SRF Ltd. — Regulatory Filings 2020

Oct 12, 2020

October 12, 2020

National Stock Exchange of India Limited

Exchange Plaza, C-1, Block – G Bandra Kurla Complex, Bandra (East), Mumbai – 400 051

BSE Limited

Corporate Relationship Deptt. PJ Towers, 25th Floor, Dalal Street, Mumbai – 400 001

Stock Code: 503806

Stock code: SRF

Re: Qualified institutions placement of equity shares of face value of ₹ 10 each (the "Equity Shares") by SRF Limited ("Company") to qualified institutional buyers (the "QIP") under the provisions of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 and Companies Act, 2013 (including the rules made thereunder)

Sub: Outcome of the meeting of the QIP Committee

Dear Sir,

We wish to inform you that pursuant to the approval of the board of directors of the Company at its meeting held on August 31, 2020 and approval of the shareholders of the Company by way of a special resolution passed through postal ballot on October 8, 2020, the QIP Committee of the Company, in its meeting held today has inter alia considered and approved the interim condensed consolidated financial statements for the three months ended June 30, 2020 (the "Interim Condensed Consolidated Financial Statements"). The Interim Condensed Consolidated Financial Statements along with the limited review report by statutory auditors is annexed herewith and has been made available on the website of the Company.

The meeting of the QIP Committee commenced at 5.30 p.m. and concluded at 6.40 p.m. A certified copy of the resolution passed by the QIP Committee authorizing the approval of the Interim Condensed Consolidated Financial Statements is enclosed for your information and records.

We request you to take the above on record pursuant to compliance under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

Thank you,

For SRF Limited

Rajat Lakhanpal VP (Corporate Compliance) & Company Secretary

Encl :A/a

Chartered Accountants

Building No. 10, 12th Floor, Tower-C. DLF Cyber City, Phase-II. Gurugram $-122002$ . India

Telephone:		+91 124 719 1000
Fax:		$+9117A7259612$

Report on Review of interim condensed consolidated financial statements

$To$ The Board of Directors of SRF Limited

• 1. We have reviewed the accompanying interim condensed consolidated financial statements of SRF Limited ("the Parent") and its subsidiaries (the Parent and its subsidiaries, together referred to as "the Group"), which comprise the interim condensed consolidated Balance Sheet as at 30 June 2020, the interim condensed consolidated statement of profit and loss (including other comprehensive income), interim condensed consolidated statement of changes in equity and interim condensed consolidated statement of cash flows for the three months then ended, and notes to the interim condensed consolidated financial statements (hereinafter referred to as "the interim condensed consolidated financial statements").
• 1. Management is responsible for the preparation and presentation of the interim condensed consolidated financial statements in accordance with Indian Accounting Standard (Ind AS) 34, 'Interim Financial Reporting', prescribed under Section 133 of the Companies Act, 2013. Our responsibility is to express a conclusion on the interim condensed consolidated financial statements based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
• 1. Based on our review conducted and based on the consideration of the review reports of the other auditors referred to in paragraph 5 below, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with requirements of Ind AS 34 "Interim Financial Reporting".
• 1. We did not review the interim financial information of three subsidiaries included in the interim condensed consolidated financial statements, whose interim financial information reflects total assets of Rs 2,383.98 crores (before consolidation adjustments) as at 30 June 2020 and total revenues of Rs 256.74 crores (before consolidation adjustments), total net profit after tax of Rs 69.99 crores (before consolidation adjustments) and total comprehensive income of Rs 69.99 crores (before consolidation

$\forall$

761

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BSR&Co.LLP

adjustments), for the three months ended 30 June 2020, respectively, and cash inflows (net) of Rs 5.87 crores for the three months ended 30 June 2020, as considered in the interim condensed consolidated financial statements. The above interim financial information has been reviewed by other auditors whose reports have been furnished to us by the management and our conclusion on the interim condensed consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on the reports of the other auditors.

All of these subsidiaries are located outside India whose financial information has been prepared in accordance with accounting principles generally accepted in their respective countries and which have been reviewed by other auditors under generally accepted review standards applicable in their respective countries. The Company's management has converted the financial information of such subsidiaries located outside India from accounting principles generally accepted in their respective countries to accounting principles generally accepted in India. We have reviewed these conversion adjustments made by the Company's management. Our conclusion in so far as it relates to the balances and affairs of such subsidiaries located outside India is based on the report of other auditors and the conversion adjustments prepared by the management of the Company and reviewed by us.

Our conclusion on the interim condensed consolidated financial statements is not modified in respect of the above matter.

1. The interim condensed consolidated financial statements include the interim financial information of three subsidiaries which have not been reviewed, whose interim financial information reflect total assets of Rs 8.97 crores as at 30 June 2020 and total revenue of Rs. 0.39 crores (before consolidation adjustments), total net profit after tax of Rs. 0.12 crores (before consolidation adjustments) and total comprehensive income of Rs 0.12 crores (before consolidation adjustments) for the three months ended 30 June 2020, and cash outflows (net) of Rs. 0.25 crores for the three months ended 30 June 2020, as considered in the interim condensed consolidated financial statements. According to the information and explanations given to us by the management, this interim financial information is not material to the Group.

Our conclusion on the interim condensed consolidated financial statements is not modified in respect of the above matter.

For BSR & Co. LLP Chartered Accountants Firm's Registration Number: 101248W/W-100022 Kaushal Kisbor Partner Place: Delhi Membership Number: 090075 Date: 12 October 2020 UDIN: 20090075AAAAAY8544

SRF LIMITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET As at June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

6,333.96 223.15 1,236.98 0.62 114.65	6,022.93 227.58 1,393.29
	0.62
	116.46
4.16	4.16
43.26	43.87
19.82	15.86
16.72	14.26
34.91	35.03
96.28	96.50
8,124.51	7,970.56
1,123.63	1,201.23
427.66	198.50
1,049.75 322.65	891.07
88.87	116.44 9.03
14.81	25,17
143.00	170.38
1.78	1.74
287.12	280,80
3,459.27	2,894.36
ú.	11.84
	10,876,76
	11,583.78

Contd.

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$P_{S}$

SRF LIMITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET As at June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

	Particulars	NoteNo.	As at June 30, 2020	As at March 31, 2020
	EQUITY AND LIABILITIES
t	Equity
	Equity share capital Other equity		58.50 5,093.35	58.50 4,874.82
	Total equity		5,151.85	4,933.32
	Liabilities
$\overline{2}$	Non-current liabilities
	Financial liabilities (i) Borrowings (ii) Lease liabilities (iii) Other financial liabilities Provisions Deferred tax liabilities (net) Other non-current liabilities	6	2,988.18 70.77 233 40.89 199.04 14.20	2,311.63 73.98 22.87 37.53 175.50 14.00
3	Total non-current liabilities Current liabilities		3,315.41	2,635,51
	Financial liabilities (i) Borrowings (ii) Lease liabilities (iii) Trade payables	6	1,186.46 14.97	955.44 13.71
	a) Total outstanding dues of micro enterprises and small enterprises		27 19	30.36
	b) Total outstanding dues of creditors other than micro enterprises and small enterprises		850.07	1,081.33
	(iv) Other financial liabilities Other current liabilities Provisions Current tax liabilities (Net)		924,10 83.39 6.85 23.49	1,124.54 86.18 6.62 9.75
	Total current liabilities		3,116.52	3,307.93
	Total liabilities		6,431.93	5,943.44
	TOTAL EQUITY AND LIABILITIES		11,583.78	10,876.76

See accompanying notes to the interim condensed consolidated 1 to 16 financial statements

As per our report of even date attached

For B S R & Co. LLP^o
Chartered Accountants ICAI Firm registration no: 101248W/W-100022

Kaushal Kishore

Partner Membership No: 090075 Place : Delhi Date: October 12, 2020

୍∨

For and on behalf of the Board of Directors

Z

Ashish Bharat Ram Managing Director DIN-00671567 Place : Gurugram

and re

Rahul Jain President & CFO Place: Gurugram

An-Kartik Bharat Ram Dy Managing Director. DIN-00008557

Place : Delhi

Rajat Lakhanpal Najar Manuary
Vice President
(Corporate Compliance)
and Company Secretary

$\mathsf{Place} : \mathsf{Gurugram}$

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INTERIM CONDENSED CONSOLIDATED STATATEMENT OF PROFIT AND LOSS for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

	Particulars	Three months ended June 30, 2020	Three months ended June 30, 2019
I П	Revenue from operations Other income	1,545.15 10.10	1,763.29 30.24
Ш	Total Income $(I + II)$	1,555.25
IV	Expenses		1,793.53
	Cost of materials consumed
	Purchases of stock-in-trade	682.07	948.08
	Changes in inventories of finished goods, work-in-progress and stock-	12.10	16.86
	in-trade	47.35	(11.64)
	Employee benefits expense	137.49	129.02
	Finance costs	43.16	51.51
	Depreciation and amortisation expense	104.02
	Other expenses	302.89	92.46 336.29
	Total expenses (IV)	1,329.08	1,562.58
V	Profit before tax from continuing operations (III - IV)	226.17	230.95
VI	Tax expense related to continuing operations
	Current tax $\wedge$ Deferred tax	40.78	28.82
	- MAT credit entitlement
	$-$ Others #	8.52	(13.01)
	Total tax expense related to continuing operations ^ including related to earlier years : Nil {Previous period : Credit of Rs. 11.71 crores} # including related to earlier years : Nil (Previous period : Charge of Rs. 4.45 crores)	49.30	39.80 55.61
	VII Profit for the period from continuing operations (V - VI)
		176.87	175.34
	VIII Profit before tax from discontinued operations (Refer to note 13)	0.25	9.92
IX	Tax expense/ (credit) of discontinued operations	0.03	(3.96)
X XI	Profit for the period from discontinued operations (VIII - IX)	0.22	13.88
	Total Profit for the period $(VII + X)$	177.09	189.22

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Contd.

$86$

INTERIM CONDENSED CONSOLIDATED STATATEMENT OF PROFIT AND LOSS for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

		Particulars	Three months ended June 30, 2020	Three months ended June 30, 2019
		XII Other comprehensive income
A	(i)	Items that will not be reclassified to profit or loss
		- Remeasurements of the defined benefit plans
			2.68	(5.39)
	(ii)	Income tax relating to items that will not be reclassified to profit or loss	(0.94)	1.88
B	(i)	Items that will be reclassified to profit or loss
		- Exchange differences on translation of foreign operations	28.16	12.37
		- Effective portion of gains and loss on designated portion of
		hedging instruments in a cash flow hedge	17.34	(9.33)
	(ii)	Income tax on items that will be reclassified to profit or loss	(6.06)	3.47
		Total other comprehensive income for the period, net of taxes $(A(i+ii) +$
$B(i+ii)$			41.18	3.00
		XIII Total comprehensive income for the period $(XI + XII)$
			218.27	192.22
		Basic and diluted earning per equity share (not annualised) in Rs. (Refer to note 10)
		From continuing operations
		From discontinued operations	30.77	30.50
		From continuing and discontinued operations	0.04	2.42
			30.81	32.92

See accompanying notes to the interim condensed consolidated financial 1 to 16 statements

As per our report of even date attached

For $B S R & C_0$ . LLP
Chartered Accountants
ICAI Firm registration no: 101248W/W-100022

Kaushal Kishore

Partner Membership No: 090075 Place: Delhi

Date: October 12, 2020

$\sqrt[3]{2}$

Premiodala

For and on behalf of the Board of Directors

Ashish Bharat Ram

Managing Director DIN-00671567 Place: Gurugram

Rahul Jain President & CFO Place: Gurugram

Kartik Bharat Ram Dy.Managing Director DIN-00008557 Place: Delhi,

Rajat Lakhanpal Vice President (Corporate Compliance) and Company Secretary

Place: Gurugram

INTERIM CONDENSED CONSOLIDATED CASH FLOW STATEMENT
for the three months period ended June 30, 2020
(All amounts in Rs. Crores, unless otherwise stated)

Particulars	Three months ended June 30, 2020	Three months ended June 30, 2019
CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax
- Continuing Operations
- Discontinued Operations	226 17	230 95
Adjustments for	0.25	9 9 2
Finance costs	4318
Interest income	(193)	51 84
Net (gain) / loss on sale of property, plant and equipment	0.03	(11.25) 010
Net gain on financial assets measured at fair value through profit and loss	(6.78)	(2.02)
Credit impaired assets provided / written off Amortisation of grant income	014	0.42
Depreciation and amortisation expense	(0.16)	(175)
Property, plant and equipment and inventory discarded / provided	104 02	94 52
Provision / liabilities no longer required written back	007	0.11
Net unrealised currency exchange fluctuations loss /(gain)	(0.05)	(0.20)
Employee share based payment expense	(389)	(21.30)
	0.26	0.24
Adjustments for (increase) /decrease in operating assets :-
Trade receivables
Inventories	(16452)	20 06
Loans (current)	82 06	12.23
Loans (non-current)	1078	(1995)
Other assets (current)	0.61	(377)
Other assets (non-current)	2271 (343)	(22.80)
Adjustments for increase / (decrease) in operating liabilities -		(0.16)
Trade payables Provisions	(220 20)
Other liabilities (non-current)	3 27	(5906) 269
Other liabilities (current)	(033)	0.51
	69 93	1597
Cash generated from operations	162,19	297.30
Income taxes paid (net of refunds)	(2193)	(2338)
Net cash generated from operating activities	140.26	273,92
В CASH FLOW FROM INVESTING ACTIVITIES
Net proceeds/ (purchases) of mutual funds
Purchase of non-current investments	(22238)	0.33
Interest received	ś,	(4.05)
Decrease / (increase) in bank balances not considered as cash and cash equivalents	073 (79.84)	12.12
Payment for purchase of property, plant, equipment, capital work-in-progress and intangible assets	(195.48)	075
Proceeds from disposal of property, plant and equipment		(272.93)
Net cash used in investing activities	0.16 (496.81)	082
c CASH FLOW FROM FINANCING ACTIVITIES		(262.96)
Proceeds from borrowings (Non-current)
Repayment of borrowings (Non-current)	750 00	156.60
Net proceeds / (repayment) from borrowings (Current)	(344.29)	(21536)
Dividends on equity share capital paid	225 59	38.70
Payment towards lease liability	(039) (3.65)	(0 14)
Finance costs paid	(6523)	(3.67)
Net cash (used in) / generated from financing activities	562.03	(5596) (79.83)
		Contd

Processors of

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INTERIM CONDENSED CONSOLIDATED CASH FLOW STATEMENT The ENGINE CONDENSELY CONSOLLERS I ED CASE
for the three months period ended June 30, 2020
(All amounts in Rs. Crores, unless otherwise stated)

	Particulars	Three months ended June 30, 2020	Three months ended June 30, 2019
D	EFFECT OF EXCHANGE RATE CHANGES
		0.73	0.49
	Net movement in cash and cash equivalents	206.21	(68.38)
	Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the period	116 44	18955
		322.65	121.17
	Notes:

The interim condensed consolidated cash flow statement has been prepared under the indirect method as set out in Indian Accounting Standard (Ind AS) -7 on

See accompanying notes to the interim condensed consolidated financial statements

$1 to 16$

As per our report of even date attached For B S R & Co. LLP Chartered Accountants
ICAI Firm registration no 1248W/W-100022 Kaushal Kighay Membership No: 09 Place Delhi Date October $f_2$ $1020$ $\sqrt[3]{6}$

For and on behalf of the Board of Director Ashish Bharat Ram
Managing Director DIN -00671567

Place Gurugran aud Rahul Jain President & CFO
Place : Gurugram

Kartik Bharal Ram ż Dy.Managing Director DIN -00008557
Place Delhi $\overline{\mu}$ Rajat Lakhanpal

Vice President (Corporate $\operatorname{Compiance}$ and Company Secretary

Place : Gurugram

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INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

(a) Equity share capital
Balance as at March 31, 2019 Changes in equity share capital during the period	58.50
Balance as at June 30, 2019
Balance as at March 31, 2020 Changes in equity share capital during the period	58 SC
Balance as at June 30, 2020

(b) Other Equity

				Reserves and surplus				Items of other comprehensive income
	Capital reserve	General reserve	Capital redemption reserve	Debenture redemption reserve	Employee share based payment reserve	Retained carnings	Foreign currency translation reserve	Equity instruments through other comprehensive income	Effective portion of cash flow hedge	Total
Balance as at March 31, 2019	193.77	573.77	10.48	75.00	0.58	3,201.00	(4.00)	(4.22)
Profit for the period	٠			$\overline{\phantom{a}}$					24.39	4,070.77
Other comprehensive income for the						189 22	×	$\overline{\phantom{a}}$	٠	189.22
period, net of income tax			$\blacksquare$	$\overline{\phantom{0}}$		(3, 51)	12.37	×	(586)	3.00
Total comprehensive income for the period				۰	÷	185.71	12.37
Employee share based payments to employees	٠			$\blacksquare$	0.24	$\frac{1}{2}$	٠	$\mathcal{C}$ ÷	(5.86) ×	192.22 0.24
Balance as at June 30, 2019	193.77	573.77	10.48	75.00	0.82	3,386.71	8.37	(4.22)	18.53	4,263.23
Balance as at March 31, 2020	193.77	573.77	10.48	75.00
Profit for the period			۰	÷	1.56	4,117.69	(14.67)	(4.22)	(78.56)	4,874.82
Other comprehensive income for the			٠	۰.		177.09				177.09
year, net of income tax						1.74	28.16		1128	41.18
Total comprehensive income for the period				٠	$\sim$	178.83	28.16	$\sim$	11.28	218.27
Employee share based payments to employees				×	0.26	$\tilde{\phantom{a}}$	×	٠	÷	0.26
Transfer from Debenture redemption reserve	$\blacksquare$	75.00		(75.00)	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	Q.	ε	÷	٠
Balance as at June 30, 2020	193.77	648.77	10.48
					1.82	4,296.52	13,49	(4.22)	(67.28)	5.093.35

See accompanying notes to the interim condensed consolidated financial statements

$1$ to $16\,$

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 Delhi Date October 12, 2020

Vien bale

For and on behalf of the Board of Directors

Ashish Bharat Ram Managing Director DIN-00671567 Place : Gurugram

aul

Rahul Jain President & CFO Place : Gurugram

Kartik Bharat Ram Dy.Managing Director DIN-00008557 Place : Delhi

Rajat Lakhanpal Vice President (Corporate Compliance) and Company Secretary Place: Gurugram

Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020

(All amounts in Rs. Crores, unless otherwise stated)

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

The principal activities of the Company and its subsidiaries (together the Group) are manufacturing, purchase and sale of technical textiles, chemicals, packaging

The Interim condensed consolidated financial statements were approved by the Board of directors on October 12, 2020

SIGNIFICANT ACCOUNTING POLICIES $\overline{1}$

2.1 Basis of preparation

These Interim Condensed Consolidated Financial Statements of the Group have been prepared in accordance with the Indian Accounting Standards (Ind AS) 34, "Interim Financial Reporting" notified under section 133 of the Companies Act, 2013 (the 'Act') and rules thereunder.

The Group has followed the same accounting policies in preparation of Interim Condensed Consolidated financial statement as those followed in preparation of annual consolidated financial statements as at and for the year ended March 31, 2020 These Interim Condensed Consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes for the year ended March 31, 2020.

The Group's consolidated financial statements are presented in INR, which is also the parent company's functional currency. For each entity the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. All values are rounded to the nearest

The interim condensed consolidated financial statements comprise the financial statements of the holding Company and its subsidiaries.

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 off during the year are included in the interim consolidated statement of profit and loss from the date the Group gains control until the date when the Group ceases to control the subsidiary.

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

Necessary adjustments are made in the interim condensed consolidated financial statements of subsidiaries to bring their accounting policies in line with the

All intra-company assets and liabilities, equity, income, expenses, and cash flows relating to transactions between members of the Group are eliminated in full on

The subsidiaries considered in the preparation of these interim condensed consolidated financial statements are: -

Name of subsidiary SRF Holiday Home Limited	Country of incorporation	Proportion of ownership as at June 30, 2020	Proportion of ownership as at March 31,2020
SRF Global BV	India	100%	100%
SRF Europe Kft(100% subsidiary of SRF Global BV).	Netherlands	100%	100%
SRF Industries (Thailand) Limited (100% subsidiary of SRF Global BV)	Hungary	100%	100%
SRF Industex Belting (Pty) Limited (100% subsidiary of SRF Global BV)	Thailand	100%	100%
	Republic of South	100%	100%
SRF Flexipak (South Africa) (Pty) Limited (100% subsidiary of SRF Global BV)	Africa Republic of South Africa	100%	100%
SRF Employees Welfare Trust (Controlled Trust)	India

* By virtue of management control

The Group owns 22.60% (March 31, 2020 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.

The Group owns 26.32% (March 31, 2020: 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.

$\int_{101}^{\infty}$ data

Convertion

2.2 Fair value measurement

The Group 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: 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 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 nonfinancial 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 is 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 interim condensed 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:

a) Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

b) Level 2 - inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived

c) Level 3 - inputs for the asset or liability that are not based on observable market data (unobservable inputs).

For assets and liabilities that are recognised in the interim condensed 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

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.

2.3 Income tax expense for the period

Income tax expense is recognised at an amount determined by multiplying the profit (loss) before tax for the interim reporting period by management's best estimate of the weighted average annual income tax rate expected for the full financial year and adjusted for the tax effect of certain items recognised in full in the interim period. As such, the effetive tax rate in the interim financial statements may differ from the management's estimate of the effective tax rate for the annual financial

Recent accounting pronouncements $2.4$

Ministry of Corporate Affairs, vide notification dated 24 July 2020, has issued the Companies (Indian Accounting Standards) Amendment Rules, 2020 to amend certain Ind AS's, The amendments are effective from annual periods commencing on or after April 1, 2020 as below

• Practical expedient in Ind AS 116, Leases, relating to rent concessions occurring as a direct consequence of COVID-19 pandemic;
• Amendment to definition of "business" (Ind AS 103, Business Combination);
• Refined definition of "material" (Ind AS 1 Presentation of Financial Statements and Ind AS 8, Accounting Polices, Change in Accounting Estimate and Errors); - Interest rate benchmark reform (Ind AS 107, Financial Instruments: Disclosures and Ind AS 109, Financial Instruments

The above amendments do not have any significant impact on the financial statements.

Significant accounting judgements, estimates and assumptions $\overline{\mathbf{3}}$

The preparation of interim condensed 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

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.

The significant areas of estimation, uncertainty and critical judgments in applying accounting policies are the same as those described in last annual financial

le tout

Agruatzin

Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020
(All amounts in Rs. Crores, unless otherwise stated)

4 PROPERTY, PLANT AND EQUIPMENT

Particulars	Freehold land	Roads	Buildings	Plant and	Furniture and
Cost				equipment		Office	Vehicles	Total
Balance as at March 31,2019					fixtures	equipment
Additions/adjustments	35791	63 99	844.67
	2616	1168	44.50	5,27130	27.27	58.2	39.04	5,663.29
Disposals/adjustments	(132)	(0.99)		910.77		8.90	935	1,014.06
Effect of foreign currency exchange differences	$0 - 19$		(48.37)	(93, 83)		(2.62)	(763)	(155.58)
Balance as at March 31,2020		(0.46)	(4.52)	(6.14)	$(0.83)$ $(0.13)$	(0.19)	0.03
	382.94	74.22	836.28	6,082.10	29,01			(11.22)
Additions/adjustments						64.30	41.70	1510.55
Disposals/adjustments	×		50,17	327.50
		(015)	(0.92)		0,65	0.97	0.36	379,65
Effect of foreign currency exchange differences	278	045		$\frac{(2.67)}{31.77}$	(0.02)	(0.10)	(0.83)	(4.69)
Balance as at June 30, 2020	385.72		6.16		0.13	0.24	0.03	41.56
		74.52	891.69	6,438.70	29.77	65.41	41.26	7,927.07
Accumulated depreciation
Balance as at March 31,2019
Depreciation expenses	a	586	92 28	1,013 23	PO 6	28 64
- Continuing operations							1779	1,166.84
2019 For the period ended June 30	$\,$
For the period July 01, 2019 to March 31, 2020	$\frac{1}{2}$	040	589	7592	0.60
- Discontinued operations		186	1734	24491		217	179
					167	592	592	$\frac{86.77}{277.62}$
2019 For the period ended June 30 For the period July 01, 2019			075
to March 31, 2020		ν.		0.93	0.01	0.06	0,0.1
Disposals/adjustments			095	0.97		0.56	0.01	$1,78$ 2.49
Effect of foreign currency exchange differences		(036)	(1449)	(24.46)	(0.19)	2.07	(4.75)
Balance as at March 31,2020	$\mathcal{F}_1$	(002)	(0.20)	(1.23)	(0.00)	(0, 13)		(46.32)
		7.74	102.52					(1, 56)
				1.310.27	11.13	35.15	$0.02$ 20.81	1,487.62
Depreciation expenses
- Continuing operations
2020 For the period ended June 30,		045
Disposals/adjustments			6 11	8657	081	196	$1\,$ 8 $\,$	97.71
Effect of foreign currency exchange differences		007	0.79	(0.05)		(0.06)	(074)	$\left(0.85\right)$
Balance as at June 30, 2020		8.26		747	0.110	0.18	0.02	8.63
			109,42	1,404.26	$12.04$	37.23	21.90	1,593.11
Particulars	Freehold Land	Roads	Buildings
				equipment Plant &	Furniture and	Office	Vehicles	Total
Net block					fixtures	equipment
Balance as at March 31,2020	38294
Balance as at June 30, 2020		66.48	52 EE	4,771.84	17.88	29.15	20.89
	385 72	66.26	$rac{1}{200}$					0.02293

Notes:

0). The group accounts for all discussions of property, plan and equipment incounter the progress in the construction of the movement in capital work in progress is the difference between closing and opening balances of
ca

P

29.15 $28.18$

$1773$

5,034.44

$782.2$

66.26

(ii) Disposals/adjustments include property plant and equipment of discontinued operations. Refer to Note 13

Aple عامی من میں ا

Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

5 OTHER INTANGIBLE ASSETS

Particulars	Trade Marks/Brands Technical Knowhow		Software	Others	Total
Cost
Balance as at March 31, 2019 Additions / adjustments	77.20	45.67	26.71	19.30	168.88
Disposals/adjustments	0.33	10.51	4.39	0.09	15.32
Balance as at March 31, 2020		(0.99)	(0.35)		(1.34)
Additions / adjustments	77.53	55,19	30.75	19.39	182.86
			0.07		0.07
Disposals/adjustments
Balance as at June 30, 2020	77.53	55,19	30.82	19.39	182.93
Accumulated amortisation
Balance as at March 31, 2019	14.15
Amortisation expenses		5.23	22.24	18.40	60.02
- Continuing operations
For the period ended June 30, 2019	0.80	0.48
For the period July 01, 2019 to March 31, 2020	181	1.23	0.56	0.07	1.91
- Discontinued operations			2,50	0.03	557
For the period ended June 30, 2019			0.02
For the period July 01, 2019 to March 31, 2020					0.02
Disposals/adjustments		(0.99)	(0.13)
Balance as at March 31, 2020	16.76	5.95	25.19	18.50	(112)
Amortisation expenses					66.40
- Continuing operations
For the period ended June 30, 2020	0.61	0.42	0.84
Disposals/adjustments		$\mu$		0.01	188
Balance as at June 30, 2020	17.37	6.37	26.03	18.51
Net block					68.28
Balance as at March 31, 2020
	60.77	49.24	5.56	0.89	116,46
Balance as at June 30, 2020	60,16	48.82	4.79	0.88	114.65

Notes:

Notes.
Disposals/adjustments pertain to intangible assets of discontinued operations. Refer to Note 13

hai bala

(Gurugram) - 75

$26$

Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

6 BORROWINGS

	As at June 30, 2020	As at
Non-current		March 31, 2020
Secured
Nil (March 31, 2020: 3000 Nos. 7.33%), listed, secured redeemable non-convertible debentures of Rs. 10 lakhs each		299.97
Term loans from banks	2,675,45
Term loans from others	241 71	1,890.89
Less: current maturities of long term borrowings	(550, 12)	281.59 (779.75)
Unsecured	2,367.04	1,692.70
Term Loans from Banks	621.14	618.93
	621,14	618.93
Current	2,988.18	2,311.63
Secured
Cash credits from banks	11.25
Term loans from banks	207 17	10.00 256 84
Unsecured	218,42	266.84
Term loans from banks	968.04
		688 60
	968,04	688,60
	1,186,46	955.44
COLL

There have been no defaults in repayment of principal and interest on borrowings during the reporting periods.

The details of additional non current borrowings and repayments for the period ended June 30, 2020 are as follows:

Non-current

Balance as at March 31, 2020 (including current maturity of long term borrowings)	3,091.38
Additional Borrowings: Rupee term loan	750.00
Repayments Rupee term loan
External commercial borrowings (ECB)	(411) (40.18)
Secured redeemable non-convertible debentures Other movements (net)	(300.00) 41.21
Balance as at June 30, 2020 (including current maturity of long term borrowings)	3,538,30

The additional borrowings mentioned above consist of two term loans of Rs.500 crores and Rs 250 crores respectively The term loan of Rs 500 crores is at interest rate of Repo rate plus spread of 250 basis point and repayable in 12 quarterly instalments of Rs 41.67 crores each, starting from March 2022 The term loan of Rs. 250 crores is at interest rate of Repo rate plus spread of 225 basis points and repayable in 16 quarterly instalments of Rs. 15.63 crores each, starting from July 2021

The additional borrowings mentioned above are to be secured by hypothecation of Company's moveable properties, both present and future, situated at Manali, Viralimalai and Gummidipoondi (save and except moveable assets of Coated Fabrics Business) in the State of Tamil Nadu, Jhiwana in the State of Rajasthan, Malanpur and Special Economic Zone, Indore in the State of Madhya Pradesh, Kashipur in the State of Uttarakhand (save and except moveable assets of Laminated Fabrics Business) and Dahej in the State of Gujarat (excluding certain assets) or wherever else the same may be or be held by any party to the order or disposition of the Borrower or in the course of transit or on high seas or on order, or delivery, howsoever and wheresoever, in the possession of the Borrower and either by way of substitution or addition.

Prahi vode

Concerning le

SRELIMITED

Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

7 CONTINGENT LIABILITIES

	As at June 30,2020	As at March 31,2020
a. Claims against the Group not acknowledged as debts :
Goods and Services tax, excise duty, custom duty and service tax * Sales tax and entry tax **	22.89	21.33
Income $\text{Tax}$ ****	19.08	19.08
Others***	3.24	5.79
	14.44	11.85
And the state of the state of the state of the state of the state of the state of the state of the state of the

Amount deposited against contigent liability Rs. 2.81 Crores (March 31, 2020 : Rs. 2.72 Crores) $\dot{a}$

Amount deposited against contigent liability Rs. 4.89 Crores (March 31, 2020 : Rs. 4.62 Crores) $\alpha \neq 0$

Amount deposited against contigent liability Rs. 0.49 Crores (March 31, 2020 : Rs. 0.49 Crore) ARAN

Amount deposited against contigent liability Rs. 3.24 Crores (March 31, 2020 : Rs. 5.68 Crores) $\phi \neq \phi$

Includes demand by Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Ltd. (MPPK VV Ltd) of Rs. 10.06 Crores (March 31, 2020 Rs. 10.06) crores which is disputed by the Company

All the above matters are subject to legal proceedings in the ordinary course of business. In the opinion of the management, the legal proceedings, when ultimately concluded, will not have a material effect on the results of the operations or financial position of the Group.

The Company has been served with show cause notices regarding certain transactions as to why additional customs / excise duty / service tax $\mathbf{h}$ amounting to Rs. 19.84 Crores (March 31, 2020 Rs. 25.61 Crores) should not be levied. The Company has been advised that the contention of the respective departments is not tenable and hence the show cause notice may not be sustainable.

During the year ended March 31, 2020, the Company has received a draft assessment order for assessment year 2016-17 in which adjustments amounting to Rs. 367.37 Crores have been proposed on account of transfer pricing adjustments etc., which are pending before Dispute Resolution Panel. Based on the transfer pricing study, facts of the case and applicable case laws, the Company is of the view that the proposed adjustments are not sustainable.

• In February 2019, the Honorable Supreme Court of India in its judgement opined on the applicability of allowances that should be considered $\epsilon$ to measure obligations under Employees Provident Funds and Miscellaneoues Provisions Act, 1952. The Company believes that there are interpretative challenges on the application of judgement retrospectively and, therefore, has applied the judgement on a prospective basis.
• SRF Industries (Thailand) Limited closed its Technical Textiles Business operations located at Rayong, Thailand w.e.f. October 21, 2019 $\mathbf d$ Accordingly all the statuory dues as per applicable laws pertaining to employees were settled at the time of severance. However, two employees have filled a case before labour court for alleged unfair termination and short payments. The demand aggregates to Rs. 2.59 crores (THB 1.06 crores), which has been included in claims mentioned above.

Subsequent to quarter ended June 30, 2020, additional claims have been filed by 144 employees aggregating to Rs. 17.52 crores (THB 7.16 crores). The management believes that payment of such claims is remote based on the external lawyer's opinion that the Company has complied with labour laws of Thailand and all the statutory dues of each of these complainants have already been paid and hence these complaints are liable to be dismissed.

The amounts shown above represent the best estimates arrived at on the basis of available information. The uncertainties and possible $\epsilon$ reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Group or the claimants, as the case may be, and, therefore, cannot be predicted accurately or relate to 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.

8 CAPITAL AND OTHER COMMITMENTS

(i) Estimated amount of contracts remaining to be executed on capital account and not provided for June 30,2020 March 31, 2020 (net of advances) 447.20 36205

(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

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Guiugesti

As at

As at

Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

9 SEGMENT REPORTING

Based on the guiding principles laid down in Indian Accounting Standard (Ind AS) - 108 "Segment Reporting", the Managing Director of the Group is the Chief Operating Decision Maker (CODM) and for the purposes of resource allocation and assessment of segment performance, the business of the Group is segregated in the segments below:

• Technical Textiles business: includes nylon tyre cord fabric, belting fabric, polyester tyre cord fabric and industrial yarns and its research and development

· Chemicals business: includes refrigerant gases, industrial chemicals, speciality chemicals, fluorochemicals & allied products and its research and development.

· Packaging Film business: includes polyester films and polypropylene films.

· Others: include coated fabric, laminated fabric and other ancilliary activities

Segment revenue, results and capital employed include the respective amounts identifiable to each of the segments. Other unallocable expenditure includes expenses incurred on common services provided to the segments, which are not directly identifiable.

In addition to the significant accounting policies applicable to the business segments as set out in the annual financial statements for the year ended March 31, 2020, the accounting policies in relation to segment accounting are as under:

a) Segment revenue and expenses

Joint revenue and expenses of segments are allocated amongst them on a reasonable basis. All other segment revenue and expenses are directly attributable to the segments. These amounts relate to continuing operations, unless otherwise stated.(Refer to note 13 with regard to information in relation to discontinued operations).

b) Segment assets and liabilities

Segment assets include all operating assets used by a segment and consist principally of operating cash, trade receivables, inventories and property plant and equipment and intangible assets, net of allowances and provisions, which are reported as direct offsets in the consolidated balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities and do not include deferred income taxes. While most of the assets / liabilities can be directly attributed to individual segments, the carrying amount of certain assets / liabilities pertaining to two or more segments are allocated to the segments on a reasonable basis.

$\Lambda$ Information about operating business segments

Segment revenue	Three months ended June 30, 2020	Three months ended June 30, 2019
a) Technical textiles business (TTB)
- External sales
- Inter-segment sales	138.88	381.56
Total	1.56	0.51
b) Chemicals business (CB)	140.44	382.07
- External sales
- Inter-segment sales	705.22	603.21
Total
c) Packaging films business (PFB)	705.22	603.21
- External sales
- Inter-segment sales	677.35	701.30
Total		0.35
d) Others	677.35	701.65
- External sales
- Inter-segment sales	23.70	77.22
Total
	23.70	77.22
Total segment revenue	1,546.71
Less: Inter Segment revenue		1,764.15
Revenue from operations	1.56	0.86
Add: unallocable income	1,545.15	1,763.29
Total revenue	10.10	30.24
	1,555.25	1,793.53

le Me

Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

Segment Profits Profit before interest and tax from each segment	Three months ended June 30, 2020	Three months ended June 30, 2019
a) Technical textiles business (TTB)
b) Chemicals business (CB)	(14.02)	56.88
c) Packaging films business (PFB)	88.56	78.67
d) Others	220.74	145.57
Total segment results	(0.28)	10.12
Less: i) Interest and finance Charges	295.00	291.24
Less: ii) Other unallocable expenses net of income	43.16	51.51
Profit before tax from continuing operations	25.67	8.78
Profit before tax from discontinued operations	226.17	230.95
Total profit before tax	0.25	9.92
	226.42	240.87
Segment assets and liabilities	As at June 30, 2020	As at March 31, 2020
Segment Assets
a) Technical textiles business (TTB)
b) Chemicals business (CB)	1,343.57	1,385.06
c) Packaging films business (PFB)	5,297.13	5,247.50
d) Others	3,838.05	3,582.77
Total	180.46	187.37
Unallocable assets	10,659.21	10,402.70
Assets classified as held for sale	924.57	462.22
Total Assets	11,583.78	11.84
		10,876.76
Segment Liabilities
a) Technical textiles business (TTB)	159.63
b) Chemicals business (CB)	566.40	303.71
c) Packaging films business (PFB)	618.60	515.33
d) Others Total	22.54	664.05
Unallocable Liabilities	1,367.17	43.68 1,526.77
Total Liabilities	5,064.76	4,416.67
	6,431.93	5,943.44

Information about geographical business segments $\overline{B}$

Revenue from operations	Three months ended June 30, 2020	Three months ended June 30, 2019
- India
- South Africa	579.88	978.39
- Germany	116.86	91.96
$- USA$	94.52	112.66
- Belgium	85.78	136.24
- Thailand	153.91	32.50
- Switzerland	37.61	35.84
- Others	161.34	72.15
	315.25	303.55
	1,545.15	1,763.29

har vous

Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

Revenue from major products	Three months ended June 30, 2020	Three months ended June 30, 2019
a) Technical Textiles Business (TTB) Nylon tyre cord fabric/ Polyester tyre cord fabric / Belting fabric Synthetic filament yarn including Industrial yarn /Twine b) Chemicals Business (CB)	125.50 12.30	326.82 51.63
Speciality chemicals Fluorochemicals, Refrigerant Gases and allied products Industrial chemicals Waste/others c) Packaging Films Business (PFB) Packaging Films	471.73 159.06 56.59 0.23	235.14 259.87 94.14 0.33
d) Others Coated fabric, laminated fabric and other ancilliary	666.29	688.73
activities	21.42	75.56
Other operating income	1,513.12	1,732,22
Revenue from operations	32.03	31.07
	1,545.15	1,763.29

haisvous

A Mendieu $RG$

Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

10 EARNINGS PER SHARE (EPS)

	Three months ended June 30, 2020	Three months ended June 30, 2019
Profit attributable to equity holders of the group used in calculating basic earning per share and diluted earning per share: - From continuing operations
- From discontinued operations	176.87	175.34
- From continuing and discontinued operations	0.22	13.88
	177.09	189.22
Weighted average number of equity shares of the group used in calculating basic earning per share and diluted earning per share (nos.)	57,480,500	57,480,500
Basic and diluted earnings per share (not annualised) in Rs.
- From continuing operations - From discontinued operations - From continuing and discontinued operations	30.77 0.04 30.81	30.50 2.42 32.92

Rand
Viali-dala

A Colemanne

Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

FINANCIAL INSTRUMENTS - FAIR VALUE $\frac{1}{2}$

Comparison by class of the carrying amounts and fair value of the Group's financial instruments :

			Carrying value as at		Fair value as at
Financial assets	Level of hierarchy	Notes	June 30, 2020	March 31, 2020	June 30, 2020	March 31, 2020
Measured at amortised cost
Trade receivables
Cash and cash equivalents		ದ	1,049.75	891.07	1,049.75	891.07
Bank balances other than above		ದ	322.65	116.44	322.65	116.44
Loans		ದ	88.87	9.03	88.87	9.03
Other financial assets		a,b	58.07	69.04	58.07	69.04
		a,b	162.82	186.16	162.82	186.16
Measured at fair value through profit and loss
Investments in mutual funds	$\mathbf{\mathsf{C}}$
Derivative instruments	c		427.66	198.50	427.66	198.50
			p	0.08	Î	0.08
Measured at fair value through other comprehensive income
Investments in unquoted equity instruments		ರ	4.16	4.16	4.16	4.16

Rica.

$\mathcal{A}$

Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

			Carrying value as at		Fair value as at
Financial liabilities	Level of hierarchy	Notes	June 30, 2020	March 31, 2020	June 30, 2020
Measured at amortised cost						March 31, 2020
Other financial liabilities Trade payables Borrowings		a,c a, c a	4,174.64 877.26 881.09	3,267.07 1,111.69 1,076.78	4,174.64 877.26 881.09	3,267.07 1,111.69
Measured at fair value through profit and loss Derivative instruments	$\mathbf{\Omega}$	ರ	9.74	2.58	9.74	2.58 1,076.78
Measured at fair value through other comprehensive income Derivative instruments	$\mathbf{\mathcal{L}}$	ರ	35.60	68.04	35.60	68.04
The following methods / assumptions were used to estimate the fair values;
(a) Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respective carrying amount due to the short term maturities of these
(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 (b) Fair valuation of non-current financial assets has been disclosed to be the same as carrying value as there is no significant difference between carrying value and fair value.
(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 three			months period ended June 30, 2020 and year ended March 31, 2020
Quoted prices in the active market: This level of hierarchy includes financial Level 1: Level 2:				assets that are measured by reference to quoted prices in the active market.
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 and open ended mutual funds.

Puis vous Le

$\lambda$

Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

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 is determined at the amount that would be received to sell an asset in an orderly transaction between market participants. The following methods

(i) Investments in mutual funds: Fair value is determined by reference to quotes from the institutions.

interest rates respectively. These financial exposures are managed in accordance with the Group's risk management policies and procedures. Fair value of derivative financial instruments are (ii) Derivative contracts: The Group has entered into various foreign currency contracts rate swaps contracts to manage its exposure to fluctuations in foreign exchange rates and determined using valuation techniques based on information derived from observable market data, i.e., mark to market values determined by the authorized dealers, banks and forward

(iii) Unquoted equity investments: Fair value is determined based on the recoverable value as per agreement with the investee

Reconciliation of Level 3 fair value measurements

Unlisted equity instruments 4.16 4.05 $0.11$ 4.16 Purchases of investment As at March 31, 2019 As at March 31, 2020 As at June 30, 2020 Additions/deletions

Sensitivity of the fair value measurement to changes in unobservable inputs for financial instruments in Level 3 level of hierarchy is insignificant.

$\mathbb{Z}^5$

Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

12 RELATED PARTY TRANSACTIONS

12.1 Description of related parties under Ind AS-24 " Related party disclosures "

Ultimate holding ABR Family Trust

Holding Company KAMA Holdings Limited

Fellow subsidiaries # KAMA Realty (Delhi) Limited Shri Educare Limited

Post employment benefit plans trust SRF Limited Officers Provident Fund Trust SRF Employees Gratuity Trust SRF Officers Gratuity Trust

Key management personnel (KMP) Arun Bharat Ram Ashish Bharat Ram Kartik Bharat Ram Tejpreet S Chopra Lakshman Lakshminarayan Vellayan Subbiah Meenakshi Gopinath Pramod Gopaldas Gujarathi Bharti Gupta Ramola Yash Gupta * Puneet Yadu Dalmia *

Enterprises over which KMP have significant influence # SRF Foundation Karm Farms LLP Srishti Westend Greens Farms LLP SRF Welfare Trust

* from April 1, 2019 # Only with whom the Company had transactions during the period

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X

Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

12.2 Transactions with related parties

	Three months ended June 30, 2020	Three months ended June 30, 2019
Purchase of property, plant and equipment and intangible assets from
Holding company
		0.15
		0.15
Sale of property, plant and equipment and intangible assets to
Holding company
		0.20
		0.20
Lease payments / rent paid
Fellow subsidiaries
Key management personnel	1.65	1.68
Enterprises over which KMP have significant influence	0.07	0.07
	0.07 1.79	0.07
Reimbursement of expenses from		1.82
Holding company	$\mathcal{N}$	Λ
Fellow subsidiaries	0.01	0.01
	0.01	0.01
$^{\wedge}$ Absolute amount: Rs, 2,636 (Previous period : 3,451)
Deposits received back from
Fellow subsidiaries
Enterprises over which KMP have significant influence		0.05
		0.04 0.09
Donations to
Enterprises over which KMP have significant influence	1.00
	1.00
Contribution to post employment benefit plans Post employment benefit plans trust
	9.49	12.47
	9.49	12.47
Employee benefit obligations transferred to Holding Company
		0.03
Employee benefit obligations transferred from		0.03
Holding Company
		0.09
		0.09

Prairbale

Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

12.3 Outstanding balances *

	As at June 30, 2020	As at March 31, 2020
Commission payable
Key management personnel	2.38	10.22
Payable	2.38	10.22
Post employment benefit plans trust	10.69	14.37
	10.69	14.37
Receivable
Fellow subsidiaries	0.01 0.01
Security deposits outstanding Fellow subsidiaries
Key management personnel	3.27	3.27
Enterprises over which KMP have significant influence	0.13	0.13
	0.14	0.14
	3.54	3.54

* Also refer note 14 with regard to lease liabilities under Ind AS -116

12.4 Key management personnel compensation

	Three months ended June 30, 2020	Three months ended June 30, 2019
Short-term benefits Post-employment benefits	5.27	4.50
Other long-term benefits	0.32	0.44
	0.15	1.15.
		6.09

Rac et

Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

13 Non-current assets held for sale and discontinued operations

• $A$ . Engineering Plastics Business
• $(a)$ Description

On May 11, 2019, the Company entered into a business transfer agreement for sale of its Engineering Plastics Business, which has been divested with effect from August 1, 2019. The business was reported under "Others segment" in accordance with the requirements of Ind AS 108 - "Operating Segments" in the consolidated financial statements. The relevant financial information of the said business has been disclosed under discontinued operations in terms of Ind AS 105- "Non-current assets held for sale and discontinued operations" as below.

Financial performance $(b)$

Sl.no.		Particulars	Three months ended June 30, 2020	Three months ended June 30, 2019
Ţ	(a)	Sale of Products
	(b)	Other operating revenues		56.59
	(c)	Revenue from operations ${I(a)+I(b)}$		0.18
	(d)	Other income		56.77
	(e)	Total income ${I(c)+I(d)}$
	(f)	Total expenses		56.77
	(g)	Profit before tax for the period from discontinued operations ${I(e) - I(f)}$		50.48
	(h)	Tax expense related to discontinued operations	$\equiv$	6.29
П	(i)	Net profit after tax for the period from discontinued operations ${I(g)-I(h)}$		2.20
				4.09
(c)		Revenue from major products	Three months ended June 30, 2020	Three months ended June 30, 2019

Nylon/ PBT/ PC compounding chips

Technical Textiles Business of SRF Industries (Thailand) Limited $\mathbb B.$

$(a)$ Description

SRF Industries (Thailand) Limited closed its Technical Textiles Business operations located at Rayong, Thailand w.e.f. October 21, 2019. The business was reported as part of Technical Textiles Business as per requirements of Ind AS 108 - "Operating Segments" in the consolidated financial statements. The financial information of the said business has been classified as Discontinued Operations as per requirements of Ind AS 105 - "Non-current assets held for sale and discontinued operations". The particulars of said discontinued operations are as under:

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56.59

Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

$(b)$ Financial performance

Sl.no.		Particulars	Three months ended June 30, 2020	Three months ended June 30, 2019
П	(a) (b) (c) (d) (e) (f) (h) (i) (i)	Sale of Products Other operating revenues Total revenue from operations ${I(a)+I(b)}$ Other income Total income ${I(c)+I(d)}$ Total expenses excluding point no.(g) Profit / (loss) before tax from discontinued operations {I(e)-I(l)} Tax expense / (gain) related to discontinued operations Net profit / (loss) after tax from discontinued operations {1(h)-I(i)}	富 $\equiv$ 4.49 4.49 4.24 0.25 0.03 0.22	65.13 0.02 65.15 0.05 65.20 61.57 3,63 (6.16) 9.79
(c) (d)		Revenue from major products Nylon tyre cord fabric/ Polyester tyre cord fabric / Belting fabric Assets classified as held for sale	As at	65.13
		Property plant and equipment	June 30, 2020	As at March 31, 2020

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Gurugiain $P$ G

11.84

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Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

$14\,$ Leases

The Group leases various types of assets including land, buildings and Plant & Machinery. Information about leases for which the Group is a lessee is

Right-of-use assets

Particulars
	Land	Buildings	Plant and equipment	Total
Balances as at April 1, 2019 $\land$	141.57	43.96
Additions/adjustments	13.89	1.02	21.67	207.20
Disposals/adjustments	(6.75)		28.96	43.87
Balances as at March 31, 2020	148.71	44.98		(6.75)
Additions/adjustments			50.63	244.32
Disposals/adjustments
Balances as at June 30, 2020	148.71
		44.98	50.63	244.32
Accumulated depreciation
Balances as at April 1, 2019
Depreciation expenses		×
For the period ended June 30, 2019	0.37
For the period July 01, 2019 to March 31, 2020		1.66	1.75	3.78
Disposals/adjustments	1.17	5.10	6.69	12.96
Balances as at March 31, 2020
Depreciation expenses	1.54	6.76	8.44	16.74
For the period ended June 30, 2020	0.42
Disposals/adjustments		1.78	2.23	4.43
Balances as at June 30, 2020	۰. 1.96
		8.54	10.67	21.17
Net block
Balances as at March 31, 2020
	147.17	38.22	42.19	227.58
Balances as at June 30, 2020
	146,75	36.44	39.96	223.15

^ Including reclassification amounting to Rs. 136.39 Crores from non-current / current assets to right-of-use assets for prepaid lease rentals.

Lease liabilities *
Current	As at June 30, 2020	As at March 31, 2020
Non-current	14.97	13.71
	70.77	73.98
* Includes liabilities pertaining to related parties as follows:
Fellow subsidiaries
Key management personnel (KMP)	32.99	33.98
Enterprises over which KMP have significant influence	0.06	0.12
	0.05	0.11
Amounts recognised in Statement of Profit and Loss	Three months ended Inna 20.202	Three months ended

	June 30, 2020	June 30, 2019
Interest on lease liabilities
Depreciation expense	- 69
Expenses relating to short-term leases and leases of low-value assets	4.43	3.78
	2.81

Proces

Notes to the Interim Condensed consolidated financial statements for the three months period ended June 30, 2020 (All amounts in Rs. Crores, unless otherwise stated)

	Three months ended June 30, 2020	Three months ended June 30, 2019
Amounts recognised in Cash Flow Statement Total cash outflow for leases	3.65	3.67

As per Government directives, the Company had suspended operations for some of its facilities w.e.f. March 25, 2020 in the wake of the COVID-19 $15$ pandemic. Operations were resumed in a phased manner, taking cognizance of the Governments' advisories around resuming manufacturing activities and after obtaining necessary permissions. Disruption in operations as a result of the aforesaid, has impacted business performance during the three months period ended June 30, 2020.

Based on the current estimates, the Company believes that carrying amount of its assets will be recovered and COVID-19 is not likely to have any significant impact on its liquidity or ability to service its debt or other obligations. The Company would closely monitor such developments in future economic conditions and consider their impact on the financial statemnets / information of the relevant periods.

The Board at its meeting held on July 30, 2020 had approved interim dividend for 2020-21 of Rs. 5 per fully paid up equity share of Rs. 10 each 16 absorbing an aggregate amount of Rs. 28.74 crores. The same has been paid subsequently.

As per our report of even date attached

For BSR & Co. LLP. Chartered Accountants ICAI Firm registration no: 101248 W/W 400022

Partner

Membership No: 090075 Place : Delhi Date: October 12, 2020

$86$

Kaushal Kishore

For and on behalf of the Board of Directors

Ashish Bharat Ram Managing Director DIN - 00671567 Place: Gurugram

Rahul Jain President & CFO Place : Gurugram

Kartik Bharat Ram Deputy Managing Director DIN - 00008557 Place: Delhi

Rajat Lakhanpal Vice President (Corporate Compliance and company Secretary)

Place: Gurugram

Pearivotale

Extract of Resolution passed by the QIP Committee of SRF Limited at its meeting held on 12.10.2020 through Video Conferencing

Approval of the Interim Condensed Consolidated Financial Statements

RESOLVED THAT the interim condensed consolidated financial statements for the three months ended June 30, 2020, of the Company and are hereby considered and approved, reflecting true and fair position of the Company's financial position."

"RESOVED FURTHER THAT Mr. Ashish Bharat Ram, Managing Director, Mr. Kartik Bharat Ram, Deputy Managing Director, Mr. Rahul Jain, President & CFO and Mr. Rajat Lakhanpal, Vice President (Corporate Compliance) & Company Secretary be and are hereby authorized to sign the Interim Condensed Consolidated Financial Statements for and on behalf of this committee, and to present the same to the auditors for their signatures thereon."

"RESOLVED FURTHER THAT the Interim Condensed Consolidated Financial Statements and the limited review report of the statutory auditors thereon be filed with the stock exchanges and uploaded on the website of the Company."

"RESOLVED FURTHER THAT Mr. Ashish Bharat Ram, Managing Director, Mr. Kartik Bharat Ram, Deputy Managing Director, Mr. Rahul Jain, President & CFO and Mr. Rajat Lakhanpal, Vice President (Corporate Compliance) & Company Secretary of the Company be and are hereby severally authorised to take all steps and to do all such acts, deeds, and things as may be required and to take all actions, desirable or expedient, for the purpose of giving effect to this resolution.

"RESOLVED FURTHER THAT certified copies of this resolution be provided to those concerned with the signature of a Director or Company Secretary as required."

CERTIFIED TO BE TRUE COPY FOR SRF LIMITED RAJAT LAKHANPAL VP (CORPORATE COMPLIANCE) & COMPANY SECRETARY MEMBERSHIP NO. ACS-12725 (ADDRESS-32-C MIG FLATS, POCKET-C, PHASE-III, ASHOK VIHAR, NEW DELHI- 110052)