MIRA
INFORM REPORT
|
Report Date : |
06.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
SRF LIMITED |
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Registered
Office : |
C-8, Commercial Complex, Safdarjung Development Area, New Delhi –
110016 |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
09.01.1970 |
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Com. Reg. No.: |
55-005197 |
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Capital
Investment / Paid-up Capital : |
Rs. 584.356 Millions |
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CIN No.: [Company Identification
No.] |
L18101DL1970PLC005197 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
DELS33266C |
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PAN No.: [Permanent Account No.] |
AAACS0206P |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturing and Distribution of a wide range of products in
Technical Textiles, Chemicals and Packing Films Industries. |
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No. of Employees
: |
2000 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (62) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 80500000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having a good track record. There appears slight dip in profitability in the during 2013. However, general financial strength of the company seems to be strong.
Liquidity position of the company appears to be good. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitment. The company can be considered for normal business dealings at usual trade
terms and condition. |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw
a change of government in countries like Tunisia, Egypt, Libya and Vietnam.
Once powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years respectively.
By 2020, emerging Asia will become the world’s largest consuming block,
overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain fragile.
The Indian economy demonstrated remarkable resilience in the initial years of
the contagion but finally lost ground last year. GDP growth slowed down.
Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION PARTED BY (GENERAL DETAILS)
|
Name : |
Mr. Sri Ram |
|
Designation : |
Accounts Departments |
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Contact No.: |
91-11-26857141 |
|
Date : |
03.08.2013 |
LOCATIONS
|
Registered Office : |
C-8, Commercial Complex, Safdarjung Development Area, New Delhi –
110016, India |
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Tel. No.: |
91-11-26857141 |
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Fax No.: |
91-11-26510428 |
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E-Mail : |
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Website : |
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Corporate Office : |
Block – C, Sector – 45, Gurgaon -122003, Haryana, India |
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Tel. No.: |
91-124-4354400 |
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Fax No.: |
91-124-4354500 |
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E-Mail : |
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TECHNICAL TEXTILES BUSINESS |
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Factory 1 : |
Manali
Industrial Area, Manali, Chennai – 600068, Tamilnadu, India |
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Tel. No.: |
91-44-25946000 |
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Fax No.: |
91-44-25941159 |
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Factory 2 : |
Industrial Area,
Malanpur, District Bhind – 477116, Madhya Pradesh, India |
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Tel. No.: |
91-7539-283164 |
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Fax No.: |
91-7539-283427 |
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Factory 3 : |
Plot No 1,
SIPCOT Industrial Area Complex, Gummidipoondi, District Thiruvallur – 601201,
Tamilnadu, India |
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Tel. No.: |
91-44-27923212-22 |
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Fax No.: |
91-44-27922718/
27922888 |
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Factory 4 : |
Viralimalai,
District Pudukottai – 621316, Tamilnadu, India |
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Tel. No.: |
91-4339-220808 |
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Fax No.: |
91-4339-220284 |
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Factory 5 : |
Plot No. 12, Rampura, Ramnagar Road,
District Udham Singh Nagar, Kashipur –
244713, Uttaranchal, India. |
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Tel. No.: |
91-5947-275604/
05 |
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Fax No.: |
91-5947-275606 |
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INTERNATIONAL
OPERATIONS |
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Factory 7 : |
SRF Overseas Limited P.O. Box 61101,
Jebel Ali Free Zone, Dubai, U.A.E. |
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Tel. No.: |
+97-14-8836717 |
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Fax No.: |
+97-14-8838341 |
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Factory 8 : |
SRF Industex Belting (Pty) Limited PO Box 4038, Korsten, Port Elizabeth, 6014, Republic of South Africa |
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Tel. No.: |
+2741-4068700 |
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Fax No.: |
+2741-4511558/ 4514012 |
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Factory 9 : |
SRF Technical Textiles (Thailand) Limited 3, Map Ta Phut Industrial Estate, I-1 Road, Amphur Muang, P.O. Box 61, Rayong Province, Thailand |
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Tel. No.: |
+66-(38)-683600-7 |
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Fax No.: |
+66-(38)-683609 |
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CHEMICALS AND POLYMERS BUSINESS |
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Factory 10 : |
Village and PO - Jhiwana, Tehsil Tijara, District Alwar – 301018,
Rajasthan, India |
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Tel. No.: |
91-1493-220288/
517838/ 517839 |
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Fax No.: |
91-1493-221125/ 517837 |
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Manali Industrial Area, Manali, Chennai - 600068, Tamilnadu, India |
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Plot No. 14 C, Sector 9, IIE Pantnagar, District Udham Singh Nagar -
263153, Uttarakhand, India |
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Factory 11 : |
D II/I GIDC, PCPIR,
GIDC, Phase II, Tal Vagra, Village Dahej, District Bharuch - 392130, Gujarat,
India |
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PACKAGING FILMS BUSINESS |
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Factory 12 : |
Plot No 12,
Rampura, Ramnagar Road, District Udham Singh Nagar, Kashipur – 244713,
Uttaranchal, India |
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Tel. No.: |
91-5947-275604 |
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Fax No.: |
91-5947-275606 |
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Factory 13 : |
Plot No. C –
1-8, C-21-30, Sector – 3, Indore Special Economic Zone, District Dhar,
Pitampur – 454775, Madhya Pradesh, India |
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Tel. No.: |
91-7292-400526 |
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Fax No.: |
91-7292-401745 |
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ENGINEERING
PLASTICS BUSINESS |
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Factory 14 : |
Manali Industrial Area,
Manali, Chennai - 600068,
Tamilnadu, India |
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Tel. No.: |
91-44-25941073 |
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Fax No.: |
91-44-25943073 |
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Factory 15 : |
Plot No. 14 C, Sector 9,
Industrial Estate, Pant Nagar, District U S Nagar – 244713, Uttaranchal, India |
|
Fax No.: |
91-5944-250098 |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Arun Bharat Ram |
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Designation : |
Chairman |
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Date of Birth/Age : |
72 Years |
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Qualification : |
B.SC (Indl. Engineering) |
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Experience : |
46 Years |
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Name : |
Mr. Ashish Bharat Ram |
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Designation : |
Managing Director |
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Date of Birth/Age : |
44 Years |
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Qualification : |
MBA |
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Experience : |
22 Years |
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Name : |
Mr. Kartikeya Bharat Ram |
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Designation : |
Deputy Managing Director |
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Date of Birth/Age : |
42 Years |
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Qualification : |
MBA |
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Experience : |
19 Years |
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Name : |
Mr. K. Ravichandra |
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Designation : |
Director (Safety and Environment) |
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Name : |
Mr. Vellayan Subbiah |
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Designation : |
Director |
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Name : |
Mr. Vinayak Chatterjee |
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Designation : |
Director |
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Name : |
Mr. L Lakshman |
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Designation : |
Director |
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Name : |
Mr. Tejpreet S Chopra |
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Designation : |
Director |
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Name : |
Mr. Pramod B Bhasin |
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Designation : |
Director |
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KEY EXECUTIVES
|
Name : |
Mr. Anoop K. Joshi |
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Date of Birth/Age : |
52 Years |
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Designation : |
Company Secretary |
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Qualification : |
FCA, FCS |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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|
29735070 |
51.78 |
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|
29735070 |
51.78 |
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Total shareholding of Promoter and Promoter Group (A) |
29735070 |
51.78 |
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(B) Public Shareholding |
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|
5082250 |
8.85 |
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|
622415 |
1.08 |
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|
1734154 |
3.02 |
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|
4062479 |
7.07 |
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|
11501298 |
20.03 |
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|
1970684 |
3.43 |
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|
11713322 |
20.40 |
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|
2044805 |
3.56 |
|
|
455321 |
0.79 |
|
|
417942 |
0.73 |
|
|
24919 |
0.04 |
|
|
12410 |
0.02 |
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|
50 |
0.00 |
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|
16184132 |
28.19 |
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Total Public shareholding (B) |
27685430 |
48.22 |
|
Total (A)+(B) |
57420500 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
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|
0 |
0.00 |
|
Total (A)+(B)+(C) |
57420500 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Distribution of a wide range of products in
Technical Textiles, Chemicals and Packing Films Industries. |
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Products : |
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Terms : |
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Selling : |
L/C and Credit |
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Purchasing : |
L/C and Credit |
PRODUCTION STATUSAS ON 31.03.2013
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Synthetic Filament Yarn including Industrial Yarn / Tyre Cord @/
Twine@@ |
MT |
68040 |
11540.32 |
|
Nylon Tyre Cord Fabric / Industrial Yarn Fabric / Polyester Tyre Cord
Fabric* |
MT |
71384 |
49400.78 |
|
Laminated Fabric |
Lakhs SQM |
900 |
559.32 |
|
Nylon / PBT / PC Compounding Chips@@ |
MT |
14500 |
9042.40 |
|
Fluorocarbon Refrigerant Gases |
MT |
57500 |
11632.90 |
|
HFC 134a |
MT |
5000 |
2852.70 |
|
Hydrofluoric Acid (Anhydrous)@ |
MT |
12000 |
-- |
|
Gypsum (By product) |
MT |
44550 |
36452.30 |
|
Hydrochloric Acid (By Product) |
MT |
77220 |
6659.22 |
|
Chloromethanes@ |
MT |
40000 |
24174.42 |
|
Fluorospecialities Chemicals |
MT |
12005 |
2379.12 |
|
Packaging Films |
MT |
59500 |
54003.89 |
Installed capacity
is as certified by management
@ Excludes captive
consumption
* Includes Nil
(Previous Year – 1068.98 MT) of nylon tyre cord fabric / industrial yarn fabric
produced outside the Company by the Company’s conversion contractors
@@ Includes 15.20
MT (Previous Year – 106.55 MT) of nylon compounding chips produced outside the
Company by the Company’s conversion contractors.
GENERAL INFORMATION
|
Customers : |
End Users and OEM’s |
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No. of Employees : |
2000 (Approximately) |
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Bankers : |
Ø ICICI Bank Ø State Bank of
India Ø State Bank of
Patiala Ø Standard
Chartered Bank Ø Citibank NA Ø Yes Bank Limited Ø HDFC Bank Ø The Royal Bank
of Scotland Ø Kotak Mahindra
Bank Ø Development Bank
of Singapore |
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Facilities : |
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Details of security of the above secured loans:
Such
hypothecation and equitable mortgage rank pari-passu between term loans from banks
/ others (save and except hypothecation of moveable assets at Dahej in the
State of Gujarat in favour of a bank as at 1(ii) above). |
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TERMS OF
REPAYMENT OF LOANS LONG TERM BORROWINGS
Short term
borrowings Short term
borrowings are payable in one installment within one year with interest rates
LIBOR plus interest rate spread ranging from 0.70% to 3.25% |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Joint Venture : |
Ø Jingde
Yangtze-Ganga Fluorine Chemical Company Limited (upto February 26, 2011) |
|
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|
Enterprises over
which have significant influence : |
Ø KAMA Holdings
Limited* Ø Bhairav Farms
Private Limited* Ø Narmada Farms
Private Limited* Ø SRF Polymers
Investments Limited* Ø KAMA Realty
(Delhi) Limited* Ø Shri Educare
Limited Ø Shri Educare
Maldives Private Limited Ø SRF Foundation Ø Karm Farms
Private Limited* Ø Srishti Westend
Greens Farms Private Limited* |
|
|
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|
Subsidiaries : |
Ø SRF Overseas
Limited Ø SRF
Transnational Holdings Limited Ø SRF Properties
Limited Ø SRF Holiday Home
Limited Ø SRF Energy
Limited Ø SRF Fluorochemicals
Limited Ø SRF Fluor
Private Limited Ø SRF Global BV Ø SRF Tech Textile
BV (upto August 31, 2011) Ø SRF Industries
(Thailand) Limited (formerly SRF Technical Textiles (Thailand) Limited) Ø SRF Industex
Belting (Pty) Limited Ø SRF Nitol
Bangladesh Limited Ø SRF Flexipak
(South Africa) (Pty) Limited |
CAPITAL STRUCTURE
As on: 31.03.2013
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 |
|
|
|
|
|
|
61477255 |
Equity Shares |
Rs.10/- each |
Rs.614.773 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
57420500* |
Equity Shares |
Rs.10/- each |
Rs.574.205 Millions |
|
|
Add: Forfeited shares - Amount originally paid up |
|
Rs. 10.151 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 584.356
Millions |
* 29043134 equity shares held by KAMA
Holdings Limited, the holding company.
b) Reconciliation of equity shares
|
|
Number of shares |
Rs. in millions |
|
As at April 1, 2011 |
60503580 |
605.036 |
|
Less: Shares bought back during the year |
3083080 |
30.831 |
|
As at March 31, 2012 |
60503580 |
605.036 |
|
Add: Movement during the year |
-- |
-- |
|
As at March 31, 2013 |
57420500 |
574.205 |
The shares bought back in the current year were cancelled / extinguished
during the year.
c) Shareholders holding more than 5% shares in the Company
|
Name of the shareholder |
Number of shares |
% of total |
|
|
|
|
|
KAMA Holdings Limited |
29043134 |
50.58 |
|
|
|
|
d) The Company has bought back 10464505 equity shares in aggregate in the last five financial years.
e) Terms/ rights attached to equity shares
The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board may from time to time pay to the members such interim dividends as appear to it to be justified by the profits of the Company.
During the year ended March 31, 2013, the amount of interim dividend recognized as distributions to equity shareholders was Rs.10 per share (Previous Year – Rs.14 per share).
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
584.356 |
584.356 |
615.241 |
|
(b) Reserves & Surplus |
19540.768 |
17882.650 |
15784.812 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
20125.124 |
18467.006 |
16400.053 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
5766.234 |
5793.068 |
4347.204 |
|
(b) Deferred tax liabilities (Net) |
2548.779 |
2170.930 |
2094.224 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
118.894 |
104.038 |
103.421 |
|
Total Non-current Liabilities (3) |
8433.907 |
8068.036 |
6544.849 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
2416.311 |
2944.297 |
1307.932 |
|
(b) Trade payables |
4309.917 |
4448.887 |
4840.403 |
|
(c) Other current
liabilities |
3234.559 |
2180.807 |
3219.327 |
|
(d) Short-term provisions |
73.541 |
134.054 |
90.721 |
|
Total Current Liabilities (4) |
10034.328 |
9708.045 |
9458.383 |
|
|
|
|
|
|
TOTAL |
38593.359 |
36243.087 |
32403.285 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
21651.735 |
18403.520 |
17841.323 |
|
(ii) Intangible Assets |
178.050 |
204.296 |
222.386 |
|
(iii) Capital
work-in-progress |
2196.929 |
4142.646 |
1130.706 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
926.122 |
922.972 |
919.480 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1206.852 |
951.665 |
590.906 |
|
(e) Other Non-current assets |
23.015 |
30.437 |
13.569 |
|
Total Non-Current Assets |
26182.703 |
24655.536 |
20718.370 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
1351.306 |
1264.027 |
1099.507 |
|
(b) Inventories |
4959.098 |
4121.961 |
4387.299 |
|
(c) Trade receivables |
4525.678 |
4080.289 |
4417.849 |
|
(d) Cash and cash
equivalents |
769.642 |
1292.067 |
638.553 |
|
(e) Short-term loans
and advances |
797.247 |
821.774 |
1120.088 |
|
(f) Other current
assets |
7.685 |
7.433 |
21.619 |
|
Total Current Assets |
12410.656 |
11587.551 |
11684.915 |
|
|
|
|
|
|
TOTAL |
38593.359 |
36243.087 |
32403.285 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
33225.443 |
35272.183 |
30632.767 |
|
|
|
Other Income |
437.534 |
310.581 |
433.737 |
|
|
|
TOTAL |
33662.977 |
35582.764 |
31066.504 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
19137.355 |
20211.628 |
16359.043 |
|
|
|
Purchases of traded goods |
90.170 |
64.016 |
146.391 |
|
|
|
(Increase)\Decrease in inventories of finished goods, stock-in-process
and traded goods |
(224.961) |
(65.239) |
(448.040) |
|
|
|
Employee benefits expenses |
2024.352 |
1640.487 |
1506.242 |
|
|
|
Other expenses |
6420.892 |
5415.499 |
4434.080 |
|
|
|
TOTAL |
27447.808 |
27266.391 |
21997.716 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
6215.169 |
8316.373 |
9068.788 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
846.483 |
1040.932 |
776.921 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
5368.686 |
7275.441 |
8291.867 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
1842.759 |
1616.807 |
1517.081 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
3525.927 |
5658.634 |
6774.786 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
940.857 |
1784.834 |
1940.365 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
2585.070 |
3873.800 |
4834.421 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
11040.321 |
9315.621 |
6271.400 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend |
574.200 |
812.300 |
847.100 |
|
|
|
Corporate Dividend Tax |
93.200 |
131.800 |
140.600 |
|
|
|
Transfer to General Reserve |
258.500 |
400.000 |
500.000 |
|
|
|
Debenture redemption reserve |
750.000 |
750.000 |
302.500 |
|
|
|
Transfer to Special Economic Zone
reinvestment allowance reserve |
0.000 |
55.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
11949.491 |
11040.321 |
9315.621 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on FOB Value |
10835.460 |
12203.695 |
7928.559 |
|
|
|
Interest |
4.286 |
1.264 |
0.092 |
|
|
|
Profit on sale of investment in subsidiary / others |
0.000 |
4.284 |
28.515 |
|
|
|
Service fee including recovery of actual expenses incurred |
45.654 |
32.611 |
28.180 |
|
|
TOTAL EARNINGS |
10885.400 |
12241.854 |
7985.346 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
8490.562 |
6431.004 |
6691.076 |
|
|
|
Stores & Spares |
107.696 |
214.827 |
164.048 |
|
|
|
Capital Goods |
279.059 |
403.584 |
504.396 |
|
|
TOTAL IMPORTS |
8877.317 |
7049.415 |
7359.52 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
45.02 |
65.55 |
|
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2013 |
|
Audited / UnAudited |
UnAudited |
|
Net Sales |
8249.100 |
|
Total Expenditure |
7136.200 |
|
PBIDT (Excl OI) |
1112.900 |
|
Other Income |
87.300 |
|
Operating Profit |
1200.200 |
|
Interest |
202.700 |
|
Exceptional Items |
0.000 |
|
PBDT |
997.500 |
|
Depreciation |
483.900 |
|
Profit Before Tax |
513.600 |
|
Tax |
75.500 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
438.100 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
438.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
7.68
|
10.88 |
15.56 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.61
|
16.04 |
22.11 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.30
|
18.74 |
22.77 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.31 |
0.41 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.41
|
0.47 |
0.34 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.24
|
1.19 |
1.23 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by
Info Agents |
Available
in Report (Yes / No) |
|
1] |
Year of
Establishment |
Yes |
|
2] |
Locality of
the firm |
Yes |
|
3] |
Constitutions
of the firm |
Yes |
|
4] |
Premises
details |
No |
|
5] |
Type of
Business |
Yes |
|
6] |
Line of
Business |
Yes |
|
7] |
Promoter's
background |
Yes |
|
8] |
No. of
employees |
Yes |
|
9] |
Name of
person contacted |
Yes |
|
10] |
Designation
of contact person |
Yes |
|
11] |
Turnover of firm
for last three years |
Yes |
|
12] |
Profitability
for last three years |
Yes |
|
13] |
Reasons for
variation <> 20% |
---------------------- |
|
14] |
Estimation
for coming financial year |
No |
|
15] |
Capital in
the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major
suppliers |
No |
|
18] |
Major
customers |
No |
|
19] |
Payments
terms |
Yes |
|
20] |
Export /
Import details (if applicable) |
No |
|
21] |
Market
information |
---------------------- |
|
22] |
Litigations that
the firm / promoter involved in |
---------------------- |
|
23] |
Banking
Details |
Yes |
|
24] |
Banking
facility details |
Yes |
|
25] |
Conduct of
the banking account |
---------------------- |
|
26] |
Buyer visit
details |
---------------------- |
|
27] |
Financials,
if provided |
Yes |
|
28] |
Incorporation
details, if applicable |
Yes |
|
29] |
Last accounts
filed at ROC |
Yes |
|
30] |
Major
Shareholders, if available |
Yes |
|
31] |
Date of Birth
of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No
of Proprietor/Partner/Director, if available |
No |
|
34] |
External
Agency Rating, if available |
No |
UNSECURED LOAN:
|
|
31.03.2013 [Rs.
in Millions] |
31.03.2012 [Rs.
in Millions] |
|
Long Term
Borrowing |
|
|
|
1500 (Previous
year - 1500), 10.60%, listed, unsecured redeemable non-convertible debentures of Rs.1.000 million each |
1500.000 |
1500.000 |
|
Term loans from banks |
142.865 |
0.000 |
|
Less: Current maturities of long term borrowings 1500, 10.60%,
listed, unsecured redeemable non-convertible debentures of Rs. 1.000 million
each |
(1500.000) |
0.000 |
|
|
|
|
|
Short Term
Borrowing |
|
|
|
Term loans from banks* |
1791.335 |
1907.534 |
|
Others* |
0.000 |
0.000 |
|
|
|
|
|
Total |
1934.200 |
3407.534 |
* Includes Nil (Previous Year - Nil) for Commercial Paper issued by the
Company. The Maximum amount due during the year is Rs.1000.000 millions
(Previous Year - Nil)
INDEX CHARGES:
|
S No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
|
|
|
|
|
|
|
|
1 |
10416615 |
03/04/2013 |
1,087,770,000.00 |
Standard Chartered Bank |
(Acting as an Security Agent) C D U,
Narain Manzil, 23,Barakhamba Road, New Delhi, Delhi - 110001, India |
B72248024 |
|
2 |
10359022 |
08/10/2012 * |
300,000,000.00 |
DBS Bank Ltd |
Upper Ground Floor, Birla Tower, 25 Barakhamba Road, New Delhi, Delhi - 110001,
India |
B61411591 |
|
3 |
10359024 |
08/10/2012 * |
1,000,000,000.00 |
DBS Bank Ltd |
Upper Ground Floor, Birla Tower, 25 Barakhamba Road, New Delhi, Delhi - 110001,
India |
B61412284 |
|
4 |
10359025 |
08/10/2012 * |
1,250,000,000.00 |
DBS Bank Ltd |
Upper Ground Floor, Birla Tower, 25 Barakhamba Road, New Delhi, Delhi - 110001,
India |
B61412615 |
|
5 |
10348917 |
08/10/2012 * |
480,000,000.00 |
State Bank of India |
3rd Floor, Sigapi Achi Building, Rukmini
Lakshmi pathy Road, Egmore, Chennai, Tamil Nadu - 600008, |
B61060182 |
|
6 |
10269304 |
06/08/2012 * |
1,104,800,000.00 |
State Bank of India |
3rd Floor, Sigapi Achi Building, Rukmini Lakshmi
pathy Road, Egmore, Chennai, Tamil Nadu - 600008, |
B45274453 |
|
7 |
10204921 |
06/08/2012 * |
380,000,000.00 |
State Bank of India |
3rd Floor, Sigapi Achi Building, Rukmini
Lakshmi pathy Road, Egmore, Chennai, Tamil Nadu - 600008, |
B45374022 |
|
8 |
10191768 |
06/08/2012 * |
500,000,000.00 |
YES BANK LTD. |
9th floor, Nehru centre, discovery of
India, Dr. Annie Besant Road, Worli, Mumbai, Maharashtra - 400018, India |
B45130002 |
|
9 |
10191424 |
06/08/2012 * |
500,000,000.00 |
HDFC BANK LTD. |
HDFC Bank House, Senapati Bapat Marg,
Lower Parel |
B45493616 |
|
10 |
10160329 |
28/05/2009 |
15,000,000.00 |
STANDARD CHARTERED BANK |
Credit Risk Control, Narain Manzil, 23
Barakhamba Road, New Delhi, Delhi - 110001, India |
A63267827 |
|
11 |
10160330 |
28/05/2009 |
15,000,000.00 |
STANDARD CHARTERED BANK |
Credit Risk Control, Narain Manzil, 23
Barakhamba Road, New Delhi, Delhi - 110001, India |
A63267934 |
|
12 |
10134673 |
18/12/2008 |
500,000,000.00 |
YES BANK LIMITED |
9th floor, Nehru centre, discovery of
India, Dr. Annie Besant Road, Worli, Mumbai, Maharashtra - 400018, India |
A53190120 |
|
13 |
10127719 |
06/08/2012 * |
604,878,000.00 |
STANDARD CHARTERED BANK |
Credit Risk Control, Narain Manzil, 23,
Barakhamba Road, New Delhi, Delhi - 110001, India |
B45359437 |
|
14 |
80011848 |
06/08/2012 * |
1,000,000,000.00 |
State Bank of India |
3rd Floor, Sigapi Achi Building, Rukmini
Lakshmi pathy Road, Egmore, Chennai, Tamil Nadu - 600008, |
B45274099 |
|
15 |
80011846 |
06/08/2012 * |
500,000,000.00 |
State Bank of Mysore |
3, 4 & 5, DDA Building, Nehru Place,
New Delhi, Delhi - 110019, India |
B45363090 |
|
16 |
90058082 |
01/07/2003 * |
500,000,000.00 |
STATE BANK OF INDIA |
Corporate Accounts Group, 64; Greams Road,
Chennai, Tamilnadu - 600006, India |
- |
|
17 |
90062495 |
21/03/2002 |
150,000,000.00 |
CITI BANK |
3;Jeevan Vihar Building, Sansad Marg, New
Delhi, Delhi - 110001, India |
- |
|
18 |
90064295 |
18/02/2004 * |
11,000,000.00 |
STATE BANK OF INDIA |
Corporate Accounts Group, 64; Greams Road,
Chennai, Tamilnadu - 600006, India |
- |
|
19 |
90062193 |
13/02/2002 * |
290,000,000.00 |
STATE BANK OF INDIA |
Corporate Accounts Group, 64; Greams Road,
Chennai, Tamilnadu - 600006, India |
- |
|
20 |
90057298 |
10/08/2000 |
500,000,000.00 |
ICICI LIMITED |
C - 23; G - Block, Bandra Kurla Complex;
Bandra East, Mumbai, Maharashtra - 400051, India |
- |
|
21 |
90057297 |
09/08/2000 |
400,000,000.00 |
ICICI BANK LIMITED |
9 - A, Connaught Place, New Delhi, Delhi,
India |
- |
|
22 |
90057204 |
14/03/2000 |
500,000,000.00 |
ICICI LIMITED |
C - 23; G - Block, Bandra Kurla Complex;
Bandra East, Mumbai, Maharashtra - 400051, India |
- |
|
23 |
90057149 |
13/12/1999 |
434,000,000.00 |
ICICI LTD. |
C - 23; G - Block, Bandra Kurla Complex;
Bandra East, Mumbai, Maharashtra - 400051, India |
- |
|
24 |
90056820 |
29/07/1998 * |
150,000,000.00 |
THE INDUSTRIAL CREDIT AND INVESTMENT
CORPO. OF IND |
163; Backbay Reclamation, Bombay, Maharashtra
- 400020, India |
- |
|
25 |
80052293 |
29/01/1998 * |
213,000,000.00 |
THE INDUSTRIAL CREDIT AND INVESTMENT
CORPORATION OF INDIA LTD |
163; Backbay Reclamation, Bombay,
Maharashtra - 400020, India |
- |
|
26 |
90056713 |
27/06/1997 * |
200,000,000.00 |
THE INDUSTRIAL DEVELOPMET BANK OF INDIA |
Indian Red Cross Society Bldg., 1; Red
Cross Road, New Delhi, Delhi - 110001, India |
- |
|
27 |
80052291 |
29/03/1997 |
7,370,000,000.00 |
THE INDUSTRIAL CREDIT AND INVESTMENT
CORPORATION OF INDIA LTD |
163; Backbay Reclamation, Bombay,
Maharashtra - 400020, India |
- |
|
28 |
80052290 |
23/09/1996 |
336,426,000.00 |
THE INDUSTRIAL CREDIT AND INVESTMENT
CORPORATION OF INDIA LTD |
163; Backbay Reclamation, Bombay,
Maharashtra - 400020, India |
- |
|
29 |
90056604 |
29/01/1998 * |
250,000,000.00 |
GLOBAL TRUST BANK LIMITED |
G - 36., Connaught Circus, New Delhi,
Delhi - 110001, India |
- |
|
30 |
90056601 |
11/05/2004 * |
1,122,200,000.00 |
ICICI BANK LTD |
New Delhi, New Delhi, Delhi, India |
- |
|
31 |
80007309 |
21/03/2012 * |
7,800,000,000.00 |
ICICI BANK LIMITED |
Landmarkrace Cource Circle, Alkapuri,
Baroda, Gujarat -390015, India |
B37519618 |
|
32 |
90056385 |
29/01/1998 * |
59,000,000.00 |
INDUSTRIAL CREDIT AND INVESTMENT CORPO. OF
INDIA LIMITED |
Indian Red Cross Society Bldg., 1; Red
Cross Road, New Delhi, Delhi - 110001, India |
- |
|
33 |
90056356 |
29/01/1998 * |
100,000,000.00 |
THE PUNJAB NATIONAL BANK |
A-9; Connaught Circus, New Delhi, Delhi,
India |
- |
|
34 |
90056293 |
03/05/1994 * |
311,500,000.00 |
STATE BANK OF INDIA |
Rajaji Road, Madras, Tamil Nadu - 600001,
India |
- |
|
35 |
90056248 |
29/07/1998 * |
3,050,000.00 |
THE INDUSTRIAL CREDIT AND INVESTMENT CORP.
OF INDIA LTD. |
163; Backbay Reclamation, Bombay,
Maharashtra - 400020, India |
- |
|
36 |
90063650 |
14/05/1990 * |
13,370,000.00 |
INDUSTRIAL FINANCE CORPORATION OF INDIA |
Bank of Baroda Building, 16; Sansad Marg,
New Delhi, Delhi - 110001, India |
- |
|
37 |
90063644 |
08/06/1990 * |
5,000,000.00 |
CANARA BANK |
Herald House, Bahadur Shah Zafar Marg, New
Delhi, Delhi - 110002, India |
- |
|
38 |
90063624 |
10/08/1990 * |
10,000,000.00 |
THE HONGKONG & SHANGHAI BANKING CORPN.
LIMITED |
Punj House, Connaught Place, New Delhi,
Delhi - 110001, India |
- |
|
39 |
90063622 |
10/08/1990 * |
21,500,000.00 |
STATE BANK OF PATIALA |
Kasturba Gandhi Marg, New Delhi, Delhi -
110001, India |
- |
|
40 |
90063615 |
18/02/1987 * |
9,000,000.00 |
GENERAL INSURANCE CORPORATION OF INDIA |
Industrial Assurance Bldg., Churchgate,
Bombay, Maharashtra - 400020, India |
- |
|
41 |
80052292 |
06/01/1987 |
205,000,000.00 |
THE INDUSTRIAL CREDIT AND INVESTMENT
CORPORATION OF INDIA LTD |
163; Backbay Reclamation, Bombay,
Maharashtra - 400020, India |
- |
|
42 |
90056072 |
30/03/1993 * |
120,000,000.00 |
INDIAN BANK |
Harbour Branch, Madras, Tamil Nadu -
600001, India |
- |
|
43 |
90056070 |
23/04/1992 * |
120,000,000.00 |
INDIAN BANK |
Harbour Branch, Madras, Tamil Nadu -
600001, India |
- |
|
44 |
90063602 |
10/08/1990 * |
120,000,000.00 |
INDIAN BANK |
Harbour Branch, Madras, Tamil Nadu -
600001, India |
- |
|
45 |
90063599 |
18/08/1990 * |
43,400,000.00 |
STATE BANK OF BIKANER & JAIPUR |
106, Broadway, Madras, Tamil Nadu -
600018, India |
- |
|
46 |
90063581 |
08/06/1990 * |
207,500,000.00 |
STATE BANK OF INDIA |
Rajaji Road, Madras, Tamil Nadu - 600001,
India |
- |
* Date of charge modification
MANAGEMENT DISCUSSION
AND ANALYSIS
It was a turbulent time for most companies in the year gone by. The impact of a prolonged global economic crisis was detrimental to the international trade. In India too, the economic growth experienced a rare slowdown falling to 5 per cent following the 6.9 per cent recorded during the previous year. Faced with such a difficult scenario, SRF remained focused on improving its internal efficiencies and keeping its costs under control.
BUSINESSES
SRF has a portfolio of established businesses in industrial intermediates and also a portfolio of businesses which are being nurtured and developed in laminated and coated fabrics and fluorospecialitities. It classifies its main businesses as: Technical Textiles Business (TTB), Chemicals and Polymers Business (CPB) and Packaging Films Business (PFB).
TECHNICAL TEXTILES
BUSINESS
With a figure of Rs.16678.800 millions, the overall sale of Technical Textiles Business (TTB) has been flat year on year in value terms. This has been largely due to falling prices which were driven by softening commodity prices. The fall in prices was, however, compensated by increase in revenues from newer business segments viz. laminated fabrics and new products under coated fabrics. The business continues to contribute more than 50 per cent of the top line of the company.
TYRE CORD REINFORCEMENT
On the whole, the Nylon Tyre Cord Fabric (NTCF) business continues to be stable with a market share of close to 40 per cent in the Indian market. As a supplier to the bus and truck tyre industry, the fortunes of NTCF business are dictated by the GDP growth curve of the country. Whilst the first half of the fiscal year posted good volumes, the numbers in the second half reflected the slowdown in the economy.
The volume of the Polyester Tyre Cord Fabrics (PTCF) business, which caters to the radial tyre segment of passenger cars and light commercial vehicles, could not take off in significant way due to a sharp fall in automotive production in the country and substantial glut in the fabric producing industry globally. The company is engaged in the process of diversifying its product portfolio at the yarn stage to move towards full utilisation of its capacity. In this context, it has made initial forays in seat belts and geo textiles segments of the market, which bodes well for the future.
BELTING FABRICS
The business which is the second largest producer of belting fabrics in the world, faced a contracting market in the second half of the year on account of the recession in the developed parts of the world. The company, however, took steps to beef up its order books in the domestic market to make up for the lost volumes partially. Whilst, the potential of the business promises a lot, there is still some distance to go since the key infrastructure projects in the country, whether Mining, Power or Construction, continue to be delayed. Meanwhile, the performance was adversely affected on account of an increase in input cost which the business has not been able to fully pass on to its customers.
The South African subsidiary, which had a difficult 2011-12, posted a turnaround with improved financial results. The demand in the second half of the year has been significantly better than the first half with the entity restoring its strong market presence in the domestic South African market and also initiating sales in Latin America. The strategy is expected to serve the entity well in the coming year.
COATED AND LAMINATED FABRICS
The Laminated Fabric Business has established a good base level with a market share of over 25 per cent in the country within a couple of years of its existence; it is now the second largest player in the country and has set up the first Hot Lamination Facility in the country to be able to expand its product range and compete effectively with overseas players at the higher end of the segment.
The Coated Fabric Segment posted a 10 per cent year on year growth in volume and expanded its product range considerably using the new facility at Gummudipoondi. The business was expected to do better but has been affected adversely by the poor monsoon and lower movement of the goods during the year (a significant volume of its sales are driven by the transportation sector). The business has a market share of over 40 per cent in the country and is a clear leader in this segment.
INDUSTRIAL YARN BUSINESS
SRF continues to be the supplier of choice in many of the Industrial Yarn segments of Nylon and Polyester viz. Conveyor Belts, Transmission Belts, Ropes, Geo Textiles, and Fishnets etc. In the organized sector, SRF continues to be a leader and also enjoys its reputation as a value provider.
OUTLOOK
With the slowdown in the infrastructure development of the country, it is expected that the radialisation in the bus and truck segment would be adversely affected. This is likely to benefit the NTCF segment of TTB since the demand for bias tyres is expected to remain the same or increase marginally (bias tyres are better suited for bad roads in comparison to radial tyres).
In the emerging circumstances, therefore, the NTCF segment will continue to remain a foundation business for the company, which may show marginal growth over the next few years in tune with the GDP growth of the country.
Given the growth potential of the passenger car and LCV car segment, which essentially uses radial tyres, SRF’s investment in the PTCF segment appears appropriate for the long term. The fact that SRF is the only manufacturer of PTCF in the country lends further credibility to the claim even though the business continues to face difficulties in the shorter run.
The company would continue to focus on identifying overseas markets. The expanded product range, which includes yarn for Geo Textiles and Seat Belts, is expected to aid the process of utilizing full capacity of the yarn plant by the second half of the forthcoming year.
With the successful launch of Hot Lamination Products during the year, SRF expects to start reaping the benefits of sales at the higher end of the laminated fabrics, this year. The overall sales of laminated fabrics are expected to go up substantially and improve the financial performance of this segment.
As regards coated fabrics, several new products such as Pagodas, Double Sided Striped Awnings and Lacquered Tarpaulins (printable) have been seeded in the market towards the end of the last financial year. The new products offer possibilities of significant growth in the coming years. The company has also initiated exports to Middle East and South East Asian countries and wishes to expand the geographical territories to help the process of capacity utilisation. Having been an early mover in this segment and a clear leader, SRF believes that the point of inflection is not far away and as and when the opportunity knocks on its doors, the company will be in a position to fully reap the benefits.
CHEMICALS and
POLYMERS BUSINESS
The manufacturing operations of SRF’s Chemicals Business (CB) are located at two locations: Bhiwandi in Rajasthan about 70 kilometers from New Delhi, and a Greenfield site at Dahej in Gujarat. The business derives its revenue from the sale of fluorine-based refrigerants, chloromethane, fast-growing specialty fluorochemicals and engineering plastics.
2012-13 was a year of challenges for CB as well. European players were exporting competing products into the country at very low prices to keep their plants running as the demand in the developed countries has gone down substantially in view of the economic downturn. The company is taking necessary steps under the international treaty, WTO, to discourage such sales. In the fluorospecialities segment, further strategic tie-ups with global agro and Pharma majors were established. New products were introduced and fructification of others is in the pipeline
REFRIGERANTS
Refrigerants are primarily used as a cooling medium in 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 domestic market leader with about 40 per cent share. Exports of the business are spread across 60 countries worldwide, and account for over 60 per cent of the volumes produced.
SRF’s portfolio of refrigerants includes hydrochlorofluorocarbon-22 (HCFC-22), the new-generation refrigerant, hydrofluorocarbon-134a (HFC-134a), and the refrigerant blend R410A. The company continues to invest in further capacities of HFC-134a/125 keeping in view the medium and long-term growth of India’s automobile industry, as well as in the rest of the developing world. Demand for HCFC-22 for air-conditioning would start contracting slowly on account of the phase down mandated under Montreal Protocol. The companys in the process of finding alternate applications for HCFC-22 to ensure full usage of its capacities.
The market for refrigerants was almost flat during 2012-13 on the back of slow sales of air-conditioners and automobiles, key indicators highlighting the weak economic growth in the country. The company looks forward to a recovery during FY2014. The medium term outlook for refrigerants looks bright based on the economic growth projected for India, especially for consumer durables like air-conditioners and refrigerators, as well as automobiles.
CHLORINATED SOLVENTS
SRF’s main products in the chloromethane business are ethylene chloride and chloroform. While chloroform is internally consumed for manufacturing HCFC-22, ethylene chloride is sold primarily in the domestic market.
In 2012-13, the profitability of the chloromethane segment fell sharply as a result of low-priced imports and rising input costs in the domestic market. This had started towards the second half of 2011-12 and continued through 2012-13. The company expects the situation to improve with the recovery of the Indian economy. Currently, strong relationships with customers, high product quality, efficient production, and short delivery lead times continue to be key differentiators vis-à-vis imports. SRF has introduced two new products – trichloroethylene and perchloroethylene – towards the end of the year. Trichloroethylene is a backward integration to the HFC-134a production facility and is used primarily as a feedstock. Perchloroethylene is used as a solvent in the laundry, metal degreasing and vapor degreasing industries. It is also a feedstock for HFC-125 and HFC-134a for some producers. There is no domestic producer of perchloroethylene with the entire demand being met through imports. SRF aims to become a major supplier for these products in the domestic market over the next year.
FLUOROSPECIALITIES
Building on its presence in the fluorine chemistry industry for almost two decades, the company had entered the space of specialty fluorine chemistry in 2003-04. Being a chemicals intermediate company, the focus has been to leverage the company’s expertise to produce intermediates and advanced intermediates, used to manufacture Active Pharmaceutical Ingredients (APIs) and agrochemicals by its customers. Apart from fluorinated intermediates where fluorine-based specialty chemicals are finding increasing usage in the fields of agrochemicals, pharmaceuticals and performance products, non-fluorinated specialty products are being selectively explored for commercialisation.
In order to keep the momentum going, the strength of R and D and process engineering has substantially been augmented, with a number of projects in various stages of implementation. The business is now engaged with reputed domestic and global innovators for new range of products.
ENGINEERING PLASTICS
Engineering Plastics Business comprises of products made from polymers like polyamides (N6 and N66), poly butylenethalate (PBT) and poly carbonates (PC). The business continues to maintain its leadership position in the domestic market. One of the key markets, the automotive segment has slowed down in the year resulting in pressure on growth and margins. The business, however, grew marginally and improved its margins significantly. Leveraging its product development capability, SRF also developed high end products for its customers in the auto and electrical segment and obtained product approvals from some of the prestigious customers both in India and abroad.
OUTLOOK
The Chemicals Business had been on the growth path over the past few years mainly driven by strong commodity upswing and R D led innovations in specialty products. Though the commodity cycle has been on the downtrend resulting in softer profitability, SRF has maintained its market share and sales volumes, and the profitability would rebound when the commodity cycle swings back. The fluorospecialty business expanded its overseas presence by adding more volumes to existing customer base. Leveraging the solid foundation of in-house technological capability, the focus is currently on developing and launching new-generation refrigerants along with specialty products.
During 2013-14, the business is expected to derive value from the new chlorinated solvents being manufactured at its Dahej facility, which is now functional. In addition, the investment in a new HFC-134a/125 plant in Dahej will come up at the end of 2013-14. The upcoming plant will be backward integrated with a global size HF plant to meet the production need. In fluorospecialities, the business is expected to expand its horizons and the range of specialty products coming out of Dahej. The business is continuing to build on its reputation and credibility with the global agrochemical and pharmaceutical majors.
SRF has been making large investments in the Chemicals Business and the plans are afoot to ensure successful commissioning and consolidation of new units so that the company starts generating returns on these investments going forward.
PACKAGING FILMS
BUSINESS
The Packaging Films Business (PFB) faced its own share of challenges during the year. The current installed polyester film capacity in India is almost twice that of domestic demand. The demand supply imbalance, coupled with increasing raw material prices put extreme pressure on the business profitability. However, relentless focus on creating and sustaining export base along with robust FMCG growth of ~15% per annum in India offered some respite and helped the business sail through the turbulent times. Overall, business EBIT fell from Rs.16 crores in 2011-12 to Rs.45.000 millions.
The business focused on strengthening exports capability to mitigate domestic volatility and as a result, achieved its highest ever export sales during the year. SRF also remained the largest polyester film exporter from India.
It also took on the challenge of further improving the cost structures and efficiencies and switched to husk as a fuel option in the Kashipur unit, resulting in sustained savings in the fuel cost. The business was once again the proud recipient of the EPCES Export Award in Category II Product Specific SEZ (Plastic Products) for the sixth consecutive year.
OUTLOOK
Global demand of polyester films is expected to grow at around 6 per cent per annum. However, given the huge supply overhang, the current commodity ‘down cycle’ is likely to continue for some time. Currently prevailing low margins would discourage new investments, which should improve the demand supply situation going forward.
In order to counter the challenges posed by the current down cycle, the business has carved out a clear cut strategy of continued focus on exports (especially to the developed world), nurturing long term strategic partnerships with its customers, building a rich portfolio of value-added films and dedicated efforts to improve operational efficiency for achieving cost competitiveness.
2013-14 will be a landmark year for the business as two new projects (BOPET Film line in Thailand and BOPP Film line in South Africa) would be coming on stream during the year.
CONTINGENT LIABILITIES NOT PROVIDED FOR
(Rs. in millions)
|
a) Claims against the Company not acknowledged as debts: |
31.03.2013 |
31.03.2012 |
|
Excise duty, customs duty and service tax* @ |
629.011 |
592.408 |
|
Sales tax** @ |
841.270 |
122.528 |
|
Income tax |
77.879 |
35.682 |
|
Stamp duty**** |
288.155 |
288.155 |
|
Others *** |
176.632 |
47.433 |
* Amount deposited
Rs. 44.869 millions (Previous year – Rs.31.592 millions)
** Amount
deposited Rs. 0.975 millions (Previous Year – Rs.0.716 millions)
*** Amount
deposited Rs. 0.800 millions (Previous Year – Rs. 0.800 millions)
**** Amount
deposited Rs. 50.165 millions (Previous year - Nil)
***** In the
matter of acquisition of the Tyrecord Division at Malanpur from Ceat Limited
the Collector of Stamps, Bhind (Madhya Pradesh) has by his order dated
07.11.2001 assessed the value of the subject matter of the Deed of Conveyance
dated 13.06.1996 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 13.06.1996 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 29th 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 KAMA Holdings Limited, the liabilities of Rs. 206.430
millions (Previous Year - Rs. 179.381 millions) and Rs. 3.800 millions
(Previous Year - Rs. 3.800 millions) respectively towards Excise Duty and Sales
tax are covered under Representations and Warranties.
# includes demand
on account of central sales tax, VAT and entry tax aggregating to Rs. 603.468
millions received by the Company subsequent to the year end. The Company is in
the process of filing writ petition with the Hon’ble High Court relating to the
above demand.
All the above
matters are subject to legal proceedings in the ordinary course of business. In
the opinion of the management, the legal proceedings, when ultimately
concluded, will not have a material effect on the results of the operations or
financial position of the Company.
b. Liability on account
of Bank Guarantees Rs.82.382 millions (Previous Year – Rs. 126.026 millions)
c. Guarantees given to banks for repayment of
financial facilities availed by wholly owned subsidiaries are as below:
|
Name of the
subsidiary |
Currency |
Guarantee amount
as at |
Loan outstanding
against the guarantee as at |
||
|
|
|
31.03.2013 |
31.03.2012 |
31.03.2013 |
31.03.2012 |
|
SRF Flexipak (South Africa) (Pty) Limited |
Euro |
3.50 |
3.50 |
0.14 |
-- |
|
|
USD |
46.00 |
-- |
19.50 |
-- |
|
|
USD |
19.49 |
-- |
6.19 |
-- |
|
|
USD |
14.95 |
-- |
-- |
-- |
|
|
|
|
|
|
|
|
SRF Global BV |
USD |
20.00 |
20.00 |
20.00 |
20.00 |
|
|
USD |
18.00 |
18.00 |
3.82 |
13.00 |
|
|
USD |
16.50 |
16.50 |
-- |
15.03 |
|
|
USD |
10.00 |
-- |
-- |
-- |
|
|
USD |
23.00 |
-- |
20.00 |
-- |
|
|
USD |
23.00 |
-- |
20.00 |
-- |
|
|
|
|
|
|
|
|
SRF Industries
(Thailand) Limited |
USD |
52.00 |
-- |
36.00 |
-- |
|
|
Euro |
23.00 |
-- |
1.72 |
-- |
d. Guarantees given to banks for repayment of financial
facilities availed by others – Rs. 25.000 millions (Previous Year – Rs. 25.000
millions). Outstanding amount as at the year-end is Rs.6.669 millions (Previous
Year – Nil).
e. The Company has been served with show cause
notices regarding certain transactions as to why additional customs / excise
duty amounting to Rs.26.679 millions (Previous year – Rs.7.224 millions) should
not be levied. The Company has been advised that the contention of the
department is not tenable and hence the show cause notice may not be
sustainable.
FIXED ASSETS
Ø
Freehold Land
Ø
Leasehold Land
Ø
Roads
Ø
Buildings
Ø
Plant and Machinery
Ø
Furniture, Fixtures and Office Equipments
Ø
Vehicles
Ø
Goodwill
Ø
Technical Knowhow
Ø
Software
STANDALONE UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE 2013
(Rs. in millions)
|
Particulars |
3 Months ended
30.06.2013 |
|
|
(Unaudited) |
|
Income from Operations |
|
|
Net
Sales/Income from Operations |
8190.500 |
|
Other
Operating Income |
58.600 |
|
Total Income from operations (net) |
8249.100 |
|
|
|
|
Expenses |
|
|
(a) Cost of materials consumed |
4743.100 |
|
(b) Purchase
of stock in trade |
41.900 |
|
(c) Changes in inventories of finished goods, work in progress and stock
in trade |
147.800 |
|
(d) Employee
benefit expenses |
544.300 |
|
(e)
Depreciation and amortization expenses |
483.900 |
|
(f) Power and Fuel |
847.200 |
|
(g) Other
Expenses |
648.100 |
|
Total Expenses |
7456.300 |
|
Profit from Operations before Other Income,
Finance costs, Exchange
Currency Fluctuation and Exceptional item |
792.800 |
|
Other Income |
87.300 |
|
Profit/ Loss from Ordinary Activities
before Finance costs, Exchange
Currency Fluctuation and Exceptional item |
880.100 |
|
Finance costs |
202.700 |
|
Profit/ Loss from Ordinary Activities after
Finance costs, Exchange
Currency Fluctuation but Exceptional item |
677.400 |
|
Exchange Currency Fluctuation |
163.800 |
|
Exceptional item |
-- |
|
Profit/ Loss from Ordinary Activities
before tax |
513.600 |
|
Tax Expenses |
|
|
- Current Tax |
161.000 |
|
- Deferred
Tax Liability/ Assets |
(18.700) |
|
- Provision for Tax Relating to Earlier Years |
(66.800) |
|
Net Profit/ Loss from Ordinary Activities
after tax |
438.100 |
|
Extraordinary
Items |
- |
|
Net Profit for the period |
438.100 |
|
Paid- up Equity Share Capital (Face value
of the share – Rs. 10) |
574.200 |
|
Reserves excluding revaluation reserves as
per balance sheet of Previous Accounting Year |
|
|
Basic EPS for the Period (Not annualised) |
7.63 |
|
Diluted EPS for the Period (Not annualised) |
7.63 |
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
1. Public shareholding |
|
|
Number of Shares |
27685430 |
|
Percentage of
Shareholding |
48.22% |
|
2. 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 Share Capital of the
Company) |
-- |
|
Non - encumbered |
|
|
- Number of Shares |
29735070 |
|
- Percentage of Shares (as a % of the total shareholding of
promoter and promoter group) |
100.00% |
|
- Percentage of Shares (as a % of the total share capital of the company) |
51.78% |
|
|
Particulars |
3 Months ended
30.06.2013 |
|
B |
Investor
complaints |
|
|
|
Pending at the beginning of the quarter |
-- |
|
|
Received during the quarter |
77 |
|
|
Disposed of during the quarter |
77 |
|
|
Remaining unresolved at the end of the quarter |
-- |
SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED UNDER
CLAUSE 41 OF THE LISTING AGREEMENT FOR THE QUARTER ENDED 30TH JUNE
2013
(Rs.
in millions)
|
Particulars |
3 Months ended
30.06.2013 |
|
|
(Unaudited) |
|
1. Segment Revenue |
|
|
a) Technical Textiles Business
(TTB) |
4361.700 |
|
b) Chemicals and Polymers Business
(CPB) |
2296.900 |
|
c) Packaging Film Business (PFB) |
1599.500 |
|
Total segment revenue |
8258.100 |
|
Less: Inter – segment revenue |
9.000 |
|
Total income from operations (net sales) |
8249.100 |
|
|
|
|
2. Segment Results |
|
|
Profit/ (loss) before tax and interest |
|
|
a) Technical Textiles Business
(TTB) |
383.400 |
|
b) Chemicals and Polymers Business
(CPB) |
525.800 |
|
c) Packaging Film Business (PFB) |
48.000 |
|
Total segment results |
957.200 |
|
(Add)/Less: Finance Costs |
202.700 |
|
Other un-allocable expenditure net off
un-allocable other operating income |
240.900 |
|
Total Profit Before Tax |
513.600 |
|
|
|
|
3. Capital Employed |
|
|
(Segment Assets – Segment Liabilities) |
|
|
a) Technical Textiles
Business (TTB) (Including Capital Work In Progress Rs. 25.100 Millions as at
30th June 2013) |
11534.700 |
|
b) Chemicals and Polymers
Business (CPB) (Including Capital Work In Progress Rs. 2892.400 Millions as
at 30th June 2013) |
14309.600 |
|
c) Packaging Film Business
(PFB) (Including Capital Work In Progress Rs. 13.300 Millions as at 30th June
2013) |
4164.400 |
|
Total Capital Employed |
30008.700 |
|
Add : Unallocable Assets Less Liabilities |
3017.000 |
|
Total Capital Employed In the Company |
33025.700 |
NOTE:
1.
The above results were viewed by the Audit
Committee and approved by the Board of Director sat its meeting held on 26th
July 2013.
2. SRF Industries (Thailand) Limited, the step down wholly owned subsidiary of the Company in Thailand had commenced commercial production units Thin BOPET Film line (28500TPA) manufacturing facility on 1st July, 2013.
3. The Company has opted to apply the provisions under paragraph 46A of Accounting Standard (AS) 11“ The Effects of Changes in Foreign Exchange Rates ”with effect from April1,2013. Accordingly, exchange difference of Rs 414.300 millions, arising on all long term monetary items relating to the acquisition of depreciable assets are added to the cost of Fixed Assets / Capital Work in Progress and will be depreciated over the balance use full life of the assets. As a result of such change, the net profit after tax for the quarter is higher by Rs 261.900 millions
4. Previous period figures have been regrouped wherever necessary to conform to current quarter classifications.
Limited Review:
The Limited Review for the quarter ended June 30, 2013 as
required under Clause 41 of Listing Agreement has been completed by the
Statutory Auditors.
PRESS RELEASE
SRF LIMITED: SRF REJIGS ITS TOP MANAGEMENT
TEAM INDUCTS 6 NEW CEOS FROM AMONG ITS CADRE
1ST
AUGUST, 2013
Gurgaon: SRF Limited, a multi-business entity engaged in the manufacture of chemical based industrial intermediates, has inducted 6 new CEOs to its corporate leadership team with effect from 1st August 2013. A unique feature of SRF's top management team is that 5 of the new CEOs had started their professional career from SRF as Management Trainees.
The new members of the reconstituted leadership team of SRF are Sanjay Chatrath, President and CEO (tyre cord business), Suresh Kannan, President and CEO (belting fabrics, coated fabrics and laminated fabrics), Ajay Chowdhury, President and CHRO, Prashant Yadav, President and CEO (engineering plastics and fluorochemicals business), Anurag Jain, President and CEO (speciality chemicals business) and Prashant Mehra, President & CEO (packaging films business).
With these changes the strength of the company's leadership team increases from
8 to
13 with Arun Bharat Ram, Chairman, and SRF being appointed as a permanent
invitee to all the CLT meetings. The other existing members of the leadership
team are Ashish Bharat Ram, MD, Kartik Bharat Ram, Dy MD, Rajdeep Anand,
President (chemicals technology group), Sushil Kapoor, President and CEO
(technical textiles business), Rajendra Prasad, CFO and R.M. Rajgopal, Advisor.
The changes came close on the heels of the retirement of one of the members of
the leadership team, Roop Salotra, who superannuated as President and CEO
(chemicals business and packaging films business) on 31st July 2013 after
serving the company for 24 years.
About SRF
Established in 1970, SRF as a group has today grown into a global entity with operations in 4 countries. 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&D facilities for Chemicals Business and Technical Textiles Business, the company strives to stay ahead in business through innovations in operations and product development. A winner of the prestigious Deming Prize for two of its businesses namely Tyre Cord and Chemicals, SRF continues to redefine its work and corporate culture with the TQM as its management way.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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 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 :
Our 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.
Our 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.60.82 |
|
|
1 |
Rs.92.97 |
|
Euro |
1 |
Rs.80.73 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
NO |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
62 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.