to 14,870.25 Crores in 2022-23. The profit before interest, depreciation and tax (PBIDT) including ‘other income’ on a consolidated basis increased from 3,218.71 Crores in 2021-22 to 3,604.13 Crores in 2022-23.

During the year, your Company has paid two interim dividends of 3.60 per share each amounting to 213.43 Crores. The Board of Directors of the Company has not recommended any final dividend.

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.

Profit before tax (PBT) from continuing operations on a consolidated basis increased by 9.22 per cent from 2,585.55 Crores in 2021-22 to 2,823.99 Crores in 2022-23. After accounting for the provision for tax of 661.65 Crores, profit after tax (PAT) on continuing operations on a consolidated basis increased by 14.47 per cent from 1,888.92 Crores in 2021-22 to ` 2,162.34 Crores in 2022-23.

Business Responsibility and Sustainability Report

ESG Report for FY 2022-23 containing the Environment, Social and Governance Initiatives taken by the Company during the year forms part of the Annual Report. As stipulated under the Securities and Exchange Board of India (LODR) Regulations, 2015 (“Listing Regulations”), the Business Responsibility Sustainability Report has been prepared for 2022-23 and is presented along with the above ESG Report.

Transfer to Reserves

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.

F 134a Plant at Dahej, India

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FINANCIAL STATEMENTS

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.

Subsidiaries, Joint Ventures and Associate companies

As on March 31, 2023, 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, 2023 includes the profit and loss account for these 7 (seven) wholly owned subsidiaries for the Financial Year ended March 31, 2023.

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. 394. 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. It is a material subsidiary determined in accordance with the policy on Material Subsidiary Companies.

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.

Directors & Key Managerial Personnel

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 packaging films in South Africa and other neighbouring countries.

During the year, Mr. Ashish Bharat Ram was redesignated as Chairman and Managing Director and Mr. Kartik Bharat Ram was redesignated as Joint Managing Director wef April 1, 2022 by the members in their last Annual General Meeting held on July 21, 2022.

SRF Europe Kft (a wholly owned subsidiary of SRF Global BV) is incorporated in Hungary to undertake the manufacture of packaging films in Hungary.
undertake the manufacture of packaging films in Mr. Vellayan Subbiah was appointed as a Non-executive Hungary. and Non-Independent Director and Mr. Raj Kumar Jain was appointed as an Independent Director for a term
1. SRF Holiday Home Ltd. is a wholly owned of 5 years by the members in their last Annual General
subsidiary of the Company incorporated in India. Meeting held on July 21, 2022.
This company is engaged in the business of acquisition and renting of real estate properties.[[th]]
The members of the Company at the 49[[th]] Annual
1. SRF Altech Limited is a wholly owned subsidiary General Meeting appointed Mr. Pramod Gopaldas of the Company incorporated in India during Gujarathi as Director (Safety & Environment) and the year. It shall engage in the business of Occupier for a term of three years upto Match 31, manufacture of Aluminum foil. 2023.

The Board has re-appointed Mr. Pramod Gopaldas Gujarathi for a period of 3 years wef April 1, 2023 subject to approval by shareholders through special resolution at the ensuing Annual General Meeting.

The Members of the Company at the 48[th] Annual General Meeting held on August 5, 2019 had appointed Ms. Bharti Gupta Ramola, Mr. Puneet Yadu Dalmia and Mr. Yash Gupta as Independent Director(s) of the Company. The present term of Ms. Bharti Gupta Ramola is ending on February 3, 2024 and terms of both Mr. Puneet Yadu Dalmia and Mr. Yash Gupta are ending on March 31, 2024.

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 and are eligible for reappointment. They are also independent of the management.

The Board on the recommendation of Nomination and Remuneration Committee has recommended the proposals for reappointment of Ms. Bharti Gupta Ramola for a further period of 5 years w.e.f. February 04, 2024 and both Mr. Puneet Yadu Dalmia and Mr. Yash Gupta for a further period of 5 years each w.e.f. April 1, 2024 for approval of the shareholders through special resolution(s) at the forthcoming Annual General Meeting.

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.

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 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 2022-23, Five meetings of the Board of Directors were held. For further details, please refer to report on Corporate Governance on page no. 161 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:

(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 policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of

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the financial year and of the profit and loss of the company for that period;

(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;
(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.

Contracts and Arrangements with Related Parties

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 or as approved by the Audit Committee /Board in accordance with the requirements of the Companies Act and Listing regulations. These contracts/ arrangements/ transactions were entered in accordance with the 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. AOC-2 is not applicable to the Company for FY 2022-23 and hence the same is not provided.

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.

Particulars of Loans given, Investments made, Guarantees given and Securities provided

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).

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.

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.

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

As per the requirements of section 135 (5) of the Companies Act 2013, the CSR Obligation for FY 2022-23 was 28.56 Crores. The Board upon recommendations of CSR Committee approved the Annual budget of 28.63 Crores towards CSR expenditure which was duly spent during the year.

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

Risk Management

The company has a well-established risk management framework to identify, assess and frame a response to threats that can affect its business objectives and stakeholders. The risk management process consists of risk identification, risk assessment, risk prioritization, risk treatment or mitigation, risk monitoring and documenting the new risks.

The risks identified by the company broadly fall into the following categories viz. strategic risks, operational risks, regulatory risks, financial and reporting risks, IT & cyber risks, sectoral risks, and sustainability including ESG Risk.

Further, to oversee key risks and assist in efficient management of risk management process, the Board has constituted a 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. In the opinion of your Board, none of the risks which have been identified may threaten the existence of the Company.

Internal Financial Controls

The Company believes that Internal Control is a necessary concomitant of the principle of Governance and 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 of:

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

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 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, 3,800 equity shares were allotted under Part B- SRF ESPS, 2018 of the SRF Long Term Share Incentive Plan, 2018 to an eligible employee. There has been no change in the said Plan which was approved by the shareholders through postal ballot 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:

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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. 263 of the Annual Report 2022-23. Note No. 1.B.17 forming part of the Accounting Policies which refers to this is also appearing on page no. 213 of the Annual Report 2022-23.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, 2021-22 and 202223 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 2022-23 was ` 68.26 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 09, 2023 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 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-Conduct-for-Directors-and-Senior-ManagementPersonnel.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. During the year Mr. Vellayan Subbiah ceased to be as the member of Audit Committee w.e.f closing of business hours of 9[th] May 2022 and Mr. Raj Kumar Jain was appointed as Member of the Audit Committee w.e.f May 10, 2022.

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.

It is proposed to re-appoint BSR & Co. LLP, Chartered Accountants (Registration No. 101248W/W-100022) as Statutory Auditors for 5 years from the forthcoming annual general meeting till the conclusion of 57[th] annual general meeting. Their re-appointment shall be as per the provisions of the Companies Act, 2013 and rules made thereunder. They have submitted their certificate to the effect that they fulfil the requirements of Section 141 of the Companies Act, 2013.

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 2023-24 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 2023-24 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 2023-24 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 2021-22, 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 17, 2022. The due date for filing was August 20, 2022.

Secretarial Auditor

The Board has appointed M/s Sanjay Grover & Associates, Practising Company Secretary, to conduct Secretarial Audit for the financial year 2022-23. The Secretarial Audit Report for the financial year ended March 31, 2023 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 9, 2023 issued as per regulation 24A of SEBI (Listing Obligation and Disclosure Requirements) Regulations 2015 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 need 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

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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 March 31, 2023 is available on the following web link: - https://www.srf.com/investors/corporate governance/

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 and Managing Director/ Joint 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, two complaints were received which were duly disposed off.

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 09, 2023 Chairman & Managing Director Place: Gurugram (DIN – 00671567)

Annexure I to Board’s Report

Nomination, Appointment and Remuneration Policy

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 (other than Managing Director(s) and Whole-time Director(s)) appointed under the provisions of the Companies Act, 2013 and rules made thereunder.

Directors :

Managing Director(s), Whole-time Director(s), Chief Executive Officers of the businesses of the Company reporting to the Managing Director, Chief Financial Officer and Company Secretary.

Key Managerial Personnel Senior Management Personnel Other Employees

Members of the Corporate Leadership Team of the Company (excluding Executive Directors), Chief Financial Officer and Company Secretary

Employees other than Key Managerial Personnel and Senior Management Personnel.

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

C. Terms of Reference

Recommend to the Board on appointment and removal of Directors, Key Managerial Personnel and Sr. Management Personnel.

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

Evaluation of the performance of Directors (other than independent directors).
Evaluation of the performance of independent directors and make recommendations to Board.
Formulation of the criteria for determining qualifications, positive attributes and independence of a director.
To oversee succession planning for Board of Directors, Key Managerial Personnel and Senior Management Personnel.
Formulation of criteria for evaluation of performance 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, Sr. Management Personnel and Other Employees.

D. Criteria for recommending a person to become Director

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.
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:-

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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

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

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Industry knowledge/ Technical skills/ Behavioural Competencies
experience experience
a) Consulting Experience a) Accounting and finance a) Integrity and ethical standards
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a)	Consulting Experience	a) Accounting and fnance	a) Integrity and ethical standards
b)	Manufacturing Industry	b) Industrial Engineers	b) Mentoring abilities
	experience
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

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.
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.

F. Evaluation

Performance evaluation of Executive Directors,
E. Directors’ Remuneration Non-executive & Non Independent Directors,
The Committee will approve the fixed Independent Directors, Board as a whole, Board remuneration to Executive Directors subject to Committees and their members and Chairman the provisions of the Act, Listing Regulations shall be carried out in following manner: and other applicable laws & regulations. Commission to the Executive Directors, if any, a) Performance evaluation of all will be recommended by the Committee to individual Directors: It shall be the Board for approval. The Committee/Board done annually by the Nomination and shall periodically review the remuneration of Remuneration Committee (NRC) as per the such Directors in relation to other comparable structure of performance evaluation (as per companies and other factors like performance of Annexure I & II & III). The outcome of the the Company etc. as deemed appropriate. evaluation shall be shared by the Chairman

E. Directors’ Remuneration

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.
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.
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.

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).

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.

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.

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.

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 H. Eligibility criteria & Remuneration annexure IV. of Key Managerial Personnel, Senior Management Personnel and Other Employees
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.
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.
f) Performance evaluation of Chairman: The Board shall review the performance of Chairman annually on criteria for evaluation as specified in annexure VI.
In particular, the position of Key Managerial Personnel should be filled by senior personnel having relevant qualifications and experience.

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FINANCIAL STATEMENTS

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.

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:

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S. Particulars/Role/Attribute (Yes/No)
No.
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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 : …………………………..

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FINANCIAL STATEMENTS

Annexure - II

Performance Evaluation of Independent Directors

Annexure - III

Performance Evaluation of Non-executive & Non-Independent Directors

Name of Director :

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

S. 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 : ……………………….

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 -----

S. 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 & Non-Independent 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 : …………………………..

Signature : ………………………….

Date & Place : …………………………..

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FINANCIAL STATEMENTS

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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S. Particulars/Role/Attribute (Yes/No)
No.
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Composition and Quality

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.
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.

Annexure - V

Performance Evaluation of the Committees

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

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S. Particulars/Role/Attribute (Yes/No)
No.
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The Committee(s) composition is/ are appropriate 2. The Committee(s) has/ have a defined agenda 3. 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 7. Appropriate internal and external support or resources are available to the Committee(s)

Name of Director : ……………………….

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

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.

Annexure - VI

Performance Evaluation of Chairman

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

S. Roles/Attributes (Yes/No) No. 1. Chairman demonstrates effective leadership qualities and skills 2. Implementation of observations/recommendations of Board Members 3. Effective and timely resolution of grievances of Board Members 4. Ability to bring convergence in case of divergent views and conflict of interest situation tabled at Board meetings

Name of Director : ……………………….

Overall Performance (Remarks)

Name of Director : ………………………. Signature : …………………………. Date & Place : …………………………..

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

Date: May 09, 2023 Place: Gurugram

For and on Behalf of the Board Ashish Bharat Ram Chairman & Managing Director (DIN – 00671567)

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STATUTORY REPORTS FINANCIAL STATEMENTS

Annexure II to the Board’s Report

Annual Report On CSR Projects As On March 31, 2023

1. Brief outline on CSR Policy of the Company

market and industry needs and providing a platform to the youth trained to be gainfully self-employed or linking them with potential employers to increase their employability and livelihood.

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 202223: -

Ensure Environmental Sustainability (iv): Plantation, Awareness Creation – Water Conservation, Ground Water Recharge, Research, Waste Recycling
Promotion of Health Care (i): Focusing on prevention and curative health care and to improving the quality of health facilities of Government health center. Empowering Government Anganwadi centers to reduce the incidence of mortality, morbidity, malnutrition.
Promotion of Art and Culture (v): Lecture cum demonstration session on classical music, dance, folk form, etc.
Promotion of Sports (vii): Training to promote rural sports, nationally recognized sports, paralympic and Olympic sports.
Promotion of Quality Education & Vocational Skills (ii): Improving Quality of Education and Developing School infrastructure of Govt. Schools. Focusing on imparting appropriate skills as per the
Disaster Management (xii): Relief and rehabilitation, livelihoods support, R&D, COVID awareness and response, vaccination etc.

2. Composition of CSR Committee:

Sl. No.	Name of Director	Designation/ Nature of Directorship	Number of meetings of CSR Committee held during theyear	Number of meetings of CSR Committee attended during theyear
1.	Mr. Kartik Bharat Ram	Chairman	2	2
2.	Mr. L. Lakshman	Member	2	2
3.	Mr. Yash Gupta	Member	2	1

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/

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).

During 2020-21, SRF provided a contribution of ` 1 Crores to the International Foundation of Research and Education (Ashoka University) to promote education. In accordance with the Companies (Corporate Social Responsibility Policy) Rules, 2014 CSRBOX has conducted impact assessment for the said project.

Impact Assessment report can be accessed at: https://www.srf.com/investors/corporate governance/

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.
1|Financial
2020-21|Year
Amount available for set-of
from preceding fnancial years
(**in Crores)** -|**Amount required to be set- of** **for the fnancial year, if any** **(**in Crores)
-|
|---|---|---|---|---|
||2|2021-22|-|-|
||3|2022-23|-|-|
|||TOTAL|-|-|

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

` 1,427.98 Crores

7. (a) Two percent of average net profit of the company as per Section 135(5) ` 28.56 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): 2022-23

` 28.56 Crores

8. (a) CSR amount spent or unspent for the financial year: 2022 - 23

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Total Amount Amount Unspent (in ) spent for the Total Amount transferred to Amount transferred to any fund specified Financial Year. Unspent CSR Account as per under Schedule VII as per second proviso ( in Crores) Section 135(6) to Section 135(5)
Amount Date of Name of the Amount Date of
transfer Fund transfer
28.63 - - - - -
----- End of picture text -----

(b) Details of CSR amount spent against ongoing projects for the financial year: 2022-23

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(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Sl. Name Item from Local Location of Project Amount Amount Amount Mode of Mode of
No. of the the list of area the 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
- - - - - - - - - - - - -
----- End of picture text -----

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FINANCIAL STATEMENTS

(c) Details of CSR amount spent against other than ongoing projects for the financial year: 2022-23

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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 the project Amount Mode of Mode of
No. Project the list of (Yes/ No) spent for implementation implementation –
activities the project on - Direct Through implementing
in ( ` in (Yes/No) agency
schedule Crores)
VII to the State District Name CSR
Act Registration
number
----- End of picture text -----

1	Rural	(ii)	Yes, except	Gujarat, Madhya	Bharuch,	10.28	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,	1.08	No	SRF	CSR00000733
	Skills Program		Bengaluru,	Pradesh,	Gwalior, Dhar,			Foundation
			Karnataka	Rajasthan, Tamil	Bhind, Bhiwadi,
				Nadu, Haryana,	Thiruvallur,
				Uttarakhand,	Chennai, Mewat,
				Uttar Pradesh and	Kashipur, Noida and
				Karnataka	Bengaluru
3	Environment	(iv)	Yes	Gujarat, Rajasthan	Bharuch, Bhiwadi	0.36	No	SRF	CSR00000733
	Programs							Foundation
4	SRF Vidyalaya,	(ii)	Yes	Haryana	Gurugram	3.75	No	SRF	CSR00000733
	Gurugram							Foundation
5	SRF Vidyalaya,	(ii)	Yes	Tamil Nadu	Chennai	7.67	No	SRF	CSR00000733
	Manali							Foundation
6	Promotion of	(i)	Yes	Madhya Pradesh,	Bharuch, Nalcha,	1.08	No	SRF	CSR00000733
	Health Care			Gujarat	Dhar, Khargone,			Foundation
					Barwani, Khandwa,
					Dewas, Indore,
					Shajapur,Ujjain
7	Promotion of Olympic Sports	(vii)	Yes	Delhi	Delhi	0.40	No	The Delhi Golf Club	CSR00002962
8	Other CSR
	Projects
8A	Disaster	(xii)	No	Odisha, Assam	Balasore,	0.56	No	SRF	CSR00000733
	Management				Kendrapara			Foundation
8B	Education	(ii)	Yes	Delhi, Rajasthan	Delhi, Bagar	0.60	No	SRF	CSR00000733
								Foundation
8C	Health	(i)	No, except	Delhi, Assam,	Delhi, Gauhati,	0.62	No	SRF	CSR00000733
			Delhi &	West Bengal,	Kolkata,			Foundation
			Tamil Nadu	Gujarat,	Ahmedabad,
				Karnataka, Tamil	Vadodara,
				Nadu, Goa,	Bengalore,
				Andhra Pradesh,	Chennai, Delhi,
				Rajasthan,	Goa, Hyderabad,
				Maharashtra,	Jaipur, Kolkata,
				Jammu & Kashmir,	Jaipur, Kolkata,
				Uttar Pradesh	Mumbai,Pune
8D	Sports	(vii)	Yes	Delhi	Delhi	0.29	No	SRF	CSR00000733
	Development							Foundation
9	Promotion of	(v)	No	Pan India	-	1.92	No	SRF	CSR00000733
	Art & Culture							Foundation
	TOTAL					28.60

(d) Amount spent in Administrative Overheads: Nil

(e) Amount spent on Impact Assessment, if applicable: ` 0.03 Crore

(f) Total amount spent for the Financial Year (8b+8c+8d+8e): ` 28.63 Crores

(g) Excess amount for set off, if any: ` 0.07 Crores

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Sl. Particular Amount
No. ( in Crores) (i) Two percent of average net profit of the company as per section 135(5) 28.56 (ii) Total amount spent for the Financial Year 28.63 (iii) Excess amount spent for the financial year [(ii)-(i)] 0.07 (iv) Surplus arising out of the CSR projects or programmes or activities of the previous NA financial years, if any (v) Amount available for set off in succeeding financial years [(iii)-(iv)] 0.07 (a) Details of Unspent CSR amount for the preceding three financial years: Sl. Preceding Amount Amount spent Amount transferred to any fund Amount remaining No. Financial transferred to in the reporting specified under Schedule VII as per to be spent Year Unspent CSR Financial Year section 135(6), if any in succeeding Account under ( in Crores) financial years
section 135 (6) ( in Crores) (in ) Name of the Amount Date of
Fund (in ` ) transfer
1 2020-21 - - Clean Ganga 0.37 Sep 28, 0.00
Fund 2021
2 2021-22 - - - - - -
3 2022-23 - - - - - -
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9. (a) Details of Unspent CSR amount for the preceding three financial years:

(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):

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(1) (2) (3) (4) (5) (6) (7) (8) (9)
Sl. Project ID Name Financial Project Total Amount spent Cumulative Status of
No. of the Year in duration amount on the project amount spent the project
Project which the allocated in the reporting at the end -
project was for the Financial Year of reporting Completed
commenced project (in ) Financial Year /Ongoing (in ) (in ` )
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STATUTORY REPORTS

FINANCIAL STATEMENTS

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	Mobile Health Van	SRF Vidyalaya	SRF Vidyalaya, Manali
			Building, Gurgaon
(b)	Date of creation or acquisition	March 17, 2023	March 31, 2023	March 23, 2023
	of the capital asset (s)
(c)	Amount of CSR spent for	23,60,190/-	3,43,62,563/-	7,66,95,710/-
	creation or acquisition of
	capital asset
(d)	Details of the entity or public	SRF Foundation	SRF Foundation	SRF Foundation
	authority or benefciary under
	whose name such capital asset
	is registered, their address
	etc.
(e)	Provide details of the capital	D-2/1, Dahej – II,	SRF Vidyalaya,	Manali Village,
	asset(s) created or acquired	Dahej Industrial	Block-Q, Sector 40,	Thiruvottiyur taluk,
	(including complete address	Estate, Bharuch,	South City – I,	Tiruvallur District,
	and location of the capital	Gujarat – 392 130	Gurgaon, Haryana	Tamil Nadu - 600 103
	asset):		– 122 001

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 reported.

Sd/Sd/- Ashish Bharat Ram Kartik Bharat Ram Date: May 09, 2023 Chairman & Managing Director Joint Managing Director and Place: Gurugram Chairman CSR Committee

Joint Managing Director and

Chairman CSR Committee

Annexure III to the Board’s Report

ESPS Disclosures

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 2022-23:
(a) Date of shareholders’ approval: March 26, 2018
(b) Number of shares issued: 3,800
(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 Details of
Allotment Allotment Allotment
during FY during FY during FY
2018-19 2021-22 2022-23
----- End of picture text -----

The	details of the number of shares issued under ESPS	60,000#	1,95,000	3800
The	price at which such shares are issued	`10/-\|`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	3800 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	None
	year amounting to 5% or more shares issued during
	that year;
(iii)	identifed employees who were issued shares during	None	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	`6,00,000\|`19,50,000	`38,000
	shares, if scheme is implemented directly by the
	company
	Loan repaid by the Trust during the year from	NA	NA	NA
	exerciseprice received

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

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

6 Any other contribution made to the Trust during the year Nil

(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 Sold during the year Transferred to the employee during the year	NIL NIL NIL
Held at the end of the year	NIL

For and on Behalf of the Board

Ashish Bharat Ram Chairman & Managing Director (DIN – 00671567)

Date: May 09, 2023 Place: Gurugram

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

THE MEMBERS OF SRF LIMITED

This certificate is issued in accordance with the terms of our engagement letter dated 6[th] May 2023
We have examined the compliance of conditions of Corporate Governance by SRF Limited (“the Company”), for the year ended March 31, 2023, 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.

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, 2023.
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.

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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.

Annexure V to the Board’s Report

SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED March 31, 2023

[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]

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.

For B S R & Co. LLP Chartered Accountants Firm’s Registration Number: 101248W/W-100022

Kaushal Kishore

Partner

Place: New Delhi Date: May 9, 2023

Membership Number: UDIN: 23090075BGYUKS6201

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

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, 2023. 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.

We report that-

a) Maintenance of secretarial records are 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.
c) We have not verified the correctness and appropriateness of the financial statements of the Company.
d) Wherever required, we have obtained the Management representation about the compliances of laws, rules and regulations and happening of events etc.
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.
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, 2023 (“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 have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended March 31, 2023 according to the provisions of:

(i) The Companies Act, 2013 (“the Act”) and the rules made thereunder;

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(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 which has been generally complied with.

During the audit period, the Company has generally complied with the provisions of the Act, Rules, Regulations, Guidelines and Standards, to the extent applicable.
(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

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.

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.

We further report that during the audit period, the members of the Company at their 51[st] Annual General Meeting held on July 21, 2022

passed a special resolution under Sections 42, 71, 179 and other applicable provisions of the Companies Act, 2013 to issue, offer or invite for secured/ unsecured redeemable non-convertible debentures in one or more tranches, aggregating upto ` 1,500 Crores (Rupees Fifteen Hundred Crores Only) on private placement basis.

For Sanjay Grover & Associates Company Secretaries Firm Registration No.: P2001DE052900

Kapil Dev Taneja Partner

CP No.: 22944 Place: New Delhi Mem. No. F4019 Date: May 9, 2023 UDIN: F004019E000277127

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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 2022-23 and ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year 2022-23 are as under:

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S. Name of Director/KMP and Designation % Increase in Ratio of remuneration
No. Remuneration in of each Director to
the Financial Year median remuneration
2022-23 of employees
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1	Ashish Bharat Ram	67.46%	395.70
	Chairman and Managing Director
2	Kartik Bharat Ram Joint Managing Director	73.11%	400.08
3	Pramod G Gujarathi	5.75%	4.26
	Director (Safety and Environment) and Occupier
4 5	Tejpreet S Chopra Non-Executive Director Lakshman Lakshminarayan	(1.43%) 10.82%	3.83 3.98
	Non-Executive Director
6	Vellayan Subbiah	(0.53%)	3.50
	Non-Executive, Non-Independent Director
7	Bharti Gupta Ramola	11.40%	3.98
	Non-Executive Director
8	Yash Gupta	(3.77%)	3.78
	Non-Executive Director
9	Puneet Dalmia	3.76%	3.57
	Non-Executive Director
10	Raj Kumar Jain1	NA	3.72
	Non-Executive Director
11	Prashant Mehra	39.59%	Not Applicable
	President & CEO
	(Packaging Films Business, Coated Fabric &
	Laminated Fabric)
12	Prashant Yadav	39.72%	Not Applicable
	President & CEO
	(Fluorochemicals Business and Technical Textile
	Business)
13	Anurag Jain	41.58%	Not Applicable
	President & CEO
	(Speciality Chemicals Business and CTG)
14	Rahul Jain2	39.88%	Not Applicable
	President & CFO
15	Rajat Lakhanpal	25.27%	Not Applicable
	Sr. VP - Corporate Compliance and Company
	Secretary

(ii) The median remuneration of employees of the Company as on March 31, 2023, was 0.054 Crores as compared to 0.050 Crores as on March 31, 2022. The increase in median remuneration was 8.12% as compared to 2021-22.
(iii) There were 7171 permanent employees on the rolls of the Company as on March 31, 2023.
(iv) Average percentage increase already made in the salaries of employees other than the managerial personnel in the last financial year i.e. 2022-23 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	Average Increase
	Employees’ remuneration (other than Directors)	11.44%
	Managerial remuneration(Directors)3	14.09%

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.

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

Notes:

For the purposes of calculation of remuneration, the Gratuity amount calculated has been taken as per actuarial data. i.e., the difference between the gratuity provision as on March 2023 and March 2022. This was taken at 5% of basic salary till the last year.

Other Notes:

1Non-Executive Director appointed on May 9, 2023.

2Remuneration excludes perquisite value of shares issued under Part B- SRF ESPS, 2018 of the SRF Long Term Share Incentive Plan, 2018 during the previous year and the current year and tax paid thereon by the company. The percentage increase in remuneration including the above is given below:

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Name Designation % Increase in Remuneration
in the Financial Year 2022-23
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Rahul Jain	President & CFO	(36.3%)
3Average increase is calculated basis the remuneration of Directors published last year.
		For and on Behalf of the Board
		Ashish Bharat Ram
Date: May 9,	2023	Chairman and Managing Director
Place: Gurugram		(DIN – 00671567)

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Annexure VII to the Board’s Report

Saved 0.93 lac unit of electricity by optimization through VFD all the plants.

Conservation of Energy – Measures taken:

1. SCB Bhiwadi

Savings of 96.7 MT of steam ( ` 3 Lacs) by controlling steam pilferage
Saved 0.2 lac units of electricity by modifying the gland-technique of cooling water pumps with mechanical seal arrangement resulting in reduction of the power load on motors.
Savings of 676 MWH ( ` 68 Lacs) due to better energy management in equipment
Saved 0.3 lac units of electricity by reducing the office load from centralized system and transferring it to more controllable Split Air conditioners in plant buildings.
Water conservation of 5 KL/day (~ ` 0.3 Lacs/annum) by various water saving & control measures implemented at site
HSD saving of 1KL/day (~ ` 0.3 Lacs/annum) with process optimization techniques
- Saved 0.25 lac units of electricity by installing high efficiency motors in place of old conventional efficiency class motors.

2. SCB Dahej

Saving of 2204 MWH (~ ` 198 Lacs/annum) by modification of Brine chillers
Saved 0.08 lac units of electricity by replacing old conventional luminaires with new LED luminaires.
Saving of 570 MWH (~ ` 51 Lacs/annum) by improvement in Water chiller

4. FCB Dahej

  - Saved 4.89 lac units of electricity by optimizing the size of expansion valve.

Saving of 276 MWH (~ ` 25 Lacs/annum) by improving power factor
Saved 2.19 lac units of electricity by optimizing compressor load.
Saving of 47 MWH (~ ` 4.2 Lacs/annum) by usage of better efficiency motors
Saved 0.90 lac units of electricity through installation of LDR switch/timer in plant lighting and replacing conventional light with LED light.
Savings of 53 MWH (~ ` 4.8 Lacs/annum) by installing energy efficient lights
Savings of 22 MWH (~ ` 2 Lacs/annum) due to timer automation in the plant
Saved 0.78 lac units of electricity by installing energy efficient fan in cooling tower.
Savings of 457 MWH (~ ` 41 Lacs/annum) by operating UPS in ECO-Mode
Saved 3.93 lac units of electricity by installing modulator which resulted in maintaining steady pressure.
Water conservation of 160 KL/day (~ ` 36.7 Lacs/annum) by using of recycled water in cooling towers
Saved 2 lac units of electricity by installing level switch in ETP which resulted in ETP pump operating at optimum load.

3. FCB Bhiwadi

Saved 74.8 MT of LSHS by recovering waste heat of exhaust in Hot Air Generator (HAG) in AHF Plant.
Saved 1.48 lac units of electricity by installing VFD in process gas compressor.
Saved 1.45 lac units of electricity by replacing old motors with energy efficient motors.
Cooling Tower Motor 55KW VFD provided for Energy savings, leading to saving of 84000 units / annum

5. Packaging Film Business, Indore (SEZ)

8. Laminated Fabrics Business, Kashipur

Saved 5,77,500 KWH/annum through stoppage of 600 TR Cooling tower fan & pumps by improving performance of 1200 M3/Hr Cooling Tower & merging of their headers.
Saved 62.2 MT/annum of furnace oil by utilizing heat of husk fired thermic fluid heater of Unit1 by install new heat exchanger at unit 2.
Saved 99,000 Kwh/annum electric energy by Converting Cold Lamination Line CL-2 into swing Semi–Hot Lamination Line.
Saved 98120 KWH/annum through stoppage of Line I Gravure roll cooling water pumps, Extruder Cooling Pumps, Torque Motor Cooling water pumps by utilizing spare cooling capacity from Close Loop Cooling Tower of Line I.
Saved 8760 Kwh/annum electric power by installing Transparent Polycarbonate Roofing Sheet at the Lamination & calender Machines shop floor to utilize daylight in place of electric lights.

Saved 63,000 KWH/annum Chilled Waterpower for Line-1 Main extruder screw by modification in main extruder screw pipeline.

9. Technical Textile Business – Gwalior

 - Savings 656 MWH by Installation of Energy Efficient Chiller,

 - Savings 167 MWH by Installation of Energy Efficient Pumps (6 nos.)

 - Savings 15 MWH by Reduction in refrigeration power by replacing Chilled water coils of twisting air washer in Mar’23.

 - Reduction in LNG consumption by providing magnetic resonator and optimizing start up time.

Saved 3,60,000 KWH/annum by converting Line I Main & Co-extruder conveying system from dense phase (compressed air system) to lean phase (root blower system).
Saved 1,35,000 KWH/annum by converting Resin conveying system from dense phase (compressed air system) to lean phase (root blower system).

6. Packaging Films Business, Kashipur

Saving of 94,608 KWH/annum through Installation of VFD on circulation pumps and FD fan.

10. Technical Textile Business – Manali

Savings of 226 MWH by installation of latest technology Electronic commuted fans for Air Handling Units instead of conventional fan
Saving of 450 KWH/annum by replacing all florescent lamps with LED.
Saving of 2,220 KWH/annum by partially  Saving of 1,188 MWH in chiller power sharing Close Loop Cooling Tower load for by utilization of Energy efficient chillers metallizer in place of refrigerant load. (Specific power consumption reduction from 0.76 kwh/TR to 0.523 kwh/TR).

7. Coated Fabrics Business

Saving of 22.8 MWH Installation of Energy efficient fan at Mcquay cooling tower 3[rd] cell.
DOP Blower motor 45 KW, Pulley and Belt changed, leading to saving of 12,600 units / annum.

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11. Technical Textile Business – Gummidipoondi

Savings of 734 MWH by Optimization of chiller and auxiliary operations resulting into a saving of chiller power
Savings of 61MWH by Improvement in SPC of compressed air from 0.137 kwh/Nm3 to 0.135 kwh/Nm3
Savings of 382MWH by EC fans installation in weaving, PIY panel room Air handling units & optimized running pattern of supply and return air fans based on head load and ambient conditions

12. Technical Textile Business – Viralimalai

Saving of 31.58 MWH achieved by optimization of motors efficiency.
Saving of 3.77 MWH by optimization of lighting system

Capital Investment on Energy Conservation Equipment:

SCB Bhiwadi:

VFD provision and piping\equipment modifications: ` 7.5 Lacs
High Energy efficient steam traps for high steam consuming equipment: ` 1.2 lacs

SCB Dahej:

Installation of timer automation in plant: ` 2 Lacs
Replacement of 250W CFL by LED lights: ` 1.5 Lacs
Installation of IE3 Motors in plant: ` 5.2 Lacs

PFB SEZ:

Upgradation of BOPET Line I with high ratings of motors, new Torque motors & latest Siemens drives, Sinamics software & Scada system: ` 2,653.96 Lacs
Metallizer I Upgradation: ` 67.06 Lacs
Upgradation of EREMA screen changer Line I: ` 130.08 Lacs
Installation of 12 MM band pinning band system for line 2: ` 72.30 Lacs

PFB DTA:

IOT on Chiller and Compressor for improvement of efficiency through running optimization: ` 32.12 Lacs
BOPET Line upgradation: ` 340.66 Lacs
Piping infrastructure for utilization of PNG in Hypox filter cleaning system to replace unsafe LPG cylinders utilization: ` 4.78 Lacs

TTBM:

Installation of 3.085 MWp -DC Solar Power plant ₹11.19 Cr
Replacement of old Trane chiller with an energy efficient new 1000tr chiller ₹1.75Cr

TTBG:

Installation of 1.28 MWp-DC Solar Power Plant ₹ 4.54 Cr
Installation of Energy efficient mono block fans for return air fans of twisting air washer plant 1& 2 ₹ 0.70 Cr
Installation of energy efficient chiller-1 no. ₹ 1.56 Cr
Installation of ash handling system at coal boiler ₹ 0.59 Cr

TTBT:

Installation of 3.4 MWp-DC Solar Plant ₹ 11.53 Cr

TTBV:

Installation of 0.7 MWp-DC Solar Plant ₹ 2.80 Cr

Technology Absorption (FY2022-23)

In the rapidly evolving world of Specialty Chemicals, the Business continues to focus on technology development and deployment as a key component of its growth strategy. During the year, there were
Strengthening the value chain by producing some RMs in-house

To capitalize on these opportunities, the Business invested in technology absorption initiatives that enhanced product offerings, improved efficiency, and reduced environmental footprint. The Business invests in the inhouse R&D to develop new and innovative products in Pharma and Agrochemicals segments that meet the evolving needs of the customers. The in-house R&D efforts are focused on advanced intermediates, sustainable technologies, and reliable supply chains that enhance the product quality, reduce costs, and improve competitiveness.

Improving capacities and in-process norms

Focus on automation to improve process robustness and costs
Strong emphasis on waste generation minimization and ensuring process safety

The Business is committed to continuous technological innovation and advancement to meet the evolving needs of the customers and contribute to a sustainable future. The absorption of new technologies is targeted to expand the product portfolio, improve processes, and enhance the sustainability of operations. The Business would continue its efforts to maintain its leadership position in the specialty chemicals market and deliver long-term value to the stakeholders.

The Business continues to focus on the latest manufacturing technologies and practices to optimize production processes and increase efficiency. This includes implementing automation and digitization initiatives to streamline operations, as well as investing in new equipment and infrastructure to continue on the growth journey.

C) Foreign exchange earnings and outgo

SRF is committed to reducing the environmental footprint. During the year, investment in technologies were done to enable waste minimization, reduce energy consumption, and improve the sustainability of the products. The Business witnessed increased demand for its key products apart from catering to the developmental needs of the new intermediate products. To cater to this demand, the Business invested in the best technologies to augment the assets in both dedicated and flexible manufacturing facilities at its sites at Bhiwadi and Dahej.

( ` in Crores)

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Particulars Year ended Year ended
March 31, 2022 March 31, 2023
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Foreign	4,614.26	6,035.65
Exchange Earnings Foreign	3,114.78	3,487.15
Exchange outgo Net Foreign	1,499.48	2,548.50
Exchange
Earnings

Some of the areas where technology has been absorbed in this period are:

For and on Behalf of the Board Ashish Bharat Ram

Improvements in processes in reducing, recycling and reusing resources
Development of novel cost-effective routes for Date: May 9, 2023 Chairman & Managing Director both new and existing products Place: Gurugram (DIN – 00671567)
Water treatment infrastructure for deseveral exciting opportunities for innovation and metallization process wastewater: ` 49.31 expansion in the Specialty Chemicals space. Lacs

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MANAGEMENT DISCUSSION & ANALYSIS

In the following pages, the Management will provide its perspective on the operating and financial performance of the Company during FY23 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 and overseas. 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

Despite challenges, FY23 has been a stable year for the Technical Textiles Business. In the first half of the year, the TTB witnessed the easing of global supply chain issues. However, the Business faced headwinds in H2 due to cheap imports from China, which impacted business results.

Tyre Cord Fabrics (TCF)

The demand for Nylon Tyre Cord Fabric (NTCF) remained weak during the year due to several factors, including impact of increased radialisation in commercial vehicle Original Equipment (OE) segment, decline in two-wheeler tyre sales, and high imports. In addition, exports were impacted due to unfavourable economic situation in Sri Lanka & Bangladesh.

Having said that, the Business was able to partly offset the drop in NTCF sales volumes with a successful foray into Nylon Yarn sales in the domestic and overseas markets.

In terms of the environmental and social responsibility initiatives, the Business commissioned solar power plants, totalling a capacity of 8.5 MWp, further supporting sustainability and cost reduction.

Belting Fabrics (BF)

With healthy growth witnessed in core sectors of coal, steel, cement, and power generation, the demand for Belting Fabrics was strong during the year, registering record production and sales. While cheap imports from China remained a challenge, the BF segment

could largely remain insulated due to an increase in the sales of high-end, Value-Added Products (VAPs) and expanded sales to tier-2 customers.

During the year, the BF segment commissioned its Solid Woven plant, further enhancing its product portfolio. In addition, the Board approved a capex for BF capacity expansion from 1,100 to 1,800 Metric Tonnes Per Month within the next three years.

Polyester Industrial Yarn (PIY)

During the year, the demand for PIY remained weak due to aggressive pricing from Chinese manufacturers, resulting in a severe pressure on margins.

In the ensuing months, the PIY segment is looking to consolidate its product mix and is also expected to gain from the projected capacity expansion in FY24.

Outlook

While we expect to see some green shoots on the back of a resilient Indian economy, the margins of the Tyre Cord Fabrics segment will remain under pressure due to cheap imports from China. We will focus on building our volumes. Having said that, we remain optimistic about the growth of the Belting Fabrics segment as additional capacity comes on stream.

Chemicals Business

The Chemicals Business comprises two different product segments, namely Fluorochemicals and Specialty Chemicals.

Fluorochemicals

Refrigerants, Propellants and Industrial Chemicals

FY23 began on a volatile note, with uncertainties on account of raw material and energy prices, bottlenecks in supply chain and high inflation rate.

Having said that, the Business achieved significant growth across all its product segments due to surge in the post-pandemic domestic demand. Demand in international markets was healthy, despite the cheap prices offered by the Chinese manufacturers. In addition, commodity prices eased out in the latter part of the year, aiding further growth.

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QA Lab at SRF Dahej, India

Industrial Chemicals market remained stable, however prices dropped due to an oversupply situation resulting from additional capacities kicking in. The Dymel®/Propellants segment performed well because of increased market share, due to healthy demand and expansion in new geographies.

During the year, the Business witnessed safe and stable plant operations, with highest-ever production in most plants. The Business also commissioned new plants, namely, chloromethanes, calcium chloride and a Captive Power Plant (CPP) at its chemical complex in Dahej, India.

Overall, it was a year of stabilisation and growth post-COVID. The business performance was healthy and higher than last year.

Outlook

In FY24, the Indian economy is expected to grow, and global inflation is likely to come down. Hence, the demand momentum should continue in the coming year especially in the domestic market for all products. With the addition of new capacities and better utilisation, the Business is poised to grow in the coming year. Furthermore, we expect to commission new plants and increase our overall HFC

capacities. In addition, we will also commission our new Fluoropolymers plant at Dahej in FY24.

Specialty Chemicals Business

FY23 has been a good year for the Specialty Chemicals Business (SCB). The Business maintained its growth momentum, despite being impacted by high input costs and global shortage of some key raw materials. The growth was primarily driven by an increase in demand for crop protection chemicals.

During the year, the Business focussed on the customers’ key products and their developmental project requirements, while ensuring the production capacities were optimally utilised. This ensured continuity of customers’ supply chain amid an uncertain environment of raw material availability triggered by disruptions in Europe. The combined effort of all the teams ensured that the Business maintained its growth trajectory and continued advancing on its key strategic priorities.

The SCB is committed to continue investing in setting up new plants to cater to the emerging demands from customers. Both sites at Bhiwadi and Dahej delivered improved operational efficiency from existing plants while managing an expanded portfolio of new products.

Furthermore, our ‘Innovation and Technology Leadership’ journey continued with the launch of several new Agrochemical and Pharma Intermediates. In addition, production capacities of several plants were enhanced, while working on continuous improvements in the plants at both the sites.

The Business continued to focus on increasing sourcing of raw materials from sustainable and environmentally responsible sources. The Business also implemented various initiatives to reduce its carbon footprint, such as optimising energy consumption and reducing greenhouse gas emissions.

The efforts of the Business in strengthening its capabilities and developing expertise in new chemistries have helped it to differentiate itself from its competitors. To address some of the future product requirements and to keep pace with the market opportunities, the fourth state-of-the-art Multipurpose Plant and a new Pharma Intermediates facility were commissioned apart from other Intermediates Plants. During the year, the Board approved the construction of a number of plants for upcoming products and some of the critical feedstocks at Dahej. The Board also approved a Kilo-Lab at Bhiwadi to supply small quantities to customer for scale-up and product qualifications. The Business continues to make investments toward safer, cleaner, and leaner operations, and further strengthen its sustainability initiatives.

Outlook

The Specialty Chemicals Business continues to remain focussed on Agrochemical and Pharmaceutical segments, where it collaborates with major global innovators for process development, commercialisation, and production of complex, new age molecules. The Business expects to continue

expanding its product portfolio on the back of sustainable value chain and remain focussed on strengthening its position in the existing markets.

With sustainability and environment at the heart of product development, the Business will continue in its endeavour to deliver better value to its customers. It remains committed to invest in emerging and futuristic technologies, while focussing on operational excellence to grow sustainably.

Chemicals Technology Group

The Chemicals Technology Group (CTG) is committed to introducing new technologies and developing cost effective routes for existing and next generation products for the growth of the Specialty Chemicals and Fluorochemicals Businesses.

During the year, CTG continued to boost its capabilities and added new technologies, to support the Businesses. The centerpiece of the sustained growth momentum was technological advances and breakthroughs achieved by our team of researchers and scientists. CTG continues to transform innovation in new product/process development and implement cutting edge technology at SRF, spearheading both the Specialty Chemicals and Fluorochemicals Businesses 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 introducing new chemistries and 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. CTG is committed to the journey of continuous process improvement and developing more efficient processes by tapping novel chemistries and scaling them up for successful commercialisation.

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 ~ ` 120 crore was spent during FY23.

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Outlook

Our Packaging Films facility in Thailand

R&D worked on over 50 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.

In FY23, CTG filed forty-two patents, taking the total count to four hundred and six patents filed so far. Eighteen patents were granted in FY23 taking the total count of patents granted to the Company to one hundred and thirty-two.

Packaging Films Business

FY23 has been a roller-coaster ride for the Packaging Films Business (PFB). During the first quarter of the FY, the Business made its highest-ever quarterly EBITDA. In Aug ’22, PFB commissioned its new 10.4m BOPP line at Indore, India and managed to ramp it up vertically during the year. However, market conditions were extremely difficult from second quarter onwards as several new lines of BOPET and BOPP got commissioned during the period.

Overall, the Business achieved its highest-ever packed production of approximately 3,20,000 MTPA during the year while also focussing on intensive cost

rationalisation as the business environment remained difficult. Enhancing business profitability through the development of VAPs has been a major thrust area. Our manufacturing capability in VAPs has been enhanced with the addition of paper metallisation, Alox Coating and Offline Coating assets and the new BOPP line, which has given us the flexibility to manufacture a wider BOPP portfolio. The Business successfully commercialised 10 new VAPs, 4 in BOPET and 6 in BOPP during the year, strengthening its VAPs portfolio.

Work on the upcoming Aluminium Foil project in India is progressing well and timely vertical start-up of the rolling mills will be an important focus area for the Business in the coming Financial Year.

The Business is driven by its philosophy of – Easy To Do Business With (ETDBW), and the team remains focussed on serving customers every day. Additionally, sustainability continues to be amongst the top priorities for the Business. Further development of sustainable products and compliance with the new Plastic Waste Management rules will be a key focus for us going forward.

Margins in both BOPET and BOPP are likely to remain under pressure as new lines have been added and several more lines are in the pipeline. In FY24, SRF’s primary focus will be on profitability enhancement and further rationalisation of operating cost and working capital in the Packaging Film Business. We will commission our new Offline Coating machine in Thailand and leverage our capabilities fully to further enhance our VAPs portfolio. Efforts will be directed towards vertical start-up of production and sales of Aluminium Foil in India. With the commissioning of our new Aluminium Foil plant, we will be amongst very few players globally who offer a wide portfolio of packaging substrates - BOPET, BOPP and Aluminium Foil under one roof. We will continue our work on various sustainability initiatives driven by the ‘3R’ approach - Reduce, Reuse and Recycle. During the year, we will keep a close watch on the macro scenario and will be flexible to adapt our strategy accordingly.

Other Businesses

Coated and Laminated Fabrics Businesses

FY23 has been a good year for the Coated Fabrics Business. Domestic demand, particularly for VAPs

Our Belting Fabrics facility in Viralimalai, India

With the commissioning of our new Aluminium Foil plant, we will be amongst very few players globally who offer a wide portfolio of packaging substrates - BOPET, BOPP and Aluminium Foil under one roof.

remained strong, which helped the Business achieve its highest-ever domestic sales. Business made highest-ever EBITDA during the year. SRF continued to maintain its domestic market leadership in Coated Fabrics. Business also continued its price and volume leadership in the Laminated Fabrics Business by selling at full capacity and achieving its highest-ever sales during the FY. However, margins remained under pressure in Laminated Fabrics as costs increase could not be passed on completely to the customers due to excess supply.

Outlook

In FY24, we expect demand to remain strong for both Coated Fabrics and Laminated Fabrics. In Coated Fabrics, the focus will be to enhance capacity and increase sales during the year. The Business will also continue to work on various cost reduction initiatives for both the businesses.

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Human Resources

At SRF, the Human Resources (HR) function has evolved significantly over time. The function has always been determined to build best-in-class people processes that continue to enhance creativity of people. Our focus remains on building and strengthening a culture that keeps people at the core of all decisions while setting new benchmarks in profitability and productivity. With this ambitious goal, the HR team has had yet another successful year with a number of key accomplishments and initiatives being implemented.

The post pandemic world is different and in multiple ways; priorities have undergone a sea change. As an organisation, we’ve always maintained sync with what people want. As a step in this direction - the organisation focussed on implementing practices and policies that encouraged people to place a higher importance on health and wellness.

This year also witnessed an enhanced focus on building a culture that allows diversity to flourish and is inclusive in the truest sense. Making the organisation completely inclusive is a long-term journey that we have embarked upon and there is no looking back. Several changes were brought about that ensured

Our team at SRF Flexipak, South Africa

a safe and conducive environment for all people irrespective of their gender, sexual preferences, caste, regional backgrounds, abilities, etc.

With years of continuous effort, we’ve been able to craft a unique and comprehensive performance management system that helps teams work to their potential by providing them necessary support and guidance. The system achieves a perfect balance between development, growth, rewards, conversations and strengthens the manager-subordinate relationships. With a high level of emphasis being placed on providing developmental and career growth opportunities, the organisation is able to promote meritocracy and build fairness and transparency. When it comes to salaries and benefits, SRF stands out for its competitive position in the market.

Not just the HR function but also the use of technology in the function has evolved over time. Today, a large majority of our people processes are completely automated.

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, motivated, involved in the success story of the organisation and completely committed to our cause. Various initiatives were implemented at the plants that encouraged participation and collaboration of not just employees but also of their families. 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 total number of permanent employees at SRF and its subsidiaries/parent company stands at 7,971 at the close of business on March 31, 2023. Of these, 7,227 are based at our India locations.

Information Technology

As SRF plans for future growth, it is essential for core operations systems to work efficiently with increasing levels of automation leading to improved productivity and competitiveness. The systems have been designed appropriately to extend seamlessly to new factories with similar processes and standards.

In line with this vision, core systems like ERP, BPM-Business Process Management, ASCP-Advanced Supply Chain Management system underwent a generational upgrade to extend the support window by principals, leading to better availability, stability, and security. Many process improvements were done using the new features and functionalities of recent version releases, while also addressing pending operational issues of business teams. The technical stack was also upgraded and optimised to consume lesser resources while providing higher output at a faster pace. All this led to a substantial improvement in time taken to do basic transactions leading to higher throughput of operations teams. This enabled the staff to take on additional workload of our expansions.

SRF values its relationships with customers and vendors, continuously striving to improve the efficiency of operations and interactions. Our customer portal helps customers get an overview of their ongoing and past transactions with SRF. This solution was

An integrated CRM-Customer Relationship Management solution was rolled out in Fluorochemicals Business and Technical Textiles Business aimed at helping the sales team service their customers promptly.

improved further and extended to more businesses this year. An integrated CRM-Customer Relationship Management solution was rolled out in Fluorochemicals Business and Technical Textiles Business aimed at helping the sales team service their customers promptly. A supplier procurement and portal solution was implemented in Specialty Chemicals Business this year as a pilot. This platform was used to close a lot of deals and share information to supplier related to their transactions with SRF.

Manufacturing operations stands to gain from advancements in Industrial Internet of Things (IIOT). Over the years, SRF has done multiple implementations of solutions using factory systems data, sensor data, trend analysis, AI/ML algorithms. These projects helped improve machine state visibility, efficiencies, throughput, and uptime. Process Input/ Output norms were also enhanced in some cases. Visual analytics is helping us detect any defects in the manufacturing process. These are also helping us optimise energy utilisation thereby helping us attain our sustainability and ESG commitments.

SRF increased its portfolio of security solutions in line with regulatory requirements as well as to suitably address the enhanced threat perception. Security incidents and events monitoring solution was implemented and is being monitored 24x7 by a specialist security organisation. We are also implementing a Privileged Access Management solution that will ensure that only authorised technical staff when authorised can reach the technical layer of IT solutions.

We are enhancing our citizen analytics and development capability using low code/no code tools. Many employees outside IT were able to develop insightful dashboards and micro process automations to help streamline their department operations. We will now be increasing our investments in Cloud technologies to plan for the next phase of growth.

Community Partnerships

Building upon its longstanding commitment to sustainable and inclusive community growth, the SRF Foundation - the Corporate Social Responsibility arm of SRF Limited - has expanded the scope of its work and taken concrete steps in compliance with Section 135 of the Companies Act 2013 during FY23.

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465 Government schools across 24 locations in 12 states directly and indirectly by collaborating with like-minded partners, providing quality education to over 1,78,702 students, and training 3,397 teachers and 465 headmasters.

To promote digital inclusion, the SRF Foundation is working on KidSmart Centres, World on Wheels & SmartShiksha Mobile Digital Labs, Common Services Lab, and Digital Smart TV Classroom Programs in the intervention locations. In addition, the SRF Foundation is committed to transforming schools into centres of innovation through future skills programs such as the SRF Vidyalaya, Chennai, India Tinker Coding Program, ATAL Community Innovation Centres, and ATAL Tinkering Labs.

The Foundation continued to focus on the identified areas of Education, Vocational Skills, Health Promotion, Environment, Disaster Management and Promotion of Arts and Culture on a sustainable basis. Moreover, it strengthened its Public Private Community Partnership (PPCP) model to positively impact people’s lives.

FY23 witnessed the strengthening of the Foundation’s Education Programs. SRF Foundation transformed Government schools into dynamic centres of education, turning them into “Model Schools” by working in the areas of physical-infra development, digitalisation, academics, and school leadership development. Presently, we have reached

Regarding vocational skills, the SRF Foundation integrated school dropouts, unemployed youth, and women into the mainstream workforce by equipping them with appropriate skills to meet the demands of the supply chain. Through the vocational skills programs, such as the Basic Electrician Training

Program, Basic Computer Literacy Program, Spoken English Program, and Nari Shakti Program, we have trained 1,785 unemployed youth from 13 locations across 8 states, and 50% of them have been placed in national and multinational companies. In addition, 7,235 people in rural locations have received training in digital skills and 259 women have been trained in fashion designing and beautician trades.

SRF Foundation undertook several new initiatives this year to improve employability, health, and digital skills among the community. We introduced ‘SmartShiksha’ mobile digital labs in Mewat, Bharuch, Kamrup (M), Dhar, and Kashipur, offering a mobility solution to bridge the digital divide in rural locations. By partnering with Microsoft and Shell, we introduced ‘Skills for Livelihood – Digital Skills for ITI & Polytechnics (non-IT trades),’ which will benefit 5,000 ITI and Polytechnic students in skill development and employability across various parts of the country.

To promote community health, we introduced two new programs, the ‘Rural Health Program (RHP)’ and ‘SRF Swasthya Seva.’ Through RHP, we adopted a primary health centre in Nalcha (Dhar) to improve the medical practices as per ‘kayakalp standard’. Our mobile health van ‘SRF Swasthya Seva’ in Bharuch will visit 15 different villages around the Dahej plant providing health awareness, diagnose issues, and cure diseases in the community. In partnership with Amway and Opportunity International, we extended the ‘Power of 5’ project in Sohna (Haryana) and Chennai (Tamil Nadu) to support child nutrition.

Through the Natural Resource Management (NRM) program, the SRF Foundation continued to support economically weaker families in the vicinity of its Bhiwadi, Rajasthan manufacturing plant by adopting a watershed-based livelihood and environmental conservation approach. In FY23, this program

Electrician Training in progress

directly benefited over 5,249 families and indirectly supported 1,705 from 35 villages in the Tijara block surrounding the SRF Bhiwadi plant. This region receives below-normal rainfall, but the NRM program has helped maintain 206 earthen dams, ensuring their proper utilisation and providing sustainable benefits.

Furthermore, we undertook Assam flood relief work in several locations, including Nalbari, Bajali, Kamrup, and Barpeta. We provided 171 tents to 772 individuals affected by the floods. During FY23, the SRF Foundation funded fourteen NGOs for sixteen social projects in education, sports, health, and environment.

In recognition of our efforts in education programs, the SRF Foundation was honoured with three prestigious awards during the year, including the Mahatma Award 2022 for social impact in promoting quality education, the Bhamashah Award 2022 for CSR intervention in Education (Rajasthan), and the ICC Social Impact Award 2023 for the promotion of education.

Internal Control System and Internal Audit

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.

Preventive Health Check Camp

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A robust Control Self-assessment (CSA) process enables process owners to perform self-assessment and promote self-compliance in accordance with laid down policies and procedures, regulatory environment through IT-enabled platform such as CSA tool and Compliance Manager.

The Company has a well-established independent Internal Audit & Risk Management function which drives and coordinates for the Internal Audits, Internal Financial Controls and Enterprise Risk Management System. These frameworks are supported by a well-defined organisation structure, roles and responsibilities, documented policies and procedures, financial delegation of authority, ERP controls, among others.

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 Internal Audit team 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.

Internal Audit reviews are conducted on an ongoing basis, based on a comprehensive risk-based audit plan commensurate with the size and nature of business activities of the Company. The Internal Audit plan is approved by the Audit Committee, which also reviews compliance to the said plan. Any significant audit observations and corrective actions thereon are presented to the Audit Committee which reviews the reports submitted by the Internal Auditors (both internal and external) in each of its meetings. Based on the gaps reported in the internal audit report, process owners undertake corrective actions in their respective areas and thereby strengthen the internal control framework. In addition, the statutory auditors also obtain reasonable assurance on the adequacy and operating effectiveness over the Company’s internal financial controls with reference to financial statements as a part of their annual audit exercise.

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 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.

Risk Management Process

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Risk Risk Risk Identification Assessment Prioritisation

Risk Risk Monitoring & Treatment Reporting

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Risk Governance Structure

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

Board of Directors (BOD)/
Audit Committee
Risk Management Committee
(RMC)
Corporate Leadership Team
(CLT)
Business Leadership Team (BLT) &
Risk Owners
----- End of picture text -----

the management, and update the Board & Audit Committee on the same

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:

The Board of Directors hold 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

3. Corporate Leadership Team (CLT):

Develop risk management framework and policy
Review key risks and mitigation action plan
Review effectiveness of risk mitigation strategies, develop counter measures if any and update the same to RMC
Review the risks that may threaten the existence of the Company

4. Business Leadership Team (BLT) & Risk Owners:

Consider the recommendation of Risk Management Committee on Risk Management Plan/Policy
Identification, classification, and prioritisation of risks into high, medium, and low as per risk management framework

2. Risk Management Committee (RMC):

Overview Company’s risk management framework and its compliance
Identify and implement risk mitigation measures
Identifications of key risks which may significantly impact the performance of the Company
Periodically review mitigation measures status, develop counter measures, if any
Provide status update of key risks to the CLT
Review of policy, key risks as identified by the management, provide guidance to

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Risk Classification

All risks have been broadly classified into the following categories:

Strategic Risk

Operational Risk

Risks arising out of Risks of loss due to macro-Economics and Inadequate manufacturing other external conditions process, insufficient which can significantly resources, inadequate impact the Company’s processes, safety or strategic business failure thereof, insufficient decision, future aspiration, skill or people and financial performance

Regulatory Risk

Risks arising out of regulatory non-compliances

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

IT and Cyber Risk

Sectoral Risk

Financial &

Reporting Risk

Potential loss due to non-availability of technical infrastructure or appropriate software technology, impact on data integrity, data theft or loss of Intellectual Property Rights (IPR) due to compromised network security

These are the risks arising out of uncertainty with respect to changes in the economic and financial scenarios that are unique to a sector or industry

Financial reporting risk arises from the evolving accounting and financial reporting requirement, increasingly complex business model, etc.

Sustainability including ESG Risk

These are the risks arising out of environmental, social or governance events or conditions that, if it occurs, could cause an actual or a potential material negative impact

During FY23, significant changes in the key financial ratios as per listing regulations were as follows:

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Ratio FY23 FY22 % Change Reason
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Interest Coverage Ratio =	13.10	19.04	(31.17%)	Largely due to increase in key
(EBDIT - Current Tax) / Gross				interest rate benchmarks, both locally
Interest and Lease payments				and globally which led to higher
				interest costs and deterioration in
				the ratio despite increase in overall
				servicing ability
Return on Net Worth =	21.87%	19.77%	10.63%	Increase in PAT by 34.26% from
PAT / Net Worth				`1,507.01 crore in FY22 to
				`2,023.35 crore in FY23

As on March 31, 2023, SRF’s Board consisted of 10 Directors, of which three are executives of the Company (including the Chairman, who is an Executive Chairman), and six are independent and one is non independent and non-executive. Table 1 gives the details of the Board as on March 31, 2023.

Table 1: Composition of the Board of Directors of SRF

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Mr. Ashish Bharat Ram	Executive	5	1	1	–	KAMA Holdings Limited –
	Chairman,					Non- Executive Director
	Promoter				–	Havells India Limited –
						Independent Director
Mr. Kartik Bharat Ram	Executive,	3	-	2	–	KAMA Holdings Limited –
	Promoter					Non- Executive Director
Mr Tejpreet S Chopra	Non-Executive,	3	1	2	–	Gujarat Pipavav Port Limited
	Independent					– Independent Director
					–	Indian Energy Exchange Ltd
						– Independent
					–	Tube Investments of India
						Ltd – Independent Director
Mr. Lakshman	Non-Executive,	0	1	-	-
Lakshminarayan	Independent

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Name of Director Category of No. of other No. of Committees Name of Listed Entities &
Director Directorships where Chairperson Category of Directorship
of Indian Public or Member (including
Ltd Co. (other SRF Limited) [#]
than SRF
Limited) Chairperson Member
Mr. Vellayan Subbiah ** Non-Executive, 5 1 2 – Tube Investments of
Non- India Ltd – Executive Vice
Independent Chairman, Promoter
– 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
Mr. Pramod Gopaldas Executive 1 - 1 – Chemiesynth (Vapi) Limited –
Gujarathi Independent Director
Ms. Bharti Gupta Ramola Non-Executive, 2 - 2 – HDFC Life Insurance Company
Independent Ltd – Independent Director,
– Tata Steels Limited –
Independent Director
Mr. Yash Gupta Non-Executive, 1 - 1 Nil
Independent
Director
Mr. Puneet Yadu Dalmia Non-Executive, 3 - 1 – Dalmia Bharat Ltd –
Independent Managing Director
Director
– Piramal Enterprises Ltd –
Independent Director
– Piramal Capital & Housing
Finance Ltd - Independent
Director
Mr Raj Kumar Jain Non-Executive, 1 - 1 – JK Agri Genetics Limited -
Independent Independent Director
Director
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Mr. Ashish Bharat Ram and Mr. Kartik Bharat Ram are related to each-other.

*Other directorships do 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 Limited Companies have been considered.

** Mr. Raj Kumar Jain was appointed as Independent Director wef 09.05.2022. Mr. Vellayan Subbiah resigned as Independent Director on 09.05.2022 and appointed as Non-Executive Non-Independent Director wef 10.05.2022.

The Board has identified the following skills/expertise/ competencies fundamental for the effective functioning of the Company which are currently available with the Board :

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Industry knowledge/experience Technical skills/experience Behavioural Competencies
a) Consulting Experience a) Accounting and finance a) Integrity and ethical standards
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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) Leading People

Skills available with Board as per skill matrix -

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Sl. Name of Director Industry knowledge/ Technical skills/ Behavioural
No. experience experience Competencies
----- End of picture text -----

1.	Mr. Ashish Bharat Ram	b,c,d,e,f,g	a,d,e,f,g	a,c,d,e,f,g,h,i
2.	Mr. Kartik Bharat Ram	b,d,e,f,g	c,d,e,f,g	a,b,c,d,e,f,h,i
3.	Mr. Lakshman	b,c,d,e,f,g	a,b,c,f	a,b,e,f,g,i
	Lakshminarayan
4.	Mr. Vellayan Subbiah	a,b,c,d,e,f,g	a,b,e,f	a,c,d,e,f,g,h
5.	Mr. Tejpreet S Chopra	b,c,d,f,g	d,e,f,g	a,c,d,e,f,g,h
6.	Mr. Pramod G. Gujarathi	b,c,f,g	b,d,	a,b,c,f,g
7.	Mrs. Bharti Gupta Ramola	a,c,d,e,g	a,d,f,g	a,c,d,f,g,h
8.	Mr. Puneet Yadu Dalmia	b,c,d,e,f,g	a,b,e,f	a,b,c,d,e,f,i
9.	Mr. Yash Gupta	a,d,e,f,g	a,c,e,f,g	a,b,c,d,e,f,h
10.	Mr. Raj Kumar Jain	a, b,c,d, e, g	a,b,c,e, f, g	a,b,c,d,e,f, g,h,i

Certificate from M/s. Rohit Parmar & Associates, Practising Company Secretary (Registration No. 22137) dated May 2, 2023, 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.

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 confirmation / disclosures received from the Directors and on evaluation of the relationships disclosed, all Independent Directors are Non-Executive Directors and are Independent in terms of Regulation 16

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Chairman of more than five committees in which they are members.

of Listing Regulations and Section 149(6) of the Companies Act, 2013.

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 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.

Independent Directors’ Meeting

In accordance with the applicable provisions of Companies Act, 2013 and Listing Regulations, a meeting of the Independent Directors of the Company was held on January 30, 2023, without the attendance of Non-Independent Directors and members of the management.

Familiarisation Programme

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/

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

Number of Board Meetings

During 2022-23, the Board of Directors met five times on the dates as referred below in Table 2.

Table 2: Attendance of directors in Board Meetings and Annual General Meeting (AGM) held during

the year in 2022-23

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Name of the Director Date of Board Meeting and Attendance of Directors Date of AGM and
Attendance of
Directors
May 9, May 30, July 21, November January July 21,
2022 2022 2022 3, 2022 30, 2023 2022
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Mr. Ashish Bharat Ram	Yes	Yes	Yes	Yes	Yes	Yes
Mr. Kartik Bharat Ram	Yes	Yes	Yes	Yes	Yes	Yes
Mr. Pramod G Gujarathi	Yes	Yes	No	Yes	Yes	No
Mr. Tejpreet S Chopra	Yes	Yes	Yes	Yes	Yes	Yes
Mr. Lakshman	Yes	Yes	Yes	Yes	Yes	Yes
Lakshminarayan
Mr. Vellayan Subbiah	Yes	Yes	Yes	Yes	No	Yes
Mrs. Bharti Gupta Ramola	Yes	Yes	Yes	Yes	Yes	Yes
Mr. Puneet Yadu Dalmia	Yes	Yes	Yes	Yes	No	Yes
Mr. Yash Gupta	Yes	No	Yes	Yes	Yes	Yes
Mr. Raj Kumar Jain	Yes	Yes	Yes	Yes	Yes	Yes

Remuneration of Directors

Table 3 gives the remuneration paid or payable to the Directors of SRF Limited for financial year 2022-23 and table 4 gives details of Service Contracts

Table 3: Remuneration Paid or Payable

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Sl. Name Salary & Sitting Perquisites Provident Fund and Commission Total
No Allowances Fees Superannuation and (Provided)/ ( ` In
leave encashment Professional Fees Crores)
----- End of picture text -----

1	Mr Ashish Bharat	8.10	-	1.04	4.23	8.00	21.37
	Ram
2	Mr Kartik Bharat	8.10	-	1.14	4.36	8.00	21.60
	Ram
3	Mr Pramod G	0.22	-		0.01	-	0.23
	Gujarathi
4	Mr. Raj Kumar Jain	-	0.04	-	-	0.17	0.21
5 6 7	Mr Tejpreet S Chopra Mr. Lakshman Lakshminarayan Mr Vellayan Subbiah	- - -	0.04 0.05 0.02	- - -	- - -	0.17 0.17 0.17	0.21 0.22 0.19
8	Mrs. Bharti Gupta	-	0.05	-	-	0.17	0.22
	Ramola
9 10	Mr. Puneet Dalmia Mr. Yash Gupta	- -	0.03 0.04	- -	- -	0.17 0.17	0.20 0.21
	Total	16.42	0.27	2.18	8.60	17.19	44.66

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 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. May 23,	3 months by either party	As per the provisions of the
	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. April 01,	1 month by either party	Nil
Gujarathi	2023 (subject to approval
	of the shareholders in the
	upcomingAGM)

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STATUTORY REPORTS

FINANCIAL STATEMENTS

Shareholding of Non-Executive Directors

Table 5 gives details of the shares held by the non-executive Directors as on March 31, 2023.

Table 5: Equity Shares held by Non-Executive Directors as on March 31, 2023

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Name of Director Category Number of Equity Shares Held
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Mr. Tejpreet S Chopra Mr. Lakshman Lakshminarayan	Independent Independent	3,335 -
Mr. Vellayan Subbiah	Non-Executive and Non-Independent	67,035
Mrs. Bharti Gupta Ramola Mr. Puneet Yadu Dalmia	Independent Independent	- -
Mr. Yash Gupta	Independent	3,200
Mr. RajKumar Jain	Independent	-

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, subsidiaries, assets, which is not in the normal course of business
Minutes of the meetings of the audit committee and other committees of the Board
Quarterly details of foreign exchange exposures and the steps taken by management to limit the risks of adverse exchange rate movement, if material
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
Non-compliance of any regulatory, statutory nature or listing requirements and shareholders service such as non-payment of dividend, delay in share transfer, etc
Materially important show cause, demand, prosecution notices and penalty notices
Fatal or serious accidents, dangerous occurrences, any material effluent or pollution problems
The Board periodically reviews compliance reports of all laws applicable to the Company, prepared by the Company as well as steps taken by the Company to rectify instances of non-compliances.
Any material default in financial obligations to and by the Company, or substantial non-payment for goods sold by the Company
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 Chairman & 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, 2023, the Audit Committee of SRF comprised of three Directors all of whom are independent, namely Mr. Lakshman Lakshminarayan as Chairman, Mr. Raj Kumar Jain and Mrs. Bharti Gupta Ramola as members. The constitution of the Committee meets the requirements of Section 177 of the Companies Act, 2013, as

166

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

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, Joint 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 2022-23 and attendance of its members.

Table 6: Attendance Record of Audit Committee Meetings during 2022-23

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Name of Category Date of Audit Committee Meeting and Attendance of Members
Members May 6, May 09, May 30, July 21, November January
2022 2022 2022 2022 03, 2022 30, 2023
----- End of picture text -----

Mr. Lakshman	Independent,	Yes	Yes	Yes	Yes	Yes	Yes
Lakshminarayan	Non-Executive
(Chairman)
Mr. Vellayan	Non-Independent,	Yes	Yes	NA	NA	NA	NA
Subbiah *	Non-Executive
Mrs. Bharti	Independent,	Yes	Yes	Yes	Yes	Yes	Yes
Gupta Ramola	Non-Executive
Mr. Raj Kumar	Independent,	NA	NA	Yes	Yes	Yes	Yes
Jain*	Non-Executive

*Mr. Vellayan Subbiah ceased to be a member of Audit Committee and Mr. Raj Kumar Jain was appointed as a member of Audit

Committee w.e.f. 10[th] May 2022

Personnel and in accordance with the

b) Nomination and Remuneration Committee

criteria laid down.

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:
Recommend to the Board on appointment and removal of Directors, Key Managerial Personnel and Senior Management Personnel
Evaluation of the performance of Directors (other than independent directors).
Formulation of the criteria for determining qualifications, positive attributes and independence of a director.
Evaluation of the performance of independent directors and make recommendations to Board.
Formulation of criteria for evaluation of Independent Directors and the Board
To oversee succession planning for Board of Directors, Key Managerial Personnel and Senior Management Personnel
Devising a policy on Board diversity.
Formulation of policies for remuneration to Directors, Key Managerial Personnel, Senior Management Personnel and other Employees.
Formulation of criteria for making payment to Non-Executive Directors
Identification and recommendation to Board of persons who are qualified to become Directors, Key Managerial Personnel and, Senior Management
Recommend to the board, all remuneration, in whatever form, payable to senior management.
ii) Composition of Nomination and Yadu Dalmia as Members. The constitution Remuneration Committee and Attendance of the Committee meets the requirements of members in the meetings of the of Section 178 of the Companies Act, 2013.
Nomination and Remuneration Committee held during the year
- Table 7 provides details of the Nomination and Remuneration Committee meetings held during the year 2022-23 and attendance of its members.
As on March 31, 2023, this Committee comprised of three Directors, all of whom are independent, namely Mr. Tejpreet S Chopra (Chairman), Mr. Yash Gupta and Mr. Puneet

Table 7: Attendance Record of Nomination and Remuneration Committee Meetings during 2022-23

Name of Members Category	Date of NRC Meeting and Attendance of Members
	May 09, 2022 July 21, 2022 January 27, 2023
Mr. Tejpreet S Chopra (Chairman) Independent, Non-Executive Mr. Puneet Yadu Dalmia Independent, Non-Executive Mr. Yash Gupta Independent, Non-Executive	Yes Yes Yes Yes Yes Yes Yes Yes Yes

Based on the recommendations of the NRC, the Board of Directors decide to continue their appointment or consider them for reappointment, as applicable.
iii) Annual Evaluation of Board, Committees and Individual Directors

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.

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, 2023, 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 Remuneration Policy, a copy of which is attached as Annexure I to the Board Report.

Table 8 provides details of the Stakeholders Relationship Committee meetings held during the year 2022-23 and attendance of its members.

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Table 8: Attendance Record of Stakeholders Relationship Committee Meetings during 2022-23

Name of Members Category	Date of Stakeholders Relationship Committee Meeting and Attendanceof Members
	May 25, 2022 July 21, 2022 September 26, 2022 October 31, 2022 January 02, 2023 February 15, 2023 March 20, 2023
Mr. Tejpreet S Chopra (Chairman) Non-Executive, Independent Mr. Ashish Bharat Ram Executive, Promoter Mr. Kartik Bharat Ram Executive, Promoter Mr. Yash Gupta Non-Executive, Independent	No Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes No No

Mr. Rajat Lakhanpal, Sr. VP (Corporate Compliance) & Company Secretary is Compliance Officer under Listing Regulations.

As on March 31, 2023, 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 2022-23.

Table 9: Shareholder and Investor Complaints received and redressed during 2022-23

Total Complaints Received	Total Complaints Redressed Complaints not solved to the satisfaction of Shareholders	Pending as on March 31, 2023
304	304 Nil	Nil

d) Corporate Social Responsibility Committee

As on March 31, 2023, this Committee comprised of three Directors —Mr. Kartik Bharat Ram (Chairman), Mr. Lakshman Lakshminarayan and Mr. Yash Gupta as members. The constitution of the Committee meets the requirements of Section 135 of the Companies Act, 2013.

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. Table 10 provides details of the Corporate Social Responsibility Committee meetings held during the year 2022-23 and attendance of its members:

Table 10: Attendance Record of Corporate Social Responsibility Committee Meetings during 2022-23

Name of the Member Category	Date of Corporate Social Responsibility Meeting and Attendance of Member
	06 May 2022 22 March 2023
Mr. Kartik Bharat Ram (Chairman) Executive Mr. Lakshman Lakshminarayan Independent Mr. YashGupta Independent	Yes Yes Yes Yes Yes No

The details of CSR initiatives undertaken by the Company during financial year 2022-23 are provided in the CSR Annual Report annexed to the Directors Report.

As on March 31, 2023, brief description of terms of reference of Risk Management Committee interalia includes the following:

e) Risk Management Committee

As on March 31, 2023, 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.

(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, ESG related risks), information, cyber security risks or any other risk as may be determined by the Committee.
- evaluating the adequacy of risk management systems;
(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;
(b) Measures for risk mitigation including systems and processes for internal control of identified risks.
- (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.
(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;
Table 11 provides details of the Risk Management Committee meetings held during the year 202223 and attendance of its members.
(3) To monitor and oversee implementation of the risk management policy, including

Table 11: Attendance Record of Risk Management Committee Meeting during 2022-23

Name of Members Category	Date of meeting and Attendance of Director
	June 24, 2022 December 20, 2022
Mr. Ashish Bharat Ram (Chairman) Executive, Promoter Mr. Kartik Bharat Ram Executive, Promoter Mrs. Bharti Gupta Ramola Independent,Non-Executive	Yes Yes Yes Yes Yes Yes

f) Committee of Directors – Financial Resources

As on March 31, 2023, this Committee comprised of three Directors— Mr. Ashish Bharat Ram Mr. Kartik Bharat Ram and Mr. Pramod Gopaldas Gujarathi all of whom are executive directors.

Table 12 provides details of the Committee of Directors- Financial Resources meetings held during the year 2022--23 and attendance of its members.

Name of Members	Date of Committee of Directors- Financial Resources Meeting and Attendance of Members
	9 May 22 27 May 22 14 Jun 22 21 Jul 22 25 Aug 22 02 Sep 22 18 Oct 22 03 Nov 22 30 Nov 22 21 Dec 22 12 Jan 23 30 Jan 23 15 Feb 23
Mr. Ashish Bharat Ram Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Mr. Kartik Bharat Ram Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Mr. Pramod G Gujarathi Yes No No No No No No No No No No Yes No

Recommendations made by any of the above Committees which were not accepted by the Board

During the year under review, there were no instances where the Board has not accepted any recommendation(s) made by any of the Committee of the Board.

170 Annual Report 2022-23

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

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.

Management

Management Discussion and Analysis

This is given as a separate chapter in this Annual Report.

This Corporate Governance Report of the Company for the year 2022-23 is in compliance with the requirements of Listing Regulations, as applicable.

Disclosure Requirements

During the year 2022-23, 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/corporate governance/. Policy of determining ‘material subsidiaries’ is available on the website of the Company at https://www.https://www. -
srf.com/investors/corporate governance/

Non-Mandatory Requirement

The status of adoption of the non-mandatory requirements as specified in sub – regulation 1 of Regulation 27 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 are as follows:

on the website of the Company at https://www.https://www. (a) The Board : The Chairman of the Company -
srf.com/investors/corporate governance/ is Executive Chairman; (b) Shareholder Rights: Half-yearly and other quarterly financial
• The equity shares of the Company are listed on statements are published in newspapers and
BSE Limited and National Stock Exchange of uploaded on Company’s website www.srf.com. India Limited. The Company has complied with (c) Modified opinion(s) in audit report: all the applicable requirements of capital markets The Company already has in place a regime
and no penalties or strictures have been imposed of un-qualified financial statements. Auditors on the Company by Stock Exchange(s), SEBI or have raised no qualification on the financial any other statutory authority, on any matter statements; and (d) Reporting of Internal
relating to the capital markets, during the last Auditor: The Internal Auditor of the Company three years. reports to the President & CFO of the Company and has direct access to the Audit Committee.
Vigil Mechanism: Section 177 (9) of the Companies Act, 2013 and Regulation 22 of Listing Regulations requires that a Company shall have a 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 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 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 2022-23.

CEO/CFO certification

The Certificate in compliance with Regulation 17(8) of Listing Regulations was placed before the Board of Directors.

Appointment/ Reappointment/Resignation of Directors Mr. Pramod Gopaldas Gujarathi, Director (Safety & Environment) and Occupier is retiring by rotation and being eligible offers himself for re-appointment.

The members of the Company at the 49[th] Annual General Meeting held on August 17, 2020 had appointed Mr. Pramod Gopaldas Gujarathi as Director (Safety & Environment) and Occupier for a term of three years upto March 31, 2023. Mr. Pramod Gopaldas Gujarathi has been re-appointed as Director (Safety & Environment) for a period of 3 years wef April 1, 2023 subject to approval by shareholders through special resolution at the ensuing Annual General Meeting.

The Members of the Company at the 48[th] Annual General Meeting held on August 5, 2019 had appointed Ms. Bharti Gupta Ramola, Mr. Puneet Yadu Dalmia and Mr. Yash Gupta as Independent Director(s) of the Company. Their first term as Independent Directors are ending on February 3, 2024, March 31, 2024 and March 31, 2024 respectively.

from the closing of Business hours of 9[th] May 2022 and was appointed as Additional non-independent and non-executive director, liable to retire by rotation, w.e.f May 10, 2022. His appointment was approved by the shareholders at the 51[st] Annual General Meeting held on July 21, 2022.

Mr. Raj Kumar Jain, was appointed as an Additional Independent Director w.e.f May 9, 2022. His appointment was approved by the shareholders at the 51[st] Annual General Meeting held on July 21, 2022.

The Board on the recommendation of Nomination and Remuneration Committee has recommended the proposals for reappointment of Ms. Bharti Gupta Ramola for a further period of 5 years w.e.f. February 2, 2024 and Mr. Puneet Yadu Dalmia and Mr. Yash Gupta for a further period of 5 years w.e.f. April 1, 2024 for approval of the shareholders through special resolution(s).

Brief resumes of all the directors proposed to be reappointed are given in the explanatory statement to the Notice of the 52[nd] Annual General Meeting.

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.

Mr. Vellayan Subbiah 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. The Board was 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 nonindependent and non-executive director on the Board was discussed with him and he graciously agreed to step down as an independent director and resigned

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

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Year Location Date Time No. of Special
Resolutions Passed
----- End of picture text -----

2019-20	Video Conferencing.	August 17, 2020	11.00 A.M.	2
	Deemed Venue- The Galleria, DLF Mayur Vihar,
	Unit No. 236 & 237, 2ndFloor, Mayur Place, Mayur Vihar Phase I Extn, Delhi – 110091
2020-21	Video Conferencing. Deemed Venue- The Galleria, DLF Mayur Vihar,	August 31, 2021	11.00 A.M.	1
	Unit No. 236 & 237, 2ndFloor, Mayur Place, Mayur
	Vihar Phase I Extn, Delhi – 110091
2021-22	Video Conferencing.	July 21, 2022	11.00 A.M	2
	Deemed Venue- The Galleria, DLF Mayur Vihar,
	Unit No. 236 & 237, 2ndFloor, Mayur Place, Mayur Vihar Phase I Extn,Delhi – 110091

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Third Quarter Last week of January 2024 Fourth Quarter and Annual Second week of May 2024

Postal Ballot

During the year no resolutions was passed through Postal Ballot.

Additional Shareholder Information

Interim Dividend Payment Date

52[nd] Annual General Meeting

During the financial year 2022-23, Two interim dividends of 3.60 (36%) each on the paid up capital of the Company absorbing 213.43 Crores approx. were paid on August 18, 2022 and February 28, 2023 respectively.

Day: Friday Date: June 30, 2023 Time: 10.00 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 read together with Circular No. 2/2022 dated May 5, 2022 and Circular No. 10/2022 dated December 28, 2022 (collectively referred to as ‘MCA Circulars’) and SEBI vide its circular dated May 12, 2020, January 15, 2021,May 13, 2022 and January 5, 2023 (collectively referred to as ‘SEBI Circulars’) and 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 For details please refer to the Notice of this AGM.

Unclaimed Shares Suspense Account

Issue of 23,69,80,820 Bonus shares of ` 10 each fully paid up in the ratio of 4:1 (4 equity shares for every 1 equity share held), 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 were lying as unclaimed with the Registrar & Transfer Agent of the Company (RTA).

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), three reminder letters were sent to the shareholders, requesting them to claim the shares lying with the Company as unclaimed by submitting the relevant documents. The Company has transferred 289141 unclaimed shares to “Unclaimed Suspense Account” in compliance with the listing regulations during the financial year ended 31.03.2023.

Financial Year

1 April to 31 March

Tentative Financial Calendar for Results, 2023-24

First Quarter Third week of July 2023 Second Quarter First week of November 2023

Details are as under:

Aggregate Number of shareholders and the Outstanding shares in the Nil Suspense Account lying in the beginning of the year Number of shareholders who approached listed entity for transfer of Nil shares from suspense account during the year Number of shareholders to whom shares were transferred from Nil suspense account during the year. Aggregate number of shareholders and the outstanding shares in the Shareholders- 953 suspense account lying at the end of the year. No. of Shares- 289141

The Voting rights on these shares shall remain frozen till the rightful owner of such shares claims the shares.

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

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 2022-23, 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 ` 1.73 Crores (including out of pocket expenses).

Details of utilisation of funds raised through preferential allotment or qualified institutions

placement as specified under Regulation 32(7A)

The Company did not raise any funds through preferential allotment or qualified institutions placement during the year.

Disclosure by Company and its subsidiaries of ‘Loans and advances in the nature of loans to firms/ companies in which directors are interested by name and amount –

Below are the details of Loans and advances made by the Company and its subsidiaries to firms/companies in which directors are interested -

						(`In Crores)
Lender	Borrower	Nature of Relationship	Opening Balance as on 01.04.2022*	Loan granted during the year	Loan repaid during the year	Closing Balance as on 31.03.2023
SRF Limited	SRF Altech Limited	Wholly owned	-	278.16	223.20	54.96
(Company)		subsidiary
SRF Global BV	SRF Industries	Wholly owned	122.92	-	122.92	-
(Wholly Owned	(Thailand) Limited	subsidiary
Subsidiary of Co.)	SRF Industex Belting (Pty) Limited SRF Europe Kft.	Wholly owned subsidiary Wholly owned subsidiary	47.48 258.76	8.22 31.29	4.11 31.29	51.59 258.76
	SRF Flexipak (South Africa) (Pty) Limited	Wholly owned subsidiary	41.07	-	35.62	5.44

April 1[st] 2022 numbers have been computed using exchange rate as on 31[st] Mar’2023, where ever applicable. Exchange rate used- USD-82.209 & EURO-89.386

Details of material subsidiaries of the listed entity

In compliance with the Listing Regulations, the Board has formulated the Policy for determining Material Subsidiaries, which is available on its website. Details of Incorporation and Statutory Auditors of Material Subsidiaries are as follows -

Name of Material Subsidiary Company	Details of Incorporation Details of Statutory Auditors
	Place Date Name Date of Appointment
SRF Industries (Thailand) Limited	Thailand 30-Oct-1990 KPMG Phoomchai Audit Ltd 18-Jun-2018

The rightful owner can still claim his/ her shares from the suspense account after complying with the procedure laid down in the statute regarding the same.

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STATUTORY REPORTS

FINANCIAL STATEMENTS

Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 for the year 2022-23

No. of complaints filed during the financial year 2 No. of complaints disposed off during the financial year 2 No. of complaints pending as on the end of the financial year 0

List of Credit Ratings

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Instrument Rating Agency Rating Outlook
----- End of picture text -----

Fund Based and Non-Fund Based Lim	its 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

As on March 31, 2023, SRF’s shares are listed on the BSE and the NSE. The Company has paid the listing fee to both BSE and NSE for the year 2022-23. The Stock Codes are:

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Stock Exchanges Equity Shares
----- End of picture text -----

BSE Limited 25thFloor, P.J. Towers Dalal Street, Mumbai 400 001 National Stock Exchange of India Limited	503806 SRF
“Exchange Plaza” Bandra-Kurla Complex Bandra(E)Mumbai 400 051

Stock Market Data

Table15 gives the monthly high and low quotations as well as the volume of shares traded at BSE and NSE during 2022-23.

Table 15: Monthly Highs and Lows and Volumes Traded at the BSE and NSE during 2022-23

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Month BSE NSE
Highest Price Lowest Price Volume Highest Price Lowest Price Volume
( ) ( ) (No.) ( ) ( ) (No.)
----- End of picture text -----

Apr-22	2773.00	2425.00	5,07,763.00	2773.35	2424.00	1,33,69,958
May-22	2523.95	2100.15	7,68,860.00	2521.90	2100.00	1,90,90,589
Jun-22	2492.65	2081.00	3,30,474.00	2493.00	2080.70	1,01,56,913
Jul-22	2448.95	2002.50	8,22,563.00	2448.90	2002.20	2,04,16,662
Aug-22	2556.30	2320.05	4,86,462.00	2555.00	2325.10	99,83,096
Sep-22	2864.35	2412.55	15,40,216.00	2865.00	2411.45	1,84,72,221
Oct-22	2612.60	2462.90	7,93,364.00	2613.00	2462.20	88,13,903
Nov-22 Dec-22 Jan-23	2639.80 2460.00 2312.00	2239.25 2209.00 2082.15	4,83,091.00 3,52,400.00 3,19,498.00	2639.70 2460.00 2312.00	2237.70 2206.05 2082.10	1,45,09,773 1,19,84,954 1,06,83,904
Feb-23	2353.60	2153.95	4,40,377.00	2355.00	2154.05	1,09,54,822
Mar-23	2433.35	2167.05	2,31,912.00	2433.40	2184.05	1,03,63,898

Chart 1: Share prices of Nifty versus SRF Limited for the year ended March 31 2023

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

SRF VS. NIFTY
120.00
100.00
80.00
60.00
40.00
20.00
-
Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23
Nifty Close SRF Close
----- End of picture text -----

Note: Both Nifty and SRF share prices are indexed to 100 as on April 1, 2023.

RTA after processing the DRF confirms or rejects the request to Depositories

Registrar and Share Transfer Agents

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.

If confirmed by the RTA, depositories give the credit to shareholder in his /her account maintained with DP

Share Transfer System

This process takes approximately 10-15 days from the date of receipt of DRF.

Trading in equity shares of the Company through recognised Stock Exchanges can be done only in dematerialised form.

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.

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:

Dematerialisation of Shares & Liquidity

As on March 31, 2023, out of 29,64,24,825 Equity Shares of ` 10/- each, 29,37,80,319 shares (99.11%) were held in electronic form by 261,515 shareholders and balance 26,44,506 shares (0.89%) were held by 6852 shareholders in physical form.

Shareholder submits the shares certificate/letter of confirmation along with De-materialisation Request Form (DRF) to Depository Participant (DP)
DP processes the DRF and generates a unique De-materialisation Request No

Distribution of Shareholding as on March 31, 2023@

Table 16 gives the distribution of shares according to shareholding class, while Table 17 gives the distribution of shareholding by ownership.
DP forwards the DRF and share certificates/ letter of confirmation to the Registrar and Share Transfer Agent (RTA)

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STATUTORY REPORTS

FINANCIAL STATEMENTS

Table 16: Pattern of Shareholding by Share Class as on March 31, 2023

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No. of Equity Shares held No. of % of No. of shares % of
shareholders Shareholders Shareholding
1-500 2,55,214 95.10 1,05,42,077 3.56
501- 1000 5,777 2.15 44,26,733 1.49
1001- 2000 3,689 1.37 53,68,472 1.81
2001- 3000 1,351 0.50 33,72,504 1.14
3001- 4000 541 0.20 19,08,738 0.65
4001- 5000 369 0.14 17,27,267 0.58
5001- 10000 582 0.22 41,96,921 1.41
10001& Above 844 0.32 26,48,82,113 89.36
Total 2,68,367 100.00 29,64,24,825 100.00
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Table 17: Pattern of Shareholding by Ownership as on March 31, 2023

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S. Category Total Shares % To Equity
No
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1	PROMOTER COMPANIES	14,96,45,000	50.48
2	FOREIGN PORTFOLIO – CORP	5,47,92,629	18.48
3	RESIDENT INDIVIDUALS	3,52,49,262	11.90
4	MUTUAL FUNDS	2,49,22,075	8.41
5	QUALIFIED INSTITUTIONAL BUYER	1,69,35,129	5.71
6	BODIES CORPORATES	44,99,750	1.52
7	NON RESIDENT INDIAN NON REPATRIABLE	36,52,985	1.23
8	I E P F	19,58,614	0.66
9	ALTERNATIVE INVESTMENT FUND	12,47,513	0.42
10	H U F	9,52,041	0.33
11	INSURANCE COMPANIES	7,49,910	0.25
12	EMPLOYEES	5,97,311	0.20
13	NON RESIDENT INDIANS	5,36,447	0.18
14	BANKS	4,16,052	0.14
15	PROMOTERS	1,37,500	0.05
16	DIRECTORS	73,570	0.02
17	UNIT TRUST OF INDIA	17,265	0.01
18	CLEARING MEMBERS	16,903	0.01
19	NBFC	13,272	0.00
20	TRUSTS	11,547	0.00
21	FOREIGN NATIONALS	50	0.00
	Total	29,64,24,825	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, 2023, there were no outstanding GDRs/ ADRs/ Warrants or any convertible instruments

Commodity price risk or foreign exchange risk and hedging activities

During the year 2022-23, 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.

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
The Galleria, DLF Mayur Vihar, Block – C, Sector –45 KFin Technologies Limited
Unit No.236 & 237, Second		Gurugram 122 003 Karvy Selenium Tower B, Plot No 31 & 32
Floor, Mayur Place, Mayur Vihar, Tel No.:(+ 91-124) 4354400 Gachibowli,
Phase-I Extn., Delhi - 110091 Tel No.: (+ 91-11) 49482870 Fax No.: (+ 91-124) 4354500 E-mail :[email protected] Financial District, Nanakramguda, Serilingampally Hyderabad – 500032
Fax No.:(+ 91-11) 49482900 E-mail:[email protected]
E-mail :[email protected]		Website:https://www.kfntech.com
		Toll Free No. 1- 800-309-4001

178 Annual Report 2022-23

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STATUTORY REPORTS FINANCIAL STATEMENTS

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, 2023.

Ashish Bharat Ram

Chairman & Managing Director

Date: May 9, 2023 Place: Gurugram

Certificate of Non-Disqualification of Directors

(Pursuant to Regulation 34(3) read with Schedule V Para-C Clause 10(i) of the SEBI

(Listing Obligations and Disclosure Requirements) Regulations, 2015)

To

The Members SRF Limited

The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, 2[nd] 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, 2[nd] 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, 2023, 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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S.no. Name of Director DIN Date of appointment in
the Company
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1.	Mr. Ashish Bharat Ram	00671567	23/05/2005
2.	Mr. Kartik Bharat Ram	00008557	14/11/2006
3.	Mr. Lakshman Lakshminarayan	00012554	11/11/2011
4.	Mr. Puneet Yadu Dalmia	00022633	01/04/2019
5.	Mr. Yash Gupta	00299621	01/04/2019
6.	Mr. Tejpreet Singh Chopra	00317683	21/09/2011
7.	Mrs. Bharti Gupta Ramola	00356188	04/02/2019
8.	Mr. Pramod Gopaldas Gujarath	00418958	01/04/2017
9.	Mr. Vellayan Subbiah	01138759	01/05/2012
10.	Mr. Raj Kumar Jain	01741527	09/05/2022

*The date of appointment is as per the MCA Portal.

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.

For Rohit Parmar and Associates Company Secretaries Unique Code No.: S2021DE820800

Date: May 02, 2023 Place: New Delhi

Rohit Parmar ACS No.: A54442; COP No. 22137 Peer Review no.: 2122/2022 UDIN: A054442E000235031

180 Annual Report 2022-23

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Independent Auditor’s Report

FINANCIAL STATEMENTS

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 March 31, 2023, 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 March 31, 2023, and its profit and other comprehensive loss, changes in equity and its cash flows for the year ended on that date.

Key Audit Matter

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.

Accounting for derivatives

See Note 38 to standalone ancial statements fin 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 analyzing critical terms, such as nominal amount, maturity, and underlying, of the hedging instrument and the hedged item to assess they are closely aligned.

Annual Report 2022-23 183

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STATUTORY REPORTS

FINANCIAL STATEMENTS

Accounting for derivatives See Note 38 to standalone ancial statements fin The key audit matter

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.

Further, the Company has been using hedge relationship – Performed sample tests of valuation and accounting designation as per criteria set out in relevant Indian of these transactions. In doing so we have involved accounting standards. Accounting thereof and related valuation specialists to assist us in carrying out presentation and disclosures of these transactions aforesaid procedure, as considered necessary. require significant judgement. Given the significant level of judgement and estimation involved and the – Assessed the adequacy of disclosures in the financial quantitative significance, we have determined this to statements in respect of both non-derivative and be a key audit matter. derivative financial instruments.

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.

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 financial statements and 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.

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.

Management’s and Board of Directors’ Responsibilities for the Standalone Financial Statements

Auditor’s Responsibilities for the Audit of 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/ loss, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions

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.

report. However, future events or conditions may cause the Company to cease to continue as a going concern.

As part of an audit in accordance with SAs, we exercise • Evaluate the overall presentation, structure and professional judgment and maintain professional content of the standalone financial statements, skepticism throughout the audit. We also: including the disclosures, and whether the standalone financial statements represent the
• Identify and assess the risks of material underlying transactions and events in a manner misstatement of the standalone financial that achieves fair presentation. statements, whether due to fraud or error, design and perform audit procedures responsive We communicate with those charged with governance to those risks, and obtain audit evidence that is regarding, among other matters, the planned scope sufficient and appropriate to provide a basis for and timing of the audit and significant audit findings, our opinion. The risk of not detecting a material including any significant deficiencies in internal control misstatement resulting from fraud is higher that we identify during our audit. than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, We also provide those charged with governance with misrepresentations, or the override of internal a statement that we have complied with relevant control. ethical requirements regarding independence, and to
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.

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.

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.

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 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, we report that:

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STATUTORY REPORTS FINANCIAL STATEMENTS

foreseeable losses, if any, on long-term contracts including derivative contracts – Refer Note 38 to the standalone financial statements.

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. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
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 (i) The management has represented that, to the best of its knowledge and belief, as disclosed in the Note 41(g)(viii) to the standalone financial statements, 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 person(s) or entity(ies), 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.
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 March 31, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023 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”.
“Annexure B”. (ii) The management has represented
B. With respect to the other matters to that, to the best of its knowledge and belief, as disclosed in the Note 41(g)(ix)
be included in the Auditor’s Report in accordance with Rule 11 of the Companies to the standalone financial statements, no funds have been received by
(Audit and Auditors) Rules, 2014, in our the Company from any person(s)
opinion and to the best of our information or entity(ies), including foreign
and according to the explanations given to us: entities (“Funding Parties”), with the understanding, whether recorded in
a. The Company has disclosed the impact of writing or otherwise, that the Company
pending litigations as at March 31, 2023 shall directly or indirectly, lend or
on its financial position in its standalone invest in other persons or entities financial statements - Refer Note 31 to the identified in any manner whatsoever
standalone financial statements. by or on behalf of the Funding Parties
b. The Company has made provision, (“Ultimate Beneficiaries”) or provide as required under the applicable law any guarantee, security or the like on or accounting standards, for material behalf of the Ultimate Beneficiaries.
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 Auditors) 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 March 31, 2023 on its financial position in its standalone financial statements - Refer Note 31 to the standalone financial statements.
(iii) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances performed, nothing has come to our notice that has caused us to believe that the representations under subclause (i) and (ii) of Rule 11(e), as provided under (i) and (ii) above, contain any material misstatement.
C. With respect to the matter to be included in the Auditor’s Report under Section 197(16) of the Act:
- In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid/ payable to any director is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.
e. The interim dividend declared and paid by the Company during the year and until the date of this audit report is in accordance with Section 123 of the Act.
For B S R & Co. LLP
Chartered Accountants
f. As proviso to rule 3(1) of the Companies Firm’s Registration No.:101248W/W-100022
(Accounts) Rules, 2014 is applicable for the Company only with effect from Kaushal Kishore April 1, 2023, reporting under Rule 11(g) of Partner the Companies (Audit and Auditors) Rules, Place: Gurugram Membership No.: 090075 2014 is not applicable. Date: May 09, 2023 ICAI UDIN:23090075BGYUKU4492

186

Annual Report 2022-23 187

Annual Report 2022-23

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Annexure A to the Independent Auditor’s Report on the Standalone Financial Statements of SRF Limited for the year ended March 31, 2023

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.

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.

(B) The Company has maintained proper records showing full particulars of intangible assets.
intangible assets. (c) According to the information and explanations given to us and on the basis
(i) (b) According to the information and of our examination of the records of the explanations given to us and on the basis Company, the title deeds of immovable of our examination of the records of the properties (other than immovable properties Company, the Company has a regular where the Company is the lessee and programme of physical verification of its the leases agreements are duly executed Property, Plant and Equipment by which all in favour of the lessee) disclosed in the property, plant and equipment are verified standalone financial statements are held in in a phased manner over a period of three the name of the Company, except for the years. In accordance with this programme, following which are not held in the name of certain property, plant and equipment were the Company:

Description Gross carrying Held in the Whether Period held Reason for not being held in the of property value as at 31 name of promoter, since name of the Company/ Remarks March 2023 director or ( ` in crores) their relative or employee Land at 108.16 (carried Gujarat Industrial No From The execution of lease deed of land Bharuch, cost) Development June 2009 in respect of 1,165,437 square meters Dahej, Corporation (‘GIDC’) onwards of leasehold land already allotted (out Gujarat at Dahej, Gujarat (by multiple of a total of 1,181,776 square meters) allotment to the Company is pending. We orders) understand that, 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.

(e) According to the 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.
(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.
(ii) (a) The inventory, except goods-in-transit and of five crore rupees, in aggregate, from stocks lying with third parties, has been banks or financial institutions on the basis physically verified by the management of security of current assets. In our opinion, during the year. For stocks lying with the quarterly returns or statements filed by third parties at the year-end, written the Company with such banks or financial confirmations have been obtained and for institutions are in agreement with the books goods-in-transit subsequent evidence of of account of the Company.
receipts till date of the report has been linked with inventory records. In our opinion, the (iii) According to the information and explanations
frequency of such verification is reasonable given to us and on the basis of our examination of and procedures and coverage as followed the records of the Company, the Company has not
by management were appropriate. No provided any security or granted any advances
discrepancies were noticed on verification in the nature of loans, secured or unsecured, to
between the physical stocks and the book records that were more than 10% in the companies, firms, limited liability partnership or any other parties during the year. The Company
aggregate of each class of inventory
(iii) According to the information and explanations
frequency of such verification is reasonable given to us and on the basis of our examination of and procedures and coverage as followed the records of the Company, the Company has not
by management were appropriate. No provided any security or granted any advances
discrepancies were noticed on verification in the nature of loans, secured or unsecured, to
between the physical stocks and the book records that were more than 10% in the companies, firms, limited liability partnership or any other parties during the year. The Company
aggregate of each class of inventory has made investments in, provided guarantees,
(b) According to the information and and granted loans to companies and other parties, explanations given to us and on the in respect of which the requisite information basis of our examination of the records is as below. The Company has not made any of the Company, the Company has been investments in, provided guarantees and granted sanctioned working capital limits in excess loans to firms or limited liability partnership.
(a) Based on the audit procedures carried on by us and as per the information and explanations given to us the Company has provided loans, or stood guarantee, or provided security to any other entity as below:

|Particulars|Guarantees
(**in Crores)**|**Loans** **(**in Crores)|
|---|---|---|
|Aggregate amount during the year Subsidiaries
Others(Ofcers * and employees)|271.29
-|278.16
49.01|
|Balance outstanding as at balance sheet date|||
|Subsidiaries
Others(Ofcers * and employees)|1,934.28
-|480.36
54.34|

*As per the Companies Act, 2013

(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.
(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 have been stipulated and the repayments or receipts have been regular, except for the loan of ` 278.16 crores given to SRF Altech Limited (a wholly owned subsidiary), which is repayable on demand, including interest thereon. There has been no delays or default in respect of the above loan. Further, the Company has not given any advances in the nature of loan to any party during the year.
(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.

188 Annual Report 2022-23

Annual Report 2022-23 189

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, there is no loan or advance in the nature of loan granted falling due during the year, which has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to same parties.
(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 loans to its related parties as defined in Clause (76) of Section 2 of the Companies Act, 2013 (“the Act”):.

Particulars	Related Party
Loan Repayable on demand	`278.16 Crores
Percentage of loans to the total loans	85.02%

(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 amounts which are deemed to be deposits from the public. Accordingly, clause 3(v) of the Order is not applicable.
(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.
(vii) (a) The Company does not have liability in respect of Service tax, Duty of excise, Sales tax and Value added tax during the year since effective July 1, 2017, these statutory dues has been subsumed into GST.

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 deducted / accrued in the books of account in respect of undisputed statutory dues including Goods and Service Tax, Provident Fund, Employees State Insurance, Income-Tax, Duty of Customs or Cess or other statutory dues have been regularly deposited by the Company with the appropriate authorities.

According to the information and explanations given to us and on the basis of our examination of the records of the Company, no undisputed amounts payable in respect of Goods and Service Tax, Provident Fund, Employees State Insurance, Income-Tax, Duty of Customs or Cess or other statutory dues were in arrears as at March 31, 2023 for a period of more than six months from the date they became payable.

(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:

==> picture [403 x 28] intentionally omitted <==

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

Name of the Nature of Amount Period to which Forum where dispute Remarks,
statute the dues ( ` in Crores) the amount relates is pending if any
----- End of picture text -----*

Central Excise Laws Service Tax Laws	Excise Duty Service Tax	9.32 1.77	1993-02 2006-18	Upto Commissioner (Appeals) Upto Commissioner
				(Appeals)
Customs Law	Customs Duty	1.27	2012-13	Supreme Court
		0.27	2016-19	High Court
		0.17	2002	Up to Commissioner
				(Appeals)
Sales Tax Laws	Sales Tax	0.34	2015-16	High Court
		1.40	2014-16	Sales Tax Appellate Tribunal
		7.68	1988-2017	Up to Commissioner
Income Tax Laws	Income Tax	1.13	Assessment Year (AY)	(Appeals) Supreme Court
			1989-90
		1.20	AY 2017-18	Income tax Appellate
		11.03	AY 2018-19	Tribunal
		73.82 4.30	AY 2021-22 AY 2007-08	Upto Commissioner of Income Tax (Appeal)
Goods & Service	Goods &	0.23	2017-18	Upto Commissioner
tax Laws Employees Provident Fund & Miscellaneous Provisions Act, 1952	Service Tax Provident Fund	0.21 0.30	2011-16 2011-13	(Appeals) EPF Appellate Tribunal Central Government Industrial Tribunal

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 [404 x 28] intentionally omitted <==

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

Name of the Nature of the Amount Period to which the Forum where Remarks,
statue dues ( ` in Crores) amount relates dispute is pending if any
----- End of picture text -----*

Income Tax Laws	Income Tax	2.64	AY 2000-01	High Court
		1.08	AY 2001-02
		1.83	AY 2003-04
Central Excise Laws	Excise Duty	1.18	1994-95	High Court
		2.24	1989-95	Upto Commissioner
				(Appeals)
Customs Law	Customs Duty	0.01	2012-13	Upto Commissioner
				(Appeals)

*The amounts disclosed are net of payments and include interest and penalties, wherever applicable.

190 Annual Report 2022-23

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

  - (f)  According to the information and explanations given to us and procedures performed by us, we report that the Company has not raised loans during the year on the pledge of securities held in its subsidiaries (as defined under the Act).

(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.
(x) (a) The Company has not raised any moneys
(ix) (a) According to the information and by way of initial public offer or further explanations given to us and on the basis public offer (including debt instruments). of our examination of the records of the Accordingly, clause 3(x)(a) of the Order is Company, the Company has not defaulted not applicable. in repayment of loans and borrowing or (b) According to the information and
in the payment of interest thereon to any explanations given to us and on the basis
lender.
- (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 any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, clause 3(x)(b) 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 been declared a wilful defaulter by any bank or financial institution or government or government authority.
(xi) (a) Based on examination of the books and records of the Company and according to the information and explanations given to us, no fraud by the Company or on the Company has been noticed or reported during the course of the audit.
(c) In our opinion and according to the information and explanations given to us by the management, term loans were applied for the purpose for which the loans were obtained, other than ` 370.00 crores which remain unutilised as at March 31, 2023 because the funds were received towards the end of the year. The Company has temporarily invested such unutilised balance in fixed deposits as at March 31, 2023.
(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 given to us and on an overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for longterm purposes by the Company.
- (c) We have taken into consideration the whistle blower complaints received by the Company during the year while determining the nature, timing and extent of our audit procedures.
(xii) According to the information and explanations given to
(e) According to the information and us, the Company is not a Nidhi Company. Accordingly, explanations given to us and on an overall clause 3(xii) of the Order is not applicable. examination of the standalone financial statements of the Company, we report that (xiii) In our opinion and according to the information the Company has not taken any funds from and explanations given to us, the transactions any entity or person on account of or to with related parties are in compliance with meet the obligations of its subsidiaries as Section 177 and 188 of the Act, where applicable, defined under the Act. and the details of the related party transactions
(xiii) In our opinion and according to the information and explanations given to us, the transactions with related parties are in compliance with Section 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.

  - (xviii)  There has been no resignation of the statutory auditors during the year. Accordingly, clause 3(xviii) of the Order is not applicable.

(xiv) (a) Based on information and explanations (xix) According to the information and explanations provided to us and our audit procedures, in given to us and on the basis of the financial our opinion, the Company has an internal ratios, ageing and expected dates of realisation audit system commensurate with the size of financial assets and payment of financial and nature of its business. liabilities, other information accompanying the standalone financial statements, our knowledge
(b) We have considered the internal audit of the Board of Directors and management plans
reports of the Company issued till date for and based on our examination of the evidence the period under audit. supporting the assumptions, nothing has come to our attention, which causes us to believe that
(xv) In our opinion and according to the information any material uncertainty exists as on the date of
and explanations given to us, the Company has the audit report that the Company is not capable
not entered into any non-cash transactions with of meeting its liabilities existing at the date of
its directors or persons connected to its directors balance sheet as and when they fall due within a
and hence, provisions of Section 192 of the Act period of one year from the balance sheet date.
are not applicable to the Company. We, however, state that this is not an assurance as to the future viability of the Company. We
(xvi) (a) The Company is not required to be registered further state that our reporting is based on the
under Section 45-IA of the Reserve Bank of facts up to the date of the audit report and we
India Act, 1934. Accordingly, clause 3(xvi) neither give any guarantee nor any assurance
(a) of the Order is not applicable. that all liabilities falling due within a period of one year from the balance sheet date, will get
(b) The Company is not required to be registered discharged by the Company as and when they
under Section 45-IA of the Reserve Bank of fall due.
(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.
(xx) In our opinion and according to the information
(c) The Company is not a Core Investment and explanations given to us, there is no unspent Company (CIC) as defined in the regulations amount under sub-section (5) of Section 135 of made by the Reserve Bank of India. the Act pursuant to any project. Accordingly, Accordingly, clause 3(xvi)(c) of the Order is clauses 3(xx)(a) and 3(xx)(b) of the Order are not applicable. not applicable.
(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.
For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No.:101248W/W-100022

Kaushal Kishore

Partner
(xvii) The Company has not incurred cash losses in Place: Gurugram Membership No.: 090075
the current and in the immediately preceding Date: May 09, 2023 ICAI UDIN:23090075BGYUKU4492
financial year.

192

Annual Report 2022-23 193

Annual Report 2022-23

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Annexure B to the Independent Auditor’s Report on the standalone financial

statements of SRF Limited for the year ended March 31, 2023

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 Act

(Referred to in paragraph 2(A)(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

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 Act.

Opinion

We have audited the internal financial controls with reference to financial statements of SRF Limited (“the Company”) as of March 31, 2023 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Auditor’s 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 if such controls operated effectively in all material respects.

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 March 31, 2023, 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”).

Management’s and Board of Directors’ Responsibilities for Internal Financial Controls

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 internal financial controls with reference to financial statements, 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.

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

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 standalone 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 standalone 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 standalone 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: May 09, 2023 ICAI UDIN:23090075BGYUKU4492

194 Annual Report 2022-23

Annual Report 2022-23 195

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Standalone Balance Sheet

as at March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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

Particulars Note No. As at As at
March 31, 2023 March 31, 2022
----- End of picture text -----

ASSETS
Non-current assets
Property, plant and equipment	2	7,309.25	5,750.50
Right-of-use assets	37	258.87	255.35
Capital work-in-progress	2.1	2,128.95	1,617.04
Goodwill	3	-	-
Other intangible assets	4	106.08	108.13
Financial assets
(i) Investments	5	92.82	92.82
(ii) Loans	6	291.35	410.05
(iii) Other fnancial assets	7	65.33	140.53
Non-current tax assets (net)	20	85.57	21.31
Other non-current assets	8	209.72	207.48
Total non-current assets		10,547.94	8,603.21
Current assets
Inventories	9	1,848.67	1,750.88
Financial assets
(i) Investments	5	490.05	316.74
(ii) Trade receivables	10	1,436.38	1,350.99
(iii) Cash and cash equivalents	11	527.25	319.64
(iv) Bank balances other than above	12	8.48	8.87
(v) Loans	6	243.35	178.42
(vi) Other fnancial assets	7	240.64	226.51
Other current assets	8	208.65	179.96
Total current assets		5,003.47	4,332.01
Assets classifed as held for sale	40	-	3.00
TOTAL ASSETS		15,551.41	12,938.22
EQUITY AND LIABILITIES
Equity
Equity share capital	13	297.44	297.44
Other equity	14	8,956.11	7,327.36
Total equity		9,253.55	7,624.80
Liabilities
Non-current liabilities
Financial liabilities
(i) Borrowings	15	1,726.53	1,189.73
(ii) Lease liabilities	37	96.53	95.18
(iii) Other fnancial liabilities	19	159.47	153.53
Provisions	16	51.84	44.86
Deferred tax liabilities (net)	17	749.34	613.04
Other non-current liabilities	21	29.20	-
Total non-current liabilities		2,812.91	2,096.34

Standalone Balance Sheet (CONTD.)

as at March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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

Particulars Note No. As at As at
March 31, 2023 March 31, 2022
----- End of picture text -----

Current liabilities
Financial liabilities
(i) Borrowings	15	1,312.73	1,585.17
(ii) Lease liabilities	37	25.90	20.66
(iii) Trade payables	18
(a) Total outstanding dues of micro enterprises and small		67.79	55.98
enterprises
(b) Total outstanding dues of creditors other than micro		1,581.38	1,284.39
enterprises and small enterprises
(iv) Other fnancial liabilities	19	382.99	148.15
Other current liabilities	21	96.23	107.56
Provisions	16	6.28	5.42
Current tax liabilities(net)	20	11.65	9.75
Total current liabilities		3,484.95	3,217.08
Total Liabilities		6,297.86	5,313.42
TOTAL EQUITY AND LIABILITIES		15,551.41	12,938.22
Summary of signifcant accounting policies See accompanying notes to the standalone fnancial	1B 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 Bharti Gupta Ramola Partner Chairman and Joint Managing Director Director Membership No.: 090075 Managing Director DIN - 00008557 DIN - 00356188 DIN - 00671567 Place : Gurugram Rahul Jain Rajat Lakhanpal Date : May 09, 2023 President & CFO Senior Vice President (Corporate Compliance) and Company Secretary Place : Gurugram Date : May 09, 2023

196

Annual Report 2022-23 197

Annual Report 2022-23

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Standalone Statement of Profit and Loss

for the Year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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

Particulars Note No. Year ended Year ended
March 31, 2023 March 31, 2022
----- End of picture text -----

I	Revenue from operations	22	12,073.84	9,953.44
II	Other income	23	106.06	135.31
III	Total Income (I + II)		12,179.90	10,088.75
IV	Expenses
	Cost of materials consumed	24.1	5,504.52	4,748.26
	Purchases of stock-in-trade	24.2	109.72	137.27
	Changes in inventories of fnished goods, work-in-progress	24.3	21.91	(193.25)
	and stock-in-trade
	Employee benefts expense	25	684.19	658.48
	Finance costs	26	175.82	94.45
	Depreciation and amortisation expense	27	468.44	419.23
	Other expenses	28	2,559.44	2,069.27
	Total Expenses (IV)		9,524.04	7,933.71
V	Proft before tax (III - IV)		2,655.86	2,155.04
VI	Tax expense	29
	Current tax		581.99	616.41
	Deferred tax
	MAT credit entitlement		(94.13)	(25.27)
	Others		144.64	56.89
	Total tax expense		632.50	648.03
VII	Proft for the year (V - VI)		2,023.36	1,507.01
VIII	Other comprehensive income
A	Items that will not be reclassifed to proft or loss
	(i)(a) Gain / (loss) on remeasurement of defned beneft	14.2, 33.2	(12.14)	(7.30)
	obligation
	(i)(b) Income tax on item (i)(a) above	14.2, 30	4.24	2.55
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	(252.29)	39.99
	(i)(b) Income tax on item (i)(a) above	14.3, 30	67.58	(13.03)

Standalone Statement of Profit and Loss (CONTD.)

for the Year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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Particulars Note No. Year ended Year ended
March 31, 2023 March 31, 2022
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	(ii)(a) Cost of Hedging Reserve	14.10	3.81	1.48
	(ii)(b) Income tax on item (ii)(a) above	14.10, 30	(0.79)	(0.45)
	Total other comprehensive income / (loss) for the		(189.59)	23.24
	year, net of taxes (A(i) + B(i+ii))
IX	Total comprehensive income for the year		1,833.77	1,530.25
	(VII + VIII)
	Basic and Diluted Earnings per equity share (in`)	36	68.26	50.86
Summary of signifcant accounting policies See accompanying notes to the standalone fnancial		1B 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

Bharti Gupta Ramola

Chairman and Joint Managing Director Director Managing Director DIN - 00008557 DIN - 00356188 DIN - 00671567

Partner Chairman and Membership No.: 090075 Managing Director DIN - 00671567 Place : Gurugram Rahul Jain Date : May 09, 2023 President & CFO

Rajat Lakhanpal

Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 09, 2023

198 Annual Report 2022-23

Annual Report 2022-23 199

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Standalone Cash Flow Statement

for the Year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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

Particulars Year ended Year ended
March 31, 2023 March 31, 2022
A CASH FLOW FROM OPERATING ACTIVITIES
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	Proft before tax	2,655.86	2,155.04
	Adjustments for:
	Finance costs	175.82	94.45
	Interest income	(59.90)	(32.20)
	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	(6.19) (9.10) 0.52	(3.09) (7.06) 0.76
	Amortisation of grant income	(3.35)	-
	Depreciation and amortisation expense	468.44	419.23
	Property, plant and equipment and inventory discarded / provided	2.98	18.83
	/ (written back)
	Provision / liabilities no longer required written back Net currency exchange fuctuation (gain) / loss	(27.44) (43.37)	(2.59) (21.27)
	Employee share based payment expense	8.41	11.11
	Stamp duty on purchase of investments	0.07	0.08
	Adjustments for (increase) / decrease in operating assets :-
	Trade receivables	(89.87)	(331.15)
	Inventories	(97.23)	(472.29)
	Loans (current)	(1.59)	(1.04)
	Loans (non-current)	(30.00)	(4.16)
	Other assets (current)	(101.20)	44.44
	Other assets (non-current)	(23.62)	(1.85)
	Adjustments for increase / (decrease) in operating liabilities :-
	Trade payables	307.57	142.65
	Provisions	7.83	5.05
	Other liabilities (current)	121.44	(15.34)
	Cash generated from operations	3,256.08	1,999.60
	Income taxes paid (net of refunds)	(467.98)	(361.99)
	Net cash generated from operating activities	2,788.10	1,637.61
B	CASH FLOW FROM INVESTING ACTIVITIES
	Net sale / (purchases) of current investments	(164.21)	102.84
	Stamp duty on purchase of investments	(0.07)	(0.08)
	Purchase of non-current investments	-	(5.06)
	Interest received	37.21	31.57
	Bank balances not considered as cash and cash equivalents	30.39	104.84
	Payment for purchase of property, plant and equipment, capital	(2,373.79)	(1,575.85)
	work-in-progress and other intangible assets
	Proceeds from disposal of property, plant and equipment	15.58	14.95
	Loans given to subsidiaries	(278.16)	(230.20)
	Repayment of loans received from subsidiaries	404.89	277.41
	Net cash used in investing activities	(2,328.16)	(1,279.58)
C	CASH FLOW FROM FINANCING ACTIVITIES
	Proceeds from issue of shares	*	0.20
	Proceeds from long term borrowings	818.42	455.36
	Repayment of long term borrowings	(672.25)	(414.05)
	Net proceeds from short term borrowings	22.69	157.22
	Dividends on equity share capital paid	(213.32)	(211.74)
	Payment towards lease liability	(32.47)	(25.68)
	Finance costs paid Net cash used in fnancing activities	(175.40) (252.33)	(86.42) (125.11)
	Net increase in cash and cash equivalents	207.61	232.92
	Cash and cash equivalents at the beginning of the year	319.64	86.72
	Cash and cash equivalents at the end of the year (Refer to note 11)	527.25	319.64

Amount in absolute: ` 38,000

Standalone Cash Flow Statement (CONTD.)

for the Year ended March 31, 2023

(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 28.63 crores (Previous year: 21.75 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, 2022	Cash fow from fnancing activities	Upfront fees amortised	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	As at March 31, 2023
Equity share capital	297.44	^^	-	-	-	-	-	-	297.44
Securities premium	509.56	-	-	-	-	-	-	-	509.56
Non-current borrowings*	1,852.22	146.17	1.49	92.20	-	-	-	-	2,092.08
Current borrowings ^	922.68	22.69	-	1.81	-	-	-	-	947.18
Interest accrued	3.70	(175.40)	-	-	184.95	-	-	-	13.25
Lease liability	115.84	(32.47)	-	-	8.92	-	30.14	-	122.43
Dividend	6.72	(213.32)	-	-	-	213.43	-	-	6.83
Total	3,708.16	(252.33)	1.49	94.01	193.87	213.43	30.14	-	3,988.77

Particulars	As at March 31, 2021	Cash fow from fnancing activities	Upfront fees amortised	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	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

including current maturities of long term borrowings
^ excluding current maturities of long term borrowings

^^ Amount in absolute: ` 38,000

including amount capitalised

Summary of significant accounting policies See accompanying notes to the standalone financial statements

1B 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

President & CFO Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 09, 2023

200

Annual Report 2022-23 201

Annual Report 2022-23

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Standalone Statement of Changes in Equity

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(a) Equity share capital

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Amount
Balance at March 31, 2021 60.26
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Balance	at March 31, 2021	Amount 60.26
Changes	in equity share capital during the year	237.18
Balance	at March 31, 2022	297.44
Changes	in equity share capital during the year	*
Balance	at March 31, 2023	297.44

Amount in absolute: ` 38,000

(b) Other Equity

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Particulars Reserves and Surplus [#] Items of other comprehensive income [#] Total equity
Capital General Capital Securities Debenture Employee Retained Effective portion Equity Cost of
reserve reserve redemption premium redemption share earnings of cash flow instrument hedging
reserve reserve based hedge through other reserve
payment comprehensive
reserve income
Balance at March 31, 2021 219.19 648.54 10.48 736.25 62.50 2.54 4551.58 7.53 (4.22) 0.62 6,235.01
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Balance at March 31, 2021	219.19	648.54	10.48	736.25	62.50	payment reserve 2.54	4551.58	com 7.53	prehensive income (4.22)	0.62	6,235.01
Proft for the year	-	-	-	-	-	-	1,507.01	-	-	-	1,507.01
Other comprehensive income for the year,	-	-	-	-	-	-	(4.75)	26.96	-	1.03	23.24
net of income tax
Total comprehensive income for theyear	-	-	-	-	-	-	1,502.26	26.96	-	1.03	1,530.25
Dividend ^	-	-	-	-	-	-	(211.89)	-	-	-	(211.89)
Employee share based payment expense	-	-	-	-	-	10.91	-	-	-	-	10.91
Recognised / (released) on vesting of shares	-	-	-	10.29	-	(10.23)	-	-	-	-	0.06
issued under employee share purchase
scheme
Utilisation on issue of bonus equityshares	-	-	-	(236.98)	-	-	-	-	-	-	(236.98)
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
Proft for the year	-	-	-	-	-	-	2,023.36	-	-	-	2,023.36
Other comprehensive income for the year,	-	-	-	-	-	-	(7.90)	(184.71)	-	3.02	(189.59)
net of income tax
Total comprehensive income for theyear	-	-	-	-	-	-	2,015.46	(184.71)	-	3.02	1,833.77
Dividend ^	-	-	-	-	-	-	(213.43)	-	-	-	(213.43)
Employee share based payment expense	-	-	-	-	-	8.41	-	-	-	-	8.41
Transfer from Debenture redemption reserve	-	62.50	-	-	(62.50)	-	-	-	-	-	-
to General reserve
Balance at March 31, 2023	219.19	711.04	10.48	509.56	-	11.63	7643.98	(150.22)	(4.22)	4.67	8,956.11

Refer note 14

^ Refer note 13.1

Summary of significant accounting policies 1B See accompanying notes to the standalone financial statements 2 to 41

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

Place : Gurugram Date : May 09, 2023

Rahul Jain President & CFO

Rajat Lakhanpal Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 09, 2023

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments)
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

A CORPORATE INFORMATION

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.

Share-based payments

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.

The principal accounting policies are set out below.

2 Current versus non-current classification

The principal activities of the Company are manufacturing, purchase and sale of technical textiles, chemicals, packaging films and other polymers.

The Company presents assets and liabilities in the balance sheet based on current/noncurrent classification.

The standalone financial statements were authorised for issue in accordance with a resolution of the directors on May 9, 2023.

An asset is treated as current when it is:

Expected to be realised or intended to be sold or consumed in normal operating cycle

B SIGNIFICANT ACCOUNTING POLICIES

Held primarily for the purpose of trading
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.

Expected to be realised within twelve months after the reporting period
Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as noncurrent.

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:

A liability is current when:

It is expected to be settled in normal operating cycle
It is held primarily for the purpose of trading
Derivative financial instruments

202 Annual Report 2022-23

203

Annual Report 2022-23

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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. Excess of net sale proceeds of items produced over the cost of testing, if any, are not recognised in the profit or loss but deducted from the directly attributable costs of property, plant, and equipment.

It is due to be settled within twelve months after the reporting period
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.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

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.

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.

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.

3 Property, plant and equipment (PPE) The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.

Assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation and accumulated impairment losses, if any.

Capital Work in Progress: Project under which assets are not yet ready for their intended use are carried at cost comprising direct cost of labour and material, related incidental expenses and attributable interest.

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.

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.

Cost of acquisition or construction is inclusive of freight, duties, non-recoverable taxes, incidental expenses and interest on borrowing attributable to the acquisition of qualifying assets, up to the date of commissioning of the assets.

4 Depreciation
Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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:

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.

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.

Management’s estimate of useful life

Roads	40-50 years
Buildings (including	5-60 years
temporary structures)
Plant and equipment	2-40 years
Furniture and fxtures	3-20 years
Ofce equipment	3-20 years
Vehicles	4-5 years

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:

Freehold land is not depreciated.

s follows:
Trademarks / Brand	10-30 years
Technical Knowhow	30-40 years
Software	3-5 years
Other intangibles	2.5-8 years

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.

204 Annual Report 2022-23

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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.

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.

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.

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.

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.

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 cashgenerating 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.

6 Research and development expenditure

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 for the production of new or substantially improved products and processes.

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.

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

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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.

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.

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.

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.

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.

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.

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 5[th] year. To estimate cash flow projections beyond periods covered by the most recent

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;

206 Annual Report 2022-23

Annual Report 2022-23 207

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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 Company has the right to obtain substantially all of the economic benefits from use of the asset through the period of use; and
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 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 Company has the right to operate the asset; or

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 interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. The Company determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.

the Company designed the asset in a way that predetermines how and for what purpose it will be used.

The Company reassesses 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 Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

Lease payments included in the measurement of the lease liability comprise the fixed payments, including in-substance fixed payments and variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date

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

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

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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.

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.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the rightof-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

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.

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.

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.

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.

11 Foreign Currencies

Transactions in foreign currencies are recorded on initial recognition at the exchange rate prevailing on the date of the transaction.
(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

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 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. In case of a specific borrowing taken for

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(b) Traded goods, Stock in progress and finished goods- Direct cost plus appropriate share of overheads based on normal operating capacity.

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.

(c) By products - At estimated realisable value.
(ii) Exchange differences pertaining to long term foreign currency loans obtained or re-financed on or before March 31, 2016:
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.

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.

The net realisable value of work-inprogress is determined with reference to the selling prices of related finished goods. Raw materials, components and other supplies held for use in the production of finished products are not written down below cost except in cases when a decline in the price of materials indicates that the cost of the finished products shall exceed the net realisable value.
(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 accordance with Ind AS 21/ Ind AS 109. Refer point (i) above.

The comparison of cost and net realisable value is made on an itemby-Item basis.
13 Provisions, contingent liabilities and contingent assets Provisions

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 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.

(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.

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 asset, but only when the reimbursement is virtually certain.

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

income is recognised over a period of time as and when the underlying services are performed.

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.

Revenues towards satisfaction of a performance obligation are measured based on the transaction price (net of variable consideration), 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.

Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or nonoccurrence 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.

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.

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.

a) Current tax

Current income tax assets and liabilities are measured at the best estimate of 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.

14 Revenue recognition

Sale of goods and services

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

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.

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FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

b) Deferred tax

(i) At the time of initial recognition of goodwill;

Deferred tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying amounts at the reporting date.

(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;

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.

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.

Deferred tax assets/liabilities are not recognised for below mentioned temporary differences:

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

16 Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with.

Defined contribution plans

A government grant that becomes receivable as compensation for expenses or losses incurred is 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, unless the conditions for receiving the grant are met after the related expenses have been recognised. In this case, the grant is recognised when it becomes receivable.

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.

Defined benefit plans

Government grants related to assets are presented in the balance sheet at fair value as deferred income and is recognised in profit or loss on a systematic basis over the expected useful life of the related assets.

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.

Revenue from export benefits arising from duty drawback scheme, remission of duties and taxes on exported product scheme are recognized on export of goods in accordance with their respective underlying scheme at fair value of consideration received or receivable. The benefit accrued under the above scheme is included under the head “Revenue from Operations” under ‘Export and other incentives’.

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.

17 Employee benefits

Short-term employee benefits

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STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

Other long-term employee benefits

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.

The Company also has other longterm employee benefits in the nature of compensated absences. Provision for compensated absences 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.

Initial Recognition and measurement

Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument.

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 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 financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus or minus, for an item not at FVTPL,transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

18 Earnings per share

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) Financial Assets
Classification and Subsequent measurement

For purposes of subsequent measurement, financial assets of the Company are classified in three categories:

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) At amortised cost
b) At fair value through profit and loss (FVTPL)
c) At fair value through other comprehensive income (FVTOCI)debt instrument or equity instrument.

19 Cash and cash equivalents

Financial asset is measured at amortised cost if both the following conditions are met:

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.

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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.

Equity Instruments

All equity instruments 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.

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 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.

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.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

Investments in Subsidiaries are carried at cost less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal of investments in subsidiaries, the difference between net disposal proceeds and the carrying amounts are recognized in the Standalone Statement of Profit and Loss.
it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Derecognition

Financial assets not classified as measured at amortised cost or FVOCI 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 asset (or, where applicable, a part of a financial asset) is primarily derecognised (i.e. removed from the balance sheet) when:
a) The rights to receive cash flows from the asset have expired, or

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STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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.

the Company continues to recognise the transferred asset in its entirety and recognises a financial liability for the consideration received.

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 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.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a passthrough 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.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company’s historical experience and informed credit assessment, that includes forwardlooking information. The Company considers a financial asset to be in default when the asset is unlikely to be realised in full.

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.

Credit Impaired Financial Assets

At each reporting date, the Company assesses whether financial assets carried at amortised cost and debt securities at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events

When the Company has retained substantially all the risks and rewards of ownership of the transferred asset,

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

Subsequent measurement

that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

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.

Evidence that a financial asset is creditimpaired includes the following observable data:

significant financial difficulty of the debtor;

Trade and other payables

a breach of contract such as a default; or
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.
it is probable that the debtor will enter bankruptcy or other financial reorganisation

Offsetting of financial instruments

Presentation of allowance for ECL in the balance sheet

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.

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets.

Write Off

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

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

The Company’s financial liabilities includes borrowings, trade and other payables including financial guarantee contracts and derivative financial instruments.

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STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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.

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. The Company determines the existence of an economic relationship between the hedging instrument and hedged item based on the currency/reference interest rates, contract amount and timing of their respective cash flows. The Company assesses whether the derivative designated in each hedging relationship is expected to be and has been effective in offsetting changes in cash flows of the hedged item using the hypothetical derivative method. In these hedge relationships, the main expected sources of ineffectiveness are:

Equity instrument

Equity instruments are any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

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.

  - the effect of the counterparties’ and the Company’s own credit risk on the fair value of the forward foreign exchange contracts or swaps, which is not reflected in the change in the fair value of the hedged cash flows attributable to the change in exchange rates or interest rates and

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 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 determine the initial recognition of the financial instrument as Fair Value Hedge or Cashflow hedge. The documentation includes the Company’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 timing of the hedged transactions

Hedges entered into by the Company 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.

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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.

or liability with a corresponding gain or loss recognised in statement of 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 statement of profit and loss.

For the purpose of hedge accounting, hedges are classified as:

a) Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability.
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.
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

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.

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Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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.

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 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:

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 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.

22 Fair value measurement

The Company measures some of its financial instruments at fair value at each balance sheet date.

a) Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

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:

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).
c) Level 3 — Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
a) In the principal market for the asset or liability, or
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
b) In the absence of a principal market, in the most advantageous market for the asset or liability.

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

A corresponding amount is recognised directly in equity.

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 probable and is expected within one year from the date of classification.

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.

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.

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.

Unallocable items includes general corporate income and expense items which are not allocated to any business segment.

A discontinued operation is a component of the Company that either has been disposed of, or is classified as held for sale, and:

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) 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

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.

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.

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Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

26 Interest and dividend income

when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statements.

Interest income is recognised when it is probable that the economic benefits will flow to the Company using the effective interest rate method. The ‘effective interest rate’ is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to the gross amount of the financial asset or the amortised cost of the financial liability, The effective. Interest income is accrued on a time basis, by reference to the principal outstanding.

Ind AS 12 – Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrows the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company does not expect this amendment to have any significant impact in its financial statements.

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).

27 Recent pronouncements

Ind AS 8 – Accounting Policies, Changes in Accounting Estimates and Errors

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 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1, 2023, as below:

This amendment has introduced a definition of ‘accounting estimates’ and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements.

Ind AS 1 – Presentation of Financial Statements

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

Reverse factoring: presentation of amounts related to supply chain financing arrangements in the balance sheet and in the statement of cash flows - Note 18

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.

B) Assumptions and Estimation uncertainties

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

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 financial statements is included in the following notes.

Recognition and estimation of tax expense including determination of applicable tax rate for measuring deferred tax balances – Note 1.B.15
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

A) Judgement

Classification and lease term determination of leasing arrangement – Note 1.B.9
Recognition and measurement of contingencies: key assumptions about the likelihood and magnitude of an outflow of resources – Note 1.B.13
Derecognition of trade receivables and hedge effectiveness - Note 1.B.20

222 Annual Report 2022-23

Annual Report 2022-23 223

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(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
Cost
----- End of picture text -----

Cost
Balance at March 31, 2021	317.18	71.77	725.48	5,988.46	27.61	65.16	43.69	7,239.35
Additions / adjustments	-	1.08	31.80	536.32	0.99	11.06	10.08	591.33
Disposals/adjustments	-	-	(5.84)	(59.86)	(0.54)	(3.91)	(4.85)	(75.00)
Balance at March 31, 2022	317.18	72.85	751.44	6,464.92	28.06	72.31	48.92	7,755.68
Additions / adjustments	8.09	16.34	151.66	1,780.14	3.97	13.56	31.70	2,005.46
Disposals/adjustments	(3.40)	-	(0.55)	(25.13)	(0.31)	(2.33)	(12.71)	(44.43)
Balance at March 31, 2023	321.87	89.19	902.55	8,219.93	31.72	83.54	67.91	9,716.71
Accumulated depreciation
Balance at March 31, 2021	-	7.85	105.22	1,484.82	11.23	36.67	25.24	1,671.03
Depreciation expenses	-	1.67	21.38	347.26	1.91	7.86	7.76	387.84
Disposals/adjustments	-	-	(0.63)	(45.56)	(0.32)	(3.53)	(3.64)	(53.68)
Balance at March 31, 2022	-	9.52	125.97	1,786.52	12.82	41.00	29.36	2,005.19
Depreciation expenses	-	1.92	25.62	386.58	2.09	7.81	9.76	433.78
Disposals/adjustments	-	-	(0.09)	(20.98)	(0.21)	(2.06)	(8.17)	(31.51)
Balance at March 31, 2023	-	11.44	151.50	2,152.12	14.70	46.75	30.95	2,407.46
Net block
Balance at March 31, 2022	317.18	63.33	625.47	4,678.40	15.24	31.31	19.57	5,750.50
Balance at March 31, 2023	321.87	77.75	751.05	6,067.81	17.02	36.79	36.96	7,309.25

Notes:

(i) Borrowing cost capitalised during the year is 44.98 crores (Previous year: 17.85 crores) with a capitalisation rate ranging from 0.49% to 3.82% (Previous year: 0.40% to 3.55%).
(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 7.22 crores (Previous year: 8.49 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.
(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 19.66 crores (Previous year: 37.80 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) Disposals during the previous year include property, plant and equipment classified as assets held for sale. Refer note 40.
vii) Capital Work in Progress

Particulars	As at March 31, 2023	As at March 31, 2022
Opening Balance	1,617.04	436.13
Additions during the year	2,517.37	1,772.24
Less: Amounts capitalised duringtheyear*	2,005.46	591.33
Closing Balance	2,128.95	1,617.04

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

2.1 CAPITAL WORK-IN-PROGRESS (CWIP)

(i) Ageing of capital work-in-progress :

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Amount in CWIP for a period of
Less than 1 - 2 years 2 - 3 years More than Total
1 year 3 years
Projects in progress
As at March 31, 2023 1,859.52 218.01 43.92 7.50 2,128.95
As at March 31, 2022 1,509.77 99.77 7.50 - 1,617.04
(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, 2023
To be completed in
Less than 1 - 2 years 2 - 3 years More than
1 year 3 years
Projects in progress
Integrated facility for development of PTFE 453.03 - - -
Thermal oxidation facility 108.39 - - -
Pharma intermediates plant 223.32 - - -
Dedicated facilities to produce agrochemicals 115.22 - - -
intermediates
Capacity enhancement of TCF value chain 83.97 - - -
Others * 110.03 5.40 - -
1,093.96 5.40 - -
As at March 31, 2022
To be completed in
Less than 1 1 - 2 years 2 - 3 years More than 3
year years
Projects in progress
Chloromethanes plant 333.38 - - -
Augmentation of power and steam capacity 138.23 - - -
Others * 113.60 0.02 - -
585.21 0.02 - -
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(ii) CWIP completion schedule for capital work-in-progress whose completion is overdue or has exceeded its cost compared to its original plan :
Comprises projects not considered material at an individual level. Also refer note no. 2 (vii)
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 for additions in property, plant and equipment.

224 Annual Report 2022-23

Annual Report 2022-23 225

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

3 GOODWILL

						Amount
	Cost
	Balance at March 31, 2021					0.62
	Additions					-
	Disposals					-
	Balance at March 31, 2022					0.62
	Additions					-
	Disposals					-
	Balance at March 31, 2023					0.62
	Accumulated impairment losses
	Balance at March 31, 2021					-
	Additions (Refer to note 40)					0.62
	Balance at March 31, 2022					0.62
	Additions					-
	Balance at March 31, 2023					0.62

				As at March 31, 2023 As at March 31, 2022
	CarryingAmount				-	-
					-	-
OTHER INTANGIBLE ASSETS
	Particulars	Trade Marks/ Brands	Technical Knowhow	Software	Others	Total
	Cost
	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
	Additions / adjustments	-	-	5.31	-	5.31
	Disposals	-	-	-	-	-
	Balance at March 31, 2023	73.25	55.19	35.62	19.39	183.45
	Accumulated amortisation
	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
	Amortisation expenses	2.45	1.70	3.16	0.05	7.36
	Disposals	-	-	-	-	-
	Balance at March 31, 2023	19.83	11.05	27.84	18.65	77.37
	Carrying Amount
	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
	Additions / adjustments	-	-	5.31	-	5.31
	Disposals	-	-	-	-	-
	Amortisation expenses	(2.45)	(1.70)	(3.16)	(0.05)	(7.36)
	Balance at March 31, 2023	53.42	44.14	7.78	0.74	106.08

4 OTHER INTANGIBLE ASSETS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

5 INVESTMENTS

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As at As at
March 31, 2023 March 31, 2022
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Non-current
Investment in equity instruments
Subsidiary companies	88.66	88.66
Others	4.16	4.16
	92.82	92.82
Aggregate book value of unquoted investments	92.82	92.82
Aggregate amount of impairment in value of investments	4.34	4.34
Current
Investment in mutual funds	353.73	121.86
Investment in debentures / bonds	136.32	194.88
	490.05	316.74
Aggregate book value and market value of unquoted investments	353.73	121.86
Aggregate book value and market value of quoted investments	136.32	194.88

5.1 Investment in subsidiaries (at cost)

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As at March 31, 2023 As at March 31, 2022
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 SRF Holiday Home	4,000,000	4.00	4,000,000	4.00
Limited (A wholly owned subsidiary)
Equity shares of Euro 100 each fully paid up of SRF Global	128,920	79.60	128,920	79.60
BV (A wholly owned subsidiary)
Equity shares of`10 each fully paid up of SRF Altech Limited	5,000,000	5.00	5,000,000	5.00
(A wholly owned subsidiary)
Contribution in SRF Employees Welfare Trust (Controlled	-	0.06	-	0.06
trust)
		88.66		88.66

5.2 Other equity instruments (at fair value through other comprehensive income)

	As at March 31, 2023 As at March 31, 2022
	Number Amount Number Amount
Unquoted investments (Non-current) Equity shares of`10 each fully paid up of Malanpur Captive<br>Power Limited<br>4,221,535<br>4.22<br>4,221,535<br>4.22<br>Less: Impairment in value of investment<br>(4.22)<br>(4.22)<br>Equity shares of`10 each fully paid up of Vaayu Renewable Energy (Tapti) Private Limited 50,000 0.05 50,000 0.05 Equity shares of`10 each fully paid up of Suryadev Alloys &<br>Power Private Limited<br>1,354,000<br>4.11<br>1,354,000<br>4.11<br>Equity shares of`10 each fully paid up of Sanghi Spinners India Limited 670,000 0.12 670,000 0.12 Less: Impairment in value of investment (0.12) (0.12)
4.16 4.16

226 Annual Report 2022-23

227

Annual Report 2022-23

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

5.3 Investment in mutual funds (at fair value through profit and loss)

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

As at March 31, 2023 As at March 31, 2022
Number Amount Number Amount
Unquoted investments (Current)
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Unquoted investments (Current)	Number	Amount	Number	Amount
ICICI Prudential P1543 Floating Interest Fund- Growth Plan	3,612,365	128.63	3,612,365	121.86
Axis Liquid Fund - Regular - Growth Plan	302,077	75.04	-	-
Aditya Birla Sun Life Liquid Fund - Regular - Growth Plan	2,085,916	75.05	-	-
Kotak Overnight Fund - Regular - Growth Plan	629,688	75.01	-	-
		353.73		121.86

5.4 Investment in debentures / bonds (at fair value through profit and loss)

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As at March 31, 2023 As at March 31, 2022
Number Amount Number Amount
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Quoted investments (Current)
Bonds
9.56% State Bank of India Perpetual Bonds 2023 of	500	50.36	500	52.33
`10,00,000 each
8.99% Bank of Baroda Perpetual Bonds 2024 of	550	55.60	550	56.92
`10,00,000 each
8.85% HDFC Bank Limited Perpetual Bonds 2022 of	-	-	500	50.08
`10,00,000 each
8.50% State Bank of India Perpetual Bonds 2024 of	248	25.27	248	25.40
`10,00,000 each
8.50% State Bank of India Perpetual Bonds 2025 of	50	5.09	50	5.11
`10,00,000 each
Debentures
9.50% non convertible debentures of Piramal Capital &	-	-	63	5.04
HousingFinance Limited 2022 of`8,00,000 each
		136.32		194.88

6 LOANS

(unsecured and considered good, unless otherwise stated)

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As at As at
March 31, 2023 March 31, 2022
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Non- current
Loans to subsidiaries (Refer note 41(d)(iii))	246.63	395.33
Loans to ofcers *	28.54	3.83
Loans to employees	16.18	10.89
	291.35	410.05
Current
Loans to subsidiaries (Refer note 41(d)(iii))	233.73	170.39
Loans to ofcers *	1.02	0.95
Loans to employees	8.60	7.08
Others (other than related parties)
Credit impaired	2.74	2.74
Less : Provision for credit impaired loans	(2.74)	(2.74)
	243.35	178.42

Officers as defined under sec 2 (59) of the Companies Act 2013

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

7 OTHER FINANCIAL ASSETS

(unsecured and considered good, unless otherwise stated)

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As at As at
March 31, 2023 March 31, 2022
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Non-Current
Derivatives carried at fair value through other comprehensive
income
- Forward exchange contracts used for hedging	-	60.65
- 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)	3.52	3.55
Other than relatedparties	45.95	30.11
	65.33	140.53
Current
Derivatives carried at fair value through proft and loss
- Forward exchange contracts used for hedging	-	3.64
Derivatives carried at fair value through other comprehensive
income
- Forward exchange contracts used for hedging	-	60.52
- Interest rate swaps used for hedging	0.89	3.16
Other fnancial assets carried at amortised cost
- Insurance claim recoverable	3.60	1.06
- Government grants and claims recoverable	220.74	135.07
- Security deposits
Other than related parties	1.24	1.26
- Others	14.17	21.80
	240.64	226.51

8 OTHER ASSETS

(unsecured and considered good, unless otherwise stated)

	As at March 31, 2023	As at March 31, 2022
Non-Current
Capital advances	183.02	188.60
Prepaid expenses	0.59	0.71
Goods and Services Tax and other taxes/duties paid under	25.79	18.05
protest
Others	0.32	0.12
	209.72	207.48

228 Annual Report 2022-23

Annual Report 2022-23 229

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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As at As at
March 31, 2023 March 31, 2022
Current
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Prepaid expenses	22.02	14.50
Goods and Services tax recoverable	53.33	41.88
Export incentives recoverable	8.71	16.21
Deposits with customs and excise authorities	17.12	15.35
Advance to suppliers	105.66	90.78
Others	1.81	1.24
	208.65	179.96

9 INVENTORIES

(Valued at lower of cost and net realisable value)

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As at As at
March 31, 2023 March 31, 2022
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Raw material (including packing material)	893.08	855.01
Stock in progress	198.74	189.36
Finished goods	391.52	432.51
Stores and spares (including fuel)	349.58	267.95
Traded goods	15.75	6.05
	1,848.67	1,750.88
Goods-in-transit included above :
Raw material (including packing material)	204.43	239.65
Finished goods	52.53	119.92
Stores and spares (including fuel)	2.66	2.50
Traded goods	2.46	4.83
	262.08	366.90

Notes

(i) The cost of inventories recognised as an expense includes 5.46 crores (Previous year: 3.18 crores) in respect of write-downs of inventory to net realisable value. The write downs is included in “Changes in inventories of finished goods, work-in-progress and stock-in-trade”.

(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

10 TRADE RECEIVABLES

	As at March 31, 2023	As at March 31, 2022
Unsecured, considered good	1,436.38	1,350.99
Unsecured, credit impaired	2.64	2.28
Less: Loss allowance	(2.64)	(2.28)
	1,436.38	1,350.99

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.

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(ii) Ageing of receivables :

Outstanding for following periods from due date of payment	As at March 31, 2023
	Undisputed trade receivables - considered good Undisputed trade receivables - credit impaired Undisputed trade receivables - which have signifcant increase in credit risk Disputed trade receivables - considered good Disputed trade receivables - credit impaired Disputed trade receivables - which have signifcant increase in credit risk Total
Not due Less than 6 months 6 months - 1 year 1 - 2 years 2 - 3 years More than 3 years	1,259.15 - - - - - 1,259.15 177.23 - - - - - 177.23 - 0.58 - - - - 0.58 - 0.46 - - - - 0.46 - 0.02 - - - - 0.02 - 1.58 - - - - 1.58
	1,436.38 2.64 - - - - 1,439.02

Outstanding for following periods from due date of payment	As at March 31, 2022
	Undisputed trade receivables - considered good Undisputed trade receivables - credit impaired Undisputed trade receivables - which have signifcant increase in credit risk Disputed trade receivables - considered good Disputed trade receivables - credit impaired Disputed trade receivables - which have signifcant increase in credit risk Total
Not due Less than 6 months 6 months - 1 year 1 - 2 years 2 - 3 years More than 3 years	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

(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, 2023 are of 1,020.76 crores (Previous year: 714.62 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) At March 31, 2023, the carrying amount of the receivable from the Company’s most significant customer was 118.98 crores (Previous year: 113.21 crores)
(v) Refer Note 15.1 for information on trade receivables pledged as security by the Company.

230 Annual Report 2022-23

Annual Report 2022-23 231

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

11 CASH AND CASH EQUIVALENTS

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As at As at
March 31, 2023 March 31, 2022
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Balances with banks
Current accounts	122.35	97.94
Exchange earners foreign currency (EEFC) accounts	34.19	20.98
Deposit accounts with original maturity of three months or less*	370.00	200.00
Cash on hand	0.71	0.72
	527.25	319.64

Also refer to note 15.

12 BANK BALANCES OTHER THAN ABOVE

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As at As at
March 31, 2023 March 31, 2022
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Earmarked balances
- Margin money	1.44	1.95
- Unclaimed dividend accounts	6.83	6.72
Other deposit accounts
- Deposit accounts with original maturity beyond three	0.21	0.20
months upto twelve months
	8.48	8.87

13 SHARE CAPITAL

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As at As at
March 31, 2023 March 31, 2022
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Authorised share capital:
320,000,000 (Previous Year - 320,000,000) Equity shares of	320.00	320.00
`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
	336.00	336.00
Issued share capital:
300,481,580 (Previous Year - 300,477,780) Equity Shares of	300.48	300.48
`10 each
Subscribed capital:
296,424,825 (Previous Year - 296,421,025) Equity Shares of	296.42	296.42
`10 each fully paid up
Add: Forfeited shares - Amount originally paid up	1.02	1.02
	297.44	297.44

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(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, 2021	59,245,205	59.24
Add : Movement during the year*	237,175,820	237.18
(also refer note 34 on "Employee Share Based Payments")
Balance at March 31, 2022	296,421,025	296.42
Add : Movement during the year	3,800	^
(refer note 34 on "Employee Share Based Payments")
Balance at March 31, 2023	296,424,825	296.42

^ Amount in absolute: ` 38,000

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 previous year, the Company had 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).

Terms/ rights attached to equity shares :

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, 2023, first interim dividend of 3.60 per share and second interim dividend of 3.60 per share were recognised as distributions to equity shareholders, aggregating 213.43 crores (Previous year: 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), aggregating 211.89 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, 2023
KAMA Holdings Limited, the Holding Company	149,645,000
As at March 31, 2022
KAMA Holdings Limited, the Holding Company	150,245,000

232 Annual Report 2022-23

Annual Report 2022-23 233

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

13.3 Details of equity shares held by promoters:

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Promoter name Number of fully paid % holding in that % change
equity shares class of shares during the year
As at March 31, 2023
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1. Arun Bharat Ram	137,500	0.05%	-
2. KAMA Holdings Limited	149,645,000	50.48%	(0.40)%
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%*

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, 2023 As at March 31, 2022
	Number of shares held % holding in that class of shares Number of shares held % holding in that class of shares
Fully paid equity shares KAMA HoldingsLimited	149,645,000 50.48% 150,245,000 50.69%

14 OTHER EQUITY

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As at As at
March 31, 2023 March 31, 2022
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General reserve	711.04	648.54
Retained earnings	7,643.98	5,841.95
Cash fow hedging reserve	(150.22)	34.49
Capital redemption reserve	10.48	10.48
Capital reserve	219.19	219.19
Debenture redemption reserve	-	62.50
Employee share based payment reserve	11.63	3.22
Reserve for equity instruments through other comprehensive	(4.22)	(4.22)
income
Securities premium	509.56	509.56
Cost of hedging reserve	4.67	1.65
	8,956.11	7,327.36

14.1 General reserve

	As at March 31, 2023	As at March 31, 2022
Balance at beginning of year	648.54	648.54
Increase / (decrease) during the year	62.50	-
Balance at end ofyear	711.04	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, 2023

(All amounts in ` Crores, unless otherwise stated)

14.2 Retained earnings

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As at As at
March 31, 2023 March 31, 2022
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Balance at beginning of year	5,841.95	4,551.58
Proft for the year	2,023.36	1,507.01
Other comprehensive income arising from remeasurement of	(7.90)	(4.75)
defned beneft obligation * (Refer note 33.2 (iv))
Payment of dividend on equity shares	(213.43)	(211.89)
Transfer to debenture redemption reserve	-	-
Balance at end ofyear	7,643.98	5,841.95

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 4.24 crores (Previous year: 2.55 crore)

14.3 Cash flow hedging reserve

(Refer note 38.3.1 (C))

	As at March 31, 2023	As at March 31, 2022
Balance at beginning of year	34.49	7.53
Recognised / (released) during the year	(252.29)	39.99
Income tax related to above	67.58	(13.03)
Balance at end ofyear	(150.22)	34.49

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, 2023	As at March 31, 2022
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.

234 Annual Report 2022-23

Annual Report 2022-23 235

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

14.5 Capital reserve

	As at March 31, 2023	As at March 31, 2022
Balance at beginning of year	219.19	219.19
Increase / (decrease) during the year	-	-
Balance at end of year	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, 2023	As at March 31, 2022
Balance at beginning of year	62.50	62.50
Transfer from retained earnings	-	-
Transfer to general reserve	(62.50)	-
Balance at end of year	-	62.50

The Company had issued non-convertible debentures which has been repaid during the year. The Company had created debenture redemption reserve out of the profits of the Company available for payment of dividend and the same has been transferred to General Reserve during the year.

14.7 Employee share based payment reserve

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As at As at
March 31, 2023 March 31, 2022
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Balance at beginning of year	3.22	2.54
Increase / (decrease) during the year	8.41	10.91
Released on vesting of shares issued under employee share	-	(10.23)
purchase scheme
Balance at end of year	11.63	3.22

The Company has allotted equity shares to certain employees and officers 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 and officers as part of their remuneration. Refer note 34 for further details of the scheme.

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

14.8 Reserve for equity instruments through other comprehensive income

	As at March 31, 2023	As at March 31, 2022
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.

14.9 Securities premium

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As at As at
March 31, 2023 March 31, 2022
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Balance at beginning of year	509.56	736.25
Recognised on issue of equity shares	-	-
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	509.56

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.

14.10 Cost of hedging reserve

(Refer note 38.3.1 (C))

	As at March 31, 2023	As at March 31, 2022
Balance at beginning of year	1.65	0.62
Recognised / (released) during the year	3.81	1.48
Income tax related to above	(0.79)	(0.45)
Balance at end ofyear	4.67	1.65

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.

236 Annual Report 2022-23

Annual Report 2022-23 237

CORPORATE OVERVIEW STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

15 BORROWINGS

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As at As at
March 31, 2023 March 31, 2022
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Non-current
Secured
2,500 Nos. (Previous year: 2,500 Nos.), Three Months T Bill	-	250.00
plus 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)	1,982.57	1,461.15
Term Loans from others* (Refer note 15.1.3)	109.51	141.07
Less: Current maturities of long-term borrowings*	(365.55)	(662.49)
	1,726.53	1,189.73
* Above amount of borrowings are net of upfront fees paid`6.29 crores (Previous year:`2.39 crores).
^ Out of a term loan of`616.57 crores obtained towards the end of the current year, unutilised balance of`370 crores
as on March 31, 2023 has been temporarily invested in fxed deposit with a bank. (Previous Year: Out of a term loan
of`227.91 crores obtained towards the end of the year, unutilised balance of`200 crores as on March		31, 2022 was
temporarily invested in fxed deposit with a bank.)
Current
Secured
Loans repayable on demand from banks (Refer note 15.1.4.(i))	381.97	158.30
Current maturities of long-term borrowings	365.55	662.49
	747.52	820.79
Unsecured
Loans repayable on demand from banks	565.21	464.38
Commercial papers from banks and others #	-	300.00
	565.21	764.38
	1,312.73	1,585.17

# Maximum amount due during the year is `500.00 crores (Previous year:` 500.00 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.

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

15.1 Details of security of the secured loans:

Details of Loan As at As at Security March 31, March 31, 2023[#] 2022[#]
1 Nil (Previous Year : 2,500), - 250.00 Debentures were secured by hypothecation of 3 Months T-Bill + 188 bps, Listed, Company’s moveable properties, both present and Secured, Redeemable, Nonfuture, situated at Manali, Viralimalai (other than Convertible Debentures of the moveable assets of Coated Fabrics Business) and
face value of 10 lakhs each * Gummidipoondi in the State of Tamil Nadu, Jhiwana in
Terms and conditions the State of Rajasthan, Malanpur and Special Economic a) Redeemable at face value in Zone, Indore in the State of Madhya Pradesh, Kashipur one single instalment at the in the State of Uttarakhand (other than moveable end of 2[nd] year from the date assets of Laminated Fabrics Business) and Dahej in of allotment. the State of Gujarat (excluding certain assets). These
b) Coupon is payable on a debentures were repaid during the year and the charge quarterly basis every year. was released.
b) Coupon is payable on a quarterly basis every year.

Moveable property

2 Term loan from Banks *
1,988.70 1,463.21 (a)(i) Out of the loans as at 2(i), loans aggregating to 1,988.70 crores (Previous Year – 1,008.83 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).

(a)(ii) Out of the loans as at 2(i), loans aggregating to Nil (Previous Year – 454.38 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 259.69 crores (Previous Year – 516.71 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.

238 Annual Report 2022-23

Annual Report 2022-23 239

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

Details of Loan As at As at Security March 31, March 31, 2023[#] 2022[#] (b)(ii) Out of the loans as at 2(b)(i) loans aggregating to 188.83 crores (Previous Year – 289.09 crores) are additionally 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 109.67 141.40 Loan of 109.67 crores (Previous Year – 141.40 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 Loans repayable on demand 381.97 158.30 Secured by hypothecation of stocks, stores and book 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.
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. # Gross of upfront fees paid 6.29 crores (Previous year - 2.39 crores).

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

As at March 31, 2022

NON CURRENT BORROWINGS

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Loan Category Frequency Interest rate Up to Up to Up to From
of principal March 31, March 31, March 31, 2025 to
repayments 2023 2024 2025 2027
----- End of picture text -----

Redeemable Non-	Redeemable at face	Floating rate at	250.00	-	-	-
Convertible Debentures	value on maturity	5.63%
Term loan from banks	Quarterly payments	Ranging from 0.94%
		to 5.85%	334.19	270.02	205.28	122.54
	Half yearly 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 others	Half yearly payments	Floating rate at	40.38	40.38	40.38	20.27
		1.46%
			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%.

15.2 Terms of loans

As at March 31, 2023

NON CURRENT BORROWINGS

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Loan Category Frequency Interest rate Up to Up to Up to From
of principal March 31, March 31, March 31, 2026 to
repayments 2024 2025 2026 2028
----- End of picture text -----

Term loan from	Quarterly payments	Ranging from 0.94% to	298.09	335.38	399.06	421.98
banks		5.75%
	Half yearly payments	At 1.23%	26.14	261.42	-	-
	Bullet	Floating rate; 5.45% as
		at March 31, 2023	-	246.63	-	-
Term loan from	Half yearly payments	Floating rate; 5.84% as
others		at March 31, 2023	43.83	43.83	22.01	-
			368.06	887.26	421.07	421.98

Amounts mentioned above are gross of upfront fees paid of ` 6.29 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 10.78%.

Terms of repayment

1 Rupee term loans of 140.63 crores are repayable in 9 quarterly instalments from April 2023 (Previous year: 203.13 crores repayable in 13 quarterly instalments from April 2022).
2 Foreign currency term loan of 188.83 crores are repayable in 8 quarterly instalments from May 2023 (Previous year: 265.87 crores are repayable in 12 quarterly instalments from May 2022).
3 Foreign currency term loan of 44.04 crores are repayable in 3 quarterly instalments from April 2023 (Previous year: 94.66 crores are repayable in 7 quarterly instalments from April 2022).
4 Foreign currency term loan of 109.67 crores are repayable in 5 half yearly instalments from April 2023 (Previous year: 141.40 crores are repayable in 7 half yearly instalments from April 2022).
5 Foreign currency term loan of 26.82 crores are repayable in 1 quarterly instalments in April 2023 (Previous year: 109.29 crores are repayable in 5 quarterly instalments from April 2022).
6 Foreign currency term loan of 287.57 crores are repayable in 2 half yearly instalments from September 2023 and then 12 monthly instalments from April 2024 onwards. (Previous year: 288.99 crores is repayable in 4 half yearly instalments from September 2022 and then 12 monthly instalments from April 2024 onwards).
7 Foreign currency term loan of 246.63 crores are repayable in one bullet instalment in March 2025 (Previous year: 227.19 crores are repayable in one bullet instalment in March 2025).

240 Annual Report 2022-23

Annual Report 2022-23 241

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

8 Foreign currency term loan of 232.12 crores are repayable in 16 quarterly instalments from June 2023 (Previous year: 227.19 crores are repayable in 17 quarterly instalments from March 2023).
9 Foreign currency term loan of ` 205.52 crores are repayable in 16 quarterly instalments from February 2024 (Previous year: Nil).
10 Foreign currency term loan of ` 616.54 crores are repayable in 9 quarterly instalments from February 2025 (Previous year: Nil).
11 Rupee term loans from banks of 8.22 crores was repaid in the current year (Previous year: 8.22 crores repayable in 2 quarterly instalments from June 2022).
12 Redeemable non convertible debenture of 250 crores was repaid in the current year (Previous year: 250 crores repayable in one bullet instalment in September 2022).
13 Foreign currency term loan from banks of 23.67 crores was repaid in the current year (Previous year: 23.67 crores is repayable in 1 quarterly instalment in June 2022).
14 Foreign currency term loan from banks of 15.00 crores was repaid in the current year (Previous year: 15.00 crores is repayable in one bullet instalment in June 2022).

16 PROVISIONS

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As at As at
March 31, 2023 March 31, 2022
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Non-Current
Provision for employee benefts
Provision for compensated absences (Refer note 33.3)	51.67	44.69
Provision for retention pay	0.17	0.17
	51.84	44.86
Current
Provision for employee benefts
Provision for compensated absences (Refer note 33.3)	6.28	5.42
	6.28	5.42

17 DEFERRED TAX (NET)

The following is the analysis of deferred tax assets / (liabilities) presented in balance sheet

	As at March 31, 2023	As at March 31, 2022
Deferred tax assets	70.13	79.54
Deferred tax liabilities	(819.47)	(692.58)
Deferred tax liabilities, net	(749.34)	(613.04)

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

The major components of deferred tax assets / (liabilities) arising on account of temporary differences are as follows:

2022-23	Opening balance	Recognised in statement of proft and loss	Recognised in other comprehensive income	MAT Credit Entitlement utilised	Closing balance
Deferred tax assets
Expenses deductible in	17.16	(2.62)	-	-	14.54
future years
Provision for credit	0.57	0.09	-	-	0.66
impaired loans / receivables
MAT Credit Entitlement	58.45	94.13	-	(152.58)	-
Cash fow hedges / Cost of	-	-	49.04	-	49.04
hedging reserve
Others	3.36	2.53	-	-	5.89
	79.54	94.13	49.04	(152.58)	70.13
Deferred tax liabilities
Property, plant and	(661.89)	(135.48)	-	-	(797.37)
equipment and intangible
assets
Investment in mutual funds	(11.94)	(0.96)	-	-	(12.90)
Cash fow hedges / Cost of	(17.75)	-	17.75	-	-
hedging reserve
Others	(1.00)	(8.20)	-	-	(9.20)
	(692.58)	(144.64)	17.75	-	(819.47)
Total	(613.04)	(50.51)	66.79	(152.58)	(749.34)

2021-22	Opening balance	Recognised in statement of proft and loss	Recognised in other comprehensive income	MAT Credit Entitlement utilised	Closing balance
Deferred tax assets
Expenses deductible in future	15.08	2.08	-	-	17.16
years
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	(603.82)	(58.07)	-	-	(661.89)
and intangible assets
Investment in mutual funds	(10.85)	(1.09)	-	-	(11.94)
Cash fow hedges / Cost of	(4.27)	-	(13.48)	-	(17.75)
hedging reserve
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)
Note:

As per the relevant accounting standards, the Company continues to reassess its MAT utilization and its recognition. Basis current profitability and reassessment of certain tax positions, the Company has recognized an additional MAT credit of 94.13 crores pertaining to earlier years (including 74.02 crores which was previously written off during the year 2020-21), and the same has also been utilised in current financial year.

242 Annual Report 2022-23

Annual Report 2022-23 243

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

18 TRADE PAYABLES

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As at As at
March 31, 2023 March 31, 2022
Total outstanding dues of micro enterprises and small enterprises [#]
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- Acceptances*	5.33	3.61
- Other than acceptances	62.46	52.37
Total outstanding dues of creditors other than micro enterprises
and small enterprises
- Acceptances*	417.05	192.59
-Otherthanacceptances	1,164.33	1,091.80
	1,649.17	1,340.37

Refer to note 18.1

The Company participates in a supply chain financing arrangement (SCF) which is disclosed under trade payables / other financial liabilities enabling suppliers to take early payment by selling their receivables from the Company.

The Company has not derecognised the original liabilities to which the arrangement applies because neither a legal release was obtained nor the original liability and the payment terms are modified on entering into the arrangement. The Company therefore discloses such amounts within trade payables / other financial liabilities because the nature and function of the financial liability remains same.

Ageing of trade payables :

Outstanding for following periods from due date of payment	As at March 31, 2023
	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	- 317.95 - - 317.95 67.79 1,203.18 - - 1,270.97 - 58.56 - - 58.56 - 0.19 - - 0.19 - 0.21 - - 0.21 - 1.29 - - 1.29
	67.79 1,581.38 - - 1,649.17

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

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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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As at As at
March 31, 2023 March 31, 2022
----- End of picture text -----

Amount remaining unpaid to suppliers under MSMED (suppliers)
as at the end of year
- Principal amount**	127.90	108.82
- Interest due thereon	0.01	-
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	0.01	-
- Interest remaining unpaid as at the end of the year	0.01	-
Interest remaining due and payable even in the succeeding years,	0.01	-
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 financial liabilities (refer note 19).

19 OTHER FINANCIAL LIABILITIES

	As at March 31, 2023	As at March 31, 2022
Non-Current
Derivatives carried at fair value through other comprehensive
income
Forward exchange contracts used for hedging	26.24	-
Payables to capital creditors
Total outstanding dues of creditors other than micro
enterprises and small enterprises
- Acceptances*	133.23	153.53
	159.47	153.53

244 Annual Report 2022-23

Annual Report 2022-23 245

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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

As at As at
March 31, 2023 March 31, 2022
----- End of picture text -----

Current
Interest accrued but not due on borrowings	13.25	3.70
Unpaid dividends^	6.83	6.72
Security deposits received	7.63	8.15
Payables to capital creditors
Total outstanding dues of micro enterprises and small enterprises#
- Acceptances*	0.67	10.56
- Other than acceptances	59.45	42.28
Total outstanding dues of creditors other than micro enterprises
and small enterprises
- Acceptances*	56.95	-
- Other than acceptances Derivatives carried at fair value through proft and loss	97.04	60.36
Forward exchange contracts used for hedging	6.98	-
Derivatives carried at fair value through other comprehensive income
Forward exchange contracts used for hedging	34.48	-
Payable to banks towards early receipts from receivables sold	96.30	14.03
Others	3.41	2.35
	382.99	148.15

Refer footnote to note 18

^ 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

20 TAX ASSETS AND LIABILITIES

	As at March 31, 2023	As at March 31, 2022
Non- Current tax assets
Advance tax (net of provision for tax)	85.57	21.31
Current tax liabilities
Provision for tax (net of advance tax)	11.65	9.75

21 OTHER LIABILITIES

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As at As at
March 31, 2023 March 31, 2022
Non-current
----- End of picture text -----

Non-current
Deferred government grants*	29.20	-
	29.20	-
Current
Contract liability (Refer note 39)	40.37	23.85
Statutory liabilities	29.13	30.78
Payable to gratuity trust (Refer note 33.2)	8.38	11.57
Other payables	18.35	41.36
	96.23	107.56

Represents grants related to duty saved on import of capital goods under the Exports Promotion Capital Goods (EPCG) scheme. This is being amortised in profit and loss as and when the criteria of meeting export obligation as mentioned in EPCG license is fulfilled. Under such scheme, the Company is committed to export prescribed times of the duty saved on import of capital goods over a specified period of time.

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

22 REVENUE FROM OPERATIONS

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

Year ended Year ended
March 31, 2023 March 31, 2022
----- End of picture text -----

Sale of products
Manufactured goods	11,681.60	9,696.55
Tradedgoods	124.49	140.00
	11,806.09	9,836.55
Other operating revenues
Export and other incentives	86.14	48.42
Scrap sales	55.63	45.92
Provision/ liabilities no longer required written back	27.44	-
Material handling income	97.67	18.77
Other operatingincome	0.87	3.78
	267.75	116.89
	12,073.84	9,953.44

Reconciliation of revenue from sale of products with the contracted price

	Year ended March 31, 2023	Year ended March 31, 2022
Contracted price	11,996.22	9,920.88
Less: Discounts, allowances and claims	(190.13)	(84.33)
Sale ofproducts	11,806.09	9,836.55

23 OTHER INCOME

	Year ended March 31, 2023	Year ended March 31, 2022
Interest income
- from customers	0.04	0.01
- on loans, deposits and investments	38.13	28.85
- on others *	21.73	3.33
Net gain on sale/ discarding of property, plant and equipment	6.19	3.09
Net gain on fnancial assets measured at fair value through proft	9.10	7.06
and loss
Net foreign currency exchange fuctuation gains	-	71.40
Other non-operatingincome	30.87	21.57
	106.06	135.31

Refer note no 29 (ii)

246

Annual Report 2022-23 247

Annual Report 2022-23

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

24.1 COST OF MATERIALS CONSUMED

	Year ended March 31, 2023	Year ended March 31, 2022
Opening stock of raw materials	855.01	597.10
Add: Purchases of raw materials	5,542.59	5,006.17
Less: Closingstock of raw materials	893.08	855.01
Cost of materials consumed *	5,504.52	4,748.26

including packing material

24.2 PURCHASES OF STOCK IN TRADE

Year ended March 31, 2023 Year ended March 31, 2022
Purchase of stock in trade 109.72 137.27
109.72 137.27

24.3 CHANGES IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK IN TRADE

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Year ended Year ended
March 31, 2023 March 31, 2022
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Inventories at the end of the year :
Stock-in-Process	198.74	189.36
Finished goods	391.52	432.51
Traded goods	15.75	6.05
	606.01	627.92
Inventories at the beginning of the year :
Stock-in-Process	189.36	148.97
Finished goods	432.51	284.77
Traded goods	6.05	0.93
	627.92	434.67
Net (increase) / decrease	21.91	(193.25)

25 EMPLOYEE BENEFITS EXPENSE

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Year ended Year ended
March 31, 2023 March 31, 2022
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Salaries and wages, including bonus	563.38	521.20
Contribution to provident and other funds	39.15	35.98
Workmen and staf welfare expenses	72.90	72.69
Employee share based payment expense (Refer note 34)	8.76	28.61
	684.19	658.48

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

26 FINANCE COST

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

Year ended Year ended
March 31, 2023 March 31, 2022
----- End of picture text -----

Interest cost ^
- Non-convertible debentures	7.33	13.23
- Term loans and others	122.78	48.07
- Lease liabilities	8.92	8.69
Other borrowing costs	11.94	10.05
Exchange diferences regarded as an adjustment to	24.85	14.41
borrowingcosts
	175.82	94.45

^ pertains to liabilities measured at amortised cost. The amount disclosed is net of interest capitalised during the year. Refer note 2(i)

27 DEPRECIATION AND AMORTISATION EXPENSE

	Year ended March 31, 2023	Year ended March 31, 2022
Depreciation of property, plant and equipment	433.78	387.84
Depreciation of right-of-use assets	27.30	24.43
Amortisation of intangible assets	7.36	6.96
	468.44	419.23

28 OTHER EXPENSE

	Year ended March 31, 2023	Year ended March 31, 2022
Stores and spares consumed	65.07	63.01
Power and fuel	1,230.86	984.23
Labour production	49.31	46.08
Rent*	34.92	27.54
Repairs and maintenance
- Buildings	8.25	7.68
- Plant and machinery	205.39	185.34
- Others	43.97	34.33
Insurance	52.65	38.37
Rates and taxes	6.40	11.92
Freight charges	442.33	420.82
Expenditure on corporate social responsibility**	28.63	19.06
Legal and professional charges	37.99	35.35
Travelling and conveyance	16.59	7.68
Directors' sitting fees	0.27	0.29
Selling commission	9.77	13.11
Credit impaired assets provided/ written of *** Property, plant and equipment provided/ written of ^	0.52 3.54	0.76 11.48

248 Annual Report 2022-23

Annual Report 2022-23 249

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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Year ended Year ended
March 31, 2023 March 31, 2022
----- End of picture text -----

Auditor remuneration
- Audit fees	0.82	0.65
- For limited review of unaudited fnancial results	0.54	0.54
- For Corporate governance and other certifcates	0.07	0.07
- For tax audit	0.10	0.08
- Reimbursement of out of pocket expenses	0.12	0.10
Efuent disposal expenses	180.67	120.54
Net foreign currency exchange fuctuation loss	86.71	-
Miscellaneous expenses	53.95	40.24
	2,559.44	2,069.27

Refer to note 37
** Refer to note 41(f)
*** Including amount of Nil written off during the year (Previous year: 2.43 crores utilised against provision)
^ Including ` 5.75 crores recognised during the previous year on fair valuation of assets classified as held for sale. Also refer to note 40

29 INCOME TAX RECOGNISED IN PROFIT AND LOSS

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Year ended Year ended
March 31, 2023 March 31, 2022
----- End of picture text -----

Current tax
In relation to current year	614.53	616.41
Adjustment in relation to earlieryears	(32.54)	-
	581.99	616.41
Deferred tax
- MAT credit entitlement (Refer notes (iii) and (iv) below)
In relation to current year	(74.02)	-
Adjustment in relation to earlieryears	(20.11)	(25.27)
	(94.13)	(25.27)
- Others
In relation to current year	141.51	48.93
Adjustment in relation to earlieryears	3.13	7.96
	144.64	56.89
Total tax expense	632.50	648.03

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

The income tax expenses for the year can be reconciled to the accounting profits as follows:

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

Year ended Year ended
March 31, 2023 March 31, 2022
Profit before tax 2,655.86 2,155.04
----- End of picture text -----

Proft before tax	2,655.86	2,155.04
Income Tax Expenses @ 34.944% (Previous year: 34.944%)	928.06	753.06
Efect of deductions (research and development, share issue	(126.53)	(79.28)
expenses and deductions under chapter VI A of Income Tax Act)
Efect of expenses that are not deductible in determining taxable proft	10.97	13.15
Recognition of MAT credit previously written of (refer note (iii)	(74.02)	-
below)
Efect of lower tax rate on certain temporary diferences pursuant	(55.83)	(21.59)
to Section 115BAA of Income Tax Act
Others	(0.63)	-
Income tax expenses recognised in statement of proft	682.02	665.34
and loss in relation to current year
Income tax credit recognised in statement of proft and loss in	(49.52)	(17.31)
relation to earlier years (Refer notes below)
Total Income tax expenses recognised in proft and loss	632.50	648.03

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) During the year, the Company has received a favourable income tax assessment order pertaining to a prior year. Based on the Order, the Company has recognised interest income of 20.15 crores as other income and has written back 32.17 crores as ‘Adjustment in relation to earlier years’ in the statement of profit and loss. Tax adjustments, if any, in relation to the pending assessments for certain other years, and involving a similar matter, will be considered in the year in which a requisite level of certainty is achieved.
(iii) As per the relevant accounting standards, the Company continues to reassess its MAT utilization and its recognition. Basis current profitability and reassessment of certain tax positions, the Company has recognized an additional MAT credit of 94.13 crores (including 74.02 crores which was previously written off during the year 2020-21), and the same has also been utilised in current financial year.
(iv) Previous year figures of Income Tax in relation to earlier years includes tax credit of ` 15.42 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.

250 Annual Report 2022-23

Annual Report 2022-23 251

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

30 INCOME TAX RECOGNISED IN OTHER COMPREHENSIVE INCOME

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Year ended Year ended
March 31, 2023 March 31, 2022
Arising on income and expense recognised in other
----- End of picture text -----

Arising on income and expense recognised in other
comprehensive income
Net (gain)/ loss on designated portion of hedging instruments in	67.58	(13.03)
cash fow hedges
Cost of Hedging Reserve Remeasurement of defned beneft obligation	(0.79) 4.24	(0.45) 2.55
	71.03	(10.93)
Bifurcation of the income tax recognised in other
comprehensive income into: Items that will be reclassifed to proft or loss Items that will not be reclassifed to proft or loss	66.79 4.24	(13.48) 2.55
	71.03	(10.93)

31 CONTINGENT LIABILITIES AND COMMITMENTS

		As at March 31, 2023	As at March 31, 2022
a.	Claims against the Company not acknowledged as debts
	Goods and services tax, excise duty, custom duty and service tax*	7.38	8.39
	Sales tax and entry tax **	15.60	19.17
	Income tax ***	304.78	22.26
	Others ****	11.01	10.40

Amount deposited against contingent liability 1.20 crores (Previous year: 1.23 crores)
** Amount deposited against contingent liability 6.74 crores (Previous year: 6.74 crores)
*** Amount deposited against contingent liability 59.68 crores (Previous year: 2.98 crores). Contingent liability for the current year includes:
(i) Assessment / rectification orders received for assessment years 2017-18 and 2018-19 in which adjustments amounting to 277.31 crores and 167.43 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 11.03 crores was raised. These orders have a tax implication of 95.97 crores and 57.94 crores respectively (primarily due to reduction in MAT credit entitlement eligible for accumulation / subsequent utilization). The Company has filed appeal before Income Tax Appellate Tribunal against the said orders. Pursuant to a direction of the Hon’ble Delhi High Court, the Department of Scientific and Industries Research (DSIR) has approved the said R&D expenditure for which rectification is pending before Assessing Officer. 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.
(ii) Intimation order u/s 143(1) received for assessment year 2021-22 in which adjustments of 307.03 crores have been made with a corresponding demand of 130.74 crores. Also a refund of ` 56.91 crores for different assessment years has been adjusted against the said demand. In view of the Company, these adjustments are technical errors for which the Company has filed rectification application before Assessing Officer and an appeal before CIT(Appeals). 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.
**** Amount deposited against contingent liability 9.05 crore (Previous year: 0.42 crore). Contingent liability includes demand by Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Ltd. (MPPKVV Ltd) of 8.73 Crores (Previous year: 8.12 crores).

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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 18.59 crores (Previous year: 18.86 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.
c. Guarantees given to banks and others for repayment of financial facilities availed by wholly owned subsidiaries are as below:

Name of the subsidiary Currency	Guarantee amount as at Loan / payable outstanding against theguarantee as at
	March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022
	In Millions In`<br>Crores^<br>In<br>Millions<br>In` Crores^^ In Millions In`<br>Crores^<br>In<br>Millions<br>In` Crores^^
SRF Flexipak South Africa (Pty Limited USD - - 8.00 60.58 - - - - SRF Global BV USD 33.00 271.29 - - 10.87 89.36 - - USD 44.00 361.72 44.00 333.21 11.07 91.01 11.13 84.29 SRF Industries (Thailand) Limited EUR 18.00 160.89 18.00 151.33 1.04 9.37 18.00 151.33 EUR 12.76 114.06 12.76 107.27 9.87 88.21 5.84 49.10 USD 17.20 141.40 17.20 130.26 12.79 105.15 15.12 114.50 SRF Europe Kft (Hungry) EUR 22.00 196.65 22.00 184.95 - - - - EUR 77.00 688.27 77.00 647.34 63.94 571.52 64.13 539.14

^ Converted using closing exchange rate - USD 82.21 and Euro 89.39

^^ Converted using closing exchange rate - USD 75.73 and Euro 84.07

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

		As at March 31, 2023	As at March 31, 2022
(i)	Estimated amount of contracts remaining to be executed on capital	532.35	913.41
	account and not provided for (net of advances)

(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 and EPCG scheme on import of capital items, remaining outstanding is 1,287.79 crores (Previous year: 721.78 crores).

252 Annual Report 2022-23

Annual Report 2022-23 253

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(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 Puneet Yadu Dalmia Raj Kumar Jain *

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 SRF Europe Kft SRF Employees Welfare Trust (Controlled trust) SRF Altech Limited

Enterprises over which KMP have significant influence[#] Havells India Limited **

Fellow subsidiaries[#]

KAMA Realty (Delhi) Limited Shri Educare Limited SRF Transnational Holding Limited

Enterprises over which KMP have control or joint control[#]

BLP Industry AI Private Limited Parry Enterprises India Limited * SRF Foundation SRF Welfare Trust

Post Employment Benefit Plans Trust[#] SRF Limited Officers Provident Fund Trust SRF Employees Gratuity Trust SRF Officers Gratuity Trust

Relatives of KMP[#]

Sushil Ramola Murugappan Vellayan Subbiah Deeksha Amit Kalyani ^^ Salil Gupta ^^ Arun Bharat Ram^

KMP of Holding Company[#] Ekta Maheshwari Jagdeep Singh Rikhy *** Amitav Virmani ^^

Enterprises over which relative of KMP has control or

joint control[#]

Murugappa & Sons

Relatives of KMP of Holding Company[#]

Nirmala Kothari Meher Kaur Rikhy ^^ Palak Maheshwari ^^

Only with whom the Company had transactions during the year
Upto August 31, 2021
** Upto March 31, 2022
*** From December 03, 2021
^^ From August 18, 2022
^ From April 01, 2022
**** From May 09, 2022
* From June 15, 2022 **** From April 06, 2022

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

32.2 Transactions with related parties

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Year ended Year ended
March 31, 2023 March 31, 2022
----- End of picture text -----

Sale of goods to
Subsidiaries	107.41	75.33
Enterprises over which KMP have control or joint control	-	0.04
Enterprises over which KMP have signifcant infuence	15.26	-
	122.67	75.37
Purchase of goods from
Subsidiaries	17.81	44.18
Enterprises over which KMP have signifcant infuence	6.00	-
	23.81	44.18
Sale of property, plant & equipment and intangible assets to
Subsidiaries	1.70	-
Fellow Subsidiaries	-	0.19
	1.70	0.19
Services rendered to
Subsidiaries	15.34	13.97
	15.34	13.97
Receiving of Services from
Relative of KMP	0.60	-
Enterprises over which KMP have control orjoint control	0.64	0.19
	1.24	0.19
Rent paid to
Fellow Subsidiaries	6.56	6.60
Subsidiaries	0.06	0.06
Relative of KMP	0.21	-
Key management personnel	0.05	0.26
Enterprises over which KMP have control orjoint control	0.27	0.27
	7.15	7.19
Reimbursement of expenses from
Holding Company	0.02	0.01
Subsidiaries	1.35	1.25
Fellow Subsidiaries	0.05	0.04
Enterprises over which KMP have control orjoint control	0.01	-
	1.43	1.30
Advance Given to
Enterprises over which KMP have control orjoint control	0.24	-
	0.24	-
Loan given to
Subsidiaries	278.16	230.20
	278.16	230.20

254 Annual Report 2022-23

Annual Report 2022-23 255

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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

Year ended Year ended
March 31, 2023 March 31, 2022
----- End of picture text -----

Loan received back
Subsidiaries	404.89	277.41
	404.89	277.41
Interest received from
Subsidiaries	18.80	8.37
	18.80	8.37
Deposits received back from
Key management personnel	-	0.01
Fellow Subsidiaries	0.03	-
	0.03	0.01
Contribution for expenditure on corporate social
responsibility
Enterprises over which KMP have control orjoint control	28.23	21.38
	28.23	21.38
Investments made in
Subsidiaries	-	5.06
	-	5.06
Contribution to post employment beneft plans
Post Employment Beneft Plans Trust	43.69	30.20
	43.69	30.20
Employee beneft obligations/assets transferred to
Subsidiaries	0.39	-
Fellow Subsidiaries	-	0.20
	0.39	0.20
Equity dividend paid
Holding Company	107.96	107.43
Key management personnel	0.05	0.15
Relative of KMP	0.24	0.11
KMP of Holding Company	*	*
Relative of KMP of Holding Company	^	^
Enterprises over which KMP have control orjoint control	#	#
	108.25	107.69

Amount in absolute 9,882 (Previous year : 1,095)

^ Amount in absolute 814 (Previous year : 358)

Amount in absolute `37,224 (Previous year :` 36,966)

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

	Year ended March 31, 2023	Year ended March 31, 2022
Bonus shares issued
Holding Company (No. of shares : Nil ; previous year : 120,196,000)	-	-
Key management personnel (No. of shares : Nil ; previous year :	-	-
178,968)
Relatives of KMP (No. of shares : Nil ; previous year : 110,388)	-	-
KMP of Holding Company (No. of shares : Nil ; previous year : 76)	-	-
Relatives of KMP of Holding Company (No. of shares : Nil ;	-	-
previous year : 40)
Enterprises over which relative of KMP has control or joint control	-	-
(No. of shares : Nil; previousyear : 4,136)
	-	-
Guarantees issued / renewed
Subsidiaries*	271.29	190.84
	271.29	190.84
Guarantees run-down / released
Subsidiaries*	65.77	533.31
	65.77	533.31
* Converted using closing exchange rate - USD 82.21 and Euro 89.39 (Previous year USD - 75.73, Eur 84.07)
Outstanding Balances:
	As at March 31, 2023	As at March 31, 2022
Receivables
Subsidiaries	33.57	8.82
Post Employment Beneft Plans Trust Enterprises over which KMP have signifcant infuence	1.31 2.22	11.48 -
	37.10	20.30
Payables
Subsidiaries	1.16	5.15
Enterprises over which KMP have signifcant infuence Post Employment Beneft Plans Trust	0.44 9.86	- 13.30
	11.46	18.45
Interest receivable
Subsidiaries	7.66	2.05
	7.66	2.05
Commission payable
Keymanagementpersonnel	17.16	18.90
	17.16	18.90
Security deposits outstanding
Subsidiaries	0.02	0.02
Fellow Subsidiaries	3.24	3.27

32.3 Outstanding Balances:

256 Annual Report 2022-23

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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

As at As at
March 31, 2023 March 31, 2022
----- End of picture text -----

Relative of KMP	0.11	-
Key management personnel	0.01	0.12
Enterprises over which KMP have control orjoint control	0.14	0.14
	3.52	3.55
Equity Investment outstanding
Subsidiaries	88.66	88.66
	88.66	88.66
Loans outstanding
Subsidiary	480.36	565.72
	480.36	565.72
Guarantees outstanding
Subsidiaries*	1,934.28	1,614.94
	1,934.28	1,614.94

Converted using closing exchange rate - USD 82.21 and Euro 89.39 (Previous year USD - 75.73, Eur 84.07)

32.4 Key management personnel compensation

	Year ended March 31, 2023	Year ended March 31, 2022
Short-term benefts* Post-employment benefts Other long-term benefts	36.03 8.60 3.40	34.88 2.15 1.19
	48.03	38.22

Includes sitting fees and commission paid/ payable to non executive directors

The above transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions

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, 2023 March 31, 2022
----- End of picture text -----

Superannuation fund (Refer to note (i) below)	0.45	0.59
Provident fund administered through Regional Provident Fund	16.72	15.11
Commissioner (Refer to note (ii) below)
Employees’ State Insurance Corporation	0.30	0.40
National Pension Scheme	2.36	1.71
	19.83	17.81

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”.

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(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 Company administers the benefits through a recognised 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 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.

258 Annual Report 2022-23

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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.

(ii) The principal assumption used for the purpose of the actuarial valuation were as follows:

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As at March 31, 2023 As at March 31, 2022
Gratuity Provident Fund Gratuity Provident Fund
----- End of picture text -----

Discount Rate	7.35%	7.35%	7.16%	7.16%
Expected statutory	-	8.15%	-	8.10%
interest rate
Salary increase	8.00%	-	8.00%	-
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 44 years	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:

Current Service cost Interest expenses (net of expected return on plan assets)	Year ended March 31, 2023 Year ended March 31, 2022
	Gratuity Provident Fund Gratuity Provident Fund
	10.14 7.88 9.09 7.73 0.83 - 0.30 -
	10.97 7.88 9.39 7.73

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”.

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(iv) Amounts recognised in Other Comprehensive Income:

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Year ended Year ended
March 31, 2023 March 31, 2022
Gratuity Provident Fund Gratuity Provident Fund
----- End of picture text -----

Actuarial (gain)/ losses on plan	2.33	-	(0.31)	-
assets
Actuarial (gain)/ losses arising	(1.58)	-	3.71	-
from changes in fnancial
assumptions
Actuarial (gain)/ losses arising	11.39	-	3.90	-
from changes in experience
adjustments
	12.14	-	7.30	-

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

As at March 31, 2023 As at March 31, 2022
Gratuity Provident Fund Gratuity Provident Fund
----- End of picture text -----

Present value of funded	127.68	178.17	107.45	155.50
defned beneft obligation
Fair value ofplan assets	119.30	179.86	95.88	157.64
Surplus/ (Defcit) Efect of asset ceiling,if any	(8.38) -	1.69 (1.69)	(11.57) -	2.14 (2.14)
Net assets/ (liability)	(8.38)	-	(11.57)	-

(vi) Movements in the present value of defined benefit obligation are as follows:

	Year ended March 31, 2023 Year ended March 31, 2022
	Gratuity Provident Fund Gratuity Provident Fund
Opening defned beneft obligation Current service cost Interest cost Actuarial (gain)/ losses arising from changes in fnancial assumptions Actuarial (gain)/ losses arising from changes in experience adjustments Benefts paid Contribution by plan participants/ employees Settlement/transfer in	107.45 155.50 98.72 158.91 10.14 7.88 9.09 7.73 7.69 12.99 6.60 12.42 (1.58) - 3.71 - 11.39 - 3.90 - (7.29) (15.42) (14.57) (39.82) - 10.16 - 12.72 (0.12) 7.06 - 3.54
Closing defned beneft obligation	127.68 178.17 107.45 155.50

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(vii) Movements in the fair value of plan assets are as follows:

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

Year ended Year ended
March 31, 2023 March 31, 2022
Gratuity Provident Fund Gratuity Provident Fund
Opening fair value of plan assets 95.88 157.64 94.20 157.71
----- End of picture text -----

Opening fair value of plan assets	95.88	157.64	94.20	157.71
Return on plan assets (excluding	4.53	12.54	6.62	15.76
amounts included in net interest
expenses)
Contributions from employer	26.18	7.88	9.63	7.73
Contributions from plan	-	10.16	-	12.72
participants
Benefts paid	(7.29)	(15.42)	(14.57)	(39.82)
Settlement/ transfer in	-	7.06	-	3.54
Closing fair value of plan	119.30	179.86	95.88	157.64
assets

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(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, 2023	Year ended March 31, 2022
Compensated absences 13.66	12.26
13.66	12.26

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

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 9.07 years (Previous year: 9.12 years). The Company expects to make a contribution of 11.64 crores (Previous year: 10.58 crores) to the defined benefit plans during the next financial year.

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.

Provident fund:

The plan assets comprise of the following securities:

	As at March 31, 2023	As at March 31, 2022
Government Bonds	56.15%	55.33%
Public Sector Bonds	35.19%	35.09%
Otherequity andMutual Funds	8.66%	9.58%

(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.

Sensitivity analysis of Gratuity Discount rate Expected salary growth Sensitivity analysis of Provident Fund Discount rate	Year ended March 31, 2023 Year ended March 31, 2022
	0.50% increase 0.50% decrease 0.50% increase 0.50% decrease
	(4.00) 4.25 (3.54) 3.77 4.20 (4.00) 3.72 (3.53) (0.01) 0.01 (0.01) 0.01

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, 2023 March 31, 2022
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Number of equity shares:
(i) At the beginning of the year	195,000	60,000
(ii) Impact of bonus issue of shares (Refer to note 13.1)	-	240,000
(iii) Granted during the year *	3,800	195,000
(iv)Released duringtheyear ^	-	(300,000)
(v)At the end of theyear	198,800	195,000
Market price on the grant date (`per equity share)	2,320.95	2,126.05
Exercise price (`per equity share)	10.00	10.00
Fair value of share based payment (`per equity share)	2,310.95	2,116.05
Share basedpayment expense recognised duringtheyear ^ #	8.76	28.61

Shares granted during the current year have a lock in period upto August 21, 2023 and those granted during the previous year had lock in period upto November 30, 2022. These shares are pledged for a period upto October 31, 2026.

^ During the previous 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 had been recognised in the statement of profit and loss in previous year.

Includes amount of `0.35 crore (Previous year:` 17.50 crores) towards withholding tax on equity shares granted under the above scheme.

262

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Annual Report 2022-23

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(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 ancillary 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.

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.

A. Information about operating business segments

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Year ended Year ended
March 31, 2023 March 31, 2022
----- End of picture text -----

Seg	ment revenue
a)	Technical textiles business (TTB)
	- External sales	1,891.25	2,073.33
	- Inter-segment sales	2.63	11.91
Total		1,893.88	2,085.24
b)	Chemicals business (CB)
	- External sales	7,326.01	5,212.26
	- Inter-segment sales	-	-
Total		7,326.01	5,212.26

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

	Year ended March 31, 2023	Year ended March 31, 2022
c) Packaging flms business (PFB)
- External sales	2,463.97	2,327.51
- Inter-segment sales	7.24	-
Total	2,471.21	2,327.51
d) Others
- External sales	392.61	340.34
- Inter-segment sales	-	-
Total	392.61	340.34
Total segment revenue	12,083.71	9,965.35
Less: Inter segment revenue	9.87	11.91
Revenue from operations	12,073.84	9,953.44
Add: Unallocable income	106.06	135.31
Total revenue	12,179.90	10,088.75
Segment profts
(Proft before interest and tax from each segment)
a) Technical textiles business (TTB)	261.20	470.84
b) Chemicals business (CB)	2,340.30	1,397.35
c) Packaging flms business (PFB)	332.35	482.72
d) Others	34.82	20.35
Total segment results	2,968.67	2,371.26
Less: i) Interest and fnance charges	175.82	94.45
Less: ii)Other unallocable expenses net of income	136.99	121.77
Proft before tax	2,655.86	2,155.04
Capital expenditure
a) Technical textiles business (TTB)	134.03	63.43
b) Chemicals business (CB)	2,141.82	1,292.68
c) Packaging flms business (PFB)	224.21	416.20
d) Others	2.46	1.66
e) Unallocated	20.18	8.38
Total	2,522.70	1,782.35
Depreciation and amortisation
a) Technical textiles business (TTB)	41.62	40.56
b) Chemicals business (CB)	334.80	303.59
c) Packaging flms business (PFB)	70.36	54.72
d) Others	6.96	7.53
e) Unallocated	14.70	12.83
Total	468.44	419.23

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

Segment assets and liabilities

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

As at As at
March 31, 2023 March 31, 2022
----- End of picture text -----

Segment assets
a) Technical textiles business (TTB)	1,766.50	1,830.61
b) Chemicals business (CB)	9,623.78	7,154.46
c) Packaging flms business (PFB)	2,181.83	2,198.19
d) Others	164.98	174.94
Total	13,737.09	11,358.20
Unallocable assets	1,814.32	1,577.02
Assets classifed as held for sale	-	3.00
Total assets	15,551.41	12,938.22
Segment liabilities
a) Technical textiles business (TTB)	391.76	416.95
b) Chemicals business (CB)	1,320.97	938.85
c) Packaging flms business (PFB)	563.17	390.99
d) Others	52.53	37.02
Total	2,328.43	1,783.81
Unallocable liabilities	3,969.43	3,529.61
Total liabilities	6,297.86	5,313.42

B. Information about geographical business segments

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

Year ended Year ended
March 31, 2023 March 31, 2022
----- End of picture text -----

Revenue from operations
- India	5,912.85	5,116.93
- Germany	406.16	382.97
- USA	2,050.48	1,399.61
- Belgium	871.88	528.32
- Switzerland	873.20	827.37
- Others	1,959.27	1,698.24
	12,073.84	9,953.44

	As at March 31, 2023	As at March 31, 2022
Non current segment assets
- Within India	10,012.87	7,938.50
- Outside India	-	-
	10,012.87	7,938.50

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

During the year ended March 31, 2023 no customer contributed more than 10% to the Company’s revenue (Previous year: Nil).

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

Revenue from major products Year ended Year ended
March 31, 2023 March 31, 2022
----- End of picture text -----

a)	Technical textiles business (TTB)
	Nylon tyre cord fabric/ Polyester tyre cord fabric/ Belting	1,630.11	1,880.90
	fabric
	Synthetic flament yarn including industrial yarn/ Twine	233.33	165.78
	Others	0.84	5.16
b)	Chemicals business (CB)
	Speciality chemicals	4,164.95	3,100.32
	Fluorochemicals, Refrigerant gases and Allied products	2,557.00	1,695.53
	Industrial chemicals	429.50	350.65
	Others	0.25	0.01
c)	Packaging flms business (PFB)
	Packaging flms	2,402.66	2,301.59
d)	Others
	Laminated fabric, Coated fabric and other ancillary activities	387.45	336.61
		11,806.09	9,836.55

36 EARNINGS PER SHARE (EPS)

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Year ended Year ended
March 31, 2023 March 31, 2022
Profit attributable to the equity holders of the Company used in 2,023.36 1,507.01
----- End of picture text -----

Proft attributable to the equity holders of the Company used in	2,023.36	1,507.01
calculating basic earning per share and diluted earning per share
Weighted average number of equity shares for the purpose of	296,423,669	296,306,696
calculating basic and diluted earnings per share (numbers)
Basic and diluted earnings per share of face value`10 each	68.26	50.86

Note:

During the previous year, Company had 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 had been calculated based on the weighted average number of shares outstanding in the previous year, as adjusted by issuance of bonus shares.

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.

266 Annual Report 2022-23

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

37 RIGHT-OF-USE ASSETS

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.

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

Particulars Land * Buildings Plant & Total
equipment
----- End of picture text -----

Cost
Balance at March 31, 2021	151.29	46.25	49.89	247.43
Additions / adjustments	4.88	(0.45)	58.59	63.02
Derecognition	-	-	(8.20)	(8.20)
Balance at March 31, 2022	156.17	45.80	100.28	302.25
Additions / adjustments	(0.10)	(0.37)	31.29	30.82
Derecognition	-	-	(5.70)	(5.70)
Balance at March 31, 2023	156.07	45.43	125.87	327.37
Accumulated amortisation
Balance at March 31, 2021	2.55	12.97	15.15	30.67
Depreciation expenses	1.74	6.59	16.10	24.43
Derecognition	-	-	(8.20)	(8.20)
Balance at March 31, 2022	4.29	19.56	23.05	46.90
Depreciation expenses	1.78	6.83	18.69	27.30
Derecognition	-	-	(5.70)	(5.70)
Balance at March 31, 2023	6.07	26.39	36.04	68.50
Carrying Amount
Balance at March 31, 2021	148.74	33.28	34.74	216.76
Additions / adjustments	4.88	(0.45)	58.59	63.02
Derecognition	-	-	-	-
Depreciation expenses	(1.74)	(6.59)	(16.10)	(24.43)
Balance at March 31, 2022	151.88	26.24	77.23	255.35
Additions / adjustments	(0.10)	(0.37)	31.29	30.82
Derecognition	-	-	-	-
Depreciation expenses	(1.78)	(6.83)	(18.69)	(27.30)
Balance at March 31, 2023	150.00	19.04	89.83	258.87

Refer note 41(g)(ii)

Lease liabilities included in the Balance Sheet	As at March 31, 2023	As at March 31, 2022
Current	25.90	20.66
Non-current	96.53	95.18

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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Amounts recognised in Statement of Profit and Loss Year ended Year ended
March 31 2023 March 31 2022
Interest on lease liabilities 8.92 8.69
Depreciation expense 27.30 24.43
Expenses relating to short-term leases and leases of low-value 34.92 27.54
assets (Refer note 28)
Amounts recognised in Cash Flow Statement Year ended Year ended
March 31 2023 March 31 2022
Total cash outflow for leases 32.47 25.68
----- End of picture text -----

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 :

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

As at As at
March 31, 2023 March 31, 2022
----- End of picture text -----

Debt and lease liabilities	3,161.70	2,890.74
Less:
Cash and cash equivalents	527.25	319.64
Deposit accounts with maturity beyond three months upto	0.21	0.20
twelve months
Current investments	490.05	316.74
Net debt	2,144.19	2,254.16
Total equity	9,253.55	7,624.80
Net debt to equity ratio	0.23	0.30

The average incremental borrowing rate applied to lease liabilities during the year ranges from 7.75% to 8.75% (Previous year: ranges from 6.40% to 7.00%).

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

38.2 Financial instruments by category

Financial assets Level of hierarchy Notes	Carrying value Fair value
	As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022
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	1,436.38 1,350.99 1,436.38 1,350.99 527.25 319.64 527.25 319.64 8.48 8.87 8.48 8.87 534.70 588.47 534.70 588.47 305.07 238.71 305.07 238.71
	2,811.88 2,506.68 2,811.88 2,506.68
Measured at Fair value through proft and loss Investments in mutual funds and bonds / debentures 2 d Derivative instruments 2 d	490.05 316.74 490.05 316.74 - 3.64 - 3.64
	490.05 320.38 490.05 320.38
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 0.89 124.69 0.89 124.69
	5.05 128.85 5.05 128.85

Financial liabilities Level of hierarchy Notes	Carrying value Fair value
	As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022
Measured at amortised cost Borrowings a,c Trade payables a Other fnancial liabilities a,b	3,039.26 2,774.90 3,006.09 2,774.90 1,649.17 1,340.37 1,649.17 1,340.37 474.77 301.68 474.77 301.68
	5,163.20 4,416.95 5,130.03 4,416.95
Measured at Fair value through proft and loss Derivative instruments 2 d	6.98 - 6.98 -
	6.98 - 6.98 -
Measured at Fair value through Other comprehensive income Derivative instruments 2 d	60.72 - 60.72 -
	60.72 - 60.72 -

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

The following methods/ assumptions are 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 and financial liabilities 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.
(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, 2023 and March 31, 2022.

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 are 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 quoted forward exchange rates at the balance sheet date.

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(iii) Unquoted equity investments: Fair value is determined based on the recoverable value as per agreement with the investee.

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Reconciliation of Level 3 fair value measurements Unlisted equity
instruments
----- End of picture text -----

As at March 31, 2021	4.16
Purchase of investment	-
As at March 31, 2022	4.16
Purchase of investment	-
As at March 31, 2023	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 Chairman and 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 / Chairman and 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.

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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.

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 Net assets/ (liabilities)
	As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022
USD EUR JPY GBP	688.63 870.29 3,280.49 2,205.38(2,591.86) (1,335.09) 285.40 282.87 592.77 547.26 (307.37) (264.39) - - 10.70 6.33 (10.70) (6.33) 5.25 6.73 5.63 0.01 (0.38) 6.72

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. This analysis assumes that all other variables, in particular interest rates, remain constant. A positive number below indicates an increase in profit before tax or vice-versa.

	Year ended March 31, 2023 Year ended March 31, 2022
	`strengthens<br>by 1%<br>`weakens by 1% `strengthens<br>by 1%<br>`weakens by 1%
Impact on proft / (loss) * USD EUR JPY GBP	9.59 (9.59) 4.58 (4.58) (0.91) 0.91 (1.11) 1.11 0.11 (0.11) 0.06 (0.06) 0.00 (0.00) (0.07) 0.07

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.

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

	Year ended March 31, 2023 Year ended March 31, 2022
	`strengthens<br>by 1%<br>`weakens by 1% `strengthens<br>by 1%<br>`weakens by 1%
Impact on equity (Other Comprehensive Income) USD 16.32 (16.32) 8.62 (8.62) EUR 3.98 (3.98) 3.75 (3.75)

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 (`Crores)<br>More than 12<br>months<br>Nominal Amount<br>(`Crores)
	As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022
USD / INR Sell forward EUR / USD Sell forward EUR / INR Sell forward	278 362 633.00 735.502,643.592,821.042,596.613,095.66 3 - 4.50 - 39.70 - - - 1 1 20.00 20.00 202.77 - - 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.

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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

Year ended March 31, 2023 Year ended March 31, 2022
strengthens weakens by strengthens weakens by
by 1% 1% by 1% 1%
Impact on profit / (loss) for
----- End of picture text -----

the year
USD	2.63	(2.63)	1.83	(1.83)
EUR	0.40	(0.40)	-	-
Impact on equity (Other
Comprehensive Income)
USD	50.67	(50.67)	56.31	(56.31)
EUR	1.80	(1.80)	1.81	(1.81)

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 676.02 crores and floating interest loan is 1422.36 crores (Previous year: Fixed interest loan 938.35 crores and Floating interest loan 916.26 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:

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

Year ended March 31, 2023 Year ended March 31, 2022
loans interest Foreign loans interest Foreign
rate increases currency loans rate increases currency loans
by 0.50 % interest rate by 0.50 % interest rate
increases by increases by
0.15 % 0.15 %
Decrease in profit before tax by - (2.13) (1.29) (0.99)
----- End of picture text -----

In case of decrease in interest rate by above mentioned percentage, there would be a comparable positive impact on the profit before tax as mentioned above.

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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 had certain financial instruments which are impacted by the IBOR reform. During the previous year, the Company had renegotiated all working capital facilities agreements and 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. As at March 31, 2023, the Company has two long term loan arrangements which are USD LIBOR benchmark linked and maturing after June 2023. The management of the Company has planned to prepay one of these loans and for the other loan, move to Secured Overnight Financing Rate (SOFR) benchmark prior to June 2023. Any related IRS contract would accordingly be amended. All the EUR denominated long term loans of the Company which are linked to EURIBOR have relevant benchmark replacement/ fall back clauses and do not require any amendment.

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 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, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022
IRS Contracts (USD) *	2 4 7.18 20.28 59.00 90.76 - 62.79

Sensitivity on the above IRS contracts in respect of interest rate exposure is insignificant

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

C. Hedge accounting

Cash flow hedges

The amounts at the reporting date relating to the item designed as hedge items are as follows:

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

Hedging As at March 31, 2023 Year ended As at March 31, 2022 Year ended
instruments March 31, March 31,
2023 2022
Nominal Carrying Line item Change in Nominal Carrying Line item Change in
amount amount where the the value of amount amount where the the value of
Assets / hedging the hedging Assets / hedging the hedging
(liabilities) instrument is instrument (liabilities) instrument is instrument
included recognised included recognised
in OCI in OCI
----- End of picture text -----

Foreign exchange	5,186.03	(60.72) Other fnancial	(181.89) 5,932.96	(181.89) 5,932.96	121.17 Other fnancial assets (current	46.42
contracts		liabilities			and non -
		(current and			current)
		non - current)
Foreign	182.44	(182.44) Other	(20.27)	-	- -	-
currency		fnancial
denominated		liabilities
creditors		(current and
		non-current)
Foreign	1,848.11	(1,848.11) Borrowings	(57.50) 1,236.86		(1,236.86) Borrowings	8.20
currency		(current and			(current and
denominated		non - current)			non - current)
loans
Interest rate swap	59.00	0.89 Other fnancial	(2.63) 153.55		3.52 Other fnancial assets (current	2.51
contacts		assets			and non -
		(current and			current)
		non - current)
		- Other fnancial	-		- Other fnancial liabilities	0.54
		liabilities			(current and
		(current and			non - current)
		non - current)

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.

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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, 2023
Year ended
March 31,
2023
As at March 31, 2022
Year ended
March 31,
2022

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

296.65
(6.98)
Other
fnancial
assets
(current
and non -
current)
(10.63) 186.51
3.64
Other
fnancial
assets
(current
and non -
current)
(0.74)

Movement of cash flow hedging reserve and cost of hedging reserve

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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,
2023 2022 2023 2022
----- End of picture text -----

Opening Balance	34.49	7.53	1.65	0.62
Changes in the spot element of the forward	(24.15)	(3.12)	-	-
contracts which is designated as hedging
instruments for time period related hedge
Changes in the forward element of the forward	-	-	14.15	20.83
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	(171.89)	28.77	-	-
designated as hedging instruments recognised
in OCI
Changes in fair value of interest rate swaps	(2.63)	3.05	-	-
Amount reclassifed to Proft or Loss (Foreign	41.61	16.54	(10.34)	(19.35)
exchange (gain) / loss)
Amount arising from remeasurement of fnancial liability	(95.23)	(5.25)	-	-
Taxes related to above	67.58	(13.03)	(0.79)	(0.45)
Closing Balance	(150.22)	34.49	4.67	1.65

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

D Investment Risk

The primary goal of the Company’s investment is to maintain liquidity along with meeting Company’s strategic purposes. Depending upon the investment strategy at inception, management classifies certain investments as FVTPL. The following table details the Company’s sensitivity to a 1% increase and decrease in the price of instruments.

	Year ended March 31, 2023 Year ended March 31, 2022
	Market price increase by 1% Market price decrease by 1% Market price increase by 1% Market price decrease by 1%
Impact onproft /(loss)for theyear 4.90 (4.90) 3.17 (3.17)

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. The Company does not require collateral in respect of trade receivables, loans and contract assets.

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 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.

The derivatives are entered into with reputed and well established bank and financial institution counterparties.

The cash and cash equivalents and other bank balances are held with banks, financial institution and other counterparties, which are rated AA or above. The Company considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties.

The Company limits its exposure to credit risk by investing in liquid debt securities and only with counterparties that have a credit rating of at least AA or above. The Company permits exposure in corporate bonds only upto the specified amount as per its Board policy. Also, mutual fund investments are permitted only in those funds where the corpus size is more than ` 2,000 crores. The Company monitors its investment portfolio on continuous basis to assess whether there has been a significant increase in credit risk whether or not reflected in the published ratings.

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.

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(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, 2023	As at March 31, 2022
Loans - current	6	2.74	2.74
Trade receivables	10	2.64	2.28
		5.38	5.02

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, 2021	2.74	3.96
Provided during the year	0.17	0.59
Reversed / utilised during the year	(0.17)	(2.27)
As at March 31, 2022	2.74	2.28
Provided during the year	-	0.52
Reversed / utilised during the year	-	(0.16)
As at March 31, 2023	2.74	2.64

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 Chairman and 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 according to 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.

The Company has secured bank loans that contain loan covenants. A future breach of any covenants may require the Company to repay the loans earlier than their original payment date.These covenants are monitored by the treasury department and regularly reported to management to ensure compliance with the agreement.

The Company also participates in a supply chain financing arrangement (SCF) with the principal purpose of facilitating efficient payment processing of supplier invoices. The SCF allows the Company to centralise payments of trade payables to the bank rather than paying each supplier individually. While the SCF does not extend payment terms beyond the normal terms agreed with other suppliers that are not participating, the programme assists in making cash outflows more predictable. Also refer note 18.

Also refer note 10 for receivables purchase agreements entered into by the Company as a part of its liquidity risk management policy.

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

The table below analyze the Company’s financial liabilities into relevant maturity profiles based on their contractual maturities:

As at March 31, 2023	Less than 1 year	More than 1 year and upto 5years	More than 5 years	Total
Borrowings*	1,400.94	1,849.34	-	3,250.28
Lease Liabilities**	34.38	92.89	44.75	172.02
Trade payables	1,649.17	-	-	1,649.17
Derivative Liabilities	41.46	26.24	-	67.70
Other fnancial liabilities	341.53	159.47	-	501.00
	3,467.48	2,127.94	44.75	5,640.17

As at March 31, 2022	Less than 1 year	More than 1 year and upto 5years	More than 5 years	Total
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
Derivative Liabilities	-	-	-	-
Other fnancial liabilities	148.15	153.53	-	301.68
	3,130.41	1,449.74	59.52	4,639.67

Includes current maturity of non-current borrowings and future cash outflow towards estimated interest on noncurrent borrowings

** Includes future cash outflow towards estimated interest on lease liabilities.

39 Contract balances

The following table provides information about contract liabilities from contracts with customers

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Contract liability Year ended Year ended
March 31, 2023 March 31, 2022
----- End of picture text -----

Opening balance	23.85	13.53
Revenue recognised that was included in the contract liability	(23.85)	(13.53)
balance at the beginning of the period
Increase due to cash received, excluding the amount recognised	40.37	23.85
as revenue duringtheperiod
	40.37	23.85

40 Assets classified as held for sale

(a) Description:

During the previous year, the management had decided to dispose off inoperative assets related to Industrial Yarn Unit. Accordingly, these assets were 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 March 31, 2021, these assets were reported under “Technical textiles business segment” in accordance with the requirements of Ind AS 108 – “Operating Segments” in the financial statements.

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Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(b) Assets classified as held for sale:

	As at March 31, 2023	As at March 31, 2022
Property, plant and equipment	-	3.00
Loss recognised on:
	Year ended March 31, 2023	Year ended March 31, 2022
(i) Impairment of goodwill	-	0.62
(ii)Fair value of assets classifed as held for sale	-	5.75

(c) Loss recognised on:

41 ADDITIONAL DISCLOSURES

(a) RESEARCH AND DEVELOPMENT EXPENDITURE

The details of research and development expenditure of 129.31 crores (Previous year: 116.99 Crores) included in these financial statements are as under:

	Year ended March 31, 2023	Year ended March 31, 2022
Capital expenditure	7.22	8.49
Revenue expenditure	122.09	108.50
	129.31	116.99

The details of revenue expenditure incurred on research and development is as below:

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

Year ended Year ended
March 31, 2023 March 31, 2022
Cost of material consumed 3.31 1.68
----- End of picture text -----

Cost of material consumed	3.31	1.68
Salaries and wages, including bonus	51.23	49.11
Contribution to provident and other funds	3.21	2.92
Workmen and staf welfare expenses	8.92	3.37
Stores and spares consumed	3.66	4.94
Power and fuel	12.45	7.94
Rent	0.09	0.26
Repairs and maintenance
- Buildings	0.01	-
- Plant and machinery	12.68	10.63
- Others	0.96	0.85
Insurance	1.06	1.02
Rates and taxes	0.08	0.06
Travelling and conveyance	1.58	0.51
Legal and professional charges	3.47	4.12
Depreciation and amortisation expense	14.19	16.65
Interest cost	0.07	0.05
Miscellaneous expenses	5.12	4.39
	122.09	108.50

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(b) MANAGERIAL REMUNERATION

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

Year ended Year ended
March 31, 2023 March 31, 2022
----- End of picture text -----

(a)	Remuneration to Chairman & Managing
	Director/ Joint Managing Director/ Whole
	time Director
	Salary and contribution to provident and other funds	25.02	16.39
	Value of perquisites	2.18	2.58
	Commission	16.00	18.00
	SUB-TOTAL	43.20	36.97
(b)	Remuneration to Non Executive Directors
	Commission	1.16	0.90
	Directors’ sitting fees	0.27	0.29
	Other fees	-	0.06
	SUB-TOTAL	1.43	1.25
	TOTAL	44.63	38.22

ii) Computation of managerial remuneration in accordance with section 197 of the Companies Act, 2013

	Year ended March 31, 2023	Year ended March 31, 2022
Proft before taxation	2,655.86	2,155.04
Add:
Managerial remuneration including commission	44.63	38.22
Loss/ write of of fxed assets as per accounts	3.54	10.73
Provision for doubtful debts/ advances/ investments	0.52	(1.68)
Sub Total	48.69	47.27
Less:
Proft on sale of fxed assets as per accounts	6.19	3.09
Net Gain on fnancial assets measured at FVTPL	9.10	7.06
Excess Provision written back	27.44	2.59
Sub Total	42.73	12.74
Proft as per section 197 of the Companies Act, 2013	2,661.82	2,189.57
Maximum remuneration as commission and/ or salary including	266.18	218.96
perquisites @ 10% of net proft of`2,661.82 crores (Previous
year:`2,189.57 crores) which can be paid to Managing
Directors/ Whole time Directors under section 197 of the 2013
Act

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Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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

Year ended Year ended
March 31, 2023 March 31, 2022
----- End of picture text -----

Remuneration paid/ payable to Managing Directors /	Remuneration paid/ payable to Managing Directors /	43.20	36.97
Whole Time Directors
Maximum remuneration payable to Non-Executive Directors @		26.62	21.90
1% of net proft of`2,661.82 crores (Previous\|year:`2,189.57
crores) under section 197 of the 2013 Act
Remuneration paid/ payable to	Non-Executive	1.43	1.25
Directors

(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.

Exchange loss/ (gain) added/ (adjusted)	Year ended March 31, 2023	Year ended March 31, 2022
Property, plant and equipment
- Plant and equipment	10.53	5.90
	10.53	5.90

The cumulative exchange loss/ (gain) added/ (adjusted) and remaining unamortised as at March 31, 2023 is 120.43 Crores (Previous year: 122.66 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:

Nature of Guarantees	Purpose
Refer note 31 (c) above	To secure the fnancial facilities sanctioned to
	subsidiaries by banks and other companies.

(ii) Details of investments:

Nature of Investments	Purpose
Refer note 5.1 above	Investment in wholly owned subsidiaries.

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(iii) Details of unsecured loans given:

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

Particulars of loans Terms As at As at
March 31, March 31,
2023 2022
----- End of picture text -----

SRF Global BV (denominated in	Principal amount repayable in March
USD) - given for repayment of	2025 (Previous year: March 2023 to
existing borrowings and general corporate purpose	March 2025). Interest on a foating rate basis payable quarterly. The efective yield
	is in compliance with Section 186 of
	the Companies Act, 2013.
As at the beginning of the year		397.58	438.90
Given during the year		-	227.45
Received back during the year		(181.69)	(274.66)
Foreign currency exchange fuctuation		30.74	5.89
gain / (loss)
As at end of the year		246.63	397.58
Maximum balance outstanding		397.58	611.97
SRF Global BV (denominated in	Principal amount repayable in June
EUR) - given for repayment of existing borrowings	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		168.14	171.55
Given during the year		-	-
Foreign currency exchange fuctuation		10.63	(3.41)
gain / (loss)
As at end of the year		178.77	168.14
Maximum balance outstanding		178.77	171.55
SRF Altech Limited (denominated	Principal and interest is repayable
in INR) - given for general purpose	on demand. Interest rate is 6.00%
and capital expenditure	to 7.48%. (Previous year: Interest
	payable within 60 days from the end
	of calendar quarter at 5% per annum)
As at the beginning of the year		-	-
Given during the year		278.16	2.75
Received back during the year		(223.20)	(2.75)
As at end of the year		54.96	-
Maximum balance outstanding		147.16	2.75

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FINANCIAL STATEMENTS

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(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, 2023 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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Year ended Year ended
March 31, 2023 March 31, 2022
----- End of picture text -----

(i)	Amount required to be spent by the company during	28.56	18.61
	the year
(ii)	Amount of expenditure incurred	28.63	19.06*
(iii)	Shortfall at the end of the year	-	-
(iv)	Total of previous years shortfall	-	-
(v)	Reason of shortfall	-	-
(vi)	Nature of CSR activities	School education, promotion	of healthcare,
		olympic sports and art and cultural projects,
		vocational skills and livelihood projects,
		disaster management, environment project
		and other CSR projects
(vii)	Details of related party transactions	28.23	21.38^
(viii)	Provision made with respect to a liability incurred by	-	-
	entering into a contractual obligation

^ Includes unspent amount of ` 2.70 crores for the year ended March 31, 2021.

*This includes 18.68 crores pertaining to financial year 2021-22 and 0.37 crore pertaining to financial year 2020-21. In accordance with the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, 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 had been transferred in previous year to one of the specified funds prescribed under Schedule VII to the Companies Act, 2013 before September 30, 2021.

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(g) OTHER STATUTORY INFORMATION

(i) Analytical ratios:

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

Year ended Year ended % Reason for
March 31, March 31, change change, wherever
2023 2022 more than 25%
----- End of picture text -----

(i)	Current ratio (Total current assets /	1.44	1.35	6.62%	Not applicable
	Total current liabilities)
(ii)	Debt-equity ratio (Total debt including	0.34	0.38	(9.88)%	Not applicable
	lease liabilities / Total equity)
(iii)	Debt service coverage ratio [(Earnings	3.09	4.06	(23.89)%	Not applicable
	before depreciation, interest and tax
	- current tax) / (Gross interest and
	lease payments + scheduled principal
	repayment of long term debts)]
(iv)	Return on equity ratio (Proft after tax	23.98%	21.65%	10.73%	Not applicable
	/ Average equity)
(v)	Inventory turnover ratio (Sale of	6.56	6.48	1.28%	Not applicable
	products / Average inventory)
(vi)	Trade receivables turnover ratio	8.47	8.33	1.75%	Not applicable
	(Sale of products / Average trade
	receivables)
(vii)	Trade payables turnover ratio	3.71	3.95	(6.05)%	Not applicable
	(Purchases of raw materials / Average
	trade payables)
(viii)	Net capital turnover ratio (Sale of	7.77	8.82	(11.88)%	Not applicable
	products / Working capital)
(ix)	Net proft ratio (Proft after tax / Total	16.76%	15.14%	10.68%	Not applicable
	revenue from operations including
	other operating income)
(x)	Return on capital employed [Earnings	21.68%	20.41%	6.23%	Not applicable
	before interest and tax / (Total equity
	- other intangible assets - goodwill +
	total debt + deferred tax liability)]
(xi)	Return on investment * (Income	6.02%	6.09%	(1.25)%	Not applicable
	generated from investments /
	Weighted average investments)

Mutual funds, bonds and debentures are considered for the purpose of computing return on investment.

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Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(ii) Details of title deeds of immovable property not held in name of the Company:

Relevant line item in the Balance sheet	Description of item of property	Gross carrying value	Title deeds held in the name of	Whether title deed holder is a promoter, director or relative of promoter / director or employee of promoter / director	Property held since which date	Reason for not being held in the name of the Company
Right-of-use	Land at	`108.16	Gujarat	No	From	The execution of lease
assets	Bharuch,	Crores	Industrial		June 2009	deed of land in respect
	Dahej,	(carrying	Development		onwards	of 1,165,437 square
	Gujarat	amount)	Corporation		(by multiple	meters of leasehold land
			(GIDC)		allotment	already allotted (out
			at Dahej,		orders)	of a total of 1,181,776
			Gujarat			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, 2023	Balance outstanding as at March 31, 2022	Relationship with the struck of company, if any
Jyotsna Engineers & Consultants Private Limited	Receivables	^	^	Vendor
Krishna Freeze Private Limited	Payables	0.02	0.01	Customer
Perfect Refcon & Tools Private Limited	Payables	0.01	0.01	Customer
Shree Krishna Well Pack Private Limited	Payables	0.03	-	Vendor
Shakun and Company Services Private Limited	Receivables	*	-	Vendor

^ Amount in absolute 2,000 (Previous year: 2,000)

Amount in absolute ` 618 (Previous year: Nil)
(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.

Notes to the Standalone Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(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.
(xii) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

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

Place : Gurugram Rahul Jain Date : May 09, 2023 President & CFO

Rajat Lakhanpal Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 09, 2023

(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.

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FINANCIAL STATEMENTS

Independent Auditor’s Report

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 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.

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 March 31, 2023 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 March 31, 2023, of its consolidated profit and other comprehensive loss, consolidated changes in equity and consolidated cash flows for the year then ended.

Key Audit Matter

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.

Accounting for derivatives

See Note 40 to consolidated ancial statements fin 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 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.

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.

–

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.

For selected samples via statistical sampling, obtained external confirmations from counterparties of the year end positions as well as agreed to original agreements analysing critical terms, such as nominal amount, maturity, and underlying, of the hedging instrument and the hedged item to assess they are closely aligned.

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.

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.

–

Given the significant level of judgement and estimation involved and the quantitative significance, we have determined this to be a key audit matter.

Assessed the adequacy of disclosures in the financial statements in respect of both nonderivative and derivative ancial instruments. fin

Other Information

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 other information. The other information comprises the information included in the Holding Company’s annual report, but does not include the financial statements and auditor’s report thereon.

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/ loss, 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 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

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 audit reports 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.

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FINANCIAL STATEMENTS

and prudent; and the 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 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 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 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 Other Matters regarding the financial statements of such a. We did not audit the financial statements of six
entities or business activities within the Group to subsidiaries, whose financial statements reflect express an opinion on the consolidated financial total assets (before consolidation adjustments) statements. We are responsible for the direction, of 4,010.01 crores as at March 31, 2023, total supervision and performance of the audit of the revenues (before consolidation adjustments) financial statements of such entities included in of 2,882.97 crores and net cash outflows the consolidated financial statements of which (before consolidation adjustments) amounting we are the independent auditors. For the other to ` 87.33 crores for the year ended on that entities included in the consolidated financial date, as considered in the consolidated financial statements, which have been audited by other statements. These financial statements have been audited by other auditors whose reports
auditors, such other auditors remain responsible have been furnished to us by the Management
for the direction, supervision and performance of the audits carried out by them. We remain and our opinion on the consolidated financial statements, in so far as it relates to the amounts
solely responsible for our audit opinion. Our and disclosures included in respect of these
responsibilities in this regard are further subsidiaries, and our report in terms of sub-
described in paragraph (a) of the section titled section (3) of Section 143 of the Act, in so far as
“Other Matters” in this audit report. it relates to the aforesaid subsidiaries is based
We communicate with those charged with governance solely on the reports of the other auditors.

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.

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 statements 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.

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.

b. 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.

292 Annual Report 2022-23

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FINANCIAL STATEMENTS

c. The financial statements/financial information of one subsidiary, whose financial statements reflect total assets (before consolidation adjustments) of 67.11 crores as at March 31, 2023, total revenues (before consolidation adjustments) of 140.17 crores and net cash outflows (before consolidation adjustments) amounting to ` 12.94 crores for the year ended on that date, as considered in the consolidated financial statements, have not been audited either by us or by other auditor. These unaudited financial statements 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 this subsidiary, and our report in terms of sub-section (3) of Section 143 of the Act in so far as it relates to the aforesaid subsidiary, is based solely on such unaudited financial statements. In our opinion and according to the information and explanations given to us by the Management, these financial statements are not material to the Group.

Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of this matter with respect to 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 report of the other auditor on separate financial statements of such subsidiary, as was audited by other auditor, 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 report of the other auditor.
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 March 31, 2023 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 March 31, 2023 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 invested (either from borrowed be included in the Auditor’s Report in funds or share premium or any accordance with Rule 11 of the Companies other sources or kind of funds) (Audit and Auditors) Rules, 2014, in our by the Holding Company or any opinion and to the best of our information of such subsidiaries to or in any and according to the explanations given to other person(s) or entity(ies), us and based on the consideration of the including foreign entities report of the other auditor on separate (“Intermediaries”), with the financial statements of the subsidiary, as understanding, whether recorded noted in the “Other Matters” paragraph: in writing or otherwise, that the a. Intermediary shall directly or The consolidated financial statements disclose the impact of pending indirectly lend or invest in other litigations as at March 31, 2023 on persons or entities identified in the consolidated financial position any manner whatsoever by or on behalf of the Holding Company of the Group. Refer Note 33 to the consolidated financial statements. or any of such subsidiaries (“Ultimate Beneficiaries”) or b. Provision has been made in the Provide any guarantee, security consolidated financial statements, as or the like on behalf of the required under the applicable law or Ultimate Beneficiaries.

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.
on long-term contracts including (ii) The respective management of derivative contracts. Refer Note 40 to the Company and its subsidiaries, the consolidated financial statements which are companies incorporated in respect of such items as it relates to in India whose financial statements have been audited
the Group. under the Act have represented
c. There has been no delay in transferring to us and the other auditor of amounts to the Investor Education such subsidiary company that,
and Protection Fund by the Holding to the best of its knowledge and
Company during the year ended March belief, as disclosed in the Note
31, 2023. There are no amounts which 47(f)(ii) to the consolidated are required to be transferred to the financial statements, no funds Investor Education and Protection have been received by the
Fund by subsidiary companies Holding Company or any of such
incorporated in India during the year subsidiaries from any person(s)
ended March 31, 2023. or entity(ies), including foreign
d (i) The respective management of entities (“Funding Parties”), with the Company and its subsidiaries, the understanding, whether which are companies incorporated recorded in writing or otherwise, in India whose financial that the Holding Company or any statements have been audited of such subsidiaries shall directly under the Act have represented or indirectly, lend or invest in to us and the other auditor of other persons or entities identified such subsidiary company that, in any manner whatsoever by or to the best of its knowledge on behalf of the Funding Parties and belief, as disclosed in the (“Ultimate Beneficiaries”) or Note 47(f)(i) to the consolidated Provide any guarantee, security financial statements, no funds or the like on behalf of the have been advanced or loaned or Ultimate Beneficiaries.

294

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

(iii) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances performed by us and that performed by the auditor of the subsidiary company incorporated in India whose financial statements have been audited under the Act, nothing has come to our or other auditor’s notice that has caused us or the other auditor to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (i) and (ii) above, contain any material misstatement.
e. The interim dividend declared and paid by the Holding Company during the year and until the date of this audit report is in accordance with Section 123 of the Act.
f. As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Holding Company or any of such subsidiaries only with effect from 1 April 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is not applicable.
C. With respect to the matter to be included in the Auditor’s Report under Section 197(16) of the Act:

In our opinion and according to the information and explanations given to us and based on the reports of the statutory auditor of such subsidiary company incorporated in India which was not audited by us, the remuneration paid during the current year by the Holding Company and its subsidiary companies to its directors is in accordance with the provisions of Section 197 of the Act. The remuneration paid/payable to any director by the Holding Company and its subsidiary companies is not in excess of the limit laid down under Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed other details under Section 197(16) of the Act which are required to be commented upon by us.

For B S R & Co. LLP
Chartered Accountants
Firm’s Registration No.:101248W/W-100022

Kaushal Kishore

Partner
Place: Gurugram Membership No.: 090075 Date: 09 May 2023 ICAI UDIN:23090075BGYUKT4193

Annexure A to the Independent Auditor’s Report on the Consolidated Financial Statements of SRF Limited for the year ended March 31, 2023

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of 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 ICAI UDIN:23090075BGYUKT4193

Place: Gurugram Date: 09 May 2023

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Annexure B to the Independent Auditor’s Report on the consolidated financial statements of SRF Limited for the year ended March 31, 2023

Report on the internal financial controls with reference to the aforesaid consolidated financial statements under Clause (i) of Subsection 3 of Section 143 of the Act

statements criteria 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 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 SRF Limited (hereinafter referred to as “the Holding Company”) as of and for the year ended March 31, 2023, we have audited the internal financial controls with reference to financial statements of the Holding Company and such companies incorporated in India under the Act which are its subsidiary companies, as of that date.

Auditor’s Responsibility

Our responsibility is to express an opinion on the 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 if such controls operated effectively in all material respects.

In our opinion and based on the consideration of report of the other auditor on internal financial controls with reference to financial statements of subsidiary company, as was audited by the other auditor, 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 financial statements and such internal financial controls were operating effectively as at March 31, 2023, based on the internal financial controls with reference to 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”).

Management’s and Board of Directors’ Responsibilities for Internal Financial Controls

The respective 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

assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error.

Inherent Limitations of Internal Financial Controls with Reference to Consolidated Financial Statements

We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditor of the relevant subsidiary company in terms of their report 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 financial statements.

Meaning of Internal Financial Controls with Reference to Consolidated Financial

Statements

A company’s internal financial controls with reference to financial statements is a process designed Other Matter to provide reasonable assurance regarding the Our aforesaid report under Section 143(3)(i) of the Act reliability of financial reporting and the preparation on the adequacy and operating effectiveness of the of consolidated financial statements for external internal financial controls with reference to financial purposes in accordance with generally accepted statements insofar as it relates to one subsidiary accounting principles. A company’s internal financial company, which is a company incorporated in India, controls with reference to financial statements include is based on the corresponding report of the auditor of those policies and procedures that (1) pertain to the such company incorporated in India. maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and Our opinion is not modified in respect of above matter. dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with generally For B S R & Co. LLP accepted accounting principles, and that receipts and Chartered Accountants expenditures of the company are being made only in Firm’s Registration No.:101248W/W-100022 accordance with authorisations of management and directors of the company; and (3) provide reasonable Kaushal Kishore assurance regarding prevention or timely detection Partner of unauthorised acquisition, use, or disposition of the Place: Gurugram Membership No.: 090075 company’s assets that could have a material effect on Date: 09 May 2023 ICAI UDIN:23090075BGYUKT4193 the consolidated financial statements.

Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls with reference to financial statements insofar as it relates to one subsidiary company, which is a company incorporated in India, is based on the corresponding report of the auditor of such company incorporated in India.

298 Annual Report 2022-23

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Consolidated Balance Sheet

as at March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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Particulars Note No. As at As at
March 31, 2023 March 31, 2022
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ASSETS
Non-current assets
Property, plant and equipment	4	9,647.86	8,050.54
Right-of-use assets	43	287.21	255.35
Capital work-in-progress	4.1	2,405.54	1,671.63
Goodwill	5	-	-
Other intangible assets	6	114.73	119.40
Financial assets
(i) Investments	7	4.16	4.16
(ii) Loans	8	44.82	14.72
(iii) Other fnancial assets	10	68.21	140.52
Deferred tax assets	9	18.65	11.60
Non current tax assets (net)	22	91.26	21.31
Other non-current assets	11	297.13	233.06
Total non-current assets		12,979.57	10,522.29
Current assets
Inventories	12	2,274.29	2,138.47
Financial assets
(i) Investments	7	490.05	316.74
(ii) Trade receivables	13	1,785.62	1,792.45
(iii) Cash and cash equivalents	14	607.98	450.48
(iv) Bank balances other than above	15	8.48	8.87
(v) Loans	8	11.02	8.80
(vi) Other fnancial assets	10	234.84	225.83
Other current assets	11	362.67	309.68
Total current assets		5,774.95	5,251.32
Assets classifed as held for sale	42	-	3.00
TOTAL ASSETS		18,754.52	15,776.61
EQUITY AND LIABILITIES
Equity
Equity share capital	16	297.44	297.44
Other equity	17	10,029.61	8,267.92
Total equity		10,327.05	8,565.36
Liabilities
Non-current liabilities
Financial liabilities
(i) Borrowings	18	2,311.52	1,753.30
(ii) Lease liabilities	43	97.57	95.18
(iii) Other fnancial liabilities	21	159.47	153.86
Provisions	19	60.80	51.58
Deferred tax liabilities (net)	9	809.22	677.46
Other non-current liabilities	23	72.29	39.56
Total non-current liabilities		3,510.87	2,770.94

Consolidated Balance Sheet (CONTD.)

as at March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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Particulars Note No. As at As at
March 31, 2023 March 31, 2022
----- End of picture text -----

Current liabilities
Financial liabilities
(i) Borrowings	18	2,042.54	1,786.05
(ii) Lease liabilities	43	25.90	20.66
(iii) Trade payables	20
a) Total outstanding dues of micro enterprises and small		67.79	55.98
enterprises
b) Total outstanding dues of creditors other than micro		2,163.48	2,040.37
enterprises and small enterprises
(iv) Other fnancial liabilities	21	485.56	371.70
Other current liabilities	23	108.79	143.97
Provisions	19	7.91	7.38
Current tax liabilities(Net)	22	14.63	14.20
Total current liabilities		4,916.60	4,440.31
Total Liabilities		8,427.47	7,211.25
TOTAL EQUITY AND LIABILITIES		18,754.52	15,776.61
Summary of signifcant accounting policies	1-3
See accompanying notes to the consolidated fnancial	4 to 47
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

Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 09, 2023

300

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Consolidated Statement of Profit and Loss

for the Year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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Particulars Note No. Year ended Year ended
March 31, 2023 March 31, 2022
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I	Revenue from operations	24	14,870.25	12,433.66
II	Other income	25	74.93	115.51
III	Total Income (I + II)		14,945.18	12,549.17
IV	Expenses
	Cost of materials consumed	26.1	7,125.21	6,171.10
	Purchases of stock-in-trade	26.2	277.22	175.59
	Changes in inventories of fnished goods, work-in-progress	26.3	(8.92)	(279.75)
	and stock-in-trade
	Employee benefts expense	27	813.80	780.00
	Finance costs	28	204.82	115.93
	Depreciation and amortisation expense	29	575.32	517.23
	Other expenses	30	3,133.74	2,483.52
	Total Expenses (IV)		12,121.19	9,963.62
V	Proft before tax (III - IV)		2,823.99	2,585.55
VI	Tax expense	31
	Current tax		614.88	657.53
	Deferred tax
	- MAT credit entitlement		(94.13)	(25.27)
	- Others		140.90	64.37
	Total tax expense		661.65	696.63
VII	Proft for the year (V - VI)		2,162.34	1,888.92
VIII	Other comprehensive income
A	Items that will not be reclassifed to proft or loss
	(i) Gain /(loss) on remeasurements of the defned beneft	17.2, 36.2	(11.95)	(7.47)
	obligation
	Income tax on item (i) above	17.2, 32	4.24	2.55
B	Items that will be reclassifed to proft or loss
	(i) Exchange diferences on translating fnancial	17.9	(7.32)	1.30
	statements of foreign operations
	(ii) Efective portion of gains / (losses) on designated portion of hedging instruments in a cash fow hedge	17.3	(252.41)	39.99
	Income tax on item (ii) above	32	67.58	(13.03)

Consolidated Statement of Profit and Loss (CONTD.)

for the Year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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Particulars Note No. Year ended Year ended
March 31, 2023 March 31, 2022
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	(iii) Cost of hedging reserve	17.4	5.02	(2.17)
	Income tax on item (iii) above	32	(0.79)	(0.45)
	Total other comprehensive income / (loss) for the		(195.63)	20.72
	year, net of taxes (A(i) + B(i+ii+iii))
IX	Total comprehensive income for the year		1,966.71	1,909.64
	(VII + VIII)
	Basic and Diluted earning per equity share (in`)	39	72.95	63.75
	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

Kaushal Kishore

Ashish Bharat Ram

Kartik Bharat Ram

Bharti Gupta Ramola

Chairman and Joint Managing Director Director Managing Director DIN - 00008557 DIN - 00356188 DIN - 00671567

Partner Membership No.: 090075

Place : Gurugram Rahul Jain Date : May 09, 2023 President & CFO

Rajat Lakhanpal

Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 09, 2023

302 Annual Report 2022-23

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Consolidated Cash Flow Statement

for the Year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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Particulars Year ended Year ended
March 31, 2023 March 31, 2022
A CASH FLOW FROM OPERATING ACTIVITIES
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	Proft before tax	2,823.99	2,585.55
	Adjustments for:
	Finance costs	204.82	115.93
	Interest income	(44.70)	(24.00)
	Net gain on sale of property, plant and equipment Net gain on fnancial assets measured at fair value through proft and loss	(6.00) (9.10)	(2.90) (7.06)
	Credit impaired assets provided / (written back)	2.56	0.95
	Amortisation of grant income	(5.04)	(1.76)
	Depreciation and amortisation expense	575.32	517.23
	Property, plant and equipment and inventory discarded / provided	3.87	18.80
	Provision / liabilities no longer required written back Net unrealised currency exchange fuctuations loss /(gain)	(27.44) (56.97)	(2.71) (39.44)
	Employee share based payment expense	8.41	11.11
	Stamp duty on purchase of investments	0.07	0.08
	Adjustments for (increase) /decrease in operating assets :-
	Trade receivables	(2.15)	(507.14)
	Inventories	(130.70)	(665.67)
	Loans (current)	(2.26)	(1.24)
	Loans (non-current)	(30.76)	(4.16)
	Other assets (current)	(118.05)	(23.11)
	Other assets (non-current)	(23.62)	(1.85)
	Adjustments for increase / (decrease) in operating liabilities :-
	Trade payables	122.10	510.11
	Provisions	9.71	6.68
	Other liabilities (non-current)	(0.34)	0.34
	Other liabilities (current)	115.70	21.58
	Cash generated from operations	3,409.42	2,507.32
	Income taxes paid (net of refunds)	(507.71)	(401.60)
	Net cash generated from operating activities	2,901.71	2,105.72
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	(164.21)	102.84
	Stamp duty on purchase of investments	(0.07)	(0.08)
	Interest received	27.25	31.60
	Bank balances not considered as cash and cash equivalents	27.49	104.98
	Payment for purchase of property, plant, equipment, capital work-	(2,838.18)	(1,832.07)
	in-progress and intangible assets
	Upfront payment made for acquisition of Right of use asset	(27.57)	-
	Proceeds from disposal of property, plant and equipment	13.88	14.95
	Net cash used in investing activities	(2,961.41)	(1,587.74)
C.	CASH FLOW FROM FINANCING ACTIVITIES
	Proceeds from issue of shares	^^	0.20
	Proceeds from long term borrowings	932.42	533.15
	Repayment of long term borrowings	(758.78)	(470.94)
	Net proceeds / (repayment) of short term borrowings	486.22	84.98
	Dividends on equity share capital paid	(213.32)	(211.74)
	Principal payment towards lease liability	(32.47)	(25.68)
	Finance costs paid Net cash generated / (used in) from fnancing activities	(194.49) 219.58	(117.25) (207.28)
D.	EFFECT OF EXCHANGE RATE MOVEMENTS	(2.38)	1.49
	Net increase in cash and cash equivalents	157.50	312.19
	Cash and cash equivalents at the beginning of the year	450.48	138.29
	Cash and cash equivalents at the end of the year (Refer to note 14)	607.98	450.48

Consolidated Cash Flow Statement (CONTD.)

for the Year ended March 31, 2023

(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 28.63 crores (Previous year: 21.75 crores) towards corporate social responsibility (CSR) expenditure.
(iii) The following table discloses changes in liabilities arising from historical activities including both cash and non cash changes.

Particulars	As at March 31, 2022	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	As at March 31, 2023
Equity share capital	297.44	^^	-	-	-	-	-	-	297.44
Security Premium	509.56	-	-	-	-	-	-	-	509.56
Non current borrowings^	2,497.49	173.64	1.90	129.75	-	-	-	-	2,802.78
Current borrowings*	1,041.86	486.22	-	23.20	-	-	-	-	1,551.28
Interest accrued	4.47	(194.49)	-	-	204.82	-	-	-	14.80
Lease liability	115.84	(32.47)	-	-	8.99	-	31.11	-	123.47
Dividend	6.72	(213.32)	-	-	-	213.43	-	-	6.83
Total	4,473.38	219.58	1.90	152.95	213.81	213.43	31.11	-	5,306.16

Particulars	As at March 31, 2021	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	As at March 31, 2022
Equity share capital	60.26	0.20	-	-	-	-	-	236.98	297.44
Security Premium	736.25	-	-	-	-	-	-	(226.69)	509.56
(net of issue expenses)
Non current borrowing^	2,425.26	62.20	2.24	7.79	-	-	-	-	2497.49
Current borrowings*	965.70	84.98	-	(8.82)	-	-	-	-	1041.86
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

^^ Amount in absolute ` 38,000
^ including current maturities of long term borrowings
excluding current maturities of long term borrowings
including amount capitalized

Summary of significant accounting policies 1-3 See accompanying notes to the consolidated financial 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

Kaushal Kishore

Ashish Bharat Ram Kartik Bharat Ram Bharti Gupta Ramola Chairman and Joint Managing Director Director Managing Director DIN - 00008557 DIN - 00356188 DIN - 00671567

Partner Membership No.: 090075

Place : Gurugram Date : May 09, 2023

Rahul Jain

Rajat Lakhanpal

President & CFO

Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 09, 2023

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Consolidated Statement of Changes in Equity

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(a) Equity share capital

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Amount
Balance at March 31, 2021 60.26
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Balance	at March 31, 2021	Amount 60.26
Changes Balance Changes	in equity share capital during the year at March 31, 2022 in equity share capital during the year	237.18 297.44 ^
Balance	at March 31, 2023	297.44

^ Amount in absolute ` 38,000

(b) Other Equity

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Particulars Reserves and Surplus Items of other comprehensive income Total
Capital General Capital Debenture Securities Employee Retained Exchange Equity Effective Cost of
reserve reserve redemption redemption Premium share earnings differences instruments portion of hedging
reserve reserve based on translating through other cash flow reserve
payment financial comprehensive hedge
reserve statements of income
foreign operations
Balance at March 31, 2021 193.77 648.77 10.48 62.50 736.25 2.52 5,113.66 21.77 (4.22) 7.53 3.13 6,796.16
Profit for the year - - - - - - 1,888.92 - - - 1,888.92
Other comprehensive income for the year, - - - - - - (4.92) 1.30 - 26.96 (2.62) 20.72
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Balance at March 31, 2021 Proft for the year Other comprehensive income for the year,	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
net of income tax Total comprehensive income for the year	-	-	-	-	-	-	1,884.00	1.30	-	26.96	(2.62)	1,909.64
Dividend ^ Employee share based payments to employees Recognised / (released) on vesting of	- - -	- - -	- - -	- - -	- - 10.29	- 10.93 (10.23)	(211.89) - -	- - -	- - -	- - -	- - -	(211.89) 10.93 0.06
shares issued under employee share purchase scheme Utilisation on issue of bonus equity shares Balance at March 31, 2022 Proft for the year Other comprehensive income / (loss) for the year, net of income tax Total comprehensive income for the year Dividend ^	- 193.77 - - - -	- 648.77 - - - -	- 10.48 - - - -	- 62.50 - - - -	(236.98) 509.56 - -	- 3.22 - - - -	- 6,785.77 2,162.34 (7.71) 2,154.63 (213.43)	- 23.07 - (7.32) (7.32) -	- (4.22) - - - -	- 34.49 - (184.83) (184.83) -	- 0.51 4.23 4.23 -	(236.98) 8,267.92 2,162.34 (195.63) 1,966.71 (213.43)
Employee share based payment expense	-	-	-	-	-	8.41	-	-	-	-	-	8.41
Transfer from Debenture redemption reserve to General reserve Balance at March 31, 2023	- 193.77	62.50 711.27	- 10.48	(62.50) -	- 509.56	- 11.63	- 8,726.97	- 15.75	- (4.22)	- (150.34)	4.74	- 10,029.61

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 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 Bharti Gupta Ramola Joint Managing Director Director DIN - 00008557 DIN - 00356188

Ashish Bharat Ram Chairman and Managing Director DIN - 00671567

Kaushal Kishore Partner Membership No.: 090075

Place : Gurugram Date : May 09, 2023

Rahul Jain President & CFO

Rajat Lakhanpal Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 09, 2023

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

The functional currency of the Company is 'INR'. The functional currencies of Group companies are INR, 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.

1 CORPORATE INFORMATION

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;
is exposed, or has rights, to variable returns from its involvement with the investee; and

The principal activities of the Company and its subsidiaries (together the Group) are manufacturing, purchase and sale of technical textiles, chemicals, packaging films, aluminium foils and other polymers.

has the ability to use its power to affect its returns.

The Group ‘controls’ an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. 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.

The consolidated financial statements were authorised for issue in accordance with a resolution of the directors on May 09, 2023.

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, unrealised profits or losses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

Share based payments

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Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(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, 2023 March 31, 2022
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Indian Subsidiaries
SRF Holiday Home Limited	India	100%	100%
SRF Altech Limited	India	100%	100%
SRF Employees Welfare Trust (Controlled Trust) Foreign Subsidiaries	India	*	*
SRF Global BV	Netherlands	100%	100%
SRF Europe Kft (100% subsidiary of SRF Global BV) SRF Industries (Thailand) Limited (100% subsidiary of SRF Global BV)	Hungary Thailand	100% 100%	100% 100%
SRF Industex Belting (Pty) Limited	Republic of South	100%	100%
(100% subsidiary of SRF Global BV)	Africa
SRF Flexipak (South Africa) (Pty) Limited (100% subsidiary of SRF Global BV)	Republic of South Africa	100%	100%

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
Expected to realised within 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.

Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

The principal accounting policies are set out below.

It is expected to be settled in normal operating cycle

2.2 Current versus non-current classification

It is held primarily for the purpose of trading

The group presents assets and liabilities in the balance sheet based on current/non-current classification.

It is due to be settled within twelve months after the reporting period.

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

proceeds of items produced over the cost of testing, if any, are not recognised in the profit or loss but deducted from the directly attributable costs of property, plant, and equipment.

There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

The group classifies all other liabilities as noncurrent.

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.

2.3 Property, plant and equipment (PPE)

The cost of an item of property, plant and equipment shall be recognised as an asset if, and only if it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably.

Assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

Capital Work in Progress: Project under which assets are not yet ready for their intended use are carried at cost comprising direct cost of material and labour, related incidental expenses and attributable interest.

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 group intends to use these for more than a period of 12 months.

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.

2.4 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 borrowings 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 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

Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for qualifying assets, up to the date of commissioning of the assets. Excess of net sale

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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:

Management’s estimate of useful life

Roads Buildings (including temporary structures) Plant and equipment	40-50 years 5-60 years 2-40 years
Furniture and fxtures	3-20 years
Ofce equipment	3-20 years
Vehicles	4-5 years

Trademarks / Brand Technical Knowhow	10-30 years 30-40 years
Software	3-5 years
Other intangibles	2.5-12 years

Freehold land is not depreciated.

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 the previous GAAP and use that carrying value as its deemed cost as of transition date.

Depreciation is calculated on a pro rata basis except, assets costing up to ` 5,000 each, which are fully depreciated in the year of purchase.

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 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.

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.

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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.

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.

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

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.

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 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 cashgenerating 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 cashgenerating units that is expected to benefit from the synergies of the combination.

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CORPORATE OVERVIEW STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples or other available fair value indicators.

conveys the right to control the use of an identified asset, the Group assess whether:

– 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 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 5[th] 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.

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 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 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:

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.

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

The group reassesses 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 standalone prices.

2.9 Leasing

Group as lessee

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

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

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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.

under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option.

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 Group has elected not to recognise rightof 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.

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 interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.

2.10 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.

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 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 up to 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.

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

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Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

income earned on temporary investment of specific borrowing pending expenditure on qualifying asset.

2.11 Foreign Currencies

Transaction and balances

Transactions in foreign currencies are recorded on initial recognition at the exchange rate prevailing on the date of the transaction.

(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.
(ii) Exchange differences pertaining to long term foreign currency loans obtained or re-financed on or before March 31, 2016

materials, components and other supplies held for use in the production of finished products are not written down below cost except in cases when a decline in the price of materials indicates that the cost of the finished products shall exceed the net realisable value.

(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 refinanced on or after April 1, 2016 is treated in accordance with Ind AS 21/ Ind AS 109. Refer point (i) above.

The comparison of cost and net realisable value is made on an item-by-Item basis.

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.

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:

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.

(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 products in which they are to be incorporated are expected to be sold at a loss.

The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, (b) Traded goods, Stock in progress and finished provisions are discounted using a current pre-tax goods- Direct cost plus appropriate share rate that reflects, when appropriate, the risks of overheads based on normal operating specific to the liability. When discounting is used, capacity. the increase in the provision due to the passage of time is recognised as a finance cost.

(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. The net realisable value of work-in-progress is determined with reference to the selling prices of related finished goods. Raw

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 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.

Contingent assets

2.14 Revenue recognition

Sale of goods and services

Revenue from sale of products, including scrap 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 over a period of time, as and when the underlying services are performed.

Revenues towards satisfaction of a performance obligation are measured based on the transaction price (net of variable consideration), 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.

Any fees including upfront fees received in relation to contract manufacturing 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

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Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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.

2.15 Taxation

Income tax expense represents the sum of the current tax and deferred tax.
a) Current tax

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.

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.

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.

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 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 group considers whether it is probable that a taxation authority will accept an 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.

Deferred tax relating to items recognised outside profit or loss is recognised in other comprehensive income or in equity.

Deferred tax assets/liabilities are not recognised for below mentioned temporary differences:

(i) At the time of initial recognition of goodwill;

2.16 Government grants

(ii) Initial recognition of assets or liabilities Government grants are recognised where there
(other than in a business combination) is reasonable assurance that the grant will be
at the time of the transaction, affects received and all attached conditions will be neither the accounting profit nor complied with. taxable profit or loss;
A government grant that becomes receivable
(iii) In respect of taxable temporary as compensation for expenses or losses is
differences associated with recognised in profit or loss on a systematic basis
investments in subsidiaries, associates over the periods in which the group recognizes
and interests in joint ventures, as expenses the related costs for which the
when the timing of the reversal of grants are intended to compensate, unless the
the temporary differences can be conditions for receiving the grant are met after
controlled and it is probable that the the related expenses have been recognised.
temporary differences will not reverse In this case the grant is recognised when it
in the foreseeable future. becomes receivable.

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

Government grants related to assets are presented in the consolidated balance sheet at fair value 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 in which the related services are rendered are measured at the undiscounted amount expected to be paid. A liability is recognised for the amount expected to be paid under short-term cash bonus, if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

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.

Defined benefit plans

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.

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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.

2.18 Earnings per share

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.

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.

2.19 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and shortterm deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

2.20 Financial instruments

Other long term employee benefits

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.

The group also has other long term benefits plan such as compensated absences. Provision for compensated absences 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.

Initial recognition and measurement

Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Group becomes a party to the contractual provisions of the instrument.

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 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.

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

A) Financial Assets Classification and Subsequent measurement For purposes of subsequent measurement, financial assets of the group are classified in three categories:

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
a) At amortised cost
b) At fair value through profit and loss (FVTPL)
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
c) At fair value through other comprehensive income (FVTOCI)debt instrument or equity instrument.

Financial asset is measured at amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

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.
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.

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.

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

lower of the original carrying amount of the asset and the maximum amount of consideration that the group could be required to repay.

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 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.
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.

Impairment of financial assets

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.

When the group has transferred its rights to receive cash flows from an asset or has entered into a passthrough 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.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical experience and informed credit assessment, that includes forwardlooking information.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

The Group considers a financial asset to be in default when the asset is unlikely to be realised in full.

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.

At Credit-impaired financial assets: each reporting date, the Group assesses whether financial assets carried at amortised cost and debt securities at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

The group’s financial liabilities include borrowings and trade and other payables including derivative financial instruments.

Subsequent measurement

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 period of the borrowings using the Effective interest rate method.

Evidence that a financial asset is creditimpaired includes the following observable data:

significant financial difficulty of the debtor;

Trade and other payables

a breach of contract such as a default ;

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.

it is probable that the debtor will enter bankruptcy or other financial reorganisation.

Offsetting of financial instruments

Presentation of allowance for ECL in the balance sheet:

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.

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets.

Write-off

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. However financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.

Derecognition

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

value or cash flows attributable to the hedged risk. The Group determines the existence of an economic relationship between the hedging instrument and hedged item based on the currency/reference interest rates, contract amount and timing of their respective cash flows. The Group assesses whether the derivative designated in each hedging relationship is expected to be and has been effective in offsetting changes in cash flows of the hedged item using the hypothetical derivative method. In these hedge relationships, the main expected sources of ineffectiveness are :

Equity Instruments

Equity Instruments are any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. 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.

liability or as equity in accordance with the a) the effect of the counterparties’ and the substance of contractual arrangements and Group’s own credit risk on the fair value of the definitions of a financial liabilities and the forward foreign exchange contracts or an equity instruments. Swaps, which is not reflected in the change in the fair value of the hedged cash flows
2.21 Derivative and Non Derivative financial attributable to the change in exchange instruments and hedge accounting rates or interest rates and

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 determine 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

b) changes in the timing of the hedged transactions.

Hedges entered into by group 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.

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

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

and later reclassified to profit and loss when the hedge item affects profit and loss.

hedge reserve, while any ineffective portion is recognised immediately in the consolidated statement of profit and loss.

For the purpose of hedge accounting, hedges are classified as:

The Group 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 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.

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.

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.

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

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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 fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

2.22 Fair value measurement

a) Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

The group measures some of its financial instruments at fair value at each balance sheet date.

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).

c) Level 3 — inputs for the asset or liability that are not based on observable market data (unobservable inputs).
a) In the principal market for the asset or liability, or
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.
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 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

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.

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

2.23 Exchange differences on translating financial statements of foreign operations
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.
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 that particular foreign operation is recognised in profit or loss.

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.

2.24 Segment reporting

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.

Based on “Management Approach” as defined in Ind AS 108 -Operating Segments, the Chief Operating Decision Maker evaluates the group’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.

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,

Segment Policies:

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.

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.

2.25 Dividend

Discontinued operations are excluded from the results of continuing operations and are presented separately in the statement of profit and loss.

The group recognises a liability to make cash distributions to equity holders when the distribution is authorised and the distribution

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

that the economic benefits will flow to the group and the amount of income can be measured reliably).

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.

2.29 Recent Pronouncements:

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 1 – Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Group does not expect this amendment to have any significant impact in its financial statements.

If consideration transferred is less than the fair value of the net identifiable assets of the business acquired, the difference is recognised in 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.

Ind AS 12 – Income Taxes

2.28 Interest and dividend income

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrows the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Group does not expect this amendment to have any significant impact in its financial statements.

Interest income is recognised when it is probable that the economic benefits will flow to the group using the effective interest method.

The ‘effective interest rate’ is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to the gross carrying amount of the financial asset; or the amortised cost of the financial liability. Interest income is accrued on time basis, by reference to the principal outstanding.

Ind AS 8 – Accounting Policies, Changes in Accounting Estimates and Errors

This amendment has introduced a definition of ‘accounting estimates’ and included amendments to Ind AS 8 to help entities distinguish changes in

Dividend income from investments is recognised when the shareholder’s right to receive payment has been established(provided that it is probable

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

accounting policies from changes in accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Group does not expect this amendment to have any significant impact in its financial statements.

Reverse factoring: presentation of amounts related to supply chain financing arrangements in the balance sheet and in the statement of cash flows Note- 20
Investments accounted for using the equity method: whether the Group has significant influence over an investee. Note- 2.1
Consolidation: whether the Group has de facto control over an investee. Note- 2.1

3 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

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.

B) Assumptions and estimation uncertainties:

Fair value measurement of derivative instruments – Note 2.22
Assessment of useful life of property, plant and equipment and intangible asset – Note 2.4

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.

Estimation of assets and obligations relating to employee benefits (including actuarial assumptions) – Note 2.17
Assessment of impairment of financial assets and non-financial assets – Note 2.20 and Note 2.8
Recognition and measurement of contingencies: key assumptions about the likelihood and magnitude of an outflow of resources – Note 2.13

A) Judgements:

Derecognition of trade receivables and hedge effectiveness- Note 2.20
Classification and lease term determination of leasing arrangement – Note 2.9
Recognition and estimation of tax expense including determination of applicable tax rate for measuring deferred tax balances– Note 2.15

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(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 31,2021	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	-	-	(5.84)	(60.90)	(0.54)	(3.92)	(4.85)	(76.05)
Efect of foreign currency exchange diferences	(0.60)	(0.06)	(3.42)	(14.55)	0.03	0.07	(0.01)	(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
Additions/adjustments	19.78	17.52	169.11	1,822.74	3.86	13.84	31.70	2,078.55
Disposals/adjustments	(3.40)	-	(0.56)	(25.59)	(0.49)	(2.49)	(12.71)	(45.24)
Efect of foreign currency exchange diferences	2.40	0.37	15.05	58.09	(0.05)	(0.12)	0.05	75.79
Balance at March 31,2023	418.26	118.36	1,501.27	10,271.24	38.94	93.85	68.90	12,510.82
Accumulated depreciation
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
Depreciation expenses	-	2.73	40.08	474.16	2.81	9.07	9.87	538.72
Disposals/adjustments	-	-	(0.10)	(21.30)	(0.28)	(2.17)	(8.16)	(32.01)
Efect of foreign currency exchange diferences	-	0.04	0.11	5.05	(0.00)	(0.16)	0.03	5.07
Balance at March 31,2023	-	15.24	208.71	2,535.01	18.38	54.08	31.54	2,862.96
Net block
Balance at March 31,2022	399.48	88.00	1,149.05	6,338.90	19.77	35.28	20.06	8,050.54
Balance at March 31,2023	418.26	103.12	1,292.56	7,736.23	20.56	39.77	37.36	9,647.86

Notes:

(i) Borrowing cost capitalised during the year is 53.51 crores (Previous year: 18.41 crores) with a capitalisation rate ranging from 0.49% to 8.04% (Previous year: 0.40% to 3.55%).
(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 7.22 crores (Previous year: 8.49 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.
(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 19.66 crores (previous year : 37.80 crores) 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.

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(vi) Capital work-in-progress

	As at March 31, 2023	As at March 31, 2022
Opening balance	1671.63	772.26
Additions during the year *	2812.46	1978.49
Less: Amount capitalised during the year	2078.55	1079.12
Closing balance	2,405.54	1,671.63

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 previous year include property, plant and equipment classified as assets held for sale. Refer note 42.

4.1 CAPITAL WORK-IN-PROGRESS (CWIP)

(i) Ageing of capital work-in-progress :

	Amount in CWIP for aperiod of
	Less than 1 year 1 - 2 years 2 - 3 years More than 3 years Total
Projects in progress As at March 31, 2023 As at March 31,2022	2,113.22 236.61 46.96 8.75 2,405.54 1,554.87 102.92 13.84 - 1,671.63

(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, 2023
	To be completed in
	Less than 1year 1 - 2 years 2 - 3 years More than 3years
Projects in progress Integrated facility for development of PTFE Thermal oxidation facility Pharma intermediates plant Dedicated facilities to produce agrochemicals intermediates Capacity enhancement of TCF value chain Others *	453.03 - - - 108.39 - - - 223.32 - - - 115.22 - - - 83.97 - - - 181.45 5.40 - -
	1,165.38 5.40 - -

	As at March 31, 2022
	To be completed in
	Less than 1 year 1 - 2 years 2 - 3 years More than 3 years
Projects in progress Chloromethanes plant Augmentation of power and steam capacity Others *	333.38 - - - 138.23 - - - 164.04 0.02 - -
	635.65 0.02 - -

Comprises projects not considered material at an individual level. Also refer note no 4 (vi)

328

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Annual Report 2022-23

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

5 GOODWILL

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Amount
Cost
Balance at March 31,2021 4.12
Additions -
Disposals -
Balance at March 31, 2022 4.12
Additions -
Disposals -
Balance at March 31, 2023 4.12
Accumulated impairment losses Amount
Balance at March 31,2021 3.50
Additions (Refer note 42) 0.62
Disposals -
Balance at March 31, 2022 4.12
Additions -
Disposals -
Balance at March 31, 2023 4.12
As at As at
March 31, 2023 March 31, 2022
Carrying Amount - -
- -
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6 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, 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
Additions / adjustments	-	-	5.54	-	5.54
Efect of foreign currency ex- change diference			(0.08)	(1.09)	(1.17)
Disposals/adjustments	-	-	(0.19)	-	(0.19)
Balance at March 31, 2023	73.25	55.19	39.29	28.09	195.82
Accumulated amortisation
Balance at March 31,2021	19.21	7.65	29.27	18.55	74.68
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

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(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	4.10	0.79	9.04
Efects of foreign currency exchange diferences	-	-	-	-	-
Disposals/adjustments	-	-	(0.19)	-	(0.19)
Balance at March 31, 2023	19.83	11.05	30.76	19.45	81.09
Net block
Balance at March 31, 2022	55.87	45.84	7.17	10.52	119.40
Balance at March 31, 2023	53.42	44.14	8.53	8.64	114.73

Notes:

“Other” intangible assets acquired through Business Combination during the previous year. (Refer note 46 below).

7 INVESTMENTS

	As at March 31, 2023	As at March 31, 2022
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	353.73	121.86
Investment in bonds/Debentures	136.32	194.88
	490.05	316.74
Aggregate book value and market value of quoted investments	136.32	194.88
Aggregate book value and market value of unquoted investments	353.73	121.86

7.1 Investment in equity instruments (at fair value through other comprehensive income)

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As at March 31, 2023 As at March 31, 2022
Number Amount Number Amount
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Unquoted investments (Non-current)
Equity shares of`10 each fully paid up of Malanpur Captive	42,21,535	4.22	42,21,535	4.22
Power Limited
Less: impairment in value of investments		(4.22)		(4.22)
Equity Share of`10 each fully paid of Vaayu Renewable	50,000	0.05	50,000	0.05
Energy (Tapti) Private Limited
Equity Shares of`10 each fully paid of Suryadev Alloys &	13,54,000	4.11	13,54,000	4.11
Power Private Limited
Equity shares of`10 each fully paid up of Sanghi Spinners	6,70,000	0.12	6,70,000	0.12
India Limited
Less: impairment in value of investments	-	(0.12)	-	(0.12)
		4.16		4.16

330 Annual Report 2022-23

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements for the year ended March 31, 2023

(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, 2023 As at March 31, 2022
Number Amount Number Amount
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Unquoted investments (Current)
ICICI Prudential P1543 Floating Interest Fund- Growth Plan	36,12,365	128.63	36,12,365	121.86
Axis Liquid Fund- Regular Growth Plan	3,02,077	75.04	-	-
Aditya Birla Sun Life liquid Fund - Regular Growth Plan	20,85,916	75.05	-	-
Kotak Overnight Fund - Regular Growth Plan	6,29,688	75.01
		353.73		121.86

7.3 Investment in Bonds/Debentures (at fair value through profit and loss)

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As at March 31, 2023 As at March 31, 2022
Number Amount Number Amount
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Quoted investments (Current)
Debentures
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
`10,00,000 each
8.99% Bank of Baroda Perpetual Bonds 2024 of	550	55.60	550	56.92
`10,00,000 each
9.56% State Bank of India Perpetual Bonds 2023 of	500	50.36	500	52.33
`10,00,000 each
8.50% State Bank of India Perpetual Bonds 2024 of	248	25.27	248	25.40
`10,00,000 each
8.50% State Bank of India Perpetual Bonds 2025 of	50	5.09	50	5.11
`10,00,000 each
		136.32		194.88

8 LOANS

(unsecured and considered good, unless otherwise stated)

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As at As at
March 31, 2023 March 31, 2022
Non- current
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Non- current
Loans to ofcers *	28.54	3.83
Loans to employees	16.28	10.89
	44.82	14.72
Current
Loans to ofcers *	1.02	0.95
Loans to employees	10.00	7.85
Others (other than related parties)
- Considered good	-	-
- Credit impaired	2.74	2.74
Less : Loss allowance	(2.74)	(2.74)
	11.02	8.80

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(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.

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As at As at
March 31, 2023 March 31, 2022
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Deferred tax assets	101.00	107.26
Deferred tax liabilities	(891.57)	(773.12)
Deferred tax liabilities, net	(790.57)	(665.86)
Net Deferred tax assets after set of	18.65	11.60
Net Deferred tax liabilities after set of	809.22	677.46

The major components of deferred tax assets / (liabilities) arising on account of temporary differences are as follows:

2022-23	Opening balance	Recognised in statement of proft and loss	MAT Credit Entitlement utilised	Recognised in other comprehensive income	Foreign currency translation reserve for the year	Closing Balance
Deferred tax assets
Expenses deductible in	21.43	(5.65)	-	-	(0.41)	15.37
future years
Provision for credit	0.82	0.05	-	-	0.01	0.88
impaired loans / receivables
MAT Credit Entitlement	58.45	94.13	(152.58)	-	-	-
Cash fow hedges / Cost of	-	-	-	49.04	-	49.04
hedging reserve
Unabsorbed carried forward	18.41	6.92	-	-	0.72	26.05
losses
Others	8.15	2.05	-	-	(0.54)	9.66
	107.26	97.50	(152.58)	49.04	(0.22)	101.00
Deferred tax liabilities
Property plant and	(742.47)	(135.10)	-	-	8.07	(869.50)
equipment and intangible
assets
Investment in mutual funds	(11.94)	(0.96)	-	-	-	(12.90)
Cash fow hedges / Cost of	(17.75)	-	-	17.75	-	-
hedging reserve
Others	(0.96)	(8.21)	-	-	-	(9.17)
	(773.12)	(144.27)	-	17.75	8.07	(891.57)
Total	(665.86)	(46.77)	(152.58)	66.79	7.85	(790.57)

Officers as defined under Section 2(59) of the Companies Act 2013.

332

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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10 OTHER FINANCIAL ASSETS
2021-22 Opening Recognised MAT Credit Recognised Foreign Closing
balance in statement Entitlement in other currency Balance (unsecured and considered good, unless otherwise stated)
of profit and utilised comprehensive translation
As at As at
loss income reserve for
March 31, 2023 March 31, 2022
the year
Non Current
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Expenses deductible in future years 23.49 (2.27) - - 0.21 21.43 Provision for credit impaired loans / receivables 1.26 (0.44) - - - 0.82 MAT Credit Entitlement 274.66 25.27 (241.48) - - 58.45 Unabsorbed carried forward losses 23.95 (4.92) - - (0.62) 18.41 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 equipment and intangible assets (683.28) (55.56) - - (3.63) (742.47) Investment in mutual funds (10.85) (1.09) - - - (11.94) Cash fow hedges / Cost of hedging reserve (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) Notes: (i) At March 31, 2023, 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 profts of its subsidiaries will not be distributed in the foreseeable future. (ii) As per the relevant accounting standards, the Company continues to reassess its MAT utilization and its recognition. Basis current proftability and reassessment of certain tax positions, the Company has recognized an additional MAT credit of`94.13 crores (including`74.02 crores which was previously written of during the fnancial year 2020- 21), and the same has also been utilised in current year.	Derivatives carried at fair value through other comprehensive income - Forward exchange contracts used for hedging - 60.65 - Interest rate swaps used for hedging - 0.36 Other fnancial assets carried at amortised cost - Security deposits Related parties (Refer note 35) 3.50 3.53 Other than related parties 45.95 30.12 - Government grant and claims recoverable 15.86 15.86 - Deposit accounts with maturity beyond twelve months - 30.00 - Earmarked bank deposits -Margin money 2.90 -
	68.21 140.52
	Current Derivatives carried at fair value through proft and loss - Forward exchange contracts used for hedging - 3.64 - Other forward exchange contracts 0.10 - Derivatives carried at fair value through other comprehensive income - Forward exchange contracts used for hedging - 60.52 - Interest rate swaps used for hedging 0.89 3.16 Other fnancial assets carried at amortised cost - Security deposits Other than related parties 2.57 2.59 - Insurance claim recoverable 3.59 1.09 - Government grant and claims recoverable 222.05 135.07 - Others 5.64 19.76
	234.84 225.83

334 Annual Report 2022-23

Annual Report 2022-23 335

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

11 OTHER ASSETS

(unsecured and considered good, unless otherwise stated)

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As at As at
March 31, 2023 March 31, 2022
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Non-Current
Capital advances	270.42	214.17
Prepaid expenses	0.60	0.72
Goods and services tax and other taxes/ duties paid under protest	25.79	18.05
Others	0.32	0.12
Total other non-current assets	297.13	233.06
Current
Prepaid expenses	25.10	17.22
Value added tax/ Goods and services tax recoverable	142.66	135.25
Export incentives recoverable	8.71	16.21
Deposits with customs and excise authorities	22.55	15.52
Advance to suppliers	161.61	124.11
Others	2.04	1.37
Total other current assets	362.67	309.68

12 INVENTORIES

(Valued at lower of cost and net realisable value)

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As at As at
March 31, 2023 March 31, 2022
Raw material (including packing material) 1,102.59 1,058.18
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Raw material (including packing material)	1,102.59	1,058.18
Stock in progress	239.56	237.41
Finished goods	476.19	535.44
Stores and spares (including fuel)	360.24	280.05
Traded goods	95.71	27.39
	2,274.29	2,138.47
Goods-in-transit, included above :
Raw material (including packing material)	263.50	256.55
Finished goods	79.95	162.25
Stores and spares (including fuel)	2.66	2.51
Traded goods	2.46	9.62
	348.57	430.93

Notes:

(i) The cost of inventories recognised as an expense includes 8.67 crores.(Previous year : 5.92 crores) in respect of write-downs of inventory to net realisable value. The write downs is included in “Changes in inventories of finished goods, work-in-progress and stock-in-trade”.

(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

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

13 TRADE RECEIVABLES

Current	As at March 31, 2023	As at March 31, 2022
Unsecured, considered good	1,785.62	1,792.45
Unsecured, credit impaired	5.30	3.45
Less: Loss allowance	(5.30)	(3.45)
	1,785.62	1,792.45

(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.
(ii) Ageing of receivables :

Outstanding for following periods from due date of payment	As at March 31, 2023
	Undisputed Trade Receivables- considered good Undisputed Trade Receivables- credit impaired Undisputed Trade Receivables- having signifcant increase in credit risk Disputed Trade Receivables- considered good Disputed Trade Receivables- credit impaired Disputed Trade Receivables- having signifcant increase in credit risk Total
Not due Less than 6 months 6 months- 1 year 1-2 Years 2-3 Years More than 3years	1,543.31 - - - - - 1,543.31 239.49 - - - - - 239.49 2.82 0.57 - - - - 3.39 - 2.43 - - - - 2.43 - 0.02 - - - - 0.02 - 1.62 - - 0.66 - 2.28
	1,785.62 4.64 - - 0.66 - 1,790.92

Outstanding for following periods from due date of payment	As at March 31, 2022
	Undisputed Trade Receivables- considered good Undisputed Trade Receivables- credit impaired Undisputed Trade Receivables- having signifcant increase in credit risk Disputed Trade Receivables- considered good Disputed Trade Receivables- credit impaired Disputed Trade Receivables- having signifcant increase in credit risk Total
Not due Less than 6 months 6 months- 1 year 1-2 Years 2-3 Years More than 3years	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

(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, 2023 are of 1,105.22 crores (Previous year: 756.96 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) At March 31, 2023, the carrying amount of the receivable from the Group’s most significant customer is 118.98 crores (Previous year: 113.21 crores).

(v) Refer Note 18.1 for information on trade receivables pledged as security by the group.

336 Annual Report 2022-23

Annual Report 2022-23 337

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

14 CASH AND CASH EQUIVALENTS

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As at As at
March 31, 2023 March 31, 2022
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Balances with Banks
Current accounts	151.63	228.70
Exchange earners foreign currency (EEFC) accounts	34.77	20.97
Deposit accounts with original maturity of three months or less *	420.78	200.00
Cash on hand	0.80	0.81
	607.98	450.48

*Also refer to note no.18

15 BANK BALANCES OTHER THAN ABOVE

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As at As at
March 31, 2023 March 31, 2022
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Earmarked balances - Margin money	1.44	1.95
- Unclaimed dividend accounts	6.83	6.72
Other deposit accounts
-Deposit accounts with original maturity beyond three months upto twelve months	0.21 8.48	0.20 8.87

16 SHARE CAPITAL

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As at As at
March 31, 2023 March 31, 2022
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Authorised share capital:
32,00,00,000 (Previous Year - 32,00,00,000)	320.00	320.00
Equity shares of`10 each
10,00,000 (Previous Year - 10,00,000)	10.00	10.00
Preference shares of`100 each
12,00,000 (Previous Year - 12,00,000)	6.00	6.00
Cumulative Preferences shares of`50 each
	336.00	336.00
Issued capital:
30,04,81,580 (Previous Year - 30,04,77,780)	300.48	300.48
Equity Shares of`10 each
Subscribed capital:
29,64,24,825 (Previous Year - 29,64,21,025)	296.42	296.42
Equity Shares of`10 each fully paid up
Add: Forfeited shares - Amount originally paid up	1.02	1.02
	297.44	297.44

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

16.1 Fully paid equity shares

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Number of shares Amount
----- End of picture text -----

Balance at March 31, 2021	5,92,45,205	59.24
Add : Movement duringtheyear*	23,71,75,820	237.18
Balance at March 31, 2022	29,64,21,025	296.42
Add : Movement during the year	3,800	^
(Also refer note 37 on "Employee Share Based Payments")
Balance at March 31, 2023	29,64,24,825	296.42

^ Amount in absolute : ` 38,000

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 previous year, Company had issued and allotted 23,69,80,820 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).

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.

During the year ended March 31, 2023, first interim dividend of 3.60 per share and second interim dividend of 3.60 per share were recognised as distributions to equity shareholders, aggregating 213.43 crores (Previous year: 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) aggregating 211.89 crores).

16.2 Details of equity shares held by the holding Company

	Number of fully paid ordinary shares
As at March 31, 2023
KAMA Holdings Limited, the Holding Company	14,96,45,000
As at March 31, 2022
KAMA Holdings Limited, the Holding Company	15,02,45,000

338 Annual Report 2022-23

Annual Report 2022-23 339

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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, 2023 As at March 31, 2022
	Number of shares held % holding in that class of shares Number of shares held % holding in that class of shares
Fully paid equity shares KAMA HoldingsLimited	14,96,45,000 50.48% 15,02,45,000 50.69%
Details of equity shares held by Promoters
Name of Promoter Number of fully paid equity shares held % holding in that class of shares % change during the year
As at March 31, 2023 1. KAMA Holdings Limited 14,96,45,000 50.48% (0.40)% 2. Mr. Arun Bharat Ram 1,37,500 0.05% - 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%

16.4 Details of equity shares held by Promoters

Also refer note 16.1 above

17 OTHER EQUITY

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As at As at
March 31, 2023 March 31, 2022
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General reserve	711.27	648.77
Retained earnings	8,726.97	6,785.77
Cash fow hedging reserve	(150.34)	34.49
Cost of hedging reserve Capital redemption reserve Capital reserve Debenture redemption reserve Foreign currency translation reserve Reserve for equity instruments through other comprehensive	4.74 10.48 193.77 - 15.75 (4.22)	0.51 10.48 193.77 62.50 23.07 (4.22)
income
Employee share based payment reserve	11.63	3.22
Securities premium	509.56	509.56
	10,029.61	8,267.92

17.1 General reserve

	As at March 31, 2023	As at March 31, 2022
Balance at beginning of year	648.77	648.77
Increase/(decrease) during the year	62.50	-
Balance at end ofyear	711.27	648.77

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

17.2 Retained earnings

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As at As at
March 31, 2023 March 31, 2022
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Balance at beginning of year	6,785.77	5,113.66
Proft for the year	2,162.34	1,888.92
Other comprehensive income arising from measurement of	(7.71)	(4.92)
defned beneft obligation* (Refer note 36.2 (iv))
Payments of dividend on equityshares	(213.43)	(211.89)
Balance at end ofyear	8,726.97	6,785.77

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 4.24 crores. (Previous year : 2.55 crores)

17.3 Cash flow hedging reserve

(Refer note 40.3.1 (C))

	As at March 31, 2023	As at March 31, 2022
Balance at beginning of year	34.49	7.53
Recognized/(released) during the year	(252.41)	39.99
Income tax related to above	67.58	(13.03)
Balance at end ofyear	(150.34)	34.49

17.4 Cost of hedging reserve

(Refer note 40.3.1 (C)

	As at March 31, 2023	As at March 31, 2022
Balance at beginning of year	0.51	3.13
Recognized/(released) during the year	5.02	(2.17)
Income tax related to above	(0.79)	(0.45)
Balance at end ofyear	4.74	0.51

340 Annual Report 2022-23

Annual Report 2022-23 341

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

17.5 Capital redemption reserve

	As at March 31, 2023	As at March 31, 2022
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, 2023	As at March 31, 2022
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.

17.7 Debenture redemption reserve

Balance at beginning of year	As at March 31, 2023 62.50	As at March 31, 2022 62.50
Increase/(decrease)duringtheyear	(62.50)	-
Balance at end ofyear	-	62.50

17.8 Reserve for equity instruments through other comprehensive income

	As at March 31, 2023	As at March 31, 2022
Balance at beginning of year	(4.22)	(4.22)
Increase/(decrease)duringtheyear	-	-
Balance at end ofyear	(4.22)	(4.22)

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

17.9 Exchange differences on translating financial statements of foreign operations

	As at March 31, 2023	As at March 31, 2022
Balance at beginning of year	23.07	21.77
Exchange diferences arising on translation of foreign operations	(7.32)	1.30
Balance at end of year	15.75	23.07

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, 2023 March 31, 2022
----- End of picture text -----

Balance at beginning of year	3.22	2.52
Increase/(decrease) during the year	8.41	10.93
Released on vesting of shares issued under employee share	-	(10.23)
purchase scheme
Balance at end of year	11.63	3.22

The Company has allotted equity shares to certain employees and officers 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 and officers 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, 2023 March 31, 2022
----- End of picture text -----

Balance at beginning of year	509.56	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 of year	509.56	509.56

342 Annual Report 2022-23

Annual Report 2022-23 343

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

18 BORROWINGS

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

As at As at
March 31, 2023 March 31, 2022
----- End of picture text -----

Non-current
Secured
Nil (Previous Year : 2,500 Nos.), 3 Months T-Bill + 188 bps,	-	250.00
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)	2,693.26	2,106.42
Term Loans from others*(Refer note 18.1.3)	109.52	141.07
Less: Current maturities of long term borrowings	(491.26)	(744.19)
	2,311.52	1,753.30
Current
Secured
Cash credits from banks (Refer note 18.1.4.(iv))	-	1.90
Term loan from Banks ^^ (Refer note 18.1.4.((ii))	210.00	-
Loans repayable on demand from banks (Refer note 18.1.4.((i)	480.29	191.93
and (iii))
Current maturities of long term borrowings	491.26	744.19
	1,181.55	938.02
Unsecured
Loans repayable on demand from banks	860.99	548.03
Commercial papers from banks and others #	-	300.00
	860.99	848.03
	2,042.54	1,786.05

Above amount of borrowings are net of upfront fees paid 7.35 crores (Previous year : 3.80 crores)

^ Out of a term loan of 616.57 crores obtained towards the end of the current year, unutilised balance of 370 crores as on March 31, 2023 has been temporarily invested in fixed deposit with a bank. (Previous Year: Out of a term loan of 227.91 crores obtained towards the end of the year, unutilised balance of 200 crores as on March 31, 2022 was temporarily invested in fixed deposit with a bank.)

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(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, 2023[#] 2022[#]
1 Nil (Previous Year : 2,500), - 250.00 Debentures were secured by hypothecation of 3 Months T-Bill + 188 bps, Listed, Company’s moveable properties, both present and Secured, Redeemable, Nonfuture, situated at Manali, Viralimalai (other than Convertible Debentures of the moveable assets of Coated Fabrics Business) and
face value of 10 lakhs each * Gummidipoondi in the State of Tamil Nadu, Jhiwana in
Terms and conditions the State of Rajasthan, Malanpur and Special Economic Zone, Indore in the State of Madhya Pradesh, Kashipur
a) Redeemable at face value in in the State of Uttarakhand (other than moveable
one single instalment at the end of 2[nd] year from the date assets of Laminated Fabrics Business) and Dahej in of allotment. the State of Gujarat (excluding certain assets). These
b) Coupon is payable on a debentures were repaid during the year and the charge was released.
b) Coupon is payable on a quarterly basis every year. was released.
2 (i) Term loan from Banks 1,988.70 1,463.21 Moveable property*
(a)(i) Out of the loans as at 2(i), loans aggregating to 1,988.70 crores (Previous Year – 1,008.83 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).

(a)(ii) Out of the loans as at 2(i), loans aggregating to Nil (Previous Year – ` 454.38 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

^^ Represents long term loan taken from a bank which is repayable in 18 quarterly instalments starting from June 2024. It has been classified as current due to certain terms/conditions specified in agreement with the bank allowing pre-closure of the loan at the option of the Company/bank.

The maximum amount due during the year was `500 crores (Previous year :` 500 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.

344

Annual Report 2022-23 345

Annual Report 2022-23

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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Details of Loan As at As at Security
March 31, March 31,
2023 [#] 2022 [#]
----- End of picture text -----

			(b)(ii) Out of the loans as at 2(b)(i)) loans aggregating
			to`188.83 crores (Previous Year –`289.09 crores)
			are additionally 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	402.25	412.98 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	309.51	233.70 Out of 2(iii), term loan of`84.13 crores (previous year
			`119.70 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`225.38 crores (previous
			year`114.00 crores) is to be charged against certain
			specifc Plant and machinery of Packaging flm Factory
			(SRF Industries (Thailand) Ltd).
3	Term loans from others	109.67	141.40 Loan of`109.67 crores (Previous Year :`141.40
			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 demand	381.97	158.30 Secured by hypothecation of stocks, stores and book
	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) Term loan from bank	210.00	- Secured by a frst pari passu charge over all the moveable fxed assets both present and future of SRF
			Altech Limited. Also refer footnote to note no.18
	(iii) Loans repayable on demand	98.32	33.63 Working capital facility is secured by pledge of 85% of
	from banks		the share capital of SRF Europe Kft held by SRF Global
			BV and pledge over receivables arising out of trade
			agreements
	(iv) Cash credit from banks	-	1.90 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

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 (previous year)

Gross of upfront fees paid `7.35 Crores (Previous year -` 3.80 Crores)

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

18.2 Terms of loans

As at March 31, 2023

NON CURRENT BORROWINGS

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

Loan Category Frequency Interest rate Up to Up to Up to From
of principal March 31, March 31, March 31, 2027 to
repayments 2024 2025 2026 2029
Term loans from Half yearly Ranging from 1.23% to 68.21 351.57 48.08 24.04
----- End of picture text -----

Term loans from	of principal repayments Half yearly	Ranging from 1.23% to	March 31, 2024 68.21	March 31, 2025 351.57	March 31, 2026 48.08	2027 to 2029 24.04
banks	instalment	3.25%
	Quarterly instalment	Ranging from 0.94% to
		5.75%	381.77	422.42	497.71	660.03
	Bullet payments	Floating rate: 5.45% as
		at March 31, 2023	-	246.63	-	-
Term loans from	Half year payments	Floating rate: 5.84% as
Others		at March 31,2023	43.83	43.83	22.01	-
			493.81	1,064.45	567.80	684.07

Amounts mentioned above are gross of upfront fees paid of ` 7.35 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 10.78%. Also refer footnote to note no. 18

As at March 31, 2022

NON CURRENT BORROWINGS

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

Loan Category Frequency Interest rate Up to Up to Up to From
of principal March 31, March 31, March 31, 2026 to
repayments 2023 2024 2025 2027
----- End of picture text -----

Redeemable	Redeemable at	Floating rate at	250.00	-	-	-
Non-Convertible	face value in one	5.63%
Debentures	instalment at the
	end of second year
Term loans from banks	Half yearly	Ranging from 1.23%
	instalment	to 2.35%	63.98	63.98	280.71	-
	Quarterly	Ranging from 0.41%
	instalment	to 5.85%	383.11	348.96	287.38	439.57
	Bullet payments	Ranging from 1.18%	15.00	-	227.19	-
		to 6.65%
Term loans from	Half year payments	Floating rate at	40.38	40.38	40.38	20.27
Others		1.46%
			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%

346 Annual Report 2022-23

Annual Report 2022-23 347

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

Terms of repayment

1) Rupee term loans of 140.63 crores are repayable in 9 quarterly instalments from April 2023 (Previous year: 203.13 crores repayable in 13 quarterly instalments from April 2022)
2) Foreign currency term loan of 188.83 crores are repayable in 8 quarterly instalments from May 2023 (Previous year: 265.87 crores are repayable in 12 quarterly instalments from May 2022).
3) Foreign currency term loan of 44.04 crores are repayable in 3 quarterly instalments from April 2023 (Previous year: 94.66 crores are repayable in 7 quarterly instalments from April 2022).
4) Foreign currency term loan of 109.67 crores are repayable in 5 half yearly instalments from April 2023 (Previous year: 141.40 crores are repayable in 7 half yearly instalments from April 2022).
5) Foreign currency term loan of 26.82 crores are repayable in 1 quarterly instalments in April 2023 (Previous year: 109.29 crores are repayable in 5 quarterly instalments from April 2022)
6) Foreign currency term loan of 287.57 crores are repayable in 2 half yearly instalments from September 2023 and then 12 monthly instalments from April 2024 onwards. (Previous year: 288.99 crores is repayable in 4 half yearly instalments from September 2022 and then 12 monthly instalments from April 2024 onwards.)
7) Foreign currency term loan of 246.63 crores are repayable in in one bullet instalment in March 2025 (Previous year: 227.19 crores are repayable in in one bullet instalment in March 2025)
8) Foreign currency term loan of 232.12 crores are repayable in 16 quarterly instalments from June 2023 (Previous year: 227.19 crores are repayable in 17 quarterly instalments from March 2023)
9) Foreign currency term loan of ` 205.52 crores are repayable in 16 quarterly instalments from February 2024 (Previous year: Nil)
10) Foreign currency term loan of ` 616.54 crores are repayable in 9 quarterly instalments from February 2025 (Previous year: Nil)
11) Foreign currency term loan of 402.27 crores are repayable in 14 quarterly instalments from June 2023 (Previous year : 412.98 crores are repayable in 18 quarterly instalments from June 2022).
12) Foreign currency term loan of ` 120.20 crores are repayable in 5 half yearly instalments from June 2024 (Previous year: Nil)
13) Foreign currency term loan of 84.14 crores are repayable in 4 half yearly instalments from September 2023 (Previous year : 119.70 crores are repayable in 6 half yearly instalments from September 2022).
14) Foreign currency term loan of 105.15 crores are repayable in 14 quarterly instalments from April 2023 (Previous year: 114.00 crores are repayable in 16 quarterly instalments from October 2022)
15) Rupee term loans from banks of 8.22 crores was repaid in the current year (Previous year: 8.22 crores repayable in 2 quarterly instalments from June 2022)
16) Redeemable non convertible debenture of 250 crores was repaid in the current year (Previous year: 250 crores repayable in one bullet instalment in September 2022)
17) Foreign currency term loan from banks of 23.67 crores was repaid in the current year (Previous year: 23.67 crores is repayable in 1 quarterly instalment in June 2022).
18) Foreign currency term loan from banks of 15.00 crores was repaid in the current year (Previous year: 15.00 crores is repayable in one bullet instalment in June 2022)

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

19 PROVISIONS

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As at As at
March 31, 2023 March 31, 2022
Non-Current
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Provision for employee benefts
Provision for compensated absence (Refer note 36.3) Provision for retention pay	53.49 0.17	46.08 0.17
Other employee benefts	7.14	5.33
	60.80	51.58
Current
Provision for employee benefts Provision for compensated absence (Refer note 36.3)	7.91	7.38
	7.91	7.38

20 TRADE PAYABLES

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As at As at
March 31, 2023 March 31, 2022
Total outstanding dues of micro enterprises and small enterprises [#]
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Total outstanding dues of micro enterprises and small enterprises#
- Acceptances*	5.33	3.61
- Other than acceptances Total outstanding dues of creditors other than micro enterprises	62.46	52.37
and small enterprises - Acceptances*	654.84	410.27
-Otherthanacceptances	1508.64	1,630.10
	2,231.27	2,096.35

Refer note 20.1

*The Group participates in a supply chain financing arrangement (SCF) which is disclosed under trade payables / other financial liabilities enabling suppliers to take early payment by selling their receivables from the group. The Group has not derecognised the original liabilities to which the arrangement applies because neither a legal release was obtained nor the original liability and the payment terms are modified on entering into the arrangement. The Group therefore discloses such amounts within trade payables / other financial liabilities because the nature and function of the financial liability remains same.

Ageing of Trade payables :

Outstanding for following periods from due date of payment	As at March 31, 2023
	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	67.79 1,540.50 - - 1,608.29 - 199.21 - - 199.21 - 0.40 - - 0.40 - 0.21 - - 0.21 - 1.31 - - 1.31 - 421.85 - - 421.85
	67.79 2,163.48 - - 2,231.27

348

349

Annual Report 2022-23

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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

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

As at As at
March 31, 2023 March 31, 2022
----- End of picture text -----

Amount remaining unpaid to suppliers under MSMED (suppliers)
as at the end of year
- Principal amount **	128.33	108.82
- Interest due thereon	0.01	-
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	0.01	-
- Interest remaining unpaid as at the end of the year	0.01	-
Interest remaining due and payable even in the succeeding years,	0.01	-
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, 2023

(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, 2023 March 31, 2022
----- End of picture text -----

Non Current
Derivatives carried at fair value through other comprehensive income
- Forward exchange contracts used for hedging	26.24	0.33
Payables to capital creditors
- Total outstanding dues of creditors other than micro
enterprises and small enterprises
Acceptances*	133.23	153.53
	159.47	153.86

Current
Interest accrued but not due on borrowings Unpaid dividends^ Security deposits received	14.80 6.83 7.64	4.47 6.72 8.15
Payables to capital creditors
- Total outstanding dues of micro enterprises and small enterprises#
Acceptances*	0.67	10.56
Other than acceptances	59.88	42.28
- Total outstanding dues of creditors other than micro enterprises
and small enterprises
Acceptances*	118.46	-
Other than acceptances	126.00	276.66
Derivatives carried at fair value through proft and loss
- Forward exchange contracts used for hedging	7.09	-
Derivatives carried at fair value through other comprehensive
income
- Forward exchange contracts used for hedging	35.05	5.03
Payable to banks towards early receipts from receivables sold	105.72	15.47
Others	3.42	2.36
	485.56	371.70

^ 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
Refer footnote to note no. 20

350 Annual Report 2022-23

Annual Report 2022-23 351

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

22 TAX ASSETS AND LIABILITIES

	As at March 31, 2023	As at March 31, 2022
Non Current tax assets
Advance tax(net ofprovisions for tax)	91.26	21.31
Current tax liabilities
Provisions for tax(net of advance tax)	14.63	14.20

23 OTHER LIABILITIES

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As at As at
March 31, 2023 March 31, 2022
----- End of picture text -----

Non-current
Deferredgovernmentgrants * ^	72.29	39.56
	72.29	39.56
Current
Contract liability (Refer note 41)	45.90	28.32
Statutory liabilities	34.44	60.95
Payable to gratuity trust (Refer note 36.2)	8.39	11.57
Deferred government grants*	1.74	1.77
Otherpayables	18.32	41.36
	108.79	143.97

The group had received financial assistance in earlier years 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 above grants had been recognised as deferred income and are amortised over the useful life of the property, plant and equipment in proportion in which the related depreciation expense is recognised.

The unamortised grant amount as on March 31, 2023 is 39.37 crores (Previous year : 41.33 crores).

^ Includes ` 34.66 crores (previous year: Nil) of grants related to duty saved on import of capital goods under the Exports Promotion Capital Goods (EPCG) scheme. This is being amortised in consolidated profit and loss as and when the criteria of meeting export obligation as mentioned in EPCG license is fulfilled. Under such scheme, the group is committed to export prescribed times of the duty saved on import of capital goods over a specified period of time.

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

24 REVENUE FROM OPERATIONS

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Year ended Year ended
March 31, 2023 March 31, 2022
----- End of picture text -----

Sale of products
Manufactured goods	14,210.14	12,138.37
Tradedgoods	381.68	174.38
	14,591.82	12,312.75
Other operating revenues
Claims	4.41	0.01
Export and other incentives	89.65	49.47
Scrap sales	58.39	48.11
Provision / liabilities no longer required written back	27.44	-
Material handling income	97.67	18.77
Other operatingincome	0.87	4.55
	278.43	120.91
	14,870.25	12,433.66

Reconciliation of revenue from sale of products with the contracted price

	Year ended March 31, 2023	Year ended March 31, 2022
Contracted price	14,794.13	12,421.10
Less: Discounts,allowances and claims	(202.31)	(108.35)
Sale ofproducts	14,591.82	12,312.75

25 OTHER INCOME

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Year ended Year ended
March 31, 2023 March 31, 2022
----- End of picture text -----

Interest Income
- from customers - on loans, deposits and investments - on others *	0.04 22.48 22.18	0.01 20.51 3.47
Net gain on sale/discarding of property, plant and equipment	6.00	2.90
Net gain on fnancial assets measured at fair value through proft	9.10	7.06
and loss
Net foreign currency exchange fuctuation gains	-	72.71
Other non-operatingincome	15.13	8.84
	74.93	115.51

Refer note 31 (iii)

352 Annual Report 2022-23

Annual Report 2022-23 353

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

26.1 COST OF MATERIALS CONSUMED

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Year ended Year ended
March 31, 2023 March 31, 2022
Opening stock of raw materials 1,058.18 683.36
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Opening stock of raw materials	1,058.18	683.36
Add: Purchases of raw materials	7,169.62	6,545.92
	8,227.80	7,229.28
Less:Closing stockof raw materials	1,102.59	1,058.18
Cost of materials consumed*	7,125.21	6,171.10

Including packing material

26.2 PURCHASES OF STOCK IN TRADE

Year ended March 31, 2023 Year ended March 31, 2022
Purchase of stock in trade ^ 277.22 175.59
277.22 175.59

^Previous year figure includes ` 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

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Year ended Year ended
March 31, 2023 March 31, 2022
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Inventories at the end of the year:
Stock-in-Process	239.56	237.41
Finished goods	476.19	535.44
Traded goods	95.71	27.39
	811.46	800.24
Efect of changes in exchange currency rates
Stock-in-Process	1.71	(0.46)
Finished goods	2.70	0.82
Traded goods	(2.11)	0.75
	2.30	1.11
Inventories at the beginning of the year:
Stock-in-Process	237.41	176.47
Finished goods	535.44	338.59
Traded goods	27.39	4.32
	800.24	519.38
Net (increase) / decrease	(8.92)	(279.75)

27 EMPLOYEE BENEFITS EXPENSES

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Year ended Year ended
March 31, 2023 March 31, 2022
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Salaries and wages, including bonus	671.16	618.82
Contribution to provident and other funds	48.87	45.46
Workmen and staf welfare expenses	85.01	87.11
Share based payment expense (Refer note 37)	8.76	28.61
	813.80	780.00

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

28 FINANCE COST

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Year ended Year ended
March 31, 2023 March 31, 2022
----- End of picture text -----

Interest cost^
- Non convertible debentures	7.33	13.23
- Term loans and others	142.65	61.74
- Lease liabilities	8.99	8.69
Other borrowing costs	21.00	17.86
Exchange diferences regarded as an adjustment to borrowing	24.85	14.41
cost
	204.82	115.93

^ pertains to liabilities measured at amortised cost. The amount disclosed is net of interest capitalised during the year. Also, refer note no. 4 (i)

29 DEPRECIATION AND AMORTISATION EXPENSE

	Year ended March 31, 2023	Year ended March 31, 2022
Depreciation of property, plant and equipment	538.72	484.64
Amortisation of intangible assets	9.04	8.16
Depreciation of Right of use assets	27.56	24.43
	575.32	517.23

30 OTHER EXPENSES

	Year ended March 31, 2023	Year ended March 31, 2022
Credit impaired assets provided / written of ^^	2.56	0.95
Labour production	71.75	70.63
Directors' sitting fees	0.41	0.66
Expenditure on corporate social responsibility**	28.63	19.06
Property, plant and equipment provided/ written of ^	3.87	11.48
Freight charges	610.24	547.78
Insurance	63.83	47.66
Power and fuel	1,472.25	1,135.56
Legal and professional charges	46.14	40.98
Rates and taxes	10.01	19.76
Rent***	39.66	30.36
Repairs and maintenance
- Buildings	9.00	9.11
- Plant and machinery	221.59	201.53
- Other maintenance	53.04	43.23
Selling commission	41.28	35.73
Stores and spares consumed	85.04	81.80
Travelling and conveyance	21.12	12.48

354 Annual Report 2022-23

Annual Report 2022-23 355

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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Year ended Year ended
March 31, 2023 March 31, 2022
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Auditor remuneration#
- Audit Fees	2.07	1.52
- For limited review of unaudited fnancial results	0.97	0.97
- For Corporate governance and other certifcates	0.10	0.10
- For tax audit	0.10	0.08
- Reimbursement of out of pocket expenses	0.17	0.15
Exchange currency fuctuation (net)	104.00	-
Efuent disposal expenses	181.84	121.99
Miscellaneous expenses	64.07	49.95
	3,133.74	2,483.52

** Refer to note- 47(d)

*** Refer to note- 43

including fees paid to auditors of subsidiary companies

^ including amount of Nil (previous year: 5.75 crores) recognised on fair valuation of assets classified as held for sale. Also Refer note 42.

^^ including amount of 0.67 crore written off during the year (previous year: 2.43 crores utilised against provision).

31 INCOME TAX RECOGNISED IN PROFIT AND LOSS

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Year ended Year ended
March 31, 2023 March 31, 2022
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Tax expense	661.65	696.63
	661.65	696.63
Current tax
In relation to current year	650.43	657.53
Adjustment in relation to earlieryears	(35.55)	-
	614.88	657.53
Deferred tax
- MAT credit entitlement (Refer notes ((ii) and (iv) below)
In relation to current year	(74.02)	-
Adjustment in relation to earlieryears	(20.11)	(25.27)
	(94.13)	(25.27)
- Others
In relation to current year	134.76	56.41
Adjustment in relation to earlieryears	6.14	7.96
	140.90	64.37

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

The income tax expenses for the year can be reconciled to the accounting profits as follows:

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Year ended Year ended
March 31, 2023 March 31, 2022
Profit before tax 2,823.99 2,585.55
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Proft before tax	2,823.99	2,585.55
Income Tax Expenses @ 34.944% (Previous year @ 34.944%)	986.82	903.50
Efect of deductions (research and development, share issue	(126.53)	(79.28)
expenses and deductions under Chapter - VIA of Income Tax Act)
Efect of expenses that are not deductible in determining taxable profts	10.97	13.28
Efect of lower tax rate on certain temporary diferences pursuant	(55.83)	(21.59)
to Section 115BAA of Income tax act.
Recognition of MAT credit previously written of (refer note (iv)	(74.02)	-
below)
Efect of Nil tax/exemption of overseas subsidiaries	(10.06)	(34.13)
Efect of additional expenses deductible in subsidiaries	-	(6.89)
Efect of lower tax rates in overseas subsidiaries	(17.74)	(61.82)
Others	(2.44)	0.88
Income tax expenses recognised in proft and loss in	711.17	713.94
relation to current year
Income tax expenses recognised in proft and loss in relation to	(49.52)	(17.31)
earlier years (Refer notes below)
Total Income tax expenses recognised in proft and loss	661.65	696.63

Notes:

(i) The tax rate used for the current year reconciliation above is the corporate tax rate of 34.944% (2022: 34.944%) payable by corporate entities in India on taxable profits under the Indian tax law.
(ii) Previous year figures of Income tax in relation to earlier years includes tax credit of ` 15.42 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.
(iii) During the year, the Company has received a favourable income tax assessment order pertaining to a prior year. Based on the order, the Company has recognised interest income of 20.15 crores as other income and has written back 32.17 crores as ‘Adjustment in relation to earlier years’ in the consolidated statement of profit and loss. Tax adjustments, if any, in relation to the pending assessments for certain other years, and involving a similar matter, will be considered in the periods in which a requisite level of certainty is achieved.
(iv) As per the relevant accounting standards, the Company continues to reassess its MAT utilization and its recognition. Basis current profitability and reassessment of certain tax positions, the Company has recognized an additional MAT credit of 94.13 crores (including 74.02 crores which was previously written off during the year 2020-21), and the same has also been utilised in current financial year.

356 Annual Report 2022-23

Annual Report 2022-23 357

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

32 INCOME TAX RECOGNISED IN OTHER COMPREHENSIVE INCOME

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Year ended Year ended
March 31, 2023 March 31, 2022
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||||
|---|---|---|
|Arising on income and expense recognised in other|
|comprehensive income|
|Net (gain)/ loss on designated portion of hedging instruments in|67.58|(13.03)|
|cash flow hedges|
|Cost of hedging reserve|(0.79)|(0.45)|
|Remeasurement of defined benefit obligation|4.24|2.55|
|71.03|(10.93)|
|Bifurcation of the income tax recognised in other|
|comprehensive income into:|
|Items that will be reclassified to profit or loss|66.79|(13.48)|
|Items that will not be reclassified to profit or loss|4.24|2.55|
|71.03|(10.93)|

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33 CONTINGENT LIABILITIES

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As at As at
March 31, 2023 March 31, 2022
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||||
|---|---|---|
|a|Claims against the group not acknowledged as debts:|
|Goods and Services tax, excise duty, custom duty and|7.38|8.39|
|service tax |
|Sales tax and entry tax |15.60|19.17|
|Income Tax |304.78|22.26|
|Others**|11.01|11.27|

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Amount deposited against contingent liability 1.20 crores (Previous year: 1.23 crores)
**
Amount deposited against contingent liability 6.74 crores (Previous year: 6.74 crores)
*** Amount deposited against contingent liability 59.68 crores (Previous year: 2.98 crores). Contingent liability for the current year includes:
(i) Assessment / rectification orders received for assessment years 2017-18 and 2018-19 in which adjustments amounting to 277.31 crores and 167.43 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 11.03 crores was raised. These orders have a tax implication of 95.97 crores and 57.94 crores respectively (primarily due to reduction in MAT credit entitlement eligible for accumulation / subsequent utilization). The Company has filed appeal before Income Tax Appellate Tribunal against the said orders. Pursuant to a direction of the Hon’ble Delhi High Court, the Department of Scientific and Industries Research (DSIR) has approved the said R&D expenditure for which rectification is pending before Assessing Officer. 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.
(ii) Intimation order u/s 143(1) received for assessment year 2021-22 in which adjustments of 307.03 crores have been made with a corresponding demand of 130.74 crores. Also a refund of ` 56.91 crores for different assessment years has been adjusted against the said demand. In view of the Company, these adjustments are technical errors for which the Company has filed rectification application before Assessing Officer and an appeal before CIT(Appeals). 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.
**** Amount deposited against contingent liability 9.05 crore (Previous year: 0.42 crore). Contingent liability includes demand by Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Ltd. (MPPKVV Ltd) of 8.73 crores (Previous year: 8.12 crores).

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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 group.
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 18.59 crores (Previous year: 18.86 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.
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.

34 CAPITAL AND OTHER COMMITMENTS

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|||||
|---|---|---|---|
|As at|As at|
|March 31, 2023|March 31, 2022|
|(i)|Estimated amount of contracts remaining to be executed on|762.77|960.57|
|capital account and not provided for (net of advances)|

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(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, and EPCG scheme on import of capital items remaining outstanding is 1,397.68 crores (Previous year: 721.78 crores).

35 RELATED PARTY TRANSACTIONS

35.1 Description of related parties under Ind AS- 24 “Related party disclosures“

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||||
|---|---|---|
|Ultimate holding entity|Key management personnel (KMP)|[#]|
|ABR Family Trust|Arun Bharat Ram|
|Ashish Bharat Ram|
|Holding Company|Kartik Bharat Ram|
|KAMA Holdings Limited|Tejpreet S Chopra|
|Lakshman Lakshminarayan|
|Fellow subsidiaries|[#]|Vellayan Subbiah|
|KAMA Realty (Delhi) Limited|Meenakshi Gopinath|
|Shri Educare Limited|Pramod Gopaldas Gujarathi|
|SRF Transnational Holding Limited|Bharti Gupta Ramola|
|Yash Gupta|
|Puneet Yadu Dalmia|
|Raj Kumar Jain *|

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358

359

Annual Report 2022-23

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

Post employment benefit plans trust[#] SRF Limited Officers Provident Fund Trust SRF Employees Gratuity Trust SRF Officers Gratuity Trust

Enterprises over which KMP have control or joint control[# ]

BLP Industry AI Private Limited Parry Enterprises India Limited *

SRF Foundation

SRF Welfare Trust

Enterprises over which KMP have significant influence[#] Havells India Limited **

Relatives of KMP[#]

Relatives of KMP of Holding Company[#]

Sushil Ramola Murugappan Vellayan Subbiah Deeksha Amit Kalyani ^^ Salil Gupta ^^ Arun Bharat Ram^

Nirmala Kothari Meher Kaur Rikhy ^^ Palak Maheshwari ^^

Enterprises over which relative of KMP has control or joint control[#] Murugappa & Sons

KMP of Holding Company[#]

Ekta Maheshwari

Jagdeep Singh Rikhy *** Amitav Virmani ^^

Only with whom the Company had transactions during the year

Upto August 31, 2021

** Upto March 31, 2022

*** From December 03, 2021 ^^ From August 18, 2022 ^ From April 01, 2022 * From May 09, 2022 From June 15, 2022 **** From April 06, 2022

35.2 Transactions with related parties

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Year ended Year ended
March 31, 2023 March 31, 2022
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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	15.26	-
Enterprises over which KMP have control orjoint control	-	0.04
	15.26	0.04
Purchase of goods from
Enterprises over which KMP have signifcant infuence	6.00	-
	6.00	-

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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Year ended Year ended
March 31, 2023 March 31, 2022
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Advance Given to
Enterprises over which KMP have control orjoint control	0.24	-
	0.24	-
Rent paid
Fellow Subsidiaries	6.56	6.60
Key management personnel	0.05	0.26
Relative of KMP	0.21	-
Enterprises over which KMP have control orjoint control	0.27	0.27
	7.09	7.13
Reimbursement of expenses from
Holding Company	0.02	0.01
Fellow Subsidiaries	0.05	0.04
Enterprises over which KMP have control orjoint control	0.01	-
	0.08	0.05
Receiving of Services from :
Relative of KMP	0.60	-
Enterprises over which KMP have control orjoint control	0.64	0.19
	1.24	0.19
Deposits received back from
Key management personnel	-	0.01
Fellow Subsidiaries	0.03	-
	0.03	0.01
Contribution for expenditure on corporate social
responsibility
Enterprises over which KMP have control orjoint control	28.23	21.38
	28.23	21.38
Contribution to post employment beneft plans Post employment beneftplans trust	43.69	30.20
	43.69	30.20
Employee beneft obligations transferred to
Fellow Subsidiaries	-	0.20
	-	0.20
Equity dividend paid
Holding Company	107.96	107.43
Key management personnel	0.05	0.15
Relatives of KMP	0.24	0.11
KMP of Holding Company	^^	^^
Relatives of KMP of Holding Company	^	^
Enterprises over which relative of KMP has control orjoint control	^^^	^^^
	108.25	107.69

360 Annual Report 2022-23

Annual Report 2022-23 361

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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Year ended Year ended
March 31, 2023 March 31, 2022
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^ Amount in absolute`814 (Previous year :`358)
^^ Amount in absolute`9,882 (Previous year :`1,095)
^^^ Amount in absolute`37,224 (Previous year :`36,966)
Bonus shares issued
Holding Company (No. of shares : Nil ; previous year : 12,01,96,000)	-	-
Key management personnel (No. of shares : Nil ; previous year :	-	-
1,78,968)
Relatives of KMP (No. of shares : Nil ; previous year : 1,10,388)	-	-
KMP of Holding Company (No. of shares : Nil ; previous year : 76)	-	-
Relatives of KMP of Holding Company (No. of shares : Nil ;	-	-
previous year : 40)
Enterprises over which relative of KMP has control or joint control	-	-
(No. of shares : Nil ; previous year : 4,136)
	-	-

35.3 Outstanding Balances:

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As at As at
March 31, 2023 March 31, 2022
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Commission payable
Keymanagementpersonnel	17.16	18.90
	17.16	18.90
Receivable
Enterprises over which KMP have signifcant infuence	2.22	-
Post employment beneftplans trust	1.31	11.48
	3.53	11.48
Payable Enterprises over which KMP have signifcant infuence	0.44	-
Post employment beneftplans trust	9.86	13.30
	10.30	13.30
Security deposits outstanding
Fellow Subsidiaries	3.24	3.27
Key management personnel Relatives of KMP Enterprises over which KMP have control orjoint control	0.01 0.11 0.14 3.50	0.12 - 0.14 3.53

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

35.4 Key management personnel compensation

	Year ended March 31, 2023	Year ended March 31, 2022
Short-term benefts * Post-employment benefts Other long-term benefts	36.03 8.60 3.40	34.88 2.15 1.19
	48.03	38.22

Includes sitting fees and commission paid/ payable to non executive directors

The above transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions.

36 EMPLOYEE BENEFITS

36.1 Defined contribution plans:

Amounts recognized in the consolidated statement of profit and loss are as under:

Indian entities	Year ended March 31, 2023	Year ended March 31, 2022
Superannuation fund (Refer to note (i) below)	0.45	0.59
Provident fund administered through Regional Provident Fund	16.73	15.11
Commissioner (Refer to note (ii) below)
Employees’ State Insurance Corporation	0.30	0.40
National Pension Scheme	2.36	1.71
	19.84	17.81

Foreign subsidiaries Year ended March 31, 2023 Year ended March 31, 2022
Contribution to provident fund 1.70 1.47
Skill, development and Social Security Fund 4.17 4.87
Pension fund 1.54 1.63
7.41 7.97

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.

362 Annual Report 2022-23

363

Annual Report 2022-23

CORPORATE OVERVIEW STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(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 recognized provident fund trust.
(c) Legal Severance pay & Health care (Unfunded) as applicable with respect to foreign entities
(i) These plans typically expose the group 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

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.

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(ii) The principal assumption used for the purpose of the actuarial valuation were as follows:

Indian entities	As at March 31, 2023 As at March 31, 2022	As at March 31, 2023 As at March 31, 2022
	Gratuity Provident Fund Gratuity Provident Fund
Discount Rate Expected statutory interest rate Salary increase Retirement Age (years) Mortality Rates Withdrawal Rate Upto 30 years 31 to 44 years Above 44 years	7.35% 7.35% 7.16% 7.16% - 8.15% - 8.10% 8.00% - 8.00% - 58.00 58.00 58.00 58.00 IALM (2012-14) IALM (2012-14) IALM (2012-14) IALM (2012-14) 20.00% 20.00% 20.00% 20.00% 7.00% 7.00% 7.00% 7.00% 8.00% 8.00% 8.00% 8.00%

Foreign subsidiaries		Legal Severance Pay (unfunded)
		As at March 31, 2023 As at March 31, 2022
Discount Rate Salary increase In service mortality Retirement Age Withdrawal Rate - up to 20 years - 21-30 - 31-40 - 41-50 - 51 onwards		2.92% 3.18% 7.00% 6.35% TMO TMO 2017 2017 55 55 17% 16% 17% 16% 7% 7% 4% 3% 2% 2%

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.

364 Annual Report 2022-23

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CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(iii) Amounts recognized in statement of profit an loss in respect of these benefit plans are as follows:

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Indian entities Year ended Year ended
March 31, 2023 March 31, 2022
Gratuity Provident Fund Gratuity Provident Fund
Current Service cost 10.17 7.91 9.09 7.73
Interest expenses (net of 0.84 - 0.30 -
expected return on plan
assets)
11.01 7.91 9.39 7.73
Foreign subsidiaries Legal Severance Pay (unfunded)
Year ended Year ended
March 31, 2023 March 31, 2022
Current/past Service cost 1.42 1.10
Net interest expenses 0.18 0.12
1.60 1.22
----- 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 Actuarial (gain)/losses on plan assets Actuarial (gain)/losses arising from changes in fnancial assumptions Actuarial (gain)/losses arising from changes in experience adjustments	Gratuity
	Year ended March 31, 2023 Year ended March 31, 2022
	2.33 (0.31) (1.58) 3.71 11.40 3.90
	12.15 7.30

Foreign subsidiaries Actuarial (gain)/losses arising from changes in fnancial assumptions Actuarial (gain)/losses arising from changes in experience adjustments and demographic assumption	Legal Severance Pay (unfunded)
	Year ended March 31, 2023 Year ended March 31, 2022
	0.59 (0.23) (0.79) 0.40
	(0.20) 0.17

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(v) The amount included in consolidated balance sheet arising from the entity’s obligation in respect of its defined benefit plans is as follows:

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Indian entities As at March 31, 2023 As at March 31, 2022
Gratuity Provident Fund Gratuity Provident Fund
Present value of funded 127.85 178.30 107.45 155.50
defined benefit obligation
Fair value of plan assets 119.30 180.00 95.88 157.64
Surplus / (deficit) (8.55) 1.70 (11.57) 2.14
Effect of asset ceiling, if any - (1.70) - (2.14)
Net assets / (liability) (8.55) - (11.57) -
Foreign subsidiaries Legal Severance Pay (unfunded)
As at As at
March 31, 2023 March 31, 2022
Present value of defined benefit obligation 6.97 5.33
Fair value of plan assets - -
Net asset / (liability) (6.97) (5.33)
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(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, 2023 As at March 31, 2022
Gratuity Provident Fund Gratuity Provident Fund
Opening defined benefit 107.45 155.50 98.72 158.91
obligation
----- End of picture text -----

Opening defned beneft obligation	107.45	155.50	98.72	158.91
Current Service Cost	10.17	7.91	9.09	7.73
Interest Cost	7.70	12.99	6.60	12.42
Actuarial (gain)/losses arising from changes in fnancial assumptions	(1.58)	-	3.71	-
Actuarial (gain)/losses arising	11.40	-	3.90	-
from changes in experience
adjustments
Benefts paid	(7.29)	(15.42)	(14.57)	(39.82)
Contribution by plan	-	10.21	-	12.72
participants / employees
Settlement / transfer in /out	-	7.11	-	3.54
Closing defned beneft obligation	127.85	178.30	107.45	155.50

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STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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Foreign subsidiaries Legal Severance Pay (unfunded)
As at As at
March 31, 2023 March 31, 2022
Opening defined benefit obligation 5.33 4.14
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Opening defned beneft obligation	5.33	4.14
Current Service Cost	1.42	1.10
Interest Cost	0.18	0.12
Actuarial (gain)/losses arising from changes in fnancial	0.59	(0.23)
assumptions
Actuarial (gain)/losses arising from changes in experience	(0.79)	0.40
adjustments and demographic assumption
Exchange diference on foreign plans Beneftspaid/Settled Closing defned beneft obligation	0.36 (0.12) 6.97	(0.10) (0.10) 5.33

(vii) Movements in the fair value of plan assets are as follows:

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Indian entities As at March 31, 2023 As at March 31, 2022
Gratuity Provident Fund Gratuity Provident Fund
----- End of picture text -----

Opening fair value of plan assets	95.88	157.64	94.20	157.71
Return on plan assets	4.53	12.55	6.62	15.76
(excluding amounts included in
net interest expenses)
Contributions from employer	26.18	7.91	9.63	7.73
Contributions from plan	-	10.21	-	12.72
participants
Benefts paid	(7.29)	(15.42)	(14.57)	(39.82)
Settlement/Transfer in	-	7.11	-	3.54
Closing fair value of plan	119.30	180.00	95.88	157.64
assets

Gratuity :

Plan assets comprises primarily of investment in HDFC Group Unit Linked Plan fund. The average duration of the defined benefit obligation is 9.07 years (Previous year: 9.12 years). The Company expects to make a contribution of 11.64 Crores (Previous year: 10.58 Crores) to the defined benefit plans during the next financial year.

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(viii) Sensitivity Analysis

Indian entities	Year ended March 31, 2023 Year ended March 31, 2022
	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	(4.01) 4.26 (3.54) 3.77 4.21 (4.01) 3.72 (3.53) (0.01) 0.01 (0.01) 0.01

Foreign subsidiaries	Year ended March 31, 2023 Year ended March 31, 2022
	1% increase 1% decrease 1% increase 1% decrease
Sensitivity analysis of Legal Severance Pay Discount rate Expected salary growth	(0.67) 0.78 (0.54) 0.63 0.72 (0.63) 0.59 (0.51)

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”

	Year ended March 31, 2023 Compensated absences 13.66	Year ended March 31, 2022 12.26
	13.66	12.26

Provident fund:

The plan assets comprises the following securities :

	As at March 31, 2023	As at March 31, 2022
Government bonds	56.15%	55.33%
Public sector bonds	35.19%	35.09%
Other equityand mutual funds	8.66%	9.58%

(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, 2023

(All amounts in ` Crores, unless otherwise stated)

37 EMPLOYEE SHARE BASED PAYMENTS

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, 2023 March 31, 2022
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Number of equity shares: (i) At the beginning of the year (ii) Impact of bonus issue of shares (Refer to note 16.1) (iii) Granted during the year * (iv) Released during the year ^ (v) At the end of the year	1,95,000 - 3,800 - 1,98,800	60,000 2,40,000 1,95,000 (3,00,000) 1,95,000
Market price on the grant date (`per equity share)	2,320.95	2,126.05
Exercise price (`per equity share)	10.00	10.00
Fair value of share based payment (`per equity share)	2,310.95	2,116.05
Share basedpayment expense recognised duringtheyear ^ **	8.76	28.61

Shares granted during the current year have a lock in period upto August 21, 2023 and those granted during the previous year had lock in period upto November 30, 2022. These shares are pledged for a period upto October 31, 2026.

^ During the previous year, the Nomination and Remuneration Committee based upon the recommendations of the management, released 3,00,000 equity shares from pledge, resulting into immediate vesting of these shares. As a result, an additional amount of ` 6.72 crores had been recognised in consolidated statement of profit and loss in previous year.

**Includes amount of ` 0.35 crore (previous year -17.50 crores) towards withholding tax on equity shares granted under the above scheme.

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, polypropylene films and aluminium foil.
Others: include coated fabric, laminated fabric and other ancillary activities.

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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.

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.

A. Information about operating business segments

	Year ended March 31, 2023	Year ended March 31, 2022
Segment revenue
a) Technical textiles business (TTB)
- External sales	1,891.25	2,073.33
- Inter-segment sales	2.63	11.91
Total	1,893.88	2,085.24
b) Chemicals business (CB)
- External sales	7,410.88	5,240.78
-Inter-segment sales	-	-
Total	7,410.88	5,240.78
c) Packaging flms business (PFB)
- External sales	5,175.51	4,779.21
-Inter-segment sales	7.24	-
Total	5,182.75	4,779.21
d) Others
- External sales	392.61	340.34
-Inter-segment sales	-	-
Total Total segment revenue	392.61 14,880.12	340.34 12,445.57
Less: Inter Segment revenue	9.87	11.91
Revenue from operations	14,870.25	12,433.66
Add: unallocable income	74.93	115.51
Total revenue	14,945.18	12,549.17

370

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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Year ended Year ended
March 31, 2023 March 31, 2022
Segment Profits
Profit before interest and tax from each segment
----- End of picture text -----

Segment Profts Proft before interest and tax from each segment
a) Technical textiles business (TTB)	261.74	471.43
b) Chemicals business (CB)	2,340.67	1,396.91
c) Packaging flms business (PFB)	556.19	946.33
d) Others	34.82	20.35
Total segment results	3,193.42	2,835.02
Less: i) Interest and fnance Charges	204.82	115.93
Less: ii) Other unallocable expenses net of income	164.61	133.54
Proft before tax Capital Expenditure	2,823.99	2,585.55
a) Technical textiles business (TTB)	134.03	63.43
b) Chemicals business (CB)	2,146.11	1,296.56
c) Packaging flms business (PFB)	513.00	637.06
d) Others	2.46	1.66
e) Unallocated	20.18	8.38
Total	2,815.78	2,007.09
Depreciation and amortisation
a) Technical textiles business (TTB)	41.07	39.97
b) Chemicals business (CB)	334.80	303.59
c) Packaging flms business (PFB)	177.79	153.31
d) Others	6.96	7.53
e) Unallocated	14.70	12.83
Total	575.32	517.23

Segment assets and liabilities

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As at As at
March 31, 2023 March 31, 2022
----- End of picture text -----

Segment Assets
a) Technical textiles business (TTB)	1,754.44	1,818.01
b) Chemicals business (CB)	9,734.26	7,193.65
c) Packaging flms business (PFB)	5,800.54	5,633.10
d) Others	164.98	174.94
Total	17,454.22	14,819.70
Unallocable assets	1,300.30	953.91
Assets classifed as held for sale	-	3.00
Total Assets	18,754.52	15,776.61
Segment Liabilities
a) Technical textiles business (TTB)	391.76	416.95
b) Chemicals business (CB)	1,352.16	950.33
c) Packaging flms business (PFB)	1,284.12	1,449.62
d) Others	52.53	37.02
Total	3,080.57	2,853.92
Unallocable Liabilities	5,346.90	4,357.33
Total Liabilities	8,427.47	7,211.25

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

B. Information about geographical business segments

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Year ended Year ended
March 31, 2023 March 31, 2022
Revenue from operations
- India 5,996.99 5,259.57
- USA 2,170.63 1,440.87
- South Africa 656.91 603.51
- United Kingdom 448.15 357.61
- Italy 212.84 229.50
- Indonesia 189.42 217.15
- UAE 170.84 124.48
- South Korea 161.25 147.21
- Germany 491.99 462.74
- Thailand 535.03 353.74
- Hungary 29.69 27.66
- Switzerland 877.46 827.37
- Belgium 871.88 528.32
- Others 2,057.17 1,853.93
14,870.25 12,433.66
Year ended Year ended
March 31, 2023 March 31, 2022
Non current segment assets
Within India 10,012.87 7,938.51
Outside India 2,739.60 2,391.47
12,752.47 10,329.98
----- End of picture text -----

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 2022-23 and 2021-22

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Revenue from major products Year ended Year ended
March 31, 2023 March 31, 2022
a) Technical Textiles Business (TTB)
----- End of picture text -----

a)	Technical Textiles Business (TTB)
	Nylon tyre cord fabric/ Polyester tyre cord fabric / Belting	1,630.11	1,880.90
	fabric
	Synthetic flament yarn including Industrial yarn /Twine	233.33	165.78
	Waste/others	0.84	5.16
b)	Chemicals Business (CB)
	Speciality chemicals	4,164.95	3,100.32
	Fluorochemicals, Refrigerant Gases and allied products	2,641.87	1,724.06
	Industrial chemicals	429.50	350.65
	Waste/others	0.25	0.01
c)	Packaging Films Business (PFB)
	Packaging Films	5,103.52	4,749.26
d)	Others
	Coated fabric, laminated fabric and other ancillary activities	387.45	336.61
		14,591.82	12,312.75

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

39 EARNINGS PER SHARE (EPS)

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Year ended Year ended
March 31, 2023 March 31, 2022
Profit attributable to equity holders of the group used in calculating 2,162.34 1,888.92
----- End of picture text -----

Proft attributable to equity holders of the group used in calculating	2,162.34	1,888.92
basic earning per share and diluted earning per share:
Weighted average number of equity shares of the company used	29,64,23,669	29,63,06,696
in calculating basic earning per share and diluted earning per
share (nos.)
Basic and diluted earningsper share of face value`10 each *	72.95	63.75

During the previous year, Company had issued and allotted 23,69,80,820 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 had been calculated based on the weighted average number of shares outstanding in the 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 up to 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.

The following table provides the details of the debt and equity at the end of the reporting periods :

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

As at As at
March 31, 2023 March 31, 2022
----- End of picture text -----

Debt and lease liabilities	4,477.53	3,655.19
Less:
Cash and cash equivalents	607.98	450.48
Deposits accounts with maturity beyond three months up to	0.21	0.20
twelve months
Current investments	490.05	316.74
Net debt	3,379.29	2,887.77
Total equity	10,327.05	8,565.36
Net debt to equity ratio	0.33	0.34

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

40.2 Financial instruments by category

Financial assets Level of hierarchy Notes	Carrying value Fair value
	As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022
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	1,785.62 1,792.45 1,785.62 1,792.45 607.98 450.48 607.98 450.48 8.48 8.87 8.48 8.87 55.84 23.52 55.84 23.52 302.06 238.02 302.06 238.02
	2,759.98 2,513.34 2,759.98 2,513.34
Measured at Fair value through proft and loss Investments in mutual funds and bonds/debentures 2 d Derivative instruments 2 d	490.05 316.74 490.05 316.74 0.10 3.64 0.10 3.64
	490.15 320.38 490.15 320.38
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 0.89 124.69 0.89 124.69
	5.05 128.85 5.05 128.85

Financial liabilities Level of hierarchy Notes	Carrying value Fair value
	As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022
Measured at amortised cost Borrowings a,c Trade Payables a Other fnancial liabilities a,b	4,354.06 3,539.35 4,320.89 3,539.35 2,231.27 2,096.35 2,231.27 2,096.35 576.65 520.20 576.65 520.20
	7,161.98 6,155.90 7,128.81 6,155.90
Measured at Fair value through proft and loss Derivative instruments 2 d	7.09 - 7.09 -
	7.09 - 7.09 -
Measured at Fair value through other comprehensive income Derivative instruments 2 d	61.29 5.36 61.29 5.36
	61.29 5.36 61.29 5.36

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

The following methods / assumptions are 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 and financial liabilities 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, 2023 and March 31, 2022

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:

(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 quoted forward exchange rates at the balance sheet date.

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(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 measurements Unlisted equity
instruments
----- End of picture text -----

	As at March 31, 2021	4.16
	Purchases of investment As at March 31, 2022 Purchases of investment	- 4.16 -
	As at March 31, 2023	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 Chairman and 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 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 / Chairman and 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.

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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:

	Assets Liabilities Net assets/ (liabilities)
	As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022
USD EUR JPY GBP	788.95 983.61 3,524.47 2,346.96(2,735.52) (1,363.35) 569.23 283.94 963.05 846.24 (393.82) (562.30) - - 10.70 6.33 (10.70) (6.33) 17.71 21.56 5.63 0.01 12.08 21.55

Foreign currency sensitivity analysis

The group is mainly exposed to changes in USD, EURO, JPY and GBP exchange 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 foreign currency denominated monetary items as tabulated above and adjusts their translation at the period end for 1% change in foreign currency rates. This analysis assumes that all other variables, in particular interest rates, remain constant. A positive number below indicates an increase in profit before tax or vice-versa.

	Year ended March 31, 2023 Year ended March 31, 2022
	`strengthens<br>by 1%<br>`weakens by 1% `strengthens<br>by 1%<br>`weakens by 1%
Impact on proft / (loss) * USD EUR JPY GBP	11.04 (11.04) 5.02 (5.02) (0.05) 0.05 1.87 (1.87) 0.11 (0.11) 0.06 (0.06) (0.12) 0.12 (0.22) 0.22

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

	Year ended March 31, 2023 Year ended March 31, 2022
	`strengthens<br>by 1%<br>`weakens by 1% `strengthens<br>by 1%<br>`weakens by 1%
Impact on equity (Other comprehensive income) USD 16.32 (16.32) 8.62 (8.62) EUR 3.98 (3.98) 3.75 (3.75)

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.

The following table details the foreign currency derivative contracts outstanding at the end of the reporting period:

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, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022
USD/INR Sell forward EUR/INR Sell forward EUR/USD Sell forward EUR/USD Buy forward EUR/THB Buy forward	278 362 633.00 735.502,643.592,821.042,596.613,095.66 1 1 20.00 20.00 202.77 - - 202.77 9 - 8.96 - 79.41 - - - 3 - 10.93 - 97.42 - - - 1 6 1.04 18.00 9.77 149.41 - 9.26

Computed using average forward contract rates
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.

378 Annual Report 2022-23

Annual Report 2022-23 379

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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, 2023 Year ended March 31, 2022
	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	2.63 (2.63) 1.83 (1.83) (0.45) 0.45 - - 50.67 (50.67) 56.31 (56.31) 1.99 (1.99) 3.34 (3.34)

Interest Rate Risk Management

B.

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 676.02 crores and floating interest loan is 2,134.11 crores (Previous year : Fixed interest loan 938.35 crores and Floating interest loan 1,562.94 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:

==> picture [424 x 85] intentionally omitted <==

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

Year ended March 31, 2023 Year ended March 31, 2022
loans interest Foreign loans interest Foreign
rate increases currency loans rate increases currency loans
by 0.50 % interest rate by 0.50 % interest rate
increases by increases by
0.15 % 0.15 %
Decrease in profit before tax by - (3.20) (1.29) (1.96)
----- End of picture text -----

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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 had certain financial instruments which are impacted by the IBOR reform. During the previous year, the group had renegotiated all working capital facilities agreements and 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. As at March 31, 2023, the group has two long term loan arrangements which are USD LIBOR benchmark linked and maturing after June 2023. The management of the Company has planned to prepay one of these loans and for the other loan, move to Secured Overnight Financing Rate (SOFR) benchmark prior to June 2023. Any related IRS contract would accordingly be amended

All the EUR denominated long term loans of the Group which are linked to EURIBOR have relevant benchmark replacement/ fall back clauses and do not require any amendment

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:

		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, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022
IRS Contracts (USD) *	2 4 7.18 20.28 59.00 90.76 - 62.79

*Sensitivity on the above IRS contracts in respect of interest rate exposure is insignificant

In case of decrease in interest rate by above mentioned percentage, there would be a comparable positive impact on the profit before tax as mentioned above.

380 Annual Report 2022-23

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CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

C. Hedge accounting

Cash flow hedges

The amounts at the reporting date relating to the item designed as hedge items are as follows:

==> picture [424 x 122] intentionally omitted <==

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

Hedging As at March 31, 2023 Year ended As at March 31, 2022 Year ended
instruments March 31, March 31,
2023 2022
Nominal Carrying Line item Change in Nominal Carrying Line item Change in
amount amount where the the value of amount amount where the the value of
( Crores) Assets / hedging the hedging ( Crores) Assets / hedging the hedging
(liabilities) instrument is instrument (liabilities) instrument is instrument
( Crores) included recognised ( Crores) included recognised
in OCI in OCI
( Crores) ( Crores)
----- End of picture text -----

Foreign		-	Other fnancial assets (current and non - current)	(121.17)		121.17	Other fnancial assets (current and non - current)	35.63
exchange	5,321.12				6,091.63
contracts		(61.29)	Other fnancial liabilities (current and non - current)	(55.93)		(5.36)	Other fnancial liabilities (current and non - current)	(5.36)
Foreign currency denominated creditors	182.44	(182.44)	Other fnancial liabilities (current and non - current)	(20.27)	-	-	Other fnancial liabilities (current and non - current)	-
Foreign currency denominated loans	1,848.11	(1,848.11)	Non-current/ current borrowings	(57.50)	1,236.86	(1,236.86)	Non-current borrowing	8.20
Interest		0.89	Other fnancial assets (current and non - current)	(2.63)		3.52	Other fnancial assets (current and non - current)	2.51
rate swap	59.00				153.55
contracts		-	Other fnancial liabilities (current and non - current)	-		-	Other fnancial liabilities (current and non - current)	0.54

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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, 2023
Year ended
March 31,
2023
As at March 31, 2022
Year ended
March 31,
2022
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** **(**Crores) Hedging
instruments
As at March 31, 2023
Year ended
March 31,
2023
As at March 31, 2022
Year ended
March 31,
2022
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** **(**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
(**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** **(**Crores)

Foreign
exchange
contracts* 308.45
(7.09)
Other
fnancial
liabilities
(current)
(10.73) 186.51
3.64 Other fnancial
assets
(current)
(0.75)

Excluding forward contracts not designated as hedging instruments

Movement of cash flow hedging reserve and cost of hedging reserve :

Particulars	Cash fow hedging reserve Cost of hedging reserve
	As at March 31, 2023 As at March 31, 2022 As at March 31, 2023 As at March 31, 2022
Opening Balance Changes in the spot element of the forward contracts which is designated as hedging instruments for time period related hedge Changes in the forward element of the forward 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 designated as hedging instruments recognised in OCI Changes in fair value of interest rate swaps Amount reclassifed to proft or loss (Foreign exchange (gain) / loss) Amount arising from remeasurement of fnancial liability Taxes related to above	34.49 7.53 0.51 3.13 (24.15) (3.12) - - - 15.68 19.31 (172.01) 28.77 - - (2.63) 3.05 - - 41.61 16.54 (10.66) (21.48) (95.23) (5.25) - - 67.58 (13.03) (0.79) (0.45)
Closing Balance	(150.34) 34.49 4.74 0.51

382 Annual Report 2022-23

383

Annual Report 2022-23

CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

Investment Risks

The primary goal of the Group’s investment is to maintain liquidity along with meeting group’s strategic purposes. Depending upon the investment strategy at inception, management classifies certain investments as FVTPL.The following table details the group’s sensitivity to a 1% increase and decrease in the price of instruments.

	Year ended March 31, 2023 Year ended March 31, 2022
	Market price increase by 1% Market price decrease by 1% Market price increase by 1% Market price decrease by 1%
Impact onproft /(loss)for theyear 4.90 (4.90) 3.17 (3.17)

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. The Group does not require collateral in respect of trade receivables, loans and contract assets.

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 group. 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.

The derivatives are entered into with reputed and well established bank and financial institution

counterparties.

The cash and cash equivalents and other bank balances are held with banks, financial institution and other counterparties, which are rated AA or above. The Group considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties.

The Group limits its exposure to credit risk by investing in liquid debt securities and only with counterparties that have a credit rating of at least AA or above. The group permits exposure in corporate bonds only up to the specified amount as per its Board policy. Also, mutual fund investments are permitted only in those funds where the corpus size is more than ` 2,000 crores. The Group monitors its investment portfolio on continues basis to assess whether there has been a significant increase in credit risk whether or not reflected in the published ratings.

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, 2023

(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, 2023	As at March 31, 2022
Loans - current	8	2.74	2.74
Trade receivables	13	5.30	3.45
		8.04	6.19
Movement of loss allowance :
	Loans	(Current and non current) Trade receivables
As at March 31, 2021		2.74	5.03
Provided during the year Reversed/ utilised during the year As at March 31, 2022 Provided during the year		0.17 (0.17) 2.74 -	0.78 (2.34) 3.45 1.89
Reversed/ utilised during the year As at March 31, 2023		- 2.74	(0.04) 5.30

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 Chairman and 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.

The Group has a secured bank loans which contain loan covenants. A future breach of any covenant may require the Group to repay the loans earlier than their original payment date. These covenants are monitored by the treasury department and regularly reported to management to ensure compliance with the agreement.

The Group also participates in a supply chain financing arrangement SCF) with the principal purpose of facilitating efficient payment processing of supplier invoices. The SCF allows the Group to centralise payments of trade payables to the bank rather than paying each supplier individually. While the SCF does not extend payment terms beyond the normal terms agreed with other suppliers that are not participating, the programme assists in making cash outflows more predictable. Also refer note 20.

Also refer note 13 for receivables purchase agreements entered into by the group as a part of its liquidity risk management policy.

384 Annual Report 2022-23

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

The table below analyse the group’s financial liabilities into relevant maturity profiles based on their contractual maturities:

As at March 31, 2023	Less than 1 year	More than 1 year and up to 5years	More than 5years	Total
Borrowings*	2,151.94	2,467.17	-	4,619.11
Lease Liabilities **	34.45	94.22	50.46	179.13
Trade payables	2,231.27	-	-	2,231.27
Derivative liabilities	42.14	26.24	-	68.38
Other fnancial liabilities	443.42	133.23	-	576.65
	4,903.22	2,720.86	50.46	7,674.54

As at March 31, 2022	Less than 1 year	More than 1 year and up to 5years	More than 5years	Total
Borrowings*	1,819.30	1,783.41	-	3,602.71
Lease Liabilities **	28.63	84.50	59.52	172.65
Trade payables	2,096.35	-	-	2,096.35
Derivative liabilities	5.03	0.33	-	5.36
Other fnancial liabilities	366.67	153.53	-	520.20
	4,315.98	2,021.77	59.52	6,397.27

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 27] intentionally omitted <==

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

Contract liability Year ended Year ended
March 31, 2023 March 31, 2022
----- End of picture text -----

Opening balance	28.32	18.40
Revenue recognised that was included in the contract liability	(28.32)	(18.40)
balance at the beginning of the period
Increase due to cash received, excluding the amount recognised	45.90	28.32
as revenue duringtheperiod
	45.90	28.32

42 Assets classified as held for sale

(a) Description:

During the previous year, the management had decided to dispose off inoperative assets related to Industrial Yarn Unit. Accordingly, these assets had 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 March 31, 2021, 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.

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(b) (c)	Assets classifed as held for sale:
	As at March 31, 2023 As at March 31, 2022
	Property plant and equipment - 3.00
	Loss recognised on:
	Year ended March 31, 2023 Year ended March 31, 2022
	(i) Impairment of goodwill - 0.62 (ii)Fair value of assets classifed as held for sale - 5.75

43 Right-of-use assets

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 28] intentionally omitted <==

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

Particulars Land * Buildings Plant & Total
equipment
----- End of picture text -----

Cost
Balance at April 1, 2021	151.29	46.25	49.89	247.43
Additions/adjustments	4.88	(0.45)	58.59	63.02
Derecognition	-	-	(8.20)	(8.20)
Balance at March 31,2022	156.17	45.80	100.28	302.25
Additions/adjustments	28.48	(0.37)	31.31	59.42
Derecognition	-	-	(5.70)	(5.70)
Balance at March 31,2023	184.65	45.43	125.89	355.97
Accumulated depreciation
Balance at April 1, 2021	2.55	12.97	15.15	30.67
Depreciation expenses	1.74	6.59	16.10	24.43
Derecognition	-	-	(8.20)	(8.20)
Balance at March 31, 2022	4.29	19.56	23.05	46.90
Depreciation expenses	2.04	6.83	18.69	27.56
Derecognition	-	-	(5.70)	(5.70)
Balance at March 31,2023	6.33	26.39	36.04	68.76
Net block
Balance at March 31, 2022 Balance at March 31, 2023	151.88 178.32	26.24 19.04	77.23 89.85	255.35 287.21

*The execution of lease deed of land in respect of 11,65,437 square meters of leasehold land already alloted (out of a total of 11,81,776 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.

386 Annual Report 2022-23

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CORPORATE OVERVIEW

STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

Lease liabilities included in the Balance Sheet	As at March 31, 2023	As at March 31, 2022
Current	25.90	20.66
Non-current	97.57	95.18

The average incremental borrowing rate applied to lease liabilities during the year ranges from 7.75% to 8.75% (Previous year: 6.40% to 7.00%)

Amounts recognised in Statement of Proft and Loss Year ended March 31 2023 Year ended March 31 2022	Amounts recognised in Statement of Proft and Loss Year ended March 31 2023 Year ended March 31 2022
Interest on lease liabilities 8.99 8.69 Depreciation expense 27.56 24.43 Expenses relating to short-term leases and leases of low-value assets(Refer note 30) 39.66 30.36

Amounts recognised in Cash Flow Statement Year ended March 31 2023 Year ended March 31 2022
Total cash outfow for leases 32.47 25.68
Group Information
Name Principal activities Country of incorporation	% equity interest
	March 31, 2023 March 31, 2022
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 chemical products Republic of South Africa	100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

44 Group Information

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

45 Additional information as required by Paragraph 2 of General Instructions for preparation of consolidated financial statements of Division II of Schedule III to the Companies Act, 2013

==> picture [422 x 85] 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 ( Crores) consolidated ( Crores) consolidated ( Crores) consolidated ( Crores)
net assets Share in other comprehensive
profit or loss comprehensive income
income
----- End of picture text -----

I	Parent - SRF	90%	9,253.55	94%	2,023.36	97%	(189.59)	93%	1,833.77
	Limited
II	Subsidiaries:
A	Indian
1	SRF Holiday Home		3.78		0.02		-		0.02
	Limited
2	SRF Altech Limited		1.31		(1.40)		(0.01)		(1.41)
3	SRF Employees		0.04		(0.00)		-		(0.00)
	Welfare Trust
	(Controlled Trust)
B.	Foreign
1	SRF Global BV	11%	1,170.10	6%	139.84	3%	(6.08)	7%	133.76
	(Consolidated)
	Adjustments arising	(1)%	(101.73)		0.52		0.05		0.57
	out of consolidation
	Total	100%	10,327.05	100%	2,162.34	100%	(195.63)	100%	1,966.71
	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.

Assets acquired	Year ended March 31 2023	Year ended March 31 2022
Inventories	-	15.71
Intangible assets (Customer Contracts)	-	9.79
Purchase Price	-	25.50

During the previous year, based on the available information, the management had identified the above mentioned assets and carried out initial accounting as per Ind AS 103. During the current year, no significant adjustment has been made to the provisional purchase price allocation.

By virtue of management control.

388 Annual Report 2022-23

Annual Report 2022-23 389

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

47 ADDITIONAL DISCLOSURES

(a) RESEARCH AND DEVELOPMENT EXPENDITURE

The details of research and development expenditure of 129.31 crores (Previous Year - 116.99 crores) included in these financials statements are as under:

	Year ended March 31, 2023	Year ended March 31, 2022
Capital expenditure	7.22	8.49
Revenue expenditure	122.09	108.50
	129.31	116.99

The details of revenue expenditure incurred on research and development is as below:

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Year ended Year ended
March 31, 2023 March 31, 2022
Cost of material consumed 3.31 1.68
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Cost of material consumed	3.31	1.68
Salaries and wages, including Bonus	51.23	49.11
Contribution to provident and other funds	3.21	2.92
Workmen and staf welfare expenses	8.92	3.37
Stores and spares consumed	3.66	4.94
Power and fuel	12.45	7.94
Rent	0.09	0.26
Repairs and maintenance
- Buildings	0.01	-
- Plant and machinery	12.68	10.63
- Others	0.96	0.85
Insurance	1.06	1.02
Rates and taxes	0.08	0.06
Travelling and conveyance	1.58	0.51
Legal and professional charges	3.47	4.12
Depreciation and amortisation expense Interest cost	14.19 0.07	16.65 0.05
Miscellaneous expenses	5.12	4.39
	122.09	108.50

(b) MANAGERIAL REMUNERATION

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Year ended Year ended
March 31, 2023 March 31, 2022
(i) (a) Remuneration to Chairman / Managing
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(i) (a) Remuneration to Chairman / Managing
Director / Deputy Managing Director / Whole
time Director
Salary and contribution to provident and other funds	25.02	16.39
Value of perquisites	2.18	2.58
Commission	16.00	18.00
SUB-TOTAL	43.20	36.97

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

	Year ended March 31, 2023	Year ended March 31, 2022
(b) Remuneration to Non Executive Directors
Commission	1.16	0.90
Directors sitting fees	0.27	0.29
Other fees	-	0.06
SUB-TOTAL	1.43	1.25
TOTAL	44.63	38.22
The Group has elected to continue the policy adopted for accounting for exchange diferences 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 fnanced or		re-fnanced 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.
Exchange loss/ (gain) added/ (adjusted)	Year ended March 31, 2023	Year ended March 31, 2022
Property, plant and equipment
- Roads	0.13	0.11
- Buildings	1.75	1.52
- Plant and equipment	16.58	13.60
- Furniture and fxtures	0.04	0.04
- Ofce equipment	-	0.01
	18.50	15.28

(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.

The cumulative exchange loss/ (gain) added/ (adjusted) and remaining unamortised as at March 31, 2023 is 246.11 Crores (Previous year: 258.34 Crores).

(d) Disclosure on corporate social responsibility expense:

		Year ended March 31, 2023	Year ended March 31, 2022
(i)	Amount required to be spent by the company	28.56	18.61
	during the year
(ii)	Amount of expenditure incurred	28.63	19.06*
(iii)	Shortfall at the end of the year	-	-
(iv)	Total of previous years shortfall	-	-
(v)	Reason of shortfall	-	-

390

Annual Report 2022-23 391

Annual Report 2022-23

CORPORATE OVERVIEW STATUTORY REPORTS FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

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Year ended Year ended
March 31, 2023 March 31, 2022
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(vi)	Nature of CSR activities	School education, promotion of healthcare,
		Olympic sports, disaster management,
		environmental projects, Vocational skill
		and livelihoods projects and promotion
		of art and cultural projects and other CSR
		projects
(vii)	Details of related party transactions	28.23 21.38 ^
(viii)	Provision made with respect to a liability incurred	- -
	byenteringinto a contractual obligation

*This includes 18.68 crores pertaining to financial year 2021-22 and 0.37 crores pertaining to financial year 2020-21. 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 had been transferred in previous year to one of the specified funds prescribed under Schedule VII to the Companies Act, 2013 before September 30, 2021.

^ Includes unspent amount of ` 2.70 crores for the year ended March 31, 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, 2023 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.

Notes to the Consolidated Financial Statements

for the year ended March 31, 2023

(All amounts in ` Crores, unless otherwise stated)

(iii)

The group does not have any transactions with companies which are struck of, except the following:
Name of the struck of
company
Nature of
transactions
with struck of
company
Balance
outstanding
as at March
31, 2023
Balance
outstanding
as at March
31, 2022
Relationship
with the struck
of company, if
any
Jyotsna Engineers &
Consultants Private Limited
Receivables
^
^
Vendor
Krishna Freeze Private Limited
Payables
0.02
0.01
Customer
Perfect Refcon & Tools Private
Limited
Payables
0.01
0.01
Customer
Shree Krishna Well Pack Private
Limited
Payables
0.03
-
Vendor
Shakun and Company Services
Private Limited
Receivables
*
-
Vendor

^ Amount in absolute 2,000 (Previous year: 2,000)

Amount in absolute ` 618 (Previous year: Nil)
(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.
(ix) The group has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

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 Chairman and Joint Managing Director Director Managing Director DIN - 00008557 DIN - 00356188 DIN - 00671567

Partner Membership No.: 090075

Place : Gurugram Date : May 09, 2023

Rahul Jain

Rajat Lakhanpal

President & CFO

Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 09, 2023

392

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Annual Report 2022-23

CORPORATE OVERVIEW

STATUTORY REPORTS

FINANCIAL STATEMENTS

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

A Statement showing salient features of the financial statements of subsidiaries

Indian Subsidiaries

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S. Name of the subsidiary SRF Holiday Home Limited SRF Altech Limited
No. (subsidiary of SRF Limited) (subsidiary of SRF Limited)
( Crores) ( Crores)
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(a)	Reporting Period	April 1, 2022 to March 31, 2023 April 1,	2022 to March 31, 2023
(b)	Date since when subsidiary was	30.01.2008	15.03.2022
	acquired/formed
(c)	Reporting Currency	INR	INR
(d)	Exchange Rate	-	-
(e)	Share Capital	4.00	5.00
(f)	Reserves and Surplus	(0.22)	(3.69)
(g)	Total Assets	3.80	285.02
(h)	Total Liabilities	0.02	283.71
(i)	Investment	-	-
(j)	Turnover	-	-
(k)	Proft/(Loss) Before Taxation	0.01	(1.63)
(l)	Tax expense / (income)	(0.02)	(0.23)
(m)	Proft/(Loss) After Taxation	0.02	(1.39)
(n)	Proposed Dividend	-	-
(o)	% of shareholding	100%	100%

Foreign Subsidiaries

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S. Name of the subsidiary SRF Global BV [#] SRF Flexipak (South Africa)
No. (subsidiary of SRF Limited) (Pty) Limited [#]
(subsidiary of SRF Global BV)
USD Crores Rand Crores
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(a)	Reporting Period	April 1, 2022 to March	31, 2023	April 1, 2022 to March	31, 2023
(b)	Date since when subsidiary	20.10.2008		26.10.2011
	was acquired/formed
(c)	Reporting Currency	USD	`Crores\|Rand\|`Crores
(d)	Exchange Rate	82.21		4.62
(e)	Share Capital	1,40,20,050	115.26	100	0.00
(f)	Reserves and Surplus	(2,10,82,013)	(173.32)	75,22,09,052	347.52
(g)	Total Assets	6,75,21,253	555.09	1,02,80,43,832	474.96
(h)	Total Liabilities	7,45,83,216	613.15	27,58,34,680	127.44
(i)	Investment	*	*	-	-
(j)	Turnover	-	-	1,32,30,48,471	611.25
(k)	Proft/(Loss) Before Taxation	(11,23,730)	(9.24)	27,80,13,343	128.44
(l)	Tax expense / (income)	-	-	7,50,63,602	34.68
(m)	Proft/(Loss) After Taxation	(11,23,730)	(9.24)	20,29,49,741	93.76
(n)	Proposed Dividend	-	-	-	-
(o)	% of shareholding	100%		100%

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	April 1, 2022 to March 31, 2023 April 1, 2022 to March 31, 2023 08.09.2008 13.06.2008 THB `Crores<br>Rand<br>`Crores 2.4 4.62 20,00,00,300 48.00 1,33,20,202 6.15 3,62,45,90,919 869.90 (4,08,69,185) (18.88) 8,10,72,95,730 1,945.75 14,53,91,014 67.17 4,28,27,04,511 1,027.85 17,29,39,996 79.90 - - - - 7,47,92,79,205 1,795.03 29,76,07,145 137.49 52,67,39,462 126.42 (1,22,16,803) (5.64) 80,08,007 1.92 (1,80,35,711) (8.33) 51,87,31,455 124.50 58,18,907 2.69 - - - - 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		April 1, 2022 to March 31, 2023 25.04.2018 EURO `Crores 89.39 10,10,000 9.03 1,13,354 1.01 10,12,11,192 904.73 10,00,87,838 894.69 - - 6,49,03,310 580.17 (82,20,831) (73.49) 22,821 0.20 (82,43,652) (73.69) - - 100%
# The fnancial statements of these foreign subsidiaries have been converted into Indian Rupees on the basis of following exchange rates:
(i) 1 USD =`82.21<br>(ii)<br>1 Baht =`2.40 (iii) 1 Rand =`4.62<br>(iv)<br>1 Euro =`89.39

Investment in subsidiary USD 1,80,50,219 (Equivalent to ` 148.39 crores)

394

Annual Report 2022-23 395

Annual Report 2022-23

B Statement containing salient features of the financial statements of associates companies/ joint ventures

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Name of Associate Companies/Joint Malanpur Captive Vaayu Renewable
Ventures [#] Power Ltd. Energy(Tapti) Pvt. Ltd.
----- End of picture text -----

Latest audited Balance Sheet date			31.03.2022	31.03.2022
Share of Associate Companies held by the Company			4.22	0.05
on the year end
Date on which the Associate was associated or			09.01.2007	29.05.2013
acquired
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
	least 20% of total share			20% of total share capital
	capital	as	envisaged	as envisaged in Sec. 2(6)
	in Sec.	2(6) of the		of the Companies Act,
	Companies Act, 2013			2013
Reason why the associate company is not			*	*
consolidated
Net worth attributable to shareholding as per			(8.69)	10.95
latest Audited Balance Sheet
Proft & loss for the year
(i) Considered in Consolidation			Nil	Nil
(ii)Not considered in Consolidation			(1.24)	(0.64)

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

Ashish Bharat Ram Chairman and Managing Director DIN - 00671567

Kartik Bharat Ram Joint Managing Director DIN - 00008557

Bharti Gupta Ramola Director DIN - 00356188

Rahul Jain President & CFO

Rajat Lakhanpal

Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 09, 2023

396 Annual Report 2022-23

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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

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Follow Us

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AI assistant

SRF Ltd. — Annual Report 2023

61903_rns_2023-06-07_50dc530a-7542-4300-9382-6043bd5442c5.pdf

Sub: Annual Report of 52[nd] Annual General Meeting- SRF Limited

Rajat Lakhanpal

CONTENTS

A.

Corporate Overview

B.

Statutory Reports

95 Notice

C.

Financial Statements

CHAIRMAN’S MESSAGE

SRF’s progress has always been

The Year Under Review

Chemicals Business

Specialty Chemicals Business

Fluorochemicals Business

Packaging Films Business

Technical Textiles Business

Looking ahead

Other Businesses

In closing

Uplifting Lives and Livelihoods

SRF LIMITED AT A GLANCE

AWARDS & RECOGNITION

OUR LOCATIONS

National

International

CHAIRMAN EMERITUS

BOARD OF DIRECTORS

CORPORATE INFORMATION

Bankers

Auditors

President & CFO

Corporate Office

OUR APPROACH TO ESG

Strategy

ABOUT THE ESG REPORT

Scope and Boundary

Reporting Frameworks

Business Portfolio

CHEMICALS BUSINESS

Fluorochemicals

Specialty Chemicals

PACKAGING FILMS BUSINESS

TECHNICAL TEXTILES BUSINESS

Industries we serve

ESG Highlights

CORPORATE GOVERNANCE

Our prosperity is proportional to our good corporate governance practices

Board of Directors

Board Committees

Our Code of Conduct

Our Policies and Codes

Sustainability Governance Framework

Process Owners

Industry Associations

Compliances and

Regulations

MATERIALITY ASSESSMENT

Our approach to materiality assessment

The final list of material topics for SRF Limited

Environmental

Social

Governance

BUILDING LONG-TERM RELATIONSHIP WITH STAKEHOLDERS

Inclusive Stakeholder Engagement Process

Identify

Plan

Engage & Consult

Monitor & Report

Key stakeholders of SRF Limited

Stakeholder Engagement

RISK MANAGEMENT

Risk Management Process

Enterprise-Level Risk Management Framework

Linkages with SDGs

Strategy

SRF Ltd. Annual Report 2023