Vous êtes sur la page 1sur 32

MANAGERIAL

ACCOUNTING-1
Assignment-1

Abstract
To read and analyze companys (SRF Ltd.) annual reports and attempt the given
problems to seek solution

To: Himanshu
Mr. ParagPatel
Rijwani

himanshupatel_15@nirmauni.ac.in
Section D, Roll No - 151419

What is the companys business? 2. What are its main products


and services? Name some of the companys brands, if any.
SRF Ltd. is a multi-business entity. It is engaged in the
manufacture of chemical based intermediates. From the beginning the
business was diversified in the different segment such as Technical
Textiles, Chemicals, Packaging Films and Engineering Plastics.
SRF is market leaders in India in some of the business as well as it has
also expanded its business over the globe.
Here is overview of its business.
Technical Textiles
SRF's product basket for technical textiles contains nylon tyre,
cord fabrics, polyester tyre cord fabrics, belting fabrics, coated
fabrics, laminated fabrics, fishnet twines and industrial yarns.
It has its own R & D center located in Manali. Apart from India
manufacturing plants are also located in Thailand and South
Africa.

Chemicals
SRFs Chemicals Business caters to diverse applications
across industries. Starting with the refrigerant production facility
in Bhiwadi near New Delhi in 1989, SRF has grown to become a
highly backward integrated producer of refrigerants, chlorinated
solvents and fluorospecialities.
As a proud winner of the 2012 Deming Prize, the Chemicals
Business of SRF Ltd. caters to the exacting quality requirements
of the Automobile, Refrigerator, Air-conditioner, Laundry,
Pharmaceutical and Agrochemical industries amongst others.
Packaging Films
Packaging Films Business has emerged as one of the most
preferred Packaging arena. Engaged in manufacturing of Biaxially Oriented Poly-Ethylene Terephthalate
(BOPET)
Films
commonly
known
as
Polyester
(PET)
Films.
During a span of ten years, Packaging Films Business has crafted
a significant presence in EU, Americas, Middle East, ANZ, Russia
& CIS, Africa, West Asia & South Asian regions and continues to
expand its list of highly satisfied clientele across the world.

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

Who are likely to be the companys major suppliers?


Since SRF are Multi-business entity, here is the list of most likely major
suppliers.

In the Technical Textile Business, the common raw material required is


mostly Cotton, Jute, Coir, Silk etc. For that IndarsenShamlal (p) Ltd., Excel
Composites Pvt Ltd., NAT Fiber etc. are likely to be the major suppliers.
For its Chemical business Bhoruka Gases Ltd., Ekasila Chemicals Ltd.,
TATA Chemicals, etc. could be the major suppliers to the SRF. Though SRF has
collaborated with Arkema(Previously known as Atofina) for its raw material
supply.

For its Plastics business and Packaging Films Businessthe producers of


raw Plastic manufactures are likely to be the major suppliers of SRF Ltd.

Who are likely to be the companys major customers? Does the


company export its products? To which countries?

SRF Ltd is in major business of production of Technical Textile,


Packaging Films, Chemicals mostly used for the refrigeration and Engineering
Plastics. The major customers for the company could be all the business that
are into Refrigerators or other Cooling tools manufacturing business, for its
Plastic business serving markets as varied as Automobiles, Electrical &
Electronics, Telecom, Railways, Consumer etc.
SRF ltd has also expand its serving market beyond India. EU, Americas,
Middle East, Russia, Africa, West & Southern Asia are the areas where it
serves.

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

Content page of SRF ltd. Annual Report.


Contents
Chairmans Message
Company Information
Notice
Boards Report
Management Discussion & Analysis
Corporate Governance
Standalone Financial Statements
Consolidated Financial Statements

:
:
:
NFS

NFS
NFS
NFS
:

NFS
:
:

FS
FS

NFS

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


the items to be discussed?

The 44th Annual General Meeting of SRF Limited will be held on Thursday,
the 6 August 2015 at 3.30 p.m. at the LaxmipatSinghania Auditorium, PHD
House, 4/2 Siri Institutional Area, August Kranti Marg, New Delhi.
The following items were to be discussed in the Annual General Meeting.
Ordinary Business
To receive, consider and adopt the standalone and consolidated
audited financial statements of the Company for the financial year
ended 31 March 2015, the Reports of the Auditors and Board of
Directors thereon.
To appoint a Director in place of Mr.Arun Bharat Ram (DIN
00694766), who retires by rotation and being eligible, offers himself
for re-election.
To ratify appointment of auditors of the Company as approved by
the members at the Forty Third Annual General Meeting.
Special Business
Appointment of DrMeenakshiGopinathas a Director, liable to retire
by rotation.
DrMeenakshiGopinath ,who was appointed as an additional Director
of the Company with effect from 28 October 2014 be and is hereby
appointed as aDirector of the Company liable to retire by rotation.
Appointment and
Director of CSR.

Remuneration

of

DrMeenakshiGopinath)as

Functions
DrMeenakshiGopinath shall be designated as Director(CSR). She
shall
be
responsible
for
planning,
guiding
andensuring
implementation of CSR projects of the Company inaccordance with
the CSR Policy approved by the Board andsuch other responsibilities

as may be entrusted to her by theChairman and/or the Board, from


time to time.

Fee
She will be entitled to consolidated fees of ` 1 lakh permonth
(subject to deduction of applicable taxes) plus servicetax. She will
also be entitled to a Company maintained car.
Sitting Fees
DrMeenakshiGopinath would be entitled to sitting feesfor attending
the Board meetings and/or meetings ofother Committees on which
she is nominated except theCorporate Social Responsibility
Committee.
Termination
The services of DrMeenakshiGopinath as Director (CSR) may be
terminated by either party giving to the other three calendar
months notice in writing. RESOLVED FURTHER THAT subject to the
overalllimit of remuneration payable to all the Directors (other than
Executive Directors) taken together, the aforesaid remuneration
payable to DrMeenakshiGopinath shall be within an overall ceiling of
1% of the net profits of the Company computed in the manner laid
down in Section 197 of the Companies Act, 2013.
To consider and if thought fit, to pass with or withoutmodification(s),
the following resolution as an OrdinaryResolution:
Re-appointment of Mr Ashish Bharat Ram (DIN 00671567) as Managing
Director:
With tenure of Five years with effect from 23 May 2015.
Functions
Subject to the direction, control and superintendence ofthe Board
of Directors, Mr. Ashish Bharat Ram shall havethe overall
responsibility for looking after the day to daymanagement of the
Company.
Remuneration

Subject to the overall limit on remuneration payable to allthe


managerial personnel taken together, the remunerationpayable to
Mr Ashish Bharat Ram shall comprise salary, perquisites and
commission, as may be decided bythe Board/Nomination and
Remuneration Committeein accordance with the Nomination,
Appointment andRemuneration Policy within an overall ceiling of
5% of the netprofits of the Company, computed in the manner laid
downin Section 198 of the Companies Act, 2013.
Remuneration for a part of the YearRemuneration for a part of the year shall
be computed onpro-rata basis.

Minimum Remuneration
In the event of absence or inadequacy of profits in anyfinancial
year, the remuneration payable to Mr. Ashish BharatRam shall be
decided by the Nomination and RemunerationCommittee.
Termination
The appointment of Mr. Ashish Bharat Ram as ManagingDirector
may be terminated by either party giving to the otherthree
calendar months notice in writing.
compensation in accordance with the provisions of theCompanies
Act, 2013 or any statutory amendment or reenactment

To
consider
and
if
withoutmodification(s),
SpecialResolution:

thought
fit,
to
pass
with
the
following
resolution
as

or
a

Re-appointment of Mr.RavichandraKambhampatycompanies Act,


2013and the CompaniesForThree years with effect from 1 October
2015.
Minimum Remuneration
In the event of absence or inadequacy of profits in anyfinancial year,
the remuneration payable to MrRavichandraKambhampaty shall be
6

decided by the Nomination andRemuneration Committee subject to


the provisions of theCompanies Act, 2013 and such approval, if any,
as may berequired.
Termination
The appointment of MrRavichandraKambhampaty as Director(Safety
& Environment) may be terminated by either partygiving to the
other three calendar months notice in writing.

Identify the companys reporting entities.

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

Foreign Subsidiaries
SRF Fluor Private Limited^ Mauritius
SRF Global BV Netherlands
SRF Overseas Limited
Government Body
Share Holders

How is the information in the notes to the financial statements


useful? Give five examples of how the notes explain the items
in the financial statement.
1. The information consists in notes may or may not be related to
financial reports of the company. But if there is any, it is useful in
preparing financial reports.

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

The financial statements of these foreign subsidiaries have been


converted into Indian Rupees on the basis of following exchangerates:
(I) 1 AED = ` 17.008
(ii) 1 USD = ` 62.47
(iii) 1 Baht = ` 1.92
(iv) 1 Rand = ` 5.118
Above information is also useful in making Financial Statements of its
Foreign Subsidiaries. Exchange Rate of Currency give the clarity at what rate
the currencies were recorded.

2. The following information is required for the amount spent towards


CSR.
Average Net Profit of SRF Ltd for last three financial years.
2013-14:` 272.22 crores
2012-13:` 329.62 crores
2011-12:` 554.74 crores
Average Net Profit:385.53 crores
2% of Avg. Net Profit:771 lakh
Prescribed CSR Expenditure - ` 771 lakh
Details of CSR Spent during the Financial Year
a. Total Amount to be spent for the financial year - ` 771 lakh
b. Amount Unspent - ` 329.05 lakh
c. Manner in which the amount spent during the financial year:
3. DEPRECIATION AND AMORTISATION
Depreciable amount for assets is the cost of anasset, or other amount
substituted for cost, less itsestimated residual value.
Depreciation on tangible fixed assets has beenprovided on the straight
line method on the basisof useful life of assets determined by the
Company.Manufacturerswarranties and maintenance support, etc. and are
asUnder:
Roads - 4050 years
Buildings - 3060 years
Plant & Machinery - 230 years
Furniture & Fixtures - 15 years
Office Equipment - 320 years
Vehicles - 4 years
8

Intangible assets are amortized over their estimateduseful life


considering the terms of the businesspurchase agreements on straight line
method as
follows:Goodwill - 10 years
Trademarks / Brand - 1030 years
Technical Knowhow - 1030 years
Software - 3 years
Other intangibles - 2.510 years

Identify ANY THREE matters


policies/estimates and write
balances.

covered by the accounting


their current year ending

Fixed assets such as Plant & Machinery, Intangible assets such as


Goodwill was covered under the accounting estimate.
Current Year 2014-15 Ending Balance of
o Life of Buildings is estimated to be 30-60 years;
Closing Balance as on 31st March, 2015 was 58479.85 Lakh INR
o Life of Plant and Machinery is expected to be 2-30 years;
Closing Balance as on 31st march, 2015 was 388450.23 Lakh INR
o Life of Vehicles was estimated at 4 years
Closing Balance as on 31t March, 2015 was 2784.02 Lakh INR

Who is/are responsible for the information in the financial


statements? Write names(s).

Members of the Board of Directors are responsible for the information


in the financial statements.
o
o
o
o
o
o

Arun Bharat Ram Chairman


Ashish Bharat Ram Managing Director
Kartik Bharat Ram Deputy Managing Director
Vinayak Chatterjee Director
Rajendra Prasad - President & Chief Financial Officer
Anoop K Joshi - President & Company Secretary

Think of information that you think would be useful but not


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

Who are the companys auditors?


Deloitte Haskins & Sells Chartered Accountants are the companys
auditors.

To whom is the auditors report addressed? Why?


The auditors report is addressed to the members of SRF Limited.

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

o
o
o
o
o

The main items on which the auditors report


Report on the Standalone Financial Statements
Managements Responsibility for the Standalone
Financial Statements
Report on Other Legal and Regulatory
Requirements
Auditors Responsibility
Emphasis of Matter

Here are three items that significantly affect the financial statements.
Following are the instances of delay in transferringamounts, required to be
transferred, to the InvestorEducation and Protection Fund by the Company
Refer Note 31 (b) to the financial statements:
Nature
of Amount (INR in Date by which Date of Deposit
Amounts
Lakhs)
amount
should
have
been
credited to fund
Matured
0.15
20-12-2012
23-06-2014
Unclaimed Fixed
Deposits
Interest
on 0.02
20-12-2012
23-06-2014
Above

10

How much was the auditors remuneration? Give the detailed


breakup of the same.
The total auditors remuneration paid was 204.92 Lakhs INR.
(Including fees paid to auditors of subsidiary companies)
Detailed breakup of the auditors remuneration
Particulars
Amount (INR in Lakhs)
Audit Fees
103.00
For limited review of unaudited 76.07
financial results
For
corporate
governance, 15.85
Consolidated financial statements
and other certifications
For tax audit
10.0
Total
204.92

Highlight the concerns raised by the auditors in their report.


Give details of such items.
Details of dues of Income-tax, Wealth Tax, Sales Tax, Value Added Tax,
Service Tax, Excise Duty, Customs Duty and Cesswhichhave not been
deposited as on 31 March 2015 on account of disputes by the aforesaid
entities are given below:

11

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

The Statement of Profit and Loss

12

What are the companys major items of revenues? How these


items have changed in percentage terms as compared to the
previous financial year?

Major Items of Revenue

Sales of Product
Export incentives
o Dividend/Profit on
investment
o Exchange
currency
fluctuation
o Interest Income

Current
Year
Income (in
lakh INR)
357020.8
0
1624.57
4735.64

Previous Year
Income
( in lakh INR)

% change on
Previous Year

340210.26

4.95%

126.70
2471.42

1182.22%
91.62%

State the revenue recognition policy of the company for sales


revenue.

REVENUE RECOGNITION
Sale of goods is recognized, net of returns and tradediscounts on the
transfer of significant risks and rewardsof ownership to the buyer which
generally coincideswith the dispatch of goods to customers. Gross salesare
inclusive of excise duty and net of value added tax /sales tax.
Other income includes interest income which isaccounted on accrual
basis, dividend income isaccounted for when the right to receive is
established.

Identify the sources of companys gains and other nonoperating income. What is the proportion of these items in
relation to the total income and Net Profit after Tax?
Source of companys gain are
o Sales of Goods
o Scrap sales
o Export incentives
Non-operating income source
o Dividend on current investments
o Profit on sale of current investments
o Profit on sale of investment in subsidiaries
o Dividend on non-current investments
o Provision / Liabilities no longer required written back
o Provision for long term investments no longer required
o Profit on sale of fixed assets

13

o Exchange currency fluctuation


o Interest income

Locate any references to accounting principles related to


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

When does the company recognize revenue from services?


Why?
The company recognized revenue at the time of realization. Sale of
goods is recognized, net of returns and trade Discounts. Because of the
accounting principle of Realization.

When does the company recognize dividend income? Why?


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

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

Identify the companys losses and other non-operating


expenses. What is the proportion of these items in relation to
the total expenses and Net Profit after Tax?
Companys losses and other non-operating expenses are Loss on sale
of Fixed assets, Bad debts written off, Corporate social Responsibility,
Professional and Legal Expenses, Directors sitting Fees, Provision for
Investments, Auditors remuneration etc.
Total of abovementioned losses &expenses are 73228.03 Lakh INR
while Net Profit after tax was 30773.05 Lakh INR.
Losses & expenses other than operating expense proportion to the Net
Profit after tax is (73228.03*100/30773.05) 238.16% that means it is
138.16% more.

14

What was the total amount spent on employees? What is the


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

How much did the company spend on advertising, sales


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

What is the absolute amount and proportion of finance costs to


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

Identify the top three weighing expense-heads in relation to


the sales revenues. What are the accounting policies
pertaining to these three heads of expenses?
Three heads are Cost of materials consumed, Raw Material
Consumption, Employee benefits expenses.

EMPLOYEE BENEFITS
Companys contributions paid / payable during theyear to provident
fund administered through RegionalProvident Fund Commissioner,
Superannuation Fundand Employees State Insurance Corporation
arerecognized in the Statement of Profit and Loss.
Provision for gratuity, compensated absences, providentfund for
certain category of employees administeredthrough a recognized provident
fund trust and long termretention pay are determined on an actuarial basis
at theend of the year and charged to Statement of Profit and Loss for each
year.

INVENTORIES
15

Inventories are valued at cost or net realizable value,whichever is


lower. The basis of determining the cost forvarious categories of inventory
are as follows:
Stores, spares and rawmaterials- Weighted averagerateStock in
trade,Stock in process andfinished goods- Direct cost plusappropriate shareof
overheads
andexcise
duty,
whereverApplicableBy
products
At
estimatedrealizable value.

What is the percentage of depreciation/amortization expense


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

List three assets having highest proportion in the total assets


of the company. Write their percentage weight in the total
assets.
Three assets are Fixed Assets, Inventories, and Trade Receivable.
Particulars
Total assets
% in Total Asset
Fixed
assets
- 486790.06
62.28%
303179.17
Inventories - 63758.78
486790.06
13.10%
Trade
receivable
- 486790.06
09.83%
47854.84

16

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

34. What is the amount of fixed assets sold/discarded during


the year? What is its proportion in the total assets? Is this
proportion significant? Why?
2 002.09 lakh INR amount of fixed assets were sold during the year. Its
proportion to the fixed assets (303179.17 lakh INR) is 0.67%.This
proportion is not much significant.

What is amount of capital work in progress finished and


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

What is the proportion of Intangible assets in the total assets


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

What is the proportion of long term investments in the total


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

List three most significant investment venues. What is the


book value and market value of these investments?
ICICIprudential saving fund regular plan growth, Equity share of SRF
Global BV, SBI Debt fund series.
Particulars
Book value (in Lakh Market value ( in Lakh
INR)
INR)
ICICI prudential saving 8000
9155.48
fund
SBI Debt fund series
1000
Equity share of SRF 7959.51
global BV

17

What is the proportion of Investments in Subsidiary Companies


in the total investments? Is there any change in the amount of
Investments in Subsidiary Companies in the current year as
compared to the previous year?

Total investments in Subsidiary Companies in total investments


(Current + Non-current investment) is (8364.51*100/17786.66)
47.03%.
Last year total investments in subsidiary Companies was
9318.72 lakh INR compare to this year is 8364.51 lakh INR. So here
there is decrease in the investments by 954.21 lakh INR.
What is the proportion of current assets in the total assets?
What is the change in this proportion as compared to the
previous year?
Total current assets as on 31st March 2015 was 139852.23 lakh INR
compare to Total assets of INR 486790.06 lakh.
So, the change in proportion of current
Particulars
Year ending on 31st Year ending on Change (A-B)
March 2015(Amount 31st March 2014 (
in lakh INR) (A)
Amount in lakh
INR) (B)
Current
139852.23
140922.08
assets
Total assets 486790.06
446519.94
%
28.73%
31.56%
-2.83%

Change in the proportion of current assets in the total assets is -2.83%


compared to previous year.
What is the proportion of cash in the total assets? What is the
change in this proportion as compared to the previous year? Is
there any cash in transit? How much?
Particulars
Year ending on Year ending on Change (A-B)
31st March 2015 31st March 2014
(Amount in lakh (B)
INR) (A)
Cash
6515.79
7463.92
Total assets
486790.06
446519.94
%
1.34%
1.67%
-0.33%

The proportion change in cash to the total assets compared to previous year,
it is lower by 0.33% current year.
What percentage of the companys receivables is due for more
than six months? What is the change in this proportion as
compared to the previous year?
Particulars
As on 31st As on 31st
March,2015
March,2014

18

Receivables
61065.42
69149.11
> 6 Months
Total Assets
595396.23
551855.45
Prop.
10.26%
12.53%
Receivables
to
Total
Assets
Proportion of the companys receivables to the Total assets of the respective
years over the year has gone down by approx. 2.2%.
What is the proportion of Inventories in the total assets? What
is the change in this proportion as compared to the previous
year?
Particulars
As
on
31st As
on
31st Change (A-B)
March,2015 (A)
March,2014
(B)
Inventories (X)
63758.78
63116.13
Total Assets (Y)
486790.06
446519.94
% (X*100/Y)
13.10%
14.14%
-1.04

Proportion of Inventories in total assets over the year has not changed
significantly though there was decrease of 1% approx.
How does company measure its Inventories? Is there any
change in the inventory measurement as compared to the
previous year? If yes, give details.
Company measures Inventories at cost or net realizablevalue,
whichever is lower. The basis of determining the cost for various
categories of inventory are as follows:

What is the absolute amount and proportion in relation to


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

Particulars
19

Stores, spares and raw materials - Weighted average rate


Stock in trade, Stock in process and finished goods - Direct cost
plus
Appropriate share of overheads and excise duty, wherever
applicable By products - At estimated realizable value

As
31st

on As
on
March,2014

31st Change (A-B)

March,20
15 (A)
raw materials (X)
196206.2
2
Net sales revenues 357020.8
(Y)
0
% (X*100/Y)
54.96%

(B)
201683.79

-5477.57

340210.26

16810.54

59.28%

-4.32%

There is a decrease of 4.32% over the previous year in proportion in relation


to sales revenue of raw materials consumed during the year.

What is the amount of short term investments? What is the


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

The amount of short term investments is 9422.15 Lakh INR as on 31 st


March 2015
Current year amount of short term investments is 9422.15 Lakh INR
while it was 2648.02 LakhINR.So the percentage change of current
investments over the previous year is (9422.15*100/2608.02) 361.28%.
Increase in percentage is 261.28%.
Three venues of short term investments for the company
1. Trade investments Investments in equity instruments
2. INVESTMENTS IN MUTUAL FUNDS
3. Other Short term investments

What is the proportion of current liabilities in the total


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

Particulars
current liabilities
total liabilities
% (X*100/Y)

As
on
31st As
on
March,2015 (A)
March,2014
(B)
96538.19
115355.06
486790.06
446519.94
19.83%
25.83%

31st Change (A-B)

-6.00%

The proportion of current liabilities in the total liabilities of respective


years were almost same though there was a decrease of the proportion
compared to previous year about 6%.
20

List three most significant current liabilities? What is the


percentage change in these three current liabilities as
compared to the previous year?
Three most significant current liabilities are
Short-term borrowings
Trade payables
Other current liabilities

Percentage change in these current liabilities as compared to


previous year
Particulars
As on 31st March As on 31st March %
Change
2015
2014
compare
to
previous year
Short-term
23623.28
31990.40
26.16% decrease
borrowings
Trade payables
58144.58
78860.68
26.27% decrease
Other
current 56408.67
27147.72
107.78%
liabilities
increase
Overall (Total)
138176.53
137998.80
0.13% increase

What is the proportion of trade (accounts) payables in the total


liabilities? What is the change in this proportion as compared
to the previous year?
Particulars
As on 31st March As on 31st March Change (A-B)
2015 (A)
2014 (B)
trade (accounts) 42136.85
58266.30
payables (X)
total liabilities (Y) 486790.06
446519.94
% (X*100/Y)
08.66%
13.05%
-4.39%

As compare to previous year Proportion of trade payable to total liabilities


decreased by around 4.5%.
. What are the companys contingent liabilities?
Companys contingent liabilities areExcise duty, customs duty and service
taxSales Tax and entry tax Income TaxStamp Duty etc.

21

What is the proportion of long term liabilities in the total


liabilities? What is the change in this proportion as compared

to the previous year? List the three most significant source of


long term liability?
Particulars

As on 31st March As on 31st March Change (A-B)


2015 (A)
2014 (B)
term 109363.83
84457.86

long
liabilities (X)
total liabilities (Y) 486790.06
% (X*100/Y)
22.47%

446519.94
18.91%

3.56%

Proportion of Long term liabilities in the total liabilities increases by 03.56%


compared to previous year.
Three most significant source of the long term liabilities are
1. Redeemable Non-convertible Debenture
2. Rupee term loans
3. Foreign Currency term loans
What is the proportion of share capital in the total liability? Is
there any change in the amount of share capital as compared
to the previous year? What is the source of this change?
Particulars
As on 31st March As on 31st March Change (A-B)
2015 (A)
2014 (B)
share capital (X)
5843.56
5843.56
total liabilities (Y) 486790.06
446519.94
% (X*100/Y)
01.20%
01.30%
-0.10%

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


previous year.

22

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

What is the proportion of Reserves in the total liabilities? What


is the change in this proportion as compared to the previous
year?

As on 31st March As on 31st March Change (A-B)


2015 (A)
2014 (B)
Reserves in the 233948.17
210507.63
total
liabilities
(X)
total liabilities (Y) 486790.06
446519.94
% (X*100/Y)
48.06%
47.14%
0.92%
Particulars

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


liabilities.

23

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

Corporate Governance Report


Read carefully through this section and give details of three
most significant items mentioned therein

Remuneration of Directors

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

Stock Market Data


24

Corporate Social Responsibility Report


Read carefully through this section and give details of three
most significant items mentioned therein

Corporate Governance
Certificate of the auditors of your Company regarding complianceof the
conditions of corporate governance as stipulated inClause 49 of the Listing
Agreement with the stock exchanges isattached to the report as Annexure
IV.In compliance with the requirements of Clause 49(V), a certificatefrom
Managing Director and the President & Chief FinancialOfficer was placed
before the Board.All Board members and Corporate Leadership Team (CLT)
have
affirmed compliance with the Code of Conduct for Board andSenior
Management Personnel. A declaration to this effect dulysigned by the
Managing Director is enclosed as a part of the
Corporate Governance Report.Annual Report on CSR for the financial year ended 31
March, 2015
1) A brief outline of the Companys CSR Policy, including overview of projects
or programs proposed to be undertaken and areference to the web-link to
the CSR Policy and projects or programs.
25

As per the requirement of Section 135, Companies Act, 2013, the Company
had laid down a CSR Policy which has identifiedprojects as per the Schedule
VII of The Act in the following areas : Promotion of Education: Improving Quality of Education and Developing
School infrastructure of Govt. Schools;
Employment enhancing vocational skills : Focusing on imparting
appropriate skills as per the market and industry needs andproviding a
platform to the youth trained to be gainfully self-employed or linking them
with potential employers to increasetheir employability and livelihood;
Promoting gender equality and empowering women :Focusing on providing
special skill trainings and confidence building soas to make them self-reliant
and improve their employability and income;
Preventive Healthcare: Regular check-ups and diagnosis for prevalent
ailments in the community present in and around plantlocations of SRF;
Ensuring Environment Sustainability: Conversion of barren undulated lands
into cultivable lands, promoting alternativeplantation, building check dams,
rainwater harvesting and water conservation to prevent depletion of
underground andsurface water sources; and
Promoting Rural Sports: Coaching for sports such as Kho-Kho, Kabadi etc.
and to provide a platform where athletes cancompete at various level and
proceed to state and national level.
2) The Composition of the CSR Committee
DrMeenakshiGopinath, Chairperson
Mr.Kartik Bharat Ram, Deputy Managing Director
Mr. L Lakshman, Independent Director
3) Average Net Profit of SRF Ltd for last three financial years
2013-14 :` 272.22 crores
2012-13 :` 329.62 crores
2011-12 :` 554.74 crores
Average Net Profit :` 385.53 crores
2% of Avg. Net Profit :` 771 lakh
4) Prescribed CSR Expenditure - ` 771 lakh
5) Details of CSR Spent during the Financial Year
a. Total Amount to be spent for the financial year - ` 771 lakh
b. Amount Unspent - ` 329.05 lakh6) Reason for not spending the two
percent of the average net profit of the last three financial years or any part
thereofThe Company and SRF Foundation (the implementation agency) were
unable to fully incur the CSR expenditure due to the factthat this was the
first year of CSR implementation and this required considerable time in
26

identification and detailing of relevantprojects, conducting baseline surveys,


planning the implementation and mobilization of resources which led to the
shortfall.

27

28

Management Discussion and Analysis (MDA)


Read carefully through this section and give details of three
most significant items mentioned therein
SRF maintained its momentum of growth during 2014-15 in spite of a
global economy thatremained sluggish. The year saw the Company reporting
marginal increase in its revenue from3402.10 crores in 2013-14 to 3520.21
crores in 2014-15. The increase in revenue numbers
must be seen in the context of softening crude oil prices which resulted in
lower realizations for
most of SRF products.
BUSINESSES
As a multi-business entity SRF remains committed to its strategic focus
of continuous
improvement and achieving excellence in meeting the diverse requirements
of customers
across multiple segments, globally. The Company remains the market leader
in most of its
products and continues to enjoy significant global presence in some of its
businesses, with
operations in three countries namely India, Thailand and South Africa and
commercial interests
in more than 75 countries. It classifies its main businesses as Technical
Textiles Business (TTB),
Chemicals & Polymers Business (CPB) and Packaging Films Business (PFB).
Technical Textiles Business
Tyre Cord Fabrics
Belting Fabrics
Coated & Laminated Fabrics
Industrial Yarn
Chemicals & Polymers Business
Fluorochemicals
Refrigerants
Solvents
Specialty Chemicals

Engineering Plastics
Chemicals Technology Group

Packaging Films Business

29

Reference

30

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

THANK YOU

31