MIRA INFORM REPORT

 

 

Report Date :

08.07.2011

 

IDENTIFICATION DETAILS

 

Name :

SRF LIMITED

 

 

Registered Office :

C – 8, Safdarjung Development Area, New Delhi - 110016

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

09.01.1970

 

 

Com. Reg. No.:

005197

 

 

Capital Investment/ Paid-up Capital:

Rs.615.241 Millions

 

 

CIN No.:

[Company Identification No.]

L18101DL1970PLC005197

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELS33266C

 

 

PAN No.:

[Permanent Account No.]

AAACS0206P

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges

 

 

Line of Business :

Manufacturers and Marketers of synthetic filament yarn including industrial yarn/tyre cord, nylon tyre cord fabric/industrial yarn fabric, fishnet twine, engineering plastic, nylon moulding powder, leather auxiliaries, (organic chemicals) (dry weight), fluorocarbon refrigerant gases, hydrochloric acid (anhydrous), gypsum (by product), hydrochloric acid (by product), halon, chloromethanes and spectacle lenses of other materials (plastics) castings.

 

 

No. of Employees:

4000 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (64)

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 50000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well-established and reputed company having satisfactory track. Directors are well-known industrialists having good means of their own. Their trade relations are reported as fair. Financial position of the company is satisfactory. Business is active. The company's payments are usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – April 1, 2010

 

Country Name

Previous Rating

(31.12.2009)

Current Rating

(01.04.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

LOCATIONS

 

Registered Office :

C – 8, Safdarjung Development Area, New Delhi – 110016, India

 

Tel. No.:

91-11-26510428

 

Fax No.:

91-11-26857141

 

E-Mail :

srf.corp@srf.sprintrpg.ems.vsnl.net.in

ajoshi@srf.com

rlakhanpal@srf.com

 

Website :

http://www.srf.com

 

 

 

 

Corporate Office :

Block – C, Sector – 45, Gurgaon -122 003, Haryana, India

 

Tel. No.:

91-124-4354400

 

Fax No.:

91-124-4354500 

 

E-Mail :

webmaster@srf.com

 

 

 

 

TECHNICAL TEXTILES BUSINESS

 

 

 

 

 

Factory 1 :

Manali Industrial Area, Manali, Chennai – 600 068, Tamil Nadu, India

 

Tel. No.:

91-44-25946000

 

Fax No.:

91-44-25941159

 

 

 

 

Factory 2 :

Industrial Area, Malanpur, Dist. Bhind – 477 116, Madhya Pradesh, India

 

Tel. No.:

91-7539-283164

 

Fax No.:

91-7539-283427

 

 

 

 

Factory 3 :

Plot No K1, SIPCOT Industrial Area Complex, Gummidipoondi, Dist. Thiruvallur – 601 201, Tamil Nadu, India

 

Tel. No.:

91-44-27923212/27932322

 

Fax No.:

91-44-27922718/27922888

 

 

 

 

Factory 4 :

Viralimalai, District Pudukottai – 621 316, Tamil Nadu, India

 

Tel. No.:

91-4339-220808

 

Fax No.:

91-4339-220284

 

 

 

 

Factory 5 :

SRF Overseas Limited

P.O. Box 61101, Jebel Ali Free Zone, Dubai, UAE

 

Tel. No.:

+97-14-8836717

 

Fax No.:

+97-18-4480341

 

 

 

 

CHEMICALS AND POLYMERS BUSINESS

 

 

 

 

 

Factory 6 :

Village and PO - Jhiwana, Tehsil Tijara, Dist. Alwar – 301 018, Rajasthan, India

 

Tel. No.:

91-1493-220288/517838/517839

 

Fax No.:

91-1493-221125/517837

 

 

 

 

Factory 7 :

Manali Industrial Area, Manali, Chennai – 600 068, Tamil Nadu, India

 

 

 

 

Factory 8 :

Plot No 14C, Sector 9, IIE Pantnagar, Dist. Udham Singh Nagar, Uttarakhand, India

 

 

 

 

PACKAGING FILMS BUSINESS

 

 

 

 

 

Factory 9 :

Plot No 12, Rampura, Ramnagar Road, District Udham Singh Nagar, Kashipur – 244713, Uttaranchal, India

 

Tel. No.:

91-5947-275604

 

Fax No.:

91-5947-275606

 

 

 

 

Factory 10 :

Plot No. C – 1-8, C-21-30, Indore Special Economic Zone, District Dhar, Pitampur – 454775, Madhya Pradesh, India

 

Tel. No.:

91-7292-400526

 

Fax No.:

91-7292-401745

 

 

 

 

IT Business:

"Amar Sindur", 4th Floor, No. 43, Pantheon Road, Egmore, Chennai - 600 008, Tamilnadu, India

 

 

Divisional Offices:

International Division

C-8, Commercial Complex, Safdarjung Development Area, New Delhi 110 016

 

Industrial Synthetics Division

Manali Industrial Area, Chennai – 600 068, Tamilnadu

 

Industrial Fabrics Division:

Viralimalai, Podukottai District – 621 316, Tamilnadu - 621 316

 

polyester film business

C-8, Commercial Complex, Safdarjung Development Area, New Delhi – 110 016

 

PHARAMA CHEMICALS BUSINESS

3rd Floor, Sanskrit Bhawan, A – 10, Aruna Asaf Ali Marg, Qutub Institutional Area, New Delhi – 110 067.

 

 

DIRECTORS

 

As on 31.03.2010

 

Name :

Mr. Arun Bharat Ram

 

Designation :

Chairman

 

Date of Birth/Age :

67 Years

 

Qualification :

B.SC (Indl. Engineering)

 

Experience :

31 Years

 

 

 

 

Name :

Mr. Ashish Bharat Ram

 

Designation :

Managing Director

 

Date of Birth/Age :

39 Years

 

Qualification :

MBA

 

Experience :

13 Years

 

 

 

 

Name :

Mr. Kartikeya Bharat Ram

 

Designation :

Deputy Managing Director

 

Date of Birth/Age :

37 Years

 

Qualification :

MBA

 

Experience :

14 Years

 

 

 

 

Name :

Mr. S. P. Agarwala

 

Designation :

Director

 

 

 

 

Name :

Mr. K. Ravichandra

 

Designation :

Director (Safety and Environment)

 

 

 

 

Name :

Mr. V. R. Mehta

 

Designation :

Director

 

 

 

 

Name :

Mr. M. V. Subbiah

Designation :

Director

 

 

Name :

Mr. Satish K. Kaura

Designation :

Director

 

 

Name :

Mr. Vinayak Chatterjee

Designation :

Director

 

 

Name :

Mr. Subodh Bharagava

Designation :

Director

 

 

Name :

Dr. Omkar Goswami

Designation :

Director

 

 

Name :

Mr. Piyush G Mankad

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Anoop K. Joshi

Designation :

Company Secretary

Date of Birth/Age :

48 Years

Qualification :

FCA, FCS

Experience :

25 Years

 

 

Name :

Mr. N. Ramanathan

Designation :

President (TQM)

Date of Birth/Age :

55 years

Qualification :

B.E. (MECH), PGDBM

Experience :

32 years

Date of Appointment :

01.04.1989

 

 

Name :

Mr. W. M. De'Souza

Designation :

President and Chief Executive Officer (Industrial Synthetics Business)

 

 

Name :

Mr. S. Y. G. Narayanan

Designation :

Senior Vice President (Legal, Shares and Secretarial)

 

 

Name :

Mr. Sushil Ramola

Designation :

Senior Vice President and Chief Executive Officer (Information Technology Business)

Date of Birth/Age :

54 Years

Qualification :

B.Tech, PGDBM (IIMA)

Experience :

31 Years

 

 

Name :

Mr. Rajdeep Anand

Designation :

President and Chief Executive Officer (Project and R and D)

Date of Birth/Age :

56 Years

Qualification :

B.Tech (Hons)

Experience :

36 Years

 

 

Name :

Mr. Sushil Kapoor

Designation :

Chief Executive Officer (Technical Textiles Business)

Date of Birth/Age :

48 Years

Qualification :

B.Tech (Mech)

Experience :

36 Years

 

 

Name :

Mr. Roop Salotra

Designation :

President and Chief Executive Officer (CB and PFB)

Date of Birth/Age :

57 Years

Qualification :

B.E. (Mech)

Experience :

36 Years

 

 

Name :

Mr. Suresh Dutt Tripathi

Designation :

President (Corporate HR)

Date of Birth/Age :

47 Years

Qualification :

M.Sc, PGDSW

Experience :

25 Years

 

 

Name :

Mr. Rajendra Prasad

Designation :

President and CFO

Date of Birth/Age :

50 Years

Qualification :

CA, DISA, CISA (USA)

Experience :

26 Years

 

 

Name :

Mr. T. Sanyal

Designation :

Senior Vice President and Chief Executive Officer (Industrial Fabrics Business)

 

 

Name :

Mr. Ravi K. Sinha

Designation :

Chief Executive Officer and Group Head

Date of Birth/Age :

54 years

Qualification :

B.Sc. (Eng)., PGDMS

Experience :

34 years

Date of Appointment :

01.01.1977

 

 

Name :

Mr. Aseem Mehrotra

Designation :

Vice President

Date of Birth/Age :

48 Years

Qualification :

B.E.

Experience :

26 Years

 

 

Name :

Mr. Suresh Kannan

Designation :

Vice President

Date of Birth/Age :

40 Years

Qualification :

B. Tech

Experience :

19 Years

 

 

Name :

Mr. M Venkataraman

Designation :

Vice President

Date of Birth/Age :

46 Years

Qualification :

B.Tech

Experience :

24 Years

 

 

Name :

Mr. Ravindra Keshav Joshi

Designation :

Vice President

Date of Birth/Age :

55 Years

Qualification :

PGDBA-Marketing (XLRI)

Experience :

30 Years

 

 

Name :

Mr. Rajeev Marwah

Designation :

Vice President

Date of Birth/Age :

46 Years

Qualification :

B.E., MBA

Experience :

26 Years

 

 

Name :

Mr. V Sekar

Designation :

Vice President

Date of Birth/Age :

50 Years

Qualification :

B.Tech

Experience :

27 Years

 

 

Name :

Mr. R.N. Kaul

Designation :

Vice President

Date of Birth/Age :

50 Years

Qualification :

MBA

Experience :

28 Years

 

 

Name :

Mr. D P Bhattacharya

Designation :

Vice President

Date of Birth/Age :

43 Years

Qualification :

B.Tech

Experience :

20 Years

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(As on 31.03.2011)

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

59,000

0.10

Bodies Corporate

28,643,113

47.34

Sub Total

28,702,113

47.44

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

28,702,113

47.44

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

5,051,177

8.35

Financial Institutions / Banks

609,949

1.01

Insurance Companies

1,734,154

2.87

Foreign Institutional Investors

8,001,882

13.23

Sub Total

15,397,162

25.45

(2) Non-Institutions

 

 

Bodies Corporate

3,034,465

5.02

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 Million

11,301,360

18.68

Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million

1,626,270

2.69

Any Others (Specify)

442,210

0.73

Non Resident Indians

390,421

0.65

Clearing Members

46,951

0.08

Trusts

4,788

0.01

Overseas Corporate Bodies

50

-

Sub Total

16,404,305

27.11

Total Public shareholding (B)

31,801,467

52.56

Total (A)+(B)

60,503,580

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

60,503,580

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturers and Marketers of synthetic filament yarn including industrial yarn/tyre cord, nylon tyre cord fabric/industrial yarn fabric, fishnet twine, engineering plastic, nylon moulding powder, leather auxiliaries, (organic chemicals) (dry weight), fluorocarbon refrigerant gases, hydrochloric acid (anhydrous), gypsum (by product), hydrochloric acid (by product), halon, chloromethanes and spectacle lenses of other materials (plastics) castings.

 

 

Products :

Product Description

ITC Code

Tyre Cord Fabric

59.02

Polyster Films

39.20

Halogenated Derivatives of Hydrocarbons

29.03

 

PRODUCTION STATUS

 

As on 31.03.2009

 

Particulars

Unit

Installed Capacity

Actual Production

Synthetic Filament Yarn including Industrial Yarn/ Tyre Cord/ Twine

MT

54740

8027.54

Nylon Tyre Cord Fabric/ Industrial Yarn Fabric/ Twine

MT

56680

46194.33

Nylon compounding chips

MT

14500

1310.95

Fluorocarbon Refrigerant Gases

MT

25000

11798.85

HFC 134a

MT

3000

1343.16

Hydrofluoric Acid (Anhydrous)

MT

12000

137.38

Gypsum (By Product)

MT

44550

32087.11

Hydrochloric Acid (By Product)

MT

77220

57054.35

Chloromethane

MT

35000

18680.04

Packaging Films

MT

28150

29500.61

 

 

GENERAL INFORMATION

 

No. of Employees :

4000 (Approximately)

 

 

Bankers :

·         ICICI Bank Limited, New Delhi 

·         State Bank of India, New Delhi

·         State Bank of Patiala, New Delhi

·         The Hongkong and Shanghai Banking Corporation Limited, New Delhi

·         Citibank N.A., New Delhi

·         Punjab National Bank, New Delhi

·         Standard Chartered Bank

·         Yes Bank Limited

·         HDFC Bank

·         ABN Amro Bank N.V.

 

 

Facilities :

Secured Loans :

 

As on 31.03.2010

Rs. in Millions

Debentures (1)

1500.000

Loans from Banks

 

- On Cash Credit/ Working Capital Demand Loan (2)

1122.676

- Term Loans * 3(i) and (ii)

4879.260

Total

7501.936

 

* Includes Rs. 1035.699 Millions (Previous Year – Rs.1361.100 millions) repayable within a year

 

 

 Security Note/ Clause

 

Loan

Outstanding

As at 31.03.2009

(Rs. in millions)

Security

1. 1500, 13%, Listed, Secured Redeemable Non-Convertible Debentures of Rs.1.000 million each

 

Terms and conditions

a) Redeemable at face value in three annual installments in the ratio of 30%, 30% and 40% commencing from the end of the fourth year from the date of allotment

 

b) Call option at the end of the third year with step up of 0.5%

p.a. if call option is not exercised

1500.000

 

form on certain immoveable properties of the Company situated in Gujarat. In addition these debentures are secured by hypothecation of the Company’s moveable properties, both present and future, situated at Manali, Viralimalai and Gummidipoondi in Tamil Nadu, Jhiwana in Rajasthan, Malanpur and Indore in Madhya Pradesh and Kashipur in Uttarakhand and an equitable mortgage of the Company’s immoveable properties, both present and future, situated at Viralimalai, Gummidipoondi in Tamil Nadu, Jhiwana in Rajasthan, Kashipur in Uttarakhand, Malanpur (save and except superstructures) and Indore in

Madhya Pradesh

2. Cash credit/working capital

demand loans

1122.676

 

debts, both present and future at Manali, Viralimalai and Gummidipoondi in Tamil Nadu, Jhiwana in Rajasthan, Malanpur and Indore in Madhya Pradesh, Kashipur and Pantnagar in Uttarakhand. A part of the working capital facilities secured by a second charge on some of the Company’s immoveable properties, are pending vacation of such second charge in accordance with the revised terms and conditions of the working capital facilities

3. (i) Term loan from banks

1959.117

Term loans from banks are secured by:

a) Hypothecation of the Company’s moveable properties, both present and future, situated at Manali, Viralimalai and Gummidipoondi in Tamil Nadu, Jhiwana in Rajasthan, Malanpur and Indore in Madhya Pradesh.

 

Term loan of Rs.555.186 millions is additionally secured by hypothecation of the Company’s moveable properties, both present and future, situated at Pantnagar in Uttarakhand

b) Equitable mortgage of the Company’s immoveable properties, both present and future, situated at Viralimalai, Gummidipoondi (freehold land) in Tamil Nadu, Jhiwana in Rajasthan and Kashipur in Uttarakhand

 

Term loans aggregating to Rs.1140.186 millions are additionally secured by equitable mortgage of the Company’s immoveable properties, both present and future, situated at Indore in Madhya Pradesh

 

Term loans aggregating to Rs.877.686 millions is additionally secured by equitable mortgage of the Company’s immoveable properties, both present and future, situated at Gummidipoondi (leasehold land) in Tamil Nadu

 

Term loan of Rs.555.186 millions is additionally secured by equitable mortgage of the Company’s immoveable properties, both present and future, situated at Malanpur (save and except superstructure) in Madhya Pradesh

 

Loans as at 3(i) are to be further secured by equitable mortgage of the Company’s immoveable properties, both present and future, situated at Manali in Tamil Nadu and at Pantnagar in Uttarakhand Out of the loans as at 3(i), the term loans aggregating to:

a) Rs.820.000 millions are to be further secured by equitable mortgage of the Company’s immoveable properties, both present and future, situated at Gummidipoondi (leasehold land) in Tamil Nadu, at Malanpur (save and except superstructures) and at Indore in Madhya Pradesh

 

b) Rs.322.500 millions are to be further secured by equitable mortgage of the Company’s immoveable properties, both present and future, situated at Malanpur in Madhya Pradesh (save and except superstructures)

c) Rs.262.500 millions is to be further secured by equitable mortgage of the Company’s immoveable properties, both present and future, situated at Gummidipoondi (leasehold land) in Tamil Nadu and at Malanpur in Madhya Pradesh(save and except superstructures)

(ii) Term loan from banks

2920.143

Term loans from banks are secured by hypothecation of the Company’s moveable properties, both present and future, situated at Manali, Viralimalai and Gummidipoondi in Tamil Nadu, Jhiwana in Rajasthan, Malanpur in Madhya Pradesh, Kashipur and Pantnagar in Uttarakhand Out of the loans as at 3(ii), term loans aggregating to Rs.1071.000 millions are to be further secured by equitable mortgage of the Company’s immoveable properties, both present and future, situated at Manali, Viralimalai, Gummidipoondi in Tamil Nadu, Jhiwana in Rajasthan, Kashipur and Pantnagar in Uttarakhand, Malanpur (save and except superstructures) and Indore in

Madhya Pradesh

Total

 

7501.936

 

 

Unsecured Loans :

As on 31.03.2010

Rs. in Millions

Short Term Loans and Advances

 

Banks

1891.438

Total

1891.438

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

 

 

Joint Ventures:

·         Jingde Yangtze

·         Ganga Fluorine

·         Chemical Company Limited

 

 

Memberships :

·         Confederation of Indian Industry

 

 

Associates:

·         SRF Properties Limited

·         KAMA Holdings Limited

·         Bhairav Farms Private Limited

·         Narmada Farms Private Limited

·         SRF Polymers Investments Limited

·         KAMA Reality (Delhi)  Limited

·         Sgru Educare Limited

·         Shri Edlucare Maldives Private Limited

·         SRF Foundation

 

 

Subsidiaries:

·         SRF Overseas Limited

·         SRF Americas Inc

·         SRF International (BVI) Limited

·         SRF International (Mauritius) Limited

·         SRF Technologies Inc

·         SRF Properties Limited

·         SRF Transnational Holdings Limited

·         SRF Holiday Home Limited

·         SRF Energy Limited

·         SRF Fluorochemicals Limited

·         SRF Fluor Private Limited

·         SRF Global BV

·         SRF Tech Textile BV

·         SRF Technical Textiles (Thailand) Limited

·         SRF Industex Belting (Pty) Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

120000000

Equity Shares

Rs.10/- each

Rs. 1200.000

millions

1000000

Preference Shares

Rs.100/- each

Rs. 100.000

millions

1200000

Cumulative Convertible Preference Shares

Rs.50/- each

Rs. 60.000 millions

20000000

Cumulative Preference Shares

Rs.100/- each

Rs. 2000.000

Millions

 

Total

 

Rs. 3360.000

millions

 

Issued Capital :

 

No. of Shares

Type

Value

Amount

73830327

Equity Shares

Rs.10/- each

Rs. 738.303

millions

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

60503580

Equity Shares

Rs.10/- each

Rs. 605.036 Millions

Add :

Amount Paid on Forfeited Shares

 

Rs. 10.151 millions

Add :
Share Capital Suspense

 

Rs. 0.054 million

 

TOTAL

 

Rs. 615.241

 

 

Of the subscribed and paid up capital – 2034848 (Previous Year – 2034848) equity shares allotted as fully-paid up as bonus shares by capitalization of reserves

 

Share capital suspense represents 5408 (Previous Year – 5408) equity shares which are awaiting allotment to the erstwhile shareholders of Flowmore Polysters Limited (FPL) pending settlement of calls in arrears in respect of their shareholding in FPL

 

181425 (Previous Year – 7200000) equity shares of Rs 10 each fully-paid up, bought back during the year and extinguished during the year/subsequent to the year-end in accordance with Section 77A of the Companies Act, 1956

 

 

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

615.241

617.055

689.055

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

12064.833

9147.707

9026.549

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

12680.074

9764.762

9715.604

LOAN FUNDS

 

 

 

1] Secured Loans

7501.936

7501.468

4254.974

2] Unsecured Loans

1891.438

1346.773

731.380

TOTAL BORROWING

9393.374

8848.241

4986.354

DEFERRED TAX LIABILITIES

2059.114

1733.011

1484.357

 

 

 

 

TOTAL

24132.562

20346.014

16186.315

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

17717.393

13796.473

11463.711

Capital work-in-progress

1270.743

2808.029

892.975

 

 

 

 

INVESTMENT

1646.167

1336.001

1475.296

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
2490.310
1911.057
2285.943

 

Sundry Debtors
3402.293
2302.415
2329.976

 

Cash & Bank Balances
653.497
31.004
72.305

 

Other Current Assets
0.000
0.000

0.000

 

Loans & Advances
1672.976
1467.962
938.751

Total Current Assets
8219.076
5712.438
5626.975

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
2062.656
2251.313
 

 

Other Current Liabilities
2411.275
876.239
2978.188

 

Provisions
246.886
179.375
294.454

Total Current Liabilities
4720.817
3306.927
3272.642

Net Current Assets
3498.259
2405.511
2354.333

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

24132.562

20346.014

16186.315

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

21810.776

18008.189

16153.020

 

 

Other Income

681.592

182.710

199.850

 

 

TOTAL                                     (A)

22492.368

18190.899

16352.870

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw Material Consumed

11271.065

9267.197

9054.110

 

 

Increase/(Decrease) in Finished Goods

(261.732)

329.563

85.303

 

 

Purchases of goods for resale

364.166

6.837

20.832

 

 

Manufacturing and Other Expenses

4586.726

4622.517

3840.094

 

 

Transfer from revaluation reserve

(8.749)

(6.060)

(8.005)

 

 

 

 

 

 

 

 

TOTAL                                     (B)

15951.476

14220.054

12992.334

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION(A-B)       (C)

6540.892

3970.845

3360.536

 

 

 

 

 

Less

FINANCIAL EXPENSES/ INTEREST                   (D)           

680.479

511.128

360.685

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

5860.413

3459.717

2999.851

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                      (F)

1321.320

1000.145

975.178

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

4539.093

2459.572

2024.673

 

 

 

 

 

Less

TAX                                                                 (H)

1444.891

826.762

637.375

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

3094.202

1632.810

1387.298

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

4820.680

4421.998

NA

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Interim Dividend

847.050

625.350

NA

 

 

Corporate Dividend Tax

143.956

106.278

NA

 

 

Transfer to General Reserve

350.000

200.000

NA

 

 

Debenture redemption reserve

302.500

302.500

NA

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

6271.376

4820.680

NA

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of goods calculated on FOB value

5622.444

6585.622

5780.592

 

 

Interest

14.914

7.115

NA

 

 

 

 

 

 

 

TOTAL EARNINGS

5637.358

6592.737

5780.592

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

3688.991

3913.721

3423.725

 

 

Stores & Spares

79.933

91.431

45.405

 

 

Capital Goods

2088.572

1217.368

143.352

 

 

 

 

 

 

 

TOTAL IMPORTS

5857.496

5222.520

3612.482

 

 

 

 

 

 

Earnings Per Share (Rs.)

51.14

25.78

20.44

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

31.03.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Net Sales

6189.800

7481.700

8441.200

8520.100

Total Expenditure

4900.300

5343.600

5566.900

6114.300

PBIDT (Excl OI)

1289.500

2138.100

2874.300

2405.800

Other Income

78.800

175.800

113.200

55.600

Operating Profit

1368.300

2313.900

2987.500

2461.400

Interest

196.300

205.000

224.800

213.100

Exceptional Items

0.000

0.000

0.000

0.000

PBDT

1172.000

2108.900

2762.700

2248.300

Depreciation

366.300

381.200

392.6000

377.000

Profit Before Tax

805.700

1727.700

2370.100

1871.3000

Tax

257.900

513.600

658.400

510.500

Provisions and contingencies

0.000

0.000

0.000

0.000

Profit After Tax

547.800

1214.100

1711.7000

1360.800

Extraordinary Items

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

547.800

1214.100

1711.700

1360.800

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)

13.76

8.98
8.48

 

 

 

 
 

Net Profit Margin

(PBT/Sales)

(%)

20.81

13.66
12.53

 

 

 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)

17.50

12.60
11.85

 

 

 

 
 

Return on Investment (ROI)

(PBT/Networth)

 

0.36

0.25
0.21

 

 

 

 
 

Debt Equity Ratio

(Total Liability/Networth)

 

1.11

1.25
0.85

 

 

 

 
 

Current Ratio

(Current Asset/Current Liability)

 

1.74

1.73
1.72

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Note:

 

The company’s Registered Office has been shifted from A – 16, Aruna Asaf Ali Marg, Qutab Industrial Area, New Delhi - 110067, India to present

w. e. f. 1st July, 2007.

 

HISTORY

 

Subject, a multi-product and multi-business organisation was incorporated on 9th January 1970 under the name of Shriram Fibres Limited, now it is market leader in Technical Textiles, Refrigerants, Engineering Plastics and Industrial Yarns. The business divisions of the company include Technical Textile Business, Chemical Business, Packaging Films Business, Industrial Yarn Business and Engineering Plastics Business. SRF is a global entity with operations in 8 locations of India, in Dubai, in South Africa and in Thailand, totally 4 countries. Building on its in-house R and D facilities for Technical Textiles Business and Chemicals Business, the company strives to stay ahead in business through innovations in operations and product development. The commencement of Nylon Tyre Cord Fabric Plant at Manali, Chennai was made by the company in the year of 1974, also introduced Fishnet Twines and Nylon Engineering Plastics in the same location during the year 1977 and 1979 respectively. During the year 1983 and 1986, the company commissioned Industrial Fabrics Plant and Coated Fabrics project respectively at Tiruchirapalli. In the identical year of 1986, subject Finance Limited was started its operations. In 1989, subject had commissioned commercial production of fluorochemicals at Bhiwadi. The change in the name was made in the year 1990; the name of the company was changed from Shriram Fibres Limited to the present name SRF Limited. Total Quality Management (TQM) practice was adopted by the company in wide during the year 1993 itself. In the period of 1995, subject took over the nylon tyre Cord plant of Ceat at Gwalior and also started Chloromethane production at Bhiwadi. The first overseas presence was made in the year 1996 by the way of formed operation plant in Dubai. The company divested subject Finance Limited to GE Capital in 1997 and acquired Tyre Cord Fabric conversion facility of Dupont at Gummidipoondi, Chennai during the year 2000. In 2001, subject became one of the top ten suppliers of nylon tyre cord in the world and also commenced operations of subject E-Biz, an e- procurement business. The Company's Polyester Films, Fishnet Twines and Engineering Plastics businesses spun off as a separate entity in the year 2002 under the name of Subject Polymers Limited Flurochemicals Business of the company at Bhiwadi awarded the prestigious OHSAS 18000 and SA 8000 certification for practicing environment safety in the period of 2003. During the year 2004, subject had unlocked the Packaging Film Plant at Indore and Pharma Chemicals Business at Bhiwadi. Also in the identical year of 2004, Deming Application Prize awarded to the Industrial Synthetics Business. Subject became one of the top 3 manufacturers of belting fabrics in the world during the year 2005. The Captive Power Project at the company's Chemical Business, Jhiwana, had commissioned and capitalized in April of the year 2006. The project of holographic film plant of the company had commissioned in December of the year 2007 at an investment of approximately Rs.100 millions. The product from this plant is used for luxury packaging segments. SRF has acquired two foreign companies during 2008, one in Thailand and the other one in South Africa. Thai based Thai Baroda Industries Limited (TBIL) is a tyre cord company and South Africa based Industex Technical Textiles (Pty) Limited is a manufacturer of belting fabrics. The Company also plans to invest around Rs.1000 millions for its Chemical Business especially in the area of upgrading its R and D facilities, for developing new products under fluoro specialities and setting up of a new power plant at its Bhiwadi Plant.

 

OPERATIONS REVIEW

 

Net sales of the Company grew by 21.12 per cent from Rs 18008.200 Millions in 2008-09 to Rs 21810.800 Millions in 2009-10. Profit before interest, depreciation and tax (PBIDT), including ‘other income’ increased from Rs 3943.400 Millions in 2008- 09 to Rs 6494.000 Millions in 2009-10. Profit before tax (PBT) increased by 84.55 per cent from Rs 2459.600 Millions in 2008- 09 to Rs 4539.100 Millions in 2009-10. After accounting for the provision on taxation of Rs 1444.900 Millions, which includes deferred tax liability and provision relating to earlier years, profit after tax (PAT) grew by 89.50 per cent from Rs 1632.800 Millions in 2008-09 to Rs 3094.200 Millions in 2009-10.

 

SUBSIDIARY COMPANIES

 

Restructuring of shareholding in international subsidiaries

 

The Company had setup two international holding companies in Netherlands - SRF Global B.V. and SRF Tech textile B.V. to realign and restructure the investment in overseas operating entities. The entire shareholding in SRF Technical Textiles (Thailand) Limited and SRF Industex Belting (Pty) Limited, which were earlier held by SRF Overseas Limited, a wholly owned subsidiary of the Company was transferred to SRF Tech textile B.V. w.e.f April1, 2010. Consequently, these two operating entities became subsidiaries of SRF Tech textile B.V.

 

SRF Global B.V.

 

SRF Global B.V. has reported a loss of Euro 0.20 lakhs during the year 2009-10 on account of administrative expenses. During the year, SRF Global B.V. has set up a wholly-owned subsidiary viz. SRF Tech textile B.V. in Netherlands.

 

SRF Tech textile B.V.

 

SRF Tech textile B.V. has reported a loss of Euro 0.005 lakhs during the year 2009-10 on account of administrative expenses.

 

SRF Technical Textiles (Thailand) Limited

 

SRF Technical Textiles (Thailand) Limited (SRFTTT), a wholly owned subsidiary of SRF Tech textile B.V. is a company incorporated in Thailand and engaged in the manufacture and distribution of nylon tyre cord. For the year 2009-10, the turnover of the Company was THB 1548.31 million and net profit was THB 33.38 million.

 

SRF Industex Belting (Pty) Limited

 

SRF Industex Belting (Pty) Limited (SRFIB), a wholly owned subsidiary of SRF Tech textile B.V. is a company incorporated in South Africa and engaged in the manufacture of belting fabrics. For the year 2009-10, the turnover of the Company was ZAR 122.03 million and net profit was ZAR 15.31 million.

 

SRF Overseas Limited (SRFO)

 

SRFO, a wholly owned subsidiary operating out of Dubai, is an arm of the Technical Textiles Business (TTB) targeted at the markets of Middle East, Europe and Africa. During the year 2009-10, turnover of the Company was AED 99.64 million and the Company incurred a loss of AED 0.66 million.

 

 

OTHER SUBSIDIARIES

 

SRF Transnational Holdings Limited made a profit (PAT) of Rs 1.066 Million during the year 2009-10. This profit was mainly on account of dividend and interest income.

 

SRF Properties Limited earned a net profit (PAT) of Rs 0.913 Million during the year 2009-10.

 

SRF Holiday Home Limited (formerly SRF Infrastructure Limited) has made a loss of Rs 0.455 Million during the year 2009- 10. It has entered into an agreement for purchase of a villa in Kasauli for use by the officers of SRF Group as a holiday home.

 

SRF Fluorochemicals Limited has not started any operations.

 

SRF Energy Limited has not started any operations.

 

SRF Fluor Private Limited too has not yet started operations and has reported a loss of USD 7960 during the year 2009-10. The loss is on account of administrative expenses.

 

The Central Government vide its letter No. 47/238/2010- CL-III dated 22nd April, 2010 has under section 212(8) of the Companies Act, 1956, exempted SRF from attaching a copy of balance sheet, profit and loss account, auditor’s report and directors’ report of its subsidiary companies and other documents required to be attached

under Section 212(1) of the Act to the balance sheet of the Company. Details of subsidiary companies required to be published in the Annual Report as per the said letter are given separately in the Annual Report.

 

MANAGEMENT DISCUSSION AND ANALYSIS:

 

The revival of the Indian economy came close on the heels of a year of a short-lived slowdown, which was undoubtedly unprecedented in terms of both severity and reach. SRF utilised this period to improve its internal efficiency and hence was better prepared to reap the benefits when the economy became favourable during 2009-10. Highlights of SRF’s financial performance:

 

·         net sales from operations up by 21.12  per cent from Rs 18008.200 Millions in 2008-09 to Rs 21810.800 Millions in 2009-10

·         profit before depreciation, interest (net) and tax up by 64.68 per cent from Rs 3943.400 Millions in 2008-09 to Rs 6494.000 Millions in 2009-10

·         profit after tax (PAT) up by 89.50 per cent from Rs 1632.800 Millions in 2008-09 to Rs 3094.200 Millions in 2009-10

·         earnings per share up by 98.37 per cent from Rs 25.78 in 2008-09 to Rs 51.14 in 2009-10

 

This Management Discussion and Analysis of the company’s financial condition and results of operations contains forward-looking statements regarding future events and future results. These are based on previous year’s performance, current expectations, estimates, forecasts, and projections about the industries in which it operates and the beliefs and assumptions of the Company’s management.

 

BUSINESSES

 

SRF has a portfolio of established businesses in industrial intermediates. Over the past few years, the Company has also developed new businesses in Packaging Films and Fluoro specialities as part of its long-term strategy for growth. It classifies its main businesses as: Technical Textiles Business (TTB), Chemicals and Polymers Business (CPB) and Packaging Films Business (PFB).

 

Technical Textiles Business

 

Technical Textiles Business (TTB), which includes tyre cord fabrics, belting fabrics, coated and laminated fabrics, and industrial yarns continues to be SRF’s largest business segment, contributing over 50 per cent to the total sales of the Company. During 2009-10, sales of the business have grown from Rs 9049.700 Millions in 2008-09 to Rs 11996.800 Millions.

 

Tyre Cord Reinforcements

 

SRF manufactures a basket of reinforcement fabrics for tyre. It’s main product is, however, the nylon tyre cord fabrics (NTCF), which is used in the reinforcement of bias tyres. The slowdown in demand of NTCF which began during the second half of 2008-09 affected the company in a limited way. Building on its internal efficiencies, the Company very quickly ramped up the production from the very beginning of the financial year when things turned favourable. SRF was thus able to service the increased demand of the market and in the process posted a robust growth of around 30 per cent year-on-year (YoY) in NTCF segment of the Technical Textiles Business.

 

The acquisition of the tyre cord unit in Thailand has started showing immediate results. SRF has been able to turn around this unit within a year of taking over and during 2009-10 this unit generated positive cash flows.

 

SRF has also earned the unique distinction of commissioning India’s first polyester industrial yarn (PIY) plant. The plant has the capability to manufacture high modulus low shrinkage (HMLS) polyester yarn and an assortment of high tenacity and low shrinkage yarns for various industrial applications. With this, SRF is poised to serve the growing segment of polyester tyre cord fabric used in the reinforcement of radial tyres for passenger cars and light commercial vehicles.

 

Belting Fabrics

 

Belting fabrics, which are used as reinforcement material for conveyor belts, have been witnessing a stable demand. Over the past five years, volume in this segment for the company has increased at a compounded annual growth rate (CAGR) of about 8 per cent. SRF continues to be the market leader in India in this segment with a domestic market share of around 50 per cent and has a significant presence in other regions, including Europe.

 

The company continues with its long-term strategy of attaining global leadership by manufacturing products closer to customers in belting fabrics business. Having strengthened its position in the mining hub of the African continent following the acquisition of a company in South Africa in July 2008, the company is now poised to enter new markets such as South America. Through the use of TQM practices the company turned around this unit which has generated healthy returns.

 

Coated and Laminated Fabrics

 

Coated fabrics are used in a wide range of applications including protective covers, dynamic tarpaulins, static covers, auto-canopies and awnings. Building on its 17 per cent growth recorded during the slowdown year of 2008-09, the business further raised the bar by taking the figure to 32 per cent during 2009-10.

 

Recognising the opportunity in this product, SRF made a maiden entry into the laminated fabrics segment by setting up a production facility at Kashipur. With the commencement of commercial production during end Q4 2009-10, SRF today offers a basket of products in this segment for agriculture, Industrial applications and display solutions (signages) for advertising industry.

 

The company has recently obtained board approval to enhance the capacity of coated fabrics by 170 lakh square metre per annum at SRF’s existing plant location in Gummidipoondi with a total investment of approximately Rs 1430.000 Millions. The new facility will offer new products such as lacquered tarpaulins and fabrics for tensile structures and awnings as well as Poly Urethane (PU) coated fabrics, which are fast emerging applications in India.

 

Industrial Yarn Business (IYB)

 

The Industrial Yarn Business manufactures high tenacity nylon 6 yarn with deniers ranging from 210 D to 1890 D. Major applications of this yarn (other than tyre cord) are mechanical rubber goods, fishing nets, stitching threads, defense applications and luggage fabrics.

 

With the commissioning of the polyester industrial yarn project, SRF is able to offer a basket of industrial yarns (nylon and polyester) for conveyor belts, transmission belts, hose, rope and geo-textile applications.

 

Over the next few years, the business plan would address both the tyre and non-tyre industrial yarn segments leading to the introduction of value-added products.

 

Outlook

 

The bus and truck tyre segment, which accounts for nearly 65 per cent of SRF’s NTCF sales, currently has 10 per cent radialisation. Investments in radial capacity are coming up and even if all the announced investments for radial tyres fructify, the most optimistic level of radialisation is likely to be around 30 per cent by 2014-15. Given an economic growth of 7-8 per cent, with such extensive radialisation, the study confirms that the demand for NTCF would continue to grow for next 10 years. This growth will come largely from non-bus and truck tyre segments such as two-wheeler, offthe- road (OTR) and tractor tyres.

 

India is emerging as the largest producer of motor cycles in the world and the tyres used for these vehicles use nylon tyre cord fabric. The passenger car tyre radialisation in India as well as all developing countries have reached a mature level now. This would open up opportunities to grow in polyester tyre cord fabrics. SRF is well poised to grow in this segment with the commencement of commercial production of high modulus low shrinkage (HMLS) polyester yarn and fabric. SRF has initiated approval process of this product with all tyre majors and already commenced commercial supplies to some of the Indian tyre companies.

 

In belting fabrics, given the expectation of high growth in the domestic mining industry and infrastructure sectors such as power and construction, the outlook is very positive in India. This augurs well for SRF, which has over 50 per cent share of this business in the domestic market.

 

Coated fabrics, which has been a small business for SRF is now poised for growth. With the introduction of laminated fabrics in 2010-11 and the approval for setting up a new plant for coated fabrics, the revenues of this segment are expected to rise several folds.

 

Having established strong cash flows from operations last year, the TTB is in the process of evaluating various options to grow its topline substantially in the coming years through a diverse product portfolio.

 

Chemicals and Polymers Business

 

The manufacturing operations of SRF’s Chemicals Business are located at Bhiwadi, in Rajasthan, about 70 kilometres from New Delhi. The Business derives its revenue from sale of fluorine-based refrigerants, chloromethanes, and the fast-growing specialty fluorochemicals business. It also includes receipts based on the destruction of the greenhouse gas, Hydrochlorofluorocarbons (HCFC-23) and the sale of CERs generated by such destruction under the mechanism defined under the Kyoto Protocol.

 

The global market for carbon credits continues to be encouraging. The year also saw fluorospeciality business generating operating profits for the first time.

 

During 2009-10 the Chemicals Business posted strong margins riding on the constrained commodity availability globally. The challenges in sourcing of raw materials were matched by the rising finished goods prices.

 

The prospects of further growth in the fluorospecialities business remain encouraging and the Company continues to invest in this R and D intensive, technologically-driven business segment.

 

Refrigerants

 

Refrigerants are primarily used as the cooling medium by the air-conditioning and refrigeration industry. SRF continues to be one of the larger and more credible players in the industry globally. It is the market leader with about 40 per cent share in the domestic market. Exports of the business are spread across 45 countries worldwide, and account for over 80 per cent of the volumes produced.

 

SRF’s refrigerants portfolio includes Hydrochlorofluorocarbons (HCFC-22), the new-generation refrigerant Hydrofluorocarbon (HFC-134a), and the refrigerant blend R404a. SRF has been aligning its product mix in line with the changing market trends and emerging environmental awareness, and has the only manufacturing plant in India producing HFC-134a. This puts SRF in a different league versus competitors who import the product in bulk and use refilling plants for re-packaging and distribution, with no control over the manufacturing process.

 

Chloromethanes

 

SRF’s main products in the chloromethanes business are methylene chloride, chloroform and carbon tetrachloride

(CTC). While chloroform is internally consumed for manufacturing HCFCs, methylene chloride is sold in the domestic market. Carbon tetrachloride, which is an ozonedepleting substance, is now sold domestically only for feedstock use in line with the company’s commitments under the Montreal Protocol.

 

Through in-house technical innovations, the Company has achieved a favourable market-oriented product mix in its manufacturing process, to cope with declining market demand for CTC and increasing demand for methylene

chloride. This has helped the Company in optimizing production and improving overall profitability. In 2009-10, the chloromethanes segment contributed substantially to the business’ profitability, driven by constrained international

availability of methylene chloride.

 

Fluorospecialities

 

Fluorine-based specialty chemicals are finding increasing usage in the fields of agrochemicals, pharmaceuticals and performance products. Building on its presence in the fluorine chemistry industry for almost two decades, SRF had entered the space of specialty fluorine chemistry in 2003-04. The focus has been to leverage the Company’s expertise to produce intermediates and advanced intermediates, which are used to manufacture Active Pharmaceutical Ingredients (APIs) and agrochemicals by its customers.

 

To take on process development for new molecules at the scale necessary to support the Business’ growth plans,

the strength of R and D and process engineering have been significantly augmented, in terms of people, infrastructure and management. Today, a number of products are in the advanced stages of development and the business is closely engaged with buyers for most of these products.

 

Plastics

Engineering Plastics, a group of polymers comprising polyamides (N6 and N66), poly butelyne thalate (PBT) and poly carbonates (PC), had good growth during the year due to improved demand. The Company achieved the highest ever volumes and increased its market share during the year.

 

There was a steep rise in the market demand mainly due to automotive and construction industry witnessing a steep revival. This had a direct impact on growth and profitability of the business. A new polymer, PBT, which is used by some of the high-growth segments like compact fluorescent lamp (CFL) was successfully stabilised during the year. Due to competitive market situation, margins had been under pressure.

 

The Business continues to enhance its skills in R and D and new product development, thereby reducing cost of processing and developing high end grades. The Company has also undertaken the development work of poly carbonate-based engineering plastics and started commercial sales in the fourth quarter of the year.

 

Outlook

 

he Chemicals Business has been re-inventing itself over the last few years. From being a commodity player in the

refrigerant gas space, this business is rapidly expanding into specialty fine chemicals, deriving value from leadingedge R and D and intellectual property, rather than low-cost production alone.

 

The commodity product portfolio is also evolving and focusing on producing and delivering new-generation HFCs and HFC blends to the market, instead of CFCs and HCFCs. The business believes this evolution to be both necessary and welcome, and will position the Company optimally for the next stage of growth, in both commodities and specialty fine chemicals. During 2010-11, the business looks to expand its production capacity for both refrigerants and chloromethanes, and set up new production facilities for multi-purpose chemicals at Dahej, in Gujarat, which will be the site of choice for most new investments.

 

In fluorospecialities too, the business will set up new projects every year, thereby building the product portfolio, reputation and credibility with the global agrochemical and pharmaceutical majors who are the key customers.

 

Growth in the engineering plastics will continue to be driven by automobile and electrical sector. Although the prevailing competitive situation may adversely impact margins, the increased per capita consumption is expected to grow in the years to come. The Company is confident of retaining its dominant position in the market by way of leveraging its customer-centric approach and is setting up a dedicated product development lab which is expected to improve margins and position the business for the high end applications segment.

 

Packaging Films Business

 

SRF continued to follow its strategy of a judicious mix of international and domestic sales, thus ensuring complete

capacity utilisation. The capacity expansion was completed during the year and the additional capacity was fully placed in the market. As a result, revenues grew by 16 per cent in 2009–10 to Rs 3364.800 Millions. The full year impact of this capacity addition will get reflected in the FY 2010-11.

 

Further, SRF has successfully converted its smaller line at Uttaranchal to a swing plant for producing both thin and thick films. The latter are used in the fashion industry. This swing capability gives SRF the flexibility to produce either of the products depending on the market situation. In addition, the project of backward integration into a resin plant is progressing well and expected to come on stream during Q2 FY 2010-11.

 

Outlook

 

FY 2010-11 is a year of cautious optimism. While no major capacity enhancements are expected worldwide, the

uncertainty on the European financial stability front remains a cause of concern. On the domestic front demand growth rate is expected to remain at a healthy 12 per cent. New capacities are also likely to be commissioned in India in the last quarter of FY 2010-11.

 

SRF’s strategy for the year will be to ensure timely start up of the backward integration project and its full capacity

utilisation. The long term prospects of this business are encouraging and SRF will continue to explore various organic and inorganic opportunities in this business to maximize shareholders’ returns.

 

Information Technology

 

SRF leverages Information Technology effectively to improve revenue, productivity while reducing costs and risks of doing business.

 

The Company upgraded its ERP platform to a more recent version of Oracle applications and database and migrated to a more stable platform. SRF also deployed Oracle Process Manufacturing module in Packaging Films Business and is concluding implementation in the Technical Textiles’ Viralimalai plant. This will provide end-to-end visibility of its entire value chain from material procurement to production to sales of end products, thereby leading to better utilisation of materials, improved inventories and deliveries.

 

SRF continued its journey on Knowledge Management by setting up collaboration and documentation websites on its intranet for many processes and departments. Apart from reducing time spent in seeking information, this is bringing about a change in the way the Company works with information across its units.

 

Community Partnerships

 

SRF tirelessly aspires to be a conscientious corporate citizen, based on trust, transparency and accountability. The Company, as a signatory to Workplace HIV/AIDS Policy during 2005-06, continued with HIV/AIDS awareness programmes. During this financial year, different business units covered approximately 20,000 people including employees, contract labours, truckers and communities residing in the nearby villages. As signatory of CII Code of Conduct, SRF had launched an affirmative action in support of SC/ST community across all of its Indian business locations.

 

To realise its aspiration, SRF is involved in social engagement beyond products and profitability through its social arm, the SRF Foundation. The key focus areas in social engagement have been education, vocational skills, health and natural resource management.

 

SRF Foundation with a range of developmental activities in implementation, continued with its commitment to enrich the lives of its community. Among other initiatives, the Foundation remains committed to providing access to high quality education to students from both the privileged and less privileged backgrounds through Shri Ram Schools (two in Gurgaon and one in New Delhi), Lady Shri Ram College for Women in Delhi and SRF Vidyalaya in Chennai.

 

Some of the key community development initiatives undertaken by the Company are: Mewat Rural Education Programme (MREP) – aims at providing holistic improvement in 25 primary and 15 middle schools in the Nuh Block of Mewat District of Haryana, in collaboration with the Government of Haryana.

 

Enhancing Early Education (3EP) - offers a teachers’ development programme for the pre-primary segment incorporating the successful innovative methodology already in place in The Shri Ram Schools.

 

Shri Sambandh - an outreach programme for various partners who run education programmes for deprived children.

 

Vocational Education Programmes - aims at creating employment opportunities for the youth by way of providing

skilled manpower to the industry.

 

Natural Resource Management (NRM) – aims at enhancing livelihoods of the poor by harnessing underutilised land and water resources in Alwar district, Rajasthan. The project entered the fourth year of implementation.

 

CONTINGENT LIABILITIES NOT PROVIDED FOR:

 

a. Claims against the Company not acknowledged as debts:

 

Particulars

31.03.2010

(Rs. in millions)

Excise Duty*@

565.281

Sales Tax**@

24.938

Income Tax

89.700

Stamp Duty****

288.155

Others***

21.010

 

* Amount deposited Rs. 22.260 millions (Previous year – Rs. 24.035 Millions)

** Amount deposited Rs. 0.716 million (Previous year Rs. 5.200 Millions)

*** Amount deposited Rs. 11.906 Millions (Previous Year – Nil)

**** In the matter of acquisition of the Tyrecord Division at Malanpur from Ceat Limited, the Collector of Stamps, Bhind has by his order dated 7 November 2001 assessed the value of the subject matter of the Deed of Conveyance dated 13 June 1996 at Rs. 3030.000 millions and levied a stamp duty of Rs. 237.250 millions and imposed a penalty of Rs. 50.905 millions. The said demand was challenged before the High Court of Madhya Pradesh Bench at Gwalior. The High Court accepted the case of the Company that the subject matter of the Deed of Conveyance dated 13 June 1996 is only the superstructures valued at Rs. 277.618 millions and not the entire undertaking valued at Rs. 3030.000 millions as claimed by the State. Consequently, the High Court of Madhya Pradesh quashed the order and demands issued by the Collector of Stamps, Bhind (Madhya Pradesh) and allowed the writ petition by an order dated 29 November 2004. Against the said order, the State of Madhya Pradesh preferred a Special Leave Petition before the Hon’ble Supreme Court which the State of Madhya Pradesh has withdrawn to enable it to approach the Hon’ble High Court of Madhya Pradesh at Gwalior in view of the change in law in the State of Madhya Pradesh relating to Letters Patent Appeal.

 

As per Business Transfer Agreement with KMA Holdings Limited (Formerly SRF Polymers Limited), the liabilities of Rs. 181.321 millions (Previous year – Rs. 182.193 Millions) and Rs. 2.810 millions (Previous year – Rs. 2.810 Millions) respectively towards Excise Duty and Sales Tax are covered under Representations and Warranties.

 

FIXED ASSETS

 

·         Freehold Land

·         Leasehold Land

·         Roads

·         Buildings

·         Plant and Machinery

·         Furniture, Fixtures and Office Equipments

·         Vehicles

·         Goodwill

·         Technical Knowhow

·         Software

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST MARCH 2011

 

(Rs. in Millions)

Particulars

3 Months  Ended

31.03.2011

Current

Accounting Year Ended

31.03.2011

 

Unaudited

Audited

1. a) Net sales/ Income from Operations.

8462.000

29860.600

2. b) Other Operating Income

58.100

772.200

Total Income

8520.100

30632.800

Expenditure

 

 

a. (Increase)/Decrease In Stock

[166.100]

[448.000]

b. Consumption of Raw Materials

4552.100

16359.000

c. Purchase of Traded Goods

23.400

146.400

d. Power and Fuel

595.000

2132.300

e. Employee Cost

474.100

1506.200

f. Depreciation

377.000

1517.100

g. Other Expenditure

635.800

2229.200

Total Expenditure

6491.300

23442.200

3. Profit from Operations before Other Income, Interest, Exchange Currency Fluctuation and Exceptional Items

2028.800

7190.600

4. Other Income

26.200

147.900

5. Profit before Interest, Exchange Currency Fluctuation and Exceptional Items

2055.000

7338.500

6. Interest and Finance Charges

213.100

839.200

7. Profit after Interest but before Exchange Currency Fluctuation and Exceptional Items

1841.900

6499.300

8. Exchange Currency Fluctuation Loss / (Gain)

[29.400]

[275.500]

9. Exceptional Items

--

--

10. Profit from Ordinary Activities before Tax

1871.300

6774.800

11. Provision for Tax

 

 

- Current Tax

514.300

1840.000

- Deferred Tax

[10.500]

100.000

- Provision for Tax Relating to Earlier Years

6.700

0.400

12. Net Profit from Ordinary Activities after Tax

1360.800

4834.400

13. Extraordinary Items (Prior Period Items) (Net of Tax Expense)

--

--

14. Net Profit for the Period

1360.800

4834.400

15. Paid Up Equity Share Capital (Rs.10 each fully paid up)

605.000

605.000

16.Paid up Debt Capital

--

1500.000

17. Reserves excluding Revaluation Reserve

--

15223.800

18. Debentures Redemption Reserve (included above)

--

907.500

19. Basic EPS for the Period (Not annualised)

22.49

79.90

20. Diluted EPS for the Period (Not annualised)

22.49

79.90

21. Debt Equity Ratio

--

0.51

22. Debt Service Coverage Ratio

--

4.96

23. Interest Service Coverage Ratio

--

10.53

24. Public Shareholding

 

 

- Number of Shares

31801467

31801467

- Percentage of Shareholding

52.56%

52.56%

25. Promoters and Promoter Group Shareholding

 

 

a) Pledged/ Encumbered

 

 

- Number of shares

--

--

- Percentage of shares (as a % of the total shareholding of promoter and promoter group)

--

--

- Percentage of shares (as a % of the total shareholding of the total share capital of the company)

--

--

b. Non-Encumbered

 

 

- Number of shares

28702113

28702113

- Percentage of shares (as a % of the total shareholding of promoter and promoter group)

100.00

100.00

- Percentage of shares (as a % of the total shareholding of the total share capital of the company)

47.44%

47.44%

 

 

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED UNDER CLAUSE 41 OF THE LISTING AGREEMENT FOR THE QUARTER AND YEAR ENDED 31ST MARCH 2011

 

        

                                                                                                                                                 (Rs. in millions)

Particulars

3 Months  Ended

31.03.2011

Current

Accounting Year Ended

31.03.2011

Segment Revenue

 

 

a)Technical Textile Business (TTB)

3914.500

14512.100

b) Chemical and Polymers Business (CPB)

2371.600

7466.700

c) Packing Film Business (PFB)

2246.100

8713.100

Total Segment Revenue

8532.200

30691.900

Less: Inter Segment Revenue

12.100

59.100

Net Sales / Income from Operations

8520.100

30632.800

Segment Results

 

 

(Profit before Interest and Tax from each Segment)

 

 

a) Technical Textiles Business (TTB)

412.100

1552.200

b) Chemicals and Polymers Business (CPB)

1037.400

2939.200

c) Packaging Film Business (PFB)

820.200

3476.700

Total Segment Results

2269.700

7968.100

Less/(Add): i) Interest and Finance Charges

213.100

839.200

 ii) Other Unallocable Expenses Net of Income

185.300

354.100

Total Profit Before Tax

1871.300

6774.800

Capital Employed (Segment Assets Less Segment Liabilities)

 

 

a) Technical Textiles Business (TTB) (Including Capital Work In Progress Rs. 98.100 millions as at 30th June 2010)

12090.000

12090.000

b) Chemicals and Polymers Business (CPB) (Including Capital Work In Progress Rs. 521.300 millions as at 30th June 2010)

6393.300

6393.300

c) Packaging Film Business (PFB) (Including Capital Work In Progress Rs. 843.900 millions as at 30th June 2010)

4852.200

4852.200

Total Capital Employed

23335.500

23335.500

Add : Unallocable Assets Less Liabilities

2719.300

2719.300

Total Capital Employed In the Company

26054.800

26054.800

 

STATEMENT OF ASSETS AND LIABILIITES AS AT MARCH 31, 2011

 

(Rs. in Millions)

Particulars

31.03.2011

Audited

Shareholder’s Funds

 

a) Share Capital

615.200

b) Reserves and Surplus

15784.800

Loan Funds

8121.700

Deferred Tax Liabilities

2094.200

Total

26615.900

 

 

Fixed Assets

19493.500

Investments

2019.000

Deferred tax Assets

--

Current Assets, Loans and Advances

 

a) Inventories

4387.300

b) Sundry Debtors

4426.000

c) Cash and Bank Balance

638.600

d) Other Current Assets

--

e) Loans and Advances

1501.900

Less: Current Liabilities and Provisions

 

a) Current Liabilities

5610.100

b) Provisions

240.300

Miscellaneous Expenditure

(Not written off or adjusted)

--

Profit and Loss Account

--

Total

26615.900

 

Notes:

 

·         The audited financial statements  have been recommended by the Audit Committee and taken on record by the Board of Directors at its meeting held on 9th May 2011. The information presented above is extracted from the audited financial statements.

·         The Board of Directors at its meeting held on 26th February, 2011 announced a buy-back of the fully paid up equity shares not exceeding Rs. 900.000 Millions at a maximum price of Rs. 380 per share from the open market through the stock exchange. The buy-back commenced on 6th April 2011 and may remain open upto 25th February, 2012. An aggregate of 58851 equity share at an average market price of Rs. 334.38 per share were bought back absorbing a total amount of Rs. 19.700 Millions till 6th May 2011.

·         There were no investor complaints outstanding at the beginning and  at the end of the quarter. The company received 95 complaints during the quarter and all of them were resolved.

·         The 13.00% Listed, Secured Redeemable Non-convertible debenture of Rs. 1.000 Million each aggregating to Rs. 1500.000 Millions are secured against first pari passu charge over some of the moveable and immovable properties of the company to the extent of assets cover of 2.33 times.

·         Previous period figures have been regrouped wherever necessary to conform to current quarter classifications.  

AS PER WEBSITE DETAILS:

 

Profile:

 

SRF is a multi-business entity engaged in the manufacturing of chemical based industrial intermediates. Established in 1973, SRF has today grown into a global enterprise with operations in 4 countries. With head quarters in Gurgaon, India, the $450 million company has operations in three more countries, UAE, Thailand and South Africa. Apart from Technical Textiles Business, in which it enjoys a global leadership position, SRF is a domestic leader in Refrigerants, Engineering Plastics and Industrial Yarns as well. The company also enjoys a significant presence among the key domestic manufacturers of Polyester Films and Fluorospecialities.

 

Building on its in-house R and D facilities for Technical Textiles Business and Chemicals Business, the company strives to stay ahead in business through innovations in operations and product development.

 

A winner of the prestigious Deming Application Prize for its tyre cord business, SRF continues to redefine its work and corporate culture with the TQM as its management way.

 

 

SRF Today – a snapshot

 

·                                Rs. 20000 millions multi-product, multi-business organization

 

  • Market leader in Technical Textiles, Refrigerants, Engineering Plastics and Industrial Yarns

 

  • 8 locations in India, one in Dubai, one in South Africa and one in Thailand

 

  • World’s 2nd largest producer of Nylon 6 tyre cord fabrics

 

  • World’s 2nd largest producer of belting fabrics

 

  • Exporting to over 60 countries

 

Technical Textile Business

 

Building on its dominant position in the domestic market, SRF enjoys a significant presence in the global market as well for all the three products under its Technical Textile Business - tyre reinforcements, belting fabrics and coated fabrics. Its tyre cord fabrics are used as reinforcement material for all categories of tyres – from bicycles to heavy commercial vehicles. The company’s Belting Fabrics are used as reinforcement material for manufacturing conveyour belts and its coated fabrics find applications as static and dynamic covers in various areas ranging from Agriculture to Defence applications.

 

Chemical Business

 

Subject is Chemicals Business includes the Fluorochemicals and Fluorospecialities business lines.

 

In the Fluorocarbon business space, subject has grown to become the undisputed domestic market leader in its core product line of Refrigerant gases, while exporting two-thirds of its production to world-class international buyers spread across 60 countries. Refrigerant gases are used for a variety of industrial, commercial and household applications such as refrigeration and air-conditioning, as a blowing agent for insulating foam, as a propellant for aerosols, in mobile air conditioning, and as a propellant in metered dose inhalers for pharmaceutical companies.

 

Subject has also been taking responsible initiatives under the guidelines of UNFCCC (United Nations Framework Convention on Climate Change) as a part of its Clean Development Mechanism (CDM).

 

Subject entered into the Fluorospecialties business in 2003-04 as a natural progression of its expertise in Fluorochemicals and its strong knowledge of halogen chemistry. This business is focused on addressing the need for complex organo-fluorine compounds.

 

Packaging Films Business

 

The company’s Packaging Film Business produces PET films, which are used in packaging of food, cosmetics, personal and health care products. The focus of the business is to move up the value chain of packaging films and towards this end, it is a supplier of metallised films and holographic films apart from plain and chemically treated polyester films.

 

Industrial Yarn Business

 

In the space of Industrial Yarn Business, the company is the dominant market leader in India holding more than 50% market share in multi filament twine and caters to major fishnet manufacturers in India.

 

Engineering Plastics Business

 

Equipped with fully integrated multi-locational facilities at Manali and Pantnagar for manufacturing of Nylon 6 Engineering plastics, the business has the capabilities to compound more than 150 grades of engineering plastics in Nylon 6, Nylon 66 and PBT with consistent quality. With a brand name of TUFNYL and TUFBET the business caters to the needs of different sectors like automotive, electrical, telecom, engineering, electronics and industrial sectors.

 

Key Credentials

 

Ø         2004 subject became the first tyre cord company in the world to win the prestigious Deming Application Prize for Total Quality Management

Ø       2004 subject developed processes to manufacture HFC 134a, HFC 32 (different varieties of new generation refrigerant gases) through in-house R and D efforts

Ø       2006 subject Chemical Business awarded with Responsible Care Logo by Indian Chemical Council (ICC), Mumbai

Ø       2006 subject conferred with the prestigious Greentech Safety Platinum Award

Ø       2007 subject conferred with the prestigious Greentech Environment Excellence Platinum Award

Ø       2006 Mr. Arun Bharat Ram, Chairman, conferred with the prestigious Jamshetji Tata Award from the Indian Society for Quality (ISQ)

Ø       2006 subject became the first company in India to set up a manufacturing facility to produce 134a, the new generation refrigerant

Ø       2008 subject holds a process patent for HFC 32, issued by the United States Patent and Trademark Office

Ø       2008 subject Chemicals Business received 'Commendation Certificate' under the prestigious CII ITC Sustainability Award in the Independent Category for 'Strong Commitment' towards sustainable development of the country .

Ø       2008 subject Chemicals Business plant at Bhiwadi (Rajasthan) became the 'Zero Water Discharge' unit.

Ø       2009 subject Chemicals Business again bagged the CII ITC Sustainability Award for 'Significant Achievement' for the year 2009.

Ø       2008 Mr. Arun Bharat Ram, Chairman, Chairman honoured with the prestigious Officer's Cross of the Order of Merit, presented by the Federal Government of Germany.

Ø       2008 and 2009 The Shri Ram School, New Delhi (established 1988), one of the schools run by SRF Foundation, rated as the country's most respected Day School in one of the most credible annual schools surveys conducted by Education World, a human development magazine published from India for two consecutive years.

 

SRF - Surrounds You In More Ways Than You Imagine

 

The Technical Textiles Business manufactures Nylon Tyre Cord Fabric, Belting Fabrics and Coated Fabrics. Nylon Tyre Cord Fabric is used as reinforcement for all kinds of tyres globally, ranging from the humble bicycle to the heavy commercial vehicles and even airplanes. As the 5th largest manufacturer of conveyor belting fabrics in the world, the products make life easier for businesses and individuals in many ways. For years, Mining and utility companies have been using conveyor belts that have been made by Belting Fabrics that they produce to streamline production. The Coated Fabrics find end usage in products like awnings, tarpaulins and canopies that are used on trucks and jeeps, covers that keep cricket pitches, tennis courts and sports fields dry when the rain gods spoil the show, smart sports kits and even shamianas used for wedding parties!

 

The Chemicals Business manufactures Refrigerant Gases used for a variety of industrial, commercial and household applications such as refrigeration and air conditioning. But they are also used as a solvent and propellant in metered dose inhalers for the treatment of asthma, and are a raw material for PTFE (Teflon) - the coating that makes kitchenware non-stick.

 

Pharma Chemicals Business, which manufactures intermediates/ advanced intermediates and provides contract research, custom synthesis and contract manufacturing services to the Pharma Industry.

 

The Packaging Films Business manufactures Biaxially Oriented Poly Ethylene Terephthalate (BOPET) or Polyester (PET) Film, predominantly used in Flexible Packaging Applications. PETLAR, the brand of PET films is used by some of India’s largest and most professional converters in making packaging material for a wide variety of fast moving consumer goods (FMCG) such as Soaps and Detergents, Tea, Shampoo Sachets, Packaged Wheat Flour etc. So whether it is the all pervasive shampoo sachet or a cake of soap made by some of India’s largest FMCG companies it is likely that PETLAR and it’s properties of excellent printability, strength and aroma retention are at work.

 

As you can see SRF does surround you in more ways than you can imagine. They now want to transform them-selves into a global, highly customer-focussed, knowledge-based organisation that delivers the highest quality products at the best prices to the global customers, which in turn will translate to strong returns to the employees and investors.

 

SRF – a value driven organization

 

As a group of companies, subject is a leading Indian player in Technical Textiles, Refrigerant Gases, Fishnet Twine, Engineering Plastics and has operating interests in Packaging Films and Pharma Intermediates. The company has adopted TQM as its management way and its tyrecord business (a part of Technical Textiles) has won the prestigious Deming Application Prize in 2004.

 

Subject is a value-driven organization, where respect and care for individuals, trust, creativity, innovation and equal opportunity without discrimination make the backbone of the people system. They value high standards of ethics, integrity and encourage employee contribution (non-monetary) towards society. Subject is an organisation wherein values find momentum through people’s policies that are practiced everyday.

 

With a high degree of employee engagement through the practice of value-based leadership, subject believes in creating the ‘extraordinary’ from the ‘ordinary’ through its practices, policies, systems and processes.

 

In a society where education has become a necessity, they at SRF have successfully linked individual growth to learning through their framework of Learning, Education and Training (LET). With a ‘Technologist Cadre’ meant to create strong technology experts leading their journey of technical excellence and technological innovation, they have achieved greater heights. Besides this, they have achieved world benchmarks for their plants, and developed their technology in the highly protected world of Chemical Industries.

 

Focusing highly on people’s development, they have a defined process for identification of individual development needs. The development needs arising out of the Development Dialogue process (their PMS equivalent), the strategic business needs and assessment of the competencies of an individual through the Development Centre are collated to prepare a development plan for each individual, called the ‘LET’ plan

 

They are initiating an Institution Building Programme to create and foster a community of the company. The process of Institution Building emanates from value-based leadership and tries to create an environment where people feel comfortable in expressing their feelings, opinions, views and suggestions without affecting the work or the organisation.

 

Growth and Expansion

 

Pursuing its aspiration to achieve global leadership by 2020, subject has embarked on a long and challenging journey of growth and expansion for all its businesses.

 

An investment of around Rs.10000 millions has already been made in the last four years mainly in adding and augmenting state-of-the-art production facilities. Today, several projects involving additional investment of around Rs. 6000.000 millions are in different stages of completion and many more are in the pipeline. As part of its growth strategy subject in the recent past has acquired two foreign entities, one in Thailand and the other one in South Africa under its Technical Textiles Business.

  

Roadmap

 

  • Subject will enter the world of Polyester Industrial Yarn (PIY) Business – becoming the first player in India to do so
  • The PIY business will enable subject to enter two new areas – tire cord fabric for radial tires and the reinforcement for V- cord belts
  • Subject is investing in setting up Wind Power projects to support development of renewable energy
  • Investment in R and D under Chemical Business will enable subject to acquire capabilities to develop new fluorochemical molecules required by pharma and agro giants
  • Investment in R and D under Technical Textiles Business will enable SRF to develop new products using latest technologies like Nano, Plasma and Microwave
  • Plans are on the anvil to develop a Chemical Complex
  • The Packaging Film Business will attain optimum economic size by doubling its capacity   

 

Latest approval(capex)

 

The subject Board in a meeting held on 25 July 2008 approved two capital expenditure projects at an aggregate investment of Rs.1150 millions. This includes a Polyester Polymerisation Chip Plant of 60,000 MT per annum capacity at an aggregate investment of Rs. 926.500 millions. The chip plant will be set up under subject is Packaging Film Business at Indore. The other project entails setting up Rs. 225.000 millions Fluorospeciality facility with a capacity of 400 tonnes per annum at Bhiwadi plant under Chemical Business.

 

Mergers and Acquisitions

 

Continuing with its commitment to become a global player subject has acquired two foreign companies during 2008, one in Thailand and the other one in South Africa. Thai based Thai Baroda Industries Limited (TBIL) is a tyre cord company and South Africa based Industex Technical Textiles (Pty) Limited is a manufacturer of belting fabrics.

 

Acquisition of the Thai plant will enable subject to emerge as the 2nd largest Nylon 6 tyre cord fabric manufacturer and 5th largest Tyre Reinforcement  manufacturer in the world.

 

Acquisition of the South African plant will improve subject is world ranking from the 3rd largest player to 2nd largest player in the Belting Fabrics Business.

 

  Fact Sheet – Thai Plant

 

Name of the Plant                                                                   Thai Baroda Industries Limited

Date of Definitive agreement                                                     May 27, 2008

Date of Acquisition                                                                  September 8, 2008

Product                                                                                  dipped nylon tyre cord fabric

Production capacity                                                                12,000 TPA

 

 

Fact Sheet – South African Plant

 

Name of the Plant                                                                   Industrial Technical Textiles (Pty) Limited

Name of Joint Entity                                                                SRF Industex Belting (Pty) Limited

Date of Definitive agreement                                                     July 14, 2008

Date of Acquisition                                                                  July 14, 2008

Product                                                                                  Belting Fabrics

Production capacity                                                                3,500 TPA

Modernisation and Expansion

 

SRF in the midst of implementing Rs. 6000.000 millions projects

  • wind power plants in Tamil Nadu commissioned
  • project on polyester industrial yarn in progress
  • investing in a second metalliser and a new film line
  • Several R and D projects underway to develop new products

 

Subject is in the midst of implementing several projects aggregating around Rs. 6000.000 millions. Many of these projects will begin to bear fruit within two years. The company successfully commissioned all the nine units of wind energy project to produce 15 MW of ‘green power’ in Tamil Nadu in the beginning of the year 2008-09. The project which was implemented at a total investment of around Rs. 900.000 millions, has been set up as a CDM initiative and the viability of this project is directly linked to its ability to generate carbon credits under the Kyoto Protocol.

 

Subject is also setting up a plant for polyester Industrial Yarn (PIY) within the premises of its existing plant at Gummidipoondi in Tamil Nadu at a total investment of around Rs. 2500.000 millions. The work on the project is progressing as per schedule and the plant will become operational in early 2009. With the setting up this plant, SRF will become a one stop shop for reinforcement fabric to the tyre companies in India.

 

With its entry into the new space for polyester yarn, subject will soon be entering two new areas – tyre cord fabric for radial tires and the reinforcement cords for V-Belts. The project assumes significance in view of the large investments already announced by the leading tyre manufacturers for enhancing radial capacity for passenger tyres.

 

The company is also in the midst of setting up a new 27,000 MT line for the manufacture of PET films under its Packaging Film Business (PFB) at a total investment of around Rs. 1650.000 millions. Earlier in 2005, the company had successfully commissioned a metallised film plant in October 2005, which is running to capacity. Looking at the possibilities in this segment, Subject has commenced a similar project at an investment of Rs. 160.000 millions for setting up another metallising machine at its plant in Indore. Metallising films are used in food packaging and the most visible products are the ones, used for packing dry snacks. The project of holographic film plant has been commissioned in December 2007 at an investment of approximately Rs. 100.000 millions. The product from this plant is used for luxury packaging segments.

 

The company also plans to invest around Rs. 1000.000 millions for its Chemical Business especially in the area of upgrading its R and D facilities, for developing new products under fluorospecialities and setting up of a new power plant at its Bhiwadi Plant.

 

Milestones

1970

Incorporation of Shriram Fibres Limited 

 

 

1974

Commissioning of Nylon Tyre Cord Fabric Plant at Manali, Chennai 

 

 

1977

Introduction of Fishnet Twines at Manali, Chennai 

 

 

1979

Introduction of Nylon Engineering Plastics at Manali, Chennai 

 

 

1983

Commissioning of Industrial Fabrics Plant at Tiruchirapalli 

 

 

1986

Commencement of Coated Fabrics project at Tiruchirapalli  Commencement of operations of SRF Finance Limited 

 

 

1989

Commencement of commercial production of fluorochemicals at Bhiwadi 

 

 

1990

Shriram Fibres becomes Subject 

 

 

1993

Company-wide adoption of Total Quality Management 

 

 

1995

Takeover of nylon tyre Cord plant of Ceat at Gwalior Commencement of Chloromethane production at Bhiwadi 

 

 

1996

Commencement of Tyre Cord Fabric production at SRF Overseas plant in Dubai 

 

 

1997

Divestment of SRF Finance Limited to GE Capital 

 

 

1999

Subject emerges as an independent entity from DCM Limited 

 

 

2000

Acquisition of Tyre Cord Fabric conversion facility of Dupont at Gummidipoondi, Chennai 

 

 

2001

Subject becomes one of the top ten suppliers of nylon tyre cord in the world Commencement of operations of SRF E-Biz, an e- procurement business 

 

 

2002

Polyester Films, Fishnet Twines and Engineering Plastics businesses spun off as a separate entity; SRF Polymers Limited 

 

 

2003

Flurochemicals Business at Bhiwadi awarded the prestigious OHSAS 18000 and SA 8000 certification for practicing environment safety 

 

 

2004

Commencement of the Packaging Film Plant at Indore 


Commencement of Pharma Chemicals Business at Bhiwadi 


Deming Application Prize awarded to the Industrial


Synthetics Business 

 

 

2005

Subject becomes one of the top 3 manufacturer of belting fabrics in the world 

 

 

2008

Subject acquires a Thai based Thai Baroda Industries Limited (TBIL) becoming the 2nd largest Nylon 6 tyre cord manufacturer in the world 

 

 

2008

Subject acquires Industex Technical Textiles (Pty) Limited, a South African company manufacturing belting fabrics. Post acquisition the South African company is known as SRF Industex Belting (Pty) Limited


With this acquisition subject improves its world ranking from 3rd African company manufacturing belting fabrics. Post largest to the 2nd largest player in the area of belting fabrics business

 

 

2009

Subject purchases two businesses of SRF Polymers (SRFP), the Engineering Plastics Business (EPB) and the Industrial Yarn Business (IYB)

 

PERFORMANCE OVERVIEW:

 

The company’s PBIDT during the first quarter of 2007-08 was 20.7% lower at Rs. 1154.000 millions against Rs. 1455.000 millions during CPLY and its PBT at Rs. 812.000 millions was down by 32.3% over Rs.1200.000 millions recorded during CPLY. The company’s cash profit at Rs. 849.000 millions during April-June’07 was lower by 19% against Rs. 1054.000 millions recorded during CPLY. Subject is earnings per share (EPS) for the first quarter of the current financial year was Rs. 8.250 millions while Cash EPS was Rs. 12.510 millions for the quarter ended on 30th June 2007. SRF brought its interest charges down to the level of Rs. 72.600 millions against Rs. 83.600 millions recorded at the end of Q1 last year.

 

CAPEX PLAN

 

Subject board also approved four capital expenditure proposals at the total investment of approximately Rs. 2700.000 millions in a meeting held today. One of the major facilities will be the installation of the Polyester Industrial Yarn Spinning Unit with downstream facilities for usage in Technical Textiles at a total investment of approx Rs. 2500.000 millions. This will enable subject, a leading tyre cord and belting fabric producer, to leverage the growing demand for belting fabrics on account of spurt in the user industries in infrastructure and mining globally. Besides, subject will also be able to participate in fabric business for radial tyres for the new generation automobiles.

 

Responding to a query on the prospect of the expansion projects in Technical Textiles Business, Mr. Ashish Bharat Ram, said, “They believe that investing in Polyester Industrial yarn will open new business horizon for them in an exciting new area.”

 

Installation of a second Metalliser Project for its Packaging Films Business at an investment of approx Rs. 160 .000 millions is another important project that was approved today. The metallisation of the packaging films, which are primarily used in packaging of food, cosmetics, personal and health care products, will improve the films’ quality mainly in terms of barrier property. When completed, the project will increase subject is market share in the growing market of the quality Mettalised Films in India and abroad. Currently, SRF is the largest exporter of polyester Metallised Film from India.

 

PRESS RELEASE:

 

SRF posts 23% growth in Q4 profit at Rs. 1360.000 Millions

 

• SRF standalone Q4 net sales at Rs. 8460.000 Millions, a growth of 25%

• SRF standalone Q4 EBIDTA at Rs. 2460.000 Millions, a growth of 13%

• FY consolidated PAT at Rs. 4840.000 Millions , a growth of 49%

• FY consolidated net sales at Rs. 33910.000 Millions, a growth of 36%

• FY consolidated PBT at Rs. 6870.000 Millions, a growth of 44%

 

Gurgaon, 9th May 2011: SRF Limited, a multi-business entity engaged in the manufacture of chemical based industrial intermediates, reported a growth of 23% in its net profit after tax (PAT) at Rs. 1360.000 Millions for the fourth quarter of 2010-11. SRF’s net sales during Q4 improved by 25% to Rs. 8460.000 Millions as against Rs. 6760.000 Millions over the corresponding period last year (CPLY). The topline growth was attributable to higher sales mainly due to full year impact of doubling of capacity for BOPET film line and commissioning of new units such as Polyester Industrial Yarn and Laminated Fabrics. The company’s audited results were taken on record by the Board of Directors this afternoon.

 

Reflecting on the results, Ashish Bharat Ram, Managing Director, SRF, said, “It has been a good year for the company as a whole. The Packaging Films Business has had an outstanding year but going forward the margins in this business are likely to come under pressure due to changed business environment. We are hopeful that our other businesses will help us bridge the gap.”

 

Annual Financials

 

Riding on the overall improvement in its business performance, SRF consolidated recorded 49% growth in the full year PAT at Rs. 4840.000 Millions for the fiscal ended on March 2011. The annual profit of SRF consolidated included a gain of around Rs. 330.000 Millions on account of gain from exchange currency fluctuation during 2010-11.

 

The net sales of SRF consolidated grew by 36%, from Rs. 24990.000 Millions to Rs. 33910.000 Millions during 2010-11. In particular, the company’s Packaging Film Business recorded 159% growth in segment revenue at Rs. 8710.000 Millions during the period. The segment revenue of the company’s Chemicals and Polymers Business increased by 14% at Rs. 7470.000 Millions and SRF’s consolidated Technical Textiles Business recorded a 22% growth in segment revenue at Rs. 18610.000 Millions during the year.

 

FINANCIAL RATIOS

 

The improved financial performance of SRF standalone resulted in an improvement in multiple performance parameters. The Debt-Equity ratio improved from 0.78 to 0.51 during the year and the Earning Per Share (EPS) of the company improved from previous year’s figure of Rs. 51.14 to Rs. 79.90 per share for 2010-11. The Net Debt to Equity as on 31 March 2011 has improved to 0.39 times as against 0.72 times as on 31 March 2010.

 

Dividend

 

Earlier, SRF had paid two interim dividends, each of Rs. 7 per share aggregating to Rs. 14 per share during the year. In today’s meeting, the board recommended NIL final dividend for the year 2010-11.

 

Buyback

 

Following the Board approval on 26th February 2011, SRF commenced buyback of the fully paid up equity shares from the open market through the stock exchanges on 6th April 2011. An aggregate of 58,851 equity shares at an average market price of Rs. 334.38 per share were bought back absorbing a total amount of Rs. 19.700 Millions till 6th May 2011.

 

Capexes

 

The SRF Board had earlier during the year approved several projects to be set up at a total investment of around Rs. 15000.000 Millions. Some of the important projects approved during the year included setting up of the company’s second HFC-134a plant, Flexible Multipurpose Plant, Mutipurpose Chemical Plant, Intermediate Speciality Plant and Captive Power Plant at the Dahej Chemical Complex in Gujarat and Capacity Enhancement of Coated Fabrics at a new plant in Gummidipoondi. The Board had also approved setting up of two overseas plants for manufacturing Biaxially Oriented Polypropylene (BOPP) films and Biaxially Oriented Poly Ethylene Terephthalate (BOPET) films.

 

SRF Q1 revenue grows by 24%

 

Gurgaon, 23rd July 2010: Aided by an overall improvement in the performance of its businesses, SRF, a multi-business entity engaged in the manufacture of chemical based industrial intermediates, posted a growth of 24% in its revenue at Rs. 6190.000 Millions during the first quarter of 2010-11 compared to Rs. 4980.000 Millions recorded during the corresponding period last year (CPLY). The company’s net profit after tax (PAT), however, declined by 41% at Rs. 550.000 Millions during theperiod. The foreign currency gains were significantly lower as compared to the CPLY. The unaudited financial results of SRF were taken on record by SRF’s Board in a meeting held today.

 

PERFORMANCE OVERVIEW

 

The surge in SRF’s revenue was mainly attributable to overall improvement in the operational efficiencies across the businesses, robust demand and enhanced capacity from the successful commissioning of some of the new units during the last financial year. SRF’s largest business segment, the Technical Textiles Business (TTB) reported an increase of 32% in sales revenue, from Rs. 2560.000 Millions in first quarter of 2009-10 to Rs. 3370.000 Millions in 2010-11. The net sales of the tyre cords from TTB increased by 39% from Rs. 2120.000 Millions in Apr-June 2009 to Rs. 2950.000 Millions during the same period of the current year.

 

Supported by the doubling of production capacity with the commissioning of a second line of BOPET film at Indore, the sales of the PET films by Packaging Films Business increased by 131% from Rs. 670.000 Millions to Rs. 1550.000 Millions during the same period.

 

The sales of refrigerant gases were higher by 80% during the period. The EBIDTA for the fluorospecialities, which is driven by the company’s R and D expertise in the area of fluorine chemistry for pharma and agro industries, also doubled during the period.

 

SRF declares record Q4 profit at Rs. 1110.000 Millions

 

  • SRF stand alone Q4 net sales at Rs. 6760.000 Millions , a growth of 66%
  • SRF stand alone Q4 EBIDTA at Rs. 2180.000 Millions, a growth of 173%
  • FY consolidated PAT at all time high at Rs. 3240.000 Millions, a growth of 132%
  • FY consolidated net sales at Rs. 24990.000 Millions, a growth of 24%
  • Board approves capex proposal of apprx. Rs. 1430.000 Millions for expansion of Coated Fabrics

 

Gurgaon, 7th May 2010: Aided by the economic upturn, SRF Limited, a multi-business entity engaged in the manufacture of chemical based industrial intermediates, posted an all time high net profit after tax (PAT) of Rs. 1110.000 Millions for the fourth quarter of 2009-10, recording a 423% increase over the corresponding period last year (CPLY).

 

SRF’s revenue during Q4 improved by 66% to Rs. 6760.000 Millions as against Rs. 4080.000 Millions over CPLY. The company’s audited results were taken on record by the Board of Directors this afternoon.

 

The surge in the company’s net profit for the fourth quarter, which included a gain of around Rs. 110.000 Millions on account of exchange currency fluctuation, was helped by robust demand and higher sales. The successful commissioning of the second Biaxially Oriented Polyester (BOPET) film line under its packaging film business, during the third quarter of the financial year also contributed to the improved performance of the company.

 

Reflecting on the results, Ashish Bharat Ram, Managing Director, SRF, said, “We have had a very good year where all our businesses have performed well, especially the Technical Textiles Business which has posted excellent numbers. Going forward we remain cautiously optimistic of the year ahead. While we believe that the domestic growth story will remain intact, uncertainties on the global front remain. The commodity price boom could put some pressure on margins.”

 

Annual Financials

 

An all round improvement in operations across the businesses enabled SRF consolidated to post a record PAT of Rs. 3240.000 Millions for the whole year 2009-10, an increase of 132% over CPLY. The consolidated net sales grew by 24%, from Rs. 20230.000 Millions to Rs. 24990.000 Millions during the same period. In particular, SRF’s consolidated Technical Textiles Business, which accounts for more than 50% of the company’s revenue, recorded a 1180% growth in its profit from operations at Rs. 2290.000 Millions during the year.

 

The improved financial performance of the company resulted in an improvement in multiple performance parameters such as debt-equity ratio (from 0.96 to 0.78) and debt-EBIDTA ratio (from 2.23 to 1.55).

 

Capex Approval

 

The board also approved a capex proposal to enhance the capacity of Coated Fabrics by 170 lakh square metre per annum at SRF’s existing plant location in Gummidipoondi at a total investment of approximately Rs. 1430.000 Millions. The new facility when completed will enable SRF to offer new products such as lacquered tarpaulins and

fabrics for tensile structures and awnings as well as Poly Urethane (PU) Coated Fabrics which are emerging applications in India.

 

Projects Commissioned

 

The Laminated Fabric Plant at Kashipur was commissioned and capitalised during Q4 of the current financial year. Besides the second BOPET film line in Indore, the Company also commissioned and capitalised two other projects; manufacturing facilities for Polyester Industrial Yarn and Dipping Facilities at its existing plant location in Gummidipoondi and facilities for Fluorospecialities at Bhiwadi, during 2009-10.

 

Dividend

 

Earlier, SRF had paid two interim dividends, each at the value of Rs. 7 per share aggregating to Rs. 14 per share during the year. In today’s meeting, the board recommended NIL final dividend for the year 2009-10.

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

The market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

The Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.42

UK Pound

1

Rs.70.95

Euro

1

Rs.63.63

 

 

 

 

 

 

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--MARGINS

-5~5

----

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

64

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.