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The BSE Ltd. National Stock Exchange of India Limited BSE’s Corporate Relationship Department “Exchange Plaza” 1[st] Floor, New Trading Ring, Bandra-Kurla Complex Rotunda Building, P.J. Towers, Bandra (E) Dalal Street, Fort, Mumbai- 400 051 Mumbai 400 001

SRF/SEC/AGM-53/2024

05[th] June, 2024

Dear Sir,

Sub: Annual Report of 53[rd] Annual General Meeting- SRF Limited

In Compliance with Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 please find attached 53[rd] 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 Digitally signed by RAJAT RAJAT LAKHANPAL LAKHANPAL Date: 2024.06.05 12:10:05 +05'30'

Rajat Lakhanpal

Sr. VP (Corporate Compliance) & Company Secretary

Encl : A/a

SRF LIMITED Block-C Sector-45 Gurugram 122 003 Haryana India Tel: +91-124—4354400 Fax: +91-124—4354500 E-mail: [email protected] Website: www.srf.com Regd. Office: Unit No. 236 & 237, 2nd Floor DLF Galleria, Mayur Plate Noida Link Road Mayur Vihar Phase 1 Extension Delhi 110091

Corporate identity No. L181010L1970PLC005197

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Celebrating 50 Years of Manufacturing Excellence

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Celebrating 50 Years Of Manufacturing Excellence

In 2024, SRF Limited proudly commemorates 50 years of manufacturing excellence. Since the inauguration of our first plant in 1974, we have evolved into a manufacturing powerhouse with businesses spanning multiple verticals. Our internationally acclaimed facilities set industry standards, while our products, fully compliant with global standards, bear the hallmark of quality.

Over five decades, our path has been illuminated by innovation. Our products and solutions transcend borders, impacting lives, industries, and ecosystems.

Our commitment to environmental and social responsibility underscores our vision for a sustainable and inclusive future.

Our golden legacy is not just a reflection of the past but a beacon guiding us towards an even brighter future. We look ahead with renewed vigour, passion, and a commitment to creating prosperity for all our stakeholders.

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Corporate Overview

02 93

02 Chairman’s Message 08 Our Glorious journey 12 Global Footprint 14 Board of Directors 15 Corporate Information 16 Our Approach to ESG 18 About the ESG Report
26 Corporate Governance
32 Strengthening Relationship with Stakeholders
36 Materiality Assessment
38 Risk Management
44 Value Creation Model
46 Capital-wise Performance

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1974
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Technical Textiles Business, Manali, India

2. Statutory Reports

Financial Statements

94 216

217 437

94 Business Responsibility & Sustainability Report
217 Standalone Financial Statements
127 Independent Assurance Statement
328 Consolidated Financial Statements
129 Notice
145 Board’s Report

See this report online at www.srf.com Scan the code to see this report on your hand-held device

182 Management Discussion & Analysis
196 Corporate Governance Report

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Annual Report [2023-24]

Chairman’s Message

Dear Shareholders, On behalf of the Board of Directors of SRF Limited, I am pleased to present the annual report for the financial year ended March 31, 2024.

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A milestone year has arrived for SRF in 2024. The year in which we celebrate our “Golden Jubilee”. 50 years of serving our customers. 50 years of commitment. 50 years of excellence and innovation. 50 years of improving lives and developing our communities; and most importantly, 50 years of vision set on the present and the future. We have, indeed come a long way since our first facility in Manali commenced operations in 1974.

The past year was one of geopolitical volatility and macroeconomic uncertainties. Most of the developed economies saw growth slowing down due to record inflation indices. While everyone’s focus has been to bring inflation down, several factors held back the recovery. Some reflect the long-term consequences of the pandemic, the war in Ukraine, and increasing geoeconomic fragmentation. Others are more cyclical in nature, including the effects of monetary policy tightening necessary to reduce inflation, withdrawal of fiscal support amid high debt, and extreme weather events.

Despite the highly uncertain external environment, at SRF, our capable team, yet again, proved to be a dependable, and future-ready partner for our shareholders.

Celebrating 50 Years of Manufacturing Excellence

A milestone year has arrived for SRF in 2024. The year in which we celebrate our “Golden Jubilee” . 50 years of serving our customers. 50 years of commitment. 50 years of excellence and innovation. 50 years of improving lives and developing our communities; and most importantly, 50 years of vision set on the present and the future. We have, indeed come a long way since our first facility in Manali commenced operations in 1974.

What does it mean to SRF to reach this milestone?

It means our position remains strong and promising for delivering sustained performance, particularly as the end markets begin to rebound. And, despite the

Annual Report [2023-24]

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recent challenges, we firmly believe our foundation for future growth is set. This optimism stems from our proven track record in developing complex products, all of which are supported by world-class infrastructure, skilled personnel, and exceptional R&D capabilities, in driving sustainable growth of our business, for people and the society at large.

Board Changes during the Year

This year, we honoured and bid farewell to two long-time members who collectively have served close to 25 years in support of our work – Mr. L Lakshman and Mr. Tejpreet S Chopra. At this point, I would also like to extend a warm welcome to Ms. Ira Gupta and Mr. Vineet Agarwal, who join the SRF Board (effective April 1, 2024) as Independent Directors, and we look forward to their perspective and guidance on the organisation’s future.

FY24 Performance

SRF’s performance in FY24 offers a glimpse at how our diversified model, business strategies, culture and purpose all came together to help us tide over a relatively difficult year for the company and of the many ways in which we’ve cleared the runway of obstacles to tap into the growth opportunities that lie ahead.

From a financial point of view, our operating revenue decreased by 12% to ₹ 13,139 crore, EBIDTA dropped by 26% to ₹ 2,744 crore, translating to an EBIDTA margin of 21%. The company’s Profit after Tax (PAT) decreased by 38% from ₹ 2,162 crore in FY23 to ₹ 1,336 crore in FY24. While our Packaging Films and Chemicals Businesses witnessed tough market conditions, the Technical Textiles Business saw marginal growth in FY24.

Moving to my viewpoint on the performance of each of our three market-leading Businesses now.

Chemicals Business

During FY24, the Chemicals Business registered revenue of ₹ 6,297 crore, declining 15%. We underestimated the slowdown to a certain extent at the beginning of the fiscal year, which turned out to be a more protracted inventory destocking cycle from our customers’ side and led to pressure on pricing for some of our products. While we will see some short-term challenges in the Chemicals Business, I am very confident that the

recovery will be strong. On the CAPEX front, in FY24, the Chemicals Business has spent ~₹ 1,700 crore on various expansion projects.

More specifically in the Specialty Chemicals Business (SCB) , FY24 was a challenging year. Having said that, the team took several steps to emerge stronger. We actively worked on our customers’ new products and their developmental projects, while ensuring the production capacities were optimally utilised for existing products. Apart from commissioning new facilities, we are working very diligently on our cost structures, ensuring we run our plants most efficiently.

In order to seize future market opportunities, we commissioned nine dedicated facilities at the Dahej site in FY24. Our funnel is very strong, all AIs that we are working on, are on stream. Over the last year, and specifically in the last six months, a large number of plants have been capitalised, to the tune of ~₹ 1,800 crore. Our focus will be to ramp them up now. We believe that from the second half of FY25, we will go back to higher capex intensity, in line with our aspirations for the future.

I am also excited about our inroads into the Pharma segment. This requires a different skill set and together with our Chemicals Technology Group , I believe, we are starting to see visible progress now.

Fundamentally, we are extremely positive about this Business.

Coming to our Fluorochemicals Business –

FY24 was a tough year for the Fluorochemicals Business. At the beginning of the year, we witnessed a weak season in the domestic market. There was stress on refrigerants’ prices and volumes due to Chinese dumping in India and the international markets. US continued to destock HFC inventory. Prices were softer; and so was the demand. Despite the near-term impact on refrigerant gases, the underlying potential for global and domestic HFCs remains strong with significant traction from India, the Middle East, and Southeast Asia, which should play out in FY25. Additionally, we believe that pricing will be more rational, and we should be able to accrue benefits of that in our refrigerant gases business.

We capitalised ` ~1,200 crore of capex in the Fluorochemicals Business, in FY24, that includes the PTFE and R32 plants along with capacity expansion of the AHCl plant. In our Fluoropolymers journey, while we have done good work on bulk, we are now moving into the new grades (free flow and fine cuts) and ramping those up.

On Industrial Chemicals, Chloromethanes is going through a weak cycle. Having said that, we are now beginning to see some signs of pick-up in the agrochemicals industry, which seems to indicate that demand may improve in the months ahead. In addition, we have already started work on our next range of Industrial Chemicals and we expect this to open up a new area of growth for us.

In the Dymel®/ propellant vertical, we continue to increase our market share in both the domestic and international markets, entering new geographies and broadening our customer base.

We capitalised ~₹1,200 crore of capex in the Fluorochemicals Business, in FY24, that includes the PTFE and R32 plants along with capacity expansion of the AHCl plant. In our Fluoropolymers journey, while we have done good work on bulk, we are now moving into the new grades (free flow and fine cuts) and ramping those up. This is a learning journey and I believe that the knowledge that we have attained will help us streamline our new fluoropolymer projects at a faster pace.

In the future, our focus will be to optimise raw material sourcing, cost saving initiatives, strengthening capabilities in new product portfolio with sustainability as our priority. Overall, the business performance is anticipated to improve over last year with maximum utilisation of capacities and the commissioning of specialty fluoropolymers plants.

Broadly, I estimate the Chemicals Business to grow at ~20% in FY25 and build a strong momentum for the years ahead.

Packaging Films Business

During FY24, the Packaging Films Business (PFB) registered revenue of ₹4,489 crore, declining 14%. PFB continues to face significant headwinds due to the cyclical downturn, driven by huge capacity additions in India and overseas. Having said that, SRF’s Packaging Films Business remains the best performing amongst its competitors, on account of its value-added products portfolio, long-term customer contracts, implementation of cost-saving strategies, and the Business’ ‘Easy to Do Business With’ mantra that collectively contribute to a distinct performance advantage over competitors.

However, considering the uncertain environment, we anticipate that it may still take some time before the demand-supply situation normalises, especially in the BOPET film segment. Our facility in Hungary has gone through tough times, but with the energy prices stabilising now, we expect the performance there to improve.

On the positive side, our state-of-the-art aluminium foil facility got commissioned in FY24, making SRF amongst the very few players globally who offer a wide portfolio of packaging substrates – BOPET, BOPP and Aluminium Foil under one roof.

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Aluminium Foil Facility, India

Annual Report [2023-24]

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The Technical Textiles Business has had a good year, and I am pleased to share that we are now supplying Tyre Cord Fabric (TCF) to all the major tyre companies in India, which is a first for us.

Moreover, I am happy to share that work on the upcoming, dedicated Capacitor Grade BOPP film line, which is aimed at expanding in business adjacencies, is progressing as per schedule. This is our foray into manufacturing of higher value-added products to cater to the demand emerging from the manufacture of electronics and EV sector in India.

The Business will also continue to focus on the sustainability initiatives, driven by the ‘3R’ approach – Reduce, Reuse and Recycle.

Technical Textiles Business

In FY24, we reported healthy performance in the Technical Textiles Business and registered revenue of ₹ 1,898 crore. The Technical Textiles Business has had a good year, and I am pleased to share that we are now supplying Tyre Cord Fabric (TCF) to all the major tyre companies in India, which is a first for us.

The demand for our Belting Fabrics and Polyester Industrial Yarn segments was healthy during the year due to an increased Government focus on infrastructural development. Our new investment in Polyester Industrial Yarn got commissioned in FY24 and the progress in the expansion project for Belting Fabrics remains on track.

Unfortunately, Cyclone Michaung, which made a landfall in Chennai, India in December 2023, affected our facility in Manali. However, I am glad to share that all our employees are safe, and our team was able to restore and restart the machinery in record time.

Other Businesses (Coated and Laminated Fabrics)

Our Coated Fabrics Business attained all-time high domestic sales and EBITDA, primarily driven by a strong demand for our flagship and value-added products. This is a result of our team’s perseverance in

capturing the maximum share of the growth that has happened in the market, and as the outlook suggests, we hope for continued healthy demand in the near term. The Laminated Fabrics Business has done well too, despite an oversupplied market.

Our Approach to Environmental, Social, Governance (ESG), our People, & Philanthropy

Corporate citizenship & sustainability are core to our business strategy. It ensures we remain focussed on resource optimisation and contribute meaningfully to the circular economy. At SRF, we maintain a high level of sustainability disclosure, which has helped us identify and measure ESG risks and develop a long-term plan to move up this curve. In fact, our approach to ESG remains under constant review, responding to our operating environment as it evolves. This includes the rapidly changing ESG regulatory landscape and expectations of companies’ ESG disclosures. In 2023, we began necessary preparations for new sustainability reporting requirements, including the Business Responsibility and Sustainability Reporting (BRSR) reporting requirements.

I am also pleased to inform you that our Chemicals Business’ commitment to sustainability and pioneering work in the area of ESG continues to be recognised internationally, leading to our Dahej site being awarded a gold medal in FY24, in recognition of sustainability achievement by EcoVadis , which is one of the most recognised business sustainability ratings in the world.

Further information on our journey is available in the ESG section of this Report.

Maintaining Momentum on Diversity,

Equity, and Inclusion

We are continuing our focus on building a more diverse organisation and an equitable and inclusive culture so that everyone feels welcome, valued, and included. By taking steps to ensure equal opportunity and non-discrimination, we are delivering on our ambition to make our teams more diverse and inclusive.

In addition, we support development for all with numerous offerings for our employees. As part of our annual training, this year, we introduced a special development journey, ‘Aspire to Inspire’, which

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SRF Vidyalaya, Manali, India

focusses on women in the mid-to-senior level roles at SRF, among other such tailor-made learning modules.

While the Chemicals Business will show a recovery, possibly more towards the 2[nd] half of FY25, the margin pressure on the Packaging Films Business will continue through the course of the year. Having said that, the team is working on various projects to reduce the impact of downcycles, which in reality, is a part and parcel of this industry.

SRF Foundation

Systemic change takes time and needs to be addressed at many levels to be sustainable. Through careful impact of downcycles, which in reality, is a part and assessment and prudent investments, I believe we parcel of this industry. have been able to make considerable progress in our philanthropic journey. Before I close, on behalf of the Board, I would like to thank our passionate and talented employees for their Today, over 1,75,000 children have better access commitment in driving SRF’s growth in a responsible, to quality education. In the realm of health, we have forward-thinking way. Thank you also to my fellow recently launched two innovative programmes that Board members and the entire SRF management team promote community health and provide awareness on for your commitment and collaboration. I’m honoured preventive healthcare, diagnosis, and the treatment of for the opportunity to work with you. Lastly, we want basic illnesses. The Foundation is working on various to thank our shareholders for the trust you’ve shown in other initiatives as well and I would encourage all of our growth strategies and leadership. We look forward to continuing this journey with you.

Today, over 1,75,000 children have better access to quality education. In the realm of health, we have recently launched two innovative programmes that promote community health and provide awareness on preventive healthcare, diagnosis, and the treatment of basic illnesses. The Foundation is working on various other initiatives as well and I would encourage all of you to read the Foundation’s annual report to get a better understanding of how we are making a positive impact in the lives of the not so fortunate.

Sincerely,

Ashish Bharat Ram

Concluding Remarks

Chairman and Managing Director SRF Limited

I believe that FY25 will be better than FY24, for the Chemicals business and on an overall basis for the company as a whole.

Our Glorious STARTED IN 1889 Journey

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Sir Shri Ram
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Founder, The Shri Ram Group April 27, 1884 - Jan 11, 1963

1889

The Beginning of the DCM Group Delhi Cloth & General Mills Ltd. Later known as DCM, was set up in Delhi

Evolution of the Shri Ram Group

DCM under the leadership of Sir Shri Ram transformed into an industrial empire manufacturing a vast variety of goods like – textiles, sugar, chemicals, vanaspati, pottery, fans, sewing machines, electronic motors and capacitors

1958 – Chairman of DCM

1909 – Sir Shri Ram joined DCM Ltd.

1965 – President of FICCI

1920s – Sir Shri Ram was elected the Vice-Chairman of the Delhi Municipal Committee, the highest any Indian could reach in those days

1967 – Chairman of Indian Airlines

1930 – Sir Shri Ram was one of the first Indians to become the President of FICCI

1969 – First Asian President of International Chamber of Commerce

1941 – Sir Shri Ram was knighted

1972 – Awarded Padma Bhushan by the Indian Government

1944-45 – Sir Shri Ram was one of the seven architects of the Bombay Plan which was set up to advice the future Indian Government on its Industrial Policy

Founder, Chairman, SRF October 15, 1914 - July 11, 2007

1957 – Pt. Nehru invited Sir Shri Ram to become the Chairman of the public sector, Sindri Fertilizers and Chemicals and turn it around with his astute business acumen

“A temple of

modern India”

1970 – Shri Ram Fibres was incorporated by DCM to manufacture Nylon Tyre Cord in Manali near Chennai

2004 – Deming Prize to the Tyre Cord Fabrics (Technical Textiles Business) Commencement of the Specialty Chemicals Business, based on the work of an in-house R&D team

2006 – New Corporate Identity: From indicating the Group’s longevity and strength, to depicting the everstriving and ceaseless nature of its activity on the world stage

1974 – Commencement of production at Manali

1982 – Society for Education and Welfare Development was set up as the Corporate Social Responsibility (CSR) arm of the company (later came to be known as SRF Foundation)

2009 – SRF commenced production of Polyester Industrial Yarn at Gummidipoondi, Tamil Nadu

1983 – Started manufacturing belting fabrics at Viralimalai, Tamil Nadu

2010 – Set up the Laminated Fabrics Business

2011 SRF conferred the Forbes Asia ‘Best Under A Billion’ Award

1986 – Coated Fabrics Business was set up

2012 – Deming Prize to the Chemicals Business

1989 – Shri Ram Fibres diversified into chemicals by setting up a plant to manufacture refrigerant gases in Rajasthan

2019 – Awarded The Economic Times Family Business of the Year (Large Companies)

1990 – Shri Ram Fibres was renamed SRF

1995 – SRF began its journey in the Packaging Films Business

SRF... The Story of

1975 – Appointed Managing Director of SRF Limited

2000-01 – President of CII

2004 – Took over as Chairman & MD of SRF Limited and turned it into a leading, diversified chemicals conglomerate

2006 – Jamsetji TATA Award for Quality

2007 – Chairman, Lady Shri Ram College for Women

2008 – Conferred the Officer’s Cross of the Order of Merit by the Federal Government of Germany

2012 – Chairman, The Shri Ram Schools, Delhi NCR

2017 – Indian Chemical Council (ICC) Lifetime Achievement Award

2019 – EY Entrepreneur of the Year India Award in the Manufacturing category

2022 – Appointed as Chairman Emeritus of SRF Limited

Education

1962 – Sir Shri Ram set up the Shri Ram College of Commerce in New Delhi

1956 – Sir Shri Ram established the Lady Shri Ram College in New Delhi

1988 – Padma Shri Mrs. Manju Bharat Ram set up The Shri Ram School in New Delhi and Gurugram

Art & Culture

The Shri Ram family set up The Shri Ram Centre for Arts & Culture and the Shriram Bhartiya Kala Kendra, New Delhi

Concern for Employees

Sir Shri Ram was one of the pioneers in the establishment of the concept of provident fund, bonus, free housing & schooling for the children of employees

Sir Shri Ram encouraged workers to buy DCM shares. By 1923, a quarter of DCM was owned by its employees

Sir Shri Ram started workers’ and officers’ participation on the board in DCM in 1938

SRF is one of the first companies in India to adopt a death & disability policy

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Much before the Government of India
mandated CSR spend, Mr. Arun Bharat
Ram has been instrumental in driving
community engagement initiatives in
the areas of education, vocational skills
& livelihood programmes and natural
resource management.
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Annual Report [2023-24]

Global Footprint

HEADQUARTERS Block - C, Sector - 45, Gurugram, Haryana, India - 122 003 Tel: +91-124-4354400 Fax: +91-124-4354500 Email: [email protected]

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

PACKAGING FILMS BUSINESS

National

Rampura, Ramnagar Road, Kashipur - 244 713, Uttarakhand
Special Economic Zone, Pithampur - 454 775, Madhya Pradesh
Industrial Area, Bagdoon, Pithampur - 454 775, Madhya Pradesh
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. D-20, Hemraj Eastern Seaboard Industrial Estate, Amphur Pluakdaeng, Rayong - 21140
SRF Flexipak (South Africa) Ltd.
5 Eddie Hagan Drive, Cato Ridge 3680, KwaZulu - Natal, Durban
SRF Europe Kft. SRF Ut 1, Jászfényszaru - 5126, Hungary

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TECHNICAL TEXTILES BUSINESS

Plot No. K1, SIPCOT Industrial Complex, Gummidipoondi, Thiruvallur, District - Tamil Nadu, 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

SPECIALTY CHEMICALS BUSINESS

Village - Jhiwana, PO - Khijuriwas, Tehsil - Tijara, District - Alwar, Rajasthan, India - 301 019

D - 2/1, GIDC Phase II, PCPIR, Village - Dahej, District - Bharuch, Gujarat, India - 392 130

COATED FABRICS BUSINESS

Plot No. K1, SIPCOT Industrial Complex, Gummidipoondi, Thiruvallur District, Tamil Nadu, India - 601 201

LAMINATED FABRICS BUSINESS

Unit No. 2, Plot No. 12, Rampura, Ramnagar Road, Kashipur, District - Udham Singh Nagar, Uttarakhand, India - 244 713

FLUOROCHEMICALS

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

Annual Report [2023-24]

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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 Bharat Ram Chairman & Managing Director

Kartik Bharat Ram Joint Managing Director

Pramod G. Gujarathi Vellayan Subbiah Director (Safety & Non-Executive, Environment) and Occupier Non-Independent Director

Corporate Information

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

Auditors

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

President & CFO

Rahul Jain

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

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

Bankers

ICICI Bank

State Bank of India

Standard Chartered Bank Citibank NA

DBS Bank India Limited HDFC Bank

Kotak Mahindra Bank

HSBC

Yes Bank

MUFG Bank Limited Sumitomo Mitsui Banking Corporation

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Tejpreet S Chopra Independent Director (Ceased on March 31, 2024)

Lakshman Lakshminarayan Independent Director (Ceased on March 31, 2024)

Bharti Gupta Ramola Puneet Yadu Dalmia Independent Director Independent Director

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Yash Gupta Independent Director

Raj Kumar Jain Independent Director

Ira Gupta Independent Director (w.e.f. April 1, 2024)

Vineet Agarwal Independent Director

(w.e.f. April 1, 2024)

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Our
Approach
to ESG
16
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Annual Report

[2023-24]

Key ESG Performance Highlights

About the Report

Business Portfolio

Our Geographical Presence

Celebrating Excellence: Awards and Accolades

Our Approach to ESG

Performance Snapshot

Corporate Governance

Board of Directors

Board Committees

Sustainability Governance Framework

Our Policies and Codes Regulatory Compliances

Industry Associations

Strengthening Relationship with Stakeholders

Materiality Assessment

Risk Management

Strategy

Value Creation Model

Capital-wise Performance

Financial Capital

Intellectual Capital

• Manufactured Capital • Human Capital

Natural Capital
• Social and Relationship Capital

Annual Report [2023-24]

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The ESG report offers a comprehensive overview of our sustainable practices, demonstrating our commitment to creating enduring long-term value for stakeholders such as customers, investors, employees, communities, and beyond, while responsibly managing our business operations. It showcases both the financial and non-financial performance of SRF Limited, highlighting the current systems, processes, performance, and initiatives implemented during the reporting period.

Scope and Boundary

The report highlights the performance of SRF Limited for the period April 1, 2023 to March 31, 2024. This report covers the following businesses of SRF Limited:

Chemicals Business

Packaging Films Business

Technical Textiles Business

Other businesses - Laminated Fabrics and Coated Fabrics

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) standards.

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

Annual Report [2023-24]

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Business Portfolio

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Technical
Textiles Business
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Packaging Films Business

Chemicals Business

Laminated Coated Fabrics Fabrics

Chemicals Business

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

Fluorochemicals

Specialty Chemicals

Proficiency in fluorine chemistry and extensive understanding of various other organic chemistries
Manufacturer of eco-friendly refrigerants in India with global-scale fully integrated facilities
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
Pharma propellants and industrial chemicals
Development of new grades of Fluoropolymers

Packaging Films 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, metallised, coated, and other value-added fast-moving diverse applications in fast-moving consumer goods, food & agro, confectionery, soaps & detergents, solar panels, labelling, overwraps, embossing, etc.

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Technical Textiles Business

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

Annual Report [2023-24]

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Our Geographical Presence

With our manufacturing presence in India, Thailand, South Africa, and Hungary, we serve customers in over 100 countries globally.

Laminated Fabrics Business

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Laminated fabrics are available in different combinations of length, width, and weight as per the requirements of our customers

With an enviable reputation of a reliable manufacturer, we deliver quality solutions to the printing, advertising & signage industry

SRF-laminated fabrics which are used as flex in hoardings, billboards and signage are not only suitable for high-quality screen printing and digital printing but are also compatible with all solvent-based printers such as Vutek, Nur and Scitex

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Top Export Destinations
Other Export Countries
Rest of the World
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Industries We Serve

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Coated Fabrics Business

As a pioneer of PVC synthetic coated fabrics in India, SRF offers a diverse range of products for a number of applications in varied segments such as architecture, lifestyle, sports, advertising, defence, mines, food & agriculture, automobile, and transportation

Our coated fabrics are fire and weatherresistant as well as UV stabilised and abrasion and tear-resistant. Made of high tenacity polyester yarn with a unique PVC formulation, these are waterproof and easy to fabricate, install and maintain

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We empower a diverse range of industries with our innovative solutions. Our customer base consists of the following sectors:

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Automotive Pharmaceuticals Air Conditioning Manufacturing
Food & Agro Renewable Energy Lifestyle & Decor Agro-chemicals
FMCG Refrigeration Technical Textiles Advertising
Events & Exhibitions Mining Electronics Chemicals
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Snapshot of this year’s ESG performance

SRF Limited is dedicated to maintain its position as an organisation oriented towards long-term sustainable growth. We view our ESG journey as inherently collaborative, encompassing the well-being of the planet, people, and ensuring profitability.

This section reflects our commitments, systems, performance, and initiatives undertaken by SRF in mainstreaming ESG into our business activities.

13% 23% Zero reduction in Scope I decrease in turnover rate fatality emissions of permanent employees 17 17% new patents granted increase in training hours energy saved

~44.08 TJ energy saved

Celebrating Excellence: Awards and Accolades

In the section, we showcase the awards and accolades bestowed upon our Company, a testament to our commitment to excellence. These recognitions underscore our dedication to exceeding industry standards and delivering exceptional value to our stakeholders.

Emerging Business Leader of the Year Ashish Bharat Ram, CMD AIMA Managing India Awards

4.6+ Lakh 19.8% 22.8% CSR beneficiaries renewable energy in increase in females at electricity mix management level

1982

Registered the ‘Society for Education and Welfare Development’

Society for Education and Welfare Development was set up in 1982 as the Corporate Social Responsibility (CSR) arm of SRF Limited.

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MATEXIL Export Award for Outstanding Export Performance Technical Textiles Business, SRF MATEXIL, Category: Indutech

FE Visionary Leader Recognition Rahul Jain, President & CFO FinancialExpress.com

Top Value Creator 2023 – Chemicals SRF Limited

Gold Award in the 2023 Spotlight Awards (Annual Report 2022-23) SRF Limited

League of American Communications Professionals (LACP)

Dun & Bradstreet India

EcoVadis Sustainability Rating (Rating: Gold) Unit: Dahej, SRF Limited EcoVadis

Annual Report [2023-24]

Corporate Governance

Our Board of Directors

The guiding force that directs the company to achieve excellence.

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 objectives. Board members oversee the Company’s financial, environmental, and social performance, as well as address key risks and advise on opportunities.

The Board of Directors serve as the central pillar supporting our corporate governance framework. They ensure management's actions are directed towards creating long-term value creation of all stakeholders. Our Board of Directors consists of industry professionals who come with diverse skill sets, and rich experiences which enable and facilitate effective decision-making

Board of Directors with effect from April 1, 2024

Upholding Transparency and Accountability

At SRF, an effective governance framework is pivotal for attaining desired objectives and building long-term value for all stakeholders. Our corporate governance structure is harmonised with our deeply embedded and extensively practised core values. The Board is committed in ensuring an environment that promotes efficient corporate governance, robust internal controls, accountability, and financial prudence.

For us, corporate governance means implementing best practices to ensure we operate in compliance with regulations and guided by broader business ethics. The adoption of corporate practices — such as transparency and proper disclosures — ensures our people in charge bring benefits to investors, customers, creditors, employees, and the society at large.

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

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Annual Report [2023-24]

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Board Committees

At SRF, we ensure highest level of governance through six Board-level committees. Each committee has 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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Audit Committee CSR Committee
Risk Management Stakeholders
Board of Directors
Committee Relationship Committee
Committee of Directors- Nomination &
Financial Resources Renumeration Committee
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Business Leadership Team (BLT)

Sustainability Governance Framework

BLT is represented by various heads of functions, including Marketing, Strategic Sourcing, HR, Finance, IT, Operations and TQM

Our sustainability governance framework serves as the backbone of our commitment to environmental stewardship, social responsibility, and in ensuring ethics.

The Business Leadership Team implements and monitors, inter-alia, sustainability performance at business levels

Corporate Leadership Team (CLT)

Process Owners

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

Business Leadership Team (BLT) Process Owners

Operationalising ESG

The Company has formed an ESG committee which is headed by the Joint MD. The members of the committee consist of CFO, CHRO, CS, Corporate Controller, Business Representatives, Corporate Communications and Secretarial team. The committee is responsible for supporting the Board and the Company in achieving its ESG aspirations. The responsibilities of the committees include :-

Roles and responsibilities

Corporate Leadership Team (CLT)

Formulating strategies to facilitate ESG implementation
CLT consists of Chairman & MD, Jt. Managing Director respective business CEO’s, CFO, CIO and CHRO
Integrating ESG principles into business operations
Evaluating proposals related to ESG initiatives and overseeing their execution through a monitoring and evaluation (M&E) framework
The CLT provides guidance for making all the major business decisions at the Group level. It implements strategies across the organisation through the Business Leadership Team and Process Owners
Aligning key projects with the company’s ESG goals and targets

Ethics and Compliance

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We are committed to maintaining the highest level of ethical practices and ensuring compliance with legal and regulatory requirements. Integrity, professional and ethical conduct remains at the forefront of all our business interactions and activities.

Code of Conduct

Our Code of Conduct is a testament to our dedication to conducting business activities with utmost integrity, transparency, and responsibility. It mandates adherence to internal standards of business practices and covers areas including regulatory compliance, fair employment practices, environmental concerns, health and safety, conflict of interest management, and protection of the Company’s assets. The principles enshrined in the Code of Conduct are upheld by Board members and executives at the senior management level. Together with our Whistleblower policy, the Code of Conduct strengthens the embodiment of the Company’s core values (RINEW) and promotes a culture of ethical conduct and openness in all business dealings.

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Code of Conduct

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Equal Employment Prevention of Sexual Invention/ Prevention of
Opportunity Harassment Innovation Insider trading
Company policies Gifts and Conduct with customers Conflict of
and records entertainment and suppliers interest
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No cases of conflict of interest and disciplinary action was taken against SRF Limited or any of its internal stakeholders by any law enforcement agency for the charges of bribery / corruption on Directors / KMPs / employees / workers during the reporting period.

Annual Report [2023-24]

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Our Policies and Codes

At SRF, we are committed to integrating robust policies and protocols that consider the Environmental, Social, and Governance (ESG) elements as a fundamental part of our decision-making process. We consistently re-evaluate and innovate our strategic approach to stay ahead in the dynamic business environment and to meet the changing demands of our customers.

Environmental Equal opportunity Management policy as per the Policy Rights of Persons with Disabilities Act, 2016

Human Policy respecting Rights the interests of Policy stakeholders

Code of Supplier Code of Conduct Conduct Information Anti-corruption Security/ and Bribery Cybersecurity Policy/WhistlePolicy blower Policy

Our policies clearly outline the ethical conduct and behavioural expectations for our employees to maintain the core values of our organisation and guarantee ethical business operations. While it is mandatory for all employees to conform to these policies, we actively advocate for and support all other stakeholders in embracing and following these policies.

Policy to Policy to promote promote respect and inclusive well-being of growth and employees equitable development

Policy on Policy on responsible provision of sustainable and engagement with consumers safe provision of goods and services

Board Diversity Privacy Policy Policy

Ethical, Tax Policy & Transparent and Governance Accountable Policy

Regulatory Compliances

Our company meticulously adheres to all legal requirements, emphasising compliance as a fundamental principle in every business decision and strategic direction. To ensure strict adherence to relevant standards and regulations, we have developed an internal tool i.e. “Compliance Manager.” This tool diligently monitors and administers the necessary regulatory guidelines, ensuring that our operations maintain the highest levels of compliance and promptly address any instances of non-compliance.

No penalties were levied, and no sanctions have been imposed on SRF Limited for any non-compliance with environmental and social laws and regulations during the reporting period.

Industry Associations

SRF proactively creates shared value for all stakeholders. Simultaneously, the Company helps in promoting industrial growth and contributes to the Country’s development. Our company maintains affiliations with a number of trade and industry associations and engages proactively in cross-sectoral dialogues. Such interactions provide essential perspectives on nascent trends, breakthroughs, and regulatory frameworks, alongside privileged access to specialised research. These collaborative efforts enable the dissemination of exemplary practices, the resolution of sector-specific issues, and the pursuit of diverse improvements and projects designed to propel the industry and the community forward together.

Confederation of Indian Industry
Refrigerant Gases Manufacture Association
Indian Chemical Council
CHEMEXCIL
National Safety Council
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

Policy on Business POSH Policy Occupational responsibility Responsibility Policy Health and and transparency Safety Policy when engaging in influencing public and regulatory

Annual Report [2023-24]

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Strengthening Relationship with Stakeholders

Maintaining a consistent dialogue with our stakeholders is a cornerstone of our approach. We continuously engage with our stakeholders, namely investors, employees, suppliers, regulators, communities, and customers. These open lines of dialogue with our stakeholders are instrumental in identifying both the existing and emerging issues of material importance and aid in highlighting key improvement areas to mitigate evolving risks and challenges. This robust collaboration is essential in tapping into new opportunities and building effective business strategies for sustainable growth.

Stakeholder Engagement Process

To operate with transparency and ethical integrity, SRF has identified crucial stakeholders via a prioritisation exercise conducted in collaboration with the company's management. The comprehensive stakeholder engagement process is delineated as follows:

Identify

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

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|||||
|---|---|---|---|
|Our Key Stakeholders|
|Employees|Customers|Regulatory|Local|
|Bodies|Communities|
|Investors/|Suppliers|Bankers|
|Shareholders|

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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 and ensure transparency in the stakeholder engagement

1983

Belting Fabrics

SRF started manufacturing belting fabrics that are used as reinforcement material in conveyor belts and other mechanical rubber equipment at Viralimalai, Tamil Nadu. Processed within multiple layers inside conveyor belts, belting fabrics offer requisite strength and durability to the end-product.

Annual Report [2023-24]

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Stakeholders’ Engagement and Outcome

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Stakeholder Channels of Purpose and scope of Key Responsible
Expectations
Group communication engagement Groups
Compliance with Adherence to reporting Regulatory compliance Senior
applicable laws and requirements Operational efficiency Management
regulations Industry Development of and relevant
Participation and representation on key communities functions
contribution to various matters Management of
initiatives environmental impact
Regulatory
Occupational Health and
bodies
Safety
Emergency Preparedness
Air and GHG emissions
Biodiversity and resource
conservation
Waste management
Business plans, growth Company website Financial Performance Chairman and
feasibility and stability Quarterly publication Business Risk Managing Director
Better quarterly reports/ of results followed by Management (CMD), Chief
performance ratios earning call Foray into new markets Financial
Corporate reputation Periodic Analysts’ Optimising operational Officer (CFO),
Shareholders Transparent reporting briefing and individual costs Investor
Prudent capital allocation discussions between Corporate governance Relations and
Corporate governance fund managers and Ethics and value Secretarial Team
and risk management the management team Energy efficiency
Regular dividend pay-out Communication Renewable energy
Prompt shareholders with shareholders to Delivery of timely service
service provide service
Fair and transparent Supplier evaluation Pricing, quality and safety Sourcing
dealing programme of raw materials
Consistent business and Periodic meetings Issues related with
economic growth Visits to supplier’s human rights
Suppliers Joint exploration of facilities Local employment
potential opportunities Materials
Maintain confidentiality of
supplier data
Reputed brand, high Customer visits / audit Product innovation and Marketing
quality and reliable and meetings lifecycle efficiency Technical
products Customer recognition/ Service quality services
Product innovation awards programmes Resolution of Customer Customer
and environmentally Customer satisfaction Complaints Relationship
sustainable products surveys Quality and Safety of Managers
Timely market / product Joint development & Products
Customers updates product reengineering Pricing of Products
Honour contractual terms Branding
and price
Timely resolution of
customer complaints
Ethical Practices
Maintain confidentiality of
customer data
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Stakeholder Channels of Purpose and scope of Key Responsible
Expectations
Group communication engagement Groups
Safe and healthy work IT enablement & Career growth prospects Human
environment digitisation Learning and Resources
Favourable work culture Structured and development programs function
Adherence to SRF’s focussed training Trainings
Values programmes Rewards and Recognition
Fair and equal Employee oriented Occupational Health and
compensation work policies Safety
Learning and Adequate grievance Work environment and
development mechanism for policies
opportunities reporting and redressal Grievance redressal
Fair, transparent, and Fair and transparent mechanism
Employees
regular rewards and performance Ethics and transparency
recognition management systems TQM
Regular and constructive and 360-degree Emergency preparedness
performance feedback process Labour conditions
management and Periodic open house
feedback meetings with senior
Career development leadership teams
opportunities Regular employee
Appropriate grievance engagement and
redressal mechanisms feedback surveys
Job security
Local employment Social impact Social concerns in the SRF Foundation
Skill development and assessment region (Corporate
education Joint development and Minimising negative Social
Local infrastructure partnership with local environmental impact Responsibility
development agencies, network Local employment arm of SRF)
Conservation of natural partners for servicing Plant-level CSR
environment wider set of local Other
Local
Ensuring health and communities implementing
Communities
safety of nearby Local infrastructure agencies
communities development, engaged for
structured learning undertaking
by digital classrooms CSR activities
training, providing on behalf of the
scholarships, and other Company
necessary support
Financial stability In-person meetings Transactional banking – Chief Financial
Demonstrating Digital interface deposits, withdrawals, Officer (CFO)
creditworthiness Email transfers and Treasury
Ensuring compliance with Loans and credit lines
regulations Investments and related
Bankers
Ethical business practices advisory services
Mutually beneficial Forex management
banking relationships New banking products
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Annual Report [2023-24]

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Materiality Assessment

Materiality assessment enables us to identify and prioritise crucial ESG issues that are integral to our business strategies, investments, business operations and have the potential to create long-term value for stakeholders.

Our approach to materiality assessment

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Identification of Shortlisting Business-wise Final list of
material issues material consultation material topics
within each topics of SRF
business segment
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Our consistent monitoring and evaluation ensures we effectively manage key ESG material topics. We continue to map the Company’s progress against identified material aspects and take necessary actions wherever necessary, to improve the overall business outcomes and value for stakeholders. For the current financial year, there is no change in the final list of material topics identified earlier.

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

By maintaining focus on existing material topics, we have observed that our ESG strategies and initiatives remain aligned with the evolving needs of our stakeholders and the broader environmental and social context.

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Annual Report [2023-24]

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Risk Management

Forging Resilience and Opportunity: Navigating Risks in Our Journey Toward Sustainable Excellence

overarching Risk Management Policy. The policy specifies Company's strategy for handling risks throughout the organisation. The ERM framework incorporates essential elements for the efficient management of risks, thus fostering a resilient internal control system defined by a proactive, rather than reactive, stance on risk management.

SRF Limited has meticulously implemented a comprehensive Enterprise Risk Management (ERM) Framework, seamlessly woven into the Company's fundamental business strategy and planning activities. This integration has strengthened our capability to proactively manage risks and where feasible, convert them into opportunities. The ERM is governed by an

Risk Management Process

Risk Mitigation

Risk Analysis

Analysis and evaluation of the operating risks to determine probability of occurrence and impact

Strategies and tactics to ensure business survival

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Risk Identification

Risk Monitoring

Identifying all the potential risks that could impact department and business continuity

Tracking the risks to determine the effectiveness and adjusting the risk management plan to further reduce the impact

Risk Prioritisation

Prioritising risks by level of severity to reduce any liability or loss

We have a dedicated Risk Management Committee (RMC), which, inter alia, drives continuous efforts to identify various types of risks including ESG Risks, oversees the implementation of the risk management measures and suggests future action plans, wherever required.

manage both traditional and emerging business risks. It ensures that stakeholder interests are protected, business objectives are met, and long-term growth is sustained. Risk categorisation and prioritisation is done on a high, medium, and low category basis as defined by the Risk Management Framework. Further, Business Leadership Team and Risk Owners, report risks and mitigation plans to Corporate Leadership Team and subsequently to the Risk Management Committee for review. We also have a robust framework of Control Self-Assessment (CSA) which continuously verifies compliance with existing policies and procedures.

The Committee also aids the Audit Committee in analysing the efficacy of the Risk Management System and assists the Board in framing, implementing, monitoring, and revising the Risk Management Policy. The Committee is competent to identify, assess and

Annual Report [2023-24]

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Key risks identified 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 Risk 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 Risk Liaisoning with regulatory bodies and industry associations to bring systemic changes for the benefit of industries
Implementation of safety and quality management systems, TQM driven 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 for those
IT and Cyber in possession of Company’s digital assets on regular basis Security Risk
Ensuring adequate update and maintenance of servers and network devices for added security and data protection
Long-term strategic planning and regular management reviews with business teams, Audit Committees and Board meetings

Strategy

2030, delineating a visionary blueprint for our progressive journey. The sustained creation of value for our stakeholders is rooted in our steadfast adherence to ethical standards and principled conduct in all our business dealings. SRF’s Aspirations 2030 furnish us with a clear framework to navigate our strategic focus areas sustainably, aiming to cultivate a legacy of shared value into the foreseeable future.

At SRF Limited, sustainability is deeply embedded in our corporate ethos and is reflected across all facets of our business operations and strategy. We stand firm in our commitment to the conservation of natural resources, prioritisation of our employees’ health and safety, responsible governance, and advancement of community well-being. Our strategic objectives are meticulously crafted to be in sync with our Aspirations

Our Aspirations 2030

Innovation and Technology Leadership

Operational Excellence

Creating new and differentiated offerings that • The Company constantly focusses on developing and deliver superior customer value through innovations investing in new technologies and developing new-age and improvements in quality, cost, efficiency, products to lead the way in serving the emerging needs or environmental benefits, supported by digital of customers and deliver value over the long run technologies for efficiency and reliability. In addition, • SRF’s focus on adequate allocation of resources
nurturing a capable workforce that continues to develop new solutions and provide advanced technical support to effectively implement systems and initiatives is helping in creating sustainable value on an ongoing
• Implementation of various facets of the Total Quality basis. The Company will continue to focus on the Management (TQM) way to create new benchmarks key strategic areas that have contributed to driving across multiple dimensions of Quality, Cost, Delivery, improvements across the ESG material aspects Safety, Health & Environment and Morale (QCDSM)

Professional Reputation and Value System

Environment & Social Responsibility

Professional Customer Reputation and Advocacy Value System
• In line with the core • Building a customervalues, SRF strives focussed, agile and lean to attract, retain and organisation, becoming nurture talent that a trusted, long-term demonstrates high partner of choice with levels of ethics and the customers through integrity while delivering innovative offerings high quality products to and strong customer its customers, thereby relationships enhancing the brand value and reputation of the Company

Our Environment and Social Responsibility will focus on four main aspects:

We will benefit the communities where we work
We will embrace diversity, equality and inclusion in our workforce
We will enhance our focus on the 3R’s - Recycle, Reuse and Reduce
We will transition from traditional energy to renewable energy in the future

Strategic sourcing initiative ensuring uninterrupted supply of raw materials

Strategic Risk

Annual Report [2023-24]

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Risks Material aspects Strategic focus areas Progress in FY24 Aspirations 2030
Energy management Focus on implementing cutting-edge technology and energy efficiency initiatives to achieve energy savings Implemented energy efficiency initiatives, leading to energy savings of ~ 12,243 MWh
GHG emissions Transition to cleaner energy sources to mitigate carbon 1,236 TJ of energy consumed from renewables and
management emissions biomass
Air emissions Drive efforts towards reducing water consumption with water- 16.4 Lakh KL of water consumption met through recycled Operational
efficient technologies, recycling and reusing wastewater and wastewater
Operational
Water conservation sequestering rainwater to the maximum extent possible 7,89,054 KL rainwater harvested and recharged Excellence
Emphasis on the principle of 3R – Reduce, Reuse and Recycle Following 3R principle - recycled materials used as raw
Waste management
and strive to operate in a ‘closed-loop’ through circularity in materials in production
Key material operations Utilisation of onsite generation of fly ash and other process
procurement and Continuous efforts on local sourcing of raw materials and waste as raw material in cement industries
management increasing the use of recycled materials in production 71.88% input material sourced sustainably (including
capital goods)
Concentrated efforts on creating a favourable environment for
employees to nurture and grow through structured learning and
Financial development, career advancement, and rewards and recognition Professional Reputation
programme to keep employees motivated and engaged 2,06,710 training manhours and Value System
Employment Build a workplace that thrives on diversity and inclusion, and Increase in female workforce across the management levels
supports human rights by 23% compared to FY23
Occupational health Endeavour to create a safe and secure work environment 89% satisfaction on our employee engagement survey
and safety
by embedding health and safety in the company culture and 4.6 lakh+ beneficiaries of CSR initiatives in local communities
Local communities implementing robust systems to ensure well-being of each 31.5 Crore CSR expenditure employee 33 CSR projects Relentless efforts to empower local communities through community initiatives focussing on vocational skills, education, natural resource management, among others IT & Cyber- Customer Security Advocacy Emphasis on capitalising new opportunities, expand product portfolio considering the evolving customer expectations and enhancing market presence Implement differentiated business strategies, prudent capital TQM led supply chain improvements, enhancement of internal Total Quality allocation, optimum utilisation of natural resources to lower process efficiency and building a skilled workforce Management operating costs, automate processes and strengthen business Developed innovative products that are socially and environmentally responsible and have zero ozone depleting Innovation and processes that aid in building a sustainable business model substances, low global warming potential (GWP), recyclability Research & Deliver long-term sustainable returns to shareholders by increasing and low carbon footprint Development market capitalisation and higher dividend pay-out 17 patents granted Implementation of Total Quality Management (TQM) for meeting Earnings per share 45.06
evolving customer aspirations and shifting market dynamics by Innovation and Technology
Strategic
bringing systemic changes to maximise plant efficiency and deliver Leadership
diverse solutions
Focus on creating an eco-system which promotes effective
decision-making, accountability and financial prudence No fines levied or non-compliance with respect to
Encourages an ethics-driven culture of accountability and environmental and social aspects
responsibility for all activities with the integration of sustainability Continued to collaborate with industry associations to benefit
Corporate
Regulatory Governance into its decision-making processes to create value the industry and society at large
Constant identification, assessment, monitoring and mitigation of Continued to identify and manage existing as well as emerging Environment and Social
risks to achieve business objectives risks through the robust risk management framework, Responsibility
Focus on robust internal control system and proactive response integrated with the company strategy and planning
strategy towards identified risks
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Annual
Report [2023-24]
Value Creation Model
DRIVING BUSINESS WITH VALUES
INPUT VALUE CREATION APPROACH OUTPUT LONG-TERM VALUE CREATION
Financial Capital Our values Debt equity ratio: 0.44 Strong balance sheet
Net worth: 11,478 Cr. Profit after tax: 1,335.71 Cr. Increased shareholder value
Operating cost: 10,292 Cr. Earnings per share: 45.06 Reaffirmed CRISIL AA+ /Stable/
Net debt: 4,200.41 Cr. Two interim dividends: 3.6 per CRISIL A1+ ratings and India
share each Ratings and Research IND AA+/
Revenue: 13,138.52 Cr. Stable/IND A1+ and IND AA+/Stable Respect Integrity Non-discrimination Excellence Well-being Manufactured Capital Capex spent: 2,347.45 Cr. 15 products launched in Optimum manufacturing capacity
Manufacturing sites: 10 Specialty Chemical Business Diverse product portfolio
Investments in operational excellence Export to 100+ countries Zero product recall incidents
Our Aspirations 2030
Robust TQM practices
Operational
Comprehensive product range
Excellence 17 new patents granted
Intellectual Capital during the financial year Ability to handle complex chemistries
R&D spent: 146.41 Cr. Professional Reputation 149 total patents granted with deep domain expertise 450+ Dedicated R&D professionals and Value System up to FY24 Development of products leading to positive impact on environment and 37 Patents filed during the year Implementation of advanced society digital technologies 443 Patents filed up to FY24 Customer Advocacy Innovation and Human Capital 13.28 average hours of Attraction & retention Technology Leadership Workforce: 15,556 training of workforce Safe working environment Total training hours: 2,06,710 Environment & Social 89% satisfaction on our Productive workforce employee engagement survey Spending on employee wellbeing Responsibility 100% return to work rate High employee engagement & satisfaction levels Industry benchmark safety practices Social and Relationship Capital 4.6 lakh+ beneficiaries from Inclusive supply chain Community spend: 31.5 Cr. community development Healthy and long-term relations
Key enablers projects with stakeholders
Number of CSR projects
implemented: 33 25.54% material sourced from Making communities resilient
MSMEs
Alignment with Make in India Differentiated Customer Operational
business strategy centricity Excellence
Natural Capital 19.8% of electricity from Ecovadis Gold Certification for our
renewable sources facility in Dahej
Total energy consumed:
12,680 TJ Digitisation & Stakeholder Corporate 12,243 MWh of energy saved Climate change mitigation
Utilisation of greener fuels Innovation engagement Governance through EE measures
Total Water withdrawal: 16,41,263 KL of Water recycled
54,49,252 KL Compliance with environmental
regulations
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CORPORATE OVERVIEW
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Capital-wise Performance

This section showcases SRF’s

performance across the six capitals as per IIRC framework namely Financial Capital, Manufactured Capital, Intellectual Capital, Human Capital, Natural Capital, and Social & Relationship Capital. Each capital plays a unique and indispensable role in our ability to create sustainable value for our stakeholders while simultaneously navigating the complex challenges of our industry. In this section, we present an overview of the six capitals, demonstrating their importance and the strategic imperatives they entail for our company’s continued growth and resilience.

Manufactured Capital

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

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

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

Social & Relationship Capital

Financial Capital

Sources include debt and equity financing and cash generated by operations and investments

Funds are being invested in various CAPEX projects throughout the business

Natural Capital

Natural capital

inputs such as raw materials, water, fuel and renewable energy, etc., critical to operate efficiently

Fundamental part stakeholders play in creating & sustaining an enabling external environment for the business to flourish

Consideration of all relevant factors while making investment decisions

Annual Report [2023-24]

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Financial Capital

SRF is committed to achieving longterm growth through a strategic mix of debt and equity. We fully recognise and appreciate the role that financial capital plays as a fundamental keystone within our organisational structure. Our robust cash flow monitoring system allows us to identify growth opportunities and streamline costs across all departments. This ensures we allocate the right amount of capital for growth projects while maintaining sufficient liquidity to navigate any economic challenges.

Material issues addressed

Corporate Innovation, Governance Research & Development

Inputs

` Cr. 10,292

Operating Cost

` Cr. 13,410

Capital Employed

Outputs

` Cr. 13,138.52

Revenue

` Cr. 2,743.84

EBIDTA

` 45.06

EPS

Expansion

We place a strong emphasis on driving both sustainability and expansion across our business. We are diligent in ensuring that capital is judiciously allocated for growth projects, while also preserving an optimal level of liquidity to safeguard and sustain our business activities amidst diverse economic conditions. We enhanced our capabilities and cultivated expertise in novel chemistries.

In FY24, we have incurred capex of approx. ` 2,347.45 crore for setting up greenfield and brownfield projects across businesses with a larger share of investments in Chemicals Business. To seize future market opportunities in Specialty Chemicals, we commissioned nine dedicated facilities at our Dahej facility during the year. These strategic

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investments have positioned us to penetrate unexplored markets, pursue novel opportunities for expansion, and propel growth that substantially enhances our value. Apart from commissioning new facilities, we worked on cost structures, ensuring we efficiently run our plants.

Performance

In FY24, we recorded a total turnover of 13,138.52 crore. Our balance sheet remains strong with PAT of 1,335.71 crore and EBIDTA of 2,743.84 crore. Our earnings per share stands at 45.06 for the year. We disbursed two interim dividends of ` 3.6 per share each during this financial year. We remain committed to our objective which is to provide a favourable long-term value creation for our shareholders.

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Annual Report [2023-24]

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Overview of the company’s financial performance

Profit after Tax (` Crore)

Earnings Per Share (EPS) (`)

Profit	after Tax(`Crore)
FY24	1,336
FY23	2,162
FY22	1,889
FY21	1,198
FY20	1,019

FY24 FY23 FY22 FY21 FY20

45 73 64 41 35

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Net Worth (` Crore)

Business-wise performance

FY24	11,478
FY23	10,326
FY22	8,564
FY21	6,855
FY20	4,932

Each business has significantly contributed to our overall growth, driven by strategic initiatives and market responsiveness. Strong and consistent performance of all three businesses over the past five years underscores the effectiveness of our diversified businesses and commitment to long-term value creation

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Business-wise segment revenue (` Crore)
16,000
383
14,000
1,894 454
12,000 328
1,898
2,085
10,000 5,183
223 4,489
8,000 273 1,240 4,779
6,000
1,358
3,292
4,000 7,411
2,604 5,241 6,297
2,000 3,645
2,975
–
FY20 FY21 FY22 FY23 FY24
CB PFB TTB Other businesses (CF and LF)
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Business-wise EBIT (` Crore)
3,500
35
3,000 20 262
556
2,500 471
93
2,000 26 274
946
177 207
1,500
32 2,341
151 898
1,000
556 1,627
1,397
500
728
511
–
FY20 FY21 FY22 FY23 FY24
CB PFB TTB Other businesses (CF and LF)
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Ratings: A picture of trust

Impact of financial capital on other capitals

CRISIL Ratings has reaffirmed its ‘CRISIL AA+ /Stable/CRISIL A1+’ ratings on the bank facilities and debt instruments of SRF Limited. India Ratings and Research has rating IND AA+/Stable/IND A1+ and IND AA+/Stable for the Company’s “Fund Based and Non-Fund Based Working Capital Limits” and long term loans categories respectively. These evaluation by external rating organisation continue to reflect a strong business profile driven by market leadership, diversified revenue, high operating efficiency, and a healthy financial profile.

Manufactured Capital: Enables expansions and enhances current capabilities

Intellectual Capital: Enables investments in R&D and cutting-edge technologies

Human Capital: Helps streamline processes, attracting and retaining top talent

Natural Capital: Investment in clean energy, conservation of natural resources

Social & Relationship Capital: Facilitates partnerships and collaborations

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Annual Report [2023-24]

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Intellectual Capital

Material issues addressed Innovation, Total Quality Employment Research & Development Management

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Strong in-house Highly innovation skilled R&D capabilities and professionals focussed area Strengthening our R&D capabilities Solid product State-of-the-art funnel facilities

Inputs

SRF recognises Research and Development (R&D) as an engine for future growth. We strategically channelise our R&D efforts to align with market demands and customer needs, positioning ourselves at the forefront of innovation and customercentric solutions. We empower our teams across our R&D centres in Bhiwadi and Gurugram to innovate and translate the outcomes into tangible breakthroughs thus positioning us strategically in the market.

Patents applied during the year

` 146.41 Cr.

R&D spent

450+

R&D workforce

Outputs

Patents granted in FY24

149

Total patents granted up to FY24

Our R&D initiatives frequently encompass partnerships with our clients to co-develop products and processes. Such collaborative ventures have consistently resulted in success for tailor made products, fostering a culture of cooperation and a strong collaborative bond between our Company and our Customers.

Chemicals Technology Group

The Chemicals Technology Group (CTG) at SRF is at the forefront of pioneering new product and process technologies for our Fluorochemicals and Specialty Chemical businesses. The team’s key focus is on innovating intermediates that cater to the huge demands of Active Ingredients (AI) and Non-Active Ingredients for the agrochemical and pharmaceutical sectors, as well as developing advanced refrigerants for future applications. CTG’s rigorous approach to IP creation has resulted in four hundred and forty-three patent applications filed to date.

By harnessing the collective expertise of more than 450+ dedicated professionals stationed across various sites and specialised engineering centres, the CTG

Annual Report [2023-24]

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is determined in its mission to elevate SRF’s process development proficiency. The team is committed to mastering the art of scaling up and seamless commercialisation of new products, further establishing SRF’s position as industry leader. SRF continues to invest in R&D to create propositions for the future and Revenue expenditures of ` 146.41 crore was spent during FY24

Customer Collaboration

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 and partnership between us and our customers. We continue to collaborate with agrochemical innovators for innovations directed towards the farm sector. Additionally, we are also collaborating with innovators to introduce more complex downstream products.

R&D in Technical Textiles Business

SRF has a dedicated R&D facility at its Technical Textiles Business manufacturing site in Manali, near Chennai, India. It houses world-class infrastructure and a pilot facility for polymerisation, spinning, twisting, and dipping for new products and process development.

Specialty Chemicals: Expertise in Chemistries

We take pride in our profound expertise in chemistry. It serves as a base for our innovative solutions and product development. Our team of highly skilled professionals brings extensive knowledge and experience across various chemical disciplines. This deep understanding allows us to tackle complex challenges and develop innovative solutions.

R&D in Packaging Business

At the Indore SEZ facility, our state-of-the-art R&D facility is comprehensively outfitted with cutting-edge technologies such as a pilot polymerisation plant, and pilot-scale printing, lamination, and coating machines. It also features advanced analytical tools like GC-MS/ MS, GPC, and more, enabling us to replicate and refine customer processes at pilot scale efficiently. This strategic setup is instrumental in significantly reducing the duration from initial concept to market deployment.

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

Organocatalysis Nitration Fluorination
Chiral Asymmetric Diazotisation Chlorination
chemistry Synthesis
Sulphonation Hydrogenation Halogenation
Tosylation N-Butyl Isomerisation Bromination
Lithium
Amination Grignard Iodination
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New Product & Process Development

In our Chemical Business

We launched 15 new products catering to agrochemical and pharma sectors. These products have good long-term prospects and are at a different maturity level of market potential and have a future growth potential

We have our focus on development of high end molecules. Our R&D team worked on over 44 molecules and many products were successfully taken up for process development. Additionally, more than 34 molecules were taken up for the scale-up studies and 70% were commercially produced in multipurpose and dedicated plants

Our team has developed “467A” which is an ideal retrofit for R22 which has a high greenhouse warming potential. 467A is the First refrigerant ever in India to receive certificate from ASHRAE

1986

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Coated Fabrics

Coated Fabrics Business was set up in 1986. The business offers a diverse range of products for several applications in varied segments such as architecture, lifestyle, sports, advertising, defence, mines, food & agriculture, automobile, and transportation.

Our expertise in chemistry is reflected in our robust portfolio of patents and successful commercialisation of products over the years.

Annual Report [2023-24]

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In our Packaging Films Business

We commercialised multiple BOPET and BOPP products

In our Technical Textiles Business

We developed new type of Solid Woven Fabric which has been accepted well by the market

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In our Other Businesses

We have developed food-grade liners compliant with USFDA and IS standards, enhanced with value engineering, specially tailored for the Jal Jeevan Mission, an initiative initiated by the Ministry of Jal Shakti of Government of India with the aim to provide 55 litres of tap water to every rural household per capita per day regularly on long-term basis by 2024
We undertook commercialisation of TUF 5 & TUF 6, offering a variety of colors and finishes
We developed high-tensile and tear-resistant fabric for heavy-duty tarpaulins
Introduced FRAS non-lacquered product

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Advancing Cybersecurity

The seamless operation of the Company is dependent on the assurance that its information systems and corresponding data are safeguarded with a high degree of security and confidentiality. At SRF, we have a well-defined cyber risk management policy and has implemented various systems to protect from cyber attacks. Based on the cyber security policy, we have established processes and controls to mitigate any kind of cybersecurity risk. The processes and controls consist of secure data centres, use of secure VPN, encryption of Intellectual property with IRM solutions to protect against data exfiltration etc. We give regular awareness sessions to ensure they are fully aware against any cyber security threat.

Refer Principle 9 of BRSR for strategies to mitigate cyber security risks

1989

Digitalisation

To propel enterprise transformation, the Company has invested in cutting-edge and scalable digital platforms that emphasise process digitisation, digital workflows, analytics, automation, mobile apps and cloud product suites. Consequently, strategic decision-making has been expedited, and the Company’s IT landscape is based on the latest technology.

Impact of Intellectual Capital on other capitals

Manufactured Capital: Improved product design, manufacturing techniques, and operational efficiency
Financial Capital: Enhances SRF’s intangible value and market positioning
Human Capital: Enriches the knowledge, skills, and capabilities of our people
Natural Capital: Implement environmentally friendly technologies and processes leading to efficient resource use
Social & Relationship Capital: Stronger networks, partnerships, and societal contributions

Entered Chemicals Business to manufacture refrigerants

SRF started its journey in Fluorochemicals in 1989, manufacturing refrigerants at our facility in Bhiwadi, Rajasthan, India.

SRF’s Fluorochemicals Business holds the status of being a refrigerant supplier of choice with pride, serving customers in more than sixty countries worldwide.

Annual Report [2023-24]

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Manufactured Capital

Our state-of-the-art products manufactured by Chemical Business, Packaging Films Business and Technical Textiles Business continues to be a key driver of growth for the Company. By delivering exceptional products that are reliable and meet customer needs, we continue to strengthen our market leadership position.

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50 Years of Manufacturing Excellence

This year, SRF Limited proudly commemorates 50 years of manufacturing excellence. Since the inauguration of our first plant in 1974, we have evolved into a manufacturing powerhouse with businesses spanning multiple verticals. Over five decades, our path has been illuminated by innovation. Our golden legacy is not just a reflection of the past but a beacon guiding us towards an even brighter future.

Inputs

Aligned with our growth ambitions, we are continuously expanding along with strong focus on bringing efficiencies in our operations. 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.

Material topics addressed

Occupational Key Material Health & Safety Procurement and Management Total Quality Innovation, Management Research & Development Employment

Utilising the best facilities and top-tier production processes, we consistently produce high-quality, reliable goods. Our extensive selection of products is crafted to deliver diversity, sustainability, and added value for our customers.

` Cr. 2,347.45 Capex spent

10

Total manufacturing facilities

Outputs

Higher sales volume

100+

Countries we export

Launched 15

new products in chemical business

Annual Report [2023-24]

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Our Manufacturing Excellence

Specialty Chemicals Business

We manufacture Organic and Inorganic intermediates that find application in Material Sciences, Surface Chemistry, products and intermediates for the agrochemical and pharma sector. Our dedicated manufacturing facilities have the capabilities to manufacture products up to 250 MT and 3,000 MTPA for agrochemical and pharma sector respectively.

Fluorochemicals

We are the producers of refrigerant gases (R22, HFC blends), Chloromethanes, Intermediates for Specialty Chemicals, Hydrofluoric Acid, and PTFEs. Our plants in Dahej, Gujarat and Bhiwadi, Rajasthan are well equipped to handle the growing demands of these products.

Our backward integrated facilities for production of refrigerant gases, industrial solvents and PTFE makes us more efficient and places our fluorochemical business in a strong position.

Our manufacturing process includes production of industrial chemicals such as Methylene, Dichloride, Carbon Tetra Chloride and Chloroform etc. We have ventured into Fluoropolymer space by commissioning of PTFE plant under the brand “Flonio” and we are also in the process of setting up of three new fluoropolymers facilities.

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

In-depth Strong
expertise in technology play
fluorine production
SCB’s unique value
proposition
Contract
Cost effective manufacturing with
tech. participation
----- End of picture text -----

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Packaging Films Business

The Packaging Films Business has grown from strength-to-strength since its inception. Our first BOPET line and BOPP line were commissioned in 1995 and 2013 respectively. Today, our Packaging Films business is equipped with seven state-of-the-art BOPET and

resin lines and four BOPP lines. Our manufacturing operations consists of BOPET and BOPP production with value-add facilities of Coating, Metallisation and Surface Modification.

Packaging Films Business value chain

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

Our operations
Manufacturing of
Our suppliers PET resin Our customers
BOPP
BOPET
Process value additions such as Coating,
Metallisation and Surface Modification
----- End of picture text -----

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Annual Report [2023-24]

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of rolled aluminium foil. Additionally, we are also in the process of commissioning of Capacitor Grade BOPP Film to the existing portfolio in line with the strategy of growing in adjacencies.

Our products hold a critical position in our customer’s supply chain.

The flexible packaging solution is used for packaging of food items – confectionery, dairy, spices etc. and non-food items such as perfumes, shampoos, detergents. For us, manufacturing means touching the lives of individuals. Hence, we take utmost care while manufacturing our products

SRF is one of the largest manufacturers of a spectrum of standard and specialty Bi-axially Oriented Polyethylene Terephthalate (BOPET) and Bi-axially Oriented Polypropylene (BOPP) films, sold under the PETLAR[TM] and OPLAR[TM] brand names respectively.

The industrial packaging is used in air ducting, cables, solar panels, electronics thus ensuring provision of sustainable products to our customers

During the year, we added an aluminium foil production facility in Jetapur, Madhya Pradesh under one of our subsidiaries. The facility which is one of the best-in-class and is good manufacturing practice (GMP) compliant, can produce approx. 20,000 MTPA

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Technical Textiles Business (TTB)

We are India’s largest manufacturer of technical textiles and also global leader for most of the products manufactured by this business. Our four manufacturing plants in Madhya Pradesh (1) and Tamil Nadu (3) are capable of producing Nylon-6 Tyre Cord Fabrics, Chips, Industrial Yarn, Polyester Tyre Cord Fabric. Our plants have Japanese technology to ensure the best quality for our customers.

Our business has deep expertise in manufacturing of tyre cord fabrics, offering comprehensive solutions ranging from polymerisation to fabric dipping by utilising advanced technologies.

Coated Fabrics

Our Gummidipoondi plant in Tamil Nadu is equipped with world-class facilities for manufacturing yarn, weaving, coating, printing and lacquering, it is fully integrated to manufacture coated fabrics with PVC formulation. Our solutions include wide range of fabrics from 350 gsm to 1500 gsm and coating thickness from 0.3 mm to 1.5 mm in more than 100 shades.

Laminated Fabrics

Our manufacturing facility in Kashipur, Uttarakhand has a monthly capacity to produce 75 lakh sqm of cold laminated front lit, cold laminated back lit and hot laminated protective covers. Our manufacturing process is equipped with a state-of-the-art fabrication machine with automatic heat sealing facilities to produce tarpaulins.

Total Quality Management

“SRF management approach is deep-rooted in the principles and techniques of Total Quality Management (TQM). This system centres around three key objectives: satisfying the needs of customers and stakeholders both now and in the future, utilising systematic and scientific methodologies, and engaging every employee in continuous improvement efforts. TQM practices extend across the entire value chain, from product conceptualisation to sales and enabling functions. By doing so, we optimise strategic decisions and deliver superior outcomes in terms of Quality, Cost, Delivery, Safety, and Morale (QCDSM) for our stakeholders.”

In FY24, our company continued to enhance its flagship Problem Solving capability-building programmes with more of our workforce getting certified at the Basic Blue Level.

66

new certifications at the Basic Blue level in FY24

Additionally, the advanced PSP Silver program saw increased utilisation of data analytics and machine learning tools, leading to new product developments, customer approvals, and significant cost structure improvements across various business lines.

Our expansion efforts, including the establishment of greenfield projects and expansions, incorporated upstream methods such as FMEA (Failure Mode and Effects Analysis) and project management tools. These measures aimed to reduce potential failures, mitigate risks, and facilitate near-vertical ramp-ups. In all our newer ventures, we prioritised quality assurance methods to ensure product and process excellence right from the outset.

Furthermore, our commitment to continuous improvement has been reinforced through renewed programmes and campaigns. Notably, we expanded the TIE groups (autonomous improvement groups led by workmen) to over 250 in our growing Chemicals businesses. This year more than 5,000 kaizens were implemented within the Chemicals division. This stand as a testament to the depth of improvement and the satisfaction of working at SRF.

250

TIE groups for process improvements

Annual Report [2023-24]

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Packaging Films Business

As we embrace digital transformation, our Total Quality Management (TQM) practices evolve to meet the evolving needs of SRF, incorporating online courses and data-driven decision-making processes.

Major raw material used in Packaging Films Business (in 000’ MT)

Chemicals Business
Major raw material used in Chemicals
Business(in 000’ MT)
100
57
74
29
100
69
74
29
PET chips
PP chips
PTA
MEG
FY 2022-23
FY 2023-24
Technical Textiles Business
Major raw material used in Technical
Textiles Business(in 000’ MT)
63
14
44
15
Caprolactam
Pet chips
FY 2022-23
FY 2023-24
More than5,000
kaizens implemented
Raw Material Efciency
At SRF, our endeavours are focussed on the efcient
utilisation of resources, with a particular emphasis
on the responsible procurement of raw materials.
We are steadfast in our commitment to elevate the
incorporation of recycled inputs within our production
routines by continuously reengineering our products
and spearheading innovation. This strategy not only
mitigates our ecological footprint but also curtails the
generation of waste at its origin, by advocating for
the recycling and repurposing of materials used in our
manufacturing processes.

100
100
PET chips

93
93
Fluorspar

Chemicals Business

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Major raw material used in Chemicals
Business (in 000’ MT)
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93
Fluorspar
93
Coated Fabrics
Liquid 166
Chlorine 194 Major raw material used in Coated Fabrics
(in 000’ MT)
52
Methanol 2.4
57 PET yarn
3.8
Sulphuric 123
Acid 117 Process 5
chemicals 6.7
Ethylene 20 FY 2022-23 FY 2023-24
Dichloride 21
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FY 2022-23 FY 2023-24
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Laminated Fabrics

Major raw material used in Laminated

Business (in 000’ MT)

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Major raw Business(in	material used in Laminat 000’ MT)	ed
PVC Resin		6.1 6.2

Calcium Carbonate		5.4
(Uncoated)		5.4
FY 2022-23	FY 2023-24

Impact of manufactured capital on other capitals

Financial Capital: Enhancing profitability and overall value creation for a company Intellectual Capital: Innovation to enhance productivity Human Capital: Trained manpower and safe working conditions Natural Capital: Effective utilisation of raw materials Social & Relationship Capital: Support to suppliers and dealers to enhance growth

1990

Shri Ram Fibres renamed as SRF

Shri Ram Fibres diversified beyond technical textiles and entered the chemicals business to manufacture refrigerants. Consequently, Shri Ram Fibres was renamed SRF Limited to better represent its strong, independent, industry-leading businesses.

Annual Report [2023-24]

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Human Capital

SRF values its employees as its most precious asset and continuously strives to cultivate a healthy and inclusive workspace that fosters their growth and ambition. We firmly believe that embracing diversity and promoting inclusion are not just moral imperatives but critical drivers of our success that enrich our perspective and drive innovation. In line with our business objectives, our approach to human capital development, centres on nurturing fulfilling careers, cultivating strong leadership skills, and ensuring exceptional employee experience

Material issues addressed

Occupational Employment Health & Safety

Inputs

7,372

Permanent Workforce

156

Female employees in management role

2,06,710

training hours of workforce

Outputs

22.8%

increase in women in management role

89%

satisfaction on our employee engagement survey

Employee Engagement

At SRF, we strive to create a workplace where every individual feels appreciated and empowered. We believe that people come first. We aim to provide an environment where one experiences fulfilment and joy through challenging roles. We proudly craft and implement forward-thinking, best-in-class, and employee-centric policies with our employees’ comprehensive well-being as our focal point.

We foster a culture emphasising accountability, inclusivity, and creativity, ensuring our entire workforce is motivated to strive for personal and professional development. Our organisation has implemented numerous initiatives to engage employees and

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Our company’s commitment to our workforce extends beyond professional development; it encompasses a steadfast dedication to their health, safety, and overall well-being. We recognise that our workforce is our most valuable asset, and their welfare is paramount. Therefore, we have implemented comprehensive health and safety protocols that ensure a secure and supportive work environment where employees can thrive.

cultivate a productive work environment. Some of those initiatives are:

Fostered meaningful connects with the families of our employees

Introduced an array of engaging events including an Annual Family Day, employee picnics, and retreats, which cater to the varied interests of our team members, providing them with delightful breaks and a chance to unwind from their daily routine

Honoured the commitment of our employees by presenting Long Service Awards

Annual Report [2023-24]

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Hosted Protsahan celebrations which reflect our deeply held value of appreciation for hard work
Organised summer carnivals for our employees’ children, that underscored our dedication to including families in our corporate community
Organised annual sports events that showcased the vibrant and energetic spirit of our employees throughout the Company

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FY23 FY24
S.
Total employees by category
No. Male Female Male Female
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S. No.	Total employees by category	FY23	FY23	FY24	FY24
		Male	Female	Male	Female
1.	Senior Management	70	4	71	4
2.	Middle Management	200	19	214	21
3.	Junior Management	663	104	702	131
4.	Non-Management Staf	5,887	224	6,076	183
5.	Temporary/Contractual Workers	6,666	289	7,787	367
6.	Others*	102	27	0	0

In FY 2022-23, third party workers were reported under others category. However, this year, we have included those in contractual workers.

1995

Packaging Films Business

Our journey in the Packaging Films Business started in 1995 when we acquired a BOPET film plant at Kashipur in India from M/s Flowmore. We have since then grown beyond the national boundaries and become one of the leading manufacturers of both BOPET as well as BOPP films globally.

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Learning & Development

SRF Limited firmly believes that the growth and development of its employees are directly linked to the growth of the organisation. To facilitate comprehensive professional growth of our workforce, we extend a broad assortment of training avenues, varying from experiential on-site learning to more formal classroom-based education. Additionally, we arrange various other continuous learning programmes, training sessions designed to regularly improve their performance, productivity and enhance their skills and competencies. This strategy underlines our commitment towards our employees' development, ensuring that our team remains adept and up to date with the latest industry standards and practices.

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FY23 FY24
S. Total training hours for permanent
No. and contractual employees Male Female Male Female
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S. No.	Total training hours for permanent and contractual employees	FY23	FY23	FY24	FY24
		Male	Female	Male	Female
1	Senior Management	312	1	561	20
2	Middle Management	3,682	158	7,503	413
3	Junior Management	24,368	2,012	27,105	4,247
4	Non-Management Staf	1,27,007	1,852	1,51,809	3,119
5	Temporary/Contractual Workers	15,336	1,428	11,427	506

Cultivating future leaders is a critical component of today’s leadership responsibilities. In line with this, we have instituted a comprehensive program designed to holistically nurture employees who display future potential, equipping them for future senior managerial positions. This structured program receives substantial financial investment and dedicated time from our leadership team, paired with bespoke training modules to foster their professional growth. Through this endeavour, we have successfully constructed a robust succession plan.

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Annual Report [2023-24]

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Diversity & Inclusion

SRF Limited is actively working towards fostering an empowering environment that embraces diversity, equity and inclusion. The organisation is committed to promoting a workplace that is free from any form of discrimination on gender identity, age, ethnicity, sexual orientation, disability, faith, marital status, etc. Harassment of all forms is strictly prohibited and handled through appropriate mechanisms. At our organisation, we take pride in cultivating not only a diverse workforce but also an environment where every individual feels they belong and can thrive. Through ongoing communication and sensitivity trainings focussed on gender diversity, we have dedicated ourselves to dismantling unconscious biases and promoting a culture of inclusion at all levels.

Our consciously adjusted hiring strategies aimed at increasing the representation of women in our workforce have led to increase in the percentage of women by 6%. This marks a stride towards gender parity and reflects our commitment to diversity.

We believe in creating an inclusive workplace that extends beyond hiring practices. It necessitates an ecosystem that supports the well-being of all employees. To this end, we have a strong Prevention

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of Sexual Harassment (POSH) framework in place that ensures every employee operates in a safe and respectful environment. Robust Internal Committees (ICs), staffed by mature, unbiased, and knowledgeable members, now oversee our POSH policies, and are supplemented by educational programmes to raise awareness about harassment.

Our commitment to inclusivity is evident in our approach to ensuring accessibility for people with disabilities (PwD). Complete audits across all our facilities have been conducted to identify and rectify any obstacles to accessibility, thus fostering an environment where our diverse workforce can contribute to their full potential.

Moreover, recognising the unique challenges faced by expectant and new mothers, we have launched a specialised maternity counselling programme that provides vital prenatal and postnatal support to women within our organisation. This programme has also been extended to include the spouses of our male employees, underlining our dedication to the well-being of our employees’ families as well.

Skill Evaluation System

Our skill evaluation system serves as a cornerstone in our commitment to fostering the continuous development and improvement of our employees. Through this system, we employ a structured approach to assess and enhance the skill levels of our workforce, ensuring they remain equipped to meet the evolving demands of their roles and contribute effectively to our organisational objectives.

Our skill evaluation system pivots around three core assessment methods: Assignment, Observation, and Interview. Each assessment parameter is designed to capture different aspects of an employee’s skills and competencies, with varying weights assigned to reflect their relative importance in the overall evaluation process.

Annually, we conduct comprehensive evaluations across a broad spectrum of technical parameters to gauge the proficiency of our employees. These parameters encompass a diverse range of areas, including Job-Specific Competencies, Environment, Health, and Safety, Chemicals and Energy Management, Emergency Response Plan, Skill-Specific Competencies, Logical Reasoning and Aptitude.

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By conducting these comprehensive evaluations, we not only identify areas for improvement but also provide targeted development opportunities to support our employees in enhancing their skills and advancing their careers. Our skill evaluation system is not just an assessment but a catalyst for continuous learning, growth, and excellence within our organisation.

Human Rights

At SRF, we maintain a strict policy of zero tolerance towards any form of discrimination or harassment. Our commitment entails upholding human rights, prohibiting any form of human rights abuses, and effectively resolving grievances from affected stakeholders.

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
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 strictly prohibited across all units and discouraged with business associates and partners such as suppliers and contractors.
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
At SRF, we foster a positive and supportive workplace atmosphere, ensuring equal prospects for career advancement for all staff members. The organisation’s leave guidelines incorporate specific options for both maternity and paternity leaves, available to every employee. Upon return from taking parental leave, individuals are granted equitable opportunities to continue their professional trajectory.
Committed to ensuring continuous upgradation of the skills and competence of employees
Well-being of employees
Reporting human rights violations

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

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Parameters FY24 FY23
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Parameters	FY24	FY23
Number of employees entitled to parental leaves during the reporting period	7,402	7,171
Number of employees who took parental leaves during the reporting period	491	463
Number of employees who re-joined back after parental leave during the reporting period	478*	462

*12 employees are continuing on parental leave and will re-join in FY 2024-25

Annual Report [2023-24]

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Performance and Career Development

of this practice is to instil a culture that values relentless progress and fosters a commitment to lifelong learning.

Performance and career development evaluations are essential components of an organisation’s strategic talent management. They enable structured dialogues between employees and their managers around performance, aspirations, proficiencies, developmental areas, and potential career advancement pathways. The process comprises establishing and monitoring key performance indicators, offering ongoing performance feedback, and executing comprehensive performance assessments at the end of a specified timeframe. We also allow our employees to discuss their career interests and ambitions, identify skills and competencies that need to be developed to advance in their careers, and set goals for their career growth. The ultimate objective

Rewards and Recognition

SRF Limited has established a merit-based Rewards and Recognition program designed to motivate and retain a proficient and varied team of employees. This program encompasses a wide range of acknowledgements, ranging from financial incentives to non-financial rewards, casual day-to-day expressions of appreciation to formal and structured forms of recognition. The purpose of rewarding performance is to build an organisational culture where good work done by team members is valued, efforts are recognised and awarded in a timely manner and rewards are commensurate with the efforts and achievements.

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Semi-formal & Monetary Award
Non-monetary Significant
Happy Hours Contribution Award
Work Anniversary Special Achievement
Awards
Appreciation Cards
Long Service Award
Team Celebration
Spot Awards
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Formal Award Informal/Day to Special Achievement Day Award Awards Verbal and Written Significant appreciation Contribution Award Team appreciation Protsahan Awards

Formal Award

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Online Rewards and Recognition

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

Grievance Redressal

We foster a culture of transparency and open dialogue within our organisation, where all stakeholders, including employees, investors, shareholders, and value chain partners, are encouraged to share their feedback, suggestions, and concerns. A comprehensive grievance mechanism has been put in place to address and resolve issues promptly and efficiently; it encompasses personalised meetings, feedback surveys, and involvement in associations. Grievances may pertain to policy-related matters, working conditions, health and safety practices, employee misconduct (workers or management), etc. Our goal is to maintain a workplace that upholds accountability and pursues continuous improvement, ensuring that the perspectives of all connected parties are acknowledged and respected.

Labour Relations

SRF Limited is committed towards ensuring positive labour relations based on principles of fairness, respect, and collaboration. By prioritising employee well-being and engagement, complying with labour regulations, and promoting employee development, we aim to create a conducive work environment where our workforce can thrive and contribute to the long-term success of the organisation. We adhere to all relevant labour laws and regulations in the regions where we operate. Our commitment to ethical labour practices extends beyond legal requirements to encompass internationally recognised standards, such as those outlined by the International Labour Organisation (ILO). We conduct regular assessments to ensure compliance and identify areas for improvement.

Furthermore, SRF has various committees that bring together management and non-management

representatives to facilitate clear and open channels of communication. These committees, which span employee associations, canteen management, as well as health and safety, make significant contributions to employee contentment and welfare. The management not only recognises but also endorses these groups, advocating continuous interaction and amicable resolution of issues.

Occupational Health & Safety

We are unwavering in our commitment to providing a safe, healthy, and positive working atmosphere for our entire workforce. Our top priority is to create a workplace that is free from injuries and fatalities. One of the primary areas of focus for our operations is the implementation of comprehensive health and safety (H&S) system at all our manufacturing sites which adheres to ISO 45001 standards.

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S.
No. [Category] Unit FY23 FY24
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S. No.	Category	Unit	FY23	FY24
1	Lost Time Injuries (per million man-hours worked)	No.	0.16	0.19
2	First Aid Injuries (nos.)	No.	180	196
3	Million man-hours worked	No.	30.57	37.20

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Annual Report [2023-24]

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Safety Training

In the dynamic environment of manufacturing plants, health and safety of workers is paramount. Recognising this, SRF has conducted comprehensive health and safety trainings to mitigate risks, promote a culture of safety, and uphold regulatory compliance. These trainings not only safeguard the well-being of employees but also contribute to operational efficiency and organisational reputation.

Impact of the trainings on company’s performance:

Key components of Health & Safety trainings are:

Reduced Accidents and Injuries: Proper training has equipped employees with the knowledge and skills to identify and mitigate unsafe acts and unsafe conditions, leading to fewer workplace accidents and injuries.

Hazard Identification and Risk Assessment

Safe work practices

Improved Productivity: A safe work environment boosts employee morale and confidence, resulting in increased productivity and efficiency.

Machinery and equipment safety

Regulatory Compliance: Compliant with health and safety regulations, avoiding potential fines and legal liabilities.

Chemical handling and safety

Emergency preparedness

Cost Savings: Investing in preventive measures through training reduced costs associated with workplace injuries, compensation claims, and property damage.

Health & Wellness

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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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1995

Acquired the Tyre Cord Division of CEAT Ltd.

SRF acquired the nylon tyre cord division of CEAT Ltd. Located at Malanpur, near Gwalior, the cost of the acquisition was ` 325 crore. Back in the day, it was the biggest acquisition in India Inc’s history. With this acquisition, SRF also became the largest tyre cord company in India and the second largest globally and has since maintained its position.

Annual Report [2023-24]

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 at the same time a driver of Company’s growth. We are dedicated to minimising our environmental footprint by implementing sustainable practices across all facets of our operations.

Material issues addressed

Energy GHG Emission Air Water Waste Management Reduction Emissions Conservation Management

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Inputs

TJ 12,680

of energy consumed

KL 48,69,028

of water consumed

Outputs

TJ 1,236

of green energy

KL 16,41,263

of water recycled

Sustainability for us is a continuous journey rather than a final destination. We firmly believe in fostering a culture of excellence and sustainability across all our operations. Our commitment to quality, environmental responsibility, occupational health and safety, and energy management is encapsulated in our robust Integrated Management Systems (IMS). These systems, built upon internationally recognised standards such as ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, and ISO 50001:2018, serve as the cornerstone of our operational framework.

Energy Management

We are dedicated to optimising our energy consumption throughout our operations with a strong commitment to minimise our carbon footprint. We prioritise the implementation of robust energy management procedures and systems, and we actively adopt innovative solutions to reduce energy usage, improve operational efficiency, and increase the share of renewable energy in our energy mix.

Chemical Business, Dahej: Increase in procurement of renewable energy from 2,375 MWh in FY 2022-23 to

Technical Textiles Business procured

MWh 42,990

MWh 39,891

of renewable energy through group captive power plants.

in FY 2023-24.

Annual Report [2023-24]

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19.8% electricity from renewable sources

In FY 2023-24, our renewable energy and biomass consumption accounts for

TJ 1,236

We are implementing efforts to expand our renewable power portfolio by implementing solar power generation projects and entering into power purchase agreements with third-party agencies.

Our business-wise total energy savings

Chemicals

Packaging Films

MWh ~6,469

MWh ~1,557

Technical Textiles

Coated Fabrics

MWh ~2,895

MWh ~1,322

Refer principle 6, Essential indicators for more details.

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GHG Emissions

Our GHG inventory consists of Scope I & Scope II emissions. Inventorisation has been done in line with the GHG Protocol Corporate Accounting and Reporting Standard. Through transparency, accountability, and continuous improvement, we are committed to playing our part in mitigating climate change and building a more sustainable future for all. We have implemented a number of energy efficiency measures across our operations to reduce our GHG footprint. We are also focussing on reducing our dependency on fossil fuels and increasing the share of renewable energy in our portfolio.

We are the first chemical company in India to obtain the ISO 14064-1:2006 certification for verification of our greenhouse gas emissions. In accordance with international norms, we have completely stopped the production of halons and phased out Chlorofluorocarbons (CFC) from our operations and are now investing in newer, more sustainable technologies.

Air Emissions

We track the air pollutants originating from our operations. We have systematically implemented monitoring mechanisms on essential utilities, including boilers and diesel generators to ensure that the release of these pollutants is not only under strict surveillance but is also consistently regulated to meet environmental safety standards. The comprehensive monitoring regime is testament to our initiative in keeping emission levels significantly below the stipulated thresholds, thereby minimising our ecological impact and contributing positively to community well-being.

Water Management

In our facilities, we are dedicated to consistently enhancing our water conservation efforts to minimise our freshwater consumption. We achieve this by incorporating a range of water-saving technologies and practices, such as the use of recycled and reused treated wastewater in our operations, and by adopting rainwater harvesting strategies. Furthermore, we have established seawater desalination plant in collaboration with local authorities for use in our plant at Dahej, Gujarat, which will further diminish our reliance on freshwater supplies. Our factories are equipped with advanced wastewater treatment systems that ensure our discharged water complies with the regulatory

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standards set by the relevant Pollution Control Boards. The condition of the treated water discharged into the environment is regularly assessed by independent external agencies.

Wastewater Recycling at Dahej Facility

In line with our commitments on water conservation, this year we have commissioned 2,200 KLD reverse osmosis plant to recycle process wastewater. Additionally, we have

Increased usage of recycled water (RO permeate)

in cooling tower by 7% in FY24 compared to FY23

Installed 30 KLD STP based on membrane bioreactor technology (MBR) for treatment and recycling of domestic wastewater

KLD 2,200

reverse osmosis plant was installed in Dahej facility

Waste Management

We have waste management procedures in place which takes into account all the waste being generated and its responsible management on site. We actively monitor, minimise, reuse, and recycle the waste generated from our operations. We adhere to local laws and regulations when disposing of both hazardous and non-hazardous waste originating from our manufacturing sites.

Annual Report [2023-24]

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Few initiatives taken by the SRF to minimise the waste:

Reduce - Reduce the thickness of the polyester film
from the existing 12 microns to 8 microns i.e. by 33%, without compromising on product quality and thereby reducing the use of virgin material at source
Reuse - The finished products are packed in wooden pallets. At PFB, we collaborate with customers to bring the wooden pallets back to our factories and reuse them. This is a green initiative which helps reduce the use of wood and at the same time saves associated costs
Recycle - Use post-consumer recycled (PCR) material, which is typically generated from PET bottles and converted into films. We have committed infrastructural investment for this purpose

Impact of Natural Capital on other capitals

Financial Capital: Lowering environment impact due to focussed environmental positive project
Intellectual Capital: Innovation to achieve our ESG aspiration
Human Capital: Awareness on environment and sustainably amongst workforce
Manufactured Capital: Increase production of sustainable products
Social & Relationship Capital: Implement environmental initiatives and ensure water security

Biodiversity Management

As a socially conscious organisation, we understand the significance of preserving biodiversity in the vicinity of our business units, and we are steadfast in our commitment to achieving this goal. Through various initiatives, including partnerships with local schools as part of our CSR programmes, we actively contribute to biodiversity conservation efforts. Moreover, we emphasise the importance of fostering awareness about biodiversity conservation among all stakeholders.

We collaborate with local communities, schools, and NGOs to promote environmental education and consciousness. Additionally, we encourage our employees to engage in activities aimed at conserving biodiversity, such as tree plantation drives and awareness campaigns. By fostering a culture of environmental stewardship, we aim to make a meaningful impact on biodiversity preservation.

2000

Technical Textiles Business, Gummidipoondi Plant

SRF acquired the facility with its purchase of DuPont subsidiary DuPont Fibres Ltd (DFL) in September 2000 and renamed it Tyre Cord Fabric Ltd.

Annual Report [2023-24]

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Social and Relationship Capital

Material issues addressed

Community Relations Employment Water and Engagement Conservation

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Inputs

` 31.5 Cr.

spent on community development projects

Regular engagement with suppliers

Outputs

4.6 lakh+

beneficiaries

71.8%

input material sourced sustainably

At SRF, we recognise the importance of companies having a purpose beyond mere profits – one that becomes an integral part of the organisation’s essence. In line with this philosophy, SRF Foundation, previously known as the Society for Education and Welfare Development, was established in 1982 as the Corporate Social Responsibility (CSR) arm of SRF Limited

We are deeply invested in the holistic advancement of the communities where we have established our presence. Our sense of identity is interwoven with these communities, and we recognise that our success is intrinsically linked to their prosperity. This understanding shapes the foundation of our approach to Corporate Social Responsibility (CSR). Our CSR endeavours are carefully attuned to the urgent needs of the nation, addressing key areas such as Public Health and Sanitation, Education, Employment, Conservation of Environment, Promotion of Art and Culture and Access to Clean Water, among others.

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CSR Thrust Areas

Education
Vocational Skills Program
Environmental Sustainability
Promotion of Healthcare
Promotion of Art and Culture

Annual Report [2023-24]

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Education

Currently, we oversee 52,496 students in 173 schools and 309 anganwadis, catering to the needs and development of 13,094 children. By prioritising holistic growth and educational empowerment, we strive to create a lasting impact on the lives of young individuals, paving the way for a more promising future for generations to come.

In the pursuit of providing quality education and in line with SDG 4, the education program of SRF is dedicated to fostering comprehensive development of children and youth, equipping them with the tools necessary to build a brighter future.

Our initiatives, includes the Model School Initiative, Anganwadi Development Program, and the Digital Transformation Programs (Smart TV and Smart Bus) with a focus on wholistic transformation of rural schools.

Within our education program, we have implemented four key interventions:

Physical: Digital: Academic: Leadership: Enhancing Integrating Ensuring quality Empowering infrastructure state-of-the-art education through students with and facilities technology for innovative teaching leadership in schools and improved learning methods. skills. anganwadis. experiences.

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Anganwadi Development Programs

The Anganwadi Development Program, initiated by SRF, aimed to enhance early childhood education in Anganwadi Centres. The project aligned with the National Education Policy 2020, focussing on holistic child development and quality education

Objectives

Impact

1. Experience-Based Learning: The program promoted hands-on learning experiences for children aged 3 to 6 years.

Increased Enrolments: The program led to higher enrolment rates in Anganwadi Centres.
Reduced Dropout Rates: Children remained
2. Centre of Excellence: Transforming engaged, resulting in reduced dropout rates. Anganwadi Centres into centres of Holistic Development: Children benefited
excellence by improving infrastructure and from improved physical, language, social,
teaching methodologies.
Holistic Development: Children benefited from improved physical, language, social, emotional, and cognitive development.

3. Capacity Building: Providing training and skill development for Anganwadi workers.

Innovative Teaching: Innovative teaching methodologies enhanced the overall learning experience.

4. Joyful Learning: Creating engaging and joyful learning environments within Anganwadi Centres.

The Anganwadi Development Program exemplifies
Anganwadi Centres. SRF’s commitment to nurturing young minds and aligning with national education goals.
Implementation By transforming Anganwadi Centres, the program
Manuals and Workbooks: Developed positively impacted early childhood education manuals for Anganwadi workers and workbooks and well-being. for children, emphasising experiential learning.

Implementation

Infrastructure Improvements: Physical spaces were transformed into aspirational learning centres.
Comprehensive Training: Anganwadi workers received training to enhance their teaching skills.

Annual Report [2023-24]

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Vocational Skills Program

Our vocational skill program is meticulously designed to empower individuals, particularly school dropouts and unemployed youths . By equipping them with valuable skills, we aim to create a sustainable source of income. This initiative aligns with SDG goal number 8 , which focusses on decent work and economic growth .

Our Basic Employability Training Program (BETP) supports participants to acquire essential skills that enhance their employability. The program covers areas such as communication, teamwork, and problem-solving
Spoken English Program equips individuals with language skills necessary for professional success
Basic Computer Training Program helps Participants learn essential computer skills, including basic software usage and internet navigation

Our success lies in collaborations with corporate partners such as Schneider Electrics, Amway, Microsoft India, Shell Pahal, and Capgemini . Together, we offer a diverse range of programmes, including:

Nari Shakti: Empowering women through skill development
Digital Skills for ITIs and Polytechnics: Bridging the digital divide
Digital Literacy Mission: Promoting digital literacy across communities

By providing individuals with the necessary skills and training, we not only help them secure a source of income but also empower them to take control of their own futures . Through these strategic partnerships and impactful programmes, we make a positive difference in the lives of those who might otherwise have been left behind in the competitive job market.

Environmental Sustainability

The Aravalli region stands as one of India’s most degraded and vulnerable ecosystems . It grapples with challenges such as low rainfall, harsh climate, sandy soils, and limited groundwater recharge , all of which hinder economic development in the area. We are committed to Natural Resource Management (NRM) since 2005 , aligns our efforts with SDG goal number 13 (climate action). The focus lies in enhancing livelihoods, conserving the environment , and improving socio-economic conditions in 35 villages within the Tijara Block of Alwar district, Rajasthan .

In collaboration with SPACE (Society for Promotion and Conservation of Environment) , SRF embarked on a project involving the construction of 204 earthen pots to harvest rainwater and recharge groundwater in Bhiwadi, Rajasthan . This, along with other initiatives helped us in recharging groundwater by 7.6 lakh KL during the year.
Additionally, in FY24, 305 fodder plants were strategically planted in unused areas in Gualda village and on Dhakpuri village . These plantations were established in regions with accessible water sources, garnering active participation from local farmers dedicated to safeguarding the newly planted vegetation, ultimately benefiting 8,100 families .
Furthermore, SRF joined forces with the Global Vikas Trust (GVT) in Dhar, Madhya Pradesh to bolster farmers’ income . This collaboration resulted in the planting of a substantial 3,80,000 saplings. These efforts directly impacted 122 farmer families and indirectly benefited 150-200 farmer families . This initiative represents a significant stride toward agricultural advancement and economic empowerment within the region.

SRF’s Agricultural Transformation Initiative under Global Vikas Trust

Impact:

Cropping Pattern Change: Farmers transitioned from traditional to modern farming practices, leading to increased productivity and profitability.

Objective

To enhance the income and livelihoods of farmers engaged in traditional crop cultivation by promoting modern farming practices, crop diversification, and adoption of horticulture, ultimately leading to sustainable agricultural development.

Adoption of Tissue Culture Plants: Cultivation of tissue culture plants replaced traditional sucker plantation, resulting in improved crop quality and uniform growth.

Intervention

A. Crop Diversification and Cropping Pattern Change: SRF suggested and supported the adoption of remunerative crops and horticulture, thereby diversifying traditional cropping patterns to include high-value produce.

Skill Development: Farmers’ skills were enhanced through timely and adequate training, empowering them to implement modern farming techniques effectively.

Cluster Plantation: Plantation in clusters facilitated market access and improved market competitiveness for farmers.

B. Sourcing High-Quality Saplings: The initiative ensured the procurement and distribution of high-quality saplings, particularly focussing on banana and papaya, to improve the quality of produce and yield.

Financial Impact: Financial impact case studies will be provided upon completion of the harvest, showcasing the tangible benefits accrued to participating farmers.

C. Farmers’ Knowledge Enhancement: Comprehensive training sessions were conducted covering farming processes and Outcome: techniques from pre-plantation to post-harvest stages, aimed at incorporating better practices and increasing yield.
3,80,300 high-quality plants distributed across 224 acres, benefiting 103 marginal farmers.
D. Ecosystem Creation and Support: SRF established a support ecosystem for farmers, including training, technological assistance, a dedicated call centre, and round-the-clock support by trained agriculturists.
E. Market Facilitation: The initiative facilitated the direct sale of produce by connecting farmers with buyers, ensuring they received the best prices for their products.

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Annual Report [2023-24]

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Promotion of Health Care

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SRF has undertaken health care initiatives aimed at providing high-quality medical facilities to people from weaker sections of society who reside in remote and challenging areas . These individuals often face challenges in accessing the healthcare services due to geographical isolation.

We have implemented two key initiatives to promote health care facilities:

Primary Health Centre in Nalchha Block,

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Dhar District, Madhya Pradesh:

Focusses on implementing medical facilities that adhere to the Kalyakalp standard , emphasising cleanliness, sanitation, and infection control

Swasthya Sewa Van (Mobile Health Van):

Operating in 15 villages of Vagra Block at Dahej, Gujarat , this mobile health van provides essential services
Offers free, accessible, and quality health care to vulnerable groups in and around Dahej

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Enhancing Healthcare Accessibility in Nalchha

Pre project scenario - Upon conducting a comprehensive survey and physical visits to four Primary Health Centres (PHCs) and Community Health Centres (CHCs) in Nalchha, it was observed that PHC Nalchha experienced significantly higher patient footfall compared to other centres. This scenario highlighted the need for improving healthcare accessibility in Nalchha.

Initiative

The initiative aimed to upgrade existing facilities, enhance processes, and build staff capacity through training programmes, exposure visits, and technical support. It also focussed on strengthening community outreach programmes to raise awareness about preventive healthcare, routine immunisation, and maternal and child healthcare.

Mobile Health Dispensary (SRF Swasthya Seva)

Objective:

Mobile Health Dispensary initiative, known as SRF Swasthya Seva’s aim is to address the challenge of limited access to basic healthcare services for the local community in the Dahej area of Bharuch district. The initiative aimed to provide easy access to doctor consultations and medicines at the doorstep of residents in 15 project villages, overcoming the barriers posed by distance and lack of amenities.

Intervention:

To address the healthcare challenges, SRF has implemented a mobile medical van equipped with a MBBS certified doctor and a nurse. The team provided consultations and distributed free medicines to patients at their doorstep. For cases requiring specialised care, referrals were made to government hospitals in Bharuch. Additionally, medical camps on various specialties such as orthopaedics, general medicine, gynaecology,

The project began with a baseline assessment using KAYAKALP and NQAS checklists to form an actionable plan. It involved mentoring visits, periodic assessments, infrastructure upgrades, and procurement of medical equipment. Collaboration with local government and community stakeholders facilitated project implementation.

Impact

Reached a population of 57,092 and covered 51 villages under PHC benefiting 24,490 individuals with health services. PHC Nalchha received the state-level Kayakalp Award for its improved healthcare services, marking a notable achievement in healthcare accessibility and quality.

and eye care were organised regularly to address specific health needs of the community. Swasthya Seva also conducted awareness sessions on basic health practices and hygiene within the community to promote preventive healthcare.

The initiative is an ongoing programme, providing regular services to the 15 project villages twice a month.

Outcome:

During the financial year 2023-24, a total of 4,946 patients benefited from the regular OPD services, receiving free medicines and medical advice. This initiative has had a significant impact on the community, covering approximately one-third of the population in the 15 villages. The initiative has not only addressed immediate healthcare needs but has also empowered the community with knowledge on basic health practices and hygiene.

Annual Report [2023-24]

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Promotion of Art and Culture

SRF , in collaboration with SPIC MACAY , has launched the SRF Virasat initiative to promote Indian classical music, dance, and culture . Through this initiative, children are provided with the opportunity to collaborate with singers and showcase their talents in front of audiences, thereby nurturing their social and interpersonal skills. By supporting art and culture in this manner, the SRF Foundation plays a crucial role in preserving and promoting our rich cultural traditions for the enjoyment of future generations.

2004

Music in the Park

Music in the Park initiative served as a quintessential example of the celebration and promotion of Indian classical music. Supported by SRF and Foundation, in collaboration with Spic Macay, the events featured legendary artists like Pt Nityanand Haldipur, Ustad Shahid Parvez, Shri Omkar Dadarkar, Pt Bickram Ghosh, and Dr N Rajam, alongside emerging talents. With over 5,000 attendees, the concerts not only mesmerised the audience but also sparked a demand for more such cultural gatherings. Backed by 150 dedicated volunteers and propelled by social and print media publicity, the initiative not only promoted India’s rich musical heritage but also underscored the significance of continued support for similar endeavours, leaving an indelible mark on the cultural landscape of the region.

Packaging Films Business, SEZ, Indore Site

To meet the growing demand for packaging films globally, a new manufacturing plant was set up in Indore in 2004. Currently, the Indore (SEZ) plant has an output capacity of 1,58,200 Tonnes per annum and houses a state-of-the-art R&D centre.

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Customer Relationship

At SRF Limited, our commitment to building long-term value extends beyond financial metrics. Our holistic approach to customer relationship involves understanding their needs, delivering quality products, and fostering transparent communication. By consistently meeting customer expectations, we aim to create enduring partnerships that contribute to our shared success.

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

Inclusive Engagement
Foster meaningful
connections with customers
from diverse segments
Customer Experience Swift Complaint
Insights Resolution
Gain valuable Quickly address
customer insights customer concerns for
about their experiences Enhancing enhanced satisfaction
our customer
experience
Commitment to Quality Efficient Digital Access
Delivering excellence through quality Streamline access to information through
products and services digitisation for faster retrieval
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We actively seek customer feedback to enhance our products and services. Through regular satisfaction surveys, we identify areas for improvement and take corrective measures to ensure exceptional customer service. Our sustained efforts in enhancing customer satisfaction underscore our dedication to responsible business practices and stakeholder well-being.

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Annual Report [2023-24]

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Our track record in the fluorochemical space illustrates our commitment to sustainability, transitioning from CFCs to HCFCs and then to HFCs, enabling customers to adopt lower GWP potential refrigerant gas products. We are the only Indian manufacturer of ozone-friendly refrigerants such as F134a and F32 . The technology to produce refrigerants F 134a and F 32 has been developed by SRF in-house. SRF is one amongst the very few fully backward-integrated players in this space. This not only allows us greater control on product quality but also makes us a very competitive producer.

Product Labelling

To ensure transparency in information dissemination, SRF diligently ensures that all pertinent details regarding the product are clearly stated on the labels. This encompasses usage instructions, product grade, dimensions, gross weight, and any relevant regulatory mandates. Furthermore, supplementary information like material factsheets, safety guidelines, adherence to Zero ODS standards, handling instructions, hazard classifications (for hazardous materials), or any additional details requested by the customer are also provided on the labels. Our Chemicals business goes beyond mere compliance with state and national laws; it adheres to all applicable international standards and regulations such as the Globally Harmonised System (GHS), Classification, Labelling and Packaging (CLP) notification, International Maritime Dangerous Goods (IMDG) Code, among others.

With integrated facilities and robust R&D capabilities, we are confident in our ability to meet future challenges and fulfil customer requirements. In the specialty chemicals sector, our R&D team continues to lead the way, successfully launching new generation products and expanding our expertise beyond fluorine chemistry. We excel in managing complex custom synthesis and other contract development and manufacturing operations, maintaining our leadership position in certain chemistries. To sustain this position, we've made substantial investments in people, equipment, and capital, fostering an environment of agile process development and rapid project implementation. Despite a challenging business environment, our Packaging Films and Technical Textiles businesses have demonstrated remarkable resilience. This year, they focussed on optimising cost structures and introduced innovative products and solutions to customers.

Sustainable Product Offerings

We firmly believe that sustainability is integral to building a successful business, one that offers products that are not only sustainable but also affordable and accessible to all. At SRF, we are dedicated to the development of sustainable products, achieved through investments in design thinking, disruptive innovation, and the deployment of new technologies.

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Responsible Supply Chain

At SRF, we appreciate the invaluable contributions made by our partners to the growth and sustenance of our business. We recognise that the sustainability of our products and operations rely on the ethical and environmentally conscious practices of our suppliers. Therefore, we are dedicated to fostering strong relationships with our suppliers which is based on mutual respect, transparency, and collaboration. We maintain regular communication with our suppliers to uphold integrity, responsibility, and compliance standards.

To foster sustainable practices throughout our value chain, we organise training and awareness sessions for suppliers and buyers covering requirements of the Code and Human Rights Policy, sustainability expectations from suppliers.

In certain segments, we have signed long-term contracts with vendors for critical raw materials. These contracts feature formula-driven price discovery agreements and automated indenting to ensure continuous supply.

2007

Impact of Social & Relationship Capital on Other Capitals

Intellectual Capital: Drive knowledge creation, innovation, and organisational learning
Human Capital: Talent attraction and retention leading to skilled workforce
Manufactured Capital: Robust supply of raw materials
Natural Capital: Promote environmental stewardship and sustainable practices
Financial Capital: Cost savings, enhanced brand value, and sustainable supply chain

SRF Foundation

Society for Education and Welfare Development was renamed as SRF Foundation to better align with SRF Limited. SRF Foundation is dedicated to the transformation of education in the country.

Annual Report [2023-24]

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Business Responsibility & Sustainability Report

SECTION A: GENERAL DISCLOSURES

I. Details of the listed entity

1. Corporate Identity Number (CIN) of L18101DL1970PLC005197 the Listed 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 Block - C, Sector - 45, Gurugram, Haryana, India - 122 003 [email protected]

5. Corporate address

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 2023 to 31 March 2024

10. Name of the Stock Exchange(s) where 1. BSE Limited shares are listed

The National Stock Exchange of India Limited INR 296.42 Crore

11. Paid-up Capital

12. Name and contact details (telephone, email address) of the person who may be contacted in case of any queries on the BRSR report

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).

14. Name of assurance provider BDO India LLP 15. Type of assurance obtained Reasonable Assurance for BRSR Core parameters

II. Products and services

16. 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.	Chemical Business	Chemicals Business consists of two segments, namely	57.82
		Specialty Chemicals and Fluorochemicals located in
		Dahej, Gujarat and Bhiwadi, Rajasthan.
2.	Packaging Films	Packaging Films Business (PFB) consists of Polyester	20.37
	Business	Films. PFB manufacturing locations are based in Indore
		(3) in Madhya Pradesh and Kashipur in Uttarakhand.
3.	Technical Textiles	Technical Textiles Business (TTB) consists of	17.49
	Business	manufacturing of 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.	Laminated Fabric	Manufactures PVC laminated polyester fabrics. Located	1.80
	Business	at Kashipur in Uttarakhand
5.	Coated Fabric	Manufactures yarn, weaving, coating, printing and	2.51
	Business	lacquering. Located at Gummidipoondi in Tamil Nadu.

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17. 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
1. Specialty Chemicals 2029 34.70
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1.	Specialty Chemicals	2029	34.70
2.	Fluorochemicals, Refrigerant Gases and allied products	2011	19.62
3.	Packaging Films	2220	20.34
4.	Nylon Tyre Cord Fabric / Polyester Tyre Cord Fabric / Belting Fabric	1399	15.64
5.	Industrial Chemicals	2011	3.25
6.	Laminated Fabric, Coated Fabric and other ancilliary activities	1399	4.36
7.	Synthetic Filament Yarn includingIndustrial Yarn/Twine	2220	1.96

III. Operations

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

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

19. Markets served by the entity:

a. Number of locations

Locations	Value(in numbers)
National (No. of States)	28 States and 8 Union Territories
International(No. of Countries)	87

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 45.14%.

A brief on types of customers:

c.

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

IV. Employees

20. Details as at the end of Financial Year

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)	3,580	3,295	92	285	8
2.	Other than Permanent (E)	30	30	100	-	0
3.	Total Employees(D+E)	3,610	3,325	92	285	8
			Workers
4.	Permanent (F)	3,792	3,738	99	54	1
5.	Other than Permanent (G)	8,154	7,787	95	367	5
6.	Total workers(F+G)	11,946	11,525	96	421	4

b. Differently abled Employees and workers

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S. Particulars Total (A) Male Female
No. No. (B) % (B / A) No. (C) % (C / A)
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		DIFFERENTLY ABL	ED EMPLOYEES
1.	Permanent (D)	5	4	80	1	20
2.	Other than Permanent (E)	0	0	0	0	0
3.	Total Employees(D+E)	5	4	80	1	20
		DIFFERENTLY ABLED WORKERS
4.	Permanent (F)	13	13	100	0	0
5.	Other than Permanent (G)	2	2	100	0	0
6.	Total workers(F+G)	15	15	100	0	0

21. Participation/Inclusion/Representation of women

Particulars Total (A)	No. andpercentage of Females
	No.(B) %(B / A)
Board of Directors 10 KeyManagement Personnel 8	1 10 0 0

22. Turnover rate for permanent employees and workers

Particulars	(Turnover rate in %) FY 2023-24 (Turnover rate in %) FY 2022-23 (Turnover rate in %) FY 2021-22
	Male Female Total Male Female Total Male Female Total
Permanent Employees Permanent Workers	10 16 10 13 18 13 10 18 11 7 2 7 7 10 7 5 21 5

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

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

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S. Name of the holding/ Indicate whether % of shares Does the entity indicated
No. subsidiary/ associate holding/ held by listed at column A, participate in
companies/ joint ventures (A) Subsidiary/ entity the Business Responsibility
Associate/ Joint initiatives of the listed entity?
Venture (Yes/No)
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1	KAMA Holdings Limited	Holding	50.21	No
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	Subsidiary	100	No
	Africa) (Pty) 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
12	SRF Middle East LLC	Subsidiary	100	No

as per the requirements of INDAS

Annual Report [2023-24]

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VI. CSR details

24. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: Yes

(ii) Turnover (in ` ) 10,786.67 Crore
(iii) Net worth (in ` ) 10,255.35 Crore

VII. Transparency and Disclosures Compliances

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

Stakeholder	Grievance Redressal		FY 2023-24			FY 2022-23
group from whom complaint is received	Mechanism in Place (Yes/No) (If Yes, then provide web-link for grievance redress policy)	No. of complaints fled during the year	No. of complaints pending resolution at close of the year	Remarks	No. of complaints fled during the year	No. of complaints pending resolution at close of the year	Remarks
Communities	Yes	0	0	None	0	0	None
Investors	Yes	0	0	None	0	0	None
Shareholders	Yes	316	0	None	304	0	None
Employees and	Yes	2	0	None	3	0	None
workers
Customers	Yes	520	5	None	440	56	None
Value Chain	Yes	0	0	None	0	0	None
Partners

26. 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

S. No. Material issue identifed	S. No. Material issue identifed	Indicate whether risk or opportunity (R/O)	Rationale for identifying the risk / opportunity		Incase of risk, approach to adapt or mitigate Financial implications of the risk or opportunity (Indicate positive or negative implications)
1	Energy	Opportunity	Implementing energy efciency	-	Positive
	Management		initiatives at our manufacturing
			sites and ofces contributes in our eforts to decrease the Company’s
			greenhouse gas emissions.
2	GHG emission	Opportunity	Implement initiatives to reduce	-	Positive
	reduction		greenhouse gas emissions
			by utilizing renewable fuel
			sources, increasing the share of
			renewable power in electricity
			mix, and adopting energy-efcient
			measures.

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S. Material issue Indicate Rationale for identifying the Incase of risk, Financial
No. identified whether risk / opportunity approach to implications
risk or adapt or of the risk or
opportunity mitigate opportunity
(R/O) (Indicate
positive or
negative
implications)
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3	Air emissions	Risk	Exceeding the designated limits	Ensure m	onito	ring of all	Negative
			set by the State Pollution Control	sources of	air pollutants in
			Board (SPCB) may result in fnes	Company’s manufacturing
			and penalties.	locations.		Undertake
				measures	to reduce SOx,
				NOx and PM emissions
4	Water	Opportunity	The practice of reuse, recycling,	-			Positive
	conservation		and rainwater harvesting
			decreases water withdrawals, thus
			reducing dependence on fresh
			water resources.
5	Waste	Risk	Inefective waste management	Our waste management			Negative
	Management		practices could potentially	strategy	focuses on
			endanger the environment.	efcient	management
				of waste	based on 3R
				principle –	Reduce, Reuse
				and Recycle and promotes
				circular economy
6	Key material	Risk	Failure to adhere to ESG practices	Increase		awareness	Negative
	procurement and		and EHS compliance by suppliers	among	raw	material
	management		could result in disruptions to the	suppliers	to	implement
			supply chain.	ESG practices.
7	Employment	Opportunity	Providing an inclusive and safe	-			Positive
			workplace and contribute to
			well-being of workforce
8	Occupational	Risk	Occupational health & safety risks	Our company		maintains	Negative
	Health and Safety		due to the nature of operations of	its commitment to
			the Company	implementing strong and
				efcient	occupational
				health	and	safety
				management		systems
				to minimize		industrial
				accidents.
9	Community	Opportunity	CSR initiatives contribute to the	-			Positive
	relations and		empowerment of communities
	engagement		by providing them healthcare,
			education, vocational training
			and, generating employment
			opportunities that would foster the
			development of both individuals
			and the region.
10	Corporate	Opportunity	Code of Conduct of the Company	-			Positive
	Governance		enshrines the principles by which
	Practices		the Company and its employees
			are guided.

Annual Report [2023-24]

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S. No.	Material issue identifed	Indicate whether risk or opportunity (R/O)	Rationale for identifying the risk / opportunity		Incase of risk, approach to adapt or mitigate Financial implications of the risk or opportunity (Indicate positive or negative implications)
11	Total Quality	Opportunity	Implementation of TQM ensures		Positive
	Management		meeting evolving customer
	(TQM)		aspirations and shifting market
			dynamics by bringing systemic
			changes to maximise operational
			efciency
12	Innovation &	Opportunity	Improve resource efciency and	-	Positive
	Research and		continuously develop new products
	Development		for the market.

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 Policy and management processes 1. a. Whether your entity’s policy/policies cover each principle and its core elements of the NGRBCs. Yes Yes Yes Yes Yes Yes Yes Yes Yes (Yes/No)
b. Has the policy been approved by the Board? (Yes/ Yes Yes Yes Yes Yes Yes Yes Yes Yes
No)
c. Web Link of the Policies, if available https://www.srf.com/investors/corporate-governance/
Whether the entity has translated the policy into procedures. (Yes / No)
Yes Yes Yes Yes Yes Yes Yes Yes Yes
procedures. (Yes / No)
1. Do the enlisted policies extend to your value chain No No No No No No No No No
partners? (Yes/No)
Name of the national and international codes/ certifications/labels/ standards (e.g. Forest Our plants are certified with ISO 14001, ISO 50001 and OHSAS

Stewardship Council, Fairtrade, Rainforest Alliance, 18001

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 the Our values – Respect, Integrity, Non-discrimination, Excellence 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

Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9

Governance, leadership and oversight

Statement by director responsible for the business We recognize that our ESG journey is a continuous endeavour, responsibility report, highlighting ESG related and we are committed to consistently improving our own challenges, targets and achievements (listed entity has benchmarks. With diligent efforts and proactive initiatives, we flexibility regarding the placement of this disclosure): are working towards achieving our targets and commitments. Our ESG performance underscores our commitment to effecting positive change while strengthening the resilience and sustainability of our business.
Details of the highest authority responsible for We are guided by the Board of Directors comprising of industry implementation and oversight of the Business experts having diverse and rich experiences which enable and Responsibility policy (ies). facilitate effective 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 of the The Board members periodically monitor the financial, Board/ Director responsible for decision making on environmental, and social performance of the Company while sustainability related issues? (Yes / No). If yes, provide addressing key risks and opportunities. The Company also has details. a Risk Management Committee which reviews entity wide risks including ESG risks.

10 Details of Review of NGRBCs by the Company:

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Subject for Review Indicate whether review was Frequency (Annually (A) /
undertaken by Director / Committee of Half yearly (H)/ Quarterly(Q) /
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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	Performance against	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	A	A	A	A	A	A	A
	above policies and
	follow up action
	Compliance with	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes		As	and	when required
	statutory requirements
	of relevance to the
	principles, and,
	rectifcation of any
	non-compliances
11.	Has the entity carried	P1		P2		P3		P4		P5		P6		P7	P 8		P9
	out independent
	assessment/ evaluation	No external assessment					was conducted,			However,	the	Company conducts periodic				review of
	of the working of	the	policies internally.
	its policies by an
	external agency?
	(Yes/No). If yes, provide
	name of the agency.

30% electricity sourced from RE by 2030
Improvement in water credit to debit ratio
Moving towards an Injury Free Workplace
Enhanced women participation across organization
Performance of the entity against the specific We have set up an internal mechanism to regularly track commitments, goals and targets along-with reasons in our targets and commitments as mentioned in (5). Yearly case the same are not met. performance of identified targets and commitments are updated as part of our ESG disclosures. Refer ESG section for more details

100

101

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12. 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)

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 of Topics /principles covered under %age of persons in
training and the training and its impact respective category
awareness covered by the
programmes held awareness programmes
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Board of	4	Familiarization of business environment	100%
Directors		and related risks, Changes in regulatory
		framework, ESG and sustainability practices,
		Health & Safety, Values of SRF
Key Managerial	6	Familiarization of business environment	100%
Personnel		and related risks, Changes in regulatory
		framework, ESG and sustainability
		practices, Health & Safety, Values of SRF,
		Code of Conduct
Employees	4,217	Various trainings pertaining to health,	87%
other than BoD		safety, behavioural, skill upgradation,
and KMPs		management, process improvements,
		ergonomics, operations etc.
Workers	2,361	Various trainings pertaining to health,	77%
		safety, behavioural, skill upgradation,
		management,ergonomics,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 Case Has an
Principle regulatory/ (In INR) appeal
enforcement been
agencies/ judicial preferred?
institutions (Yes/No)
Penalty/ Fine Principle 1 - State Tax Officer, ` 15.73 State Tax Officer has passed orders dated No
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Penalty/ Fine	Principle 1 -	State Tax Ofcer,	`15.73	State Tax Ofcer has passed orders dated	No
	Businesses should	Manali Assessment	Crores	10 January 2024 in respect for 2005-
	conduct and govern	Circle		06 Supplies aggregating to`46.62
	themselves with			Crores claimed by the Company under
	integrity, and in			concessional/exempt supplies were
	a manner that is			alleged to be chargeable to sales tax
	Ethical, Transparent			at the maximum rate of 20%. Penalty
	and Accountable.			of`15.73 Crores has been levied in
				connection with the above allegation.
				The Authority alleged that maximum rate and penalty was being levied on the turnover on account of non-submission
				of documents before the Authority to
				substantiate levy of sales tax at lower
				rate/exemption of a part of turnover
				from sales tax. However, the Company
				has submitted the requisite documents
				and paid additional Tax amounting to
				`1,81,187 and accordingly the matter
				was disposed of bythe authorities.
Penalty/ Fine	Principle 1 -	State Tax Ofcer,	`9.64	State Tax Ofcer has passed order	No
	Businesses should	Manali Assessment	Crores	for 2006-07 in respect of Supplies
	conduct and govern	Circle		aggregating to`28.56 Crores claimed
	themselves with			by the Company under concessional/
	integrity, and in			exempt supplies are alleged to be
	a manner that is			chargeable to sales tax at the maximum
	Ethical, Transparent			rate of 20%. Penalty of`9.64 Crores
	and Accountable.			has been levied in connection with the
				above allegation. The above Orders are
				appealable, and the Company is in the
				process of making appeal against these
				orders before the appellate authorities.
				The Authority has alleged that maximum
				rate and penalty is being levied on the
				turnover on account of non-submission
				of documents before the Authority to
				substantiate levy of sales tax at lower
				rate/exemption of a part of turnover
				from sales tax. However, the Company
				has submitted the requisite documents
				and paid additional Tax amounting to
				`1,52,188 and accordingly the matter
				was disposed of bythe authorities.

103

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Penalty/ Fine	Principle 1 -	Chief Judicial	`0.028	Hon. Chief Judicial Magistrate, District	No
	Businesses should	Magistrate, District	Crore	Dhar, Madhya Pradesh has passed
	conduct and govern	Dhar, Madhya		an order imposing penalty, on Mr.
	themselves with	Pradesh		Pramod Gopaldas Guajarati, Whole
	integrity, and in			Time Director (Safety & Environment)
	a manner that is			and Occupier of SRF Ltd. under the
	Ethical, Transparent			provisions of the Factories Act, 1948,
	and Accountable.			aggregatingto`0.028 crore.
Penalty/ Fine	Principle 1 -	Ofce of Assistant	`0.36	Order for imposing penalty for	Yes
	Businesses should	Commissioner CGST	Crore	demand of Cenvat Credit amounting
	conduct and govern	& Cex, Division II,		`36,85,987/- (Rupees Thirty Six Lacs
	themselves with	Gwalior		Eighty Five Thousand Nine Hundred
	integrity, and in			and Eighty Seven Only) as per Rule 15
	a manner that is			of Cenvat Credit Rules, 2004 read with
	Ethical, Transparent			Section 11AC of Central Excise Act, 1944
	and Accountable.			with respect to the period between
				April,2008 till September,2011.
Penalty/ Fine	Principle 1 -	Commissioner	`0.025	Commissioner of Customs cancelled	No
	Businesses should	of Customs,	Crore	certain RODTEP scrips issued and
	conduct and govern	Ahmedabad		imposed a penalty of`0.025 Crore
	themselves with			on the Company. The Company is
	integrity, and in			challenging the said order before
	a manner that is			appropriate Forum.
	Ethical, Transparent			RODTEP scrip generated due to
	and Accountable.			inadvertent ticking of the wrong column
				in the ICEGATE portal of the Customs
				Authority.
Penalty/ Fine	Principle 1 -	Inspector, Legal	`0.0025	Department of Legal Metrology issued	No
	Businesses should	Metrology,	Crores	notice for alleged non-compliance of
	conduct and govern	Rajamahendravaram		declaration to be made on refrigerant gas
	themselves with	I, EG Distt. (AP)		cylinders under Section 18 of the Legal
	integrity, and in			Metrology Act, 2009. The Company had
	a manner that is			opted for compounding under Section
	Ethical, Transparent			48 of the Legal Metrology Act, 2009. A
	and Accountable.			compounding fee of`25,000 each has
				been imposed on the Company and the
				nominated Director. The matter stands
				closed.
Penalty/ Fine	Principle 1 -	Ofce of Additional	`4 Crores	Search of the factory premises of the	Yes
	Businesses should	Commissioner GST,		Company in Bhiwadi, Rajasthan was
	conduct and govern	Bhiwadi Zone,		conducted by the GST Department on
	themselves with	Rajasthan		14th August, 2023.
	integrity, and in
	a manner that is
	Ethical, Transparent
	and Accountable.
Settlement			NIL
Compoundingfee			NIL

	Non-Monetary
	NGRBC Principle Name of the regulatory/ enforcement agencies/ judicial institutions Brief of the Case Has an appeal been preferred? (Yes/No)
Imprisonment	NIL
Punishment	NIL

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.

Name of the regulatory/ enforcement agencies/ judicial institutions

Case Details

Appeal filed before The Commissioner (Appeals), CGST and Excise, Bhopal on 12.01.2024 with mandatory appeal Pre-deposit of ` 2.76 lakh

Order for imposing penalty for demand of Cenvat Credit amounting ` 36,85,987/- (Rupees Thirty Six Lacs Eighty Five Thousand Nine Hundred and Eighty Seven Only) as per Rule 15 of Cenvat Credit Rules, 2004 read with Section 11AC of Central Excise Act, 1944 with respect to the period between April, 2008 till September, 2011

Search of the factory premises of the Company Writ petition filed before Rajasthan High Court on in Bhiwadi, Rajasthan was conducted by the GST 20.02.2024. Recovery/coercive action has been Department on 14th August, 2023. The concerned stayed till next hearing vide order dt 06.03.2024. officials had perused certain documents and asked for Till date total payment made under protest is certain additional documents pertaining to claim of 5.50 Cr (Tax 4 Cr + Interest ` 1.50 Cr) GST credit. These will be provided in due course

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 strictly abide by our Code of Conduct and have a well implemented Whistle-blower Policy, demonstrating our dedication to ethical behaviour, anti-corruption, and upholding the highest standards of integrity. We have implemented a vigil mechanism enabling directors and employees to report any concerns related to unethical behaviour, fraud, or violations of the organization’s code of conduct. These policies can be accessed at https://www.srf.com/about-overview/working-at-srf/.

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

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FY 2023-24 FY 2022-23
----- End of picture text -----

Directors	0	0
KMPs	0	0
Employees	0	0
Workers	0	0

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

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

FY 2023-24 FY 2022-23
Number Remarks Number Remarks
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Number of complaints received
in relation to issues of Confict of	0	Nil	0	Nil
Interest of the Directors
Number of complaints received
in relation to issues of Confict of	0	Nil	0	Nil
Interest of the KMPs

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.

**8. Number of days of accounts payables (Accounts payable *365) / Cost of goods/services procured) in the following format:**

	FY 2023-24	FY 2022-23
Number of days of accountspayables	111.24	108.60

Note: BRSR Core Indicator.

9. Open-ness of business

Provide details of concentration of purchases and sales with trading houses, dealers, and related parties along-with loans and advances & investments, with related parties, in the following format:

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Parameter Metrics FY 2023-24 FY 2022-23
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Concentration of Purchases	a. Purchases from trading houses as % of total purchases	31.84%	35.21%
	b. Number of trading houses where purchases are made from	2184	2369
	c. Purchases from top 10 trading houses as % of total purchases from trading houses	44.31%	45.14%
Concentration of Sales	a. Sales to dealers / distributors as % of total sales	27.32%	30.12%
	b. Number of dealers / distributors to whom sales are made	689	662
	c. Sales to top 10 dealers / distributors as % of total sales to dealers / distributors	35.80%	35.70%
Share of RPTs in	a. Purchases (Purchases with related parties / Total Purchases)	0.08%	0.42%
	b. Sales (Sales related parties / Total Sales)	0.93%	1.04%
	c. Loans & advances (Loans & advances given to related parties /Total loans & advances)	83.35%	89.84%
	d. Investments (Investments in related parties / Total Investments made)	49.13%	15.21%

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

Details of improvements in environmental and social
FY 2023-24 FY 2022-23
impacts
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R&D	-	-	While the Company has taken multiple initiatives and makes
			signifcant investments in development of sustainable and
			green technologies, however we have not measured the
			impact specifcally
Capex	13.98%	3.45%	Capex includes projects under renewable energy installations, emissions reduction, mitigating environmental impacts,
			enhancing health and safety of our workforce, and building
			requisite communityinfrastructure

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

SRF is committed towards sustainably sourcing its raw materials. Our internal systems and processes promote procurement of goods from suppliers having good ESG practices. Additionally, we constantly work towards maintaining sustainable relationships with our supply chain partners by building trust, ensuring 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. Our aim is to work closely with our suppliers on a continuous basis to enhance their capabilities, creating a win-win situation for both.

b. If yes, what percentage of inputs were sourced sustainably?
- 71.88% (including procurement of capital goods and excluding fuel and services)

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.

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.

EPR is applicable to our activities. We are in the process of securing necessary registration wherever applicable and setting up process and system for robust compliance with Plastic Waste Management Rules.

Note: BRSR Core Indicator.

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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	3,295 285 3,580	3,295 100 3,295 100 - - 3,295 100 2,958 90 285 100 285 100 285 100 - - 271 95 3,580 100 3,580 100 285 8 3,295 92 3,229 90
		Otherthan Permanent employees
Male Female Total	30 - 30	30 100 30 100 - - 30 100 30 100 - - - - - - - - - - 30 100 30 100 - - 30 100 30 100

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	3,738 54 3,792	3,738 100 3,738 100 - - 3,738 100 3,186 85 54 100 54 100 54 100 - - 40 74 3,792 100 3,792 100 54 1.4 3,738 98.6 3,226 85
		Other than Permanent workers
Male Female Total	7,787 367 8,154	7,787 100 7,787 100 - - 0 0 6,924 89 367 100 367 100 367 100 - - 312 85 8,154 100 8,154 100 367 4.5 0 0 7,236 89

c. Spending on measures towards well-being of employees and workers (including permanent and other than permanent) in the following format

	FY 2023-24	FY 2022-23
Cost incurred on well-being measures as a % of total revenue of the company	0.34	Not measured

Note: BRSR Core Indicator.

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

Benefts	FY 2023-24 FY 2022-23
	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	100 100 Y 100 91 Y 99 100 N.A. 100 91 N.A. 1 3 Y 2 6 Y

Benefts

FY 2023-24
FY 2022-23

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
100
Y
100
91
Y
99
100
N.A.
100
91
N.A.
1
3
Y
2
6
Y

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.

We believe in creating a work environment where everyone feels valued, respected, and empowered to reach their full potential. This includes ensuring a safe and inclusive space for all. Our facilities are equipped with elevators, ramps with suitable inclines, accessible restrooms, and a well-designed seating layout to ensure effortless movement and comfortable seating for people with disabilities.

Our commitment to inclusivity is evident in our approach to ensuring accessibility for people with disabilities (PwD). Complete audits across all our facilities have been conducted to identify and rectify any obstacles to accessibility, thus fostering an environment where all our employees can contribute to their full potential.

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 a well-defined Human Rights policy and a Code of Conduct in place that embodies the principle of equal opportunity for all. We guarantee equal employment and developmental opportunities without discriminating on factors such as religion, caste, language, region, gender (male, female, or transgender), age, sex, sexual orientation, physical abilities, etc. For further information, please refer the section on Human Rights and view our Human Rights policy on. https://www.srf.com/wp-content/uploads/2022/01/ SRF-Human-Rights-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%	84%	100%	91%
Female	91%	60%	100%	100%
Total	100%	83%	100%	91%

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.

Yes/No (If Yes, then give details of the mechanism in brief) Permanent Workers Yes, SRF has established Grievance Redressal Mechanisms for all employees and workers. Our People Redbook Systems at Other than Permanent Workers various locations serves as platforms for employees to express their grievances. They can submit complaints and suggestions Permanent Employees anonymously through designated boxes in offices and plants. The grievance procedures ensure a fair and confidential resolution Other than Permanent Employees process.

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

		FY 2023-24			FY 2022-23
	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	3,580	0	0	3,276	85	3
Male	3,295	0	0	3,049	81	3
Female	285	0	0	227	4	2
Total Permanent Workers	3,792	1,163	31	3,895	986	25
Male	3,738	1,115	30	3,771	957	25
Female	54	48	89	124	29	23

8. Details of training given to employees and workers:

Category		FY 2023-24 FY 2022-23	FY 2023-24 FY 2022-23
	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 Total	3,325 285 3,610	2,053 62 2,909 87 3,049 107 38 196 69 227 2,160 60 3,105 86 3,276	1,925 63 2,228 73 98 43 136 60 2,023 62 2,364 72
		Workers
Male Female Total	3,738 54 3,792	2,217 59 2,269 61 3,771 39 72 27 50 124 2,256 59 2,296 61 3,895	2,284 61 2,403 64 111 90 105 85 2,395 61 2,508 64

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 such system?

We acknowledge safety and health as integral part of our operations. Our Health & Safety Policy guarantees a secure and healthy workplace for everyone. In accordance with the policy, we have implemented comprehensive safety management systems in all our plants. This includes

Undertaking periodic safety assessments by designated inhouse safety officer for identifying hazards, and implementing tangible interventions to enhance workplace
Providing awareness campaigns and training of workforce on safe operations, chemical safety, ergonomics etc

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?

We conduct Hazard Identification and Risk Assessment (HIRA) as well as Hazard and Operability (HAZOP) studies to identify hazards related to workplace. Based on outcomes of HIRA and HAZOP, the safety department across our facilities update their operational control procedures and management programs to address risks associated with these hazards.

Annual audits and inspections are conducted to identify risks, address areas of concern, and minimize the occurrence of workplace accidents. Third-party auditors assess our plants and offices to verify the health, safety, and working conditions of our workplace. For further details, please refer to the 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 systematic method in place for reporting any work-related hazards identified within our facilities. Workers undergo regular training and awareness sessions to help them recognize work-related hazards.

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

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Category FY 2023-24 FY 2022-23
Total (A) No. (B) % (B / A) Total (C) No. (D) % (D / C)
----- End of picture text -----

			Employees
Male	3,325	3,317	100	3,049	3,049	100
Female	285	285	100	227	227	100
Total	3,610	3,602	100	3,276	3,276	100
			Workers
Male	3,738	3,738	100	3,771	3,771	100
Female	54	54	100	124	124	100
Total	3,792	3,792	100	3,895	3,895	100

Furthermore, all individuals are encouraged to report work-related hazards through our portal and to the designated Plant EHS (SPOC) to facilitate prompt corrective action.

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

Our Occupational Health Centers 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.

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

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Safety Incident/Number Category FY 2023-24 FY 2022-23
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Lost Time Injury Frequency Rate (LTIFR)	Employees	0.18	0
(per one million-person hours worked)	Workers	0.19	0.19
Total recordable work-related injuries	Employees	1	0
	Workers	6	5
Number of fatalities	Employees	0	1
	Workers	0	1
High consequence work-related injury or ill-health	Employees	0	0
(excluding fatalities)	Workers	0	0

*Including in the contract workforce

Note: BRSR Core Indicator.

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

SRF is dedicated to maintaining its workplace free from injuries. The Company endeavours to attain zero injuries, fatalities, incidents, or accidents in all its plants and manufacturing units. Emergency response plans, safety procedures, and processes have been implemented throughout the organization to guarantee a healthy and safe workplace.

Moreover, EHS committees have been established across plants to foster a culture of safety throughout the organization. SRF has implemented systems to monitor and address any safety related issue such as unsafe acts, unsafe practices, near miss etc. This helps in ensuring proactive identification and avoidance of safety incidents.

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

	FY 2023-24 FY 2022-23
	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 None 0 0 None
Health & Safety	0 0 None 0 0 None

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.

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 proactive approach to engage with our stakeholders (both internal and external) to understand their perspectives, receive feedback and address any issues that are important to them. Through the Stakeholder Engagement and Materiality Assessment (SEMA) process, we identify our stakeholders namely employees, suppliers, dealers, customers, shareholders / investors, communities surrounding the operations and government / regulatory authorities and give utmost importance to healthy relationship and continuous engagement with them.

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

Stakeholder Whether Channels of Frequency of Purpose and scope of engagement Group identified as communication (Email, engagement including key topics and concerns Vulnerable & SMS, Newspaper, (Annually/ raised during such Marginalized Pamphlets, Advertisement, Half yearly/ Engagement Group Community Meetings, Quarterly/
(Yes/No) Notice Board, Website), others please Other specify)
Regulatory No • Adherence to reporting As per • Regulatory compliance Bodies requirements requirement • Operational efficiency • Industry representation on • Development of communities key matters • Management of environmental impact • Occupational Health and Safety • Emergency Preparedness • Air and GHG emissions Air and GHG emissions • Biodiversity and resource conservation Biodiversity and resource conservation • Waste management
Shareholders No • Company website As per • Financial Performance • Quarterly publication of requirement • Business Risk Management results followed by earning • Foray into new markets call • Optimising operational costs
• Periodic Analysts’ briefing • Corporate governance and individual discussions • Ethics and value between fund managers • Energy efficiency and the management team • Renewable energy
• Communication with • Delivery of timely service shareholders to provide service
Suppliers No • Supplier evaluation As per • Pricing, quality and safety of raw programme requirement materials
• Periodic meetings Visits to • Issues related with human rights supplier’s facilities • Local employment • Materials
Air and GHG emissions Air and GHG emissions • Biodiversity and resource conservation Biodiversity and resource conservation

None

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

Customers	No	•	Customer visits / audit and	As per	•Product innovation and lifecycle
			meetings	requirement	efciency
		•	Customer recognition/		•Service quality
			awards programmes		•Resolution of Customer Complaints
		•	Customer satisfaction		•Quality and Safety of Products
			surveys		•Pricing of Products
		•	Joint development &		•Branding
			product reengineering
Employees	No	•	IT enablement &	As per	•Career growth prospects
			digitisation	requirement	•Learning and development programs
		•	Structured and focussed		•Trainings
			training programmes		•Rewards and Recognition
		•	Employee oriented work		•Occupational Health and Safety
			policies		•Work environment and policies
		•	Adequate grievance		•Grievance redressal mechanism
			mechanism for reporting		•Ethics and transparency
			and redressal		•TQM
		•	Fair and transparent		•Emergency preparedness
			performance management		•Labour conditions
			systems and 360-degree
			feedback process
		•	Periodic open house
			meetings with senior
			leadership teams
		•	Regular employee
			engagement and feedback
			surveys
Local	No	•	Social impact assessment	As per	•Social concerns in the region
communities		•	Joint development and	requirement	•Minimising negative environmental
			partnership with local		impact
			agencies, network partners		•Local employment
			for servicing wider set of
			local communities
		•	Local Infrastructure
			development, structured
			learning by digital
			classrooms training,
			providing scholarships, and
			other necessary support
Bankers	No	•	In-person meetings	As per	•Transactional banking – deposits,
		•	Digital interface	requirement	withdrawals, transfers
		•	Email		•Loans and credit lines
					•Investments and related advisory
					services
					•Forex management
					•New banking products

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 2023-24 FY 2022-23
	Total (A) No. of employees / workers covered(B) % (B/A) Total (C) No. of employees / workers covered(B) %(D/C)
	Employees
Permanent Other than permanent Total Employees	3,580 2,467 69 3,276 2,552 78 30 5 17 - - - 3,610 2,472 68 3,276 2,552 78
	Workers
Permanent Other than permanent Total Workers	3,792 1,301 34 3,895 3,045 78 8,154 2,824 35 7,084 4,785 68 11,946 4,125 35 10,979 7,830 71

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

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Category FY 2023-24 FY 2022-23
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)
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				Employees	Employees
Permanent
Male	3,295	0	0	3,295	100	3,049	0	0	3,049	100
Female	285	0	0	285	100	227	0	0	227	100
Other than
Permanent
Male	30	0	0	30	100	0	-	-	-	-
Female	-	-	-	-	-	-	-	-	-	-
Workers
Permanent
Male	3,738	0	0	3,738	100	3,771	0	0	3,771	100
Female	54	0	0	54	100	124	0	0	124	100
Other than
Permanent
Male	7,787	619	8	7,168	92	6,768	1,356	20	5,412	80
Female	367	199	54	168	46	316	181	57	135	43

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3. Details of remuneration/salary/wages a. Median remuneration/wages:

	Male Female
	Number Number Median remuneration/ salary / wages of respective category (in INR) Number Number Median remuneration/ salary/ wages of respective category (in INR)
Board of Directors (BoD Key Managerial Personnel Employees other than BoD and KMP Workers	9 21,80,000 1 21,00,000 8 8,98,03,165 0 - 3,317 8,26,959 285 7,59,000 3,738 4,80,000 54 3,43,086

b.	Gross wages paid to females as % of total wages paid by the entity, in the following format:
	FY 2023-24 FY 2022-23
	Gross wagespaid to females as % of total wages 5.04% Not measured

Note: BRSR Core Indicator.

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 acknowledges, respects, and upholds ‘Human Rights’ and is dedicated to ensuring the protection of the rights by ensuring a safe, secure, and healthy working environment for all its workforce. SRF has formed a Values Steering Committee consisting of the Joint Managing Director (JMD) and senior-level employees as its members. The responsibility of our Values Steering Committee includes addressing human rights concerns raised by the organization’s employees and workers.

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

We possess a strong mechanism to handle grievances regarding violation of human rights. Any human rights issue raised by a worker or employee can be reported to the organization’s Values Steering Committee or any of its members. The Values Steering Committee will designate resources to conduct investigations based on the reported issue’s nature and proceed with necessary actions to address it in the best interests of both the aggrieved individual and the organization.

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

	FY 2023-24 FY 2022-23
	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	0 0 None 2 0 None 0 0 None 1 0 None 0 0 None 0 0 None 0 0 None 0 0 None 0 0 None 0 0 None 2 0 None 0 0 None

7. Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, in the following format:

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FY 2023-24 FY 2022-23
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Total Complaints reported under Sexual Harassment on of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH)	0	2
Complaints on POSH as a % of female employees/ workers Complaints on POSH upheld	0 0	0.28 0

Note: BRSR Core Indicator.

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

SRF has strong mechanism in place to protect the complainant in discrimination and harassment cases. The mechanism includes safeguarding the complainant from any adverse action which includes discrimination, victimization, retaliation, demotion, and/or adoption of any unfair employment practices.

9. 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). We intent to foster relationship with suppliers having robust Environment Health and Safety (EHS) practices.

10. Assessments for the year:

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

11. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 10 above. Not applicable

2008

Acquisition of Thai Baroda Industries Limited plant in Rayong, Thailand

SRF acquired the Thai Baroda Industries Limited plant in Rayong, Thailand that manufactured Nylon 6 tyre cord fabric.

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

Essential Indicators

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

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Parameter FY 2023-24 FY 2022-23
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From renewable sources
Total electricity consumption (A) (TJ)	518	371
Total fuel consumption (B) (TJ)	718	830
Energy consumption through other sources (C) (TJ)	-
Total energy consumed from renewable sources (A+B+C)	1,236	1,201
From non-renewable sources
Total electricity consumption (D) (TJ)	2,094	1,602
Total fuel consumption (E) (TJ)	9,350	10,109
Energy consumption through other sources (F) (TJ)	-
Total energy consumed from non-renewable sources (D+E+F)	11,444	11,711
Total energy consumed (A+B+C+D+E+F)	12,680	12,912
Energy intensity per rupee of turnover(Total energy	1.18	1.07
consumed/ Revenue from operations) (TJ/INR Cr)
Energy intensity per rupee of turnover adjusted for	0.32	0.30
Purchasing Power Parity (PPP)(Total energy consumption/
Revenue from operations adjusted for PPP) (TJ/INR Crore)
Energy intensity in terms of physical output (TJ/MT)	0.029	Not measured

Note: “Reasonable assurance has been carried out by BDO India LLP on above indicator”.

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

2008

SRF Industex Belting (Pty) Limited

SRF acquired the belting fabrics business of Industex Technical Textiles (Pty) Limited, a South African company. The acquisition cost approximately INR 20 crore. Post the acquisition, the new entity was named SRF Industex Belting (Pty) Limited.

In 2018, the South African subsidiary was assessed to have become unviable and hence the operations were closed.

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

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Parameter FY 2023-24 FY 2022-23
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Water withdrawal by source (in kilolitres)
(i) Surface water	-	-
(ii) Groundwater	8,41,756	10,25,296
(iii) Third party water	45,78,441	42,75,483
(iv) Seawater / desalinated water	-	-
(v) Others (Rainwater harvesting)	29,054	58,362
Total volume of water withdrawal (in kilolitres)	54,49,252	53,59,141
(i + ii + iii + iv + v)
Total volume of water consumption (in kilolitres)	48,69,028	46,76,294
Water intensity per rupee of turnover (Total Water consumed /	4.51	3.87
Revenue from operations) (KL/INR Lakhs)
Water intensity per rupee of turnover adjusted for Purchasing Power	1.24	1.08
Parity (PPP) (Total water consumption/ Revenue from operations
adjusted for PPP) (KL/INR Lakhs)
Water intensity in terms of physical output (Total water consumed/	11.30	Not measured
Total Production) (KL/MT)

Note: “Reasonable assurance has been carried out by BDO India LLP on above indicator”.

4. Provided the following details related to water discharged:

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Parameter FY 2023-24 FY 2022-23
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Wat	er discharge by destination and level of treatment (in kilolitr	es)
(i)	To Surface water	-	-
	- No treatment	-	-
	- With treatment – please specify level of treatment	12,018	12,634
		Tertiary treatment	Tertiary treatment
(ii)	To Groundwater	-	-
	- No treatment	-	-
	- With treatment – please specify level of treatment	-	-
(iii)	To Seawater	-	-
	- No treatment	-	-
	- With treatment – please specify level of treatment	5,68,206	6,59,453
		Tertiary treatment	Tertiary treatment
(iv)	Sent to third parties	-	-
	- No treatment	-	-
	- With treatment – please specify level of treatment	-	-
(v)	Others	-	-
	- No treatment	-	-
	- With treatment – please specify level of treatment	-	-
Total water discharged(in kilolitres)		5,80,224	6,72,087

Note: “Reasonable assurance has been carried out by BDO India LLP on above indicator”.

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

Water conservation is one of our material topic. SRF is committed in optimising use of water by implementing 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.

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

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Parameter Unit of Measurement FY 2023-24 FY 2022-23
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NOx	MT/Annum	428.65	490.31
SOx	MT/Annum	677.53	646.79
Particulate Matter (PM)	MT/Annum	202.56	263.34
Persistent organic pollutants (POP)	-	Not measured	Not measured
Volatile organic compounds (VOC)	-	Not measured	Not measured
Hazardous airpollutants(HAP)	-	Not measured	Not measured

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

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Parameter Unit FY 2023-24 FY 2022-23
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Total Scope 1 emissions	Metric tonnes of	9,45,442	10,89,283
(Break-up of the GHG into CO2, CH4, N2O,	CO2 equivalent
HFCs, PFCs, SF6, NF3, if available)
Total Scope 2 emissions	Metric tonnes of	4,16,445	3,15,771
(Break-up of the GHG into CO2, CH4, N2O,	CO2 equivalent
HFCs, PFCs, SF6, NF3, if available)
Total Scope 1 and Scope 2 emissions	tCO2e/ INR Lakhs	1.26	1.16
intensity per rupee of turnover (Total Scope
1 and Scope 2 GHG emissions / Revenue
from operations)
Total Scope 1 and Scope 2 emission		0.35	0.32
intensity per rupee of turnover adjusted for
Purchasing Power Parity (PPP) (Total Scope	tCO2e/INR Lakhs
1 and Scope 2 GHG emissions/ Revenue
from operations adjusted for PPP)
Total Scope 1 and Scope 2 emission	tCO2e/MT	3.16	Not measured
intensityin terms ofphysical output

Note: “Reasonable assurance has been carried out by BDO India LLP on above indicator”.

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

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

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Parameter FY 2023-24 FY 2022-23
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Total Waste generated (in metric tonnes) Plastic waste (A) 2,996	Total Waste generated (in metric tonnes) Plastic waste (A) 2,996	2,313
E-waste (B)	5	19
Bio-medical waste (C)	0.02	0
Construction and demolition waste (D)	0	0
Battery waste (E)	5	104
Radioactive waste (F)	0	0
Other Hazardous waste. Please specify, if any. (G)	5,40,189	4,25,959
Other Non-hazardous waste generated (H). Please specify, if
any. (Break-up by composition i.e., by materials relevant to the	75,649	78,922
sector)
Total (A+B + C + D + E + F + G + H)	6,18,845	5,07,316
Waste intensity per rupee of turnover (Total waste generated / Revenue from operations) (MT/INR Lakh)	0.57	0.42
Waste intensity per rupee of turnover adjusted for Purchasing
Power Parity (PPP) (Total waste generated / Revenue from	0.16	0.12
operations adjusted for PPP) (MT/ INR Lakh)
Waste intensity in terms of physical output (Total waste generated/Total production (in MT))	1.43	Not measured
For each category of waste generated, total waste recovered through recycling, re-using or
other recovery operations (in metric tonnes)
Category of waste
(i) Recycled	3,01,819	9,189
(ii) Re-used	1,01,881	3,30,805
(iii) Other recovery operations	1,75,365	69,776
Total	5,79,065	4,09,770
For each category of waste generated, total waste disposed by nature of disposal method		(in metric
tonnes)
Category of waste
(i) Incineration	851	223
(ii) Landflling	38,247	34,753
(iii) Other disposal operations	2	0
Total	39,100	34,976

Note: “Reasonable assurance has been carried out by BDO India LLP on above indicator”.

SRF has increased the procurement of renewable energy in order to reduce the dependency on fossil fuels and reduce greenhouse gas emissions. The share of renewable energy in electricity mix has increased from 371 TJ in FY 2022-23 to 517 TJ in FY 2023-24. Additionally, our company has prioritized enhancing energy efficiency in manufacturing procedures through the adoption of advanced technologies, optimizing equipment efficiencies, and deploying energy management systems.

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10. 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.

Environment and social responsibility are one of our Aspirations 2030. One of our focus areas under this aspiration is to enhance our focus on the principle of 3R – Reduce, Reuse and Recycle. Consequently, we strive to operate in a ‘closed loop’ through circularity in operations wherever possible.

We have been able to significantly enhance our 3R capabilities by implementing necessary infrastructure by

Ensuring conversion and neutralization of hazardous waste into usable material, disposable in the most environment-friendly manner.
In the PFB, we reduce the use of polymer mass per unit of packaging without compromising on product quality and thereby reducing the use of virgin material at source.
In our technical textile business, metal shell rolls used in the packaging of the fabric rolls are recollected from the domestic customers and reused multiple times.

11. 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. No. Location of operations/ ofces Type of operations Whether the conditions of environmental approval / clearance are being complied with? (Y/N) If no, the reasons thereof and corrective action taken, if any.
None

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

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Name and EIA Date Whether conducted by Results Relevant
brief details Notification independent external communicated in Web Link
of project No. agency (Yes / No) public Domain
(Yes / No)
None
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13. 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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S. Specify the law Provide Any fines / penalties / Corrective action
No. / regulation / details of the action taken by regulatory taken, if any
guidelines which was non-compliance agencies such as pollution
not complied with control boards or by courts
None
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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. 10

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.

S. No. 1	Name of the trade and industry chambers/ associations Confederation of Indian Industry	Reach of trade and industry chambers/ associations (State/National) National
2 3	Refrigerant Gases Manufacture Association Indian Chemical Council	National 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 SafetyCouncil	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 SafetyCouncil National
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.
	Name of authority Brief of the case Corrective action taken
	None

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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Name SIA Date of Whether conducted by Results Relevant
and brief Notification notification independent external communicated in Web link
details of No. agency (Yes / No) public domain (Yes
project / No)
None
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2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your entity.

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S. Name of State District No. of Project % of PAFs Amounts paid
No. Project for Affected Families covered by to PAFs in the
which R&R (PAFs) R&R FY (In INR)
is ongoing
None
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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. Community members can also reach us through a dedicated section under “Contact us” tab of our website.

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

	FY 2023-24	FY 2022-23
Directly sourced from MSMEs/ small producers	25.54%*	16.95%
Directlyfrom within India	72.93%	70.25%

*Services are included in FY 2023-24

Note: BRSR Core Indicator.

5. Job creation in smaller towns – Disclose wages paid to persons employed (including employees or workers employed on a permanent or non-permanent/ on contract basis) in the following locations, as % of total wage cost

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Location FY 2023-24 FY 2022-23
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Rural	-
Semi-urban Urban	52% 14%	Not	measured
Metropolitan	34%

(Place categorized as per RBI Classification System – rural/ semi-urban/ urban/ metropolitan)

Note: BRSR Core Indicator.

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.

Customer advocacy is one of our Aspirations 2030. We aim to nurture our relationships with our customers, so we remain a preferred partner of choice and further recommendation.

We have a robust mechanism for resolution of customer complaints. Our customers can reach out to us or raise their complaints through a “Contact us” tab of our website. Their queries are addressed and complaints are resolved promptly.

Additionally, 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.

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

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As a percentage to total turnover
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Environmental and social parameters relevant to the product	100%
Safe and responsible usage	100%
Recyclingand/or safe disposal	Not Applicable

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

	FY 2023-24 FY 2022-23
	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 Delivery of essential services Restrictive Trade practices Unfair Trade Practices Others	0 0 None 0 0 None 0 0 None 0 0 None 0 0 None 0 0 None 0 0 None 0 0 None 0 0 None 0 0 None 0 0 None 0 0 None 520 5 None 440 56 None

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

	Number	Reasons for recall
Voluntary recalls	0	Not applicable
Forced recalls	0	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.

Ensuring the security and confidentiality of the Company’s information and associated data is vital for its sustained operations and trust of stakeholders. SRF has a well-defined cyber security policy and implementation framework. The said policy can be accessed at https://www.srf.com/wp-content/ uploads/2024/03/Cyber-Security-Policy.pdf

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 with multi factor authentication
Control of privileged user (IT support team) access through PIM/PAM solutions
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, segregation and micro segmentation of servers, network and IT-OT 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.
Periodic automated vulnerability assessment and patch management
Regular backups sufficiently segregated to ensure recovery in the event of any compromise.

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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; reoccurrence of instances of product recalls; penalty / action taken by regulatory authorities on safety of products / services.

Not applicable

7. Provide the following information relating to data breaches: a. Number of instances of data breaches along-with impact None

b. Percentage of data breaches involving personally identifiable information of customers None
c. Impact, if any, of the data breaches

None

Note: BRSR Core Indicator

2009

Polyester Industrial Yarn

We commenced commercial production of Polyester Industrial Yarn in May 2009 with a capacity of 14,500 Metric Tonnes per Annum. Located in Gummidipoondi (Tamil Nadu, India), the manufacturing facility takes pride in its state-of-the-art technology installation from Toray Industries, Japan.

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Independent Assurance Statement

assurance’ section below. We do not accept or assume any responsibility for any other purpose or to any other person or organization. Any reliance a third party may place on the Report is entirely at its own risk.

To,

SRF Limited

The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, Second Floor, Mayur Place, Noida Link Road, Mayur Vihar Phase-1 Extn, Delhi 110 091

Assurance standard

We conducted our assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised), “Assurance Engagements Other than Audits or Reviews of Historical Financial Information” and ISAE 3410, “Assurance Engagements on Greenhouse Gas Statement” issued by the International Auditing and Standards Board. We applied the criteria of ‘Reasonable’ assurance.

Independent Assurance Statement to SRF Limited on BRSR Core non-financial sustainability disclosures in the Business Responsibility and Sustainability Report for the financial year 2023-24.

Introduction and objective of engagement

SRF Limited (the ‘Company’) has developed its Business Responsibility and Sustainability Report (BRSR) (the ‘Report’) based on the BRSR reporting guidelines including the BRSR Core indicators prescribed by SEBI for listed entities. The reporting criteria have been derived from the Principles of National Guidelines on Responsible Business Conduct (NGRBC), and Greenhouse Gas (GHG) Protocol - A Corporate Accounting and Reporting Standard.

Scope & boundary of assurance

We have assured non-financial information of the BRSR Core indicators[1] in the Report, pertaining to Company’s performance for the period 1st April 2023 through 31st March 2024.

The scope and boundary of Company’s reporting as well as our assurance cover the Company’s operations as defined in Section A (General Disclosures) of the Report.

BDO India LLP was engaged by the Company to provide independent assurance on BRSR Core indicators of the Report that includes the Company’s performance for the period 1st April 2023 through 31st March 2024.

Assurance methodology

Our assurance process entailed conducting procedures to gather evidence regarding the reliability of the disclosures covered in the assurance scope.

The Company’s responsibilities

The report content and its presentation are the sole responsibilities of the management of the Company. The Company management is also responsible for the design, implementation, and maintenance of internal controls relevant to the preparation of the Report, so that it is free from material misstatement.

Verification of non-financial sustainability performance data, was conducted at the following manufacturing facilities, on a sample basis, based on our professional judgement:

Chemical Business: Dahej and Bhiwadi Site

BDO’s responsibilities

Packaging Films Business: Indore Site [Domestic Tariff Area 1 (DTA1), Domestic Tariff Area 2 (DTA2), Special Economic Zone (SEZ)] and Kashipur Site

BDO’s responsibility, as agreed with the management of the Company, is to provide reasonable assurance on the non-financial information of the BRSR Core indicators as described in the ‘Scope & boundary of

1 SEBI vide SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122 dated 12 July 2023

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The Company’s statements that describe the expression of opinion, belief, inference, aspiration, expectation, aim, or future intention.

These manufacturing facilities, combined, represent approximately 80% of the revenue generated by the Company.

Our observations

We conducted a review and verification of data collection, collation, and calculation methodologies, and a general review of the logic of inclusion/ omission of relevant information/ data in the Report.

During our review and assurance, we observed collection, collation, and calculation methodologies, that the process of consolidation of data from and a general review of the logic of inclusion/ omission different sources at plant level, needs to be further of relevant information/ data in the Report. strengthened. Certain data collation and compilation discrepancies, which were noted during our review, Our review process included: were subsequently corrected. Additionally, the • Evaluate and assess the appropriateness of the Company may consider augmented processes for quantification methods used to arrive at the maintenance of evidence trail of back-up data of non-financial sustainability information of BRSR reported information, for enhancing auditability. Core indicators in the Report;

Our above observations, however, does not affect our
• Review of consistency of data/information conclusion regarding the Report.
within the report as well as between the Report and source; Our conclusion
Based on the scope of our review, we conclude that the non-financial sustainability disclosures as mentioned in ‘Scope and boundary of assurance’ fairly fulfil the criteria of relevance, completeness, reliability, neutrality, and understandability.
Engagement through discussions with personnel at both corporate and business unit levels who are accountable for the data and information presented in the Report;
Execution of an audit trail of claims and data streams, to determine the level of accuracy in collection, transcription, and aggregation;

Our assurance team and independence

BDO India LLP is a professional services firm providing services in Advisory, Assurance, Tax, and Business Advisory Services, to both domestic and international organizations across industry sectors. Our non-financial assurance practitioners for this engagement are drawn from a dedicated Sustainability and ESG Team in the organization. This team is comprised of multidisciplinary professionals, with expertise across the domains of sustainability, global sustainability reporting standards and principles, and related assurance standards. This team has extensive experience in conducting independent assurance of sustainability data, systems, and processes across sectors and geographies. As an assurance provider, BDO India LLP is required to comply with the independence requirements set out in the International Federation of Accountants (IFAC) Code of Ethics for Professional Accountants. Our independence policies and procedures ensure compliance with the Code.
Review of data collection and management procedures, and related internal controls.

Inherent limitations

There are inherent limitations in an assurance engagement, including, for example, the use of judgment and selective testing of data. Accordingly, there are possibilities that material misstatements in the sustainability information of the BRSR Core indicators in the Report may remain undetected.

The assurance scope excludes:

Data and information outside the defined reporting period (1st April 2023 to 31st March 2024);
Any information not covered in ‘Scope & boundary of assurance’;

For BDO India LLP

Review of the ‘economic and/or financial performance indicators’ included in the Report or on which reporting is based; we have been informed by the Company that these are derived from the Company’s audited financial records;

Dipankar Ghosh

Partner and Lead| Sustainability & ESG Business Advisory Services

Dated: 31st May 2024

SRF Limited

(CIN: L18101DL1970PLC005197)

Regd. Office: The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, 2nd 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

Notice is hereby given that the 53[rd] Annual General Meeting of SRF Limited will be held on Friday, June 28, 2024 at 11.00 a.m. through Video Conferencing (“VC”) / Other Audio Visual Means (“OAVM”) facility to transact the following businesses: -

and Disclosure Requirements) Regulations, 2015 (the “Listing Regulations”) (including any statutory modification(s), amendment(s) or re-enactment(s) thereof, for the time being in force), the Articles of Association of the Company, based on the recommendations of the Nomination and Remuneration Committee and the Board of Directors of the Company (the “Board”), Ms. Ira Gupta (DIN:07517101), who was appointed as an Additional Non-Executive Independent Director of the Company with effect from April 01, 2024 and who has submitted a declaration that she meets the criteria for independence as provided in Section 149(6) of the Act and Regulation 16(1)(b) of the Listing Regulations and who is eligible for appointment and in respect of whom the Company has received a notice in writing under Section 160 of the Act from a member proposing her candidature to the office of Director, be and is hereby appointed as an Independent Director of the Company, not liable to retire by rotation, to hold office for a term of 5 years commencing from April 01, 2024 to March 31, 2029.”

Ordinary Business

Adoption of Audited Standalone and Consolidated Financial Statements

To receive, consider and adopt the standalone and consolidated audited financial statements of the Company for the financial year ended March 31, 2024 along with the Reports of the Auditors’ and Board of Directors’ thereon.

2. Re-appointment of Director retiring by rotation

To appoint a Director in place of Mr. Vellayan Subbiah (DIN 01138759), who retires by rotation and being eligible, offers himself for re-election.

Special Business

Appointment of Ms. Ira Gupta (DIN: 07517101) as an Independent Director

“ RESOLVED FURTHER THAT the Board be

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

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

“ RESOLVED THA T in accordance with the provisions of Sections 149, 150, 152 read with Schedule IV and other applicable provisions, if any, of the Companies Act, 2013 (the “Act”) and Rules framed thereunder and the applicable provisions of the Securities and Exchange Board of India (Listing Obligations

Appointment of Mr. Vineet Agarwal (DIN:

00380300) as an Independent Director

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

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Annual Report [2023-24]

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“ RESOLVED THAT in accordance with the provisions of Sections 149, 150, 152 read with Schedule IV and other applicable provisions, if any, of the Companies Act, 2013 (the “Act”) and Rules framed thereunder and the applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the “Listing Regulations”) (including any statutory modification(s), amendment(s) or re-enactment(s) thereof, for the time being in force), the Articles of Association of the Company, based on the recommendations of the Nomination and Remuneration Committee and the Board of Directors of the Company (the “Board”), Mr. Vineet Agarwal (DIN:00380300), who was appointed as an Additional Non-Executive Independent Director of the Company with effect from April 01, 2024 and who has submitted a declaration that he meets the criteria for independence as provided in Section 149(6) of the Act and Regulation 16(1) (b) of the Listing Regulations and who is eligible for appointment and in respect of whom the Company has received a notice in writing under Section 160 of the Act from a member proposing his candidature to the office of Director, be and is hereby appointed as an Independent Director of the Company, not liable to retire by rotation, to hold office for a term of 5 years commencing from April 01, 2024 to March 31, 2029.”

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

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

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

“ RESOLVED THAT pursuant to the provisions of Sections 42, 71, 179 and any other applicable provisions of the Companies Act, 2013 read with Companies (Prospectus and Allotment of Securities) Rules, 2014 (including any statutory modification(s) or re-enactment thereof, for the time being in force), the Board of Directors of the Company (which term shall be deemed to include any Committee of the Board duly authorized by it in this regard in accordance with the applicable provisions of the said Act) be and is hereby authorised to issue, offer or invite subscriptions for secured/unsecured redeemable non-convertible debentures, in one or more series/tranches, aggregating upto ` 1500 crores (Rupees fifteen hundred crores only), on private placement basis, and on such terms and conditions as the Board of Directors may, from time to time, determine and consider proper and most beneficial to the Company including as to the timing of issue of such Debentures, the consideration for the issue, the utilisation of the issue proceeds and all other matters connected with or incidental thereto.”

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

�Ratification�of�Remuneration�of�Cost� Auditors�for�financial�year�2024-25�

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, 2025 as provided below, be and is hereby ratified:

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

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

Rajat Lakhanpal Sr. VP (Corporate Compliance) & Company Secretary Membership No. ACS 12725

Date : May 07, 2024 Place : Gurugram

SRF Limited

(CIN: L18101DL1970PLC005197)

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

to hold Annual General Meeting (AGM) through Video Conferencing (VC) or Other Audio Visual means (OAVM).

NOTES

Explanatory Statement pursuant to Section 102 Video Conferencing (VC) or Other Audio of the Companies Act, 2013, which sets out Visual means (OAVM). details of material facts relating to the Special businesses to be transacted at this AGM, is 3. In compliance with the applicable provisions of annexed hereto. the Companies Act, 2013 (“the Act”) read with the aforesaid MCA Circulars and SEBI (Listing
Ministry of Corporate Affairs (“MCA”), vide Obligations and Disclosure Requirements) Circular No. 14/2020 dated April 8, 2020, Circular Regulations, 2015 (“Listing Regulations”), the No.17/2020 dated April 13, 2020 read with Circular 53rd AGM of the Company is being conducted No. 20/2020 dated May 5, 2020 read together with through VC/OAVM. Deemed Venue for meeting Circular No. 02/2021 dated January 13, 2021 read will be Registered Office: The Galleria, DLF Mayur with Circular No. 2/2022 dated May 5, 2022 read Vihar, Unit No. 236 & 237, 2nd Floor, Mayur Place, with Circular No. 10/2022 dated December 28, 2022 Mayur Vihar Phase I Extn, Delhi – 110091.
Ministry of Corporate Affairs (“MCA”), vide Obligations and Disclosure Requirements) Circular No. 14/2020 dated April 8, 2020, Circular Regulations, 2015 (“Listing Regulations”), the No.17/2020 dated April 13, 2020 read with Circular 53rd AGM of the Company is being conducted No. 20/2020 dated May 5, 2020 read together with through VC/OAVM. Deemed Venue for meeting Circular No. 02/2021 dated January 13, 2021 read will be Registered Office: The Galleria, DLF Mayur with Circular No. 2/2022 dated May 5, 2022 read Vihar, Unit No. 236 & 237, 2nd Floor, Mayur Place, with Circular No. 10/2022 dated December 28, 2022 Mayur Vihar Phase I Extn, Delhi – 110091. and Circular No. 09/2023 dated September 25, 2023 (collectively referred to as ‘MCA Circulars’) 4. National Securities Depository Limited (NSDL), and SEBI vide its circular dated May 12, 2020, will be providing facility for voting through January 15, 2021, May 13, 2022, January 5, remote e-voting, for participation in the 53rd 2023 and dated October 07, 2023 (collectively AGM through VC/OAVM facility and e-voting referred to as ‘SEBI Circulars’) has permitted during the AGM.

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IEPF from time to time also have been uploaded on the “Investors Section” of the website of the Company viz. www.srf.com .

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 there at and cast their votes through e-voting.

Members, who have not encashed their dividend pertaining to financial year 2017-18 onwards, are advised to write at [email protected] to M/s. Kfin Technologies Limited, Registrar of the Company immediately for claiming the same.

  8. 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 21, 2024 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.

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 Register of Directors and Key Managerial
The attendance of members (members’ login) Personnel and their shareholding maintained attending the AGM through VC/ OAVM shall under Section 170 of the Companies Act, 2013, be reckoned for the purpose of Quorum under the Register of contracts or arrangements in Section 103 of the Companies Act, 2013 and which directors are interested under Section 189 hence no attendance slip is attached to the notice. of the Companies Act, 2013, ESPS Certificate by Secretarial Auditor dated May 07, 2024 that SRF
Pursuant to the applicable provisions of the Limited Long term Share based Incentives Plan, Companies Act 2013, unpaid/unclaimed 2018 has been implemented in accordance with dividends up to the financial year 2016-17, SEBI (Share Based Employee Benefits and Sweat were transferred to the Investor Education & Equity) Regulations, 2021 and in accordance with Protection Fund (IEPF). Besides the dividend the resolutions of the company passed through so transferred, Company has also transferred Postal Ballot on March 26, 2018. All documents the relative share scrips in respect of dividends referred to in the Notice will also be available which remained unpaid for a continuous period for electronic inspection without any fee by the of seven years to the demat account of IEPF members from the date of circulation of this Authority, in accordance with the applicable Notice up to the date of AGM, i.e. June 28, 2024. provisions of Companies Act, 2013 and Rules Members can inspect the same by sending an made thereunder. It may be noted that once the E-mail to [email protected]. unclaimed / unpaid dividend and/or shares are so transferred; the same can only be reclaimed 10. Pursuant to the MCA Circulars and SEBI Circulars, by a shareholder from the IEPF Authority in the Notice of the 53rd AGM and the Annual accordance with the applicable provisions of Report for the financial year 2023-24 are being the Companies Act 2013 and relevant Rules sent only by email to the Members whose name made thereunder by following the prescribed appear in the register of members/depositories procedure in this regard. The IEPF Rules and the as at closing hours of business on May 24, application Form (Form IEPF-5), as prescribed 2024. Members may note that the Notice and by the Ministry of Corporate Affairs, are available Annual Report 2023-24 will also be available on on the website of the Ministry of Corporate the Company’s website www.srf.com, websites , websites Affairs at www.iepf.gov.in. Details of the unpaid/ of the Stock Exchanges, that is, BSE Limited unclaimed dividend and shares transferred to and National Stock Exchange of India Limited
1. Pursuant to the MCA Circulars and SEBI Circulars, the Notice of the 53rd AGM and the Annual Report for the financial year 2023-24 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 24, 2024. Members may note that the Notice and Annual Report 2023-24 will also be available on the Company’s website www.srf.com, websites , websites of the Stock Exchanges, that is, BSE Limited and National Stock Exchange of India Limited
at www.bseindia.com and www.nseindia.com, a. For Members holding shares in physical respectively, and on the website of NSDL, the form, please send scan copy of a signed e-voting agency at www.evoting.nsdl.com. request letter mentioning your folio number, The physical copy of the Notice along with complete address, email address to be Annual Report shall be made available to the registered along with scanned self attested Member(s) who may request for the same in copy of the PAN and any document (such as Driving License, Passport, Bank Statement,
writing to the Company. AADHAR) supporting the registered address
1. Those Members, whose email address is not of the Member, by email to the Company’s email address at [email protected] or to Registrar
registered with the Company or with their & Transfer Agent email address at
respective Depository Participant/s, and who [email protected]
wish to receive the Notice of the 53rd AGM and the Annual Report for the year 2023-24 and b. For the Members holding shares in
all other communication sent by the Company, demat form, please update your email
from time to time, can get their email address address through your respective
registered by following the steps as given below:-
b. For the Members holding shares in demat form, please update your email address through your respective Depository Participant/s.
We request Members to support our commitment to environmental protection by choosing to receive the Company’s communication through email. Members holding shares in Demat mode, who have not registered their email addresses are requested to register their email addresses with their respective DP, and Members holding shares in physical mode are requested to update their email addresses with the Company’s RTA at [email protected]. Members may follow the process detailed below for availing other services from RTA :

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Type of Holder Process to be followed
Physical For availing the following investor services, send a written request in the prescribed forms to the
RTA of the Company, KFin Technologies Limited either by email to [email protected] or by
post to Selenium Tower B, Plot 31 & 32, Financial District, Nanakramguda, Serilingampally Mandal,
Hyderabad – 500032
Form for availing investor services to register PAN, email address, bank details and Form ISR - 1
other KYC details or changes / update thereof for securities held in physical mode
Update of signature of securities holder Form ISR - 2
For nomination as provided in the Rules 19 (1) of Companies (Share capital and Form SH-13
debenture) Rules, 2014
Declaration to opt out Form ISR-3
Cancellation of nomination by the holder(s) (along with ISR-3) / Change of Nominee Form SH-14
Form for requesting issue of Duplicate Certificate and other service requests for ISR-4
shares / debentures / bonds, etc., held in physical form
The forms for updating the above details are available at Company’s Website https://www.srf.com/
-
investors/investors information/ and website of RTA at Investor Support Center | Kfintech
Demat Please contact your DP and register your email address and bank account details in your demat
account, as per the process advised by your DP.
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SEBI has mandated the submission of PAN, KYC details and nomination by holders of physical securities and linking PAN with Aadhaar vide its circulars dated March 16, 2023, and November 17, 2023. Shareholders are requested to submit their PAN, KYC and nomination details to the Company’s RTA KFin Technologies Limited at https://ris.kfntech.com/clientservices/isc/ default.aspx. The forms for updating the same are available at https://www.srf.com/investors/ investors-information/ Members holding shares in electronic form are also requested to submit / update their KYC details and bank details with their depository participant(s) and link PAN with Aadhaar, if required.
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. SH-13. 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 53rd AGM and facility for those Members participating in the 53rd AGM to cast vote through e-Voting system during the 53rd AGM.

II. The remote e-Voting period will commence on June 25, 2024 (9:00 am IST) and end on June 27, 2024 (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 21, 2024 , 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 evoting@ nsdl.com However, if you are already registered with NSDL for remote e-Voting then you can use your existing user ID and password for casting your vote. If you have forgotten your password, you could reset your password by using “Forgot User Details/Password” or “Physical User Reset Password” option available on www.evoting. nsdl.com. In case of Individual shareholders holding securities in Demat mode, who acquires shares of the Company and become member of the Company after dispatch of the Notice and holding shares as of the Cut-off date, are requested to follow the login method mentioned below in point (A) under e-Voting instructions.

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

Step 1 : Access to NSDL e-Voting system

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

Details on Step 1 is mentioned below:

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

Type of shareholders Login Method

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.

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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Annual Report [2023-24]

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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 and password. Option will be made available to reach e-Voting page without any further demat 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 demat Participant registered with NSDL/CDSL for e-Voting facility. mode) login through their 2. Once login, you will be able to see e-Voting option. Once you click on e-Voting option, you
depository participants will be redirected to NSDL/CDSL Depository site after successful authentication, wherein you can see e-Voting feature.
Click on options available against company name or e-Voting�service�provider-NSDL and you will be redirected to e-Voting website of NSDL for casting your vote during the remote e-Voting period or joining virtual meeting & voting during the meeting.

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

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

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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 022-48867000
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 1800225533
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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.
A new screen will open. You will have to retrieve your ‘initial password’, you enter your User ID, your Password/OTP and need to enter the ‘initial password’ a Verification Code as shown on the screen. and the system will force you to change your password.
Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in at https://eservices.nsdl.com/ with your existing IDEAS login. Once you log-in to NSDL eservices after using your log-in credentials, click on e-Voting and you can proceed to Step 2 i.e. Cast your vote electronically.

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’.

Your User ID details are given below :
Manner of holding
shares i.e.
Demat (NSDL or
CDSL) or Physical
Your User ID is:
a) For Members who
hold shares in
demat account
with NSDL.
8 Character DP ID followed
by 8 Digit Client ID
For example if your DP ID
is IN300 and Client ID
is 12 then your user
ID is IN30012**.
b) For Members who
hold shares in
demat account
with CDSL.
16 Digit Benefciary ID
For example if your
Benefciary
ID
is
12**
then your user ID is
12**
c) For Members
holding shares
in Physical Form.
EVEN
Number
followed
by
Folio
Number
registered
with the company
For example if folio
number is 001 and
EVEN is 123456 then
user ID is 123456001
the .pdf fle 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 fle 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
6.
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)
PhysicalUserResetPassword?**”
(If
you
are
holding
shares
in
physical mode) option available on

b) �Physical�User�Reset�Password? ” (If you are holding shares in physical mode) option available on www.evoting.nsdl.com.
Password details for shareholders other than Individual shareholders are given below:
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.
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

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After entering your password, tick on Agree 2. Only those Members/ shareholders, who will be to “Terms and Conditions” by selecting present in the AGM through VC/OAVM facility and on the check box. have not casted their vote on the Resolutions through remote e-Voting and are otherwise not
Now, you will have to click on “Login” button. barred from doing so, shall be eligible to vote through e-Voting system in the AGM.
After you click on the “Login” button, Home page of e-Voting will open.
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.

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

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

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.
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
Select “EVEN” of company for which you wish individuals, HUF, NRI etc.) are required to to cast your vote during the remote e-Voting send scanned copy (PDF/JPG Format) of the period and casting your vote during the General relevant Board Resolution/ Authority letter etc. Meeting. For joining virtual meeting, you need with attested specimen signature of the duly authorized signatory(ies) who are authorized

to click on “VC/OAVM” link placed under “Join to vote, to the Scrutinizer by e-mail to

General Meeting”. [email protected] with a copy marked to

Now you are ready for e-Voting as the [email protected] and [email protected] Voting page opens.
Institutional shareholders (i.e. other than
1. Cast your vote by selecting appropriate individuals, HUF, NRI etc.) can also upload their options i.e. assent or dissent, verify/modify Board Resolution / Power of Attorney / Authority the number of shares for which you wish to Letter etc. by clicking on “ Upload Board cast your vote and click on “Submit” and also Resolution / Authority Letter ” displayed “Confirm” when prompted. under “e-Voting” tab in their login
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.
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:-

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.:
The procedure for e-Voting on the day of the AGM is same as the instructions mentioned above for remote e-voting.

1800 1020 990 and 1800 22 44 30 or send a request to Pallavi Mhatre at [email protected]

User ID and Password may retrieve the same by following the remote e-Voting instructions mentioned in the notice to avoid last minute rush.

Process for those shareholders whose email ids are not registered with the depositories for procuring user id and password and registration of e mail ids for e-voting for the resolutions set out in this notice:
Members are encouraged to join the Meeting through Laptops for better experience.
Further Members will be required to allow Camera and use Internet with a good speed to avoid any disturbance during the meeting.
a) In case shares are held in physical mode please provide Folio No., Name of shareholder, scanned copy of the share certificate (front and back), PAN (self attested scanned copy of PAN card), AADHAR (self attested scanned copy of Aadhar Card) by email to evoting@nsdl. com or [email protected].
Please note that Participants Connecting from Mobile Devices or Tablets or through Laptop connecting via Mobile Hotspot may experience Audio/Video loss due to Fluctuation in their respective network. It is therefore recommended to use Stable Wi-Fi or LAN Connection to mitigate any kind of aforesaid glitches.
b) In case shares are held in demat mode, please provide DPID-CLID (16 digit DPID + 5. Members who would like to express their views CLID or 16 digit beneficiary ID), Name, client or ask questions during the AGM may register master or copy of Consolidated Account themselves as a speaker by sending their request
statement, PAN (self attested scanned from their registered email address mentioning
copy of PAN card), AADHAR (self attested their name, DP ID and Client ID/folio number,
scanned copy of Aadhar Card) to evoting@ PAN, mobile number at [email protected] from June 21, nsdl.com or [email protected]. If you are an 2024 (9:00 am IST) to June 24, 2024 (5:00
Individual shareholders holding securities in pm IST). Those Members who have registered
demat mode, you are requested to refer to themselves as a speaker will only be allowed
the login method explained at step 1 (A) to express their views/ask questions during
i.e. Login method for e-Voting and joining the AGM. The Company reserves the right to
virtual meeting for Individual shareholders restrict the number of speakers depending on
holding securities in demat mode. the availability of time for the AGM.

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

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.

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

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Any person who acquires shares of the Company and becomes member of the Company post-dispatch 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. 2

Mr. Vellayan Subbiah (DIN: 01138759)

Mr. Vellayan Subbiah is a Director liable to retire by rotation. In compliance with the requirements of Section 152 of the Companies Act, 2013, Mr. Vellayan Subbiah shall, retire at the 53rd Annual General Meeting and being eligible offers himself for re-appointment.
Mr. Vellayan Subbiah (54) is a Bachelor of Technology in Civil Engineering from IIT, Madras, and holds a Master’s Degree in Business Administration from the University of Michigan. He has over 28 years of work experience in consulting, technology manufacturing, and financial services.
Mr. Vellayan Subbiah is the Chairman of Cholamandalam Investment & Finance Co. Ltd., a leading NBFCs in India in the business of Vehicle Finance, Home Loans, SME Loans, etc. Mr. Vellayan worked with McKinsey & Company, USA for six years. His experience at McKinsey spanned across strategic consulting, mergers and acquisitions and operations management. Vellayan also worked with 24/7 Customer Inc., Sundaram Fasteners, and Laserwords in different capacities. He was a recipient of the Extraordinary Entrepreneur of the year – TiECON 2014 Award.

Mr Vellayan Subbiah holds 67035 shares (0.02%) shares in the Company. Details of Directorship in other Companies and Memberships and Chairmanships of the Committees in other Companies are as follows -

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

Directorships in Committee Membership
other companies
Cholamandalam - Corporate Social Responsibility
Investment & Committee - Chairman
Finance Co. Ltd - IT Strategy Committee
- Nomination &
Remuneration Committee
- Business Committee – Chairman
Tube Investments - Shares &
of India Limited Debentures Committee
- Loans Committee
CG Power and Industrial - Nomination &
Solutions Limited Remuneration Committee
- Risk Management
Committee – Chairman
Cholamandalam Financial Nil
Holdings Limited
Ambadi Investments Ltd Nil
3xper Nil
Innoventure Limited
Cherrytin Online Nil
Private Limited
DOT IOT Technologies Nil
Private Limited
TI Clean Mobility Nil
Private Limited
CG Semi Private Limited Nil
Mavco Investments Nil
Private Limited
----- End of picture text -----

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

The Board recommends the ordinary resolution set out in item no. 2 of the Notice for approval by the members.

Item No. 3

The Board of Directors of the Company, based on the recommendation of the Nomination and Remuneration Committee had approved the appointment of Ms. Ira Gupta (50 years) (DIN:07517101), as an Additional Non-Executive Independent Director of the Company with effect from April 01, 2024 under Sections 149, 150, 152 and other applicable provisions of the Companies Act, 2013 (the “Act”) and the Articles of Association of the Company.

In accordance with the provisions of Section 149 read with Schedule IV of the Act, appointment of Independent Director requires approval of the members of the Company.

The Company has received notice under Section 160 of the Act from a member proposing the candidature of Ms. Ira Gupta for the office of an Independent Director of the Company. The Company has also received from Ms. Gupta (i) consent in writing to act as Director in Form DIR-2 pursuant to Rule 8 of the Companies (Appointment & Qualification of Directors) Rules, 2014, (ii) intimation in Form DIR-8 in terms of the Companies (Appointment & Qualification of Directors) Rules, 2014, to the effect that she is not disqualified under Section 164(1) and 164(2) of the Act, (iii) a declaration to the effect that she meets the criteria of independence as provided under Section 149(6) of the Act and Rules framed thereunder and Regulation 16(1)(b) of the SEBI Listing Regulations, (iv) declaration pursuant to BSE Circular No. LIST/ COMP/14/2018-19 dated June 20, 2018 and NSE Circular No. NSE/CML/2018/24 dated June 20, 2018, that she has not been debarred from holding office of a Director by virtue of any Order passed by the Securities and Exchange Board of India or any other such authority.

Further, Ms. Gupta has confirmed that she is not aware of any circumstance or situation which exists or may be reasonably anticipated that could impair or impact her ability to discharge her duties as an Independent Director of the Company. Ms. Gupta has confirmed that she is in compliance with Rules 6(1) and 6(2) of the Companies (Appointment and Qualification of Directors) Rules, 2014, with respect to her registration with the data bank of Independent Directors maintained by the Indian Institute of Corporate Affairs.

Ms. Ira Gupta leads a HR Advisory practice focused on leadership coaching, succession and culture. She brings 27 years of experience as a HR leader and coach and believes in the ability to scale impact for organisations and people through helping leaders achieve their full potential. She has been the CHRO at

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==> picture [58 x 31] intentionally omitted <==

Microsoft India and South Asia and led HR functions in organisations that spanned product engineering, development centres, services delivery, consulting, research labs, and sales and marketing in these geographies. Prior to 12 years with Microsoft, she was HR leader at GlaxoSmithKline. She has worked extensively on succession and talent management, leadership coaching and development, organisation transformation and culture across companies engaged in Tech, Pharma and FMCG sectors. She has worked as a Director on the governing bodies of NGOs, Advisory Board member for educational institutions including XLRI and a member of committees at both CII and FICCI.

The nomination and remuneration committee has considered her diverse skills, analysing business problems, adapting to changing business conditions, Talent Management, Devising plans for New Business, Proposing solutions in Business problems, Mentoring Abilities, Critical thinking, Strategic planning, Analytical Decision making, Leading change, Leading people and vast global business experience, among others, as being some of the skills identified by the Board for an Independent Director. In view of the above, the nomination and remuneration committee and the Board are of the view that Ms. Ira Gupta possesses the requisite skills and capabilities, which would be of immense benefit to the Company, and hence, it is desirable to appoint her as an independent director.

In the opinion of the Board, Ms. Ira Gupta is independent of the management.

Ms. Ira Gupta has no shareholding in the Company. She is a member of Nomination and Remuneration Committee and Corporate Social Responsibility Committee of the Company, and she doesn’t hold directorship in any other Company. She was Independent Director in KAMA Holdings Limited till February 13, 2024.

The terms and conditions of appointment of Ms. Gupta as an Independent Director is available at www.srf.com

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

Keeping in view her vast experience in the field of people and talent management which can add value to the discussions and deliberations of the Board, her appointment is recommended for approval of the members by way of special Resolution set out in Item No. 3 of the Notice.

Item No. 4

The Board of Directors of the Company, based on the recommendation of the Nomination and Remuneration Committee had approved the appointment of Mr. Vineet Agarwal (50 years) (DIN: 00380300), as an Additional Non-Executive Independent Director of the Company with effect from April 01, 2024 under Sections 149, 150, 152 and other applicable provisions of the Companies Act, 2013 (the “Act”) and the Articles of Association of the Company.

In accordance with the provisions of Section 149 read with Schedule IV of the Act, appointment of Independent Director requires approval of the members of the Company.

The Company has received notice under Section 160 of the Act from a member proposing the candidature of Mr. Vineet Agarwal for the office of an Independent Director of the Company. The Company has also received from Mr. Agarwal (i) consent in writing to act as Director in Form DIR-2 pursuant to Rule 8 of the Companies (Appointment & Qualification of Directors) Rules, 2014, (ii) intimation in Form DIR-8 in terms of the Companies (Appointment & Qualification of Directors) Rules, 2014, to the effect that he is not disqualified under Section 164(1) and 164(2) of the Act, (iii) a declaration to the effect that he meets the criteria of independence as provided under Section 149(6) of the Act and Rules framed thereunder and Regulation 16(1)(b) of the SEBI Listing Regulations, (iv) declaration pursuant to BSE Circular No. LIST/ COMP/14/2018-19 dated June 20, 2018 and NSE Circular No. NSE/CML/2018/24 dated June 20, 2018, that he has not been debarred from holding office of a Director by virtue of any Order passed by the Securities and Exchange Board of India or any other such authority.

Further, Mr. Agarwal has confirmed that he is not aware of any circumstance or situation which exists or may be reasonably anticipated that could impair

or impact his ability to discharge his duties as an Independent Director of the Company. Mr. Agarwal has confirmed that he is in compliance with Rules 6(1) and 6(2) of the Companies (Appointment and Qualification of Directors) Rules, 2014, with respect to his registration with the data bank of Independent Directors maintained by the Indian Institute of Corporate Affairs.

Mr. Vineet Agarwal is the Managing Director of Transport Corporation of India Ltd. which is one of India’s largest logistics companies. He graduated from Carnegie Mellon University and the Owner President Management program from Harvard Business School. Mr. Agarwal joined TCI in 1996 as the Executive Director and has held various roles within the Company.

Under his leadership, TCI has adapted to new technologies and work systems to grow from strength to strength. He has been active in transforming the organization towards value- added services in the area of supply chain management and multimodal logistics. Mr. Agarwal has played a pivotal role in orienting TCI to move from being a mere trucking company to evolve itself as one of India’s foremost integrated multimodal supply chain solutions provider.

He is ex-President of ASSOCHAM, a leading Chamber of Commerce in India and on the Board of the National Start-up Advisory council. Mr. Agarwal is the Chairman of Transystem Logistics International Limited (a joint venture with Mitsui & Co.) and the Chairman of TCI CONCOR Multimodal Logistics Ltd (a joint venture with CONCOR India Ltd.).

The nomination and remuneration committee has considered his diverse skills, Understanding of relevant laws, rules, regulation and policy, analysing business problems, adapting to changing business conditions, Recommending cost-cutting measures, Recommending Process Improvements, Accounting and finance, Talent Management, Compliance and risk, Devising plans for New Business, Proposing solutions to Business problems, Innovation, Integrity and ethical standards, Mentoring Abilities, Critical thinking, Strategic planning, Entrepreneurial & Commercial Acumen, Analytical Decision making, Customer Centricity, Leading change, Leading people and vast global business experience, among others,

as being some of the skills identified by the Board for an Independent Director. In view of the above, the nomination and remuneration committee and the Board are of the view that Mr. Vineet Agarwal possesses the requisite skills and capabilities, which would be of immense benefit to the Company, and hence, it is desirable to appoint him as an independent director.

In the opinion of the Board, Mr. Agarwal is independent of the management.

Mr. Agarwal has no shareholding in the Company. He is a member of Nomination and Remuneration Committee of the Company.

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Directorship in Committee Membership
other companies
Transport Corporation - Risk Management Committee
of India Limited - Share Transfer Committee
- Corporate &
Restructuring Committee
- Executive
Authorisation - Chairman
Transystem Logistics Nil
International
Private Limited
Loglabs Ventures Nil
Private Limited
TCI Developers Limited - Audit Committee
- Nomination &
Remuneration Committee
- Stakeholders
Relationship Committee
- Share Transfer Committee
Somany Ceramics Limited - Audit Committee
- Risk Management Committee
TCI-Concor Multimodal Nil
Solutions Private Limited
Gloxinia Farms Nil
Private Limited
TCI Institute of Logistics Nil
TCI Express Limited - Audit Committee
- Stakeholders -Relationship
Committee
- Share Transfer Committee
TCI Cold Chain Nil
Solutions Limited
STATUTORY REPORTS
----- End of picture text -----

The terms and conditions of appointment of Mr. Agarwal as an Independent Director is available at www.srf.com

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

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Keeping in view his vast experience of Mr. Agarwal 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 in Item No. 4 of the Notice.

Item No. 5

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.

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. 5 of the Notice for approval of the members authorising the Board to issue redeemable, non-convertible 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. 6

The Board, on the recommendation of the Audit Committee, has approved the appointment of the Cost Auditors to conduct audit of the cost records of the Company for the financial year ending March 31, 2025 at the remuneration as provided in the resolution.

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

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

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

By Order of the Board of Directors

Rajat Lakhanpal

Sr. VP (Corporate Compliance) & Date : May 07, 2024 Company Secretary Place : Gurugram Membership No. ACS 12725

SRF Limited

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

Board’s Report

Dear Members,

Your Directors are pleased to present the 53[rd] Annual Report for the year ended March 31, 2024.

Financial Results

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( ` in Crores)
Particulars Standalone Consolidated
2023-24 2022-23 2023-24 2022-23
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Revenue from operations Other income Total Income Proft Before Interest, Depreciation & Tax (PBIDT) Less: Interest & Finance Charge Less: Depreciation and amortisation charge Proft Before Tax (PBT) Less: Provision For Taxation including Deferred Tax Charge Proft After Taxation (PAT) Add: Proft Brought Forward	10,786.67 12,073.84 13,138.52 14,870.25 119.42 106.06 83.02 74.93
	10,906.09 12,179.90 13,221.54 14,945.18
	2,509.33 3,300.12 2,667.13 3,604.13 235.60 175.82 302.29 204.82 555.85 468.44 672.62 575.32 1,717.88 2,655.86 1,692.22 2,823.99 343.85 632.50 356.51 661.65 1,374.03 2,023.36 1,335.71 2,162.34 7,643.98 5841.95 8726.97 6785.77
Total	9018.01 7865.31 10062.68 8948.11

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Appropriation

Appropriation
	(`In Crores)
Particulars	Standalone Consolidated
	2023-24 2022-23 2023-24 2022-23
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	213.43 213.43 213.43 213.43 3.43 7.90 4.73 7.71 - - - - 8,801.15 7,643.98 9,844.52 8,726.97

` 213.43 Crores. The Board of Directors of the Company has not recommended any final dividend.

Operations Review

Total revenue from operations of the Company on standalone basis decreased by 10.66 per cent from 12,073.84 Crores in 2022-23 to 10,786.67 Crores in 2023-24. The profit before interest, depreciation and tax (PBIDT) including ‘other income’ on a standalone basis decrease from to 3,300.12 Crores in 2022-23 to 2,509.33 Crores in 2023-24.

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 above Interim dividends.

Share Capital

Profit before tax (PBT) from continuing operations on a standalone basis decreased by 35.32 % per cent from 2,655.86 Crores in 2022-23 to . 1,717.88 Crores in 2023-24. After accounting for the provision for tax of 343.85 Crores, profit after tax (PAT) on continuing operations on a standalone basis decreased by 32.09 per cent from 2,023.36 Crores in 2022-23 to ` 1,374.03 Crores in 2023-24

During the year, there was no change in the paid-up share capital of the Company. The paid-up share capital of the Company stood at 296,42,48,250 divided into 29,64,24,825 equity shares of 10/- each.

Non-Convertible Debentures

During the year, the Company has not issued any Non-Convertible Debentures.

Total revenue from operations of the Company on consolidated basis decreased by 11.65 per cent from 14,870.25 Crores in 2022-23 to 13,138.52 Crores in 2023-24. The profit before interest, depreciation and tax (PBIDT) including ‘other income’ on a consolidated basis decreased from 3,604.13 Crores in 2022-23 to 2,667.13 Crores in 2023-24.

As per erstwhile Regulation 50B of SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (NCS Regulations) read with Operational Circular dated August 10, 2021, a large corporate borrower was required to raise a minimum of 25% of their incremental borrowings in a financial year through issuance of debt securities which were to be met over a contiguous block of three years from Financial Year (FY) 2022 onwards. SRF Limited qualified as a large corporate borrower in terms of the said regulations. During FY24 the Company has raised an incremental borrowing of ` 200 Crores on March 26, 2024 and compliance with respect to Regulation 50B would have been met in the subsequent financial year.

Profit before tax (PBT) from continuing operations on a consolidated basis decreased by 40.08 per cent from 2,823.99 Crores in 2022-23 to 1,692.22 Crores in 2023-24. After accounting for the provision for tax of 356.51 Crores, profit after tax (PAT) on continuing operations on a consolidated basis decreased by 38.23 per cent from 2,162.34 Crores in 2022-23 to ` 1,335.71 Crores in 2023-24.

As per SEBI Circular No. SEBI/HO/DDHS/ DDHS-RACPOD1/P/CIR/2023/172 dated October 19, 2023, the Company no longer falls under the definition of a Large Corporate Borrower, Hence the Company is not required to issue any debt securities. The above

Equity Dividend

During the year, your Company has paid two interim dividends of ` 3.60 per share each amounting to

explanation is intended to meet the requirements laid down under the Regulation 50B of SEBI read with aforesaid circular.

SRF Industex Belting (Pty) Ltd. (a wholly owned subsidiary of SRF Global BV) is incorporated in South Africa and presently engaged in the business of trading in packaging films in South Africa and other neighbouring countries.

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.

SRF Europe Kft (a wholly owned subsidiary of SRF Global BV) is incorporated in Hungary to undertake the manufacture of packaging films in Hungary.

Business Responsibility and Sustainability

Report

ESG Report for FY 2023-24 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 2023-24

SRF Middle East LLC (a wholly owned subsidiary of SRF Global BV) incorporated in UAE during the year. It is engaged in business of trading in refrigerant gases in Middle East.
SRF Holiday Home Ltd. is a wholly owned subsidiary of the Company incorporated in India. This company is engaged in the business of acquisition and renting of real estate properties.

and is presented along with the above ESG Report.

Subsidiaries, Joint Ventures and Associate

companies

SRF Altech Limited is a wholly owned subsidiary of the Company incorporated in India. It is engaged in the business of manufacture of Aluminium foil.

As on March 31, 2024, your Company had 8 (eight) wholly owned subsidiary companies out of which 2 (two) wholly owned subsidiary companies are registered in India and remaining 6 (six) are registered outside India. 3 (three) of these are direct wholly owned subsidiaries and rest 5 (five) are step-down wholly owned subsidiaries. The consolidated profit and loss account for the period ended March 31, 2024 includes the profit and loss account for these 8 (eight) wholly owned subsidiaries for the Financial Year ended March 31, 2024.

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.

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. 434. 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 5 (five) step-down subsidiaries of the Company.
SRF Industries (Thailand) Ltd. (a wholly owned Company’s website at the link: -

subsidiary of SRF Global BV) is incorporated in h t t p s : / / w w w . s r f . c o m / w p c o n t e n t / Thailand and engaged in the manufacture and uploads/2021/04/2019-02-04-SRF-Limited-Policydistribution of packaging films. on-Material-Subsidiary-Companies.pdf

SRF Flexipak (South Africa) (Pty) Ltd. The annual accounts of the subsidiary companies will (a wholly owned subsidiary of SRF Global BV) also be kept open for inspection at the registered is incorporated in South Africa and engaged in office of the Company and of respective subsidiary manufacture and distribution of packaging films. companies. Further, the annual accounts of the

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subsidiaries are also available on the website of the

Company viz. www.srf.com

Directors & Key Managerial Personnel

During the year, the Members of the Company at the 52nd Annual General Meeting held on June 30 2023, had re- appointed Ms. Bharti Gupta Ramola as Independent Director of the Company for a further period of 5 years w.e.f. February 04, 2024 and Mr. Puneet Yadu Dalmia & Mr. Yash Gupta as Independent Directors of the Company for a further period of 5 years each w.e.f. April 1, 2024.

Mr. Lakshman Lakshminarayan (DIN: 00012554) and Mr. Tejpreet S Chopra (DIN: 00317683) completed their second term as Independent Directors on the closing of business hours of March 31, 2024 and accordingly ceased to be Independent Directors and Members of the Board of Directors of the Company. The Board of Directors place on record their deep appreciation for the wisdom, knowledge and guidance provided by Mr. Lakshman Lakshminarayan and Mr. Tejpreet S Chopra during their tenure.

Mr. Vellayan Subbiah, Director (DIN: 01138759), is retiring by rotation and being eligible, offers himself for re-appointment.

The Board on the recommendation of Nomination and Remuneration Committee has recommended the proposals for appointment of Mr. Vineet Agarwal (DIN: 00380300) and Ms. Ira Gupta (DIN: 07517101) as Independent Directors for a 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/reappointed 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. They are also independent of the management. 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.

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.

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/investors/ - corporate governance/

In accordance with the aforesaid Policy, the Nomination and Remuneration Committee evaluates the performance of the Executive Directors, NonIndependent non- executive Director and Independent Directors based on the criteria more particularly described in the enclosed Nomination, Appointment and Remuneration policy. Board evaluates, its own performance, performance of the Chairman 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/2023/04/Familarisation programme for-Independent-Directors.pdf

During the year 2023-24, Five meetings of the Board of Directors were held. For further details, please refer to report on Corporate Governance on page no. 196 of this Annual Report.

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 2023-24 and hence the same is not provided.

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 Your Directors draw attention of the members to policies and applied them consistently and made Note 32 to the notes to accounts forming part of judgments and estimates that are reasonable the financial statements which sets out related party and prudent so as to give a true and fair view of transaction disclosures. the state of affairs of the company at the end of the financial year and of the profit and loss of the Particulars of Loans given, Investments company for that period; made, Guarantees given and Securities provided
(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;

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 40(d) of Additional Disclosures forming part of the standalone financial statement).

(d) the directors had prepared the annual accounts on a going concern basis;

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, (Chairman of the Committee), Mr. Yash Gupta, Mr. Lakshman Lakshminarayan, (ceased on March 31, 2024), and Ms. Ira Gupta, Independent Director (w.e.f April 1, 2024) as other members.
(e) the directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively ; and
(f) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

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

Contracts and Arrangements with Related Parties

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

The CSR Policy may be accessed on the Company’s website at the link https:// - www.srf.com/wp content/uploads/2023/05/ S R F - C o r p o r a t e - S o c i a l - R e s p o n s i b i l i t y - policy-08-05-2023.pdf

As per the requirements of section 135 (5) of the Companies Act 2013, the CSR Obligation for FY 2023-24 was ` 41.04 Crores. The Board upon recommendations of CSR Committee approved the

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Annual CSR budget of 41.04 Crores for the financial year 2023-24 to be spent in accordance with the Annual Plan, as amended, recommended by the CSR Committee and approved by the Board. Out of the said budget, an amount of 31.50 Crores was spent during the year and an amount of 9.51 Crores which has been allocated to ongoing projects has been transferred to SRF Limited-Unspent CSR Account2023-24 which will be spent on those projects during the next three financial years. A credit of 0.03 Crores (appx) has been availed out of the carried forward credit from the previous three years of excess CSR spent over and above the CSR obligation for one or more of those financial years.

Annual Report on CSR activities for financial year 2023-24 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 stakeholder 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 are 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, no 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 dated February 26, 2018. The said Plan is in compliance with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The disclosures prescribed under the said Regulations are given below:

a. In terms of the “Guidance Note on accounting for employee share based payments” issued by ICAI and Ind AS 102, note no. 34 on Employee Share Based Payments forms part of the notes to standalone annual accounts appearing on page no. 301 of the Annual Report 2023-24. Note No. 1.B.16 forming part of the Accounting Policies which refers to this is also appearing on page no. 248 of the Annual Report 2023-24.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 2022-23 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 2023-24 was ` 46.35 per Share.

c. Other Disclosures mandated by the said circular are given in Annexure III.

Certificate from the Sanjay Grover & Associates, Company Secretaries, Secretarial Auditors of the Company dated May 07, 2024 that SRF Limited Employees Long term Share Based Incentive Plan, 2018 has been implemented in accordance with these regulations and in accordance with the special resolution approved by the shareholders through postal ballot, result of which was declared on March 26, 2018 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-andSenior-Management-Personnel.pdf

Consolidated Financial Statement

The consolidated financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) to comply with the Accounting Standards specified under Section 133

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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, Ms. Bharti Gupta Ramola (Chairperson of the Committee), Mr. Raj Kumar Jain and Mr. Yash Gupta as other members. All the recommendations made by the Audit Committee were accepted by the Board. Mr. Lakshman Lakshminarayan ceased to be the Chairman of Audit Committee w.e.f closing of business hours of 31st March 2024 and Mr. Yash Gupta was appointed as a member w.e.f April 01, 2024.

Accounts and Audit

M/s B S R & Co. LLP, Chartered Accountants (Registration No. 101248W/W-100022) were re-appointed as Statutory Auditors for 5 years in 52nd annual general meeting to hold office from the conclusion of 52nd Annual General Meeting until the conclusion of 57th annual general meeting.

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

Vigil Mechanism

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

The Vigil Mechanism of the Company consists of Code of Conduct for employees, Policy against sexual harassment, Whistleblower Policy, Code of Conduct to Regulate, Monitor and Report Trading by Insiders and Code of Conduct for Directors and Sr. Management Personnel. These t a k e n 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 2024-25 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 2024-25 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 2024-25 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 2022-23, 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, 2023. The due date for filing was August 23, 2023.

Secretarial Auditor

The Board has appointed M/s Sanjay Grover & Associates, Practising Company Secretary, to conduct Secretarial Audit for the financial year 2023-24. The Secretarial Audit Report for the financial year ended March 31, 2024 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 3, 2024 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 office of the Company during business hours on working days upto the date of ensuing Annual general meeting. Any shareholder interested in obtaining a copy of the same may write to the Company Secretary at [email protected]

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

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

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

Annual Return

The Annual Return (MGT-7) of the Company as on 31.03.2024 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, no complaints were received.

Acknowledgements

Your Directors acknowledge with gratitude the co-operation 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 07, 2024 Chairman & Managing Director Place: Gurugram (DIN – 00671567)

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

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

Senior Management Members of the Corporate Leadership Team of the Company (excluding Executive Personnel Directors), Chief Financial Officer and Company Secretary Other Employees Employees other than Key Managerial Personnel and Senior Management Personnel.

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

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

C. Terms of Reference

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

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 :-
Industry knowledge/experience Technical skills/ Behavioural Competencies experience
a) Consulting Experience a) Accounting and a) Integrity and ethical finance 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 e) Entrepreneurial & Conditions New Business Commercial Acumen
f) Recommending cost-cutting f) Proposing solutions to f) Analytical Decision Making measures Business Problems
g) Recommending Process g) Innovation g) Customer Centricity Improvements h) Leading Change i) Leading People

3. In case the proposed appointee is an The Committee / Board shall inter alia, consider Independent Director, he should fulfill the level of remuneration /commission payable by criteria for appointment as Independent other comparable companies, time devoted, Director as per the provisions of the Act, experience, providing guidance on strategic Listing Regulations and other applicable matters and such other factors as it may deem fit. laws and regulations.

F. Evaluation

4. The incumbent should not be disqualified for appointment as a Director pursuant to the provisions of the Act or other applicable laws & regulations.

Performance evaluation of Executive Directors, Non-executive & Non Independent Directors, Independent Directors, Board as a whole, Board Committees and their members and Chairman shall be carried out in following manner:

E. Directors’ Remuneration

The Committee will approve the fixed remuneration to Executive Directors subject to the provisions of the Act, Listing Regulations and other applicable laws & regulations. Commission to the Executive Directors, if any, will be recommended by the Committee to the Board for approval. The Committee/Board shall periodically review the remuneration of such Directors in relation to other comparable companies and other factors like performance of the Company etc. as deemed appropriate.
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 re-appointment, by NRC for recommending to the Board whether to extend or continue the term of appointment of independent

The Committee will recommend to the Board appropriate fees / commission to the non-executive directors for its approval.

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directors. Based upon the recommendations of the NRC, the Board of Directors shall decide to continue their appointment or consider them for reappointment.

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

c) Performance evaluation of Non-Executive & Non- Independent 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 & non-independent Directors.

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

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

of the company, taking into account the views of executive directors and non-executive directors.

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

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

G. Board Diversity

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

H. Eligibility criteria & Remuneration of Key Managerial Personnel, Senior Management Personnel and Other Employees
The eligibility criteria for appointment of Key Managerial Personnel, Senior Management Personnel and Other Employees shall be in accordance with the job description of the relevant position.

In particular, the position of Key Managerial Personnel should be filled by senior personnel having relevant qualifications and experience.

Remuneration Structure

i) Key Managerial Personnel and Senior Management Personnel

The remuneration structure for Key Managerial Personnel and Senior Management Personnel shall be decided taking into account factors such as level of experience, qualification, performance and suitability which shall be

reasonable and sufficient to attract, retain and motivate them.

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

ii) Other Employees

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

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

The annual increments to the remuneration paid to the employees shall be determined based on the appraisal carried out by the respective reporting managers/HODs of various departments as ratified by Business Leadership Teams/Corporate Leadership

2010

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.

Laminated Fabrics

We set up the Laminated Fabrics Business in 2010 with the commencement of our plant at Kashipur, India. The business delivers quality solutions to the printing, advertising & signage industry.

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Annexure - I

Performance Evaluation of Executive Directors

Name of Director :

Type of Directorship : Executive Director

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

Please rate each criteria on the scale of 1 (Poor) - 5 (Excellent)

	(1 – Poor) (2-Fair)	(5-Excellent)

S. No.	Particulars/Role/Attribute	Rating (1,2, 3,4,5)
1.	Attendance and participation in meetings of the Board of Directors and of the	Board
	Committees
2.	Advises Board on implementation of good corporate governance practices

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

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

Annexure - II

Performance Evaluation of Independent Directors

Name of Director :

Type of Directorship : Independent Director

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

Please rate each criteria on the scale of 1 (Poor) - 5 (Excellent)

	(1 – Poor) (2-Fair) (3-Good) (4-Very Good)	(5-Excellent)

S. No.	Particulars/Role/Attribute	Rating (1,2, 3,4,5)
1.	Attendance and participation in meetings of the Board of Directors and of the Board
	Committees
2.	Independent Directors have sufcient knowledge of Company strategy and objective
	and can monitor performance.
3.	Advises on implementation of good corporate governance practices.
	Whether knowledge and experience of the Independent
4.	Directors have been adequately and productively used for the functioning of Board.
5.	Independent Directors make eforts for professional development to enable better fulflment of their responsibilities.

Independent in judgement and actions
Exercised his/her duties with integrity, due care, skill and diligence
Acted in good faith and in the best interests of the Company towards promotion of interest of the stakeholders
Conduct in compliance with the policies of the Company viz. Code of Conduct, Code of Conduct for Prevention of Insider Trading, Whistle blower Policy etc.)
Fulfilment of the independence criteria as specified in Listing Regulations and other applicable laws and their independence from the management
Overall Performance (Remarks)

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

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Annexure - III

Annexure - IV

Performance Evaluation of the Board

Performance Evaluation of Non-executive & Non-Independent Directors

Name of Director :

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

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

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

Please rate each criteria on the scale of 1 (Poor) - 5 (Excellent)

	(1 – Poor)	(2-Fair)	(3-Good)	(4-Very Good)	(5-Excellent)

	S. No. Particulars/Role/Attribute				Rating (1,2, 3,4,5)

Composition and Quality

Please rate each criteria on the scale of 1 (poor) - 5 (Excellent)

(1 – Poor)	(2-Fair)	(3-Good)	(4-Very Good)	(5-Excellent)

S. No. Particulars/Role/Attribute				Rating (1,2, 3,4,5)

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 integrity, due 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 : …………………………..

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.

Oversight of Financial Reporting process including Internal Controls and Audit Functions

The Board considers the quality and appropriateness of financial accounting and reporting including transparency of disclosures.
The Board appropriately considers the suggestions from the Audit Committee, internal audit reports, management's responses, risk framework and steps toward improvement.
The Board through Audit Committee reviews material related party transactions. Ethics and Compliance
The Board is fully aware of the Company's code of conduct and has a well‐developed sense of ethics.

Monitoring Activities

An annual performance evaluation of the Board is conducted and any matters that require follow‐up are resolved and presented to the Board.
Overall Performance (Remarks)

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

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Annexure - V

Performance Evaluation of the Committees

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

Please rate each criteria on the scale of 1 (Poor) - 5 (Excellent)

(1 – Poor) (2-Fair) S. No. Particulars/Role/Attribute	(3-Good)	(4-Very Good)	(5-Excellent) Rating (1,2, 3,4,5)

The Committee(s) composition is/ are appropriate
The Committee(s) has/ have a defined agenda.
Members of the Committee(s) receive agenda in sufficient time which permits them to effectively consider issues to be dealt with.
The mandate of the Board to the Committee(s) of all matters are clear and adequate.

Annexure - VI

Performance Evaluation Of Chairman

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

Please rate each criteria on the scale of 1 (Poor) - 5 (Excellent)

S. No. 1.	(1 – Poor) (2-Fair) (3-Good) Particulars/Role/Attribute Chairman demonstrates efective leadership qualities and skills	(4-Very Good)	(5-Excellent) Rating (1,2, 3,4,5)

Implementation of observations/recommendations of Board Members
Effective and timely resolution of grievances of Board Members
Ability to bring convergence in case of divergent views and conflict of interest situation tabled at Board meetings
Overall Performance (Remarks)
The Committee(s) allocate(s) the right amount of time for its discussions.
The minutes of the Committee(s) are placed before the Board on a regular basis.
Appropriate internal and external support or resources are available to the Committee(s).
Overall Performance (Remarks)

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

2011

Coated Fabrics, Gummidipoondi Plant

The Gummidipoondi plant is equipped with world class facilities for

manufacturing yarn, weaving and coating and is fully integrated for manufacture of coated fabrics with PVC formulation.

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

Date: May 07, 2024 Place: Gurugram

2012

For and on Behalf of the Board

Ashish Bharat Ram

Chairman & Managing Director (DIN – 00671567)

Commissioned Chemical Complex at Dahej, Gujarat

Spread over an area of ~293 acres, SRF’s Dahej facility in Gujarat is the company’s biggest manufacturing facility to-date. It was set up in 2012 with state-of-the-art equipment and best of the brains in the industry to serve the specific needs of its customers.

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Annexure II to Board’s Report

Annual Report on CSR Projects as on March 31, 2024

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 2023-24: -
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 sport s, 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

These projects have provided great impact on the society and in accordance with the Companies (Corporate Social Responsibility Policy) Rules, 2014, Aspire Impact has conducted impact assessments for the said projects.

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

5. (a) Average net profit of the company as per sub-section (5) of section 135. INR 2,051.52 Lakhs

(b) Two percent of average net profit of the company as per sub-section (5) of section 135. INR 4,104.00 Lakhs
(c) Surplus arising out of the CSR Projects or programmes or activities of the previous financial years.
- NA
(d) Amount required to be set-off for the financial year, if any. INR 3 Lakhs
(e) Total CSR obligation for the financial year [(b)+(c)-(d)].
- INR 4,101.00 Lakhs

6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project). INR 3,118.88 Lakhs

(b) Amount spent in Administrative Overheads. INR 10.59 Lakhs

2. Composition of CSR Committee:

Sl. No.	Name of Director	Designation / Nature of Directorship	Number of meetings of CSR Committee held during the year	Number of meetings of CSR Committee attended during the year
1.	Mr. Kartik Bharat Ram	Chairman	2	2
2.	Mr. Lakshman	Member	2	2
	Lakshminarayan*
3.	Mr. YashGupta	Member	2	2

*Mr. L Lakshman ceased to be Independent Director and member of CSR Committee upon completion of second consecutive term with effect from close of business hours on March 31, 2024. The Committee was reconstituted by inducting Ms. Ira Gupta as members of the Committee wef April 1, 2024

3. Provide the web-link(s) 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/

(c) Amount spent on Impact Assessment, if applicable. INR 21.00 Lakhs
(d) Total amount spent for the Financial Year [(a)+(b)+(c)].
INR 3,150.47 Lakhs

(e) CSR amount spent or unspent for the Financial Year:

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

Total Amount Amount Unspent (in ) Spent for the Total Amount transferred to Amount transferred to any fund Financial Year. Unspent CSR Account as per specified under Schedule VII as per (in ) sub- section (6) of section 135. second proviso to sub-section (5) of
section 135.
Amount. Date of Name of Amount. Date of
transfer. the Fund transfer.
INR 3150.47 Lakhs INR 950.78 Lakhs 30/04/2024 XX XX XX
----- End of picture text -----

4. Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects carried out in pursuance of sub-rule (3) of rule 8, if applicable.

During FY 2021-22, SRF contributed in the following projects:

Sewage Water Treatment Plan at Delhi Golf Club- ` 4.50 Crores
Rural Education Program, Nuh, Haryana- ` 1.96 Crores
Rural Education Program, Madhya Pradesh, and Gujarat- ` 6.24 Crores

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(b) Excess amount for set-off, if any:

Sl. No.	Particular	Amount (in`)
(1)	(2)	(3)
(i)	Two percent of average net proft of the company as per sub-section (5) of	4,104 Lakhs
	section 135
(ii)	Total amount spent for the Financial Year	3,150.47 Lakhs
(iii)	Excess amount spent for the Financial Year [(ii)-(i)]	NA
(iv)	Surplus arising out of the CSR projects or programmes or activities of the	NA
	previous Financial Years, if any
(v)	Amount available for set of in succeedingFinancial Years[(iii)-(iv)]	NA

7. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years:

1
2
3
4
5 6
7
8

Sl.
No.
Preceding
Financial
Year(s)
Amount
transferred
to Unspent
CSR
Account
under sub-
section (6)
of section
135(in**)** **Balance** **Amount in** **Unspent** **CSR** **Account** **under sub-** **section (6)** **of section** **135(in**)
Amount
Spent
in the
Financial
Year
(in**)**| **Amount transferred** **to a Fund as specifed** **under Schedule VII** **as per second proviso** **to sub- section (5) of** **section 135, if any** **Amount** **remaining** **to be** **spent in** **succeeding** **Financial** **Years** **(in**)
Defcie
ncy, if
any
Amount
(in`)
Date of
Transfer

1
FY-20-21
-
-
-
2
FY-21-22
-
-
-
3
FY-22-23
-
-
- 37.00 Lakhs 28 Sept 2021
0.00
-
-
-
-
-
-
-
-
-

8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year:

Yes No

If Yes, enter the number of Capital assets created/ acquired 03

Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the Financial Year:

Sl. No.	Short particulars of the property or asset(s) [including complete address and location of the property]	Pincode of the property or asset(s)	Date of creation	Amount of CSR amount spent	Details of entity/ Authority/ benefciary of the registered owner	Details of entity/ Authority/ benefciary of the registered owner	Details of entity/ Authority/ benefciary of the registered owner
(1)	(2)	(3)	(4)	(5)		(6)
					CSR Registration Number, if applicable	Name	Registered address
1.	Land admeasuring	600019	21/03/2024	INR	CSR00000733	SRF	SRF
	1 acre at					Foundation	Foundation,
	Manali Village,			763.01			D-3 Street,
	Thiruvotriyur Taluk			Lakhs			Vasant Vihar,
	Thiruvallur District						New Delhi
	Manali, Tamil Nadu						110057
2.	Land admeasuring	392130	13/02/2024	INR	CSR00000733	SRF	SRF
	of 22153 Sq. mt					Foundation	Foundation,
	at Holding No.			423.22			D-3 Street,
	109 Eksal Village			Lakhs			Vasant Vihar,
	Bharuch, Gujarat						New Delhi
							110057
3.	SRF Vidyalaya	122001	31/03/2024	INR	CSR00000733	SRF	SRF
	Gurgaon, 318, Block Q, South			138.00		Foundation	Foundation, D-3 Street,
	City I, Sector 40,			Lakhs			Vasant Vihar,
	Gurugram, Haryana						New Delhi
	122001						110057

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

Date: May 07, 2024 Place: Gurugram

Sd/- Ashish Bharat Ram Chairman & Managing Director DIN: 00671567

Sd/- Kartik Bharat Ram Joint Managing Director & Chairman CSR Committee DIN: 00008557

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Annexure III to Board’s Report

ESPS Disclosures

Details related to Trust

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

(i) General information on all schemes:

Details related to ESPS

(i) Details of allotments made under Part-B of SRF ESPS 2018 of SRF Limited (SRF) Employees Long Term Share Based Incentive Plan – 2018 during the financial year 2023-24: NIL
(a) Date of shareholders’ approval: NA
(b) Number of shares issued: NA
(c) The price at which such shares are issued: NA
(d) Lock-in period: NA
(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 2023-24 :

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

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 shares,	`6,00,000\|`19,50,000	`38,000
	if scheme is implemented directly by the company
	Loan repaid by the Trust during the year from exercise	NA	NA	NA
	price received

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S. Particulars Details
No
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1	Name of the Trust	SRF Employees Welfare Trust
2	Details of the Trustee(s)	SRF Employees Beneft Scheme LLP
3	Amount of loan disbursed by company / any 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
6	security or guarantee Anyother contribution made to the Trust duringtheyear	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	NIL
Sold during the year	NIL
Transferred to the employee during the year	NIL
Held at the end of theyear	NIL

	For and on Behalf of the Board
	Ashish Bharat Ram
Date: May 07, 2024	Chairman & Managing Director
Place: Gurugram	(DIN – 00671567)

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

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Annexure IV to 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 6th May 2024
We have examined the compliance of conditions of Corporate Governance by SRF Limited (“the Company”), for the year ended 31 March 2024, 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.

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 above-mentioned 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.

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

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.

Place: Gurugram Date: 7th May 2024

Kaushal Kishore

Partner Membership Number: 090075 UDIN: 24090075BKGTYP7841

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 31 March 2024.
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.

2013

Packaging Films Business Facility in Thailand

We set up a greenfield facility to manufacture Packaging Films in Thailand to cater to our customers overseas.

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Annexure V to Board’s Report

SECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED 31st MARCH, 2024

[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]

compliances of laws, rules and regulations and happening of events etc.

To,

The Members

SRF Limited

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.

(CIN: L18101DL1970PLC005197) The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, 2nd 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 31st March, 2024. Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.

f) The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the management has conducted the affairs of the Company.
compliances and expressing our opinion thereon. Based on our verification of the Company’s books, papers, minute books, forms and returns filed and
We report that- other records maintained by the Company and also a) Maintenance of secretarial records are the the information provided by the Company, its officers, responsibility of the management of the agents and authorized representatives during the Company. Our responsibility is to express an conduct of Secretarial Audit, we hereby report that in opinion on these secretarial records based on our opinion, the Company has, during the audit period our audit and we adhered to best professional covering the financial year ended on 31st March, 2024 standards and practices as could be possible (“Audit Period”) complied with the statutory provisions while carrying out audit. listed hereunder and also that the Company has proper Board processes and compliance mechanism
b) We have followed the audit practices and in place to the extent, in the manner and subject to processes as were appropriate to obtain the reporting made hereinafter: reasonable assurance about the correctness of the contents of the secretarial records. We have examined the books, papers, minute books, The verification was done on test basis to ensure forms and returns filed and other records maintained that correct facts are reflected in secretarial by the Company for the financial year ended records. We believe that the processes and 31st March, 2024 according to the provisions of: practices, we followed, provide a reasonable basis for our opinion. (i) The Companies Act, 2013 (“the Act”) and the
(i) The Companies Act, 2013 (“the Act”) and the rules made thereunder;
c) We have not verified the correctness and appropriateness of the financial statements of the Company.
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
d) Wherever required, we have obtained the (iii) The Depositories Act, 1996 and the Regulations Management representation about the 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; {Not applicable during the audit period}
(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;
(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 and Guidelines, to the extent applicable.

(vi) The Company is engaged in manufacturing of Chemicals & Other Businesses plants located at Alwar, Rajasthan; Bharuch, Gujarat; Thiruvallur, Tamil Nadu and Kashipur, Uttarakhand; Technical Textiles plants at Thiruvallur, Tamil Nadu; Manali, Tamil Nadu; Pudukottai, Tamil Nadu and Bhind, Madhya Pradesh; and Packaging Films plants at Kashipur, Uttarakhand and Pithampur, Madhya Pradesh. As informed by the management, following are some of the laws specifically applicable to the Company: -
Narcotics Drugs and Psychotropic substance Act, 1985;
Legal Metrology Act, 2009;
SEZ Act, 2005 and SEZ Rules, 2006; &
The Chemical Weapons Convention Act, 2000.

On the basis of management representation, recording in the minutes of Board of Directors and our check on test basis, we are on the view that the Company has ensured the compliance of laws specifically applicable on it.

We further report that the Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors including woman director. The changes in the composition of the Board of Directors that took place during the audit period were carried out in compliance with the provisions of the Act.

Adequate notice was given to all directors to schedule the Board Meetings, agenda and

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42, 71, 179 and other applicable provisions of the Companies Act, 2013 including rules made thereunder;

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.

Re-appointment of M/s BSR & Co. LLP, Chartered Accountants, as Statutory Auditors of the Company for their 2nd term of 5 (Five) consecutive years who shall hold office from the conclusion of 52nd AGM till the conclusion of 57th AGM in terms of Sections 139, 142 and other applicable provisions of the Companies Act, 2013 including rules made thereunder; &

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.

Alteration of Article of Association by inserting new Article 68A in the Articles of Association in terms of Sections 5, 14(1), 15 and other applicable provisions of the Companies Act, 2013 including rules made thereunder.

We further report that during the audit period, the members of the Company at their 52nd Annual General Meeting (AGM) held on June 30, 2023, accorded their approval for the followings:

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

Offer or invitation to subscribe to Redeemable Non-Convertible Debentures of the Company, in one or more series/ Kapil Dev Taneja tranches, aggregating upto ` 1500 Crores Partner (Rupees Fifteen Hundred Crores only), on New Delhi CP No.: 22944 / Mem. No. F4019 private placement basis, in terms of Sections May 07, 2024 UDIN: F004019F000323943

Kapil Dev Taneja

2013

Packaging Films Business Facility in South Africa

SRF forayed into the manufacture of BOPP (Bi-axially Oriented Polypropylene) films by setting up a facility in South Africa.

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Annexure VI to 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 2023-24 and ratio of the remuneration of each Director to the median remuneration of the employees of the Company for the financial year 2023-24 are as under:

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S. Name of Director/KMP and Designation % Increase in Ratio of remuneration
No. Remuneration of each Director to
in the Financial median remuneration
Year 2023-24 of employees
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1	Ashish Bharat Ram	-6%	351.31
	Chairman and Managing Director
2	Kartik Bharat Ram	-6%	354.41
	Joint Managing Director
3	Pramod G. Gujarathi	11%	4.48
	Director (Safety and Environment)
4	Tejpreet S. Chopra*	5%	3.82
	Non-Executive Director
5	Lakshman Lakshminarayan*	1%	3.82
	Non-Executive Director
6	Vellayan Subbiah	4%	3.44
	Non-Executive Director
7	Bharti Gupta Ramola	-2%	3.68
	Non-Executive Director
8	Puneet Dalmia	-1%	3.37
	Non-Executive Director
9	Yash Gupta	12%	4.00
	Non-Executive Director
10	Raj Kumar Jain	3%	3.65
	Non-Executive Director
11	Prashant Mehra	20%	Not Applicable
	President & CEO
	(Packaging Films Business, CF & LF)
12	Prashant Yadav	21%	Not Applicable
	President & CEO
	(Fluorochemicals Business and Technical Textile
	Business)
13	Anurag Jain	20%	Not Applicable
	President & CEO
	(Specialty Chemicals Business and CTG)
14	Rahul Jain	18%	Not Applicable
	President & CFO
15	Rajat Lakhanpal	13%	Not Applicable
	Senior Vice President - Corporate Compliance
	and CompanySecretary

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(ii) The median remuneration of employees of the Company as on March 31, 2024 was 0.057 Crores as compared to 0.054 Crores as on March 31, 2023. The increase in median remuneration was 6.41% as compared to 2022-23.
(iii) There were 8116 permanent employees on the rolls of the Company as on March 31, 2024.
(iv) Average percentage increase already made in the salaries of employees other than the managerial personnel in the last financial year i.e. 2023-24 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	Category Average Increase
Employees’ remuneration (other than Directors)	13.55%
Managerial remuneration(Directors)	-6.00%

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

		For and on Behalf of the Board
		Ashish Bharat Ram
Date:	7th May 2024	Chairman and Managing Director
Place:	Gurugram	(DIN – 00671567)

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 of March 2024 and March 2023.

*Ceased to Independent Directors of the Company w.e.f closing of business hours of March 31, 2024, due to completion of second term as Independent Director.

2015

Acquired Global DuPont Dymel[®] HFA 134a/P

We acquired the Dymel® HFA 134a/P regulated medical pharmaceutical propellant brand from DuPont™ in January 2015 along with the technology to convert our technical grade of F 134a to the propellant grade. This made us one of the few manufacturers of Pharma grade HFA 134a/P in the world, which is used in Metered Dose Inhalers as a propellant.

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Annexure VII to Board’s Report

Conservation of Energy – Measures taken:

3. FCB Bhiwadi

Saved 0.36 lac units of electricity by developing a process to optimizing the operation of Recirculation fan in AHF plant.

1. SCB Bhiwadi

Saving of ~57.8 MWH (~ ` 5.67 Lacs/ annum) by centralized brine network
Saved 0.87 lac units of electricity by optimization of pump speeds through VFD in CMS plant.
Saving of ~55.26 MWH (~ ` 5.42 Lakh/ annum) by optimizing the chiller operation
Saving of ~100 MT of steam (~ ` 2.76 Lakh/ annum) by changing the steam trap design
Saved 1.15 lac units of electricity by installing high grade E-glass epoxy fan blades in CPP cooling tower.
Saving of 117.6 MWH (~ ` 11.52 Lakh) by optimizing cooling towers
- Saved 0.20 lac units of electricity by installing high efficiency motors in place of old conventional efficiency class motors in F22 Plant.
Saving of 9.63 MWH (~ ` 0.94 Lakh) by installation of energy efficient lights

2. SCB Dahej

Saved 7184 units of electricity by replacing old conventional luminaires with new LED luminaires.
Saving of 624 MWH ( ` 56 Lacs/annum) by improving power factor
Saving of 123 MWH ( ` 11 lacs/annum) by motor replacement

4. FCB Dahej

  - Saved 13.88 lac units of electricity by installing energy efficient fans in cooling towers.

Savings of 65 MWH ( ` 6 Lacs/annum) due to automation in the plant
Saved 3.52 lac units of electricity by Brine Chiller performance improvement by replacing efficient cooling medium to in AHF plants.
Savings of 173 MWH ( ` 15 Lacs/annum) by optimizing UPS
Saving of 503 MWH ( ` 45 Lacs/annum) by improving utilization of chilled water systems
Saved 2.33 lac units of electricity by interconnecting and reduced nitrogen booster Compressors of TCE-PCE, CMS-1 and CMS-2 plants.
Saving of 107 MWH ( ` 9 lacs/annum) by optimizing brine system
Savings of 202 MWH ( ` 18.5 Lacs/annum) by improving pump utilization
Saved 0.80 lac units of electricity through installing LDR switch/timer in plant lighting and replacing conventional light with LED light.
Savings of 584 MWH ( ` 52 Lacs/annum) by optimization of chilled water power
Saved 3.66 lac units of electricity by installing VFD in process gas compressor and drinking RO transfer pumps.
Savings of 634 MWH ( ` 57 Lacs/annum) by redesigning chilled water network

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Saved 5.05 lac units of electricity by use of • Saving of 87500 KWH through installation with energy efficient motors. of pressure regulator on compressed air cleaning point and reducing the pressure
5. Packaging Film Business, Indore (SEZ) from 8.0 bar to 1.5bar and reduced the • Saved 255500 KWH in Chilled water compressed air consumption.
Saved 255500 KWH in Chilled water system through :
Saving of 33600 KWH by replacing the vacuum pump in one of the metallizers from 11Kw to 5Kw
a. Close loop Cooling tower Water taken in Line for Line-2 Chill roll cooling to reduce chilling load of Chillers.
```
 - Packaging Films Business, Indore (DTA-2)
```
- b. V provided in Chilled water pump for Frequency optimization.
- Frequency optimization. • Saving of 69374 KWH in Water Bath & Chill Roll CLCT (close loop cooling tower),
- c. Variable frequency Drive provided cooling water set point increased from 23 in Cooling water pump for Degree centigrade to 32 Degree centigrade Frequency optimization. by optimizing the process.
- d. Close Loop Cooling Tower uses • Saving of 212311 KWH by increasing chiller optimized in MDO rolls area set point from 11 degree centigrade to 13 degrees centigrade. This could be done by
- Saved 608333 KWH through Line-2 TDO increasing EREMA palatizing cooling pipe Blowers frequency optimization length and providing partition door between Metallizer area (kept cool) and main line
- Saved 45625 KWH from EREMA Chips process hall (ambient Temperature) conveying system 7. Coated Fabrics Business
- Saved 31938 KWH by increasing steam • Saving of 13.22 lacs units by production pressure from 3.2 bar to 3.9 bar to improve increase from 101.34 lacs (Year 22-23) to performance of vapour absorption machine. 146.92 lacs (Year 23-24), thereby achieving power savings from 0.70 Kwh / sqm
- Saved 18310 KWH by providing 11 KW to 0.61 Kwh/sqm pump in place of 30 KW in RESIN Cutter Close Loop Cooling Tower. • Saving of 426 MT of Husk by production increased from 101.34 lacs (Year 22-23)
- Saved 16790 KWH by installing insulation to 146.92 lacs (Year 23-24), thereby to diffusion pumps in both Line 1 & achieving fuel savings from 0.243 Kg / sqm Line 2 Metallizers to 0.214 Kg/sqm
Saved 608333 KWH through Line-2 TDO Blowers frequency optimization
Saved 45625 KWH from EREMA Chips conveying system
Saved 31938 KWH by increasing steam pressure from 3.2 bar to 3.9 bar to improve performance of vapour absorption machine.
Saved 18310 KWH by providing 11 KW pump in place of 30 KW in RESIN Cutter Close Loop Cooling Tower.
Saved 16790 KWH by installing insulation to diffusion pumps in both Line 1 & Line 2 Metallizers

6. Packaging Films Business, Indore (DTA-1)

8. Technical Textile Business – Gwalior

Saving of 138000 KWH by isolation of one Closed Loop Cooling Tower of system 713 and system successfully run for 8 months with one Closed loop cooling tower.
Savings 4320 KWH by by installation of energy efficient pumps (2 nos.)
Savings 62016 KWH by by installation of energy efficient pumps in cooling water pump
Saving of 40000 KWH through one BOPET hot oil pump stop with no effect on film quality
Savings 25920 KWH by replacing Chilled water coils of Take up air washer plant-2
Savings 37148 KWH by reducing power • Saving of 350 KWH by providing timer consumption in supply air fans take up air control for street lights washer-1&2 and inverter AHU of spinning plant-2 by providing energy efficient • Saving of 3500 KWH by installing idle off for mono block fans. Optimax Loom panel AC
• Savings 68417 KWH by installation of Capital Investment on Energy Conservation energy efficient chillers Equipment: SCB Bhiwadi:
• Savings 59602 KWH by reduction of • Installation cost of steam trap in plant = 1.84 Lakh Utilities (Air/N2) consumption through CIP in process area • Installation of indoor unit with brine cooler = 0.5 Lakh
• Savings 611000 KWH through other activities • Installation of VFDs in cooling tower
9. Technical Textile Business – Manali fans = ` 2.0 Lakh
• Savings of 692585 KWH by installation of EC fan at AHU-1A, AHU-3B, AHU-4, •
AHU-3A air washer Installation of Energy efficient lights = 0.26 Lakh
• Savings of 521884 KWH by installation of SCB Dahej: 660 TR Energy efficienct chiller • Installation of timer automation in plant: 1.2 Lacs • Installation of Smart Panel: 16 Lacs
• Savings of 33840 KWH by installation of energy efficient fan at Mcquay cooling tower 3rd cell • Installation of 2.2Kw Motor: ` 1 Lacs
• Savings of 231660 KWH by upgradation of PFB SEZ: N2 CT pumps (2 nos.) • Active damping system installed with new contact roll (Dia 435 mm) at Line-2 Winder. System taken
• Savings of 113033 KWH by installation of from Original Equipment Manufacturer-Kampf. direct evaporative cooling system in AHU-3B to reduce contact roll vibration and improve jumbo winding quality : ` 120 lacs
10. Technical Textile Business – Gummidipoondi • Development and implementation of Artificial
• Savings of 159810 KWH by installation intelligence analytics solution for process of AHUs EC fans consistency of Line-2 : ` 15.68 lacs
• Savings of 256905 KWH by • Installation of High Rating Antistatic Bars at
installation of MSEC Primary Slitter-1 : ` 14 lacs
• Savings of 3792 KWH by installation of WTP • Slope evaporator installation in
Filter water pump VFD Metaliser-2 : ` 63.1 lacs
11. Technical Textile Business – Viralimalai PFB DTA-1:
• Saving of 1627 KWH by LED Lights installation and Lighting optimization • MAIN Long Life FILTER FOR BOPP LINE : ` 210 lacs
• Saving of 7992 KWH by installation of • SLOPE EVAPORATOR MODIFICATION AT timer control for air blower ON/OFF in METALLIZER-(MACHINE NO.-P/7350) : ` 74.8 lacs STP aeriation tank
Saving of 3500 KWH by installing idle off for Optimax Loom panel AC

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offerings but also bolstered efficiency while minimizing our environmental impact. The in-house Research and Development (R&D) team diligently works on creating novel and innovative products for the Pharma and Agrochemicals segments, aligning with the evolving needs of our valued customers. R&D efforts are focused on advanced intermediates, and sustainable technologies, the effort is to enhance product quality, reduce costs, and boost competitiveness.

Bopet Line UPGRADATION TO ACHIEVE MECHANICAL LINE SPEED OF 700 MPM AND PRODUCTION SPEED OF 640 MPM : ` 340 lacs

TTBM:

INSTALLATION OF ELECTRONICALLY COMMUTATED (EC) FAN IN TEXTILE ` 1.47 Crs.
ERECTION OF NEW RADICALIZED CATALYTIC OXIDATION PROCESS PLAN ` 1.40 Crs.
The company continues its focus on cutting-edge
TTBG: manufacturing technologies and systems to update • ENERGY EFFICIENT MOTOR FOR TO3 production processes and intensify efficiency. TWISTERS- 4 NOS ` 0.09 Crs. This encompasses the implementation of automation and digitization measures to streamline operations,
• PROCUREMENT OF ANEMOMETER FOR QUENCH coupled with investments in relevant equipment and AIR VELOCITY CHECKING ` 0.01 Crs. infrastructure, to sustain the trajectory of growth.
PROCUREMENT OF ENERGY EFFICIENT PUMPS Over the course of the year, investments were made FOR CHILLED WATER ` 0.40 Crs. in technologies that facilitated waste reduction, reduced energy consumption, and enhanced
• LED DISPLAY FOR BOARDROOM WITH MS sustainability of the products. The company observed TEAMS CONFERENCE FACILITY ` 0.04 Crs. demand contraction for its established products, however, the new products continued to show
• ENERGY EFFICIENT (EE MONO BLOCK) FANS growth. Also, the Business undertook cost reduction FOR AGING TAKE ` 0.41 Crs. initiatives for established products, to make them more competitive. This was supported by investment

The absorption of new technologies is targeted to ensure the product pipeline captures new opportunities and learnings from technology implemented so far and reduces the time to market for opportunities coming to the Business. Apart from making the Business sustainable, technology absorption also enables the Business to deliver long term value to the stakeholders. The Business remains committed to the journey of continuous technological innovation and advancement to meet the evolving needs of the customers and contribute to a sustainable future. This journey is also critical to ensure the company remains ahead on the technology curve to maintain its leadership position.

FCB:

In case of imported technology (imported during the last three years reckoned from the beginning of the financial year)-

(a) the details of technology imported - Technology imported for making TFE monomer and then PTFE polymer
(b) the year of import - November 2019 to June 2024 (in-between break for COVID)
(c) whether the technology been fully absorbed – Yes, fully absorbed

Foreign exchange earnings and outgo

		(`in Crores)
Particulars Foreign Exchange Earnings Foreign Exchange	Year ended March 31, 2023 6,035.65 3,487.15	Year ended March 31, 2024 4,845.64 2,712.75
outgo
Net Foreign Exchange	2,548.50	2,132.89
Earnings
For	and on Behalf	of the Board

Ashish Bharat Ram

Date: 7th May 2024 Chairman & Managing Director Place: Gurugram (DIN – 00671567)

PROCUREMENT OF CTS NITROGEN CTS BLOWER in superior technologies in both dedicated and FOR P-1 ` 0.03 Crs. flexible manufacturing facilities at its Bhiwadi and Dahej locations.

TTBT:

INSTALLATION OF THREE STAGE COOLING FOR TWISTING AHUS ` 1.51 Cr

TTBV:

IMPLEMENTATION OF LED DISPLAY ON SHOP FLOOR & POLYCOM SETUP ` 0.04 Crs.

Technology Absorption (FY2023-24)

In the highly innovative world of Specialty Chemicals, the Business continued its journey of discovering and implementing new technologies and processes that are critical to creating better future prospects for the Business. In the challenging year, utilizing technology and deploying it to overcome obstacles came as an imperative to offset factors affecting Business growth.

To seize these prospects, our Business strategically invested in technology absorption initiatives. These endeavors not only enhanced our product

Some of the areas where technology has been absorbed in this period are:
Process enhancements aimed at resource reduction, recycling, and reuse
Bringing cost-effectiveness in new products and lowering costs of existing products
Strengthening the value chain by backward integrating some critical RMs in-house
Capacity augmentation and debottlenecking some plants
Focus on automation to improve process robustness, cost and safety
Reducing waste generation and solvent usage as well as enhancing process safety

2016

Fluorochemicals Thailand Operations

With the aim of dominating the fastgrowing domestic market and

leveraging low cost for global play, the company set up a distribution network for refrigerants and chemicals in Thailand through SRF Industries (Thailand).

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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 FY24 and an outlook of the business performance in the coming years.

Tyre Cord Fabrics

Businesses

The NTCF market witnessed marginal growth during the year. Business increased the sales volumes of NTCF and Nylon Yarn in the domestic market with heightened focus on value-added Yarn portfolio.

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 hundred countries and classifies its businesses as Technical Textiles Business (TTB), Chemicals Business (CB), Packaging Films Business (PFB), and Other Businesses.

During FY24, the business also successfully commissioned the capacity expansion of Nylon Yarn manufacturing for captive consumption and external sales.

Belting Fabrics

In FY24, the Belting Fabrics (BF) segment did well with healthy demand coming from the core sectors of coal, steel, and cement. These sectors grew rapidly during the year on the back of increased spending on infrastructure projects by the Government of India.

Technical Textiles Business

During the year, the Technical Textiles Business (TTB) focussed on three important aspects, namely, expanding product portfolio, broadening customer base, and strengthening its market position in order to derisk from the flagship Nylon Tyre Cord Fabric (NTCF) from a long-term perspective. On the Business’ endeavours in the area of sustainability, a large portion of energy requirements were met through clean energy sources.

Having said that, the Belting Fabrics segment faced challenges due to cheap imports from China, leading to stress on the domestic margins. Several countermeasures were undertaken to tide over the challenges that included an increase in its high-end, value-added products (VAPs) offerings, thereby tapping into a wider customer base.

Polyester Industrial Yarn

We will now discuss the three segments under TTB individually -

During the year, the Polyester Industrial Yarn (PIY) performed well with strong demand from the

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FINANCIAL STATEMENTS
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The Industrial Chemicals segment also witnessed increased competition due to new capacity addition from few domestic players as a forward integration strategy. Despite capacity addition and subdued demand from the Agrochemical and Pharma industries, our market share increased. Moreover, the Business continues to increase its market share in the Dymel[®] / propellant segment in the domestic and international markets, entering new geographies and broadening its customer base.

Geotextiles, Seat Belts and Belting verticals. In H2 FY24, we witnessed a surge in demand for products manufactured by quality players, to which the business responded well.

The TTB also successfully commissioned PIY capacity expansion by the end of the year and the expanded capacity is expected to be fully utilised in FY25.

Outlook

On an overall basis, the TTB is expected to deliver moderately improved results over FY24 with an enhanced focus on fully utilising capacities, reducing costs, and enhancing the portfolio of high-end, VAPs in BF and PIY. While margins will continue to remain under pressure in FY25, the increased volumes are expected to support the performance.

On a positive note, the Business commissioned its PTFE plant during FY24. Approvals for various grades of the product are currently underway with major domestic and international customers. The Business also commissioned the F 32 plant, along with capacity expansion of the AHCl plant.

During FY24, both the sites reported safe and stable operations. With a number of operational excellence measures in place, several plants achieved the highest-ever production in FY24. The focus of the business will be to optimise raw material sourcing, cost saving initiatives, strengthening capabilities in new product portfolio with sustainability as the priority. Overall, the business performance was stable despite various tailwinds across segments.

Chemicals Business

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

Fluorochemicals

Refrigerants & Propellants and Industrial Chemicals FY24 was a tough year for the Fluorochemicals Business. At the beginning of the year, we witnessed a weak season in the domestic market. There was stress on refrigerants’ prices and volumes due to Chinese dumping in India and the international markets. In addition, the refrigerants segment saw an increase in competition from the additional capacities that were put into use in India and the Middle East. US continued to destock HFC inventory. Prices were softer; and so was the demand. Additionally, global uncertainties like the Red Sea crisis and the Israel war increased lead time and cost of freight adding to pressure on margins. However, commodity prices remained low and supported the margins. Overall, the Ref Gas business remained under pressure in the domestic and international markets.

Outlook

In FY25, the global and Indian economy is expected to perform better than FY24. In addition, the inflation rates are expected to come down. The Indian Air Conditioning industry is expected to witness growth, as a result, we expect to see an increase in the demand for refrigerants. US market is expected to remain subdued, however, the Middle East economy is expected to do well over FY24, thereby supporting demand. Pricing pressure on refrigerants is anticipated to go down.

utilised for existing products. Apart from commissioning new facilities, the team worked on cost structures, ensuring we run our plants most efficiently. In FY24, both the Bhiwadi and Dahej sites improved operational efficiency, managing an expanded portfolio of innovative products. We enhanced our capabilities and cultivated expertise in novel chemistries. Our inroads in pharma are showing positive traction. In order to seize future market opportunities, we commissioned nine dedicated facilities at the Dahej site in FY24.

Industrial Chemicals segment is expected to remain stable with an improvement in demand from the Agrochemicals and Pharma industries.

In our Fluoropolymers journey, while we have done good work on bulk, we are now moving into the new grades (free flow and fine cuts) and ramping those up. This is a learning journey and the knowledge that we have attained will help us streamline our new fluoropolymer projects at a faster pace.

Overall, the business is expected to do better over FY24 with maximum utilisation of capacities and commissioning of new specialty fluoropolymers plants.

During the year, the SCB secured the Board’s approval to build an intermediate plant to cater to a new product, which is currently under implementation.

Specialty Chemicals Business

In addition, the Business took several initiatives towards decarbonisation, including energy optimisation and carbon footprint reduction. The Business continues to make investments toward safer, cleaner, and leaner operations, and further strengthen its sustainability initiatives.

FY24 has been a challenging year for the Specialty Chemicals Business (SCB). The Business faced headwinds due to excess inventory in the market, forcing agrochemicals customers to initiate inventory rationalisation measures. In addition, a lot of capacity has come up in China, which makes the landscape more competitive. However, the Business has taken several steps to combat this onslaught and emerge stronger.

Outlook

The SCB will continue to actively work on Agrochemicals and Pharmaceuticals segments, collaborating with global innovators to drive process development, commercialisation, and the production of complex, innovative molecules. The Business positions the customers at the core of its strategic

The Business actively worked on our customers’ new products and their developmental projects, while ensuring the production capacities were optimally

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The dedicated R&D facilities, developmental labs, and pilot plant facilities, having many scientists and engineers are working together to achieve innovation and technology leadership at SRF. SRF continues to invest in R&D to create propositions for the future and Capital and Revenue expenditures of ` 121 crore was spent during FY24.

Businesses, efforts will be made to enhance CTG’s capabilities and support systems. This has enabled both the Businesses to have continuous development of innovative products in their pipeline of future products and continue their journey of excellence going forward.

intent and aligns itself with their business initiatives. As we invest in emerging technologies, operational excellence remains our pillar of strength, propelling us towards sustainable growth and market leadership. Our journey is driven by our core values, purpose, innovation, and firm dedication to excellence.

Chemicals Technology Group

The Chemicals Technology Group (CTG) remains steadfast in its mission to introduce innovative technologies and cost-effective routes for existing and next-generation products in the Specialty Chemicals and Fluorochemicals Businesses.

In a challenging year for both the Businesses, CTG continued to boost its capabilities and added new technologies and processes, to support the Businesses. CTG delivered very well where technology presented itself as a challenge, when it was newly introduced and where the scale-ups and improvements were desired by both the Businesses, to improve the output and lower the costs. The Businesses owe a part of their success in terms of launching a challenging line of new products and timely scale-ups to CTG. The cornerstone of these breakthroughs was achieved by our talented team of researchers and scientists. CTG is expected to continue enhancing the capabilities and act as a bedrock of support systems to the Businesses, amid rising complexity and reduce time-to-market requirements.

R&D worked on over 44 molecules and many products were successfully taken up for process development. More than 34 molecules were taken up for the scale-up studies and 70% were commercially produced in multipurpose and dedicated plants.

In FY24, CTG filed thirty-seven patents, taking the total count to four hundred and forty-three patents filed so far. Seventeen patents were granted in FY24, taking the total count of patents granted to the company to one hundred and forty-nine.

Packaging Films Business

FY24 was a challenging year for the Packaging Films Business (PFB). Market conditions were extremely difficult, and margins continued to be under pressure for both BOPET and BOPP Films.

For over two decades, CTG has enabled the Business growth in Fluorinated molecules and now it continues to engage in introducing new chemistries, platforms, and the development of complex, challenging, and innovative products to address the needs of our customers and the market. CTG is at the forefront of continuous process improvements and developing more efficient processes by utilising novel chemistries and scaling them up for successful commercialisation. In view of its crucial support to the growth of the

Overall, the Business achieved its highest-ever packed production. Intensive cost rationalisation and enhancing business profitability by strengthening VAPs portfolio have been major thrust areas to survive the industry onslaught. Cohesive team effort and complete goal-alignment helped SRF perform better than its competitors. The Business successfully commercialised many VAPs in BOPET and BOPP during the year.

India and leverage our capabilities fully to further enhance our VAPs portfolio. Ramping up Aluminium Foil Business will be an important focus area for the Business in the coming Financial Year (FY). We will continue our work on various sustainability initiatives driven by the ‘3R’ approach - Reduce, Reuse and Recycle. During the year, we plan to complete the registration process in compliance with the new Plastic Waste Management rule, secure ISCC certification for other manufacturing sites and strengthen our portfolio of sustainable products.

Energy prices have stabilised in Hungary, which should give us some respite and we expect the performance there to improve. However, till the overall BOPET cycle changes, things will remain under pressure.

In January 2024, Business commissioned its Aluminium Foil plant at Jetapur, Madhya Pradesh. Work on the upcoming Capacitor Grade BOPP Film project in India is also progressing as per schedule.

The Business is driven by its philosophy of – Easy To Do Business With (ETDBW) and the team remains focussed on serving customers well every day. Sustainability continues to be amongst the top priorities for the Business. Reaffirming its commitment towards sustainability, SRF successfully secured ISCC+ certification for its manufacturing sites at SEZ and DTA in Madhya Pradesh, India. Further, we are making steady progress in completing the registration process to comply with new Plastic Waste Management rules.

Other Businesses

Coated and Laminated Fabrics Businesses

FY24 was a good year for the Coated Fabrics Business. Domestic demand, particularly for VAPs remained strong, which helped the Business achieve its highest-ever domestic sales. Business made the highest-ever EBITDA during the year. In response to the growing demand, SRF expanded its textile capacity by adding four new looms during the year. We continued to maintain our 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 cost increases could not be passed on completely to the customers due to excess supply.

Outlook

Margins in both BOPET and BOPP are likely to remain under pressure as new lines have been added and some more lines are in the pipeline. In FY25, SRF’s primary focus will be on enhancing our profitability by further strengthening VAPs, improving capacity utilisation and cost rationalisation. We will commission our new Inline Coating machines in Thailand and

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For SRF, not just ensuring a diverse workforce but also being inclusive in its true sense was the guiding light while taking decisions pertaining to people. The desire to build a workplace that is safe and free from all forms of biases, pushed us further and further.

Introduction of new benefits and more progressive policies around subsidising health and wellness of our people was warmly welcomed by our people. Being proactive in our approach towards our employees’ needs helped us earn the reputation of a trusted employer of choice and enabled us to emerge as a strong brand amongst the talent pool. We now have a well-articulated Employee Value Proposition that appeals to all generational personas.

Outlook

In FY25, we expect the demand to remain strong for both the Coated Fabrics and Laminated Fabrics Businesses. In Coated Fabrics, the focus will be to enhance capacity, strengthen our VAPs portfolio and increase sales during the year. In Laminated Fabrics, we will be commissioning our new Hot Lamination Machine, which will replace the existing Cold Lamination machine to help us cater our customers with a better product offering. The Business will also continue to work on various cost reduction initiatives for both the businesses.

Changing winds necessitated personalisation of HR offerings leading to our new-age learning solutions being completely customised. The year ahead may witness a similar stance in several other areas and may also see a lot more communication around this. While the HR systems are already highly automated, the existing automations may undergo further personalisation.

Human Resources

As the organisation commemorates 50 years of manufacturing excellence, we are filled with pride, realising that we have come a long way from our humble beginning. As we celebrate this milestone and reflect on our journey so far, the one overpowering emotion that takes centre-stage is gratitude. Gratitude for every single person who has ever been a part of this journey, whether as a customer, vendor, adviser, auditor, or an employee. Amongst all the gratefulness, the biggest debt is towards our employees who have tirelessly worked towards building an extraordinary organisation.

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The Human Resources function has forever focussed on building an exceptional organsation that is full of promises of an even brighter future. The key is knowing that it is our people that form the organisation, and it is the remarkable efforts of these people that make the organisation ‘Great’. Hiring the right people, providing them a conducive environment that supports them in unleashing their potential, and developing them to achieve even greater heights remained at the forefront for HR.

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As we migrate to the cloud, we will be in a better position to test and deploy evolving technologies like Generative AI which is in the list of technologies we are tracking.

In the last five decades, the organisation has seen tremendous growth, and the overall experience of each individual is now governed by the one-toone relationships that employees enjoy at the workplace. Appreciating and acknowledging that it is the manager who plays a major role in an individual’s happiness, a keen focus on developing and enhancing this eco-system remained an integral part of the HR agenda.

most aspects of Information Security covering Identity and Access management; Privileged User Access and monitoring; Network segmentation and micro segmentation; Perimeter security; Backup management; Vulnerability assessment and patching; Data Privacy & Security, API management. We are closely monitoring the evolving threats and taking necessary steps to prevent, detect, isolate, mitigate any incident.

After finishing all the application modernisation projects, we have now started our project to migrate most of our applications to a hybrid cloud setup. This is part of our strategic initiative to provide scalability for anticipated growth, build resilience while utilising additional services on the cloud like data warehousing, data lakes, AI/ML for digital transformation. After a thorough assessment, we have tied up with two cloud providers where we are setting up our datacentres and migrating applications best suited for the specific environment. The first round of testing is underway and the project is expected to be completed in H1.

As we continue our journey of growth at SRF, we remain committed to strengthening a performance-driven, fair, and transparent organisation.

Industrial environment

The organisation’s overall employee relations remained positive throughout the year. Understanding them and keeping employees’ need ahead in all major decisions resulted in a more engaged, motivated, involved and committed workforce. Various initiatives were implemented at the plant locations that encouraged collaboration and participation of not just employees but also of their families. We maintained a pleasant and cordial working environment across all manufacturing locations.

As we migrate to the cloud, we will be in a better position to test and deploy evolving technologies like Generative AI which is in the list of technologies we are tracking.

The total number of permanent employees at SRF and its subsidiaries/parent company stood at 8,991 at the close of business on March 31, 2024. Of these, 8,241 were based at our Indian locations.

Community Partnerships

In alignment with its enduring dedication to sustainable and inclusive community development, the SRF Foundation, the Corporate Social Responsibility wing of SRF Limited, has broadened its initiatives and implemented tangible measures in accordance with Section 135 of the Companies Act 2013 for FY24. This strategic expansion underscores the Foundation’s unwavering commitment to fostering positive social impact and upholding corporate responsibility standards within the community.

Information Technology

SRF continued its journey of automating processes using traditional systems as well as modern technology tools towards enabling a productive workforce working on lean, efficient IT-enabled processes, securely integrated with external stakeholders like customers, suppliers, banks, GSP providers, logistics partners. We are now exploring the impact that AI tools can have on optimising the processes and outcomes.

The Foundation continued to focus on the identified areas of Education, Vocational Skills, Health Promotion, Environment, Disaster Management Promotion of Arts and Culture on a sustainable basis. Moreover, it

IT security and resilience was a major focus area considering the heightened threats against Indian enterprises. We made further enhancements on

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provide access to digital technology and education to underserved communities. Furthermore, the SRF Foundation is dedicated to transforming schools into hubs of innovation by offering future skills programs such as the Tinker Coding Program, Atal Community Innovation Centres, and ATAL Tinkering Labs. These programs are designed to equip students with the necessary skills and knowledge to thrive in the digital age.

strengthened its Public Private Community Partnership (PPCP) model to positively impact people’s lives.

In FY24, the Foundation’s Education Programs experienced significant growth and enhancement. The efforts of SRF Foundation were dedicated towards revitalising Government schools, elevating them into exemplary educational institutions known as “Model Schools”. This transformation was achieved through focussed initiatives in physical infrastructure development, digital integration, academic enrichment, and the cultivation of effective school leadership.

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) 2020, which had a direct impact on 13,244 children from 309 Anganwadis across 7 locations.

Currently, our impact extends to 447 Government schools located across 24 regions within 12 states and 1 UT. Through direct and collaborative efforts with like-minded partners, we have been able to provide quality education to a student population of 1,67,350 individuals. Furthermore, our rural education programmes have equipped 2,266 teachers and 447 headmasters with the necessary skills and knowledge to foster a conducive learning environment within these schools.

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 1,620 unemployed youth and 328 women across 13 locations in 8 states, and approximately 70% of them have been placed in national and multinational companies.

In order to promote digital inclusion, the SRF Foundation has implemented a number of initiatives in various intervention locations. These include World on Wheels & SmartShiksha Mobile Digital Labs, Common Services Lab, and Digital Smart TV Classroom Programmes. These programmes aim to

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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.

has helped maintain 204 earthen dams, ensuring their proper utilisation and providing sustainable benefits.

SRF Foundation undertook several new initiatives 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 5,215 ITI and Polytechnic students in skill development and employability across various parts of the country.

In the plantation project, SRF has partnered with Global Vikas Trust and has planted 3,80,300 saplings impacting 122 farmer families directly and around 150-200 farmer families indirectly in 12 districts of Madhya Pradesh.

Furthermore, we undertook flood relief work in Chennai and Tiruvallur district during the Michaung cyclone. We provided rice bags to 500 families and groceries to 300 families affected by the floods. During FY24, the SRF Foundation funded nineteen NGOs for twenty-one social projects in education, sports, health, and environment.

In order to promote community health, we have two programs: the ‘Rural Health Program (RHP)’ and ‘SRF Swasthya Seva’. The RHP focusses on improving medical practices at a primary health centre in Nalcha (Dhar) according to the ‘kayakalp standard’. Additionally, our mobile health van, ‘SRF Swasthya Seva’, will be visiting 15 different villages around the Dahej plant in Bharuch to provide health awareness, diagnose issues, and offer treatment for diseases within the community.

In recognition of our efforts in education programmes, the SRF Foundation was honoured with six prestigious awards during the year. Some noteworthy awards include the CSR Journal Excellence Award 2023, the Bhamashah Award 2023 for CSR intervention in Education (Rajasthan), and the ICC Social Impact Award 2023 for the promotion of education, among several others.

Furthermore, in collaboration with Amway and Opportunity International, we have the ‘Power of 5’ project in Sohna (Haryana) and Chennai (Tamil Nadu) to support child nutrition. These initiatives aim to address the healthcare needs of underserved communities and improve overall well-being. Through the Power of 5 program, the SRF Foundation aims to eradicate childhood malnutrition by empowering communities.

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.

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 FY24, this program directly benefited over 8,100 families in the Tijara block surrounding the SRF Bhiwadi plant. This region receives below-normal rainfall, but the NRM program

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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.

supported by a well-defined organisation structure, roles and responsibilities, documented policies and procedures, financial delegation of authority, ERP controls, among others.

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.

Risk Management

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.

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.

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 a significant material impact. Risk management process has been an integral part of the company strategy and planning process. The company has established a risk management framework to identify, assess and frame a response to threats that can affect its business objectives and stakeholders. Further, it is embedded across all the major functions and revolves around the goals and objectives of the organisation. The responsibility of tracking and monitoring the key risks of the business/function periodically and implementing suitable mitigation plans proactively is with the senior executives of various business/ functional units.

A robust Control Self-assessment (CSA) process enables process owners to perform self-assessment

Risk Management Process

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

Risk Risk Risk Risk Risk
Identification Assessment Prioritisation Treatment Monitoring &
Reporting
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Risk Governance Structure

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

1
Board of
Directors (BOD)/
Audit Committee
2
Risk Management Committee (RMC)
3
Corporate Leadership Team (CLT)
4
Business Leadership Team (BLT) & Risk Owners
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The key roles and responsibilities regarding risk management in the company are summarised as follows:

1. Board of Directors (BOD) & the Audit • Review of policy, key risks as identified by Committee: the management, provide guidance to the

• The Board of Directors hold the overall management, and update the Board & Audit Committee on the same

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
Consider the recommendation of Risk Management Committee on Risk Management Plan/Policy

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

2. Risk Management Committee (RMC):

Identification, classification, and prioritisation of risks into high, medium, and low as per risk management framework
Overview company’s risk management framework and its compliance
Identifications of key risks which may significantly impact the performance of the company
Identify and implement risk mitigation measures
- Periodically review mitigation measure status, develop counter measures, if any
Assist the Board/Audit Committee in evaluating the effectiveness of Risk Management System
Provide status update of key risks to the CLT

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Risk Classification

All risks have been broadly classified into the following categories:

Sustainability including ESG Risk

Operational Risk

Risks of loss due to inadequate manufacturing process, insufficient resources, inadequate processes, safety or failure thereof, insufficient skill or people

Risks arising out of macro-economics and other external conditions which can significantly impact the company’s strategic business decision, future aspiration, and financial performance

Regulatory Risk

Financial & Reporting Risk

Risks arising out of regulatory non-compliances

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

IT and Cyber Risk

Sectoral

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

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

During FY24, significant changes in the key financial ratios as per listing regulations were as follows:

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

Ratio FY24 FY23 % change Reason
Interest Coverage Ratio = 7.35 13.10 -43.89% Interest rates witnessed
(EBIDT - Current Tax) / Gross an uptrend during
Interest and lease payments FY24 due to increased
benchmarks, both INR
and USD. Higher debt
led to additional interest
outgo. EBITDA was lower
than last year leading to
some deterioration in the
overall ratio
Return on Net Worth = 13.07% 21.87% -40.24% Lower PAT due to
PAT / Net Worth business scenario in the
current financial year
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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

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2017

Packaging Films Business Domestic Tariff Area, Indore Site

SRF’s Packaging Films Business set up a BOPET and BOPP films manufacturing facility at the Domestic Tariff Area (DTA), in Indore, Madhya Pradesh to tap the growth of the flexible packaging sector in India.

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Corporate Governance Report

Philosophy of the Company on Corporate Governance

For SRF Limited (SRF), good corporate governance means adoption of best practices to ensure that the Company operates not only within the regulatory framework but is also guided by broader business ethics. The adoption of such corporate practices — based on transparency and proper disclosures — ensures accountability of the persons in charge of the Company and brings benefits to investors, customers, creditors, employees and the society at large.

Board of Directors

Composition of the Board

As on March 31, 2024, 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, 2024.

Table 1: Composition of the Board of Directors of SRF

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Name of Director Category of No. of other No. of Committees Name of Listed Entities &
Director Directorships where Chairperson or Category of Directorship
of Indian Member (including SRF
Public Ltd Co. Limited) [#]
(other than Chairperson Member
SRF Limited)
Mr. Ashish Bharat Ram Executive 6 1 1 1. KAMA Holdings Limited
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Mr. Ashish Bharat Ram	Executive	6	1	1	1.	KAMA Holdings Limited
	Chairman,					– Non- Executive
	Promoter					Director
					2.	Havells India Limited -
						Independent Director
					3.	Bharat Forge Limited
						– Non-Independent &
						Non-Executive Director
Mr. Kartik Bharat Ram	Executive,	3	-	2	1.	KAMA Holdings Limited
	Promoter					– Non- Executive
						Director
Mr Tejpreet S	Non-Executive,	4	2	1	1.	Gujarat Pipavav Port
Chopra**	Independent					Limited – Independent
						Director
					2.	Indian Energy Exchange
						Ltd - Independent
					3.	Tube Investments of
						India Ltd -Independent
						Director
					4.	Eicher Motors Limited –
						Independent Director
Mr. Lakshman	Non-Executive,	0	1	-	-
Lakshminarayan**	Independent

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Mr. Vellayan Subbiah	Non-Executive, Non- Independent	6	1	2	1. Tube Investments of India Ltd –Executive Vice Chairman, Promoter 2. Cholamandalam Investment and Finance Company Limited - Non-Executive Director	RPORATE OVERVIEW
					3. Cholamandalam
					Financial Holdings
					Limited - Non-Executive
					Director
					4. CG Power and Industrial
					Solutions Limited - Non-
					Executive Director
Mr. Pramod Gopaldas Gujarathi Ms. Bharti Gupta Ramola	Executive Non-Executive, Independent	1 2	- -	1 2	1. Chemiesynth (Vapi) Limited – Independent Director 1. HDFC Life Insurance Company Ltd – Independent Director, 2. Tata Steels Limited - Independent Director	STATUTORY REPORTS
Mr. Yash Gupta	Non-Executive,	2	-	1	1. Restaurant Brands Asia
	Independent				Limited - Independent
	Director				Director
Mr. Puneet Yadu	Non-Executive,	4	-	1	1. Dalmia Bharat Ltd -
Dalmia	Independent				Managing Director
	Director				2. Piramal Enterprises Ltd
					- Independent Director
Mr Raj Kumar Jain	Non-Executive, Independent Director	1	-	3	3. Piramal Capital & Housing Finance Ltd - Independent Director 1. JK Agri Genetics Limited - Independent Director	FINANCIAL STA

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.

** Mr. L Lakshman and Mr. Tejpreet S Chopra ceased to be Independent Directors upon completion of second consecutive term with effect from close of business hours on March 31, 2024 and subject to approval of shareholders, Mr. Vineet Agarwal and Ms. Ira Gupta were appointed as Independent Directors w.e.f. April 1, 2024.

Membership & Chairmanship of Stakeholder Relationship Committee & Audit Committee of Indian Public Limited Companies (whether listed or not) have been considered.

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

Industry knowledge/experience	Industry knowledge/experience	Technical skills/ experience	Technical skills/ experience	Behavioural Competencies	Behavioural Competencies
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	e)	Entrepreneurial & Commercial
	Conditions		New Business		Acumen
f)	Recommending cost-cutting	f)	Proposing solutions	f)	Analytical Decision Making
	measures		to Business Problems
g)	Recommending Process	g)	Innovation	g)	Customer Centricity
	Improvements			h)	Leading Change
				i)	LeadingPeople
Skills	available with Board as per skill matrix -
S. No.	Name of Director		Industry knowledge/ experience	Technical skills/ experience Behavioural Competencies
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 Lakshminarayan		b,c,d,e,f,g	a,b,c,f	a,b,e,f,g,i
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. RajKumar 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 April 30, 2024, 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 of Listing Regulations and Section 149(6) of the Companies Act, 2013.

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

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, 2024, 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 in 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 2023-24, 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 2023-24

Name of the Director	Date of Board Meeting and Attendance of Directors Date of AGM and Attendance of Directors
	May 09, 2023 July 24, 2023 October 27, 2023 January 30, 2024 June 30, 2023
Mr. Ashish Bharat Ram Mr. Kartik Bharat Ram Mr. Pramod G Gujarathi Mr. Tejpreet S Chopra Mr. Lakshman Lakshminarayan Mr. Vellayan Subbiah Mrs. Bharti Gupta Ramola Mr. Puneet Yadu Dalmia Mr. Yash Gupta Mr. RajKumar Jain	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes

Remuneration of Directors

Table 3 gives the remuneration paid or payable to the Directors of SRF Limited for financial year 2023-24 and table 4 gives details of Service Contracts

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Table 3: Remuneration Paid or Payable

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S. Name Salary & Sitting Perquisites Retiral benefits Commission Total ( ` In
No Allowances Fees (Provided)/ Crores)
Professional
Fees
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1 Mr Ashish Bharat Ram 2 Mr Kartik Bharat Ram 3 Mr Pramod G Gujarathi 4 Mr. Raj Kumar Jain 5 Mr Tejpreet S Chopra 6 Mr. Lakshman Lakshminarayan 7 Mr Vellayan Subbiah 8 Mrs. Bharti Gupta Ramola 9 Mr. Puneet Dalmia 10 Mr. Yash Gupta Total	9.63 - 1.04 1.35 8.00 20.02 9.63 - 1.04 1.53 8.00 20.20 0.24 - - 0.02 - 0.26 - 0.03 - - 0.18 0.21 - 0.04 - - 0.18 0.22 - 0.04 - - 0.18 0.22 - 0.01 - - 0.18 0.19 - 0.03 - - 0.18 0.21 - 0.01 - - 0.18 0.19 - 0.05 - - 0.18 0.23
	19.50 0.21 2.08 2.90 17.26 41.95

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

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Name of Director Tenure Notice Period Severance Fee
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Mr. Ashish Bharat Ram	5 years w.e.f. May 23, 2020.	3 months by either party	As per the provisions of
			the 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, 2023.	1 month by either party	Nil
Gujarathi

Shareholding of Non-Executive Directors

Table 5 gives details of the shares held by the non-executive Directors as on March 31, 2024.

Table 5: Equity Shares held by Non-Executive Directors as on March 31, 2024

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Name of Director Category Number of Equity Shares Held
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Mr. Tejpreet S Chopra	Independent	3521
Mr. Lakshman Lakshminarayan	Independent	-
Mr. Vellayan Subbiah	Non-Executive and Non-Independent	67035
Mrs. Bharti Gupta Ramola	Independent	-
Mr. Puneet Yadu Dalmia	Independent	-
Mr. Yash Gupta	Independent	3200
Mr. RajKumar Jain	Independent	-

The Company has not issued any convertible securities to any Director

Information Supplied to the Board

another enterprise that can have negative implications on the Company

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:

Details of any joint venture or collaboration agreement
Transactions that involve substantial payment towards goodwill, brand equity or intellectual property
Annual operating plans and budgets and any update thereof
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
Capital budgets and any updates thereof
Quarterly results of the Company and operating divisions and business segments
Minutes of the meetings of the audit committee • Sale of material nature of investments,
and other committees of the Board subsidiaries, assets, which is not in the normal
• Information on recruitment and remuneration course of business
Information on recruitment and remuneration course of business of senior officers just below the level of Board, • Quarterly details of foreign exchange exposures including the appointment or removal of Chief and the steps taken by management to
Financial Officer and Company Secretary limit the risks of adverse exchange rate
• Materially important show cause, demand, movement, if material
Materially important show cause, demand, prosecution notices and penalty notices
Non-compliance of any regulatory, statutory nature or listing requirements and shareholders service such as non-payment of dividend, delay in share transfer, etc
Fatal or serious accidents, dangerous occurrences, any material effluent or pollution problems
Any material default in financial obligations to and by the Company, or substantial non-payment The Board periodically reviews compliance reports of
for goods sold by the Company all laws applicable to the Company, prepared by the
• Any issue, which involves possible public or Company as well as steps taken by the Company to product liability claims of substantial nature, rectify instances of non-compliances.
Any issue, which involves possible public or Company as well as steps taken by the Company to product liability claims of substantial nature, rectify instances of non-compliances. including any judgement or order, which may have passed strictures on the conduct of the In addition to the above, pursuant to the Listing Company or taken an adverse view regarding Regulations the minutes of the Board meetings

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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
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 Secretary of the Company acts as Secretary to the Committee.
As on March 31, 2024, 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

Table 6 provides details of the Audit Committee meetings held during the year 2023-24 and attendance of its members.

Table 6: Attendance Record of Audit Committee Meetings during 2023-24

Name of Members Category**	Date of Audit Committee Meeting and Attendance of Members
	May 08, 2023 July 24, 2023 October 27, 2023 January 30, 2024*
Mr. Lakshman Lakshminarayan (Chairman) Independent, Non-Executive Mrs. Bharti Gupta Ramola Independent, Non-Executive Mr. RajKumar Jain Independent,Non-Executive	Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes

*Audit Committee Meeting dated May 08, 2023 was adjourned and reconvened & concluded on May 09, 2023.
** Mr. L Lakshman ceased to be Independent Director and Chairman of Audit Committee upon completion of second consecutive term with effect from close of business hours on March 31, 2024. The Committee was reconstituted by redesignation of Mrs. Bharti G Ramola as Chairperson of Audit Committee and induction of Mr. Yash Gupta as Member of Audit Committee wef April 1, 2024

b) Nomination and Remuneration Committee

to become Directors, Key Managerial Personnel and, Senior Management Personnel and in accordance with the 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
Formulation of the criteria for determining qualifications, positive attributes and independence of a director.
Evaluation of the performance of Directors (other than independent directors).
Formulation of criteria for evaluation of Independent Directors and the Board
Evaluation of the performance of independent directors and make recommendations to Board.
Devising a policy on Board diversity.
To oversee succession planning for Board of Directors, Key Managerial Personnel and Senior Management Personnel
Formulation of policies for remuneration to Directors, Key Managerial Personnel, Senior Management Personnel and other Employees.
Identification and recommendation to Board of persons who are qualified
Formulation of criteria for making payment to Non-Executive Directors

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Recommend to the board, all Mr. Tejpreet S Chopra (Chairman), remuneration, in whatever form, Mr. Yash Gupta and Mr. Puneet Yadu payable to senior management. Dalmia as Members. The constitution of the Committee meets the requirements of Section 178 of the Companies Act, 2013.
ii) Composition of Nomination and Remuneration Committee

Table 7 provides details of the Nomination and Remuneration Committee meetings held during the year 2023-24 and attendance of its members.

As on March 31, 2024, this Committee comprised of three Directors, all of whom are independent, namely

Table 7: Attendance Record of Nomination and Remuneration Committee Meetings during 2023-24

Name of Members Category	Date of NRC Meeting and Attendance of Members
	January 30, 2024
Mr. Tejpreet S Chopra (Chairman) Independent, Non-Executive Mr. Puneet Yadu Dalmia Independent, Non-Executive Mr. Yash Gupta Independent,Non-Executive	Yes No Yes

** Mr. Tejpreet S Chopra ceased to be Independent Director and Chairman of NRC Committee upon completion of second consecutive term with effect from close of business hours on March 31, 2024. The Committee was reconstituted by redesignation of Mr. Puneet Dalmia as Chairman of the NRC Committee and induction of Mr. Vineet Agarwal and Ms. Ira Gupta as members of the Committee and cessation of membership of Mr. Yash Gupta wef April 1, 2024

iii) Annual Evaluation of Board, Committees and Individual Directors

Based on the recommendations of the NRC, the Board of Directors decide to continue their appointment or consider them for reappointment, as applicable.

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, 2024, this Committee comprised four Directors—two executive Directors and two non-executive Directors, Mr. Tejpreet S Chopra, (Independent Director) is Chairman, Mr. Yash Gupta, (Independent Director), Mr. Ashish Bharat Ram and 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 2023-24 and attendance of its members.

Table 8: Attendance Record of Stakeholders Relationship Committee Meetings during 2023-24

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

Name of Members Mr. Tejpreet Mr. Ashish Mr. Kartik Mr. Yash
S Chopra Bharat Ram Bharat Ram Gupta
(Chairman)
Category Non-Executive, Executive, Executive, Non-Executive,
Independent Promoter Promoter Independent
----- End of picture text -----

Date of Stakeholders Relationship	April 28, 2023 May 09, 2023 June 03, 2023	Yes Yes No	Yes Yes No	Yes Yes Yes	Yes Yes Yes
Committee Meetings during 2023-24	June 30, 2023 July 19, 2023 September 04,2023	Yes Yes Yes	Yes Yes Yes	Yes Yes Yes	No No Yes
	October 04, 2023	No	No	Yes	Yes
	November 09,2023	Yes	Yes	Yes	Yes
	November 21,2023	Yes	Yes	Yes	Yes
	December 26, 2023	No	Yes	Yes	Yes
	January 24,2024	Yes	Yes	Yes	Yes
	February 08,2024	No	Yes	Yes	Yes
	March 26,2024	Yes	Yes	Yes	Yes

** Mr. Tejpreet S Chopra ceased to be Independent Director and Chairman of Stakeholder Relationship Committee upon completion of second consecutive term with effect from close of business hours on March 31, 2024. The Committee was reconstituted by induction of Mr. Raj Kumar Jain as Chairman of the Committee and cessation of membership of Mr. Yash Gupta wef April 1, 2024.

Mr. Rajat Lakhanpal, Sr. VP (Corporate Compliance) & Company Secretary is Compliance Officer under Listing Regulations.

As on March 31, 2024, 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 2023-24.

Table 9: Shareholder and Investor Complaints received and redressed during 2023-24

	Total Complaints Received	Total Complaints Redressed	Complaints not solved to the satisfaction of Shareholders	Pending as on March 31, 2024
	316	316	Nil	Nil

d) Corporate Social Responsibility Committee

As on March 31, 2024, 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 2023-24 and attendance of its members:

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Table 10: Attendance Record of Corporate Social Responsibility Committee Meetings during 2023-24

Name of the Member Category	Date of Corporate Social Responsibility Meeting and Attendance of Member
	08 May 2023 30 January 2024
Mr. Kartik Bharat Ram (Chairman) Executive Mr. Lakshman Lakshminarayan** Independent Mr. Yash Gupta Independent	Yes Yes Yes Yes Yes Yes

** Mr. L Lakshman ceased to be Independent Director and member of CSR Committee upon completion of second consecutive term with effect from close of business hours on March 31, 2024. The Committee was reconstituted by inducting Ms. Ira Gupta as members of the Committee wef April 1, 2024

The details of CSR initiatives undertaken by the Company during financial year 2023-24 are provided in the CSR Annual Report annexed to the Directors Report.

  - (2)  To ensure that appropriate methodology, processes and systems are in place to monitor and evaluate risks associated with the business of the Company;

e) Risk Management Committee
As on March 31, 2024, 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.
(3) To monitor and oversee implementation of the risk management policy, including 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;

As on March 31, 2024, brief description of terms of reference of Risk Management Committee interalia includes the following:

  - (5)  To keep the board of directors informed about the nature and content of its discussions, recommendations and actions to be taken;

(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.
(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.

Table 11 provides details of the Risk Management Committee meetings held during the year 2023-24 and attendance of its members.

(b) Measures for risk mitigation including systems and processes for internal control of identified risks.

Table 11: Attendance Record of Risk Management Committee Meeting during 2023-24

Name of Members Category	Date of meeting and Attendance of Director
	June 05, 2023 November 28, 2023
Mr. Ashish Bharat Ram (Chairman) Executive, Promoter Mr. Kartik Bharat Ram Executive, Promoter Mrs. Bharti Gupta Ramola Independent, Non-Executive	Yes Yes No Yes Yes Yes

f) Committee of Directors – Financial Resources

As on March 31, 2024, 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 2023-24 and attendance of its members.

Name of Members	Date of Committee of Directors- Financial Resources Meeting and Attendance of Members
	9 May 23 23 Jun 23 24 Jul 23 11 Aug 23 27 Oct 23 08 Jan 24 30 Jan 24 13 Mar 24 20 Mar 24
Mr. Ashish Bharat Ram Mr. Kartik Bharat Ram Mr. Pramod G Gujarathi	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No No No No No Yes No 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.

Senior Management- Particulars of Senior Management Personnel as defined under Regulation 16(1)(d) of SEBI (LODR) as on March 31,2024 Including the changes therein since the close of the previous financial year are as follows:

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S. No. Name of Senior Management Designation
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1 2 3	Mr. Mr. Mr.	Ashish Bharat Ram Kartik Bharat Ram Pramod Gopaldas Gujarathi	Chairman & Managing Director Joint Managing Director Occupier & Director (Safety & Environment)
4	Mr.	Prashant Mehra	President & CEO (Packaging Films Business, Coated Fabric &
5 6	Mr. Mr.	Anurag Jain Prashant Yadav	Laminated Fabric Business) President & CEO (Specialty Chemicals Business & CTG) President & CEO (Fluoro Chemicals Business & Technical
			Textiles Business)
7	Mr.	Ajay Chowdhury	President & CHRO
8	Mr.	Sanjay Rao	President & CIO
9	Mr.	Rahul Jain	President & CFO
10	Mr.	Rajat Lakhanpal	Sr. VP(Corporate Compliance)& CompanySecretary

There is no change in Senior Management during the financial year.

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Disclosure of certain types of agreements binding listed entities - Information disclosed under clause 5A of Para A of Part A of Schedule III of SEBI (LODR) , 2015

Nil

There is no such agreement.

Management

Management Discussion and Analysis

This is given as a separate chapter in this Annual Report.

Disclosure Requirements

During the year 2023-24, 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.srf.com/ -
investors/corporate governance/
The equity shares of the Company are listed on BSE Limited and National Stock Exchange of India Limited. The Company has complied with all the applicable requirements of capital markets and no penalties or strictures have been imposed on the Company by Stock Exchange(s), SEBI or any other statutory authority, on any matter relating to the capital markets, during the last three years.
Vigil Mechanism Policy : 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 Policy of the Company includes Code of Conduct for Directors and Senior Management Personnel, Code of Conduct for employees, Policy against sexual harassment, Whistle blower Policy and Code of Conduct for Prevention of Insider Trading.

The Company is following such a policy and details of which are 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 2023-24.

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
This Corporate Governance Report of the Company for the year 2023-24 is in compliance with the requirements of Listing Regulations, as applicable.

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:

(a) The Board : The Chairman of the Company is Executive Chairman; (b) Shareholder Rights: Half-yearly and other quarterly financial statements are published in newspapers and uploaded on Company’s website www.srf.com. (c) Modified opinion(s) in audit report: The Company already has in place a regime of un-qualified financial statements. Auditors have raised no qualification on the financial statements; and (d) Reporting of Internal Auditor: The Internal Auditor of the Company reports to the President & CFO of the Company and has direct access to the Audit Committee.

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. Vellayan Subbiah, Non-Independent & Non-Executive Director is retiring by rotation and being eligible, offer himself for re-appointment.

Means of Communication with Shareholders

Mr. L Lakshman and Mr. Tejpreet S Chopra ceased to be Independent Director(s) upon completion their second consecutive term with effect from close of business hours on March 31, 2024.

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.

Subject to approval of shareholders, the Board at its meeting held on January 30, 2024 appointed Mr. Vineet Agarwal and Mrs. Ira Gupta as Additional Director (Independent) w.e.f. April 1, 2024.

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.

Brief resumes of all the directors proposed to be appointed/re-appointed are given in the Notice of the 53rd Annual General Meeting.

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 -----

2020-21	Video Conferencing.	August 31, 2021	11.00 A.M.	1
	Deemed Venue- The Galleria, DLF Mayur
2021-22 2022-23	Vihar, Unit No. 236 & 237, 2nd Floor, Mayur Place, Mayur Vihar Phase I Extn, Delhi – 110091 Video Conferencing. Deemed Venue- The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, 2nd Floor, Mayur Place, Mayur Vihar Phase I Extn, Delhi – 110091 Video Conferencing. Deemed Venue- The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, 2nd Floor, Mayur Place, Mayur Vihar Phase I Extn, Delhi – 110091	July 21, 2022 June 30, 2023	11.00 A.M 10.00 A.M	2 6

Postal Ballot Venue: The Company is conducting meeting through During the year no resolutions was passed VC / OAVM pursuant to the Ministry of Corporate through Postal Ballot. Affairs (“MCA”), vide Circular No. 14/2020 dated April 8 2020, Circular No.17/2020 dated April 13, 2020 read Additional Shareholder Information with Circular No. 20/2020 dated May 5, 2020 read 53rd Annual General Meeting together Circular No. 02/2021 dated January 13, 2021 Day: Friday read together with Circular No. 2/2022 dated May 5, Date: June 28, 2024 2022 and Circular No. 10/2022 dated December 28, Time: 11.00 A.M. 2022 (collectively referred to as ‘MCA Circulars’) and Mode: Video Conferencing SEBI vide its circular dated May 12, 2020, January 15,

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Interim Dividend Payment Date

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, 2nd Floor, Mayur Place, Mayur Vihar Phase I Extn, Delhi – 110091 For details please refer to the Notice of this AGM.

During the financial year 2023-24, Two interim dividends of 3.60/- per share (36%) each on the paid up capital of the Company absorbing 213.43 Crores approx. were paid on August 22, 2023 and February 28, 2024 respectively.

Equity Shares in Unclaimed Shares Suspense

Financial Year

1 April to 31 March

Account

In terms of Regulation 39 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 details of the equity shares lying in the Unclaimed Suspense Account are as follows:

Tentative Financial Calendar for Results,

2024-25

First Quarter Third week of July 2024 Second Quarter Last week of October 2024 Third Quarter Last week of January 2025 Fourth Quarter and Second week of May 2025 Annual

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Particulars No. of No. of Equity
shareholders Shares
----- End of picture text -----

Aggregate Number of shareholders and the Outstanding shares in the	936	2,89,141
Unclaimed Suspense Account lying as on April 1, 2023
Less : Number of shareholders to whom shares were transferred from	(35)	(20,788)
suspense account during the year
Less : Number of shares transferred to IEPF Authority during the year	(204)	(57,498)
Aggregate number of shareholders and the outstanding shares in the	697	2,10,855
suspense account lyingon March 31,2024

The Voting rights on these shares shall remain frozen till the rightful owner of such shares claims the shares.

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.

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 2023-24, 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 ` 2.10 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)

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

Lender Borrower Nature of Currency Opening Loan Loan Closing
Relationship Balance granted repaid Balance
as on during during as on
01.04.2023 the year the year 31.03.2024
----- End of picture text -----*

SRF Limited	SRF Altech	Wholly owned	INR	54.96	365.04	(360.00)	60.00
(Company) SRF Global	Limited SRF Industex	subsidiary Wholly owned	USD	52.32	-
BV (Wholly Owned Subsidiary of Co.)	Belting (Pty) Limited SRF Europe Kft.	subsidiary Wholly owned subsidiary	EURO	260.47	-	(3.96) (58.49)	48.36 201.98
	SRF Flexipak	Wholly owned	USD	5.52	-	(5.52)	-
	(South Africa)	subsidiary
	(Pty)Limited

April 1, 2023 numbers have been computed using exchange rate as on March 31,2024, where ever applicable. Exchange rate used- USD-1 Rupees equals to USD 83.383 and 1 Rupees equals to EURO 89.978

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. There is no material subsidiary of Company as on 31.03.2024.

Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 for the year 2023-24

No. of complaints filed during the financial year Nil No. of complaints disposed off during the financial year Nil No. of complaints pending as on the end of the financial year Nil

List of Credit Ratings

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

Instrument Rating Agency Rating Outlook
----- End of picture text -----

Fund Based and Non-Fund Based Limits	India Ratings	IND AA+/Stable/IND A1+	Stable
Fund Based and Non-Fund Based Limits	CRISIL	CRISIL AA+/Stable/ CRISIL A1+	Stable
Long Term Loans	India Ratings	IND AA+/Stable	Stable
Long Term Loans	CRISIL	CRISIL AA+/Stable	Stable
Commercial Papers	India Ratings	IND A1+	Stable
Commercial Papers	CRISIL	CRISIL A1+	Stable

During the year under review there is no revision in Credit Rating.

Listing on Stock Exchanges in India

As on March 31, 2024, 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 2024-25. The Stock Codes are:

	Stock Exchanges	Equity Shares
	BSE Limited	503806
	25th Floor , P.J. Towers Dalal Street, Mumbai 400 001
	National Stock Exchange of India Limited “Exchange Plaza” Bandra-Kurla Complex Bandra(E)Mumbai 400 051	SRF

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Stock Market Data

Table15 gives the monthly high and low quotations as well as the volume of shares traded at BSE and NSE during 2023-24

Table 15: Monthly Highs and Lows and Volumes Traded at the BSE and NSE during 2023-24

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

BSE NSE
Month Highest Price Lowest Price Volume Highest Price Lowest Price Volume
( ) ( ) (No.) ( ) ( ) (No.)
----- End of picture text -----

	Apr-23	2,545.0	2,354.0	2,22,70	2,545.		2,354.		79,21,7
	May-23	2,636.65	2,400.00	2,73,814	2,636.00		2,400.00		88,55,916
	Jun-23	2,573.25	2,285.00	8,34,892	2,576.95		2,285.10	1,11,76,664
	Jul-23	2,304.70	2,050.00	9,77,005	2,307.85		2,040.00	1,94,16,334
	Aug-23	2,397.95	2,167.70	4,62,401	2,387.00		2,168.00	1,14,58,938
	Sep-23	2,475.45	2,223.25	3,02,292	2,475.50		2,224.25		88,12,529
	Oct-23	2,300.00	2,081.25	3,36,2 64	2,301.20		2,082.25		78,45,520
	Nov-23	2,382.95	2,159.60	1,77,176	2,383.25		2,160.05		50,67,841
	Dec-23	2,529.60	2,345.60	4,34,639	2,529.00		2,344.60	1,10,30,002
	Jan-24	2,524.90	2,205.05	5,92,729	2,525.00		2,210.00	1,30,37,655
	Feb-24	2,428.90	2,244.80	3,54,570	2,429.55		2,245.00		98,92,672
	Mar-24	2,600.00	2,338.30	1,96,586	2,600.00		2,344.35		94,34,035
Chart 1: Share		prices of Nifty versus SRF Limited for the year ended March 31 2024
				SRF VS. NIFTY
	140.00
	120.00
	100.00
	80.00
	60.00
	40.00
	20.00
	-
	Apr-23	May-23 Jun-23	Jul-23 Aug-23	Sep-23 Oct-23	Nov-23 Dec-23	Jan-24 Feb-24		Mar-24
				Nifty Close	SRF Close

Note: Both Nifty and SRF share prices are indexed to 100 as on April 1, 2023.

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.

Share Transfer System

As mandated by SEBI, securities of the Company can be transferred / traded only in dematerialised form. Shareholders who have the shares in physical form are advised to get their shares dematerialised.

Company obtains a yearly certificate from a Company Secretary in Practice as required under Regulation 40(9) of SEBI (LODR) Regulations and files copy of the said certificate with the Stock Exchanges.

Dematerialisation of Shares & Liquidity

Distribution of Shareholding as on March 31, 2024@

As on March 31, 2024, out of 29,64,24,825 Equity Shares of ` 10/- each, 29,43,47,981 shares (99.30%) were held in electronic form by 2,35,149 shareholders and balance 20,76,844 shares (0.70%) were held by 5,611 shareholders in physical form.

Table 16 gives the distribution of shares according to shareholding class, while Table 17 gives the distribution of shareholding by ownership.

Table 16: Pattern of Shareholding by Share Class as on March 31, 2024

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No. of Equity Shares held No. of % of No. of shares % of
shareholders Shareholders Shareholding
----- End of picture text -----

1-500	2,28,732	95.01	93,30,228	3.15
501- 1000	5,139	2.13	39,37,152	1.33
1001- 2000	3,426	1.42	49,83,835	1.68
2001- 3000	1,314	0.51	32,70,659	1.10
3001- 4000	490	0.21	17,23,671	0.58
4001- 5000	342	0.14	16,00,646	0.54
5001- 10000	522	0.22	37,09,588	1.25
10001& Above	795	0.33	26,78,69,046	90.36
Total	2,40,760	100.00	29,64,24,825	100.00

Table 17: Pattern of Shareholding by Ownership as on March 31, 2024

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

S. Category Total Shares % To Equity
No
1 PROMOTER COMPANIES 14,89,70,000 50.26
----- End of picture text -----*

No 1	PROMOTER COMPANIES*	14,89,70,000	50.26
2	FOREIGN PORTFOLIO – CORP	5,64,90,451	19.06
3	RESIDENT INDIVIDUALS	3,18,93,857	10.76
4	MUTUAL FUNDS	2,48,09,166	8.37
5	QUALIFIED INSTITUTIONAL BUYER	2,03,14,387	6.85
6	BODIES CORPORATES	39,46,739	1.33
7	NON RESIDENT INDIAN NON REPATRIABLE	36,58,476	1.23
8	I E P F	20,92,187	0.71
9	INSURANCE COMPANIES	12,92,616	0.44
10	H U F	8,84,751	0.30
11	ALTERNATIVE INVESTMENT FUND	6,50,599	0.22
12	NON RESIDENT INDIANS	4,68,088	0.16
13	EMPLOYEES	4,22,058	0.14
14	BANKS	2,63,523	0.09
15	PROMOTERS	1,37,500	0.05
16	DIRECTORS	73,756	0.02
17	NBFC	20,033	0.01
18	UNIT TRUST OF INDIA	17,265	0.01
19 20	CLEARING MEMBERS TRUSTS	9,940 9,433	0.00 0.00
	Total	29,64,24,825	100.00

@Including holdings in NSDL and CDSL

*KAMA Holdings Limited (“KAMA”), Promoter Company has sold 6,75,000 equity shares on March 27, 2024 & 1,25,000 equity Shares on March 28, 2024 in open market. However, Equity shares aggregating to 125000 which were sold on 28th March 2024 were not debited from the demat account of KAMA due to intervening holidays and therefore the same are being shown as a part of total shares held by KAMA in the Company as on March 31, 2024 for the disclosure above considering details of the category of purchaser are not available with the company.

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Outstanding GDRs/ ADRs/ Warrants or Any Convertible Instruments, their conversion dates and Likely Impact on Equity

As on March 31, 2024, there were no outstanding GDRs/ ADRs/ Warrants or any convertible instruments

Commodity price risk or foreign exchange

risk and hedging activities

During the year 2023-24, the Company had managed the foreign exchange risk and hedged to the extent considered necessary. The Company enters into

forward contracts and options 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 imports and exports.

The details of foreign currency exposure are disclosed in the Note No. 38 to the 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, 2024.

Ashish Bharat Ram Chairman & Managing Director

Date: 7th, May 2024 Place: Gurugram

Plant Locations

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

Business Plant Locations
----- End of picture text -----

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 Business	•	Village & P.O. Jhiwana, Tehsil Tijara, Distt. Alwar - 301 018, Rajasthan
	•	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

Including other Business

2017

Acquired Mexichem’s HFC-125 assets

Address for Correspondence

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

Registered Office Corporate Office Registrar & Share Transfer Agent
----- End of picture text -----

The Galleria, DLF Mayur	Block – C, Sector –45	KFin Technologies Limited
Vihar, Unit No.236 & 237,	Gurugram 122 003	Karvy Selenium Tower B, Plot No 31 & 32
Second Floor, Mayur Place,	Tel No.:( + 91-124) 4354400	Gachibowli, Financial District,
Mayur Vihar, Phase-I Extn.,	Fax No.: (+ 91-124) 4354500	Nanakramguda, Serilingampally
Delhi - 110091	E-mail :[email protected]	Hyderabad – 500032
Tel No.: (+ 91-11) 49482870 Fax No.:(+ 91-11) 49482900		E-mail:[email protected] Website:https://www.kfntech.com
E-mail :[email protected]		Toll Free No. 1- 800-309-4001

SRF acquired the HFC-125 assets and the technical know-how on an exclusive basis. The company relocated the assets to India and set up the facility for manufacturing HFC-125 at its Chemical complex in Dahej, Gujarat. With this acquisition, SRF gained the unique advantage of manufacturing all three major HFCs, namely HFC 134a, 32 and 125, which are marketed under the FLORON® brand.

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Certificate Of Non-Disqualification Of Directors

Independent Auditor’s Report

(Pursuant to Regulation 34(3) read with Schedule V Para-C Clause 10(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

The Members

SRF Limited

The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, 2nd Floor, Mayur Place, Mayur Vihar Phase I Extension, New Delhi-110091

I have examined the relevant registers, records, forms, returns and disclosures received from the Directors of SRF Limited having CIN L18101DL1970PLC005197 and having registered office at the Galleria, DLF Mayur Vihar, Unit No. 236 & 237, 2nd Floor, Mayur Place, Mayur Vihar Phase I Extension, New Delhi-110091 (hereinafter referred to as ‘the Company’), produced before me by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Clause 10(i) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In my opinion and to the best of my information and according to the verifications (including Directors Identification Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to me by the Company & its officers, I hereby certify that none of the Directors on the Board of the Company as stated below for the financial year ending on March 31, 2024, 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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----- Start of picture text -----

S. Name of Director DIN Date of appointment
no. in the Company
1. Mr. Ashish Bharat Ram 00671567 23/05/2005
----- End of picture text -----*

S. no. 1.	Name of Director Mr. Ashish Bharat Ram	DIN 00671567	Date of appointment in the Company* 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 Gujarathi	00418958	01/04/2017
9.	Mr. Vellayan Subbiah	01138759	01/05/2012
10.	Mr. RajKumar Jain	01741527	09/05/2022

*The date of appointment is as per the MCA Portal.

**ceased to be Director upon completion of tenure as Independent Director from the close of business hours on March 31, 2024.

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

Rohit Parmar ACS No.: A54442; COP No. 22137 Peer Review no.: 2122/2022 UDIN: A054442F000275476

Date: April 30, 2024 Place: New Delhi

To the Members of SRF Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of SRF Limited (the “Company”) which comprise the standalone balance sheet as at 31 March 2024, 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 material accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2024, and its profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.

1. Accounting for derivatives See Note 38 to standalone financial statements Key audit matter

The Company uses derivative financial instruments to mitigate foreign currency risk primarily through foreign currency forward exchange contracts. Further, the Company uses hedge relationship designation as per criteria set out in relevant Indian accounting standards. Accounting thereof, including assessment of hedge effectiveness, and related presentation and disclosures of these transactions require significant judgement. Given the significant level of judgement and estimation involved and the quantitative significance, we have determined this to be a key audit matter.

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.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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:

a. 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.

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1. Accounting for derivatives

See Note 38 to standalone financial statements

Key audit matter

How the matter was addressed in our audit

b. 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.
c. 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.
d. Assessed the adequacy of disclosures in the financial statements in respect of both nonderivative and derivative financial instruments.

2. Assessment of uncertain tax position on taxability of income from sale of Carbon emission reduction (“CER”) certificates See Note 29 to standalone financial statements 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, among others, to obtain sufficient appropriate audit evidence:

The Company has an uncertain tax position with regard to taxability of income from sale of Carbon Emission Reduction (CER) certificates related to certain past years. Assessment of such positions involves significant judgement based on a number of factors, including, interpretation of tax laws, status of assessment of each year by income-tax authorities, evaluation of company- specific orders, and judicial precedents.

a. Tested the design, implementation and operating effectiveness of controls over analysis of uncertain tax position and measuring tax benefits.
b. Obtained status of litigations for relevant assessment years where this uncertain tax position has been identified and management assessment on such tax positions.

As explained in note 29 of the standalone financial statements, based on assessment of relevant factors, the Company has decided to reverse the provision for tax recognised in respect of two assessment years. The above note also explains related uncertainties associated with the matter, including those pertaining to outcome for other assessment years.

c. Evaluated, with the assistance of specialists, Company’s uncertain tax position by performing the following:
i. Identifying key judgements underlying uncertain tax position.
ii. Evaluating relevant factors taken into consideration by the Company in its probability assessment of uncertain tax position, including status of different assessment years, position taken by tax authorities in company-specific tax assessments and industry precedents.

Given the significant level of judgement involved and the quantitative significance, we have determined this to be a key audit matter.

2. Assessment of uncertain tax position on taxability of income from sale of Carbon emission reduction (“CER”) certificates See Note 29 to standalone financial statements Key audit matter How the matter was addressed in our audit

iii. Evaluating Company’s method of measuring the amount of reversal of provision for tax, including underlying data and past tax filings.
iv. Based on the above, evaluating whether Company’s assessment of tax uncertainties and resulting conclusions are consistent with our assessment, after taking into consideration current facts and circumstances.

Other Information

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 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.

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.

Management’s and Board of Directors’ Responsibilities for the Standalone Financial Statements

The Company’s Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the state of affairs, profit/ loss and other comprehensive income/ loss, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted

The Board of Directors is also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as

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on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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
• Obtain an understanding of internal control a statement that we have complied with relevant relevant to the audit in order to design ethical requirements regarding independence, and audit procedures that are appropriate in the to communicate with them all relationships and circumstances. Under Section 143(3)(i) of the other matters that may reasonably be thought to Act, we are also responsible for expressing our bear on our independence, and where applicable, opinion on whether the company has adequate related safeguards. internal financial controls with reference to financial statements in place and the operating From the matters communicated with those charged effectiveness of such controls. with governance, we determine those matters that were of most significance in the audit of the
• Evaluate the appropriateness of accounting standalone financial statements of the current period policies used and the reasonableness of and are therefore the key audit matters. We describe accounting estimates and related disclosures these matters in our auditor’s report unless law or made by the Management and Board of Directors. regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
• Conclude on the appropriateness of the determine that a matter should not be communicated Management and Board of Directors use of the in our report because the adverse consequences of going concern basis of accounting in preparation doing so would reasonably be expected to outweigh of standalone financial statements and, based the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2 A. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books except for the matter stated in the paragraph 2(B)(f) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
c. The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows dealt with by this Report are in agreement with the books of account.
d. In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
e. On the basis of the written representations received from the directors as on 31 March 2024 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2024 from being appointed as a director in terms of Section 164(2) of the Act.
f. the modification relating to the maintenance of accounts and other matters connected therewith are as stated in the paragraph 2A(b) above on reporting under Section 143(3)(b) and paragraph 2B(f) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
g. With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”.
B. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and 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 31 March 2024 on its financial position in its standalone financial statements - Refer Note 31 to the standalone financial statements.
b. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts – Refer Note 38 to the standalone financial statements.
c. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
d (i) The management has represented that, to the best of its knowledge and belief, as disclosed in the Note 40(h)(viii) to the standalone financial statements, no funds have been advanced or loaned or invested (either from borrowed

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and (ii) above, contain any material misstatement.

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.
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.
f. Based on our examination which included test checks, except for the instances mentioned below, the Company has used accounting softwares for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective softwares:
(ii) The management has represented (i) The feature of audit trail (edit that, to the best of its knowledge log) facility was not enabled and belief, as disclosed in the throughout the year in the Note 40(h)(ix) to the standalone accounting softwares used for financial statements, no funds maintaining the books of account have been received by the relating to general ledger and Company from any person(s) other related records, for certain or entity(ies), including foreign tables relating to areas, such as, entities (“Funding Parties”), with inventory, purchase and payables the understanding, whether and certain master tables. Further, the feature of recording
recorded in writing or otherwise, audit trail (edit log) facility was
that the Company shall directly or not enabled for the period from
indirectly, lend or invest in other persons or entities identified in 1 April 2023 to 11 April 2023 for certain tables relating to areas
any manner whatsoever by or such as receivables, property,
on behalf of the Funding Parties plant and equipment, intangible
(“Ultimate Beneficiaries”) or assets, sale and purchase provide any guarantee, security invoices, journal entries etc.
or the like on behalf of the Ultimate Beneficiaries. (ii) The feature of audit trail (edit log) facility was not enabled
(iii) Based on the audit procedures throughout the year in the
that have been considered database layer of the software
reasonable and appropriate in used for maintaining the books the circumstances performed, of account relating to payroll, nothing has come to our notice to log any direct data changes. that has caused us to believe Further, the feature of audit that the representations under trail (edit log) facility was sub-clause (i) and (ii) of Rule enabled at the application layer, 11(e), as provided under (i) however, due to limitations in

the system configuration, we are unable to comment whether the audit trail feature operated throughout the year.

(iii) In case of the edit logs generated by the accounting softwares, only an authorised privileged user had rights to make direct changes to the edit log. However, the feature of audit trail (edit log) facility for recording any such changes was not enabled throughout the year, and hence, we are unable to determine whether any direct changes to the edit logs were made during the year.

For the periods where audit trail (edit log) facility was enabled and operated for the respective accounting softwares,

Place: Gurugram Date: 07 May 2024

we did not come across, subject to our comment in sub-paragraph (iii) above, any instance of the audit trail feature being tampered with.

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.

For B S R & Co. LLP Chartered Accountants Firm’s Registration No.:101248W/W-100022

Kaushal Kishore Partner Membership No.: 090075 ICAI UDIN:24090075BKGTYN3757

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Annual Report [2023-24]

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Annexure A to the Independent Auditor’s Report on the Standalone Financial Statements of SRF Limited for the year ended 31 March 2024

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

Right of Use assets) or intangible assets or both during the year.

(i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.
- (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.
(B) The Company has maintained proper records showing full particulars of intangible assets.
(i) (b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has a regular programme of physical verification of its Property, Plant and Equipment by which all property, plant and equipment are verified in a phased manner over a period of three years. In accordance with this programme, certain property, plant and equipment were verified during the year. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets. As informed to us, no material discrepancies were noticed on such verification.
(ii) (a) The inventory, except goods-in-transit and stocks lying with third parties, has been physically verified by the management during the year.For stocks lying with third parties at the year-end, written confirmations have been obtained, and for goods-in-transit, subsequent evidence of receipts till date of the report has been linked with inventory records. In our opinion, the frequency of such verification is reasonable and procedures and coverage as followed by management were appropriate. No discrepancies were noticed on verification between the physical stocks and the book records that were more than 10% in the aggregate of each class of inventory.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the standalone financial statements are held in the name of the Company.
(b) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets. In our opinion, the quarterly returns or statements filed by the Company with such banks or financial institutions are in agreement with the books of account of the Company.
(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
(iii) According to the information and explanations given to us and on the basis of our examination

of the records of the Company, the Company has not provided any security nor granted any advances in the nature of loans, secured or unsecured, to companies, firms, limited liability partnership or any other parties during the year. The Company has made investments in, provided

guarantees and granted loans to companies and other parties, in respect of which the requisite information is as below. The Company has not made any investments in, provided guarantees and granted loans to firms or limited liability partnership.

(a) Based on the audit procedures carried out by us and as per the information and explanations given to us the Company has provided loans or provided advances in the nature of loans, or stood guarantee, or provided security to entities as below:

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

Particulars Guarantees Loans
( in Crores) ( in Crores)
----- End of picture text -----

(b)

Aggregate amounts during the year
(i) Subsidiaries
632.79
365.04
(ii)Others(Ofcers and employees)
-
26.90
Balance outstanding as at balance sheet date
(i) Subsidiaries
2,423.85
310.15
(ii)Others(Ofcers and employees)
-
61.94
*As per the Companies Act, 2013
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.
(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.

(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.
(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 ` 365.04 crores given to SRF Altech Limited (a wholly owned subsidiary), which is repayable on demand, including interest thereon and has been received to the extent demanded during the year. Thus, there has been no default on the part of the party to whom the money has been lent. Further, the Company has not given any advances in the nature of loan to any party during the year.
(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 or advances in the nature of loans granted during the year to its Promoters and related

224

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parties as defined in Clause (76) of Section 2 of the Companies Act, 2013 (“the Act”):

  - (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.

Particulars Related Party Loan Repayable on ` 365.04 Crores demand (vi) We have broadly reviewed the books of accounts maintained by the Company pursuant to the
Percentage of loans 93.14% rules prescribed by the Central Government
to the total loans for maintenance of cost records under Section 148(1) of the Act in respect of its manufactured
(iv) According to the information and explanations goods and are of the opinion that prima facie,
given to us and on the basis of our examination of the prescribed accounts and records have been
records of the Company, in respect of investments made and maintained. However, we have not
made and loans, guarantees and security given carried out a detailed examination of the records
by the Company, in our opinion the provisions with a view to determine whether these are
of Sections 185 and 186 of the Companies Act, accurate or complete.
(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 Sections 185 and 186 of the Companies Act, 2013 (“the Act”) have been complied with.
(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 1 July 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 31 March 2024 for a period of more than six months from the date they became payable, except as mentioned below:

Name of the statute	Nature of the dues	Amount (`in crores)	Period to which the amount relates	Due date	Date of payment	Remarks, if any
Customs	Tax and	3.03	2020-21	2 December	Not paid	Pending deposit due
Act, 1962	Interest			2020	(refer remarks)	to technical process
						not enabled, involving
						re-assessment of a bill
						of entry. The Company
						has taken steps to
						address this matter.

(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 51] intentionally omitted <==

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

Name of the Nature of Amount Period to Forum where dispute Remarks,
statute the dues ( ` in which the is pending if any
Crores) amount
relates
----- End of picture text -----*

statute the dues	(`in Crores) which the amount relates is pending if any
Central Excise Laws Excise Duty	9.32 1993-02 Upto Commissioner (Appeals) None 3.36 2006-18 Upto Commissioner (Appeals) 1.27 2012-13 Supreme Court Upto Commissioner (Appeals) 0.17 2002 0.34 2015-16 High Court 0.02 2014-15 Sales tax Appellate Tribunal 7.66 1988-2017 Upto Commissioner (Appeals) 1.13 AY 1989-90 Supreme Court 12.35 AY 2018-19 Up to Income tax Appellate Tribunal 4.30 AY 2007-08 Upto Commissioner of Income Tax (Appeal) 73.40 AY 2021-22 68.76 AY 2022-23 0.23 2017-18 Upto Commissioner (Appeals) 2.47 2017-18 High Court 0.21 2011-16 EPF Appellate Tribunal 0.30 2011-13 Central Government Industrial Tribunal
Service Laws Service Tax
Customs Law Customs Duty
Sales Tax Laws Sales Tax
Income Tax Laws Income Tax
Goods & Service tax Laws Goods & Service Tax
Employees Provident Fund & Miscellaneous Provisions Act,1952 Provident Fund

The following matters, which have been excluded from the above table, have been decided in favour of the Company but the concerned department has preferred appeals at higher levels:

Name of the statute	Nature of the dues	Amount (`in Crores)*	Period to which the amount relates	Forum where dispute is pending	Remarks, if any
Income Tax	Income Tax	2.64	AY 2000-01	High Court	None
Laws		1.08	AY 2001-02
		1.83	AY 2003-04
Central Excise	Excise Duty	1.18	1994-95	High Court
Laws		2.24	1989-95	Upto Commissioner (Appeals)
Customs Law	Customs Duty	0.01	2012-13	Upto Commissioner(Appeals)

*The amounts disclosed are net of payments and include interest and penalties, wherever determined.

226

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(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.

Company has not raised loans during the year on the pledge of securities held in its subsidiaries (as defined under the Act).

(x) (a) The Company has not raised any moneys by way of initial public offer or further public offer (including debt instruments) during the year. Accordingly, clause 3(x)(a) of the Order is not applicable.
(ix) (a) 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 defaulted in repayment of loans and borrowing or in the payment of interest thereon to any 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 ` 50.00 crores which remain unutilised as at 31 March 2024 pending application towards ongoing capital expenditure. The Company has temporarily invested such unutilised balance in fixed deposits with a bank as at 31 March 2024.
(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 long-term 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
(e) According to the information and given to us, the Company is not a Nidhi explanations given to us and on an overall Company. Accordingly, clause 3(xii) of the Order examination of the standalone financial is not applicable. statements of the Company, we report that the Company has not taken any funds from (xiii) In our opinion and according to the information any entity or person on account of or to and explanations given to us, the transactions meet the obligations of its subsidiaries as with related parties are in compliance with defined under the Act. Section 177 and 188 of the Act, where applicable,
the Company has not taken any funds from (xiii) In our opinion and according to the information any entity or person on account of or to and explanations given to us, the transactions meet the obligations of its subsidiaries as with related parties are in compliance with defined under the Act. Section 177 and 188 of the Act, where applicable, and the details of the related party transactions
(f) According to the information and have been disclosed in the standalone financial explanations given to us and procedures statements as required by the applicable performed by us, we report that the accounting standards.
(xiv) (a) Based on information and explanations provided to us and our audit procedures, in our opinion, the Company has an internal audit system commensurate with the size and nature of its business.
(b) We have considered the internal audit reports of the Company issued till date for the period under audit.
(xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with its directors or persons connected to its directors and hence, provisions of Section 192 of the Act are not applicable to the Company.
(xvi) (a) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, clause 3(xvi) (a) of the Order is not applicable.
(b) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, clause 3(xvi) (b) of the Order is not applicable.
(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly, clause 3(xvi)(c) of the Order is not applicable.
(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.
(xvii) The Company has not incurred cash losses in the current and in the immediately preceding financial year.

Place: Gurugram Date: 07 May 2024

(xviii) There has been no resignation of the statutory auditors during the year. Accordingly, clause 3(xviii) of the Order is not applicable.
(xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the standalone financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that the Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due.
(xx) (a) In our opinion and according to the information and explanations given to us, there is no unspent amount under sub-section (5) of Section 135 of the Act pursuant to any project other than ongoing projects. Accordingly, clause 3(xx)(a) of the Order is not applicable.
(b) According to the information and explanations given to us, in respect of ongoing projects, the Company has transferred the unspent amount to a Special Account within a period of 30 days from the end of the financial year in compliance with Section 135(6) of the said Act.

For B S R & Co. LLP Chartered Accountants Firm’s Registration No.:101248W/W-100022

Kaushal Kishore Partner Membership No.: 090075 ICAI UDIN:24090075BKGTYN3757

228

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==> picture [58 x 31] intentionally omitted <==

Annexure B to the Independent Auditor’s Report on the standalone financial statements of SRF Limited for the year ended 31 March 2024

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)(g) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

Opinion

Auditor’s Responsibility

We have audited the internal financial controls with reference to financial statements of SRF Limited (“the Company”) as of 31 March 2024 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

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 31 March 2024, based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the “Guidance Note”).

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of 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.

Management’s and Board of Directors’ Responsibilities for Internal Financial Controls

The Company’s Management and the Board of Directors are responsible for establishing and maintaining internal financial controls based on the internal financial controls with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls with reference to financial statements.

Meaning of Internal Financial Controls with Reference to Financial Statements

A company’s internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Generally Accepted Accounting Principles. A company’s internal financial controls with reference to financial statements include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3)

Place: Gurugram Date: 07 May 2024

provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls with Reference to Financial

Statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

For B S R & Co. LLP Chartered Accountants Firm’s Registration No.:101248W/W-100022

Kaushal Kishore Partner Membership No.: 090075 ICAI UDIN:24090075BKGTYN3757

230

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Annual Report [2023-24]

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Standalone Balance Sheet

as at March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

==> picture [443 x 27] intentionally omitted <==

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

Particulars Note No. As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

ASSETS
Non-current assets
Property, plant and equipment	2	10,078.20	7,309.25
Right-of-use assets	37	248.59	258.87
Capital work-in-progress	3	744.79	2,128.95
Other intangible assets	4	111.76	106.08
Financial assets
(i) Investments	5	629.77	92.82
(ii) Loans	6	50.04	291.35
(iii) Other fnancial assets	7	190.48	65.33
Other tax assets (net)	20	206.85	85.57
Other non-current assets	8	114.23	209.72
Total non-current assets		12,374.71	10,547.94
Current assets
Inventories	9	1,901.01	1,848.67
Financial assets
(i) Investments	5	405.58	490.05
(ii) Trade receivables	10	1,538.00	1,436.38
(iii) Cash and cash equivalents	11	361.77	527.25
(iv) Bank balances other than above	12	8.21	8.48
(v) Loans	6	322.05	243.35
(vi) Other fnancial assets	7	201.48	240.64
Other current assets	8	251.83	208.65
Total current assets		4,989.93	5,003.47
TOTAL ASSETS		17,364.64	15,551.41
EQUITY AND LIABILITIES
Equity
Equity share capital	13	297.44	297.44
Other equity	14	10,216.27	8,956.11
Total equity		10,513.71	9,253.55
LIABILITIES
Non-current liabilities
Financial liabilities
(i) Borrowings	15	1,662.06	1,726.53
(ii) Lease liabilities	37	81.75	96.53
(iii) Other fnancial liabilities	19	0.80	159.47
Provisions	16	60.96	51.84
Deferred tax liabilities (net)	17	880.28	749.34
Other non-current liabilities	21	122.75	29.20
Total non-current liabilities		2,808.60	2,812.91

Standalone Balance Sheet (CONTD.)

as at March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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Particulars Note No. As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

Current liabilities
Financial liabilities
(i) Borrowings	15	1,949.45	1,312.73
(ii) Lease liabilities	37	27.51	25.90
(iii) Trade payables	18
(a) Total outstanding dues of micro		84.28	67.79
enterprises and small enterprises
(b) Total outstanding dues of creditors		1,483.53	1,581.38
other than micro enterprises and small
enterprises
(iv) Other fnancial liabilities	19	404.56	382.99
Other current liabilities	21	73.97	96.23
Provisions	16	7.27	6.28
Current tax liabilities(net)	20	11.76	11.65
Total current liabilities		4,042.33	3,484.95
TOTAL LIABILITIES		6,850.93	6,297.86
TOTAL EQUITY AND LIABILITIES		17,364.64	15,551.41
Summary of material accounting policies	1B
See accompanying notes to the standalone	2 to 40
fnancial statements

As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board of Directors Chartered Accountants ICAI Firm registration no. 101248W/W-100022

Kaushal Kishore Ashish Bharat Ram Kartik Bharat Ram Raj Kumar Jain Partner Chairman and Joint Managing Director Director Membership No.: 090075 Managing Director DIN - 00008557 DIN - 01741527 DIN - 00671567 Place : Gurugram Rahul Jain Rajat Lakhanpal Date : May 07, 2024 President & CFO Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 07, 2024

232

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Standalone Statement of Profit and Loss

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

==> picture [442 x 29] intentionally omitted <==

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

Particulars Note No. Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

I	Revenue from operations	22	10,786.67	12,073.84
II	Other income	23	119.42	106.06
III	Total Income(I + II)		10,906.09	12,179.90
IV	Expenses
	Cost of materials consumed	24.1	5,196.28	5,504.52
	Purchases of stock-in-trade	24.2	83.61	109.72
	Changes in inventories of fnished goods, work-in-	24.3	(114.32)	21.91
	progress and stock-in-trade
	Employee benefts expense	25	790.33	684.19
	Finance costs	26	235.60	175.82
	Depreciation and amortisation expense	27	555.85	468.44
	Other expenses	28	2,440.86	2,559.44
	Total Expenses		9,188.21	9,524.04
V	Proft before tax(III - IV)		1,717.88	2,655.86
VI	Tax expense	29
	Current tax		244.67	581.99
	Deferred tax
	MAT credit entitlement		-	(94.13)
	Others		99.18	144.64
	Total tax expense		343.85	632.50
VII	Proft for theyear(V - VI)		1,374.03	2,023.36
VIII	Other comprehensive income
A	Items that will not be reclassifed to proft or loss
	(i)(a) Gain / (loss) on remeasurement of defned beneft obligation	14.2, 33.2	(4.59)	(12.14)
	(i)(b) Income tax on item (i)(a) above	14.2, 30	1.16	4.24
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	127.90	(252.29)
	(i)(b) Income tax on item (i)(a) above	14.3, 30	(32.19)	67.58
	(ii)(a) Cost of Hedging Reserve	14.10	(1.70)	3.81

Standalone Statement of Profit and Loss (CONTD.)

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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Particulars Note No. Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

	(ii)(b)Income tax on item(ii)(a)above	14.10,30	0.43	(0.79)
	Total other comprehensive income / (loss)		91.01	(189.59)
	for theyear, net of taxes(A + B)
IX	Total comprehensive income for the year		1,465.04	1,833.77
	(VII+VIII)
	Basic and Diluted Earningsper equityshare(in`)	36	46.35	68.26

Summary of material accounting policies 1B See accompanying notes to the standalone 2 to 40 financial statements

As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board of Directors Chartered Accountants ICAI Firm registration no. 101248W/W-100022

Kaushal Kishore

Ashish Bharat Ram

Kartik Bharat Ram

Raj Kumar Jain

Chairman and Joint Managing Director Director Managing Director DIN - 00008557 DIN - 01741527 DIN - 00671567

Partner Membership No.: 090075 Place : Gurugram Date : May 07, 2024

Rahul Jain President & CFO

Rajat Lakhanpal

Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 07, 2024

234

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Standalone Statement of Cash Flow

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

==> picture [442 x 31] intentionally omitted <==

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

Particulars Year ended Year ended
March 31, 2024 March 31, 2023
A CASH FLOW FROM OPERATING ACTIVITIES
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	Proft before tax Adjustments for:	1,717.88	2,655.86
	Finance costs	235.60	175.82
	Interest income	(44.95)	(59.90)
	Net gain on sale of property, plant and equipment Net gain on fnancial assets measured at fair value through proft and	(4.77) (22.87)	(6.19) (9.10)
	loss
	Credit impaired assets provided / written of / (written back) Amortisation of grant income	(0.17) (18.77)	0.52 (3.35)
	Depreciation and amortisation expense	555.85	468.44
	Property, plant and equipment and inventory discarded / provided /	11.17	2.98
	(written back)
	Provision / liabilities no longer required written back Net currency exchange fuctuation (gain) / loss Employee share based payment expense	(12.54) (38.62) 8.54	(27.44) (43.37) 8.41
	Stamp duty on purchase of investments	0.13	0.07
	Adjustments for (increase) / decrease in operating assets :-
	Trade receivables	(101.30)	(89.87)
	Inventories	(59.23)	(97.23)
	Loans (current)	(2.28)	(1.59)
	Loans (non-current)	(5.32)	(30.00)
	Other assets (current)	56.55	(101.20)
	Other assets (non-current)	(17.81)	(23.62)
	Adjustments for increase / (decrease) in operating liabilities :-
	Trade payables	(81.84)	307.57
	Provisions	10.11	7.83
	Other liabilities (current)	82.17	121.44
	Cash generated from operations	2,267.53	3,256.08
	Income taxes paid (net of refunds)	(364.69)	(467.98)
	Net cash generated from operating activities	1,902.84	2,788.10
B	CASH FLOW FROM INVESTING ACTIVITIES
	Net sale / (purchases) of current investments	107.34	(164.21)
	Stamp duty on purchase of investments	(0.13)	(0.07)
	Purchase of non-current investments	(555.28)	-
	Sale of non-current investments	4.11	-
	Interest received	47.54	37.21
	Bank balances not considered as cash and cash equivalents	0.07	30.39
	Deposit made with Non Banking Financial Company (NBFC)	(25.00)	-
	Payment for purchase of property, plant and equipment, capital work-	(1,865.39)	(2,373.79)
	in-progress and other intangible assets
	Proceeds from disposal of property, plant and equipment	14.97	15.58
	Loans given to subsidiaries	(365.04)	(278.16)
	Repayment of loans by subsidiaries	562.77	404.89
	Net cash used in investing activities	(2,074.04)	(2,328.16)
C	CASH FLOW FROM FINANCING ACTIVITIES
	Proceeds from issue of shares	-	*
	Proceeds from long term borrowings	814.67	818.42
	Repayment of long term borrowings	(369.70)	(672.25)
	Net proceeds from short term borrowings	86.47	22.69
	Dividends on equity share capital paid	(213.71)	(213.32)
	Payment towards lease liability	(37.11)	(32.47)
	Finance costs paid Net cash generated from / (used in) fnancing activities Net increase / (decrease) in cash and cash equivalents	(274.90) 5.72 (165.48)	(175.40) (252.33) 207.61
	Cash and cash equivalents at the beginning of the year	527.25	319.64
	Cash and cash equivalents at the end of the year (Refer to note 11)	361.77	527.25

Amount in absolute: ` 38,000

Standalone Statement of Cash Flow (CONTD.)

for the year ended March 31, 2024

(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 31.51 crores (Previous year: 28.63 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 April 1, 2023 Cash fow from fnancing activities	Non-cash changes As at March 31, 2024 Upfront fees amortised Exchange fuctuation changes # Finance cost # Interim dividend declared Lease liability recognised Utilisation of securities premium
Equity share capital 297.44 - - - - - - - 297.44 Securities premium 509.56 - - - - - - - 509.56 Non-current borrowings* 2,092.08 444.97 3.35 28.60 - - - - 2,569.00 Current borrowings ^ 947.18 86.47 - 8.86 - - - - 1,042.51 Interest accrued 13.25 (274.90) - - 281.16 - - - 19.51 Lease liability 122.43 (37.11) - - 8.99 - 14.95 - 109.26 Dividend 6.83 (213.71) - - - 213.43 - - 6.55
Total 3,988.77 5.72 3.35 37.46 290.15 213.43 14.95 - 4,553.83

Particulars As at April 1, 2022 Cash fow from fnancing activities	Non-cash changes As at March 31, 2023 Upfront fees amortised Exchange fuctuation changes # Finance cost # Interim dividend declared Lease liability recognised Utilisation of securities premium
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

including current maturities of long term borrowings
^ excluding current maturities of long term borrowings

^^ Amount in absolute: ` 38,000

including amount capitalised

Summary of material accounting policies 1B See accompanying notes to the standalone financial statements 2 to 40

As per our report of even date attached

For B S R & Co. LLP

For and on behalf of the Board of Directors

Chartered Accountants

ICAI Firm registration no. 101248W/W-100022

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Standalone Statement of Changes in Equity

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(a) Equity share capital

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Amount
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Balance at April 1, 2022	297.44
Changes in equityshare capital duringtheyear	*
Balance at March 31, 2023	297.44
Changes in equityshare capital duringtheyear	-
Balance at March 31, 2024	297.44

Amount in absolute: ` 38,000

(b) Other Equity

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Particulars Reserves and Surplus [#] Items of other Total
comprehensive income [#] equity
Capital General Capital Securities Debenture Employee Retained Effective Equity Cost of
reserve reserve redemption premium redemption share earnings portion of instrument hedging
reserve reserve based cash flow through other reserve
payment hedge comprehensive
reserve income
Balance at April 1, 2022 219.19 648.54 10.48 509.56 62.50 3.22 5,841.95 34.49 (4.22) 1.65 7,327.36
Profit for the year - - - - - - 2,023.36 - - - 2,023.36
Other comprehensive income for the year, net - - - - - - (7.90) (184.71) - 3.02 (189.59)
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Balance at April 1, 2022 Proft for the year Other comprehensive income for the year, net	219.19 - -	648.54 - -	10.48 - -	509.56 - -	62.50 - -	3.22 - -	5,841.95 2,023.36 (7.90)	34.49 - (184.71)	(4.22) - -	1.65 - 3.02	7,327.36 2,023.36 (189.59)
of income tax
Total comprehensive income for the year	-	-	-	-	-	-	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 Proft for the year Other comprehensive income for the year, net	219.19 - -	711.04 - -	10.48 - -	509.56 - -	- - -	11.63 - -	7,643.98 1,374.03 (3.43)	(150.22) - 95.71	(4.22) - -	4.67 - (1.27)	8,956.11 1,374.03 91.01
of income tax
Total comprehensive income for the year	-	-	-	-	-	-	1,370.60	95.71	-	(1.27)	1,465.04
Dividend ^	-	-	-	-	-	-	(213.43)	-	-	-	(213.43)
Employee share based payment expense	-	-	-	-	-	8.55	-	-	-	-	8.55
Balance at March 31, 2024	219.19	711.04	10.48	509.56	-	20.18	8,801.15	(54.51)	(4.22)	3.40	10,216.27
# Refer note 14
^ Refer note 13.1
Summary of material accounting		policies					1B
See accompanying notes to	the standalone		fnancial statements				2 to 40

As per our report of even date attached

For B S R & Co. LLP

For and on behalf of the Board of Directors

Chartered Accountants

ICAI Firm registration no. 101248W/W-100022

Kaushal Kishore

Ashish Bharat Ram Kartik Bharat Ram Raj Kumar Jain Chairman and Joint Managing Director Director Managing Director DIN - 00008557 DIN - 01741527 DIN - 00671567

Partner Membership No.: 090075

Place : Gurugram Date : May 07, 2024

Rahul Jain President & CFO

Rajat Lakhanpal Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 07, 2024

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(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, MATERIAL 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.

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 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.

The principal activities of the Company are manufacturing, purchase and sale of technical textiles, chemicals, packaging films and other polymers.

The standalone financial statements were authorised for issue in accordance with a resolution of the directors on May 7, 2024.

3 Property, plant and equipment (PPE)

B MATERIAL ACCOUNTING POLICIES

1 Basis of Preparation

These standalone financial statements are prepared in accordance with Indian Accounting Standards (Ind AS), under the Companies (Indian Accounting Standards) Rules, 2015 notified under section 133 of the Companies Act 2013 (“the Act”) as amended thereafter and other relevant provisions of the Act.

Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation and accumulated impairment losses, if any.

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:

All items of property, plant and equipment were measured at fair value at the date of transition to Ind AS. The Company had opted such fair valuation as deemed cost at the transition date i.e. April 1, 2015.

Derivative financial instruments

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

Cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring the site on which it is located. The cost of a self-constructed item of property, plant and equipment comprises the cost of materials and direct labour, any other costs directly attributable to bringing the item to working condition for its intended use, and estimated costs of dismantling and removing the item and restoring the site on which it is located.

intended use are carried at cost of comprising of cost of asset, direct cost of labour and material, related incidental expenses and attributable interest.

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.

4 Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.

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:

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company and the cost of the item can be measured reliably.

Excess of net sale proceeds of items produced during the test run 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.

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.

Management’s estimate of useful life

Roads	40-50 years
Buildings (including	5-60 years
temporary structures)
Plant and equipment Furniture and fxtures Ofce equipment	2-40 years 3-20 years 3-20 years
Vehicles	4-5years

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

Freehold land is not depreciated.

Notes to the Standalone Financial Statements for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

Depreciation is calculated on a pro rata basis.

indication that the intangible asset may be impaired. The useful lives considered are as follows:

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.

Trademarks / Brand Technical Knowhow	10-30 years 30-40 years
Software	3-5 years
Other intangibles	2.5-8years

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.

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.

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.

5 Other 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.

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.

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates and the cost of the asset can be measured reliably

Intangible assets with finite lives are amortised using the straight line method over the useful economic life and assessed for impairment whenever there is an

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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.

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.

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.

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.

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.

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.

7 Impairment of tangible and intangible assets other than goodwill

amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use.

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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.

8 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 assesses whether:

Company as lessee

The Company accounts for assets taken under lease arrangements in the following manner:

The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right of use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentive received.

the contract involves the use of an identified asset – this may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;
the Company has the right to obtain substantially all of the economic benefits from use of the asset through the period of use; and
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 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 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

the Company has the right to operate the asset; or
the Company designed the asset in a way that predetermines how and for what purpose it will be used.

The Company reassesses whether a contract is, or contains, a lease only if the terms and conditions of the contract are changed.

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.

with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

obtained or re-financed on or after April 1, 2016 are treated in accordance with Ind AS 21/ Ind AS 109. Refer point (i) above.

10 Foreign Currencies

Transactions in foreign currencies are recorded on initial recognition at the exchange rate prevailing on the date of

the transaction.

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

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-of use assets and lease liabilities for short term leases that have a lease term of 12 months or less and leases of low value assets. The Company recognises the lease payments associated with these leases as an expense on a straight- line basis over the lease term.

9 Borrowing costs

Borrowing costs consist of interest and other costs that an entity incurs in connection

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 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.

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.

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.

(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:

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.

(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

11 Inventories
Inventories are valued at cost or net realisable value, whichever is lower. The basis of determining the cost for various categories of inventories are as follows:
(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.
(b) Traded goods, Stock in progress and finished goods- Direct cost plus appropriate share of overheads based on normal operating capacity.
(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-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

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

materials indicates that the cost of the finished products shall exceed the net realisable value.

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.

The comparison of cost and net realisable value is made on an item-by-Item basis.

12 Provisions, contingent liabilities and contingent assets Provisions

The Company recognises a provision when there is a present obligation (legal or constructive) as a result of past events and it is more likely than not that an outflow of resources would be required to settle the obligation and a reliable estimate can be made.

Contingent assets

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs.

When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain.

13 Revenue recognition Sale of goods

Revenue from sale of products is recognised upon transfer of control of products to customers at the time of shipment to or receipt of goods by the customers.

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, 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

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

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

performance obligations. Contract assets

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.

are recognised when there is excess of revenue earned over billings on contracts. Contract assets are classified as unbilled revenue (only when 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.

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.

14 Taxation

Income tax expense represents the sum of current tax and deferred tax.

a) Current tax

Current income tax assets and liabilities are measured at the 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.

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.

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.

Deferred tax assets/liabilities are not recognised for below mentioned temporary differences:

b) Deferred tax

Deferred tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying amounts at the reporting date.

(i) At the time of initial recognition of goodwill;
(ii) Initial recognition of assets or liabilities (other than in a business combination) at the time of the transaction, (a) affects neither the accounting profit nor taxable profit or loss and (b) does not give rise to equal taxable and deductible temporary differences

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.

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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.

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.

Government grants related to assets are presented in the balance sheet at fair value as deferred income and are recognised in profit or loss on a systematic basis over the expected useful life of the related assets.

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 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.

The benefit accrued under the above grants is included under the head “Revenue from Operations” under ‘Export and other incentives’.

16 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 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.

15 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.

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,

Defined contribution plans

Provident fund administered through Regional Provident Fund Commissioner, Superannuation Fund and Employees’ State Insurance Corporation are defined contribution schemes. Contributions to such

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

schemes are charged to the statement of profit and loss in the year when employees have rendered services entitling them to contributions. The Company has no obligation, other than the contribution payable to such schemes.

Share based payments

Equity settled share based payments to employees under SRF Long Term Share Based Incentive Plan (SRF LTIP) are measured at the fair value (which is the 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.

Defined benefit plans

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.

17 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.

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.

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.

18 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

Other long-term employee benefits

19 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 long-term 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

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Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument.

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.

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.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in other income in the statement of profit and loss. The losses arising from impairment are recognised in the standalone statement of profit and loss. This category generally applies to trade and other receivables.

A) Financial Assets

Classification and Subsequent measurement

For purposes of subsequent measurement, financial assets of the Company are classified in three categories:

A debt investment is measured at FVTOCI if it meets both of the following conditions and is not designated at FVTPL:

a) At amortised cost
b) At fair value through profit and loss (FVTPL)
it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
c) At fair value through other comprehensive income (FVTOCI)
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

Financial assets not classified as measured at amortised cost or FVTOCI 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.

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 Instruments

All equity instruments in the scope of Ind AS 109 are measured at fair value.

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

Equity instruments which are held for trading are measured at fair value through profit and loss.

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.

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.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company’s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

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.

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.

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.

Derecognition

A financial asset (or, where applicable, a part of a financial asset) is primarily derecognised (i.e. removed from the balance sheet) when:

When the Company has retained substantially all the risks and rewards of ownership of the transferred asset, the Company continues to recognise the transferred asset in its entirety and recognises a financial liability for the consideration received.

a) The rights to receive cash flows from the asset have expired, or
b) The Company has transferred its rights to receive cash flows from the asset

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

Evidence that a financial asset is credit-impaired includes the following observable data:

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 and contract assets 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 and contract assets, 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.

significant financial difficulty of the debtor;
a breach of contract such as a default; or
it is probable that the debtor will enter bankruptcy or other financial reorganisation

Presentation of allowance for ECL in the balance sheet

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.

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 forward-looking information. The Company 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.

The Company’s financial liabilities includes borrowings, trade and other payables including financial guarantee contracts and derivative financial instruments.

Credit Impaired Financial Assets

At each reporting date, the Company assesses whether financial assets carried at amortised cost and debt securities at FVTOCI 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.

Subsequent measurement

Borrowings

Borrowings are subsequently measured at amortised cost. Any differences between the proceeds (net of transaction costs) and the redemption/repayment amount

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

is recognised in profit and loss over the period of the borrowings using the effective interest rate method.

Equity instrument

Equity instruments are any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

Trade and other payables

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.

Trade and other payables represent liabilities for goods and services provided to the Company prior to the end of the financial year and which are unpaid.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

20 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 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

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.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

profit and loss when the hedge item affects profit or loss.

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:

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.
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.
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
Hedges that meet the strict criteria for hedge accounting are accounted for, as described below:
changes in the timing of the hedged transactions

Fair value hedges

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.

The change in the fair value of a hedging instrument is recognised in the statement of profit and loss. The change in the fair value of the hedged item attributable to the risk hedged is recorded as part of the carrying value of the hedged item and is also recognised in the statement of profit and loss.

If the hedged item is derecognised, the unamortised fair value is recognised immediately in profit or loss. When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain or loss recognised in statement of profit and loss.

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

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

or loss, such as when the hedged financial income or financial expense is recognised or when a forecast transaction occurs.

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.

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.

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.

21 Fair value measurement

The Company measures some of its financial instruments at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

The Company also designates non derivative financial liabilities, such as foreign currency borrowings from banks, as hedging instruments for the hedge of foreign currency risk associated with highly probable forecasted transactions and, accordingly, applies cash flow hedge accounting for such relationships.

a) In the principal market for the asset
or liability, or
b) In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is

Amounts recognised as other comprehensive income are transferred to profit or loss when the hedged transaction affects profit

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

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:

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.

22 Segment Reporting

Based on “Management Approach” as defined in Ind AS 108 -Operating Segments, the Chief Operating Decision Maker evaluates the Company’s performance and allocates the resources based on an analysis of various performance indicators by business segments. Inter segment sales and transfers are reflected at market prices.

Unallocable items includes general corporate income and expense items which are not allocated to any business segment.

a) Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

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.

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).

23 Dividend

c) Level 3 — Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The Company recognises a liability to make cash distributions to equity holders when the distribution is authorised and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

24 Non-current assets held for sale and discontinued operations

25 Interest and dividend income

Interest income is recognised when it is probable that the economic benefits will flow to the Company using the effective interest rate 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.

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.

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).

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.

26 Material Accounting Policy Information The Company adopted Disclosure of Accounting Policies (Amendments to Ind AS 1) from 1 April 2023. Although the amendments did not result in any changes in the accounting policies themselves, they impacted the accounting policy information disclosed in the financial statements.

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,

The amendments require the disclosure of ‘material’ rather than ‘significant’ accounting policies. The amendments also provide guidance on the application of materiality to disclosure of accounting policies, assisting entities to provide useful, entity-specific accounting policy information that users need to understand other information in the financial statements.

b) Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations, or
c) Is a subsidiary acquired exclusively with a view to resale.

Discontinued operations are excluded from the results of continuing operations and are presented separately in the statement of profit and loss.

27 Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies

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Notes to the Standalone Financial Statements for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Reverse factoring: presentation of amounts related to supply chain financing arrangements in the balance sheet and in the statement of cash flows - Note 18
Assessment of Uncertain Tax Treatements - Note 1.B.14

C SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

Assessment of classification and recognition of government grants - Note 1.B.15

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) Judgements

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

Notes to the Standalone Financial Statements for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

2 PROPERTY, PLANT AND EQUIPMENT

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

Particulars Freehold Roads Buildings Plant and Furniture Office Vehicles Total
land equipment and fixtures equipment
Cost
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Cost
Balance at April 1, 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
Additions / adjustments Disposals / adjustments	6.25 (2.01)	32.96 (0.99)	140.26 (1.99)	3,047.89 (19.73)	8.00 (0.62)	37.43 (3.63)	26.91 (14.15)	3,299.70 (43.12)
Balance at March 31, 2024	326.11	121.16	1,040.82	11,248.09	39.10	117.34	80.67	12,973.29
Accumulated depreciation
Balance at April 1, 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
Depreciation expenses	-	2.32	27.33	460.59	3.13	10.19	12.43	515.99
Disposals / adjustments	-	(0.21)	(0.23)	(12.76)	(0.54)	(3.16)	(11.46)	(28.36)
Balance at March 31, 2024	-	13.55	178.60	2,599.95	17.29	53.78	31.92	2,895.09
Net block
Balance at March 31, 2023	321.87	77.75	751.05	6,067.81	17.02	36.79	36.96	7,309.25
Balance at March 31, 2024	326.11	107.61	862.22	8,648.14	21.81	63.56	48.75	10,078.20

Notes:

(i) Borrowing cost capitalised during the year (net of interest income) is 59.52 crores (Previous year: 44.98 crores) with a capitalisation rate ranging from 3.09% to 6.71% (Previous year: 0.49% to 3.82%).
(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 it has an acceptable title, and the said dispute is not tenable.
(iii) Capital expenditure incurred during the year includes 20.46 crores (Previous year: 7.22 crores) on account of research and development. Depreciation for the year includes depreciation of 14.56 crores (previous year: 14.19 crores), on assets deployed in research and development as per note 40 (a) below.
(iv) Refer to note 15.1 for information on PPE pledged as security by the Company. Additionally, non funded working capital facilities drawn from banks amounting to Nil (Previous year: 19.66 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 40(c) for additions / adjustments on account of exchange differences during the year.
(vi) Certain items of property, plant and equipment with written down value of ` 1.34 crores have been charged to the standalone statement of profit and loss on account of damage due to cyclone / flood in the state of Tamil Nadu. Reinstatement of the damaged assets is in progress. (Refer to note 40(g)).
(vii) Capital Work in Progress

Particulars	As at March 31, 2024	As at March 31, 2023
Opening Balance	2,128.95	1,617.04
Additions during the year	1,915.54	2,517.37
Less: Amounts capitalised during the year*	3,299.70	2,005.46
Closing Balance	744.79	2,128.95

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.

258

259

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

3 CAPITAL WORK-IN-PROGRESS (CWIP)

(i) Ageing of capital work-in-progress :

Projects in progress As at March 31, 2024 As at March 31,2023	Amount in CWIP for aperiod of
	Less than 1year 1 - 2 years 2 - 3 years More than 3years Total
	616.57 118.97 5.14 4.11 744.79 1,859.52 218.01 43.92 7.50 2,128.95

(ii) CWIP completion schedule for capital work-in-progress whose completion is overdue or has exceeded its cost compared to its original plan :

Projects in progress Backward Integration plant for fuorocarbon refrigerant gases Project for electrical Line Connection Others *	As at March 31, 2024
	To be completed in
	Less than 1year 1 - 2 years 2 - 3 years More than 3years
	341.19 - - - 36.00 76.17 - - -
	453.36 - - -

	453.36 - - -
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 *	As at March 31, 2023
	To be completed in
	Less than 1year 1 - 2 years 2 - 3 years More than 3years
	453.03 - - - 108.39 - - - 223.32 - - - 115.22 - - - 83.97 - - - 110.03 5.40 - -
	1,093.96 5.40 - -

Comprise projects not considered material at an individual level.

Also refer note no. 2 (vii)

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

4 OTHER INTANGIBLE ASSETS

	Particulars	Trade Marks/ Brands	Technical Knowhow	Software	Others	Total
	Cost
	Balance at April 1, 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
	Additions / adjustments	-	5.38	8.45	-	13.83
	Disposals	-	-	(2.37)	-	(2.37)
	Balance at March 31, 2024	73.25	60.57	41.70	19.39	194.91
	Accumulated amortisation
	Balance at April 1, 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
	Amortisation expenses	2.45	1.76	3.89	0.05	8.15
	Disposals	-	-	(2.37)	-	(2.37)
	Balance at March 31, 2024	22.28	12.81	29.36	18.70	83.15
	Net Block
	Balance at March 31,2023	53.42	44.14	7.78	0.74	106.08
	Balance at March 31, 2024	50.97	47.76	12.34	0.69	111.76
INVESTMENTS
				As at March 31, 2024 As at March 31, 2023
	Non-current
	Investment in subsidiary companies (at cost)				508.66	88.66
	Investment designated at fair value through other
	comprehensive income
	(i) Investment in equity instruments				0.05	4.16
	Investments at amortised cost
	(i) Investment in equity instruments				2.50	-
	(ii) Investment in optionally convertible debentures				2.56	-
	(iii) Investment in bonds				50.11	-
	Investment mandatory at fair value through proft and loss
	(i)Investment in bonds				65.89	-
					629.77	92.82
	Aggregate book value of unquoted investments				513.77	92.82
	Aggregate amount of impairment	in value of investments			4.34	4.34
	Aggregate book value of quoted investments				116.00	-
	Aggregate market value of quoted investments				116.18	-

5 INVESTMENTS

260

261

Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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As at As at
March 31, 2024 March 31, 2023
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Current
Investment mandatory at fair value through proft and loss
(i) Investment in mutual funds	321.14	353.73
(ii)Investment in bonds	84.44	136.32
	405.58	490.05
Aggregate book value and market value of quoted investments	84.44	136.32
Aggregate book value and market value of unquoted investments	321.14	353.73

A Non-current investments

5.1 Investment in subsidiaries (at cost)

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As at March 31, 2024 As at March 31, 2023
Number Amount Number Amount
----- End of picture text -----

Unquoted investments (Non-current)
Equity shares of`10 each fully paid up of	4,000,000	4.00	4,000,000	4.00
SRF Holiday Home Limited (A wholly owned
subsidiary)
Equity shares of Euro 100 each fully paid up of	128,920	79.60	128,920	79.60
SRF Global BV (A wholly owned subsidiary)
Equity shares of`10 each fully paid up of SRF	425,000,000	425.00	5,000,000	5.00
Altech Limited (A wholly owned subsidiary)
Contribution in SRF Employees Welfare Trust	-	0.06	-	0.06
(Controlled trust)
		508.66		88.66

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

5.3 Investments at amortised cost

(i) Investment in equity instruments*

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As at March 31, 2024 As at March 31, 2023
Number Amount Number Amount
----- End of picture text -----

Unquoted investments
Equity shares of`10 each fully paid up of	600,000	0.16	-	-
Watsun Infrabuild Private Limited #
Equity shares of`10 each fully paid up of	5,515,661	1.44	-	-
Dalavaipuram Renewables Private Limited #
Equity shares of`10 each fully paid up of	3,437,917	0.90	-	-
Continuum MP Windfarm Development Private
Limited #
		2.50		-

Based on terms of the arrangement investments in these parties have been classified as debt instruments and measured at amortised cost

Measured at fair value on initial transaction date

(ii) Investment in optionally convertible debentures

	As at March 31, 2024 As at March 31, 2023
	Number Amount Number Amount
Unquoted investments 0% Optionally Convertible Debentures of`10 each fully paid up of Continuum MP Windfarm Development Private Limited #	9,780,283 2.56 - -
	2.56 -

Measured at fair value on initial transaction date

5.2 Investment designated at fair value through other comprehensive income

(i) Investments in equity instruments

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As at March 31, 2024 As at March 31, 2023
Number Amount Number Amount
----- End of picture text -----

Unquoted investments
Equity shares of`10 each fully paid up of	4,221,535	4.22	4,221,535	4.22
Malanpur Captive Power Limited
Less: impairment in value of investments		(4.22)		(4.22)
Equity shares of`10 each fully paid of Vaayu	50,000	0.05	50,000	0.05
Renewable Energy (Tapti) Private Limited
Equity shares of`10 each fully paid of	-	-	1,354,000	4.11
Suryadev Alloys & Power Private Limited
Equity shares of`10 each fully paid up of	670,000	0.12	670,000	0.12
Sanghi Spinners India Limited
Less: impairment in value of investment	-	(0.12)	-	(0.12)
		0.05		4.16

(iii) Investment in bonds

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As at March 31, 2024 As at March 31, 2023
Number Amount Number Amount
----- End of picture text -----

Quoted investments
8.40% HDB Financial Services Limited 2033 of	3,500	35.07	-	-
`100,000 each
8.60% Cholamandalam Investment and	150,000	15.04	-	-
Finance CompanyLimited 2029 of`1,000 each
		50.11		-

263

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

5.4 Investment mandatory at fair value through profit and loss

(i) Investment in bonds

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

As at March 31, 2024 As at March 31, 2023
Number Amount Number Amount
----- End of picture text -----

Quoted investments
8.34% State Bank of India Perpetual Bonds of	46	46.83	-	-
`10,000,000 each
8.55% Punjab National Bank Perpetual Bonds	19	19.06	-	-
of`10,000,000 each
		65.89		-

B Current investments

5.5 Investment mandatory at fair value through profit and loss

(i) Investment in mutual funds

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

As at March 31, 2024 As at March 31, 2023
Number Amount Number Amount
----- End of picture text -----

Unquoted investments
ICICI Prudential P1543 Floating Interest Fund-	3,612,365	138.95	3,612,365	128.63
Growth Plan
Axis Liquid Fund- Regular Growth Plan	457,111	121.79	302,077	75.04
Aditya Birla Sun Life liquid Fund - Regular	-	-	2,085,916	75.05
Growth Plan
Kotak Overnight Fund - Regular Growth Plan	-	-	629,688	75.01
UTI Liquid Fund - Regular Growth Plan	25,664	10.08	-	-
HDFC Liquid Fund - Regular Growth Plan	107,121	50.32	-	-
		321.14		353.73

(ii) Investment in bonds

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

As at March 31, 2024 As at March 31, 2023
Number Amount Number Amount
----- End of picture text -----

Quoted investments
9.56% State Bank of India Perpetual Bonds	-	-	500	50.36
2023 of`10,00,000 each
8.99% Bank of Baroda Perpetual Bonds 2024	550	54.82	550	55.60
of`10,00,000 each
8.50% State Bank of India Perpetual Bonds	248	24.65	248	25.27
2024 of`10,00,000 each
8.50% State Bank of India Perpetual Bonds	50	4.97	50	5.09
2025 of`10,00,000 each
		84.44		136.32

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

6 LOANS

(unsecured and considered good, unless otherwise stated)

	As at March 31, 2024	As at March 31, 2023
Non- current
Loans to subsidiaries (Refer note 40(d)(iii))	-	246.63
Loans to ofcers *	29.61	28.54
Loans to employees	20.43	16.18
	50.04	291.35
Current
Loans to subsidiaries (Refer note 40(d)(iii))	310.15	233.73
Loans to ofcers *	1.08	1.02
Loans to employees	10.82	8.60
Others (other than related parties)
Credit impaired	2.74	2.74
Less : Provision for credit impaired loans	(2.74)	(2.74)
	322.05	243.35
* Ofcers as defned under sec 2 (59) of the Companies Act 2013
OTHER FINANCIAL ASSETS
(unsecured and considered good, unless otherwise stated)
	As at March 31, 2024	As at March 31, 2023
Non-Current
Derivatives carried at fair value through other comprehensive
income
- Forward exchange contracts used for hedging	27.74	-
Other fnancial assets carried at amortised cost
- Government grants recoverable *	110.01	15.86
- Deposit accounts with maturity beyond twelve months	0.20	-
- Security deposits
Related parties (Refer note 32)	4.48	3.52
Other than relatedparties	48.05	45.95
	190.48	65.33

7 OTHER FINANCIAL ASSETS

264

265

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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

As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

Current	Current
Derivatives carried at fair value through proft and loss
-	Forward exchange contracts used for hedging	0.25	-
Derivatives carried at fair value through other comprehensive
income
-	Forward exchange contracts used for hedging	20.29	-
-	Interest rate swaps used for hedging	-	0.89
Other fnancial assets carried at amortised cost
-	Government grants and duty rebate recoverable *	104.09	208.18
-	Claims recoverable
	Insurance claim recoverable	27.66	3.60
	Others	9.42	12.56
-	Deposit with Non Banking Financial Company (NBFC)	25.00	-
-	Security deposits
	Other than related parties	1.08	1.24
-	Interest receivable from related parties	5.69	7.66
-	Others	8.00	6.51
		201.48	240.64

Also refer footnotes to note 21

8 OTHER ASSETS

(unsecured and considered good, unless otherwise stated)

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As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

Non-Current
Capital advances	58.32	183.02
Prepaid expenses	17.09	0.59
Goods and services tax and other taxes/duties paid under protest	38.50	25.79
Others	0.32	0.32
	114.23	209.72
Current
Prepaid expenses	26.39	22.02
Goods and services tax recoverable	94.95	53.33
Export incentives recoverable	19.56	8.71
Deposits with customs and excise authorities	19.01	17.12
Advance to suppliers	75.50	105.66
Others	16.42	1.81
	251.83	208.65

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

9 INVENTORIES

(Valued at lower of cost and net realisable value)

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As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

Raw material (including packing material)	841.22	893.08
Stock in progress	233.47	198.74
Finished goods	456.53	391.52
Stores and spares (including fuel)	362.44	349.58
Tradedgoods	7.35	15.75
	1,901.01	1,848.67
Goods-in-transit included above :
Raw material (including packing material)	256.40	204.43
Finished goods	52.72	52.53
Stores and spares (including fuel)	2.02	2.66
Tradedgoods	3.74	2.46
	314.88	262.08

Notes

(i) The cost of inventories recognised as an expense includes 19.46 crores (Previous year: 5.46 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.11
(iv) Inventories amounting to ` 37.50 crores have been charged to the standalone statement of profit and loss on account of damage due to cyclone / flood in the state of Tamil Nadu (Refer to note 40(g)).

10 TRADE RECEIVABLES

	As at March 31, 2024	As at March 31, 2023
Unsecured, considered good	1,538.00	1,436.38
Unsecured, credit impaired	1.79	2.64
Less: Loss allowance	(1.79)	(2.64)
	1,538.00	1,436.38

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.

266

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(ii) Ageing of receivables :

Outstanding for following periods from due date of payment Not due Less than 6 months 6 months - 1 year 1 - 2 years 2 - 3 years More than 3years Outstanding for following periods from due date of payment Not due Less than 6 months 6 months - 1 year 1 - 2 years 2 - 3 years More than 3years	As at March 31, 2024
	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
	1,384.42 - - - - - 1,384.42 153.58 - - - - - 153.58 - 0.03 - - - - 0.03 - 0.18 - - - - 0.18 - 0.06 - - - - 0.06 - 1.52 - - - - 1.52
	1,538.00 1.79 - - - - 1,539.79

	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
	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

(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, 2024 are of 790.27 crores (Previous year: 1,020.76 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, 2024, the carrying amount of the receivable from the Company’s most significant customer was 124.92 crores (Previous year: 118.98 crores)

(v) Refer Note 15.1 for information on trade receivables pledged as security by the Company.

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

11 CASH AND CASH EQUIVALENTS

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As at As at
March 31, 2024 March 31, 2023
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Balances with banks
Current accounts	163.89	122.35
Exchange earners foreign currency (EEFC) accounts	34.11	34.19
Deposit accounts with original maturity of three months or less*	163.14	370.00
Cash on hand	0.63	0.71
	361.77	527.25

Refer note 15

12 BANK BALANCES OTHER THAN ABOVE

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As at As at
March 31, 2024 March 31, 2023
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Earmarked balances
- Margin money	1.44	1.44
- Unclaimed dividend accounts	6.55	6.83
Other deposit accounts
- Deposit accounts with original maturity beyond three	0.22	0.21
months upto twelve months
	8.21	8.48

13 SHARE CAPITAL

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As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

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 `100 each 1,200,000 (Previous Year - 1,200,000) Cumulative Preference	10.00 6.00	10.00 6.00
shares of`50 each
	336.00	336.00
Issued share capital: 300,481,580 (Previous Year - 300,481,580 ) Equity Shares of	300.48	300.48
`10 each
Subscribed capital:
296,424,825 (Previous Year - 296,424,825) 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

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

13.1 Fully paid equity shares

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

Number of shares Amount
----- End of picture text -----

Balance at April 1, 2022	296,421,025	296.42
Add : Movement during the year (also refer note 34 on	3,800	^
"Employee Share Based Payments")
Balance at March 31, 2023	296,424,825	296.42
Add : Movement duringtheyear	-	-
Balance at March 31, 2024	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 year ended March 31, 2022 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).

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, 2024, 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 3.60 per share and second interim dividend of 3.60 per share aggregating 213.43 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, 2024
KAMA Holdings Limited, the Holding Company 148,845,000
As at March 31, 2023
KAMA Holdings Limited,the HoldingCompany 149,645,000

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(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 % holding in that % change during
paid equity shares class of shares the year
----- End of picture text -----

As	at March 31, 2024
1.	Arun Bharat Ram	87,500	0.03%	(36.36)%
2.	Ashish Bharat Ram	25,000	0.01%	100.00%
3.	Kartik Bharat Ram	25,000	0.01%	100.00%
4.	KAMA Holdings Limited	148,845,000	50.21%	(0.53)%
As	at March 31, 2023
1.	Arun Bharat Ram	137,500	0.05%	-
2.	KAMA Holdings Limited	149,645,000	50.48%	(0.40)%

13.4 Details of equity shares held by each shareholder holding more than 5% shares:

	As at March 31, 2024 As at March 31, 2023
Class of shares / Name of shareholder	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 Holdings Limited	148,845,000 50.21% 149,645,000 50.48%

14 OTHER EQUITY

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As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

General reserve	711.04	711.04
Retained earnings Cash fow hedging reserve Capital redemption reserve Capital reserve	8,801.15 (54.51) 10.48 219.19	7,643.98 (150.22) 10.48 219.19
Debenture redemption reserve	-	-
Employee share based payment reserve	20.18	11.63
Reserve for equity instruments through other comprehensive	(4.22)	(4.22)
income
Securities premium	509.56	509.56
Cost of hedgingreserve	3.40	4.67
	10,216.27	8,956.11

270

271

Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

14.1 General reserve

	As at March 31, 2024	As at March 31, 2023
Balance at beginning of year	711.04	648.54
Increase/ (decrease)duringtheyear	-	62.50
Balance at end ofyear	711.04	711.04

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.

14.2 Retained earnings

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

As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

Balance at beginning of year	7,643.98	5,841.95
Proft for the year	1,374.03	2,023.36
Other comprehensive income arising from remeasurement of	(3.43)	(7.90)
defned beneft obligation * (Refer note 33.2 (iv))
Payment of dividend on equityshares	(213.43)	(213.43)
Balance at end ofyear	8,801.15	7,643.98

The amount that can be distributed as dividend by the Company to its equity shareholders is determined based on the financial position of the Company and also considering the requirements of the Companies Act, 2013.

net of income tax of 1.16 crores (Previous year: 4.24 crore)

14.3 Cash flow hedging reserve

(Refer note 38.3.1 (C))

	As at March 31, 2024	As at March 31, 2023
Balance at beginning of year	(150.22)	34.49
Recognised / (released) during the year	127.90	(252.29)
Income tax related to above	(32.19)	67.58
Net balance at end ofyear	(54.51)	(150.22)

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.

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

14.4 Capital redemption reserve

	As at March 31, 2024	As at March 31, 2023
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.

14.5 Capital reserve

	As at March 31, 2024	As at March 31, 2023
Balance at beginning of year	219.19	219.19
Increase/ (decrease)duringtheyear	-	-
Balance at end ofyear	219.19	219.19

Capital reserve represents amounts received pursuant to Montreal Protocol Phaseout Programme of refrigerant gases.

14.6 Debenture redemption reserve

	As at March 31, 2024	As at March 31, 2023
Balance at beginning of year	-	62.50
Transfer from retained earnings	-	-
Transfer togeneral reserve	-	(62.50)
Balance at end ofyear	-	-

The Company had issued non-convertible debentures which had been repaid during the previous year. The Company had created debenture redemption reserve out of the profits of the Company available for payment of dividend and the same had been transferred to General Reserve during the previous year.

14.7 Employee share based payment reserve

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

As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

	Balance at beginning of year Increase / (decrease) during the year Released on vesting of shares issued under employee share purchase scheme Balance at end ofyear	11.63 8.55 - 20.18	3.22 8.41 - 11.63

273

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Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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.

14.8 Reserve for equity instruments through other comprehensive income

	As at March 31, 2024	As at March 31, 2023
Balance at beginning of year	(4.22)	(4.22)
Net fair value gain on investment in equity instruments 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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----- Start of picture text -----

As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

Balance at beginning of year	509.56	509.56
Recognised on issue of equity shares	-	-
Recognised on vesting of shares issued under employee share	-	-
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, 2024	As at March 31, 2023
Balance at beginning of year	4.67	1.65
Recognised / (released) during the year	(1.70)	3.81
Income tax related to above	0.43	(0.79)
Balance at end ofyear	3.40	4.67

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

15 BORROWINGS

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

As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

Non-current
Secured
Term Loans from banks* ^ (Refer note 15.1.1)	1,882.68	1,982.57
Term Loans from others* (Refer note 15.1.2)	686.32	109.51
Less: Current maturities of long-term borrowings*
Term loan from banks	(863.88)	(321.83)
Term loan from others	(43.06)	(43.72)
	1,662.06	1,726.53

Above amount of borrowings are net of upfront fees paid 9.56 crores (Previous year: 6.29 crores).

^ Out of a term loan of 625.37 crores obtained during the current year, unutilised balance of 50.00 crores as on March 31, 2024 has been temporarily invested in fixed deposit with a bank. (Previous Year: Out of a term loan of 616.57 crores obtained towards the end of the year, unutilised balance of 370.00 crores as on March 31, 2023 was temporarily invested in fixed deposit with a bank).

Current
Secured
Loans repayable on demand from banks (Refer note 15.1.3)	588.18	381.97
Current maturities of long-term borrowings	906.94	365.55
	1,495.12	747.52
Unsecured
Loans repayable on demand from banks	254.33	565.21
Commercialpapers from banks and others #	200.00	-
	454.33	565.21
	1,949.45	1,312.73

The maximum amount due during the year is `200.00 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.

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.

274

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Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

15.1 Details of security of the secured loans:

Details of Loan	Details of Loan	As at March 31, 2024#	As at March 31, 2023#		Security
1	Term loan from	1,886.41	1,988.70	Moveable property
	Banks *

(a)(i) Out of the loans in 1, loans aggregating to 1,686.41 crores (Previous Year – 1,988.70 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 in 1, loans aggregating to ` 200.00 crores (Previous year - Nil) are secured by hypothecation of Company’s all plant and machinery which consists of movable properties, both present and future, situated at Manali, Viralimalai and Gummidipoondi in the State of Tamil Nadu, Jhiwana in the State of Rajasthan, Malanpur, Special Economic Zone - Indore and Pithampur in the State of Madhya Pradesh, Kashipur in the State of Uttarakhand and Dahej in the State of Gujarat.

Immoveable property

(b)(i) Out of the loans in 1(a)(i), loans aggregating to 95.60 Crores (Previous Year – 188.83 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, Kashipur in the State of Uttarakhand and Jhiwana in the State of Rajasthan.

(b)(ii) Out of the loans in 1(a)(i), loans aggregating to Nil (Previous Year – ` 70.86 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.

2 Term loans from 692.15 109.67 a)(i) Out of the loans in 2, loans aggregating to ` 625.38 crores others* (Previous Year – Nil) 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, Special Economic Zone - Indore and at Plot no. 675 at Industrial Area Pithampur in the State of Madhya Pradesh, 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 loans in 2, loan of 66.77 crores (Previous Year – 109.67 crores) is secured by hypothecation and mortgage of Company’s moveable and immovable properties, both present and future, situated at Plot no. 675 at Industrial Area Pithampur in the State of Madhya Pradesh.

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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Details of Loan As at As at Security
March 31, March 31,
2024 [#] 2023 [#]
----- End of picture text -----

Immoveable Properties

(b) Loans in 2(a)(i), is to be further secured by the mortgage on the Company's all immoveable properties, both present and future, situated at Dahej in the State of Gujarat.

381.97 Secured by hypothecation of stocks, semi finished goods and finished goods, stores and spares not relating to plant and machinery, bill receivables, book debts and other Company's moveable assets, both present and future, situated at Manali, Viralimalai and Gummidipoondi in the State of Tamil Nadu, Jhiwana in the State of Rajasthan, Malanpur, Special Economic Zone - Indore and Pithampur in the State of Madhya Pradesh, Kashipur in the State of Uttarakhand and Dahej in the State of Gujarat.

3 (i) Loans repayable on demand from banks

588.18

Such hypothecation and mortgage mentioned in point 1, 2(a)(i) and 2(b)(i) above, rank pari-passu between term loans from banks and others.

Gross of upfront fees paid `9.56 crores (Previous year -` 6.29 crores).

15.2 Terms of loans

As at March 31, 2024

NON CURRENT BORROWINGS

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

Loan Category Frequency Interest rate Up to For For From
of principal March 31, 2025-26 2026-27 2027-28 to
repayments 2025 2029-30
----- End of picture text -----

Term loan from	Quarterly	Ranging from 0.94%	338.56	404.54	388.92	39.09
banks	payments	to 6.32%
	Half yearly	Floating rate; 8.10%	12.00	12.00	12.00	164.00
	payments	as at March 31, 2024
	Monthly	At 1.12%	265.16	-	-	-
	Bullet	Floating rate; 6.22%	250.15	-	-	-
		as at March 31, 2024
Term loan from	Half yearly	Floating rate; 6.62%	44.46	22.31	-	-
others	payments	as at March 31, 2024
	Quarterly	Floating rate; 6.22%	-	50.03	100.06	475.28
	payments	as at March 31,2024
			910.33	488.88	500.98	678.37

Amounts mentioned above are gross of upfront fees paid of ` 9.56 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 5.45% to 9.50%.

276

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Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

As at March 31, 2023

NON CURRENT BORROWINGS

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

Loan Category Frequency Interest rate Up to For For From
of principal March 31, 2024-25 2025-26 2026-27 to
repayments 2024 2027-28
----- End of picture text -----

Term loan from	Quarterly	Ranging from 0.94%	298.09	335.38	399.06	421.98
banks	payments	to 5.75%
	Half yearly	At 1.23%	26.14	261.42	-	-
	payments
	Bullet	Floating rate; 5.45%	-	246.63	-	-
		as at March 31, 2023
Term loan from	Half yearly	Floating rate; 5.84%	43.83	43.83	22.01	-
others	payments	as at March 31,2023
			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 78.13 crores are repayable in 5 quarterly instalments from April 2024 (Previous year: 140.63 crores repayable in 9 quarterly instalments from April 2023).
2 Rupee term loans of ` 90.00 crores are repayable in 12 half-yearly instalments from September 2024 (Previous year: NIL).
3 Rupee term loans of ` 110.00 crores are repayable in 12 half-yearly instalments from September 2024 (Previous year: NIL).
4 Foreign currency term loan of 66.77 crores are repayable in 3 half-yearly instalments from April 2024 (Previous year: 109.67 crores are repayable in 5 half-yearly instalments from April 2023).

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

8 Foreign currency term loan of 176.58 crores are repayable in 12 quarterly instalments from June 2024 (Previous year: 232.12 crores are repayable in 16 quarterly instalments from June 2023).
9 Foreign currency term loan of 195.43 crores are repayable in 15 quarterly instalments from May 2024 (Previous year: 205.52 crores are repayable in 16 quarterly instalments from February 2024).
10 Foreign currency term loan of 625.37 crores are repayable in 9 quarterly instalments from February 2025 (Previous year: 616.54 crores are repayable in 9 quarterly instalments from February 2025).
11 Foreign currency term loan of ` 625.37 crores are repayable in 21 quarterly instalments from July 2025 (Previous year: NIL).
12 Foreign currency term loan from Bank of 26.82 crores was repaid in the current year (Previous year: 26.82 crores is repayable in 1 quarterly instalment in April 2023).
13 Foreign currency term loan from Bank of 44.04 crores was repaid in the current year (Previous year: 44.04 crores are repayable in 3 quarterly instalments from April 2023).

16 PROVISIONS

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As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

Non-Current Provision for employee benefts
Provision for compensated absences (Refer note 33.3)	60.79	51.67
Provision for retentionpay	0.17	0.17
	60.96	51.84
Current Provision for employee benefts
Provision for compensated absences(Refer note 33.3)	7.27	6.28
	7.27	6.28

17 DEFERRED TAX (NET)

5 Foreign currency term loan of 95.60 crores are repayable in 4 quarterly instalments from May 2024 (Previous year: 188.83 crores are repayable in 8 quarterly instalments from May 2023).
6 Foreign currency term loan of 265.16 crores are repayable in 12 monthly instalments from April 2024 (Previous year: 287.57 crores are repayable in 2 half yearly instalments from September 2023 and then 12 monthly instalments from April 2024).

The following is the analysis of deferred tax assets / (liabilities) presented in balance sheet

	Deferred tax assets	As at March 31, 2024 43.84	As at March 31, 2023 70.13
	Deferred tax liabilities	(924.12)	(819.47)
	Deferred tax liabilities, net	(880.28)	(749.34)

7 Foreign currency term loan of 250.15 crores is repayable in one bullet instalment in March 2025 (Previous year: 246.63 crores is repayable in one bullet instalment in March 2025).

278

279

Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

The major components of deferred tax assets / (liabilities) arising on account of temporary differences are as follows:

2023-24	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	14.54	7.29	-	-	21.83
years
Provision for credit impaired	0.66	(0.20)	-	-	0.46
loans / receivables
Cash fow hedges / Cost of	49.04	-	(31.76)	-	17.28
hedging reserve
Others	5.89	(1.62)	-	-	4.27
	70.13	5.47	(31.76)	-	43.84
Deferred tax liabilities
Property, plant and equipment	(797.37)	(105.25)	-	-	(902.62)
and intangible assets
Investment in mutual funds	(12.90)	(2.78)	-	-	(15.68)
Others	(9.20)	3.38	-	-	(5.82)
	(819.47)	(104.65)	-	-	(924.12)
Total	(749.34)	(99.18)	(31.76)	-	(880.28)

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 future	17.16	(2.62)	-	-	14.54
years
Provision for credit impaired	0.57	0.09	-	-	0.66
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 equipment	(661.89)	(135.48)	-	-	(797.37)
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)

Note:

During the previous year, basis profitability and reassessment of certain tax positions, the Company had 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 had also been utilised in previous financial year.

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

18 TRADE PAYABLES

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As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

Total outstanding dues of micro enterprises and small
enterprises#
- Acceptances*	-	5.33
-Otherthanacceptances	84.28	62.46
	84.28	67.79
Total outstanding dues of creditors other than micro enterprises
and small enterprises
- Acceptances*	335.82	417.05
-Other than acceptances	1,147.71	1,164.33
	1,483.53	1,581.38
	1,567.81	1,649.17

# 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 :

	As at March 31, 2024
Outstanding for following periods from due date of payment	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 3 years	- 367.74 - - 367.74 82.88 1,042.91 - - 1,125.79 1.40 72.39 - - 73.79 - - - - - - - - - - - 0.49 - - 0.49
	84.28 1,483.53 - - 1,567.81

	As at March 31, 2023
Outstanding for following periods from due date of payment	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

280

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Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

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

As at As at
March 31, 2024 March 31, 2023
Amount remaining unpaid to suppliers under MSMED (suppliers) as at
----- End of picture text -----

Amount remaining unpaid to suppliers under MSMED (suppliers) as at
the end of year
- Principal amount**	118.49	127.90
- Interest due thereon	0.04	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	0.01	-
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	0.04	0.01
- Interest remaining unpaid as at the end of the year	0.04	0.01
Interest remaining due and payable even in the succeeding years, until	0.04	0.01
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

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

As at As at
March 31, 2024 March 31, 2023
Non-Current
----- End of picture text -----

Non-Current
Derivatives carried at fair value through other comprehensive income
Forward exchange contracts used for hedging	0.80	26.24
Payables to capital creditors
Total outstanding dues of creditors other than micro enterprises and
small enterprises
- Acceptances*	-	133.23
	0.80	159.47
Current
Interest accrued but not due on borrowings	19.51	13.25
Unpaid dividends^	6.55	6.83
Security deposits received	7.83	7.63
Payables to capital creditors
Total outstanding dues of micro enterprises and small enterprises#
- Acceptances*	-	0.67
- Other than acceptances	34.26	59.45
Total outstanding dues of creditors other than micro enterprises and
small enterprises
- Acceptances*	134.11	56.95
- Other than acceptances	56.49	97.04
Derivatives carried at fair value through proft and loss
Forward exchange contracts used for hedging	0.79	6.98

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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

As at As at
March 31, 2024 March 31, 2023
Derivatives carried at fair value through other comprehensive income
----- End of picture text -----

Forward exchange contracts used for hedging	4.93	34.48
Payable to banks for discounted receivables	129.58	96.30
Liability towards unspent expenditure on corporate social responsibility**	9.51	-
Others	1.00	3.41
	404.56	382.99

Refer footnote to note 18

** Refer note 40 (f)

^ 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, 2024	As at March 31, 2023
Other tax assets
Advance tax(net ofprovision for tax)	206.85	85.57
Current tax liabilities
Provision for tax(net of advance tax)	11.76	11.65

21 OTHER LIABILITIES

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

As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

Non-current
Deferredgovernmentgrants*	122.75	29.20
	122.75	29.20
Current
Contract liability (Refer note 39)	23.21	40.37
Deferred government grants*	3.79	-
Statutory liabilities	24.44	29.13
Payable to gratuity trust (Refer note 33.2)	4.00	8.38
Otherpayables	18.53	18.35
	73.97	96.23

Deferred government grants represent capital grant approved during the current year under the Madhya Pradesh Industrial promotion policy and Investment Promotion Scheme towards setting up of packaging film plant in Indore and promoting investment and job creation which is to be received over a period of 7 years, are being amortised over the useful life of the related property, plant and equipment in proportion to the related depreciation expense recognised.

Deferred government grant also includes grant related to duty saved on import of capital goods under the Exports Promotion Capital Goods (EPCG) scheme of 30.89 crores (Previous year: 29.20 crores). 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.

Total unamortised grant amount as on March 31, 2024 is 126.54 crores (Previous year: 29.20 crores).

282

283

Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(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, 2024 March 31, 2023
----- End of picture text -----

Revenue from contracts with customers
Sale of products
Manufactured goods	10,469.17	11,681.60
Tradedgoods	96.75	124.49
	10,565.92	11,806.09
Other operating revenues
Export and other incentives	83.89	86.14
Scrap sales	37.51	55.63
Provision/ liabilities no longer required written back	12.54	27.44
Material handling income	80.47	97.67
Other operatingincome	6.34	0.87
	220.75	267.75
	10,786.67	12,073.84

Reconciliation of revenue from sale of products with the contracted price

	Year ended March 31, 2024 Year ended March 31, 2023
Contracted price Less: Discounts,allowances and claims	10,835.57 11,996.22 (269.65) (190.13)
Sale ofproducts	10,565.92 11,806.09

23 OTHER INCOME

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

Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

Inte	rest income
i.	On fnancial assets carried at amortised cost
	- from customers	0.01	0.04
	- from loans, deposits and investments	29.65	25.36
ii.	On fnancial assets carried at fair value through proft and loss
	- from investments	10.85	12.77
iii.	On others *	4.45	21.73
Net	gain on sale/ discarding of property, plant and equipment	4.77	6.19
Net gain on fnancial assets measured at fair value through proft and loss		22.87	9.10
Income from business support services		15.10	14.41
Other non-operatingincome		31.72	16.46
		119.42	106.06

Refer note no 29 (iii)

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

24.1 COST OF MATERIALS CONSUMED

Year ended March 31, 2024 Year ended March 31, 2023
Opening stock of raw materials 893.08 855.01
Add: Purchases of raw materials 5,144.42 5,542.59
Less: Closingstock of raw materials 841.22 893.08
Cost of materials consumed 5,196.28 5,504.52*

including packing material

24.2 PURCHASES OF STOCK IN TRADE

Year ended March 31, 2024 Year ended March 31, 2023
Purchase of stock in trade 83.61 109.72
83.61 109.72

24.3 CHANGES IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK IN TRADE

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

Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

Inventories at the end of the year :
Stock-in-Process	233.47	198.74
Finished goods	456.52	391.52
Tradedgoods	7.35	15.75
	697.34	606.01
Inventories at the beginning of the year :
Stock-in-Process	198.74	189.36
Finished goods	391.52	432.51
Tradedgoods	15.75	6.05
	606.01	627.92
Total (increase) / decrease	(91.33)	21.91
Less: Inventory damaged due to cyclone / food	(22.99)	-
(refer to note 40(g))
Net(increase) / decrease	(114.32)	21.91

25 EMPLOYEE BENEFITS EXPENSE

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

Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

Salaries and wages, including bonus	655.75	563.38
Contribution to provident and other funds	45.47	39.15
Workmen and staf welfare expenses	80.56	72.90
Employee share basedpayment expense(Refer note 34)	8.55	8.76
	790.33	684.19

284

285

Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

26 FINANCE COST

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Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

Interest cost ^
- Non-convertible debentures	-	7.33
- Term loans and others	206.05	122.78
- Lease liabilities	8.99	8.92
Other borrowing costs	13.57	11.94
Exchange diferences regarded as an adjustment to borrowing	6.99	24.85
costs
	235.60	175.82

^ 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, 2024	Year ended March 31, 2023
Depreciation of property, plant and equipment	515.99	433.78
Depreciation of right-of-use assets	31.71	27.30
Amortisation of intangible assets	8.15	7.36
	555.85	468.44

28 OTHER EXPENSE

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Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

Stores and spares consumed	71.54	65.07
Power and fuel	1,134.90	1,230.86
Labour production	63.26	49.31
Rent*	36.52	34.92
Repairs and maintenance
- Buildings	10.37	8.25
- Plant and machinery	230.74	205.39
- Others	56.41	43.97
Insurance	60.86	52.65
Rates and taxes	8.04	6.40
Freight charges	331.50	442.33
Expenditure on corporate social responsibility**	41.02	28.63
Legal and professional charges	51.11	37.99
Travelling and conveyance	20.05	16.59
Directors' sitting fees	0.21	0.27

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

		Year ended March 31, 2024	Year ended March 31, 2023
Selling commission		10.48	9.77
Credit impaired assets provided/ written of		-	0.52
Property, plant and equipment provided/ written of		4.27	3.54
Auditor remuneration
-	Audit fees	0.90	0.82
-	For limited review of unaudited fnancial results	0.63	0.54
-	For Corporate governance and other certifcates	0.07	0.07
-	For tax audit	0.12	0.10
-	Reimbursement of out of pocket expenses	0.18	0.12
Efuent disposal expenses		157.16	180.67
Net foreign currency exchange fuctuation loss		78.93	86.71
Miscellaneous expenses^		71.59	53.95
		2,440.86	2,559.44
*	Refer to note 37
** Refer to note 40(f)
^	Including`2.00 crores (Previous year: Nil) paid as political contribution
	Also refer to note 40(g) for adjustments on account of damage due to cyclone / food.
INCOME TAX RECOGNISED IN PROFIT AND LOSS
		Year ended March 31, 2024	Year ended March 31, 2023
Current tax
	In relation to current year	342.73	614.53
	Adjustment in relation to earlieryears(Refer note(iii)below)	(98.06)	(32.54)
		244.67	581.99
Deferred tax
-	MAT credit entitlement (Refer note (ii) below)
	In relation to current year	-	(74.02)
	Adjustment in relation to earlieryears	-	(20.11)
		-	(94.13)
-	Others
	In relation to current year	101.70	141.51
	Adjustment in relation to earlieryears	(2.52)	3.13
		99.18	144.64
Total tax expense		343.85	632.50

29 INCOME TAX RECOGNISED IN PROFIT AND LOSS

286

287

Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

The income tax expenses for the year can be reconciled to the accounting profits as follows:

	Year ended March 31, 2024	Year ended March 31, 2023
Proft before tax	1,717.88	2,655.86
Income Tax Expenses @ 25.168% (Previous year: 34.944%)	432.36	928.06
Efect of deductions (research and development, share issue	(0.25)	(126.53)
expenses and deductions under chapter VI A of Income Tax Act)
Efect of expenses that are not deductible in determining taxable proft	11.32	10.97
Recognition of MAT credit previously written of (refer note (ii)	-	(74.02)
below)
Efect of lower tax rate on certain temporary diferences	-	(55.83)
pursuant to Section 115BAA of Income Tax Act
Others	1.00	(0.63)
Income tax expenses recognised in statement of proft	444.43	682.02
and loss in relation to current year
Income tax credit recognised in statement of proft and loss in	(100.58)	(49.52)
relation to earlieryears(Refer notes(iii)below)
Total Income tax expenses recognised inproft and loss	343.85	632.50

Notes:

(i) During the year, the Company has transitioned to the new tax regime under section 115BAA of the Income Tax Act, 1961. Accordingly, the tax rate used for the current year reconciliation above is the corporate tax rate of 25.168% (Previous year: 34.944%) payable by corporate entities in India on taxable profits under the Indian tax law.
(ii) During the previous year, basis profitability and reassessment of certain tax positions, the Company had 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 had also been utilised in previous financial year.
(iii) During the year March 31, 2024, the Company has reassessed its uncertain tax position in relation to past years on taxability of income from sale of Carbon Emission Reduction Certificates (CER’s) and has written back 98.06 crores in respect of assessment years 2008-09 and 2009-10 as ‘Tax adjustments in relation to earlier years’ after taking into consideration favourable orders received from Income Tax Appellate tribunal (“ITAT”) in relation to the above assessment years, elapse of statutory time for further appeal by tax authorities and favourable judicial precedents (Previous year: 32.17 crores along with interest income of ` 20.15 crores in respect of assessment year 2006-07). Related interest income in respect of assessment years 2008-09 and 2009-10 will be considered in the period in which a requisite level of certainty is achieved.

Considering that the in-principle matter of taxability of CERs is yet to attain a finality, the Company will continue to re-assess its tax position, including in relation to other assessment years, and will consider their impact in the relevant period.

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(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, 2024 March 31, 2023
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 cash fow hedges	(32.19)	67.58
Cost of Hedging Reserve	0.43	(0.79)
Remeasurement of defned beneft obligation	1.16	4.24
	(30.60)	71.03
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 toproft or loss	(31.76) 1.16	66.79 4.24
	(30.60)	71.03

31 CONTINGENT LIABILITIES AND COMMITMENTS

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

As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

Claims against the Company not acknowledged as debts
Goods and services tax, excise duty, custom duty and service tax *	17.92	7.38
Sales tax and entry tax **	14.01	15.60
Income tax ***	300.22	304.78
Others ****	10.16	11.01

Amount deposited against contingent liability 6.77 crores (Previous year: 1.20 crores)
** Amount deposited against contingent liability 6.54 crores (Previous year: 6.74 crores)
*** Amount deposited against contingent liability 63.42 crores (Previous year: 59.68 crores). Contingent liabilities includes:
(i) Assessment / rectification orders received for assessment years 2017-18 and 2018-19 in which adjustments to taxable income were made on account of transfer pricing related matters, research and development expenditure and others etc. and a demand of 1.20 crores and 11.03 crores was raised. 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. Basis this direction, rectification has been passed for assessment year 2017-18 in the current year thereby granting refund of 3.33 crores which has been adjusted against demand of A.Y.2018-19 and rectification for assessment year 2018-19 is pending before the Assessing Officer. These orders have a tax implication of 19.96 crores (Previous year 95.97 crores) and 57.94 crores (Previous year ` 57.94 crores) respectively (primarily due to reduction in MAT credit entitlement eligible for accumulation / subsequent utilization). The Company has filed an appeal before Income Tax Appellate Tribunal against the said orders. 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 under section 143(1) received during the year for assessment year 2021-22 and 2022-23 with a demand of 130.74 crores and 68.76 crores respectively for which the Company has filed rectification application before Assessing Officer and an appeal before CIT(Appeals). Also refund aggregating to 57.33 crores (previous year 56.91 crores) for different assessment years have been adjusted against the said demand of assessment year 2021-22. Based on the facts of the case and the management’s assessment, these demands are raised due to technical errors and therefore the Company is of the view that the proposed adjustments are not likely to sustain.

288

289

Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

**** Amount deposited against contingent liability 9.05 crore (Previous year: 9.05 crore). Contingent liability includes demand by Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Ltd. (MPPKVV Ltd) of 8.73 Crores (Previous year: 8.73 crores).

All the above matters are subject to legal proceedings in the ordinary course of business. In the opinion of the management, the legal proceedings, when ultimately concluded, are not likely to 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 43.00 crores (Previous year: 18.59 crores) should not be levied. An amount of 7.15 crores (Previous year: 0.10 crores) has been deposited against such show cause notices. The Company has been advised by its legal advisor that the contention of the department is not tenable and hence the show cause notice may not be sustainable.
(ii) The Company had received a draft Assessment Orders for assessment year 2020-21 and assessment year 2021-22 in which adjustment amounting to 178.50 crores and 258.55 crores are proposed on account of transfer pricing adjustments, disallowance for research and development expenditure and for generation of power from captive power plants, etc. which are pending before Dispute Resolution Panel as at March 31 2024. 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 represent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of different legal processes which have been invoked by the Company or by the claimant 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.
d. Guarantees given to banks and others to secure the financial facilities sanctioned to subsidiaries by banks and other companies are as below:

Name of the subsidiary	Currency	Guarantee	Guarantee	amount as at	amount as at	Loan /	payable outstanding against theguarantee as at	payable outstanding against theguarantee as at	payable outstanding against theguarantee as at
		March 31, 2024		March	31, 2023	March 31, 2024		March	31, 2023
		In Millions	In`<br>Crores^\|<br>In<br>Millions\|<br>In` Crores^^	In Millions	In`<br>Crores^\|In<br>Millions\|<br>In` Crores^^
SRF Global BV	USD	44.00	366.89	33.00	271.29	3.20	26.66	10.87	89.36
	USD *	50.00	416.92	44.00	361.72	21.10	175.97	11.07	91.01
SRF Industries (Thailand)	EUR	-	-	18.00	160.89	-	-	1.04	9.37
Limited	EUR	12.76	114.81	12.76	114.06	1.50	13.54	9.87	88.21
	USD	17.20	143.42	17.20	141.40	8.56	71.41	12.79	105.15
	USD	24.00	200.12	-	-	19.18	159.95	-	-
	THB	840.00	191.93	-	-	600.00	137.10	-	-
SRF Europe Kft (Hungry)	EUR	33.00	296.93	22.00	196.65	6.50	58.49	-	-
	EUR	77.00	692.83	77.00	688.27	60.80	547.04	63.94	571.52

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

e. Capital and other commitments

		As at March 31, 2024	As at March 31, 2023
(i)	Estimated amount of contracts remaining to be executed	297.01	532.35
	on capital account (Property, Plant and Equipment) 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 1,003.14 crores (Previous year: 1,287.79 crores).

32 RELATED PARTY TRANSACTIONS

32.1 Description of related parties under Ind AS - 24 “Related Party Disclosures”

Ultimate Holding ABR Family Trust

Key management personnel (KMP) Ashish Bharat Ram Kartik Bharat Ram Tejpreet S Chopra Lakshman Lakshminarayan Vellayan Subbiah Pramod Gopaldas Gujarathi Bharti Gupta Ramola Yash Gupta Puneet Yadu Dalmia Raj Kumar Jain *

Holding Company KAMA Holdings Limited

Subsidiaries

SRF Holiday Home Limited Bharti Gupta Ramola SRF Global BV Yash Gupta SRF Industries (Thailand) Limited Puneet Yadu Dalmia SRF Industex Belting (Pty) Limited Raj Kumar Jain * SRF Flexipak (South Africa) (Pty) Limited SRF Europe Kft Enterprises over which KMP have control or joint control[#]

SRF Employees Welfare Trust (Controlled Trust) SRF Foundation SRF Altech Limited SRF Welfare Trust SRF Middle East^^^

SRF Welfare Trust

BLP Industry AI Private Limited Parry Enterprises India Limited Rose Farms (Delhi) LLP Carborundum Universal Limited Dalmia Cement (Bharat) Limited*** CG Power and Industrial Solutions Limited

Fellow subsidiaries[#]

KAMA Realty (Delhi) Limited Shri Educare Limited SRF Transnational Holding Limited

Existing guarantee enhanced from 33 millions to 50 millions USD during the FY 2023-24

^ Converted using closing exchange rate - USD 83.38 and Euro 89.98

^^ Converted using closing exchange rate - USD 82.21 and Euro 89.39

290

291

Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(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 significant

influence[#]

Havells India Limited *** Indian Chemical Council****

Relative of KMP[#]

KMP of Holding Company[#]

Ekta Maheshwari Jagdeep Singh Rikhy Amitav Virmani^

Arun Bharat Ram^^ Sushil Ramola Murugappan Vellayan Subbiah Deeksha Amit Kalyani ^

Enterprises over which relative of KMP has control or joint control[#]

Salil Gupta ^

Relative of KMP of Holding Company[#] Nirmala Kothari Meher Kaur Rikhy ^ Palak Maheshwari^

Murugappa & Sons

^ From August 18, 2022

^^ From April 01, 2022 ^^^From March 12, 2024

From May 09, 2022

** From June 15, 2022

*** From April 06, 2022

**** From October 31, 2023

* From December 08, 2023

Only with whom the Company had transactions during the year

32.2 Transactions with related parties

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

Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

Sale of goods to:
Subsidiaries	82.34	107.41
Enterprises over which KMP have signifcant infuence	16.02	15.26
	98.36	122.67
Purchase of goods from:
Subsidiaries	0.53	17.81
Enterprises over which KMP have signifcant infuence	3.41	6.00
	3.94	23.81
Purchase of property, plant & equipment from:
Subsidiaries	0.22	-
Key management personnel	1.90	-
Enterprises over which KMP have control orjoint control	1.51	-
	3.63	-

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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

Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

Sale of property, plant & equipment to:
Subsidiaries	0.01	1.70
Enterprises over which KMP have control orjoint control	7.00	-
	7.01	1.70
Services rendered to:
Subsidiaries	16.42	15.34
	16.42	15.34
Receiving of Services from :
Relative of KMP	0.60	0.60
Enterprises over which KMP have control or joint control	0.95	0.64
Enterprises over which KMP have signifcant infuence	0.05	-
	1.60	1.24
Rent paid to:
Fellow Subsidiaries	6.54	6.56
Subsidiaries	0.06	0.06
Relative of KMP	0.21	0.21
Key management personnel	0.01	0.05
Enterprises over which KMP have control orjoint control	1.36	0.27
	8.18	7.15
Reimbursement of expenses from
Holding Company*	-	0.02
Key management personnel **	-	-
Subsidiaries	1.72	1.35
Fellow Subsidiaries	0.02	0.05
Enterprises over which KMP have control orjoint control	0.03	0.01
	1.77	1.43
* Amount in absolute :`35,000
** Amount in absolute :`28,000
Advance given to
Enterprises over which KMP have control orjoint control	-	0.24
	-	0.24
Loan given to
Subsidiaries	365.04	278.16
	365.04	278.16

293

292

Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

==> picture [422 x 28] intentionally omitted <==

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

Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

Loan received back
Subsidiaries	562.77	404.89
	562.77	404.89
Interest received from
Subsidiaries	24.11	18.80
	24.11	18.80
Security deposits given to
Enterprises over which KMP have control orjoint control	0.98	-
	0.98	-
Security deposits received back from
Key management personnel	0.01	-
Fellow Subsidiaries	-	0.03
	0.01	0.03
Contribution for expenditure on corporate social
responsibility
Enterprises over which KMP have control orjoint control	25.70	28.23
	25.70	28.23
Investments made in
Subsidiaries	420.00	-
	420.00	-
Contribution to post employment beneft plans
Post Employment Beneft Plans Trust	31.50	43.69
	31.50	43.69
Employee beneft obligations/assets transferred to
Subsidiaries	-	0.39
Fellow Subsidiaries	0.01	-
	0.01	0.39
Equity dividend paid
Holding Company	107.74	107.96
Key management personnel	0.07	0.05
Relative of KMP	0.22	0.24
KMP of Holding Company	*	*
Relative of KMP of Holding Company	^	^
Enterprises over which KMP have control orjoint control	#	#
	108.03	108.25

Amount in absolute 1,786 (Previous year : 9,882)

^ Amount in absolute 720 (Previous year : 814)

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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

Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

Guarantees issued / renewed
Subsidiaries*	632.79	271.29
	632.79	271.29
Guarantees run-down / released
Subsidiaries*	161.96	65.77
	161.96	65.77

Converted using closing exchange rate - USD 83.38 and Euro 89.98 (Prev year USD 82.21 and Euro 89.39)

32.3 Outstanding Balances:

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

Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

Receivables
Subsidiaries	32.56	33.57
Post Employment Beneft Plans Trust	0.99	1.31
Enterprises over which KMP have signifcant infuence	2.30	2.22
	35.85	37.10
Payables
Subsidiaries	0.60	1.16
Enterprises over which KMP have signifcant infuence	0.02	0.44
Post Employment Beneft Plans Trust	5.69	9.86
Enterprises over which KMP have control orjoint control	0.51	-
	6.82	11.46
Interest receivable
Subsidiaries	5.69	7.66
	5.69	7.66
Commission payable
Keymanagementpersonnel	17.26	17.16
	17.26	17.16
Security deposits outstanding
Subsidiaries	0.02	0.02
Fellow Subsidiaries	3.24	3.24
Relative of KMP	0.11	0.11
Key management personnel	-	0.01
Enterprises over which KMP have control orjoint control	1.12	0.14
	4.49	3.52
Equity Investment outstanding
Subsidiaries	508.66	88.66
	508.66	88.66

^^ Amount in absolute 37,224 (Previous year : 37,224)

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295

Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

Loans outstanding
Subsidiary	310.15	480.36
	310.15	480.36
Guarantees outstanding
Subsidiaries**	2,423.85	1,934.28
	2,423.85	1,934.28

Converted using closing exchange rate - USD 83.38 and Euro 89.98 (Prev year USD- 82.21, Euro 89.39)

32.4 Key management personnel compensation

	Year ended March 31, 2024	Year ended March 31, 2023
Short-term benefts*	39.05	36.03
Post-employment benefts	2.91	8.60
Other long-term benefts	1.07	3.40
	43.03	48.03

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, 2024 March 31, 2023
----- End of picture text -----

Superannuation fund (Refer to note (i) below)	0.48	0.45
Provident fund administered through Regional Provident Fund	19.33	16.72
Commissioner (Refer to note (ii) below)
Employees’ State Insurance Corporation	0.15	0.30
National Pension Scheme	2.75	2.36
	22.71	19.83

The expenses incurred on account of the above defined contribution plans have been included in Note 25 “Employee Benefits Expenses” under the head “Contribution to provident and other funds”.

(i) Superannuation fund

The Company makes contributions to a Trust which in turn contributes to ICICI Prudential Life Insurance Company Limited. Apart from being covered under the Gratuity Plan described below, the employees of the Company also participate in a defined contribution superannuation plan maintained by the Company. The Company has no further obligations under the plan except making annual contributions based on a specified percentage of each covered employee’s salary. From November 1, 2006, the Company provided an option to the employees to receive the said benefit as cash compensation along

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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.

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.

296

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Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(ii) The principal assumptions used for the purpose of the actuarial valuation are as follows:

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

As at March 31, 2024 As at March 31, 2023
Gratuity Provident Fund Gratuity Provident Fund
----- End of picture text -----

Discount Rate	7.13%	7.13%	7.35%	7.35%
Expected statutory interest rate	-	8.25%	-	8.15%
Salary increase	8.50%	-	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	15.00%	15.00%	20.00%	20.00%
31 to 44 years	7.00%	7.00%	7.00%	7.00%
Above 44years	8.00%	8.00%	8.00%	8.00%

The cost of the defined benefit plans and other long term benefits are determined using actuarial valuations. Actuarial valuations involve making various assumptions that may differ from actual developments in the future. These includes the determination of the discount rate, future salary increases and mortality rate. Due to these complexities involved in the valuation probability are 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 have been 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 onplan assets)
	As at March 31, 2024 As at March 31, 2023
	Gratuity Provident Fund Gratuity Provident Fund
	12.43 7.73 10.14 7.88 0.62 - 0.83 -
	13.05 7.73 10.97 7.88

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, 2024

(All amounts in ` Crores, unless otherwise stated)

(iv) Amounts recognised in Other Comprehensive Income:

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

As at March 31, 2024 As at March 31, 2023
Gratuity Provident Fund Gratuity Provident Fund
----- End of picture text -----

Remeasurements (gain)/
losses:
Return on plan assets excluding	(5.59)	-	2.33	-
interest income
Actuarial (gain)/ losses arising from changes in fnancial	6.82	-	(1.58)	-
assumptions
Actuarial (gain)/ losses arising	3.25	-	11.39	-
from changes in experience
adjustments
Actuarial (gain)/ losses arising	0.11	-	-	-
from changes in demographic
adjustments
	4.59	-	12.14	-

(v) The amounts included in balance sheet arising from the entity’s obligation in respect of its defined benefit plans are as follows:

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As at March 31, 2024 As at March 31, 2023
Gratuity Provident Fund Gratuity Provident Fund
Present value of funded defined 154.18 200.48 127.68 178.17
benefit obligation
----- End of picture text -----

	Present value of funded defned beneft obligation	154.18	200.48	127.68	178.17
	Fair value ofplanassets Surplus/ (Defcit) Efect ofasset ceiling,ifany	150.17 (4.01) -	203.36 2.88 (2.88)	119.30 (8.38) -	179.86 1.69 (1.69)
	Net assets / (liability)	(4.01)	-	(8.38)	-

(vi) Movements in the present value of defined benefit obligation are as follows:

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As at March 31, 2024 As at March 31, 2023
Gratuity Provident Fund Gratuity Provident Fund
Opening defined benefit obligation 127.68 178.17 107.45 155.50
----- End of picture text -----

Opening defned beneft obligation	127.68	178.17	107.45	155.50
Current service cost	12.43	7.73	10.14	7.88
Interest cost	9.39	14.66	7.69	12.99
Actuarial (gain)/ losses arising from changes in fnancial assumptions	6.82	-	(1.58)	-
Actuarial (gain)/ losses arising from	3.25	-	11.39	-
changes in experience adjustments
Actuarial (gain)/losses arising	0.11	-
from changes in demographic
assumptions
Benefts paid	(5.50)	(15.51)	(7.29)	(15.42)
Contribution by plan participants/	-	11.20	-	10.16
employees
Settlement/ transfer in	-	4.23	(0.12)	7.06
Closing defned beneft	154.18	200.48	127.68	178.17
obligation

298

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(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 -----

As at March 31, 2024 As at March 31, 2023
Gratuity Provident Fund Gratuity Provident Fund
----- End of picture text -----

Opening fair value of plan assets	119.30	179.86	95.88	157.64
Return on plan assets (excluding	14.36	15.85	4.53	12.54
amounts included in net interest
expenses)
Contributions from employer	22.01	7.73	26.18	7.88
Contributions from plan	-	11.20	-	10.16
participants
Benefts paid	(5.50)	(15.51)	(7.29)	(15.42)
Settlement/transfer in	-	4.23	-	7.06
Closing fair value of plan	150.17	203.36	119.30	179.86
assets

Gratuity:

Plan assets comprises primarily of investments in HDFC Group Unit Linked Plan Fund and ICICI Prudential Life Fund. The average duration of the defined benefit obligation is 9.29 years (Previous year: 9.07 years). The Company expects to make a contribution of 13.77 crores (Previous year: 11.64 crores) to the defined benefit plans during the next financial year.

The plan assets comprise of the following securities:

	As at March 31, 2024	As at March 31, 2023
Government and Corporate Bonds	85.69%	83.67%
Others	14.31%	16.33%

Provident Fund:

The plan assets comprise of the following securities:

	As at March 31, 2024	As at March 31, 2023
Government Bonds	49.57%	56.15%
Public Sector Bonds	35.38%	35.19%
Other equityand Mutual Funds	15.05%	8.66%

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

	Year ended March 31, 2024	Year ended March 31, 2024	Year ended March 31, 2023	Year ended March 31, 2023
	0.50% increase	0.50% decrease	0.50% increase	0.50% decrease
Sensitivity analysis of Gratuity
Discount rate	(4.87)	5.18	(4.00)	4.25
Expected salary growth	5.09	(4.83)	4.20	(4.00)
Attrition rate	(0.49)	0.51	(0.41)	0.42
Sensitivity analysis of Provident Fund
Discount rate	(0.02)	0.02	(0.01)	0.01

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, 2024 Year ended March 31, 2023
Compensated absences 15.87 13.66
15.87 13.66

Long Term Retention Pay

The Company has a Long Term Retention Pay Plan which covers employees selected on the basis of their current band and their long term value to the Company. The incentive is payable in three year blocks subject to achievement of certain performance ratings. The Company also has a scheme for talent retention of certain identified employees under which an incentive is payable over a period of three years.

34 EMPLOYEE SHARE BASED PAYMENTS

The Company has an Employee Share Purchase Scheme (SRF Long Term Share Based Incentive Plan) to provide equity settled share based payments to eligible employees. Under the said Scheme, the Company has issued equity shares to the eligible employees by entering into a Share Grant Agreement and executing a Share Grant Acceptance Letter and paying the exercise price, if any, as prescribed by the Nomination and Remuneration Committee at the time of grant. Subscribed shares have complete voting and dividend rights. Employees who have been granted equity share are required to pledge their shares as part of the Share Grant Agreement between the Company, Eligible Employee and the SRF Employees Welfare Trust (‘Trust’). In case of exit/ termination of employees before their retirement or such other period as may be decided by the Nomination and Remuneration Committee, the shares shall get transferred to the Trust. Such shares will then be issued to another set of eligible employees as and when the Nomination and Remuneration Committee decides subject to the applicable rules and regulations.

(viii) Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined obligations 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.

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 term of the grant.

300

301

Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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, 2024 March 31, 2023
----- End of picture text -----

Number of equity shares:
(i) At the beginning of the year	198,800	195,000
(ii)Granted duringtheyear *	-	3,800
(iii)At the end of theyear	198,800	198,800
Market price on the grant date (`per equity share)	-	2,320.95
Exercise price (`per equity share)	-	10.00
Fair value of share based payment (`per equity share)	-	2,310.95
Share basedpayment expense recognised duringtheyear #	8.55	8.76

Shares granted during the previous year had a lock in period upto August 21, 2023. These shares are pledged for a period upto October 31, 2026.

Includes amount of `Nil (Previous year:` 0.35 crores) towards withholding tax on equity shares granted under the above scheme.

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 1B 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.

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, 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, 2024 March 31, 2023
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Segment revenue
a) Technical textiles business (TTB)
- External sales	1,886.99	1,891.25
- Inter-segment sales	11.02	2.63
Total	1,898.01	1,893.88
b) Chemicals business (CB)
- External sales	6,237.32	7,326.01
- Inter-segment sales	0.01	-
Total	6,237.33	7,326.01
c) Packaging flms business (PFB)
- External sales	2,197.07	2,463.97
- Inter-segment sales	0.11	7.24
Total	2,197.18	2,471.21
d) Others
- External sales	465.29	392.61
- Inter-segment sales	0.01	-
Total	465.30	392.61
Total segment revenue	10,797.82	12,083.71
Less: Inter segment revenue	11.15	9.87
Revenue from operations	10,786.67	12,073.84
Add: Unallocable income	119.42	106.06
Total revenue Segment profts	10,906.09	12,179.90
(Proft before interest and tax from each segment)
a) Technical textiles business (TTB)	273.68	261.20
b) Chemicals business (CB)	1,628.48	2,340.30
c) Packaging flms business (PFB)	122.55	332.35
d)Others	93.02	34.82
Total segment results	2,117.73	2,968.67

302

303

Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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

Year ended Year ended
March 31, 2024 March 31, 2023
Less: i) Interest and finance charges 235.60 175.82
----- End of picture text -----

Less: ii)Other unallocable expenses net of income	164.25	136.99
Proft before tax	1,717.88	2,655.86
Capital expenditure
a) Technical textiles business (TTB)	215.59	134.03
b) Chemicals business (CB)	1,650.43	2,141.82
c) Packaging flms business (PFB)	44.58	224.21
d) Others	16.52	2.46
e)Unallocated	8.74	20.18
Total	1,935.86	2,522.70
Depreciation and amortisation
a) Technical textiles business (TTB)	45.26	41.62
b) Chemicals business (CB)	403.36	334.80
c) Packaging flms business (PFB)	84.14	70.36
d) Others	8.38	6.96
e)Unallocated	14.71	14.70
Total	555.85	468.44

Segment assets and liabilities

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

As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

Segment assets
a) Technical textiles business (TTB)	2,041.96	1,766.50
b) Chemicals business (CB)	10,689.28	9,623.78
c) Packaging flms business (PFB)	2,321.37	2,181.83
d)Others	178.30	164.98
Total	15,230.91	13,737.09
Unallocable assets	2,133.73	1,814.32
Total assets	17,364.64	15,551.41
Segment liabilities
a) Technical textiles business (TTB)	525.38	391.76
b) Chemicals business (CB)	1,033.67	1,320.97
c) Packaging flms business (PFB)	622.43	563.17
d)Others	41.60	52.53
Total	2,223.08	2,328.43
Unallocable liabilities	4,627.85	3,969.43
Total liabilities	6,850.93	6,297.86

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

B. Information about geographical business segments

	Year ended March 31, 2024	Year ended March 31, 2023
Revenue from operations
- India	5,917.29	5,912.85
- Germany	353.05	406.16
- USA	1,288.48	2,050.48
- Belgium	767.81	871.88
- Switzerland	659.98	873.20
- Others	1,800.06	1,959.27
	10,786.67	12,073.84

	As at March 31, 2024	As at March 31, 2023
Non current segment assets
- Within India	11,297.57	10,012.87
- Outside India	-	-
	11,297.57	10,012.87

Non-current segment assets includes property, plant and equipments, right-of-use assets, capital work in progress, intangible assets and other non current assets.

No single customer contributed 10% or more to the Company’s revenue for both financial years 2023-24 and 2022-23.

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

Revenue from major products Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

a)	Technical textiles business (TTB)
	Nylon tyre cord fabric/ Polyester tyre cord fabric/ Belting	1,652.37	1,630.11
	fabric
	Synthetic flament yarn including industrial yarn	207.05	233.33
	Others	5.52	0.84
b)	Chemicals business (CB)
	Speciality chemicals	3,666.07	4,164.95
	Fluorochemicals, Refrigerant gases and Allied products	2,072.82	2,557.00
	Industrial chemicals	343.39	429.50
	Others	9.24	0.25
c)	Packaging flms business (PFB)
	Packaging flms	2,148.95	2,402.66
d)	Others
	Laminated fabric,Coated fabric and other ancillaryactivities	460.51	387.45
		10,565.92	11,806.09

304

305

Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

36 EARNINGS PER SHARE (EPS)

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Year ended Year ended
March 31, 2024 March 31, 2023
Profit attributable to the equity holders of the Company used in 1,374.03 2,023.36
----- End of picture text -----

calculating basic earning per share and diluted earning per share
Weighted average number of equity shares for the purpose of	296,424,825	296,423,669
calculating basic and diluted earnings per share (numbers)
Basic and diluted earningsper share of face value`10 each	46.35	68.26

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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Particulars Land Buildings Plant and Total
equipment
----- End of picture text -----

Cost
Balance at April 1, 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
Additions / adjustments	6.49	5.21	9.73	21.43
Derecognition	-	(6.66)	(4.71)	(11.37)
Balance at March 31, 2024	162.56	43.98	130.89	337.43
Accumulated amortisation
Balance at April 1, 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
Depreciation expenses	1.89	6.68	23.14	31.71
Derecognition	-	(6.66)	(4.71)	(11.37)
Balance at March 31, 2024	7.96	26.41	54.47	88.84
Net Block
Balance at March 31, 2023	150.00	19.04	89.83	258.87
Balance at March 31, 2024	154.60	17.57	76.42	248.59

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

Lease liabilities included in the Balance Sheet

	As at March 31, 2024	As at March 31, 2023
Current	27.51	25.90
Non-current	81.75	96.53

The average incremental borrowing rate applied to lease liabilities during the year ranges from 8.03% to 8.41% (Previous year: ranges from 7.75% to 8.75%).

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Amounts recognised in Statement of Profit and Loss Year ended Year ended
March 31, 2024 March 31, 2023
Interest on lease liabilities (Refer note 26) 8.99 8.92
Depreciation expense (Refer note 27) 31.71 27.30
Expenses relating to short-term leases (Refer note 28) 10.62 6.66
Expenses relating to low-value assets (Refer note 28) 25.90 28.26
Amounts recognised in Cash Flow Statement Year ended Year ended
March 31, 2024 March 31, 2023
Total cash outflow for leases 37.11 32.47
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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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As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

Debt and lease liabilities	3,720.78	3,161.70
Less:
Cash and cash equivalents	361.77	527.25
Deposit accounts with maturity beyond three months upto twelve	25.22	0.21
months
Current investments	405.58	490.05
Net debt	2,928.21	2,144.19
Total equity	10,513.71	9,253.55
Net debt to equity ratio	0.28	0.23

306

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Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

38.2 Financial instruments by category

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

Financial assets Level of Notes Carrying value Fair value
hierarchy As at As at As at As at
March 31, March 31, March 31, March 31,
2024 2023 2024 2023
Measured at amortised cost
----- End of picture text -----

h Measured at amortised cost	ierarchy		As at March 31, 2024	As at March 31, 2023	As at March 31, 2024	As at March 31, 2023
Investments in bonds	1	d	50.11	-	50.28	-
Investments in equity instruments	3	d	2.50	-	2.50	-
Investment in optionally convertible	3	d	2.56	-	2.56	-
debentures
Trade Receivables		a	1,538.00	1,436.38	1,538.00	1,436.38
Cash and cash equivalents		a	361.77	527.25	361.77	527.25
Bank balances other than above		a	8.21	8.48	8.21	8.48
Loans		a,b	372.09	534.70	372.09	534.70
Other fnancialassets		a,b	343.68	305.07	343.68	305.07
			2,678.92	2,811.88	2,679.09	2,811.88
Measured at Fair value through
proft and loss
Investments in bonds	1	d	150.33	136.32	150.33	136.32
Investments in mutual funds	2	d	321.14	353.73	321.14	353.73
Derivativeinstruments	2	d	0.25	-	0.25	-
			471.72	490.05	471.72	490.05
Measured at Fair value through
Other comprehensive income
Investments in unquoted equity	3	d	0.05	4.16	0.05	4.16
instruments
Derivativeinstruments	2	d	48.03	0.89	48.03	0.89
			48.08	5.05	48.08	5.05

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

Financial liabilities Level of Notes Carrying value Fair value
hierarchy As at As at As at As at
March 31, March 31, March 31, March 31,
2024 2023 2024 2023
Measured at amortised cost
----- End of picture text -----

Measured at amortised cost			March 31, 2024	March 31, 2023	March 31, 2024	March 31, 2023
Borrowings	3	a,c	3,611.51	3,039.26	3,602.42	3,006.09
Trade payables		a	1,567.81	1,649.17	1,567.81	1,649.17
Other fnancial liabilities		a,b	398.84	474.77	398.84	474.77
			5,578.16	5,163.20	5,569.07	5,130.03
Measured at Fair value through
proft and loss
Derivativeinstruments	2	d	0.79	6.98	0.79	6.98
			0.79	6.98	0.79	6.98
Measured at Fair value through
Other comprehensive income
Derivativeinstruments	2	d	5.73	60.72	5.73	60.72
			5.73	60.72	5.73	60.72

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(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, 2024 and March 31, 2023.

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 and bonds.

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 : 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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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(iii) Unquoted equity investments and optionally convertible debentures: Fair value is determined based on the recoverable value as per agreement with the investee.

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

Reconciliation of Level 3 fair value measurements Unlisted equity
instruments
----- End of picture text -----

As at March 31, 2022	4.16
Purchase of investment	-
As at March 31, 2023	4.16
Sale of investment	(4.11)
As at March 31, 2024	0.05

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, 2024

(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 period of 12 month basis and for exposures between a period of 12 to 36 months, hedging is done based on specific exposure. The information is monitored by 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 summary quantitative data about the Company’s exposure to currency risk at the end of the reporting periods expressed in ` are as follows:

	Assets Liabilities Net Assets/ (Liabilities)
	As at March 31, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023
USD EUR JPY GBP	798.65 688.63 3,670.38 3,280.49 (2,871.73) (2,591.86) 90.91 285.40 428.44 592.77 (337.53) (307.37) - - 10.65 10.70 (10.65) (10.70) 2.18 5.25 0.30 5.63 1.88 (0.38)

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, 2024 Year ended March 31, 2023
	`strengthens<br>by 1%<br>`weakens by 1% `strengthens<br>by 1%<br>`weakens by 1%
Impact on proft / (loss) * USD EUR JPY GBP	7.33 (7.33) 9.59 (9.59) 1.09 (1.09) (0.91) 0.91 0.11 (0.11) 0.11 (0.11) (0.02) 0.02 0.00 (0.00)

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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Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

	Year ended March 31, 2024 Year ended March 31, 2023
	`strengthens<br>by 1%<br>`weakens by 1% `strengthens<br>by 1%<br>`weakens by 1%
Impact on equity (Other Comprehensive Income) USD 21.38 (21.38) 16.32 (16.32) EUR 2.30 (2.30) 3.98 (3.98)

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 a period 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, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023
USD / INR Sell forward EUR / USD Sell forward EUR / INR Sell forward	234 278 668.20 633.002,517.662,643.593,204.482,596.61 - 3 - 4.50 - 39.70 - - - 1 - 20.00 - 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, 2024

(All amounts in ` Crores, unless otherwise stated)

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

Year ended March 31, 2024 Year ended March 31, 2023
strengthens weakens strengthens weakens
by 1% by 1% by 1% by 1%
Impact on profit / (loss) for the
----- End of picture text -----

year
USD	1.84	(1.84)	2.63	(2.63)
EUR	-	-	0.40	(0.40)
Impact on equity (Other Comprehensive Income) USD	54.97	(54.97)	50.67	(50.67)
EUR	-	-	1.80	(1.80)

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 aggregates to 438.88 crores and floating interest loan aggregates to 2,139.67 crores (Previous year: Fixed interest loan 676.02 crores and Floating interest loan 1,422.36 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, 2024 Year ended March 31, 2023
loans Foreign loans Foreign
interest rate currency interest rate currency
increases by loans increases by loans
0.50 % interest rate 0.50 % interest rate
increases by increases by
0.15 % 0.15 %
Decrease in profit before tax by (1.00) (2.91) - (2.13)
----- 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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Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(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. In the year ended 31 March 2022, 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, were allowed to continue utilizing the facility until the maturity date, provided such date is before June 30, 2023. As of March 31, 2023, the Company had two long-term loan arrangements which are USD LIBOR benchmark linked and maturing after June 2023. Before this deadline, the management renegotiated one of these loans to the Secured Overnight Financing Rate (SOFR) benchmark and has prepaid the other loan before this timeline. Accordingly, the Interest rate swap contract (based on LIBOR linked loan which was prepaid) was also cancelled with a gain of ` 0.18 crores.

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 standalone 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<br>months<br>Nominal Amount<br>(`Crores)
	As at March 31, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023
IRS Contracts (USD)*	- 2 - 7.18 - 59.00 - -

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(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 [423 x 96] intentionally omitted <==

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

Hedging As at March 31, 2024 Year ended As at March 31, 2023 Year ended
instruments March 31, March 31,
2024 2023
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 instrument (liabilities) instrument instrument
is included recognised is included recognised
in OCI in OCI
----- End of picture text -----

			Other fnancial				Other fnancial
		48.03	assets			-	assets
Foreign exchange contracts	5,539.00		(current and non - current) Other fnancial	103.01	5,186.03		(current and non - current) Other fnancial	(181.89)
		(5.73)	liabilites (current and			(60.72)	liabilites (current and
			non - current)				non - current)
Foreign currency denominated creditors	134.11	(134.11)	Other fnancial liabilities (current)	4.58	182.44	(182.44)	Other fnancial liabilities (current and non-current)	(20.27)
Foreign currency denominated	2,233.66	(2,233.66)	Borrowings (current and non - current)	3.29	1,848.11	(1,848.11)	Borrowings (current and non - current)	(57.50)
loans
							Other
Interest rate swap contacts	-	-	-	(0.89)	59.00	0.89	fnancial assets (current and	(2.63)
							non - current)

Sensitivity on the above IRS contracts in respect of interest rate exposure is insignificant

Each of the above trades were 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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Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(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, 2024 Year ended March 31, 2024 As at March 31, 2023 Year ended March 31, 2023	As at March 31, 2024 Year ended March 31, 2024 As at March 31, 2023 Year ended March 31, 2023
	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	183.14 0.25 Other fnancial assets (current) 6.45 296.65 - Other fnancial assets (current) (10.63) (0.79) Other fnancial libilities (current) (6.98) Other fnancial libilities (current)
Movement of cash fow hedging reserve and cost of hedging reserve
Particulars		Cash fow hedging reserve Cost of hedging reserve
		As at March 31, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023
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 (including contract settled during the year) 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		(150.22) 34.49 4.67 1.65 (2.38) (24.15) - - - - (15.52) 14.15 120.92 (171.89) - - (0.89) (2.63) - - 39.03 41.61 13.83 (10.34) (28.77) (95.23) - - (32.19) 67.58 0.43 (0.79)
Closing Balance		(54.50) (150.22) 3.41 4.67

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(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, 2024 Year ended March 31, 2023
	Market price increase by 1% Market price decrease by 1% Market price increase by 1% Market price decrease by 1%

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 to 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.

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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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(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, 2024	As at March 31, 2023
Loans - current	6	2.74	2.74
Trade receivables	10	1.79	2.64
		4.53	5.38

Movement of loss allowance :

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

Loans (current Trade
and non current) receivables
----- End of picture text -----

As at April 1, 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
Provided during the year	-	-
Reversed / utilised during the year	-	(0.85)
As at March 31, 2024	2.74	1.79

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.

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(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, 2024	Less than 1year	More than 1 year and upto 5years	More than 5years	Total
Borrowings*	2,087.18	1,475.89	437.88	4,000.95
Lease Liabilities**	34.96	81.42	35.32	151.70
Trade payables	1,567.81	-	-	1,567.81
Derivative Liabilities	5.72	0.80	-	6.52
Other fnancial liabilities	398.84	-	-	398.84
	4,094.51	1,558.11	473.20	6,125.82

As at March 31, 2023	Less than 1year	More than 1 year and upto 5years	More than 5years	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

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

Contract liability Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

Opening balance	40.37	23.85
Revenue recognised that was included in the contract liability	(40.37)	(23.85)
balance at the beginning of the period
Increase due to cash received, excluding the amount recognised	23.21	40.37
as revenue duringtheperiod
Closing balance	23.21	40.37

Also refer note 10 for receivables purchase agreements entered into by the Company as a part of its liquidity risk management policy.

318

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Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

40 ADDITIONAL DISCLOSURES

(a) RESEARCH AND DEVELOPMENT EXPENDITURE

The details of research and development expenditure of 146.41 Crores (Previous year: 129.31 Crores) included in these financial statements are as under:

Year ended March 31, 2024	Year ended March 31, 2023
Capital expenditure 20.46	7.22
Revenue expenditure 125.95	122.09
146.41	129.31

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, 2024 March 31, 2023
----- End of picture text -----

Cost of material consumed	0.74	3.31
Salaries and wages, including bonus	56.21	51.23
Contribution to provident and other funds	3.74	3.21
Workmen and staf welfare expenses	4.60	8.92
Stores and spares consumed	5.61	3.66
Power and fuel	10.41	12.45
Rent	1.32	0.09
Repairs and maintenance
- Buildings	0.08	0.01
- Plant and machinery	12.39	12.68
- Others	2.05	0.96
Insurance	1.10	1.06
Rates and taxes	0.04	0.08
Travelling and conveyance	2.36	1.58
Legal and professional charges	5.34	3.47
Depreciation and amortisation expense	14.56	14.19
Interest cost	^	0.07
Miscellaneous expenses	5.40	5.12
	125.95	122.09

^ Absolute ` 19,704

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(b) MANAGERIAL REMUNERATION

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

Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

(a)	Remuneration to Chairman & Managing
	Director/ Joint Managing Director/ Whole time
	Directors
	Salary and contribution to provident and other funds	22.40	25.02
	Value of perquisites	2.08	2.18
	Commission	16.00	16.00
	SUB-TOTAL	40.48	43.20
(b)	Remuneration to Non Executive Directors
	Commission	1.26	1.16
	Directors’ sittingfees	0.21	0.27
	SUB-TOTAL	1.47	1.43
	TOTAL	41.95	44.63

ii) Computation of managerial remuneration in accordance with section 197 of the Companies Act, 2013

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

Year ended Year ended
March 31, 2024 March 31, 2023
Profit before taxation 1,717.88 2,655.86
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Add: Managerial remuneration including commission	41.95	44.63
Add: Amounts specifed under section 198(2)	3.42	4.06
Less: Amounts specifed under section 198(5)	15.80	42.73
Proft as per section 197 of the Companies Act, 2013	1,747.45	2,661.82
Maximum remuneration as commission and/ or salary including	174.75	266.18
perquisites @ 10% of net proft of`1,747.45 crores (Previous
year:`2,661.82 crores) which can be paid to Managing
Directors/ Whole time Directors under section 197 of the 2013
Act
Remuneration paid/ payable to Managing Directors /	40.48	43.20
Whole Time Directors
Maximum remuneration payable to Non-Executive Directors @	17.47	26.62
1% of net proft of`1,747.45 crores (Previous year:`2,661.82
crores) under section 197 of the 2013 Act
Remunerationpaid/ payable to Non-Executive Directors	1.47	1.43

(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.

320

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Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

Exchange loss/ (gain) added/ (adjusted)	Year ended March 31, 2024	Year ended March 31, 2023
Property, plant and equipment
- Plant and equipment	1.15	10.53
	1.15	10.53

The cumulative exchange loss/ (gain) added/ (adjusted) and remaining unamortised as at March 31, 2024 is 110.84 Crores (Previous year: 120.43 Crores).

(d) Disclosures pursuant to section 186(4) of the Companies Act, 2013 and regulations 34(3) and 53(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, as applicable:
(i) Details of guarantees:

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

Nature of Guarantees Purpose
Refer note 31 (d) above To secure the financial 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.
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(iii) Details of unsecured loans given:

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

Particulars of loans Terms As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

SRF Global BV	Principal amount repayable in
(denominated in USD) -	March 2025 (Previous year:
given for repayment of	Principal amount repayable in
existing borrowings and	March 2025).
general corporate purpose
	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		246.63	397.58
Given during the year		-	-
Received back during the year		-	(181.69)
Foreign currency exchange		3.52	30.74
fuctuation gain / (loss)
As at end of the year		250.15	246.63
Maximum balance outstanding		250.15	397.58

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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Particulars of loans Terms As at As at
March 31, 2024 March 31, 2023
----- End of picture text -----

SRF Global BV	Nil (Previous year: Principal
(denominated in EUR) -	amount repayable in June 2023).
given for repayment of existing borrowings	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		178.77	168.14
Given during the year		-	-
Received back during the year		(202.77)	-
Foreign currency exchange		24.00	10.63
fuctuation gain / (loss)
As at end of the year		-	178.77
Maximum balance outstanding		202.77	178.77
SRF Altech Limited	Principal and interest is repayable
(denominated in INR) -	on demand. Interest rate is
given for general purpose	7.48%.to 8.05% (Previous year:
and capital expenditure	Interest rate is 6.00% to 7.48%)
As at the beginning of the year		54.96	-
Given during the year		365.04	278.16
Received back during the year		(360.00)	(223.20)
As at end of the year		60.00	54.96
Maximum balance outstanding		195.00	147.16

(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, 2024 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 material impact on the financial statements, particularly on the amount of tax expense and provision for taxation.

322

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(f) Disclosure on corporate social responsibility expense:

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

Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

(i)	Prescribed CSR expenditure as per Section 135 of the	Prescribed CSR expenditure as per Section 135 of the	41.04	28.56
	Companies Act, 2013
(ii)	Amount approved by the Board to be spent during the year		41.04	28.56
(iii)	(a)	Actual amount spent during the year on construction /	13.24	11.35
		acquisition of an asset
(iii)	(b)	Actual amount spent during the year on purposes	18.27	17.28
		other than construction / acquisition of an asset
(iv)	Amount unspent during the year		9.51	-
(v)	Details of expenditure:
	- In	respect of ongoing projects :
	a)	Amount required to be spent during the year	21.69	-
	b)	Actual amount spent during the year from Company's	12.18	-
		bank account
	c)	Remaining unpaid at the end of the year with the	9.51	-
		Company *
	- In	respect of other than ongoing projects:
	a)	Amount required to be spent during the year	19.35	28.63
	b)	Actual amount spent during the year from Company's	19.33 ^	28.63
		bank account

(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, etc. (vii) Details of related party transactions (Refer Note no 32.2) 25.70 28.23

Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, the unspent amount has been subsequently deposited in a “Unspent CSR Account”. ^ Out of 0.07 crore excess CSR spent during the previous year, an amount of 0.02 crore have been utilised in current financial year.
(g) In December 2023, the operations of Technical Textile Business plant, located in Manali Industrial Area, Chennai, Tamil Nadu, were disrupted due to cyclone with flooding and waterlogging in the plant premises. This incident led to damage of certain items of Property, Plant and Equipment and Inventory. Plant operations were resumed in a phased manner by February 2024. The Company is covered under its insurance policy on a ‘Reinstatement Value basis’ against the estimated losses. Based on the current best estimates of the management, expected loss has been considered in these standalone financial statements under the respective heads (net of claim recoverable) as below:

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

	Year ended March 31, 2024
Loss of inventories and property, plant and equipment recognised	38.84
Repair and restoration expenses incurred till March 31,2024	16.56
	55.40
Related insurance claim(excludingadjustment of deductible)	51.40

The Company is in the process of replacement / reinstatement of assets and accordingly, any additional cost towards further repair and maintenance, replacement of items of property, plant and equipment, other incidental costs and adjustment from change in estimates (including for insurance claim receivable from insurer) would be considered in the period of incurrence / change.

(h) OTHER STATUTORY INFORMATION

(i) Analytical ratios:

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

Particulars Year ended Year ended % Reason for
March 31, March 31, change change,
2024 2023 wherever
more than 25%
----- End of picture text -----

(i)	Current ratio (Total current assets /	1.23	1.44	(14.02)%	Not applicable
	Total current liabilities)
(ii)	Debt-equity ratio (Total debt including	0.35	0.34	3.58%	Not applicable
	lease liabilities / Total equity)
(iii)	Debt service coverage ratio [(Earnings	3.34	3.09	8.14%	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	13.90%	23.98%	(42.02)%	Proftability during
	/ Average equity)				the year was
					lower than last
					year, impacting
					the ratio
(v)	Inventory turnover ratio (Sale of	5.64	6.56	(14.09)%	Not applicable
	products / Average inventory)
(vi)	Trade receivables turnover ratio (Sale of products / Average trade receivables)	7.10	8.47	(16.13)%	Not applicable
(vii)	Trade payables turnover ratio	3.20	3.71	(13.75)%	Not applicable
(viii)	(Purchases of raw materials / Average trade payables) Net capital turnover ratio (Sale of products / Working capital)	11.15	7.77	43.42%	Better management of working capital during the current fnancial year

324

325

Annual Report [2023-24]

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Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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

Particulars Year ended Year ended % Reason for
March 31, March 31, change change,
2024 2023 wherever
more than 25%
(ix) Net profit ratio (Profit after tax / Total 12.74% 16.76% (23.99)% Not applicable
----- End of picture text -----

(ix)	Net proft ratio (Proft after tax / Total	2024 12.74%	2023 16.76%	(23.99)%	wherever more than 25% Not applicable
	revenue from operations including
	other operating income)
(x)	Return on capital employed [Earnings before interest and tax / (Total equity	13.02%	21.68%	(39.95)%	Current year proftability was
	- other intangible assets - goodwill +				lower. Also capital
	total debt + deferred tax liability)]				expenditure made
					during the year
					led to higher
					capital employed,
					impacting the
					ratio
(xi)	Return on investment * (Income	7.45%	6.02%	23.73%	Not applicable
	generated from investments /
	Weighted average investments)

Mutual funds, bonds and debentures are considered for the purpose of computing return on investment.

(ii) There are no title deeds of immovable property which are not held in name of the Company.

(iii) The Company does not have any transactions with companies which are struck off, except the following:

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

Name of the struck off Nature of Balance Balance Relationship
company transactions outstanding outstanding with the struck
with struck off as at March as at March off company,
company 31, 2024 31, 2023 if any
----- End of picture text -----

Jyotsna Engineers &	Advance given	^	^ Vendor
Consultants Private Limited
Krishna Freeze Private Limited	Advance received	0.02	0.02 Customer
Perfect Refcon & Tools Private	Advance received	0.01	0.01 Customer
Limited
Shree Krishna Well Pack	Payables	-	0.03 Vendor
Private Limited**
Shakun and Company Services	Advance given	-	* Vendor
Private Limited**
Crownstar Industries Private	Payables	0.01	- Vendor
Limited

^ Amount in absolute 2,000 (Previous year: 2,000)

Amount in absolute ` 618

** Restored during the current year

(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.

Notes to the Standalone Financial Statements

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(vi) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(vii) The Company has complied with the number of layers prescribed under section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.
(viii) There are no funds which have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or
b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ix) There are no funds which have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall:
a) directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or
b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(x) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
(xi) The Company has not traded or invested in crypto currency or virtual currency during the financial year.
(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 B S R & Co. LLP Chartered Accountants ICAI Firm registration no. 101248W/W-100022

For and on behalf of the Board of Directors

Place : Gurugram Date : May 07, 2024

(v) The Company is not declared a wilful defaulter by any bank or financial institution or any other lender.

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Annual Report [2023-24]

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Independent Auditor’s Report

Basis for Opinion

To the Members of SRF Limited

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 31 March 2024, 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 material accounting policies and other explanatory information (hereinafter referred to as “the consolidated financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports of other auditors on separate financial statements of such subsidiaries as were audited by the other auditors, the aforesaid consolidated financial statements give the information required by the Companies Act, 2013 (“Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group as at 31 March 2024, of its consolidated profit and other comprehensive income, consolidated changes in equity and consolidated cash flows for the year then ended.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment and based on the consideration of reports of other auditors on separate financial statements of components audited by them, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

1. Accounting for derivatives See Note 39 to conso lidated financial statements

Key audit matter

How the matter was addressed in our audit

The Group uses derivative financial instruments to mitigate foreign currency risk primarily through foreign currency forward exchange contracts. Further, the Group uses hedge relationship designation as per criteria set out in relevant Indian accounting standards. Accounting thereof, including assessment of hedge effectiveness, and related presentation and disclosures of these transactions require significant judgement. Given the significant level of judgement and estimation involved and the quantitative significance, we have determined this to be a key audit matter.

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:

i. 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.

ii. 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.

iii. 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.
iv. Assessed the adequacy of disclosures in the financial statements in respect of both non- derivative and derivative ancial instruments. fin

2. Assessment of uncertain tax position on taxability of income from sale of Carbon emission reduction (“CER”) certificates See Note 30 to conso lidated financial statements Key audit matter How the matter was addressed in our auditow the matter was addressed in our auditw the matter was addressed in our auditour auditur audit

How the matter was addressed in our auditow the matter was addressed in our auditw the matter was addressed in our auditour auditur audit In view of the significance of the matter, we applied the following audit procedures, among others, to obtain sufficient appropriate audit evidence:

The Holding Company has an uncertain tax position with regard to taxability of income from sale of Carbon Emission Reduction (CER) certificates related to certain past years. Assessment of such positions involves significant judgement based on a number of factors, including, interpretation of tax laws, status of assessment of each year by income- tax authorities, evaluation of company- specific orders, and judicial precedents.

Tested the design, implementation and operating effectiveness of controls over analysis of uncertain tax position and measuring tax benefits.

Obtained status of litigations for relevant assessment years where this uncertain tax position has been identified and management assessment on such tax positions.

As explained in note 30 of the consolidated financial statements, based on assessment of relevant factors, the Holding Company has decided to reverse the provision for tax recognised in respect of two assessment years. The above note also explains related uncertainties associated with the matter, including, those pertaining to outcome for other assessment years.

Evaluated, with the assistance of specialists, Holding Company’s uncertain tax position by performing the following: (i) Identifying key judgements underlying uncertain tax position.

(ii) Evaluating relevant factors taken into consideration by the Holding Company in its probability assessment of uncertain tax position, including status of different assessment years, position taken by tax authorities in company-specific tax assessments and industry precedents.

Given the significant level of judgement involved and the quantitative significance, we have determined this to be a key audit matter.

(iii) Evaluating Holding Company’s method of measuring the amount of reversal of provision for tax, including underlying data and past tax filings.
(iv) Based on the above, evaluating whether Holding Company’s assessment of tax uncertainties and resulting conclusions are consistent with our assessment, after taking into consideration current facts and circumstances.

328

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Other Information

The Holding Company’s Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Holding Company’s annual report, but does not include the financial statements and auditor’s report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed and based on the 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.

Management’s and Board of Directors’ Responsibilities for the Consolidated Financial Statements

The Holding Company’s Management and Board of Directors are responsible for the preparation and presentation of these consolidated financial statements in term of the requirements of the Act that give a true and fair view of the consolidated state of affairs, consolidated profit/ loss and other comprehensive income/ 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 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 regarding the financial statements of such entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of such entities included in the consolidated financial statements of which we are the independent auditors. For the other entities included in the consolidated financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
Our responsibilities in this regard are further described in paragraph (a) of the section titled “Other Matters” in this audit report.

We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated financial statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

a. We did not audit the financial statements of seven subsidiaries, whose financial statements reflect total assets (before consolidation adjustments) of 3,824.35 crores as at 31 March 2024, total revenues (before consolidation adjustments) of 2,508.31 crores and net cash outflows (before consolidation adjustments) amounting to ` 46.05 crores for the year ended on that date, as considered in the consolidated financial statements. These financial statements have been audited by other auditors whose reports have been furnished to us by the Management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, and our report in terms of sub-section (3) of Section 143 of the Act, in so far as it relates to the aforesaid subsidiaries is based solely on the reports of the other auditors.

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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.

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.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the “Annexure A” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2 A. As required by Section 143(3) of the Act, based on our audit and on the consideration of reports of the other auditors on separate financial statements of such subsidiaries, as were audited by other auditors, as noted in the “Other Matters” paragraph, we report, to the extent applicable, that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements.
b. In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements

have been kept so far as it appears from our examination of those books and the reports of the other auditors except for the matter stated in the paragraph 2(B)(f) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.

c. The consolidated balance sheet, the consolidated statement of profit and loss (including other comprehensive income), the consolidated statement of changes in equity and the consolidated statement of cash flows dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements.
d. In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under Section 133 of the Act.
e. On the basis of the written representations received from the directors of the Holding Company as on 31 March 2024 taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors of its subsidiary companies incorporated in India, none of the directors of the Group companies incorporated in India is disqualified as on 31 March 2024 from being appointed as a director in terms of Section 164(2) of the Act.
f. The modification relating to the maintenance of accounts and other matters connected therewith are as stated in the paragraph 2A(b) above on reporting under Section 143(3)(b) and paragraph 2B(f) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
g. With respect to the adequacy of the internal financial controls with reference to financial statements of the Holding Company and its subsidiary companies incorporated in India and the operating effectiveness of such controls, refer to our separate Report in “Annexure B”.
B. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules,

2014, in our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on separate financial statements of the subsidiaries, as noted in the “Other Matters” paragraph:

manner whatsoever by or on behalf of the Holding Company or any of such subsidiaries (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

a. The consolidated financial statements disclose the impact of pending litigations as at 31 March 2024 on the consolidated financial position of the Group. Refer Note 32 to the consolidated financial statements.
a. statements (ii) The respective management of the disclose the impact of pending litigations Holding Company and its subsidiary as at 31 March 2024 on the consolidated companies incorporated in India financial position of the Group. Refer Note whose financial statements have 32 to the consolidated financial statements. been audited under the Act have represented to us and the other auditor
b. Provision has been made in the consolidated financial statements, as required under of such subsidiary company that, to the best of its knowledge and belief,
the applicable law or Ind AS, for material foreseeable losses, on long-term as disclosed in the Note 44(g)(ii) to contracts including derivative contracts. the consolidated financial statements, Refer Note 39 to the consolidated financial no funds have been received by the Holding Company or any of such
statements in respect of such items as it subsidiaries from any person(s)
relates to the Group. or entity(ies), including foreign
c. There has been no delay in transferring entities (“Funding Parties”), with the amounts to the Investor Education and understanding, whether recorded in Protection Fund by the Holding Company writing or otherwise, that the Holding during the year ended 31 March 2024. Company or any of such subsidiaries There are no amounts which are required shall directly or indirectly, lend or to be transferred to the Investor Education invest in other persons or entities and Protection Fund by subsidiary identified in any manner whatsoever companies incorporated in India during the by or on behalf of the Funding Parties year ended 31 March 2024. (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
d (i) The respective management of the behalf of the 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 39 to the consolidated financial statements in respect of such items as it relates to the Group.
d (i) The respective management of the Holding Company and its subsidiary companies incorporated in India whose financial statements have been audited under the Act have represented to us and the other auditor of such subsidiary company that, to the best of its knowledge and belief, as disclosed in the Note 44(g)(i) to the consolidated 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 Holding Company or any of such subsidiaries 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
(iii) Based on the audit proceduresthat 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.

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f. Based on our examination which included test checks and that performed by the respective auditor of a subsidiary company which is a Company incorporated in India whose financial statements have been audited under the Act by another auditor, except for the instances mentioned below, the Holding Company and its Indian subsidiary companies have used accounting softwares for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the respective softwares:
(i) In respect of the Holding Company and its subsidiary companies incorporated in India, the feature of audit trail (edit log) facility was not enabled throughout the year in the accounting softwares used for maintaining the books of account relating to general ledger and other related records, for certain tables relating to areas, such as, inventory, purchase and payables and certain master tables. Further, the feature of recording audit trail (edit log) facility was not enabled for the period from 1 April 2023 to 11 April 2023 for certain tables relating to areas such as receivables, property plant and equipment, intangible assets, sale and purchase invoices, journal entries etc.
(ii) In respect of the Holding Company and one subsidiary Company incorporated in India, the feature of audit trail (edit log) facility was not enabled throughout the year in the database layer of the software used for maintaining the books of account relating to payroll, to log any direct data changes. Further, the feature of audit trail (edit log) facility

was enabled at the application layer, however, due to limitations in the system configuration, we are unable to comment whether the audit trail feature operated throughout the year.

  - (iii)  In respect of the Holding Company and its subsidiary Companies incorporated in India, in case of the edit logs generated by the accounting softwares, only an authorised privileged user had rights to make direct changes to the edit log. However, the feature of audit trail (edit log) facility for recording any such changes was not enabled throughout the year, and hence, we are unable to determine whether any direct changes to the edit logs were made during the year.

     - For the periods where audit trail (edit log) facility was enabled and operated for the respective accounting softwares, we did not come across, subject to our comment in sub-paragraph (iii) above, any instance of the audit trail feature being tampered with.

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 report 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.

Annexure A to the Independent Auditor’s Report on the Consolidated Financial Statements of SRF Limited for the year ended 31 March 2024

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

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:24090075BKGTYO3884

Place: Gurugram Date: 07 May 2024

For B S R & Co. LLP Chartered Accountants Firm’s Registration No.:101248W/W-100022

Kaushal Kishore Partner Place: Gurugram Membership No.: 090075 Date: 07 May 2024 ICAI UDIN:24090075BKGTYO3884

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Annexure B to the Independent Auditor’s Report on the consolidated financial statements of SRF Limited for the year ended 31 March 2024

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

to financial 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)(g) 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 31 March 2024, 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 31 March 2024, 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

assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained and the audit evidence obtained by the other 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 Financial Statements A company’s internal financial controls with reference to financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Generally Accepted Accounting Principles (GAAP). A company’s internal financial controls with reference to financial statements include those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3)

Place: Gurugram Date: 07 May 2024

Inherent Limitations of Internal Financial Controls with Reference to Financial Statements

Other Matter

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 in so far 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.

Our opinion is not modified in respect of above matter.

For B S R & Co. LLP Chartered Accountants Firm’s Registration No.:101248W/W-100022

Kaushal Kishore Partner Membership No.: 090075 ICAI UDIN:24090075BKGTYO3884

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Consolidated Balance Sheet

as at March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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Particulars Note No. As at As at
March 31, 2024 March 31, 2023
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ASSETS
Non-current assets
Property, plant and equipment	4	12,845.46	9,647.86
Right-of-use assets	41	276.64	287.21
Capital work-in-progress	4.1	805.33	2,405.54
Other intangible assets	5	119.52	114.73
Financial assets
(i) Investments	6	121.12	4.16
(ii) Loans	7	50.04	44.82
(iii) Other fnancial assets	9	197.60	68.21
Deferred tax assets (net)	8	27.56	18.65
Other tax assets (net)	21	210.96	91.26
Other non-current assets	10	178.42	297.13
Total non-current assets		14,832.65	12,979.57
Current assets
Inventories	11	2,326.47	2,274.29
Financial assets
(i) Investments	6	405.58	490.05
(ii) Trade receivables	12	1,942.82	1,785.62
(iii) Cash and cash equivalents	13	399.33	607.98
(iv) Bank balances other than above	14	8.21	8.48
(v) Loans	7	13.09	11.02
(vi) Other fnancial assets	9	198.03	234.84
Other current assets	10	355.76	362.67
Total current assets		5,649.29	5,774.95
TOTAL ASSETS		20,481.94	18,754.52
EQUITY AND LIABILITIES
Equity
Equity share capital	15	297.44	297.44
Other equity	16	11,181.58	10,029.61
Total equity		11,479.02	10,327.05
Liabilities
Non-current liabilities
Financial liabilities
(i) Borrowings	17	2,251.14	2,311.52
(ii) Lease liabilities	41	82.79	97.57
(iii) Other fnancial liabilities	20	0.80	159.47
Provisions	18	71.39	60.80
Deferred tax liabilities (net)	8	938.72	809.22
Other non-current liabilities	22	177.31	72.29
Total non-current liabilities		3,522.15	3,510.87

Consolidated Balance Sheet (Contd.)

as at March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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Particulars Note No. As at As at
March 31, 2024 March 31, 2023
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Current liabilities
Financial liabilities
(i) Borrowings	17	2,669.10	2,042.54
(ii) Lease liabilities	41	27.51	25.90
(iii) Trade payables	19
a) Total outstanding dues of micro enterprises and small		84.57	67.79
enterprises
b) Total outstanding dues of creditors other than micro		2,113.19	2,163.48
enterprises and small enterprises
(iv) Other fnancial liabilities	20	467.42	485.56
Other current liabilities	22	93.61	108.79
Provisions	18	8.77	7.91
Current tax liabilities(Net)	21	16.60	14.63
Total current liabilities		5,480.77	4,916.60
Total Liabilities		9,002.92	8,427.47
TOTAL EQUITY AND LIABILITIES		20,481.94	18,754.52
Summary of material accounting policies	2-3
See accompanying notes to the consolidated fnancial	4 to 44
statements

As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board of Directors Chartered Accountants ICAI Firm registration no: 101248W/W-100022

Kaushal Kishore

Ashish Bharat Ram

Kartik Bharat Ram

Raj Kumar Jain

Partner Chairman and Joint Managing Director Director Membership No: 090075 Managing Director DIN - 00008557 DIN - 01741527 DIN - 00671567

Place : Gurugram Rahul Jain Rajat Lakhanpal Date : May 07, 2024 President & CFO Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 07, 2024

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Consolidated Statement of Profit and Loss

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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Particulars Note No. Year ended Year ended
March 31, 2024 March 31, 2023
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I	Revenue from operations	23	13,138.52	14,870.25
II	Other income	24	83.02	74.93
III	Total Income (I + II)		13,221.54	14,945.18
IV	Expenses
	Cost of materials consumed	25.1	6,695.60	7,125.21
	Purchases of stock-in-trade	25.2	118.56	277.22
	Changes in inventories of fnished goods, work-in-progress	25.3	(105.38)	(8.92)
	and stock-in-trade
	Employee benefts expense	26	935.03	813.80
	Finance costs	27	302.29	204.82
	Depreciation and amortisation expense	28	672.62	575.32
	Other expenses	29	2,910.60	3,133.74
	Total Expenses (IV)		11,529.32	12,121.19
V	Proft before tax (III - IV)		1,692.22	2,823.99
VI	Tax expense	30
	Current tax		265.58	614.88
	Deferred tax
	- MAT credit entitlement		-	(94.13)
	- Others		90.93	140.90
	Total tax expense		356.51	661.65
VII	Proft for the year (V - VI)		1,335.71	2,162.34
VIII	Other comprehensive income
A	Items that will not be reclassifed to proft or loss
	(i) Gain /(loss) on remeasurements of the defned beneft obligation	16.2, 35.2	(5.92)	(11.95)
	Income tax on item (i) above	16.2, 31	1.19	4.24
B	Items that will be reclassifed to proft or loss
	(i) Exchange diferences on translating fnancial	16.8	(69.08)	(7.32)
	statements of foreign operations
	(ii) Efective portion of gains / (losses) on designated portion of hedging instruments in a cash fow hedge	16.3	128.47	(252.41)
	Income tax on item (ii) above	31	(32.19)	67.58

Consolidated Statement of Profit and Loss (Contd.) for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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Particulars Note No. Year ended Year ended
March 31, 2024 March 31, 2023
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	(iii) Cost of hedging reserve	16.4	(1.77)	5.02
	Income tax on item (iii) above	31	0.43	(0.79)
Total other comprehensive income / (loss) for the year,			21.13	(195.63)
net	of taxes (A)+(B)
IX	Total comprehensive income for the year		1,356.84	1,966.71
	(VII + VIII)
	Basic and Diluted earning per equity share (in`)	38	45.06	72.95
Summary of material accounting policies		2-3
See	accompanying notes to the consolidated fnancial	4 to 44

See accompanying notes to the consolidated financial 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

Raj Kumar Jain

Chairman and Joint Managing Director Director Managing Director DIN - 00008557 DIN - 01741527 DIN - 00671567

Partner Membership No: 090075

Place : Gurugram Date : May 07, 2024

Rahul Jain President & CFO

Rajat Lakhanpal

Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 07, 2024

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Consolidated Statement of Cash Flows

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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Particulars Year ended Year ended
March 31, 2024 March 31, 2023
A CASH FLOWS FROM OPERATING ACTIVITIES
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	Proft before tax Adjustments for:	1,692.22	2,823.99
	Finance costs	302.29	204.82
	Interest income	(26.24)	(44.70)
	Net gain on sale of property, plant and equipment Net gain on fnancial assets measured at fair value through proft and loss Credit impaired assets provided / (written back)	(4.74) (22.88) 4.22	(6.00) (9.10) 2.56
	Amortisation of grant income	(20.49)	(5.04)
	Depreciation and amortisation expense	672.62	575.32
	Property, plant and equipment /inventory and other assets provided /written of /(written back) Provision / liabilities no longer required written back Net unrealised currency exchange fuctuations (gain) / loss Employee share based payment expense	12.01 (12.54) (14.25) 8.54	3.87 (27.44) (56.97) 8.41
	Stamp duty on purchase of investments	0.13	0.07
	Changes in working capital :
	Adjustments for (increase) /decrease in operating assets :
	Trade receivables	(168.71)	(2.15)
	Inventories	(74.18)	(130.70)
	Loans (current)	(1.88)	(2.26)
	Loans (non-current)	(5.40)	(30.76)
	Other assets (current)	74.59	(118.05)
	Other assets (non-current)	(17.81)	(23.62)
	Adjustments for increase / (decrease) in operating liabilities :
	Trade payables	(14.24)	122.10
	Provisions	10.70	9.71
	Other liabilities (non-current)	-	(0.34)
	Other liabilities (current)	82.46	115.70
	Cash generated from operations	2,476.42	3,409.42
	Income taxes paid (net of refunds)	(382.56)	(507.71)
	Net cash generated from operating activities	2,093.86	2,901.71
B	CASH FLOWS FROM INVESTING ACTIVITIES
	Purchase of non-current investments	(135.27)	-
	Sale of non-current investments	4.11	-
	Net sale / (purchase) of mutual funds	107.34	(164.21)
	Stamp duty on purchase of investments	(0.13)	(0.07)
	Interest received	26.51	27.25
	Bank balances not considered as cash and cash equivalents	(3.15)	27.49
	Payment for purchase of property, plant, equipment, capital	(2,216.93)	(2,838.18)
	work-in-progress and intangible assets
	Deposits made with Non Banking Financial Company	(25.00)	-
	Upfront payment made for acquisition of Right of use asset	-	(27.57)
	Proceeds from disposal of property, plant and equipment	15.19	13.88
	Net cash used in investing activities	(2,227.33)	(2,961.41)
C.	CASH FLOWS FROM FINANCING ACTIVITIES
	Proceeds from issue of shares	-	^^
	Proceeds from long term borrowings	1,002.67	932.42
	Repayment of long term borrowings	(497.16)	(758.78)
	Net proceeds of short term borrowings	34.92	486.22
	Dividends on equity share capital paid	(213.71)	(213.32)
	Principal payment towards lease liability	(37.18)	(32.47)
	Finance costs paid Net cash generated / (used in) from fnancing activities	(361.24) (71.70)	(194.49) 219.58
D.	EFFECT OF EXCHANGE RATE MOVEMENTS	(3.48)	(2.38)
	Net (decrease) / increase in cash and cash equivalents	(208.65)	157.50
	Cash and cash equivalents at the beginning of the year	607.98	450.48
	Cash and cash equivalents at the end of the year (Refer to note 13)	399.33	607.98

Consolidated Statement of Cash Flows (Contd.) for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

Notes:

(i) The statement of cash flows 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 31.51 crores (Previous year: 28.63 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 April 1, 2023 Cash fows from fnancing activities	Non-cash changes As at March 31, 2024 Upfront fees amortised Exchange fuctuation changes# Finance cost# Interim dividend declared Lease liability recognised
Equity share capital 297.44 - - - - - - 297.44 Security Premium 509.56 - - - - - - 509.56 Non current borrowings^ 2,802.78 505.51 3.72 15.66 - - - 3,327.67 Current borrowings* 1,551.28 34.92 - 6.37 - - - 1,592.57 Interest accrued 14.80 (361.24) - (2.59) 372.44 - - 23.41 Lease liability 123.47 (37.18) - - 9.07 - 14.94 110.30 Dividend 6.83 (213.71) - - - 213.43 - 6.55
Total 5,306.16 (71.70) 3.72 19.44 381.51 213.43 14.94 5,867.50

Particulars As at April 1, 2022 Cash fows from fnancing activities	Non-cash changes As at March 31, 2023 Upfront fees amortised Exchange fuctuation changes# Finance cost# Interim dividend declared Lease liability recognised
Equity share capital 297.44 ^^ - - - - - 297.44 Security Premium 509.56 - - - - - - 509.56 Non current borrowing^ 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

^^ Amount in absolute ` 38,000
^ including current maturities of long term borrowings
excluding current maturities of long term borrowings
including amount capitalized

Summary of material accounting policies See accompanying notes to the consolidated financial statements

2-3

4 to 44

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

Raj Kumar Jain

Partner Chairman and Joint Managing Director Director Membership No: 090075 Managing Director DIN - 00008557 DIN - 01741527 DIN - 00671567

Place : Gurugram Date : May 07, 2024

Rahul Jain

Rajat Lakhanpal

President & CFO Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 07, 2024

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Consolidated Statement Of Changes In Equity

for the year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(a) Equity share capital

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Amount
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Balance at April 1, 2022	297.44
Changes in equityshare capital duringtheyear	^
Balance at March 31, 2023	297.44
Changes in equityshare capital duringtheyear	-
Balance at March 31, 2024	297.44

^ Amount in absolute ` 38,000

(b) Other Equity

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Reserves and Surplus Items of other comprehensive income
Employee Exchange
Particulars Capital reserve General reserve redemption reserveCapital redemption Debenture reserve Securities Premium payment reservebased share Retained earnings on translating statements of differences financial comprehensive through other instruments Equity portion of cash flow Effective hedge hedging reserveCost of Total
income
foreign operations
Balance at April 1, 2022 193.77 648.77 10.48 62.50 509.56 3.22 6,785.77 23.07 (4.22) 34.49 0.51 8,267.92
Profit for the year - - - - - - 2,162.34 - - - 2,162.34
Other comprehensive income for the year, - - - - - - (7.71) (7.32) - (184.83) 4.23 (195.63)
----- End of picture text -----

Balance at April 1, 2022 Proft for the year Other comprehensive income for the year,	193.77 - -	648.77 - -	10.48 - -	62.50 - -	509.56 - -	3.22 - -	6,785.77 2,162.34 (7.71)	23.07 - (7.32)	(4.22) - -	34.49 - (184.83)	0.51 4.23	8,267.92 2,162.34 (195.63)
net of income tax
Total comprehensive income for	-	-	-	-	-	-	2,154.63	(7.32)	-	(184.83)	4.23	1,966.71
the year
Dividend ^	-	-	-	-	-	-	(213.43)	-	-	-	-	(213.43)
Employee share based payment expense	-	-	-	-	-	8.41	-	-	-	-	-	8.41
Transfer from Debenture redemption	-	62.50	-	(62.50)	-	-	-	-	-	-	-	-
reserve to General reserve
Balance at March 31, 2023 Proft for the year Other comprehensive income / (loss) for	193.77 - -	711.27 - -	10.48 - -	- - -	509.56 - -	11.63 - -	8,726.97 1,335.71 (4.73)	15.75 - (69.08)	(4.22) - -	(150.34) - 96.28	4.74 (1.34)	10,029.61 1,335.71 21.13
the year, net of income tax
Total comprehensive income for	-	-	-	-	-	-	1,330.98	(69.08)	-	96.28	(1.34)	1,356.84
the year
Dividend ^	-	-	-	-	-	-	(213.43)	-	-	-	-	(213.43)
Employee share based payment expense	-	-	-	-	-	8.56	-	-	-	-	-	8.56
Balance at March 31, 2024	193.77	711.27	10.48	-	509.56	20.19	9,844.52	(53.33)	(4.22)	(54.06)	3.40	11,181.58
* Refer note 16
^ Refer note 15.1
Summary of material accounting policies See accompanying notes to the consolidated fnancial statements							2-3 4 to 44

As per our report of even date attached

For B S R & Co. LLP For and on behalf of the Board of Directors

Chartered Accountants ICAI Firm registration no: 101248W/W-100022

Kaushal Kishore

Ashish Bharat Ram Kartik Bharat Ram Raj Kumar Jain Chairman and Joint Managing Director Director Managing Director DIN - 00008557 DIN - 01741527 DIN - 00671567

Partner

Membership No: 090075

Place : Gurugram Rahul Jain Date : May 07, 2024 President & CFO

Rajat Lakhanpal

Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 07, 2024

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

Defined benefit plans - plan assets measured at fair value less present value of defined benefit obligation

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 functional currency of the Company is 'INR'. The functional currencies of Group companies are INR, USD, THB, ZAR, AED and EURO. The financial statements are presented in INR and all values are rounded to the nearest crores, except when otherwise indicated.

The consolidated financial statements incorporate the financial statements of the holding group and its subsidiaries. Control is achieved when the group :

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 power over the investee;
is exposed, or has rights, to variable returns from its involvement with the investee; and

The consolidated financial statements were authorised for issue in accordance with a resolution of the directors on May 07, 2024.

has the ability to use its power to affect its returns.

Consolidation of a subsidiary begins when the group obtains control over the subsidiary and ceases when the group loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit and loss from the date the group gains control until the date when the group ceases to control the subsidiary.

2 Material 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
Certain financial assets and liabilities measured at fair value (refer accounting policy regarding 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.

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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.

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, 2024 March 31, 2023
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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)	India	*	*
Foreign Subsidiaries
SRF Global BV	Netherlands	100%	100%
SRF Europe Kft (100% subsidiary of SRF Global BV)	Hungary	100%	100%
SRF Industries (Thailand) Limited	Thailand	100%	100%
(100% subsidiary of SRF Global BV)
SRF Industex Belting (Pty) Limited	Republic	100%	100%
(100% subsidiary of SRF Global BV)	of South Africa
SRF Middle East LLC (100% subsidiary of SRF Global BV)	Dubai	**	-
SRF Flexipak (South Africa) (Pty) Limited	Republic	100%	100%
(100% subsidiaryof SRF Global BV)	of South Africa

By virtue of management control

** SRF Middle East LLC was established on March 12, 2024 as a subsidiary of SRF Global BV. In terms of the Memorandum of Association of SRF Middle East LLC, SRF Global BV shall subscribe to 365 equity shares of AED 1,000 each aggregating to AED 365,000, which is under process as at March 31, 2024.

2.2 Current versus non-current classification

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.

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.

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.

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. Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation and accumulated impairment losses, if any.

The principal accounting policies are set out below.

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

Capital Work in Progress: Project under which assets are not yet ready for their intended use are carried at cost comprising cost of asset, direct cost of material and labour, related incidental expenses and attributable interest.

All items of property plant and equipment were measured at fair value at the date of transition to Ind AS. The Group had 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 group intends to use these for more than a period of 12 months.

2.4 Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.

Depreciation has been provided on the cost of assets less their residual values on straight line method on the basis of estimated useful life of assets determined by the Group which are different from the useful life as prescribed in Schedule II of the 2013 Act. The estimated useful life of the assets have been assessed based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc. and are as under:

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group and the cost of the item can be measured reliably.

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 Ofce equipment	3-20 years 3-20 years
Vehicles	4-5 years

Freehold land is not depreciated.

Assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

Depreciation is calculated on a pro rata basis. An item of property, plant and equipment or any significant part initially recognised of

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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. 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.

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.

2.5 Other 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.

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.

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates and the cost of the asset can be measured reliably.

2.6 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.

Intangible assets with finite lives are amortised using the straight line method 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:

Such development costs are capitalised if they can be reliably measured, the product or process is technically and commercially feasible and the Group has sufficient resources to complete the development and to use or sell the asset.

Trademarks / Brand Technical Knowhow	10-30 years 30-40 years
Software	3-5 years
Other intangibles	2.5-12 years

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(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.

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.

2.7 Impairment of tangible and intangible assets other than goodwill

The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use.

2.8 Leasing

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesess whether:

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.

the contract involves the use of an identified asset – this may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;

the Group has the right to obtain substantially all of the economic benefits from use of the asset through the period of use; and

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

term. The estimated useful lives of right-of-use assets are determined on the basis of remaining lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

the Group has the right to direct the use of the asset. The Group has this right when it has the decision- making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases, where the decision about how and for what purpose the asset is used is predetermined, the Group has the right to direct the use of the asset if either:

The 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.

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 stand-alone prices.

Group as lessee

The Group accounts for assets taken under lease arrangements in the following manner:

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in Group’s estimate of the amount expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option.

The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right of use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentive received.

The right of use asset is subsequently depreciated using the straight line method from the commencement date to the end of the lease

Notes to the Consolidated Financial Statements for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

Short-term leases and leases of low-value assets The Group has elected not to recognise right-of use assets and lease liabilities for short term leases that have a lease term of 12 months or less and leases of low value assets. The Group recognises the lease payments associated with these leases as an expense on a straight- line basis over the lease term.

rate on general borrowings outstanding during the period, to the expenditures incurred on the qualifying asset.

2.9 Borrowing costs

2.10 Foreign Currencies

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.

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.
(ii) Exchange differences pertaining to long term foreign currency loans obtained or re-financed on or before March 31, 2016 Exchange differences on long-term foreign currency monetary items relating to acquisition of depreciable assets are

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or 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.

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(iii) Exchange differences pertaining to long term foreign currency loans obtained or re-financed on or after April 1, 2016
(b) Traded goods, Stock in progress and finished goods- Direct cost plus appropriate share of overheads based on normal operating capacity.

The exchange differences pertaining to long term foreign currency loans obtained or re-financed on or after April 1, 2016 are treated in accordance with Ind AS 21/ Ind AS 109. Refer point (i) above.

(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-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.

Exchange differences on translating financial statements of foreign operations

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.

The comparison of cost and net realisable value is made on an item by item basis.
2.12 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 that an outflow of resources would be required to settle the obligation and a reliable estimate can be made.

2.11 Inventories

Inventories are valued at cost or net realisable value, whichever is lower. The basis of determining the cost for various categories of inventories 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.

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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 earned over billings on contracts. Contract assets are classified as unbilled revenue (only when 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.

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.

2.14 Taxation

Income tax expense represents the sum of the current tax and deferred tax.

a) Current tax

Contingent assets

Contingent assets are not recognised in the consolidated 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.

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.

2.13 Revenue recognition

Sale of goods

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.

Current tax assets and liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Revenues towards satisfaction of a performance obligation are measured based on the transaction price (net of variable consideration),

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(ii) Initial recognition of assets or liabilities (other than in a business combination) at the time of the transaction, (a) affects neither the accounting profit nor taxable profit or loss and (b) does not give rise to equal taxable and deductible temporary differences;

Deferred tax

Deferred tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying amounts at the reporting date.

(iii) In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the group has a legally enforceable right for such set off.

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.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the group will pay normal income tax. Accordingly, MAT asset is recognised in the consolidated Balance Sheet when it is probable that future economic benefit associated with it will flow to the group.

The 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

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;

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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.

loss), tax bases, unused tax losses, unused tax credits or tax rates.

2.15 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

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.

A government grant that becomes receivable as compensation for expenses or losses is recognised in profit or loss on a systematic basis over the periods in which the group recognizes as expenses the related costs for which the grants are intended to compensate, 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.

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.

Government grants related to assets are presented in the consolidated balance sheet at fair value as deferred income and are recognised in profit or loss on a systematic basis over the expected useful life of the related assets.

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.

The benefit accrued under the above grants 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. Re-measurements are not reclassified to consolidated statement of profit and loss in subsequent periods.

2.16 Employee benefits

Short term employee benefits

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

Other long term employee benefits

Initial recognition and measurement

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.

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.

A) Financial Assets
Classification and Subsequent measurement For purposes of subsequent measurement, financial assets of the group are classified in three categories:

2.17 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) At amortised cost
b) At fair value through profit and loss (FVTPL)
c) At fair value through other comprehensive income (FVTOCI)

Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

2.18 Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

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

2.19 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.

Notes to the Consolidated Financial Statements for the Year ended March 31, 2024

(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.

trading are measured at fair value through profit and loss.

For all other equity instruments, the group may make an irrevocable election to present subsequent changes in the fair value in other comprehensive income.

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.

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.

A debt investment is measured at FVTOCI if it meets both of the following conditions and is not designated as at FVTPL:

Derecognition

A financial asset (or, where applicable, a part of a financial asset) is primarily derecognised (i.e. removed from the balance sheet) when:

it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
a) The rights to receive cash flows from the asset have expired, or
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
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.

Equity investments

All equity investments in the scope of Ind AS 109 are measured at fair value. Equity instruments which are held for

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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 and contract assets, 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 pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the group continues to recognise the transferred asset to the extent of the group’s continuing involvement. In that case, the group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the group has retained. Any gain or loss on derecognition is recognised in profit or loss.

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 forward-looking information.

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.

The Group considers a financial asset to be in default when the asset is unlikely to be realised in full.

Credit-impaired financial assets: At each reporting date, the Group assesses whether financial assets carried at amortised cost and debt securities at FVTOCI 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.

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 and contract assets with

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

Evidence that a financial asset is credit-impaired includes the following observable data:

period of the borrowings using the effective interest rate method.

Trade and other payables

significant financial difficulty of the debtor;

Trade and other payables represent the liabilities for goods and services provided to the group prior to the end of the financial year and which are unpaid.

a breach of contract such as a default;
it is probable that the debtor will enter bankruptcy or other financial reorganisation.

Offsetting of financial instruments

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.

Presentation of allowance for ECL in the balance sheet:

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

B) Financial liabilities and Equity instruments Initial recognition and measurement

All financial liabilities are recognised initially at fair value, net of directly attributable transaction costs, if any.

The group’s financial liabilities includes borrowings and trade and other payables including derivative financial instruments.

Equity Instruments

Equity Instruments are any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

Subsequent measurement

Debt or equity instruments issued by the group are classified as either financial liability or as equity in accordance with the substance of contractual arrangements and the definitions of a financial liabilities and an equity instruments.

Borrowings

Borrowings are subsequently measured at amortised cost. Any differences between the proceeds(net of transaction cost) and the redemption/repayment amount is recognised in profit and loss over the

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Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

2.20 Derivative and Non Derivative financial instruments and hedge accounting

b) changes in the timing of the hedged transactions.

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 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 :

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.

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.
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.
a) the effect of the counterparties’ and the Group’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

Hedges that meet the strict criteria for hedge accounting are accounted for, as described below:

Notes to the Consolidated Financial Statements for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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.

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.

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.

Cash flow hedges

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

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Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

a) Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

2.21 Fair value measurement

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 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:

For the purpose of fair value disclosures, the group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

2.22 Segment reporting

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.

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

themselves, they impacted the accounting policy information disclosed in the financial statements. The amendments require the disclosure of ‘material’ rather than ‘significant’ accounting policies.

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.

The amendments also provide guidance on the application of materiality to disclosure of accounting policies, assisting entities to provide useful, entity-specific accounting policy information that users need to understand other information in the financial statements.

2.23 Dividend

The group recognises a liability to make cash distributions to equity holders when the distribution is authorised and the distribution is no longer at the discretion of the group. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

2.26 Ministry of Corporate Affairs (“MCA”) notifies

new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

2.24 Interest and dividend income

Interest income is recognised when it is probable that the economic benefits will flow to the group using the effective interest method.

3 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

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.

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.

Dividend income from investments is recognised when the shareholder’s right to receive payment has been established(provided that it is probable that the economic benefits will flow to the group and the amount of income can be measured reliably).

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.

2.25 Material accounting policy

The Group adopted Disclosure of Accounting Policies (Amendments to Ind AS 1) from 1 April 2023. Although the amendments did not result in any changes in the accounting policies

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

B) Assumptions and estimation uncertainties:

A) Judgements:

 Derecognition of trade receivables and hedge effectiveness- Note 2.19
 Fair value measurement of derivative instruments – Note 2.21
Classification and lease term determination of leasing arrangement – Note 2.8
 Assessment of useful life of property, plant and equipment and intangible asset – Note 2.4
Reverse factoring: presentation of amounts related to supply chain financing arrangements in the balance sheet and in the statement of cash flows Note- 19
 Estimation of assets and obligations relating to employee benefits (including actuarial assumptions) – Note 2.16
Investments accounted for using the equity method: whether the Group has significant influence over an investee. Note- 2.1
- 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 2.12
Consolidation: whether the Group has de facto control over an investee. Note- 2.1
Assesment of uncertain tax treatments. Note- 2.14
 Recognition and estimation of tax expense including determination of applicable tax rate for measuring deferred tax balances– Note 2.14
Assesment of classification and recognition of government grants- Note 2.15

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

4 PROPERTY, PLANT AND EQUIPMENT

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

Particulars Freehold Roads Buildings Plant and Furniture Office Vehicles Total
land equipment and fixtures equipment
----- End of picture text -----

Cost
Balance at April 1,2022	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
Additions/adjustments	6.25	40.86	213.63	3,580.66	10.31	40.03	29.03	3,920.77
Disposals/adjustments	(2.01)	(0.99)	(1.99)	(19.98)	(0.87)	(3.68)	(14.15)	(43.67)
Efect of foreign currency exchange diferences	(3.16)	(0.66)	(15.80)	(76.94)	(0.29)	(0.41)	(0.05)	(97.31)
Balance at March 31,2024	419.34	157.57	1,697.11	13,754.98	48.09	129.79	83.73	16,290.61
Accumulated depreciation
Balance at April 1,2022	-	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	-	(0.16)	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
Depreciation expenses	-	3.27	42.59	557.20	3.93	11.56	12.74	631.29
Disposals/adjustments	-	(0.21)	(0.23)	(12.99)	(0.55)	(3.21)	(11.46)	(28.65)
Efect of foreign currency exchange diferences	-	(0.13)	(2.16)	(17.60)	(0.18)	(0.34)	(0.04)	(20.45)
Balance at March 31,2024	-	18.17	248.91	3,061.62	21.58	62.09	32.78	3,445.15
Net block
Balance at March 31,2023	418.26	103.12	1,292.56	7,736.23	20.56	39.77	37.36	9,647.86
Balance at March 31,2024	419.34	139.40	1,448.20	10,693.36	26.51	67.70	50.95	12,845.46

Notes:

(i) Borrowing cost capitalised during the year (net of interest income) is 84.57 crores (Previous year: 53.51 crores) with a capitalisation rate ranging from 3.09% to 8.12 % (Previous year: 0.49% to 8.04%).
(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 it has an acceptable title, and the said dispute is not tenable.
(iii) Capital expenditure incurred during the year includes 20.46 crores (Previous year: 7.22 crores) on account of research and development. Depreciation for the year includes depreciation of 14.56 crores ( previous year : 14.19 crores) on assets deployed in research and development as per note 44 (a) below.
(iv) Refer to note 17.1 for information on PPE pledged as security by the Company. Additionally, non funded working capital facilities drawn from banks amounting to Nil (Previous year: 19.66 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 44 (c) for additions/adjustments on account of exchange differences during the year .
(vi) Certain items of property, plant and equipment with written down value of ` 1.34 crores have been charged to the consolidated statement of profit and loss on account of damages due to cyclone / flood in the state of Tamil Nadu. Refer to note 44 (f)

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(vii) Capital work-in-progress

	As at March 31, 2024	As at March 31, 2023
Opening balance	2,405.54	1,671.63
Additions during the year *	2,320.56	2,812.46
Less: Amount capitalised during the year	3,920.77	2,078.55
Closing balance	805.33	2,405.54

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.

4.1 CAPITAL WORK-IN-PROGRESS (CWIP)

(i) Ageing of capital work-in-progress :

	Amount in CWIP for aperiod of
	Less than 1year 1 - 2 years 2 - 3 years More than 3years Total
Projects in progress As at March 31, 2024 As at March 31,2023	642.59 148.04 8.16 6.54 805.33 2,113.22 236.61 46.96 8.75 2,405.54

(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, 2024
	To be completed in
	Less than 1year 1 - 2 years 2 - 3 years More than 3years
Projects in progress Backward Integration plant for fuorocarbon refrigerant gases Project for electrical Line Connection Others *	341.19 - - - 36.00 131.54 - - -
	508.73 - - -

	As at March 31, 2023
	To be completed in
	Less than 1 year 1 - 2 years 2 - 3 years More than 3 years
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 - -

Comprise projects not considered material at an individual level. Also refer note no 4 (vii)

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

5 OTHER INTANGIBLE ASSETS

	Particulars	Trade Marks/ Brands	Technical Knowhow	Software	Others	Total
	Cost
	Balance at April 1,2022	73.25	55.19	34.02	29.18	191.64
	Additions / adjustments	-	-	5.54	-	5.54
	Efect of foreign currency exchange 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
	Additions / adjustments	-	5.38	9.18	-	14.56
	Efect of foreign currency exchange diference	-	-	(0.07)	(0.45)	(0.52)
	Disposals/adjustments	-	-	(2.37)	-	(2.37)
	Balance at March 31, 2024	73.25	60.57	46.03	27.64	207.49
	Accumulated amortisation
	Balance at April 1,2022	17.38	9.35	26.85	18.66	72.24
	Amortisation expenses	2.45	1.70	4.10	0.79	9.04
	Efect 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
	Amortisation expenses	2.45	1.76	4.38	0.74	9.33
	Efect of foreign currency exchange diferences	-	-	(0.03)	(0.05)	(0.08)
	Disposals/adjustments	-	-	(2.37)	-	(2.37)
	Balance at March 31, 2024	22.28	12.81	32.74	20.14	87.97
	Net block
	Balance at March 31, 2023	53.42	44.14	8.53	8.64	114.73
	Balance at March 31, 2024	50.97	47.76	13.29	7.50	119.52
INVESTMENTS
				As at March 31, 2024 As at March 31, 2023
	Non-current
	Investment designated at fair value through other
	comprehensive income
	Investment in equity instruments				0.05	4.16
	Investments at amortised cost
	(i) Investment in equity instruments				2.50	-
	(ii) Investment in optionally convertible debentures				2.56	-
	(iii) Investment in bonds				50.12	-
	Investment mandatory at fair value through proft and loss
	Investment in bonds				65.89	-
					121.12	4.16

6 INVESTMENTS

366

367

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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As at As at
March 31, 2024 March 31, 2023
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Aggregate book value of unquoted investments	5.11	4.16
Aggregate amount of impairment in value of investments	4.34	4.34
Aggregate book value of quoted investments	116.01	-
Aggregate market value of quoted investments	116.18	-
Current
Investment mandatory at fair value through proft and loss
(i) Investment in mutual funds	321.14	353.73
(ii) Investment in bonds	84.44	136.32
	405.58	490.05
Aggregate book value and market value of quoted investments	84.44	136.32
Aggregate book value and market value of unquoted investments	321.14	353.73

A Non-current investments

6.1 Investment designated at fair value through other comprehensive income

Investment in equity instruments

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As at March 31, 2024 As at March 31, 2023
Number Amount Number Amount
Unquoted investments
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Equity shares of`10 each fully paid up of Malanpur	42,21,535	4.22	42,21,535	4.22
Captive 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
Power Private Limited
Equity shares of`10 each fully paid up of Sanghi	6,70,000	0.12	6,70,000	0.12
Spinners India Limited
Less: impairment in value of investment	-	(0.12)	-	(0.12)
		0.05		4.16

6.2 Investments at amortised cost

(i) Investment in equity instruments*

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As at March 31, 2024 As at March 31, 2023
Number Amount Number Amount
Unquoted investments
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Unquoted investments
Equity shares of`10 each fully paid up of Watsun Infrabuild	6,00,000	0.16	-	-
Private Limited #
Equity shares of`10 each fully paid up of Dalavaipuram	55,15,661	1.44	-	-
Renewables Private Limited #
Equity shares of`10 each fully paid up of Continuum MP	34,37,917	0.90	-	-
Windfarm Development Private Limited #
		2.50		-

Based on terms of the arrangement, investments in these paries have been classified as debt instruments and measured at amortised cost

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(ii) Investment in optionally convertible debentures

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As at March 31, 2024 As at March 31, 2023
Number Amount Number Amount
Unquoted investments
0% Optionally Convertible Debentures of 10 each 97,80,283 2.56 - - fully paid up of Continuum MP Windfarm Development Private Limited # 2.56 - # Measured at fair value on initial transaction date (iii) Investment in bonds As at March 31, 2024 As at March 31, 2023 Number Amount Number Amount Quoted investments 8.40% HDB Financial Services Limited 2033 3,500 35.08 - - of 100,000 each
8.60% Cholamandalam Investment and Finance Company 1,50,000 15.04 - -
Limited 2029 of 1,000 each 50.12 - 6.3 Investment mandatory at fair value through profit and loss Investment in bonds As at March 31, 2024 As at March 31, 2023 Number Amount Number Amount Quoted investments 8.34% State Bank of India Perpetual Bonds of 46 46.83 - -  10,000,000 each
8.55% Punjab National Bank Perpetual Bonds of 19 19.06 - -
` 10,000,000 each
65.89 -
Current investments
6.4 Investment mandatory at fair value through profit and loss
Investment in mutual funds
As at March 31, 2024 As at March 31, 2023
Number Amount Number Amount
Unquoted investments
ICICI Prudential P1543 Floating Interest Fund- Growth Plan 36,12,365 138.95 36,12,365 128.63
Axis Liquid Fund- Regular Growth Plan 4,57,111 121.79 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
UTI Liquid Fund - Regular Growth Plan 25,664 10.08 - -
HDFC Liquid Fund - Regular Growth Plan 1,07,121 50.32 - -
321.14 353.73
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(iii) Investment in bonds

6.3 Investment mandatory at fair value through profit and loss

B Current investments

6.4 Investment mandatory at fair value through profit and loss

(i) Investment in mutual funds

Measured at fair value on initial transaction date

368

369

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(ii) Investment in bonds

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As at March 31, 2024 As at March 31, 2023
Number Amount Number Amount
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Quoted investments
9.56% State Bank of India Perpetual Bonds 2023 of	-	-	500	50.36
`10,00,000 each
8.99% Bank of Baroda Perpetual Bonds 2024 of	550	54.83	550	55.60
`10,00,000 each
8.50% State Bank of India Perpetual Bonds 2024 of	248	24.65	248	25.27
`10,00,000 each
8.50% State Bank of India Perpetual Bonds 2025 of	50	4.96	50	5.09
`10,00,000 each
		84.44		136.32

7 LOANS

(unsecured and considered good, unless otherwise stated)

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As at As at
March 31, 2024 March 31, 2023
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Non- current
Loans to ofcers *	29.61	28.54
Loans to employees	20.43	16.28
	50.04	44.82
Current
Loans to ofcers *	1.08	1.02
Loans to employees	12.01	10.00
Others
- Credit impaired	2.74	2.74
Less : Provision for credit impaired	(2.74)	(2.74)
	13.09	11.02

Officers as defined under Section 2(59) of the Companies Act 2013.

8 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, 2024 March 31, 2023
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Deferred tax assets	88.47	101.00
Deferred tax liabilities	(999.63)	(891.57)
Deferred tax liabilities, net	(911.16)	(790.57)
Net Deferred tax assets after set of	27.56	18.65
Net Deferred tax liabilities after set of	938.72	809.22

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

The major components of deferred tax assets / (liabilities) arising on account of temporary differences are as follows:

2023-24	Opening balance Recognised in statement of proft and loss MAT Credit Entitlement utilised Recognised in other comprehensive income	Opening balance Recognised in statement of proft and loss MAT Credit Entitlement utilised Recognised in other comprehensive income	Opening balance Recognised in statement of proft and loss MAT Credit Entitlement utilised Recognised in other comprehensive income	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	15.37	7.27	-	-	(0.03)	22.61
in future years
Provision for credit	0.88	(0.01)	-	-	(0.01)	0.86
impaired loans / receivables
Cash fow hedges / Cost of	49.04	-	-	(31.76)	-	17.28
hedging reserve
Unabsorbed depreciation	26.05	14.90	-	-	(1.43)	39.52
and carried forward losses
Others	9.66	(1.49)	-	0.03	-	8.20
	101.00	20.67	-	(31.73)	(1.47)	88.47
Deferred tax liabilities
Property plant and	(869.50)	(112.20)	-	-	3.54	(978.16)
equipment and
intangible assets
Investment in mutual funds	(12.90)	(2.78)	-	-	-	(15.68)
Others	(9.17)	3.38	-	-	-	(5.79)
	(891.57)	(111.60)	-	-	3.54	(999.63)
Total	(790.57)	(90.93)	-	(31.73)	2.07	(911.16)

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	21.43	(5.65)	-	-	(0.41)	15.37
in future years
Provision for credit impaired	0.82	0.05	-	-	0.01	0.88
loans / receivables
MAT Credit Entitlement	58.45	94.13	(152.58)	-	-	-
Cash fow hedges / Cost of	-	-	-	49.04	-	49.04
hedging reserve
Unabsorbed depreciation	18.41	6.92	-	-	0.72	26.05
and carried forward losses
Others	8.15	2.05	-	-	(0.54)	9.66
	107.26	97.50	(152.58)	49.04	(0.22)	101.00

370

371

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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 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)

Notes:

(i) At March 31, 2024, there was no recognised deferred tax liability (Previous year : Nil) for taxes that would be payable on the unremitted earnings of certain of the Company’s subsidiaries. The Company has determined that undistributed profits of its subsidiaries will not be distributed in the foreseeable future.

(ii) During the previous year, basis profitability and reassesment of certain tax positions, the Company had recognized an additional MAT credit of 94.13 crores pertaining to earlier years (including 74.02 crores which was previously written off during the financial year 2020-21), and the same had also been utilised in previous financial year.
(iii) Deferred tax asset recognised on unabsorbed carried forward losses of subsidiaries of the group as above has been recognised to the extent to which management considered it probable that future taxable profits would be available against which such losses can be used.

9 OTHER FINANCIAL ASSETS

(unsecured and considered good, unless otherwise stated)

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As at As at
March 31, 2024 March 31, 2023
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Non Current
Derivatives carried at fair value through other comprehensive income
- Forward exchange contracts used for hedging	27.74	-
Other fnancial assets carried at amortised cost
- Security deposits
Related parties (Refer note 34)	4.47	3.50
Other than related parties	49.05	45.95
- Government grant recoverable *	110.02	15.86
- Deposit accounts with maturity beyond twelve months	0.20	-
- Earmarked bank deposits -Margin money	6.12	2.90
	197.60	68.21

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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As at As at
March 31, 2024 March 31, 2023
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Current
Derivatives carried at fair value through proft and loss
- Other forward exchange contracts	0.25	0.10
Derivatives carried at fair value through other comprehensive income
- Forward exchange contracts used for hedging	20.74	-
- Interest rate swaps used for hedging	-	0.89
Other fnancial assets carried at amortised cost
- Security deposits	2.41	2.57
- Government grant and duty rebate recoverable *	104.09	209.50
- Claim recoverable
Insurance claim recoverable	27.66	3.59
Others	9.41	12.55
- Deposit with Non Banking Financial Company (NBFC)	25.00	-
- Others	8.47	5.64
	198.03	234.84

Also refer footnote to note no 22

10 OTHER ASSETS

(unsecured and considered good, unless otherwise stated)

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As at As at
March 31, 2024 March 31, 2023
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Non-Current
Capital advances
(a) Unsecured, considered good	122.51	270.42
(b) Doubtful	1.23	-
Less: Allowance for doubtful advances	(1.23)	-
Prepaid expenses	17.10	0.60
Goods and services tax and other taxes/duties paid under protest	38.50	25.79
Others	0.31	0.32
Total other non-current assets	178.42	297.13
Current
Prepaid expenses	31.45	25.10
Value added tax / Goods and services tax recoverable	154.90	142.66
Export incentives recoverable	19.56	8.71
Deposits with customs and excise authorities	22.36	22.55
Advance to suppliers	110.77	161.61
Others	16.72	2.04
Total other current assets	355.76	362.67

372

373

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

11 INVENTORIES

(Valued at lower of cost and net realisable value)

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As at As at
March 31, 2024 March 31, 2023
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Raw materials (including packing material)	1,067.59	1,102.59
Stock in progress	269.36	239.56
Finished goods	575.43	476.19
Stores and spares (including fuel)	373.23	360.24
Traded goods	40.86	95.71
	2,326.47	2,274.29
Goods-in-transit, included above :
Raw material (including packing material)	349.63	263.50
Finished goods	105.34	79.95
Stores and spares (including fuel)	2.02	2.66
Traded goods	6.45	2.46
	463.44	348.57

Notes:

(i) The cost of inventories recognised as an expense includes 25.72 crores.(Previous year : 8.67 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 17.1 for information on inventories pledged as security by the group.

(iii) The method of valuation of inventory has been stated in note 2.11

(iv) Inventories amounting to ` 37.50 crores have been charged to the consolidated statement of profit and loss on account of damage due to cyclone / flood in the state of Tamil Nadu. Refer to note 44 (f)

12 TRADE RECEIVABLES

Current	As at March 31, 2024	As at March 31, 2023
Unsecured, considered good	1,942.82	1,785.62
Unsecured, credit impaired	7.56	5.30
Less: Loss allowance	(7.56)	(5.30)
	1,942.82	1,785.62

(i) The credit period generally allowed on sales varies, on a case to case basis, business to business and based on market conditions. Generally credit period allowed is upto 120 days.

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(ii) Ageing of receivables :

	As at March 31, 2024
Outstanding for following periods from due date of payment	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 3 years	1,727.00 - - - - - 1,727.00 212.24 0.90 - - - - 213.14 0.97 1.93 - - - - 2.90 2.61 0.63 - - - - 3.24 - 1.75 - - - - 1.75 - 1.72 - - 0.63 - 2.35
	1,942.82 6.93 - - 0.63 - 1,950.38

	As at March 31, 2023
Outstanding for following periods from due date of payment	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 3 years	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

(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, 2024 are of 883.65 crores (Previous year: 1,105.22 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, 2024, the carrying amount of the receivable from the Group’s most significant customer is 124.92 crores (Previous year: 118.98 crores)
(v) Refer Note 17.1 for information on trade receivables pledged as security by the group.

374

375

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

13 CASH AND CASH EQUIVALENTS

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As at As at
March 31, 2024 March 31, 2023
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Balances with Banks
Current accounts	198.28	151.63
Exchange earners foreign currency (EEFC) accounts	37.25	34.77
Deposit accounts with original maturity of three months or less ^	163.14	420.78
Cash in hand	0.66	0.80
	399.33	607.98

^ Refer note 17

14 BANK BALANCES OTHER THAN ABOVE

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As at As at
March 31, 2024 March 31, 2023
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Earmarked balances
- Margin money	1.44	1.44
- Unclaimed dividend accounts	6.55	6.83
Other deposit accounts
- Deposit accounts with original maturity beyond three	0.22	0.21
months upto twelve months
	8.21	8.48

15 SHARE CAPITAL

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As at As at
March 31, 2024 March 31, 2023
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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 Preference shares of`50 each
	336.00	336.00
Issued capital:
30,04,81,580 (Previous Year - 30,04,81,580)	300.48	300.48
Equity Shares of`10 each
Subscribed capital:
29,64,24,825 (Previous Year - 29,64,24,825)	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, 2024

(All amounts in ` Crores, unless otherwise stated)

15.1 Fully paid equity shares

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Number of shares Amount
----- End of picture text -----

Balance at April 1, 2022	29,64,21,025	296.42
Add : Movement during the year	3,800	^
(Also refer note 36 on "Employee Share Based Payments")
Balance at March 31, 2023	29,64,24,825	296.42
Add : Movement during the year	-	-
Balance at March 31, 2024	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 financial year ended March 31, 2022, 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).

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.

15.2 Details of equity shares held by the holding Company

	Number of fully paid ordinary shares
As at March 31, 2024
KAMA Holdings Limited, the Holding Company	14,88,45,000
As at March 31, 2023
KAMA Holdings Limited, the Holding Company	14,96,45,000

376

377

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

15.3 Details of equity shares held by each shareholder holding more than 5% shares:

	As at March 31, 2024 As at March 31, 2023
Class of shares / Name of shareholder	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	14,88,45,000 50.21% 14,96,45,000 50.48%
Details of equity shares held by Promoters
Name of Promoter's Number of fully paid equity shares held % holding in that class of shares % change during the year
As at March 31, 2024 1. KAMA Holdings Limited 14,88,45,000 50.21% (0.53)% 2. Mr. Arun Bharat Ram 87,500 0.03% (36.36)% 3. Mr. Ashish Bharat Ram 25,000 0.01% 100% 4. Mr. Kartik Bharat Ram 25,000 0.01% 100% As at March 31, 2023 1. KAMA Holdings Limited 14,96,45,000 50.48% (0.40)% 2. Mr. Arun Bharat Ram 137,500 0.05% -

15.4 Details of equity shares held by Promoters

16 OTHER EQUITY

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As at As at
March 31, 2024 March 31, 2023
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General reserve	711.27	711.27
Retained earnings	9,844.52	8,726.97
Cash fow hedging reserve	(54.06)	(150.34)
Cost of hedging reserve	3.40	4.74
Capital redemption reserve	10.48	10.48
Capital reserve	193.77	193.77
Debenture redemption reserve	-	-
Foreign currency translation reserve	(53.33)	15.75
Reserve for equity instruments through other comprehensive income	(4.22)	(4.22)
Employee share based payment reserve	20.19	11.63
Securities premium	509.56	509.56
	11,181.58	10,029.61

16.1 General reserve

	As at March 31, 2024	As at March 31, 2023
Balance at beginning of year	711.27	648.77
Increase/(decrease) during the year	-	62.50
Balance at end ofyear	711.27	711.27

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

16.2 Retained earnings

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As at As at
March 31, 2024 March 31, 2023
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Balance at beginning of year	8,726.97	6,785.77
Proft for the year	1,335.71	2,162.34
Other comprehensive income arising from measurement of	(4.73)	(7.71)
defned beneft obligation* (Refer note 35.2 (iv))
Payments of dividend on equityshares	(213.43)	(213.43)
Balance at end ofyear	9,844.52	8,726.97

The amount that can be distributed as dividend by the parent to its equity shareholders is determined based on the financial position of the parent company and also considering the requirements of the Companies Act, 2013.

net of income tax of (1.19) crores. {Previous year : ( 4.24) crores}

16.3 Cash flow hedging reserve

(Refer note 39.3.1 (C))

	As at March 31, 2024	As at March 31, 2023
Balance at beginning of year	(150.34)	34.49
Recognized/(released) during the year	128.47	(252.41)
Income tax related to above	(32.19)	67.58
Balance at end ofyear	(54.06)	(150.34)

16.4 Cost of hedging reserve

(Refer note 39.3.1 (C)

	As at March 31, 2024	As at March 31, 2023
Balance at beginning of year	4.74	0.51
Recognized/(released) during the year	(1.77)	5.02
Income tax related to above	0.43	(0.79)
Balance at end ofyear	3.40	4.74

378

379

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

16.5 Capital redemption reserve

	As at March 31, 2024	As at March 31, 2023
Balance at beginning of year	10.48	10.48
Increase/(decrease)duringtheyear	-	-
Balance at end ofyear	10.48	10.48

16.6 Capital reserve

	As at March 31, 2024	As at March 31, 2023
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.

16.7 Reserve for equity instruments through other comprehensive income

	As at March 31, 2024	As at March 31, 2023
Balance at beginning of year	(4.22)	(4.22)
Increase/(decrease)duringtheyear	-	-
Balance at end ofyear	(4.22)	(4.22)

16.8 Exchange differences on translating financial statements of foreign operations

	As at March 31, 2024	As at March 31, 2023
Balance at beginning of year	15.75	23.07
Exchange diferences arisingon translation of foreign operations	(69.08)	(7.32)
Balance at end ofyear	(53.33)	15.75

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

16.9 Employee share based payment reserve

	As at March 31, 2024	As at March 31, 2023
Balance at beginning of year	11.63	3.22
Increase/(decrease) during the year	8.56	8.41
Balance at end of year	20.19	11.63

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 36 for further details of the scheme.

16.10 Securities premium

		As at March 31, 2024	As at March 31, 2023
	Balance at beginning of year	509.56	509.56
	Increase/decrease during the year	-	-
	Balance at end of year	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 provisions of the Act.
	1 Debenture redemption reserve
		As at March 31, 2024	As at March 31, 2023
	Balance at beginning of year	-	62.50
	Increase/(decrease) during the year	-	(62.50)
	Balance at end of year	-	-

16.11 Debenture redemption reserve

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.

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.

380

381

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

17 BORROWINGS

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As at As at
March 31, 2024 March 31, 2023
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Non-current
Secured
Term Loans from banks*^ (Refer note 17.1.1)	2,272.89	2,693.26
Term Loans from others *(Refer note 17.1.2)	686.32	109.52
Less: Current maturities of long term borrowings
Term loan from banks	(940.93)	(447.53)
Term loan from others	(43.05)	(43.73)
	1,975.23	2,311.52
Unsecured
Term Loans from banks	368.46	-
Less: Current maturities of longterm borrowings	(92.55)	-
	275.91	-
	2,251.14	2,311.52
Current
Secured
Cash credits from banks (Refer note 17.1.3.(iii))	13.27	-
Term loan from Banks ^^ (Refer note 17.1.3.(ii))	150.00	210.00
Loans repayable on demand from banks (Refer note 17.1.3.(i))	700.03	480.29
Current maturities of longterm borrowings	983.98	491.26
	1,847.28	1,181.55
Unsecured
Loans repayable on demand from banks	529.27	860.99
Commercial papers from banks and others #	200.00	-
Current maturities of longterm borrowings	92.55	-
	821.82	860.99
	2,669.10	2,042.54

Above amount of borrowings are net of upfront fees paid 10.25 crores (Previous year : 7.35 crores)

^ Out of a term loan of 625.38 crores obtained during the current year, unutilised balance of 50.00 crores as on March 31, 2024 has been temporarily invested in fixed deposit with a bank. (Previous Year: Out of a term loan of 616.57 crores obtained towards the end of the year, unutilised balance of 370.00 crores as on March 31, 2023 was temporarily invested in fixed deposit with a bank).

^^ Represents long term loan taken from a bank which is repayable in 18 quarterly instalments starting from June 2024. It has been entirely 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 `200.00 crores (Previous year :` 500.00 crores)

There have been no defaults in repayment of principal and interest on borrowings during the reporting periods.

The quarterly returns or statements of current assets filed by the Company with the banks are in agreement with the books of account of the Company.

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

17.1 Details of security against the secured loans:

Details	of Loan	As at March 31, 2024#	As at March 31, 2023#	Security
1 (i)	Term loan from Banks *	1,886.41	1,988.70	Moveable property

(a) (i) Out of the loans in 1, loans aggregating to 1686.41 crores (Previous Year – 1988.70 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 in 1, loans aggregating to 200.00 crores (Previous year - Nil) are secured by hypothecation of Company’s plant and machinery which consist of all movable properties, both present and future, situated at Manali, Viralimalai and Gummidipoondi in the State of Tamil Nadu, Jhiwana in the State of Rajasthan, Malanpur, Special Economic Zone - Indore and Pithampur in the State of Madhya Pradesh, Kashipur in the State of Uttarakhand and Dahej in the State of Gujarat.

Immoveable property

(b)(i) Out of the loans in 1(a)(i), loans aggregating to 95.60 crores (Previous Year – 188.83 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, Kashipur in the State of Uttarakhand and Jhiwana in the State of Rajasthan.

(b)(ii) Out of the loans in 1(a)(i), loans aggregating to Nil (Previous Year – 70.86 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. (ii) Term loans from banks 350.91 402.25 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 fixed assets of SRF Europe Kft. (iii) Term loans from banks 39.99 309.51 Out of 1(iii), term loan of 39.99 crores (previous year 84.13 crores) is secured by mortgage of existing plant and machinery, land and building and/or any construction in future of Packaging film Factory (SRF Industries (Thailand) Ltd) and Nil (previous year 225.38 crores) were to be charged against certain specific Plant and machinery of Packaging film Factory (SRF Industries (Thailand) Ltd).

382

383

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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As at As at
Details of Loan March 31, March 31, Security
2024 [#] 2023 [#]
----- End of picture text -----

2	Term loans from others *	692.15	109.67	Moveable Property
				(a)(i) Out of the loans in 2, loans aggregating to
				`625.38 crores (Previous Year –`Nil) 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, Special Economic
				Zone - Indore and at Plot no. 675 at Industrial Area
				Pithampur in the State of Madhya Pradesh, 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 loans in 2, loan of 66.77 crores (Previous Year – 109.67 crores ) is secured by hypothecation of Company’s moveable properties, both present and future, situated at Plot no. 675 at Industrial Area Pithampur in the State of Madhya Pradesh.

Immoveable Properties

(b)(i) Loans in 2(a)(i), is to be further secured by the mortgage on the company’s all immoveable properties, both present and future, situated at Dahej in the State of Gujarat.

3 (i) Loans repayable on 588.18 381.97 Secured by hypothecation of stocks, semi finished demand from banks and finished goods, stores and spares not relating to plant and machinery, bill receivables, book debts and other Companies’ moveable assets, both present and future, at Manali, Viralimalai and Gummidipoondi in the State of Tamil Nadu, Jhiwana in the State of Rajasthan, Malanpur, Special Economic Zone - Indore and Pithampur in the State of Madhya Pradesh, Kashipur in the State of Uttarakhand and Dahej in the State of Gujarat.
- 21.88 - 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
- 89.97 98.32 Working capital facility is secured by pledge of 85% of the share capital of SRF Europe Kft held by SRF Global BV and pledge over receivables arising out of trade agreements
  - Secured by a first pari passu charge over all the moveable fixed assets both present and future of SRF Altech Limited. Also refer footnote to note no.17.
(ii) Term loan from bank 150.00 210.00
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
(iii) Cash credit / Working 13.27 - facilities from banks

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

17.2 Terms of loans

As at March 31, 2024 NON CURRENT BORROWINGS

Loan Category	Frequency of principal repayments	Interest rate	Up to March 31, 2025	For 2025-26	For 2026-27	From 2027-28 to 2029-30
Term	Half	Floating rate : Ranging	95.97	95.97	43.99	164.00
loans from banks	yearly instalment	from 3.70 % to 8.10 %
	Quarterly Instalment	Ranging
		from 0.94% to 8.02%	424.48	547.82	719.15	39.09
	Monthly Instalment	At 1.12%	265.16	-	-	-
	Bullet payments	Floating rate: 6.22% as
		at March 31, 2024	250.15	-	-	-
Term	Half year payments	Floating rate: 6.62 % as	44.46	22.31	-	-
loans from Others		at March 31, 2024
	Quarterly Instalment	Floating rate: 6.22 % as	-	50.03	100.06	475.28
		at March 31,2024
			1,080.22	716.13	863.20	678.37
Amounts mentioned above are gross of upfront fees paid of			`10.25 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 2.65% to 11.75% . Also refer footnote to note no .17
As at March 31,	2023
NON CURRENT BORROWINGS
Loan Category	Frequency of principal repayments	Interest rate	Up to March 31, 2024	For 2024-25	For 2025-26	From 2026-27 to 2028-29
Term	Half yearly instalment Ranging		68.21	351.57	48.08	24.04
loans from banks		from 1.23% to 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	Half year payments	Floating rate: 5.84%	43.83	43.83	22.01	-
loans from Others		as at March 31,2023
			493.81	1,064.45	567.80	684.07

Short term borrowings are either payable in instalments within one year or repayable on demand. For short term borrowings, interest rates ranges from 2.65% to 11.75% . Also refer footnote to note no .17

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 .17

Gross of upfront fees paid `10.25 Crores (Previous year -` 7.35 Crores)

Such hypothecation and mortgage mentioned in point 1(i), 2(a)(i) and 2(b)(i) above, rank pari-passu between term loans from banks and others.

384

385

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

Terms of repayment

1 Rupee term loans of 78.13 crores are repayable in 5 quarterly instalments from April 2024 (Previous year: 140.63 crores repayable in 9 quarterly instalments from April 2023)
2 Rupee term loans of ` 90.00 crores are repayable in 12 half-yearly instalments from September 2024 (Previous year: NIL)
3 Rupee term loans of ` 110.00 crores are repayable in 12 half-yearly instalments from September 2024 (Previous year: NIL)
4 Foreign currency term loan of 66.77 crores are repayable in 3 half-yearly instalments from April 2024 (Previous year: 109.67 crores are repayable in 5 half-yearly instalments from April 2023).
5 Foreign currency term loan of 95.60 crores are repayable in 4 quarterly instalments from May 2024 (Previous year: 188.83 crores are repayable in 8 quarterly instalments from May 2023).
6 Foreign currency term loan of 265.16 crores are repayable in 12 monthly instalments from April 2024 (Previous year: 287.57 crores are repayable in 2 half yearly instalments from September 2023 and 12 monthly instalments from April 2024).
7 Foreign currency term loan of 250.15 crores is repayable in one bullet instalment in March 2025 (Previous year: 246.63 crores is repayable in one bullet instalment in March 2025)
8 Foreign currency term loan of 176.58 crores are repayable in 12 quarterly instalments from June 2024 (Previous year: 232.12 crores are repayable in 16 quarterly instalments from June 2023)
9 Foreign currency term loan of 195.43 crores are repayable in 15 quarterly instalments from May 2024 (Previous year: 205.52 crores are repayable in 16 quarterly instalments from February 2024)
10 Foreign currency term loan of 625.37 crores are repayable in 9 quarterly instalments from February 2025 (Previous year: 616.54 crores are repayable in 9 quarterly instalments from February 2025)
11 Foreign currency term loan of ` 625.38 crores are repayable in 21 quarterly instalments from July 2025 (Previous year: NIL)
12 Foreign currency term loan of 350.91 crores are repayable in 9 quarterly instalments from June 2024 and final instalment in January 2027 (Previous year : 402.27 crores are repayable in 13 quarterly instalments from June 2023 and final instalment in January 2027).
13 Foreign currency term loan of 39.99 crores are repayable in 1 half yearly instalment in September 2024 and final instalment in September 2025 (Previous year: 84.14 crores are repayable in 3 half yearly instalments from September 2023 and final instalment in September 2025.)
14 Foreign currency term loan of 71.41 crores are repayable in 10 quarterly instalments from April 2024 (Previous year: 105.15 crores are repayable in 14 quarterly instalments from April 2023)
15 Foreign currency term loan of 159.94 crores are repayable in 5 half yearly instalments from June 2024 (Previous year : 120.20 crores are repayable in 5 half yearly instalments from June 2024).
16 Foreign currency term loan of ` 137.10 crores are repayable in 6 quarterly instalments from December 2025 (Previous year: NIL)
17 Foreign currency term loan from Bank of 26.82 crores was repaid in the current year (Previous year: 26.82 crores is repayable in 1 quarterly instalment in April 2023)
18 Foreign currency term loan from Bank of 44.04 crores was repaid in the current year (Previous year: 44.04 crores are repayable in 3 quarterly instalments from April 2023).

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

18 PROVISIONS

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As at As at
March 31, 2024 March 31, 2023
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Non-Current
Provision for employee benefts
Provision for compensated absence (Refer note 35.2)	62.53	53.49
Provision for retention pay Other employee benefts (Refer note 35.2)	0.17 8.69	0.17 7.14
	71.39	60.80
Current
Provision for employee benefts
Provision for compensated absence (Refer note 35.2) Other employee benefts (Refer note 35.2)	8.74 0.03	7.91 -
	8.77	7.91

19 TRADE PAYABLES

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As at As at
March 31, 2024 March 31, 2023
Total outstanding dues of micro enterprises and small enterprises [ #]
----- End of picture text -----

- Acceptances*	-	5.33
-Other than acceptances	84.57	62.46
	84.57	67.79
Total outstanding dues of creditors other than micro enterprises
and small enterprises
- Acceptances* -Other than acceptances	591.27 1,521.92	654.84 1,508.64
	2,113.19	2,163.48
	2,197.76	2,231.27

# Refer note 19.1

*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, 2024
	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	83.17 1,406.07 - - 1,489.24 1.40 208.60 - - 210.00 - - - - - - - - - - - 0.54 - - 0.54 - 497.98 - - 497.98
	84.57 2,113.19 - - 2,197.76

386

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Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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

19.1 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, 2024 March 31, 2023
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Amount remaining unpaid to suppliers under MSMED (suppliers)
as at the end of year
- Principal amount **	124.77	128.33
- Interest due thereon	0.04	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	0.01	-
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	0.04	0.01
- Interest remaining unpaid as at the end of the year	0.04	0.01
Interest remaining due and payable even in the succeeding years,	0.04	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 20)

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

20 OTHER FINANCIAL LIABILITIES

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As at As at
March 31, 2024 March 31, 2023
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Non Current Derivatives carried at fair value through other comprehensive income - Forward exchange contracts used for hedging Payables to capital creditors - Total outstanding dues of creditors other than micro	0.80	26.24	ATE OVERVIEW
enterprises and small enterprises
Acceptances*	-	133.23
	0.80	159.47

Current
Interest accrued but not due on borrowings	23.41	14.80
Unpaid dividends^ Security deposits received Payables to capital creditors - Total outstanding dues of micro enterprises and small enterprises# Acceptances* Other than acceptances - Total outstanding dues of creditors other than micro enterprises	6.55 7.84 - 40.24	6.83 7.64 0.67 59.88	STATUTORY REPORTS
and small enterprises
Acceptances*	147.65	118.46
Other than acceptances	94.24	126.00
Derivatives carried at fair value through proft and loss
- Forward exchange contracts used for hedging	0.79	7.09
- Other Forward exchange contracts Derivatives carried at fair value through other comprehensive income	0.04	-
- Forward exchange contracts used for hedging 4.93 Payable to banks for discounted receivables 131.23 Liability towards unspent expenditure on corporate social responsibility 9.51 Others 0.99 467.42** ^ Amount will be credited to investor education and protection fund if not claimed within seven years dlti f diidd		35.05 105.72 - 3.42 485.56 from the date of	FINANCIAL STATEMENTS

^ 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 19.1
Refer footnote to note no. 19
** Refer note 44 (d)

388

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Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

21 TAX ASSETS AND LIABILITIES

	As at March 31, 2024	As at March 31, 2023
Other tax assets
Advance tax (net of provisions for tax)	210.96	91.26
Current tax liabilities
Provisions for tax (net of advance tax)	16.60	14.63

22 OTHER LIABILITIES

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As at As at
March 31, 2024 March 31, 2023
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Non-current
Deferred government grants *	177.31	72.29
	177.31	72.29
Current
Contract liability (Refer note 40)	33.05	45.90
Statutory liabilities	32.51	34.44
Payable to gratuity trust (Refer note 35.2)	4.00	8.38
Deferred government grants*	5.50	1.74
Other payables	18.55	18.33
	93.61	108.79

Deferred government grants represnts capital grant in relation to the following:
(i) Grant received in earlier years from The Industrial Development Corporation of South Africa towards setting up of property, plant and equipment under a government program
(ii) Grant received in earlier years from Ministry of Foreign Affair and Trade, Hungary under the governments’ ”Scheme for Investment Promotion” to promote investment and job creation.
(iii) Grant approved during the current year under the Madhya Pradesh Industrial promotion policy and Investment Promotion Scheme towards setting up of packaging film plant in Indore and promoting investment and job creation which is to be received over a period of 7 years.

These grants mentioned above are being amortised over the useful life of the related property, plant and equipment in proportion to the related depreciation expense recognised.

Deferred government grant also includes grant related to duty saved on import of capital goods under the Exports Promotion Capital Goods (EPCG) scheme. of 50.00 crores (Previous year: 34.66 crores). 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.

Total unamortised grant amount as on March 31, 2024 is 182.81 crores (Previous year: 74.03 crores)

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

23 REVENUE FROM OPERATIONS

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Year ended Year ended
March 31, 2024 March 31, 2023
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Revenue from contracts with customers
Sale of products
Manufactured goods	12,608.82	14,210.14
Tradedgoods	301.53	381.68
	12,910.35	14,591.82
Other operating revenues
Claims	1.18	4.41
Export and other incentives	87.17	89.65
Scrap sales	41.20	58.39
Provision / liabilities no longer required written back	12.54	27.44
Material handling income	80.47	97.67
Other operatingincome	5.61	0.87
	228.17	278.43
	13,138.52	14,870.25

Reconciliation of revenue from sale of products with the contracted price

	Year ended March 31, 2024	Year ended March 31, 2023
Contracted price	13,203.15	14,794.13
Less: Discounts,allowances and claims	(292.80)	(202.31)
Sale ofproducts	12,910.35	14,591.82

24 OTHER INCOME

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Year ended Year ended
March 31, 2024 March 31, 2023
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Int	erest Income
i.	on fnancial assets carried at amortised cost
	- from customers and employees	2.77	2.54
	- on loans, deposits and investments	7.85	7.21
ii.	on fnancial assets carried at fair value through proft and loss
	- on loans, deposits and investments	10.85	12.77
iii.	Others
	- on others *	4.77	22.18
Net	gain on sale/discarding of property, plant and equipment	4.74	6.00
Net gain on fnancial assets measured at fair value through proft and loss		22.88	9.10
Other non-operatingincome		29.16	15.13
		83.02	74.93

Refer note 30 (iii)

390

391

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

25.1 COST OF MATERIALS CONSUMED*

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

Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

Opening stock of raw materials	1,102.59	1,058.18
Add: Purchases of raw materials	6,660.60	7,169.62
	7,763.19	8,227.80
Less:Closing stockof raw materials	1,067.59	1,102.59
Cost of materials consumed	6,695.60	7,125.21

Including packing material

25.2 PURCHASES OF STOCK IN TRADE

Year ended March 31, 2024	Year ended March 31, 2023
Purchases of stock in trade 118.56	277.22
118.56	277.22

25.3 CHANGES IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK IN TRADE

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

Year ended Year ended
March 31, 2024 March 31, 2023
Inventories at the end of the year:
----- End of picture text -----

Inventories at the end of the year:
Stock-in-Process	269.36	239.56
Finished goods	575.43	476.19
Traded goods	40.86	95.71
	885.65	811.46
Efect of changes in exchange currency rates
Stock-in-Process	(1.20)	1.71
Finished goods	(5.63)	2.70
Traded goods	(1.37)	(2.11)
	(8.20)	2.30
Inventories at the beginning 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
Total (increase) / decrease	(82.39)	(8.92)
Less: Inventory damaged due to cyclone / food (refer to note 44(f))	(22.99)	-
Net (increase) / decrease	(105.38)	(8.92)

26 EMPLOYEE BENEFITS EXPENSES

Year ended March 31, 2024 Year ended March 31, 2023	Year ended March 31, 2024 Year ended March 31, 2023	Year ended March 31, 2024 Year ended March 31, 2023
Salaries and wages, including bonus	776.13	671.16
Contribution to provident and other funds	55.86	48.87
Workmen and staf welfare expenses	94.48	85.01
Share based payment expense (Refer note 36)	8.56	8.76
	935.03	813.80

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

27 FINANCE COST

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Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

Interest cost^
- Non convertible debentures	-	7.33
- Term loans and others	266.25	142.65
- Lease liabilities	9.07	8.99
Other borrowing costs	19.98	21.00
Exchange diferences regarded as an adjustment to borrowingcost	6.99	24.85
	302.29	204.82

^ pertains to liabilities measured at amortised cost. The amount disclosed is net of interest capitalised during the year. Also, refer note no. 4 (i)

28 DEPRECIATION AND AMORTISATION EXPENSE

	Year ended March 31, 2024	Year ended March 31, 2023
Depreciation of property, plant and equipment	631.29	538.72
Amortisation of intangible assets	9.33	9.04
Depreciation of Right of use assets	32.00	27.56
	672.62	575.32

29 OTHER EXPENSES

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

Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

Power and fuel	1,344.81	1,472.25
Credit impaired assets provided / written of ^	4.22	2.56
Labour production	83.08	71.75
Directors' sitting fees	0.24	0.41
Expenditure on corporate social responsibility**	41.02	28.63
Property, plant and equipment provided/ written of	4.28	3.87
Freight charges	433.82	610.24
Insurance	73.07	63.83
Legal and professional charges	60.73	46.14
Rates and taxes	20.09	10.01
Rent***	41.77	39.66
Repairs and maintenance
- Buildings	10.95	9.00
- Plant and machinery	251.80	221.59
- Other maintenance	66.15	53.04
Selling commission	35.24	41.28
Stores and spares consumed	94.16	85.04
Travelling and conveyance	23.37	21.12

392

393

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(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 The income tax expenses for the year can be reconciled to the accounting profits as follows:
March 31, 2024 March 31, 2023 Year ended Year ended
Auditor remuneration # March 31, 2024 March 31, 2023
- Audit Fees 2.29 2.07 Profit before tax 1,692.22 2,823.99
Income Tax Expenses @ 25.168% (Previous year @ 34.944%) 425.90 986.82
- For limited review of unaudited financial results 1.09 0.97
- For Corporate governance and other certificates 0.11 0.10 Effect of deductions (research and development, share issue (0.25) (126.53)
expenses and deductions under Chapter - VIA of Income Tax Act)
- For tax audit 0.17 0.10
Effect of expenses that are not deductible in determining 11.53 10.97
- Reimbursement of out of pocket expenses 0.21 0.17 taxable profits
Exchange currency fluctuation (net) 76.71 104.00 Effect of lower tax rate on certain temporary differences pursuant - (55.83)
to Section 115BAA of Income Tax Act.
Effluent disposal expenses 158.91 181.84
Miscellaneous expenses^^ 82.31 64.07 No tax on losses due to uncertianity of recoverability 7.97 4.41
2,910.60 3,133.74 Recognition of MAT credit previously written off (refer - (74.02)
note (ii) below)
Refer to note no. 44(d)
Effect of Nil tax/exemption of overseas subsidiaries (3.26) (10.06)
Refer to note no. 41
# including fees paid to auditors of subsidiary companies Effect of lower tax rates in overseas subsidiaries 17.34 (22.15)
^ Amount of Nil (previous year: 0.67 crores) written off during the year has been utilised against provision. Others 0.54 (2.44)
^^ Including ` 2.00 crores (previous year: Nil) paid as political contribution Income tax expenses recognised in profit and loss in 459.77 711.17
Also refer note no. 44 (f) for adjustment on account of damage due to cyclone / flood. relation to current year
Income tax expenses recognised in profit and loss in relation to (103.26) (49.52)
30 INCOME TAX RECOGNISED IN PROFIT AND LOSS earlier years (Refer note (iii) below)
Year ended Year ended Total Income tax expenses recognised in profit and loss 356.51 661.65
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30 INCOME TAX RECOGNISED IN PROFIT AND LOSS

Year ended March 31, 2024 Year ended March 31, 2023	Year ended March 31, 2024 Year ended March 31, 2023	Year ended March 31, 2024 Year ended March 31, 2023
Tax expense	356.51	661.65
	356.51	661.65
Current tax
In relation to current year	363.64	650.43
Adjustment in relation to earlier years	(98.06)	(35.55)
(Refer note(iii)below)
	265.58	614.88
Deferred tax
- MAT credit entitlement (Refer note (ii) below)
In relation to current year	-	(74.02)
Adjustment in relation to earlieryears	-	(20.11)
	-	(94.13)
- Others
In relation to current year	96.13	134.76
Adjustment in relation to earlieryears	(5.20)	6.14
	90.93	140.90

Notes:

(i) During the year, the Company has transitioned to the new tax regime under section 115BAA of the Income Tax Act, 1961. Accordingly, the tax rate used for the current year reconciliation above is the corporate tax rate of 25.168% (Previous year: 34.944%) payable by corporate entities in India on taxable profits under the Indian tax law.
(ii) During the previous year, basis profitability and reassessment of certain tax positions, the Company had recognised 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 had also been utilised in previous financial year.
(iii) During the year ended March 31, 2024, the Company has reassessed its uncertain tax position in relation to past years on taxability of income from sale of Carbon Emission Reduction Certificates (CER’s) and has written back 98.06 crores in respect of assessment years 2008-09 and 2009-10 as ‘Tax adjustments in relation to earlier years’ after taking into consideration favourable orders received from Income Tax Appellate tribunal (“ITAT”) in relation to the above assessment years, elapse of statutory time for further appeal by tax authorities and favourable judicial precedents (Previous year: 32.17 crores along with interest income of ` 20.15 crores in respect of assessment year 2006-07). Related interest income in respect of assessment years 2008-09 and 2009-10 will be considered in the period in which a requisite level of certainty is achieved.

394

395

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

31 INCOME TAX RECOGNISED IN OTHER COMPREHENSIVE INCOME

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Year ended Year ended
March 31, 2024 March 31, 2023
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Arising on income and expense recognised in other
comprehensive income
Net (gain)/ loss on designated portion of hedging instruments in cash fow hedges	(32.19)	67.58
Cost of hedging reserve	0.43	(0.79)
Remeasurement of defned beneft obligation	1.19	4.24
	(30.57)	71.03
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 toproft or loss	(31.76) 1.19	66.79 4.24
	(30.57)	71.03

32 CONTINGENT LIABILITIES

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As at As at
March 31, 2024 March 31, 2023
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Claims against the group not acknowledged as debts :
Goods and Services tax, excise duty, custom duty	17.92	7.38
and service tax *
Sales tax and entry tax **	14.01	15.60
Income Tax ***	300.22	304.78
Others****	10.16	11.01

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

**** Amount deposited against contingent liability 9.05 crore (Previous year: 9.05 crore). Contingent liability includes demand by Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Ltd. (MPPKVV Ltd) of 8.73 Crores (Previous year: 8.73 crores).

  - **b** (i) The Company has been served with show cause notices regarding certain transactions as to why additional customs / excise duty / service tax / goods and service tax amounting to ` 43.00 crores (Previous year: ` 18.59 crores) should not be levied. An amount of ` 7.15 crores (Previous year: ` 0.10 crores) has been deposited against such show cause notices. The Company has been advised by its legal advisor that the contention of the department is not tenable and hence the show cause notice may not be sustainable.

     - (ii)  The Company had received a draft Assessment Orders for assessment year 2020-21 and assessment year 2021-22 in which adjustment amounting to ` 178.50 crores and ` 258.55 crores are proposed on account of transfer pricing adjustments, disallowance for research and development expenditure and for generation of power from captive power plants, etc. which are pending before Dispute Resolution Panel as at March 31, 2024. 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 represent the best possible estimates arrived at on the basis of available information. The uncertainties and possible reimbursements are dependent on the outcome of different legal processes which have been invoked by the Company, or by the claimant, 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.

Amount deposited against contingent liability 6.77 crores (Previous year: 1.20 crores)
** Amount deposited against contingent liability 6.54 crores (Previous year: 6.74 crores)
*** Amount deposited against contingent liability 63.42 crores (Previous year: 59.68 crores). Contingent liabilities includes:
(i) Assessment / rectification orders received for assessment years 2017-18 and 2018-19 in which adjustments to taxable income were made on account of transfer pricing related matter, research and development (R&D) expenditure and others. Accordingly, demand of 1.20 crores and 11.03 crores was raised. 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. Basis this direction, rectification has been passed for assessment year 2017-18 in the current year thereby granting refund of ` 3.33 crores which has been adjusted against demand of A.Y.2018-19 and rectification for assessment year 2018-19 is pending before the Assessing Officer.
These orders have a tax implication of 19.96 crores (Previous year 95.97 crores) and 57.94 crores (Previous year 57.94 crores) respectively (primarily due to reduction in MAT credit entitlement eligible for accumulation / subsequent utilization). The Company has filed an appeal before Income Tax Appellate Tribunal against the said orders. 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 under section 143(1) received during the year for assessment year 2021-22 and 2022-23 with a demand of 130.74 crores and 68.76 crores respectively for which the Company has filed rectification application before Assessing Officer and an appeal before CIT(Appeals). Also refund aggregating to 57.33 crores (previous year 56.91 crores) for different assessment years have been adjusted against the said demand of assessment year 2021-22. Based on the facts of the case and the management’s assessment, these demands are raised due to technical errors and therefore the Company is of the view that the proposed adjustments are not likely to sustain.

33 CAPITAL AND OTHER COMMITMENTS

		As at March 31, 2024	As at March 31, 2023
(i)	Estimated amount of contracts remaining to be executed	318.82	762.77
	on capital account (property plant and equipment) and not
	provided for (net of advances).

(ii) The group has other commitments, for purchases / sales orders which are issued after considering requirements per operating cycle for purchase / sale of goods and services, employee benefits including union agreements in normal course of business. The group does not have any long term contracts including derivative contracts for which there will be any material foreseeable losses which have not been provided for.
iii) Export obligation under advance license scheme on duty free import of specific raw materials, and EPCG scheme on import of capital items remaining outstanding is 1,388.16 crores (Previous year: 1,397.68 crores).

396

397

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

34 RELATED PARTY TRANSACTIONS

34.1 Description of related parties under Ind AS- 24 “Related Party Disclosures“

Ultimate holding entity Key management personnel (KMP)[ #] ABR Family Trust Ashish Bharat Ram Kartik Bharat Ram Holding Company Tejpreet S Chopra KAMA Holdings Limited Lakshman Lakshminarayan Vellayan Subbiah Fellow subsidiaries[ #] Pramod Gopaldas Gujarathi KAMA Realty (Delhi) Limited Bharti Gupta Ramola Shri Educare Limited Yash Gupta SRF Transnational Holding Limited Puneet Yadu Dalmia Raj Kumar Jain *

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

Enterprises over which KMP have significant influence # Havells India Limited *** Indian Chemical Council ****

SRF Welfare Trust

Carborandum Universal Limited Rose Farms (Delhi) LLP Dalmia Cement (Bharat) Limited * CG Power and Industrial Solutions Limited

Relatives of KMP #

Relatives of KMP of Holding Company #

Arun Bharat Ram ^^ Sushil Ramola Murugappan Vellayan Subbiah Deeksha Amit Kalyani ^ Salil Gupta ^

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 ^

^ From August 18, 2022

^^ From April 01, 2022

From May 09, 2022
** From June 15, 2022
*** From April 06, 2022
**** From October 31, 2023
* From December 08, 2023

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

34.2 Transactions with related parties

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Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

Purchase of property, plant & equipment from Key management personnel Enterprises over which KMP have controlorjoint control Sale of property, plant & equipment to Enterprises over which KMP have control or joint control	1.90 1.51 3.41 7.00	- - - 6.91	ATE OVERVIEW
	7.00	6.91
Sale of goods to
Enterprises over which KMP have signifcant infuence	16.02	15.26
	16.02	15.26
Purchase of goods from
Enterprises over which KMP have signifcant infuence	3.41	6.00
	3.41	6.00
Advance given to
Enterprises over which KMP have control or joint control Rent paid Fellow Subsidiaries Key management personnel Relative of KMP Enterprises over which KMP have control or joint control Reimbursement of expenses from	- - 6.54 0.01 0.21 1.36 8.12	0.24 0.24 6.56 0.05 0.21 0.27 7.09	STATUTORY REPORTS
Holding Company	*	0.02
Key management personnel	**	-
Fellow Subsidiaries	0.02	0.05
Enterprises over which KMP have control or joint control	0.03	0.01
	0.05	0.08
* Amount in absolute :`35,000
** Amount in absolute :`28,000
Received Services from : Relative of KMP Enterprises over which KMP have control or joint control Enterprises over which KMP have signifcant infuence Security deposits given to Enterprises over which KMP have control or joint control Security deposits received back from	0.60 0.95 0.05 1.60 0.98 0.98	0.60 0.64 - 1.24 - -	FINANCIAL STATEMENTS
Key management personnel	0.01	-
Fellow Subsidiaries	-	0.03
	0.01	0.03

Only with whom the Company had transactions during the year

398

399

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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

Year ended Year ended
March 31, 2024 March 31, 2023
Contribution for expenditure on corporate social responsibility
----- End of picture text -----

Contribution for expenditure on corporate social responsibility
Enterprises over which KMP have controlorjoint control	25.70	28.23
	25.70	28.23
Contribution to post employment beneft plans Post employment beneftplans trust	31.50	43.69
	31.50	43.69
Employee beneft obligations transferred to
Fellow Subsidiaries	0.01	-
	0.01	-
Equity dividend paid
Holding Company	107.74	107.96
Key management personnel	0.07	0.05
Relatives of KMP	0.22	0.24
KMP of Holding Company	^^	^^
Relatives of KMP of Holding Company	^	^
Enterprises over which relative of KMP have control orjoint control	^^^	^^^
	108.03	108.25

^ Amount in absolute 720 (Previous year : 814)

^^ Amount in absolute 1,786 (Previous year : 9,882)

^^^ Amount in absolute 37,224 (Previous year : 37,224)

34.3 Outstanding Balances

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As at As at
March 31, 2024 March 31, 2023
Commission payable
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Commission payable
Keymanagementpersonnel	17.26	17.16
	17.26	17.16
Receivable
Enterprises over which KMP have signifcant infuence Post employment beneftplans trust	2.30 0.99	2.22 1.31
	3.29	3.53
Payable
Enterprises over which KMP have signifcant infuence Post employment beneft plans trust	0.02 5.69	0.44 9.86
Enterprises over which KMP have control orjoint control	0.51	-
	6.22	10.30
Security deposits outstanding
Fellow Subsidiaries	3.24	3.24
Key management personnel	-	0.01
Relatives of KMP	0.11	0.11
Enterprises over which KMP have control orjoint control	1.12	0.14
	4.47	3.50

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

34.4 Key management personnel compensation

	Year ended March 31, 2024	Year ended March 31, 2023
Short-term benefts * Post-employment benefts Other long-term benefts	39.05 2.91 1.07	36.03 8.60 3.40
	43.03	48.03

Include 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 and are to be settled in cash.

35 EMPLOYEE BENEFITS

35.1 Defined contribution plans:

Amounts recognized in the consolidated statement of profit and loss are as under:

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Year ended Year ended
Indian entities
March 31, 2024 March 31, 2023
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Superannuation fund {Refer to note (i) below}	0.48	0.45
Provident fund administered through Regional Provident Fund	19.48	16.73
Commissioner {Refer to note (ii) below}
Employees’ State Insurance Corporation	0.16	0.30
National Pension Scheme	2.76	2.36
	22.88	19.84

Foreign subsidiaries	Year ended March 31, 2024	Year ended March 31, 2023
Contribution to provident fund	1.82	1.70
Skill, development and Social Security Fund	5.24	4.17
Pension fund	1.55	1.54
	8.61	7.41

The expenses incurred on account of the above defined contribution plans have been included in Note 26 “Employee Benefits Expenses” under the head “Contribution to provident and other funds”

(i) Superannuation fund

400

401

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(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.

35.2 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, 2024

(All amounts in ` Crores, unless otherwise stated)
(ii) The principal assumptions used for the purposes of the actuarial valuation are as follows:

Indian entities	As at March 31, 2024 As at March 31, 2023	As at March 31, 2024 As at March 31, 2023
	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	7.13% 7.13% 7.35% 7.35% - 8.25% - 8.15% 8.50% - 8.00% - 58.00 58.00 58.00 58.00 IALM (2012-14) IALM (2012-14) IALM (2012-14) IALM (2012-14) 15.00% 15.00% 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, 2024 As at March 31, 2023
Discount Rate Salary increase In service mortality Retirement Age Withdrawal Rate - up to 20 years - 21-30 - 31-40 - 41-50 - 51 onwards		2.99% 2.92% 7.00% 7.00% TMO TMO 2017 2017 55 55 16.5% 17% 16.5% 17% 7% 7% 4% 4% 1.5% 1.5%

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 complexities involved in the valuation, the probability are 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 have been measured using projected unit credit method.

403

402

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(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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Year ended Year ended
Indian entities March 31, 2024 March 31, 2023
Gratuity Provident Fund Gratuity Provident Fund
Current Service cost 12.58 7.81 10.17 7.91
Interest expenses 0.63 - 0.84 -
(net of expected return
on plan assets)
13.21 7.81 11.01 7.91
Legal Severance Pay (unfunded)
Foreign subsidiaries Year ended Year ended
March 31, 2024 March 31, 2023
Current/past Service cost 0.91 1.42
Net interest expenses 0.21 0.18
1.12 1.60
----- End of picture text -----

The current service cost and the net interest expenses for the year are included in Note 26 “Employee Benefits Expenses” under the head Contribution to provident and other funds”

(iv) Amount recognized in other comprehensive income:

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Gratuity
Indian entities Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

Remeasurment (gain) / loss :
Return on plan assets excluding interest income	(5.59)	2.33
Actuarial (gain)/losses arising from changes in	6.85	(1.58)
fnancial assumptions
Actuarial (gain)/losses arising from changes in	3.41	11.40
experience adjustments
Actuarial (gain)/ losses arising from changes in	0.10	-
demographic adjustments
	4.77	12.15

Foreign subsidiaries Remeasurment (gain) / loss : 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, 2024 Year ended March 31, 2023
	0.71 0.59 0.44 (0.79)
	1.15 (0.20)

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(v) The amounts included in consolidated balance sheet arising from the entity’s obligation in respect of its defined benefit plans are as follows:

Indian entities	As at March 31, 2024 As at March 31, 2023	As at March 31, 2024 As at March 31, 2023	As at March 31, 2024 As at March 31, 2023
	Gratuity (Funded) Provident Fund Gratuity (Funded) Provident Fund
Present value of funded defned beneft obligation Fair value ofplan assets	154.17 150.17		200.94 127.68 178.30 203.85 119.30 180.00
Surplus/ (defcit)	(4.00)		2.91 (8.38) 1.70
Efect of asset ceiling,if any	-		(2.91) - (1.70)
Net assets/ (liability)	(4.00)		- (8.38) -

			Gratuity (Unfunded)
			As at March 31, 2024 As at March 31, 2023
Present value of funded defned beneft obligation			0.52 0.17

Foreign subsidiaries			Legal Severance Pay (unfunded)
			As at March 31, 2024 As at March 31, 2023
Present value of defned beneft obligation Fair value of plan assets			8.20 6.97 - -
Net asset/ (liability)			(8.20) (6.97)
Movements in the present value of defned beneft obligation are as follows:
Indian entities		As at March 31, 2024 As at March 31, 2023
		Gratuity (Funded and Undunded) Provident Fund Gratuity (Funded and Undunded) 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 Actuarial (gain)/losses arising from changes in demographic assumptions Benefts paid Contribution by plan participants / employees Settlement/transfer in/out		127.85 178.30 107.45 155.50 12.58 7.82 10.17 7.91 9.42 14.67 7.70 12.99 6.85 - (1.58) - 3.41 - 11.40 - 0.10 - - - (5.52) (15.51) (7.29) (15.42) - 11.31 - 10.21 - 4.35 - 7.11
Closing defned beneft obligation		154.69 200.94 127.85 178.30

(vi) Movements in the present value of defined benefit obligation are as follows:

404

405

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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Legal Severance Pay (unfunded)
Foreign subsidiaries As at As at
March 31, 2024 March 31, 2023
Opening defined benefit obligation 6.97 5.33
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Current Service Cost	0.91	1.42
Interest Cost	0.21	0.18
Actuarial (gain)/losses arising from changes in	0.71	0.59
fnancial assumptions
Actuarial (gain)/losses arising from changes in experience	0.44	(0.79)
adjustments and demographic assumption
Exchange diference on foreign plans	(0.42)	0.36
Beneftspaid/Settled	(0.62)	(0.12)
Closing defned beneft obligation	8.20	6.97

(vii) Movements in the fair value of plan assets are as follows:

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As at As at
Indian entities March 31, 2024 March 31, 2023
Gratuity Provident Fund Gratuity Provident Fund
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Opening fair value of plan assets	119.30	180.00	95.88	157.64
Return on plan assets	14.36	15.89	4.53	12.55
(excluding amounts included in
net interest expenses)
Contributions from employer	22.01	7.81	26.18	7.91
Contributions from	-	11.31	-	10.21
plan participants
Benefts paid	(5.50)	(15.51)	(7.29)	(15.42)
Settlement / Transfer in	-	4.35	-	7.11
Closing fair value ofplan assets	150.17	203.85	119.30	180.00

Gratuity :

Plan assets comprise primarily of investments in HDFC Group Unit Linked Plan Fund. The average duration of the defined benefit obligation is 9.29 years (Previous year: 9.07 years). The Company expects to make a contribution of 13.77 Crores (Previous year: 11.64 Crores) to the defined benefit plans during the next financial year.

The plan assets comprises the following securities :

	As at March 31, 2024	As at March 31, 2023
Government	and Corporate bonds 85.69%	83.67%
Others	14.31%	16.33%

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

Provident fund:

The plan assets comprises the following securities :

	As at March 31, 2024	As at March 31, 2023
Government bonds	49.57%	56.15%
Public sector bonds	35.38%	35.19%
Other equityand mutual funds	15.05%	8.66%

(viii) Sensitivity Analysis

Indian entities	Year ended March 31, 2024 Year ended March 31, 2023
	0.50% increase 0.50% decrease 0.50% increase 0.50% decrease
Sensitivity analysis of gratuity Discount rate Expected salary growth Attrition rate Sensitivity analysis of Provident Fund Discount rate	(4.89) 5.21 (4.01) 4.26 5.12 (4.85) 4.21 (4.01) (0.49) 0.51 (0.41) 0.42 (0.02) 0.02 (0.01) 0.01

Foreign subsidiaries	Year ended March 31, 2024 Year ended March 31, 2023
	1% increase 1% decrease 1% increase 1% decrease
Sensitivity analysis of Legal Severance Pay Discount rate Expected salary growth	(0.95) 1.12 (0.67) 0.78 1.03 (0.90) 0.72 (0.63)

Sensitivity due to mortality and withdrawals are insignificant and hence ignored

35.3 Other long-term employee benefit

Amounts recognised in the statement of profit and loss in note 26 “Employee benefits expenses” under the head “Salaries and wages, including bonus”

Year ended March 31, 2024 Year ended March 31, 2023
Compensated absences 15.87 13.66
15.87 13.66

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Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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.

36 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, 2024 March 31, 2023
----- End of picture text -----

Number of equity shares:
(i) At the beginning of the year	198,800	195,000
(ii) Granted during the year *	-	3,800
(iii) At the end of the year	198,800	198,800
Market price on the grant date (`per equity share)	-	2,320.95
Exercise price (`per equity share)	-	10.00
Fair value of share based payment (`per equity share)	-	2,310.95
Share based payment expense recognised during the year **	8.56	8.76
* Shares granted during the previous year had a lock in period upto August 21, 2023 . These shares were pledged for a
period upto October 31, 2026.

**Includes Nil (Previous year : ` 0.35 crore) towards withholding tax on equity shares granted under the above scheme.

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

37 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, and polyester tyre cord fabric and its research and development
Chemicals business: includes refrigerant gases, industrial chemicals, specialty chemicals, fluorochemicals & allied products and its research and development.
Packaging Films business: includes polyester films, polypropylene films and aluminium foils.
Others: includes coated fabric, laminated fabric and other ancillary activities.

In addition to the material accounting policies applicable to the business segments as set out in note 2 above, the accounting policies in relation to segment accounting are as under:

a) Segment revenue and expenses

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

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Year ended Year ended
March 31, 2024 March 31, 2023
Segment revenue
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Segment revenue
a) Technical textiles business (TTB)
- External sales	1,886.99	1,891.25
- Inter-segment sales	11.02	2.63
Total	1,898.01	1,893.88
b) Chemicals business (CB)
- External sales	6,297.01	7,410.88
-Inter-segment sales	0.01	-
Total	6,297.02	7,410.88

408

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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

Year ended Year ended
March 31, 2024 March 31, 2023
c) Packaging films business (PFB)
----- End of picture text -----

- External sales	4,489.23	5,175.51
- Inter-segment sales	0.11	7.24
Total	4,489.34	5,182.75
d) Others
- External sales	465.29	392.61
- Inter-segment sales	0.01	-
Total	465.30	392.61
Total segment revenue	13,149.67	14,880.12
Less: Inter Segment revenue	11.15	9.87
Revenue from operations	13,138.52	14,870.25
Add: unallocable income	83.02	74.93
Total revenue	13,221.54	14,945.18
Segment Profts
Proft before interest and tax from each segment
a) Technical textiles business (TTB)	274.22	261.74
b) Chemicals business (CB)	1,627.38	2,340.67
c) Packaging flms business (PFB)	206.50	556.19
d) Others	93.02	34.82
Total segment results	2,201.12	3,193.42
Less: i) Interest and fnance Charges	302.29	204.82
Less: ii)Other unallocable expenses net of income	206.61	164.61
Proft before tax	1,692.22	2,823.99
Capital Expenditure
a) Technical textiles business (TTB)	215.59	134.03
b) Chemicals business (CB)	1,650.43	2,146.11
c) Packaging flms business (PFB)	456.17	513.00
d) Others	16.52	2.46
e) Unallocated	8.74	20.18
Total	2,347.45	2,815.78
Depreciation and amortisation
a) Technical textiles business (TTB)	44.72	41.07
b) Chemicals business (CB)	403.76	334.80
c) Packaging flms business (PFB)	201.05	177.79
d) Others	8.38	6.96
e) Unallocated	14.71	14.70
Total	672.62	575.32

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

Segment assets and liabilities

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As at As at
March 31, 2024 March 31, 2023
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Segment Assets
a) Technical textiles business (TTB)	2,030.45	1,754.44
b) Chemicals business (CB)	10,745.87	9,734.26
c) Packaging flms business (PFB)	6,181.15	5,800.54
d) Others	178.30	164.98
Total	19,135.77	17,454.22
Unallocable assets	1,346.17	1,300.30
Total Assets	20,481.94	18,754.52
Segment Liabilities
a) Technical textiles business (TTB)	525.38	391.76
b) Chemicals business (CB)	1,042.58	1,352.16
c) Packaging flms business (PFB)	1,392.08	1,284.12
d) Others	41.60	52.53
Total	3,001.64	3,080.57
Unallocable Liabilities	6,001.28	5,346.90
Total Liabilities	9,002.92	8,427.47

B. Information about geographical business segments

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Year ended Year ended
March 31, 2024 March 31, 2023
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Revenue from operations
- India	5,964.76	5,996.99
- USA	1,412.42	2,170.63
- South Africa	552.76	656.91
- United Kingdom	262.70	448.15
- Italy	211.33	212.84
- Indonesia	117.22	189.42
- UAE	158.97	170.84
- South Korea	121.95	161.25
- Germany	414.21	491.99
- Thailand	477.30	535.03
- Hungary	28.44	29.69
- Switzerland	659.98	877.46
- Belgium	767.81	871.88
- Others	1,988.67	2,057.17
	13,138.52	14,870.25

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Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

	As at March 31, 2024	As at March 31, 2023
Non current segment assets
Within India	11,857.70	10,012.87
Outside India	2,367.67	2,739.60
	14,225.37	12,752.47

Non current segment assets includes property, plant and equipment, right of use assets, capital work in progress, intangible assets and other non current assets.

No single customer contributed 10% or more to the Group’s revenue for both financial years 2023-24 and 2022-23.

Revenue from major products	Revenue from major products	Year ended March 31, 2024	Year ended March 31, 2023
a)	Technical Textiles Business (TTB)
	Nylon tyre cord fabric/ Polyester tyre cord fabric / Belting fabric	1,652.37	1,630.11
	Synthetic flament yarn including Industrial yarn /Twine	207.05	233.33
	Waste/others	5.52	0.84
b)	Chemicals Business (CB)
	Specialty chemicals	3,666.07	4,164.95
	Fluorochemicals, Refrigerant Gases and allied products	2,132.52	2,641.87
	Industrial chemicals	343.39	429.50
	Waste/others	9.24	0.25
c)	Packaging Films Business (PFB)
	Packaging Films	4,421.73	5,103.52
	Aluminium Foil	11.95	-
d)	Others
	Coated fabrics, Laminated fabrics and other ancillary activities	460.51	387.45
		12,910.35	14,591.82
EARNINGS PER SHARE(EPS)
		Year ended March 31, 2024	Year ended March 31, 2023
Proft attributable to equity holders of the group used in calculating		1,335.71	2,162.34
basic earning per share and diluted earning per share:
Weighted average number of equity shares of the company		29,64,24,825	29,64,23,669
used in calculating basic earning per share and diluted earning
per share (nos.)
Basic and diluted earningsper share of face value`10 each		45.06	72.95

38 EARNINGS PER SHARE (EPS)

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

39 FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

39.1 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, 2024 March 31, 2023
----- End of picture text -----

Debt and lease liabilities	5,030.54	4,477.53
Less:
Cash and cash equivalents	399.33	607.98
Deposits accounts with maturity beyond three months up	25.22	0.21
to twelve months
Current investments	405.58	490.05
Net debt	4,200.41	3,379.29
Total equity	11,479.02	10,327.05
Net debt to equity ratio	0.37	0.33

39.2 Financial instruments by category

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

Carrying value Fair value
Level of As at As at As at As at
Financial assets Notes
hierarchy March 31, March 31, March 31, March 31,
2024 2023 2024 2023
----- End of picture text -----

Measured at amortised cost
Investments in bonds	1	d	50.12	-	50.29	-
Investment in equity instruments	3	d	2.50	-	2.50	-
Investment in optionally	3	d	2.56	-	2.56	-
convertible debentures
Trade Receivables		a	1,942.82	1,785.62	1,942.82	1,785.62
Cash and cash equivalents		a	399.33	607.98	399.33	607.98
Bank balances other than above		a	8.21	8.48	8.21	8.48
Loans		a,b	63.13	55.84	63.13	55.84
Other fnancial assets		a,b	346.90	302.06	346.90	302.06
			2,815.57	2,759.98	2,815.74	2,759.98

413

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Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

Financial assets Level of hierarchy Notes	Carrying value Fair value
	As at March 31, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023
Measured at Fair value through proft and loss Investments in mutual funds 2 d Investments in bonds 1 d Derivative instruments 2 d	321.14 353.73 321.14 353.73 150.33 136.32 150.33 136.32 0.25 0.10 0.25 0.10
	471.72 490.15 471.72 490.15
Measured at Fair value through Other comprehensive income Investments in unquoted equity instruments 3 d Derivative instruments 2 d	0.05 4.16 0.05 4.16 48.48 0.89 48.48 0.89
	48.53 5.05 48.53 5.05

Financial liabilities Level of hierarchy Notes	Carrying value Fair value
	As at March 31, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023
Measured at amortised cost Borrowings 3 a,c Trade Payables a Other fnancial liabilities a,b	4,920.24 4,354.06 4,911.15 4,320.89 2,197.76 2,231.27 2,197.76 2,231.27 461.66 576.65 461.66 576.65
	7,579.66 7,161.98 7,570.57 7,128.81
Measured at Fair value through proft and loss Derivative instruments 2 d	0.83 7.09 0.83 7.09
	0.83 7.09 0.83 7.09
Measured at Fair value through other comprehensive income Derivative instruments 2 d	5.73 61.29 5.73 61.29
	5.73 61.29 5.73 61.29

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.

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(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, 2024 and March 31, 2023

Hierarchy levels :

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 : 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.
(iii) Unquoted equity investments and optionally convertible debentures : Fair value is determined based of the recoverable value as per agreement with the investee

414

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Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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Reconciliation of Level 3 fair value measurements Unlisted equity
instruments
----- End of picture text -----

As at March 31, 2022	4.16
Purchases of investment	-
As at March 31, 2023	4.16
Sale of investment	(4.11)
As at March 31, 2024	0.05

Sensitivity of the fair value measurement to changes in unobservable inputs for financial instruments in Level 3 level of hierarchy is insignificant.

39.3 Financial Risk Management

The group is exposed to various financial risks arising from its underlying operations and finance activities. The group is primarily exposed to market risk (i.e. interest rate and foreign currency risk) and to credit risk and liquidity risk. The Group’s Corporate Treasury function plays the role of monitoring financial risk arising from business operations and financing activities.

Financial risk management within the group is governed by policies and guidelines approved by the senior management and the Board of Directors. These policies and guidelines cover interest rate risk, foreign currency risk, credit risk and liquidity risk. Group policies and guidelines also cover areas such as cash management, investment of excess funds and the raising of short and long-term debt. Compliance with the policies and guidelines is managed by the Corporate Treasury function within the group. Review of the financial risk is done on a monthly basis by the Managing Director and on a quarterly basis by the Board of Directors. The objective of financial risk management is to contain, where deemed appropriate, exposures on net basis to the various types of financial risks mentioned above in order to limit any negative impact on the group’s results and financial position.

In accordance with its financial risk management policies, the group manages its market risk exposures by using specific type of financial instruments duly approved by the Board of Directors as and when deemed appropriate. It is the group’s policy and practice neither to enter into derivative transactions for speculative purpose, nor for any purpose unrelated to the underlying business. The Board of Directors / Managing Director reviews and approves policies for managing each of the above risks.

39.3.1 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.

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(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 a period of 12 to 36 months, hedging is done based on specific exposure. The information is monitored by 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 summary quantitative data about the group’s exposure to currency risk at the end of reporting periods expressed in ` are as follows:

	Assets Liabilities Net assets/ (liabilities)
	As at March 31, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023
USD EUR JPY GBP	941.37 788.95 3,966.07 3,524.47 (3,024.70) (2,735.52) 339.83 569.23 654.19 963.05 (314.36) (393.82) - - 10.65 10.70 (10.65) (10.70) 15.57 17.71 0.30 5.63 15.27 12.08

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, 2024 Year ended March 31, 2023
	`strengthens<br>by 1%<br>`weakens by 1% `strengthens<br>by 1%<br>`weakens by 1%
Impact on proft / (loss) * USD EUR JPY GBP	8.86 (8.86) 11.04 (11.04) 0.85 (0.85) (0.05) 0.05 0.11 (0.11) 0.11 (0.11) (0.15) 0.15 (0.12) 0.12

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.

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Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

	Year ended March 31, 2024 Year ended March 31, 2023
	`strengthens<br>by 1%<br>`weakens by 1% `strengthens<br>by 1%<br>`weakens by 1%
Impact on equity (Other comprehensive income) USD 21.38 (21.38) 16.32 (16.32) EUR 2.30 (2.30) 3.98 (3.98)

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 a period 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 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:

		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, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023 As at March 31, 2024 As at March 31, 2023
USD/INR Sell forward 234 278 668.20 633.00 2,517.66 2,643.59 3,204.48 2,596.61 EUR/INR Sell forward - 1 - 20.00 - 202.77 - - EUR/USD Sell forward 8 9 6.95 8.96 63.12 79.41 - - EUR/USD Buy forward 1 3 0.73 10.93 6.57 97.42 - - EUR/THB Buy forward - 1 - 1.04 - 9.77 - -

Computed using average forward contract rates

The following table details the group’s sensitivity to a 1% increase and decrease in the ` against the relevant foreign currency. The sensitivity analysis includes only outstanding forward exchange contracts as tabulated above and adjusts their translation at the period end for 1% change in forward rates. A positive number below indicates an increase in profit before tax or vice-versa.

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

	Year ended March 31, 2024 Year ended March 31, 2023
	Functional currency strengthens by 1% Functional currency weakens by 1% Functional currency strengthens by 1% Functional currency weakens by 1%
Impact on proft / (loss) for the year USD EUR Impact on equity (Other Comprehensive income) USD EUR	1.84 (1.84) 2.63 (2.63) (0.07) 0.07 (0.45) 0.45 54.97 (54.97) 50.67 (50.67) 0.63 (0.63) 1.99 (1.99)

B. Interest Rate Risk Management

Interest rate risk arises from movements in interest rates which could have effect 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 aggregate 438.88 crores and floating interest loan aggregates 2,899.03 crores (Previous year : Fixed interest loan 676.02 crores and Floating interest loan 2,134.11 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:

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

Year ended March 31, 2024 Year ended March 31, 2023
Foreign Foreign
loans interest currency loans loans interest currency loans
rate increases interest rate rate increases interest rate
by 0.50 % increases by by 0.50 % increases by
0.15 % 0.15 %
Decrease in profit before tax by (1.75) (4.05) - (3.20)
----- 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.

418

419

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(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. In the year ended March 31, 2022, 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, were allowed to continue utilizing the facility until the maturity date, provided such date is before June 30, 2023. As of March 31, 2023, the group had two long-term loan arrangements which are USD LIBOR benchmark linked and maturing after June 2023. Before this deadline, the management renegotiated one of these loans to the Secured Overnight Financing Rate (SOFR) benchmark and has prepaid the other loan before this timeline. Accordingly, the Interest rate swap contract (based on LIBOR linked loan which was prepaid) was also cancelled with a gain of ` 0.18 crores.

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 group also carries certain loans in Thailand that are linked to Bangkok Interbank Offered Rate (BIBOR) which is being phased out. The Bank of Thailand will permit existing loans to continue on BIBOR until December 2027 post which all loans will have to migrate to Thai Overnight Repurchase Rate (THOR). The group’s outstanding loans affected have the outermost maturity date as July 2026 and accordingly, 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:

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

Maturity
Contract value of Up to 12 months More than 12 months
No of Deals foreign Currency Nominal Amount Nominal Amount
Outstanding (In Millions) ( Crores) ( Crores)
Contracts As at As at As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2024 2023 2024 2023 2024 2023 2024 2023
IRS Contracts (USD) * - 2 - 7.18 - 59.00 - -
----- End of picture text -----

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

C. Hedge accounting Cash flow hedges

The amounts at the reporting date relating to the item designated as hedge items are as follows:

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

Year ended Year ended
As at March 31, 2024 March 31, As at March 31, 2023 March 31,
2024 2023
Change in Change in
Hedging Carrying Line item the value of Carrying Line item the value of
instruments Nominal amount where the the hedging Nominal amount where the the hedging
amount Assets / hedging instrument amount Assets / hedging instrument
( Crores) (liabilities) instrument is recognised ( Crores) (liabilities) instrument is recognised
( Crores) included in OCI ( Crores) included in OCI
( Crores) ( Crores)
----- End of picture text -----

Foreign		48.48	Other fnancial assets (current and non - current)			-	Other fnancial assets (current and non - current)	(121.17)
exchange	5,602.12			104.04	5,321.12
contracts *		(5.73)	Other fnancial liabilities (current and non - current)			(61.29)	Other fnancial liabilities (current and non - current)	(55.93)
Foreign currency denominated creditors	134.11	(134.11)	Other fnancial liabilities (current and non - current)	4.58	182.44	(182.44)	Other fnancial liabilities (current and non - current)	(20.27)
Foreign currency denominated loans	2,233.66	(2,233.66)	Non-current/ current borrowings	3.29	1,848.11	(1,848.11)	Non-current/ current borrowings	(57.50)
Interest rate swap contacts	-	-	-	(0.89)	59.00	0.89	Other fnancial assets (current and non - current)	(2.63)

*Sensitivity on the above IRS contracts in respect of interest rate exposure is insignificant

420

421

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(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, 2024
Year ended
March 31,
2024
As at March 31, 2023
Year ended
March 31, 2023
Nominal
amount
(**Crores)** **Carrying** **amount** **Assets /** **(liabilities)** **(**Crores)
Line item
where the
hedging
instrument
is included
Change in
the value of
the hedging
instrument
recognised in
consolidated
statement of
Proft and loss
Nominal
amount
(**Crores)** **Carrying** **amount** **Assets /** **(liabilities)** **(**Crores)
Line item
where the
hedging
instrument is
included
Change in the
value of the
hedging instrument
recognised in
consolidated
statement of Proft
and loss
(`Crores)

Foreign
exchange
contracts* 183.14
(0.79)
Other
fnancial
liabilities
(current)
6.55
308.45
(7.09)
Other
fnancial
liabilities
(current)
(10.73)
0.25
Other
fnancial
assets
(current)
-
-
-

Excluding forward contracts not designated as hedging instruments

Movement of cash flow hedging reserve and cost of hedging reserve :

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

Cash flow hedging
Cost of hedging reserve
reserve
Particulars As at As at As at As at
March 31, March 31, March 31, March 31,
2024 2023 2024 2023
----- End of picture text -----

Opening Balance	(150.34)	34.49	4.74	0.51
Changes in the spot element of the forward	(2.38)	(24.15)	-	-
contracts which is designated as hedging
instruments for time period related hedge
Changes in the forward element of the forward	-	-	(15.06)	15.68
contracts where changes in spot element of
forward contract is designated as hedging
instruments for time period related hedges
(including contracts settled during the year)
Changes in fair value of forward contracts	121.48	(172.01)	-	-
designated as hedging instruments
recognised in OCI
Changes in fair value of interest rate swaps	(0.89)	(2.63)	-	-
Amount reclassifed to proft or loss (Foreign	39.03	41.61	13.29	(10.66)
exchange (gain) / loss)
Amount arising from remeasurement of fnancial liability	(28.77)	(95.23)	-	-
Taxes related to above	(32.19)	67.58	0.43	(0.79)
Closing Balance	(54.06)	(150.34)	3.40	4.74

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(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, 2024 Year ended March 31, 2023
	Market price increase by 1% Market price decrease by 1% Market price increase by 1% Market price decrease by 1%
Impact on proft / (loss) for the year 4.71 (4.71) 4.90 (4.90)

39.3.2 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 collaterals 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 to 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 banks and financial institutions.

The cash and cash equivalents and other banks balances are held with banks, financial institutions 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.

With regard to all financial assets with contractual cash flows other than trade receivables, 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.

423

422

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(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, 2024	As at March 31, 2023
Loans - current	7	2.74	2.74
Trade receivables	12	7.56	5.30
		10.30	8.04

Movement of loss allowance :

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

Loans (Current and Trade
non current) receivables
----- End of picture text -----

As at April 1, 2022	2.74	3.45
Provided during the year	-	1.89
Reversed/ utilised during the year	-	(0.04)
As at March 31, 2023	2.74	5.30
Provided during the year	-	4.22
Reversed/ utilised during the year	-	(1.96)
As at March 31, 2024	2.74	7.56

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.

39.3.3 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 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 19

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(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, 2024	Less than 1 year	More than 1 year and up to 5 years	More than 5 years	Total
Borrowings*	2,848.43	2,123.16	437.88	5,409.47
Lease Liabilities **	35.04	81.71	41.93	158.68
Trade payables	2,197.76	-	-	2,197.76
Derivative liabilities	5.76	0.80	-	6.56
Other fnancial liabilities	461.66	-	-	461.66
	5,548.64	2,205.67	479.81	8,234.13

As at March 31, 2023	Less than 1 year	More than 1 year and up to 5 years	More than 5 years	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

includes currrent maturity of non current borrowings and future cash outflow towards estimated interest on non -current borrowings.

** including future cash outflow towards estimated interest on lease liabilities.

40 Contract balances

The following table provides information about contract liabilities from contracts with customers

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

Year ended Year ended
Contract liability
March 31, 2024 March 31, 2023
----- End of picture text -----

Opening balance	45.90	28.32
Revenue recognised that was included in the contract liability	(45.90)	(28.32)
balance at the beginning of the period
Increase due to cash received, excluding the amount recognised	33.05	45.90
as revenue during the period
Closing balance	33.05	45.90

Also refer note 12 for receivables purchase agreements entered into by the group as a part of its liquidity risk management policy.

424

425

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

41 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 [424 x 321] intentionally omitted <==

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

Particulars Land Buildings Plant & Total
equipment
Cost
Balances at April 1, 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
Additions/adjustments 6.49 5.21 9.73 21.43
Derecognition - (6.66) (4.71) (11.37)
Balance at March 31,2024 191.14 43.98 130.91 366.03
Accumulated depreciation
Balances at April 1, 2022 4.29 19.56 23.05 46.90
Depreciation expenses 2.04 6.83 18.69 27.56
Disposals - - (5.70) (5.70)
Balances at March 31, 2023 6.33 26.39 36.04 68.76
Depreciation expenses 2.18 6.68 23.14 32.00
Disposals - (6.66) (4.71) (11.37)
Balance at March 31,2024 8.51 26.41 54.47 89.39
Net block
Balances at March 31, 2023 178.32 19.04 89.85 287.21
Balances at March 31, 2024 182.63 17.57 76.44 276.64
Lease liabilities included in the Balance Sheet As at As at
March 31, 2024 March 31, 2023
Current 27.51 25.90
Non-current 82.79 97.57
----- End of picture text -----

The average incremental borrowing rate applied to lease liabilities during the year ranges from 8.03% to 8.41% (Previous year: 7.75% to 8.75%)

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

Amounts recognised in Statement of Profit and Loss Year ended Year ended
March 31, 2024 March 31, 2023
Interest on lease liabilities (refer note 27) 9.07 8.99
Depreciation expense (refer note 28) 32.00 27.56
Expenses relating to short-term leases (refer note 29) 10.62 6.66
Expenses relating to low value leases (refer note 29) 31.15 33.00
Amounts recognised in Cash Flow Statement Year ended Year ended
March 31, 2024 March 31, 2023
Total cash outflow for leases 37.18 32.47
----- End of picture text -----

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

42 Group Information

==> picture [424 x 47] intentionally omitted <==

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

Name Principal activities Country of % equity interest
incorporation
March 31, March 31,
2024 2023
----- End of picture text -----

	Development and lease of	India	100%	100%
SRF Holiday Home Limited	Industrial, commercial and
	residential complexes
SRF Altech Limited	Manufacture of aluminium foil	India	100%	100%
SRF Employees Welfare Trust (Controlled Trust)	Implementation and operationalisation of long term incentive plans of the Company	India	*	*
SRF Global BV	Investment company	Netherlands	100%	100%
SRF Flexipak (South	Manufacture of BOPP and	Republic of	100%	100%
Africa) (Pty) Limited	metallized BOPP flms	South Africa
(subsidiary
of SRF Global BV)
SRF EUROPE Kft (subsidiary	Manufacture of Polyester flm and metallized Polyester flm	Hungary	100%	100%
of SRF Global BV)
SRF Industries (Thailand) Limited	Manufacture of Polyester flm and metallized Polyester flm &	Thailand	100%	100%
(subsidiary	trading of chemical products
of SRF Global BV)
SRF Industex	Trading of packaging flms and	Republic of	100%	100%
Belting (Pty) Limited	chemical products	South Africa
(subsidiary
of SRF Global BV)
SRF Middle East	Trading of chemical products	Dubai	**	-
LLC (subsidiary
of SRF Global BV)

By virtue of management control.

426

427

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

43 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

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

Net Assets, i.e., total
Share in other Share in total
assets minus total Share in profit or loss comprehensive income comprehensive income
liabilities
Name of the entity in As % of
the Group As % of As % of consolidated As % of total
Amount consolidated Amount Amount consolidated Amount
consolidated other
( Crores) Share in ( Crores) ( Crores) comprehensive ( Crores)
net assets comprehensive
profit or loss income income
----- End of picture text -----

I	Parent - SRF	92%	10,513.71	103%	1,374.03	430%	91.01	108%	1,465.04
	Limited
II	Subsidiaries:
A	Indian
(1)	SRF Holiday Home		3.78		-		-		-
	Limited
(2)	SRF Altech Limited	4%	404.83	(1)%	(16.33)	(1)%	(0.16)	(1)%	(16.49)
(3)	SRF Employees		0.04		-		-		-
	Welfare Trust
	(Controlled Trust)
B.	Foreign
(1)	SRF Global BV	9%	1,077.95	(2)%	(22.52)	(329)%	(69.57)	(7)%	(92.09)
	(Consolidated)
	Adjustments arising	(5)%	(521.29)		0.53		(0.15)		0.38
	out of consolidation
	Total	100%	11,479.02	100%	1,335.71	100%	21.13	100%	1,356.84
	Non-controlling	Nil	Nil	Nil	Nil	Nil	Nil	Nil	Nil
	Interests in all
	subsidiaries

44 ADDITIONAL DISCLOSURES

(a) RESEARCH AND DEVELOPMENT EXPENDITURE

The details of research and development expenditure of 146.41 crores (Previous Year - 129.31 crores) included in these financials statements are as under:

	Year ended March 31, 2024	Year ended March 31, 2023
Capital expenditure	20.46	7.22
Revenue expenditure	125.95	122.09
	146.41	129.31

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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, 2024 March 31, 2023
----- End of picture text -----

Cost of material consumed Salaries and wages, including Bonus Contribution to provident and other funds Workmen and staf welfare expenses Stores and spares consumed	0.74 56.21 3.74 4.60 5.61	3.31 51.23 3.21 8.92 3.66	TE OVERVIEW
Power and fuel	10.41	12.45
Rent	1.32	0.09
Repairs and maintenance
- Buildings	0.08	0.01
- Plant and machinery	12.39	12.68
- Others	2.05	0.96
Insurance	1.10	1.06
Rates and taxes Travelling and conveyance Legal and professional charges Depreciation and amortisation expense Interest cost Miscellaneous expenses	0.04 2.36 5.34 14.56 ^ 5.40 125.95	0.08 1.58 3.47 14.19 0.07 5.12 122.09	STATUTORY REPORTS

^ Amount in absolute ` 19,704

(b) MANAGERIAL REMUNERATION

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

Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

(a)	Remuneration to Chairman / Managing
(b)	Director / Deputy Managing Director / Whole time Directors Salary and contribution to provident and other funds Value of perquisites Commission SUB-TOTAL Remuneration to Non Executive Directors Commission Directors sittingfees	22.40 2.08 16.00 40.48 1.26 0.21	25.02 2.18 16.00 43.20 1.16 0.27	FINANCIAL STATEMENTS
	SUB-TOTAL	1.47	1.43
	TOTAL	41.95	44.63

428

429

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(c) The Group has elected to continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items as described in Para D13 AA of Ind AS 101. Accordingly, exchange loss/ (gain) arising on all long term monetary items financed or re-financed on or before March 31, 2016 relating to acquisition of following depreciable assets are added to/ adjusted from the cost of such assets/ capital work in progress and will be depreciated over the balance useful life of such assets.

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

Year ended Year ended
Exchange loss/ (gain) added/ (adjusted)
March 31, 2024 March 31, 2023
----- End of picture text -----

Property, plant and equipment
- Roads	-	0.13
- Buildings	0.03	1.75
- Plant and equipment	1.23	16.58
- Furniture and fxtures	-	0.04
	1.26	18.50

The cumulative exchange loss/ (gain) added/ (adjusted) and remaining unamortised as at March 31, 2024 is 224.95 crores (Previous year: 246.11 crores).

(d) Disclosure on corporate social responsibility expense:

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

Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

(i)	Prescribed CSR expenditure as per Section 135 of the	Prescribed CSR expenditure as per Section 135 of the	41.04	28.56
	Companies Act, 2013
(ii)	Amount approved by the Board to be spent during the year		41.04	28.56
(iii)	(a)	Actual amount spent during the year on construction	13.24	11.35
		/ acquisition of an asset
(iii)	(b)	Actual amount spent during the year on purposes	18.27	17.28
		other than construction / acquisition of an asset
(iv)	Amount unspent during the year		9.51	-
(v)	Details of expenditure:
	-	In respect of ongoing projects :
	a)	Amount required to be spent during the year	21.69	-
	b)	Actual amount spent during the year from	12.18	-
		company's bank account
	c)	Remaining unpaid at the end of the year	9.51	-
		with the company *
	-	In respect of other than ongoing projects:
	a)	Amount required to be spent during the year	19.35	28.63
	b)	Actual amount spent during the year from	19.33^	28.63
		Company's bank account

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

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

Year ended Year ended
March 31, 2024 March 31, 2023
----- End of picture text -----

(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 etc.
(vii)	Detail of relatedpartytransactions(refer note no. 34.2)	25.70 28.23

Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, the unspent amount has been subsequently deposited in ”Unspent CSR Account”.

^ Out of 0.07 crore excess CSR spent during the previous year, an amount of 0.02 crore have been utilised in current financial year.

(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, 2024 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 material impact on the financial statement, particularly on the amount of tax expense and provision for taxation.
(f) In December 2023, the operations of Technical Textile Business plant, located in Manali Industrial Area, Chennai, Tamil Nadu, were disrupted due to cyclone with flooding and waterlogging in the plant premises. This incident led to damage of certain items of Property, Plant and Equipment and Inventory. Plant operations were resumed in a phased manner by February 2024. The Company is covered under its insurance policy on a ‘Reinstatement Value basis’ against the estimated losses. Based on the current best estimates of the management, expected loss has been considered in these consolidated financial statements under the respective heads (net of claim recoverable) as below:

	Year ended March 31, 2024
Loss of inventories and property, plant and equipment recognised	38.84
Repair and restoration expenses incurred till March 31, 2024	16.56
	55.40
Related insurance claim(excludingadjustment of deductible)	51.40

430

431

Annual Report [2023-24]

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Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

(g) 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 which are 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 which are 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

Notes to the Consolidated Financial Statements

for the Year ended March 31, 2024

(All amounts in ` Crores, unless otherwise stated)

  - (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.

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(iii) The group does not have any transactions with companies which are struck off, except the following:

==> picture [403 x 51] intentionally omitted <==

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

Nature of Balance Balance Relationship
Name of the struck off transactions outstanding outstanding with the struck
company with struck off as at March as at March off company, if
company 31, 2024 31, 2023 any
----- End of picture text -----

Jyotsna Engineers &	Advance given	^	^	Vendor
Consultants Private Limited
Krishna Freeze Private Limited	Advance received	0.02	0.02	Customer
Perfect Refcon & Tools Private	Advance received	0.01	0.01	Customer
Limited
Shree Krishna Well Pack Private	Payables	-	0.03	Vendor
Limited **
Shakun and Company Services	Advance given	-	*	Vendor
Private Limited **
Crownstar Industries Private	Payables	0.01	-	Vendor
Limited

As per our report of even date attached

For B S R & Co. LLP Chartered Accountants ICAI Firm registration no: 101248W/W-100022

Kaushal Kishore

Partner Membership No: 090075

Place : Gurugram Date : May 07, 2024

For and on behalf of the Board of Directors

Ashish Bharat Ram Kartik Bharat Ram Raj Kumar Jain Chairman and Joint Managing Director Director Managing Director DIN - 00008557 DIN - 01741527 DIN - 00671567

Rahul Jain

Rajat Lakhanpal

President & CFO

Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 07, 2024

^ Amount in absolute 2,000 (Previous year: 2,000)

Amount in absolute ` 618
** Restored during the current year

432

433

Annual Report [2023-24]

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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

==> picture [424 x 40] intentionally omitted <==

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

S. Name of the SRF Holiday Home Limited SRF Altech Limited
No. subsidiary (subsidiary of SRF Limited) (subsidiary of SRF Limited)
( Crores) ( Crores)
----- End of picture text -----

(a)	Reporting Period	April 1, 2023 to March 31, 2024 April 1,	2023 to March 31, 2024
(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	425.00
(f)	Reserves and Surplus	(0.22)	(20.17)
(g)	Total Assets	3.80	670.47
(h)	Total Liabilities	0.02	265.64
(i)	Investment	-	-
(j)	Turnover	-	11.95
(k)	Proft/(Loss) Before Taxation	0.01	(19.69)
(l)	Tax expense / (income)	0.00	(3.36)
(m)	Proft/(Loss) After Taxation	0.00	(16.33)
(n)	Proposed Dividend	-	-
(o)	% of shareholding	100%	100%

		SRF Employees Welfare Trust
		Controlled Trust
		(`Crores)
(a)	Reporting Period	April 1, 2023 to March 31, 2024
(b)	Date since when Trust was	27.06.2018
	acquired/formed
(c)	Reporting Currency	INR
(d)	Exchange Rate	-
(e)	Share Capital	-
(f)	Reserves and Surplus	0.04
(g)	Total Assets	0.04
(h)	Total Liabilities	-
(i)	Investment	-
(j)	Turnover	-
(k)	Proft/(Loss) Before Taxation	(0.01)
(l)	Tax expense / (income)	-
(m)	Proft/(Loss) After Taxation	(0.01)
(n)	Proposed Dividend	-
(o)	% of shareholding	100%

Foreign Subsidiaries	Foreign Subsidiaries
S. No. Name of the subsidiary		SRF Global BV# (subsidiary of SRF Limited) SRF Flexipak (South Africa) (Pty) Limited# (subsidiary of SRF Global BV)
		USD `Crores<br>Rand<br>`Crores
(a) Reporting Period April 1, 2023 to March 31, 2024 April 1, 2023 to March 31, 2024 (b) Date since when subsidiary was acquired/formed 20.10.2008 26.10.2011 (c) Reporting Currency USD `Crores<br>Rand<br>` Crores (d) Exchange Rate 83 4.37 (e) Share Capital 1,39,37,541 116.21 100 0.00 (f) Reserves and Surplus (34,89,627) (29.10) 54,64,94,751 238.82 (g) Total Assets 6,57,03,779 547.84 97,54,63,471 426.28 (h) Total Liabilities 5,52,55,865 460.72 42,89,68,620 187.46 (i) Investment 2,51,05,969 209.33 - - (j) Turnover - - 1,15,44,43,944 504.49 (k) Proft/(Loss) Before Taxation 1,54,96,988 129.21 19,76,51,643 86.37 (l) Tax expense / (income) - - 5,33,65,944 23.32 (m) Proft/(Loss) After Taxation 1,54,96,988 129.21 14,42,85,699 63.05 (n) Proposed / paid Dividend - - 35,00,00,000 152.95 (o) % of shareholding 100% 100%

S. No. Name of the subsidiary	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, 2023 to March 31, 2024 April 1, 2023 to March 31, 2024 08.09.2008 13.06.2008 THB `Crores<br>Rand<br>` Crores 2.29 4.37 20,00,00,300 45.80 1,33,20,202 5.82 3,65,14,74,913 836.19 (4,31,82,128) (18.87) 7,71,53,85,151 1,766.82 13,86,69,815 60.60 3,86,39,09,938 884.84 16,85,31,741 73.65 - - - - 5,94,75,09,636 1,361.98 26,75,46,175 116.92 8,78,481 0.20 (30,86,722) (1.35) (2,63,11,662) (6.03) (3,19,378) (0.14) 2,71,90,143 6.23 (27,67,344) (1.21) - - - - 100% 100%

434

435

Annual Report [2023-24]

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==> picture [424 x 44] intentionally omitted <==

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

S. Name of the SRF Europe Kft [#] SRF Middle East LLC
No. subsidiary (subsidiary of SRF Global BV) (subsidiary of SRF Global BV)
EURO Crores EURO Crores
----- End of picture text -----

(a)	Reporting Period	April 1, 2023 to March	31, 2024	April 1, 2023 to March	31, 2024
(b)	Date since when subsidiary	25.04.2018		12.03.2024
	was acquired/formed
(c)	Reporting Currency	EURO	`Crores\|AED\|` Crores
(d)	Exchange Rate	89.98
(e)	Share Capital	10,10,000	9.09	-	-
(f)	Reserves and Surplus	(1,55,231)	(1.40)	-	-
(g)	Total Assets	10,03,50,112	902.95	-	-
(h)	Total Liabilities	9,94,95,343	895.26	-	-
	(external liabilities)
(i)	Investment	-	-	-	-
(j)	Turnover	5,12,55,038	461.19	-	-
(k)	Proft/(Loss) Before Taxation	(67,68,585)	(60.90)	-	-
(l)	Tax expense / (income)	-	-	-	-
(m)	Proft/(Loss) After Taxation	(67,68,585)	(60.90)	-	-
(n)	Proposed Dividend	-	-	-	-
(o)	% of shareholding	100%		100%

The financial statements of these foreign subsidiaries have been converted into Indian Rupees on the basis of following exchange rates:

(i) 1 USD = ` 83.38

(ii) 1 Baht = 2.29 (iii) 1 Rand = 4.37 (iv) 1 Euro = ` 89.98

B Statement containing salient features of the financial statements of associates companies/ joint ventures

==> picture [423 x 28] intentionally omitted <==

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

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	31.03.2023	31.03.2023
Date on which the Associate was	09.01.2007	29.05.2013
associated or 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%

==> picture [424 x 40] intentionally omitted <==

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

Name of Associate Companies/Joint Malanpur Captive Vaayu Renewable
Ventures [#] Power Ltd. Energy (Tapti) Pvt. Ltd.
Description of how there is significant influence Due to control of at least Due to control of at least
----- End of picture text -----

		20% of total share capital	20% of total share capital
		as envisaged in Sec.	as envisaged in Sec. 2(6) of
		2(6) of the Companies	the Companies Act, 2013
		Act, 2013
Reason why the associate company is		*	*
not	consolidated
Net	worth attributable to shareholding as per latest	(8.75)	11.24
Audited Balance Sheet
Proft & loss for the year
(i)	Considered in Consolidation	Nil	Nil
(ii)	Not considered in Consolidation	(0.05)	0.28

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

Kartik Bharat Ram Raj Kumar Jain Joint Managing Director Director DIN - 00008557 DIN - 01741527

Chairman and Managing Director DIN - 00671567

Rahul Jain President & CFO

Rajat Lakhanpal

Senior Vice President (Corporate Compliance) and Company Secretary

Place : Gurugram Date : May 07, 2024

436

437

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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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SRF Ltd. — Annual Report 2024

61903_rns_2024-06-05_e4fd2918-321d-472e-8692-478d41a9d703.pdf

SRF/SEC/AGM-53/2024

Sub: Annual Report of 53[rd] Annual General Meeting- SRF Limited

Corporate Overview

02 93

2. Statutory Reports

Financial Statements

217 437

Chairman’s Message

Celebrating 50 Years of Manufacturing Excellence

What does it mean to SRF to reach this milestone?

Board Changes during the Year

FY24 Performance

Chemicals Business

Coming to our Fluorochemicals Business –

Packaging Films Business

Technical Textiles Business

Other Businesses (Coated and Laminated Fabrics)

Our Approach to Environmental, Social, Governance (ESG), our People, & Philanthropy

Maintaining Momentum on Diversity,

Equity, and Inclusion

SRF Foundation

Ashish Bharat Ram

Concluding Remarks

Our Glorious STARTED IN 1889 Journey

1889

Evolution of the Shri Ram Group

“A temple of

modern India”

2000-01 – President of CII

Education

Art & Culture

Concern for Employees

Global Footprint

REGISTERED OFFICE

PACKAGING FILMS BUSINESS

National

International

TECHNICAL TEXTILES BUSINESS

SPECIALTY CHEMICALS BUSINESS

COATED FABRICS BUSINESS

LAMINATED FABRICS BUSINESS

FLUOROCHEMICALS

Chairman Emeritus

Board of Directors

Corporate Information

Auditors

President & CFO

Key ESG Performance Highlights

Scope and Boundary

Reporting Frameworks

Business Portfolio

Chemicals Business

Fluorochemicals

Specialty Chemicals

Packaging Films Business

Technical Textiles Business

Our Geographical Presence

Laminated Fabrics Business

Industries We Serve

Coated Fabrics Business

Snapshot of this year’s ESG performance

Celebrating Excellence: Awards and Accolades

Registered the ‘Society for Education and Welfare Development’

MATEXIL Export Award for Outstanding Export Performance Technical Textiles Business, SRF MATEXIL, Category: Indutech

FE Visionary Leader Recognition Rahul Jain, President & CFO FinancialExpress.com

Top Value Creator 2023 – Chemicals SRF Limited

Gold Award in the 2023 Spotlight Awards (Annual Report 2022-23) SRF Limited

Corporate Governance

Our Board of Directors

The guiding force that directs the company to achieve excellence.

Board of Directors with effect from April 1, 2024

Board Committees

Business Leadership Team (BLT)

Sustainability Governance Framework

Process Owners

Operationalising ESG

Roles and responsibilities

SRF Ltd. Annual Report 2024