MIRA INFORM REPORT
|
Report Date : |
03.05.2014 |
IDENTIFICATION DETAILS
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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 : |
Exist |
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Comments : |
Subject is a well-established company having a fine track record. There seems slight dip in profitability of the company during the
financial year 2013. However, the ratings reflects sound financial risk profile marked by
adequate liquidity position and comfortable capital structure. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for normal 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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
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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
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
FITCH |
|
Rating |
Long term issuer rating AA |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
19.09.2013 |
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 DENIED
MANAGEMENT NON CO-OPERATIVE (91-124-4354400)
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 |
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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: 31.03.2014
|
Category of
Shareholder |
Total No. of
Shares |
% of Total No.
of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
||
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|
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|
30075500 |
52.38 |
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|
30075500 |
52.38 |
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Total shareholding of Promoter and Promoter Group (A) |
30075500 |
52.38 |
|
(B) Public Shareholding |
||
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|
6729652 |
11.72 |
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|
59884 |
0.10 |
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|
863351 |
1.50 |
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|
4612490 |
8.03 |
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|
12265377 |
21.36 |
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|
2197526 |
3.83 |
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|
10362333 |
18.05 |
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|
1733680 |
3.02 |
|
|
786084 |
1.37 |
|
|
328997 |
0.57 |
|
|
438277 |
0.76 |
|
|
18760 |
0.03 |
|
|
50 |
0.00 |
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|
15079623 |
26.26 |
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Total Public shareholding (B) |
27345000 |
47.62 |
|
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 |
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|
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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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
|
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* |
|
|
|
|
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 |
79.90 |
|
QUARTERLY /
SUMMARISED RESULTS
|
Particulars |
30.06.2013 |
30.09.2013 |
31.12.2013 |
|
Audited / UnAudited |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
8249.100 |
8438.900 |
8615.700 |
|
Total Expenditure |
7136.200 |
7168.800 |
7163.700 |
|
PBIDT (Excl OI) |
1112.900 |
1270.100 |
1452.000 |
|
Other Income |
87.300 |
53.000 |
105.300 |
|
Operating Profit |
1200.200 |
1323.100 |
1557.300 |
|
Interest |
202.70 |
226.000 |
159.600 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
997.500 |
1097.100 |
1397.700 |
|
Depreciation |
483.900 |
479.700 |
478.900 |
|
Profit Before Tax |
513.600 |
617.400 |
918.800 |
|
Tax |
75.500 |
139.700 |
198.200 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
438.100 |
477.700 |
720.600 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
438.100 |
477.700 |
720.600 |
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 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns.) |
(INR
in Mlns.) |
(INR
in Mlns.) |
|
Share Capital |
615.241 |
584.356 |
584.356 |
|
Reserves & Surplus |
15784.812 |
17882.65 |
19540.768 |
|
Net
worth |
16,400.053 |
18,467.006 |
20,125.124 |
|
|
|
|
|
|
long-term borrowings |
4347.2 |
5793.068 |
5766.234 |
|
Short term borrowings |
1307.932 |
2944.297 |
2416.311 |
|
Total
borrowings |
5,655.132 |
8,737.365 |
8,182.545 |
|
Debt/Equity
ratio |
0.345 |
0.473 |
0.407 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
30632.767 |
35272.183 |
33225.443 |
|
|
|
15.145 |
(5.803) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
30632.767 |
35272.183 |
33225.443 |
|
Profit |
4834.421 |
3873.800 |
2585.070 |
|
|
15.78% |
10.98% |
7.78% |
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 |
No |
|
10] |
Designation
of contact person |
No |
|
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 |
No |
|
20] |
Export
/ Import details (if applicable) |
No |
|
21] |
Market
information |
---------------------- |
|
22] |
Litigations
that the firm / promoter involved in |
Yes |
|
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 |
Yes |
LITIGATION DETAILS
|
IN THE HIGH
COURT OF DELHI AT NEW DELHI ITA 1357 / 2010 Commissioner of income tax……………. Appellant Through Ms. Rashmi Chopra with Mr. Chandramani Bhardwaj, Advocates Versus SRF Limited……….. Respondent Through Mr. Satyen Sethi with Mr. Arta Trana
Panda, Advocates Coram: Hon’ble the Chief Justic Hon’ble Mr. Justice Manmohan Order 13.09.2010 The present appeal preferred under Section
260A of the Income Tax Act, 1961 (for brevity the Act) is admitted on the
following substantial of law :- i) Whether on a true and correct
interpretation of the provisions of Section 43B of the Act, the Income Tax
Appellate Tribunal was correct in law in allowing deduction under Section 43B
of the Act on account of amount representing excise duty lying in the
personal ledger account ITA 1357/2010 As Mr. Satyen
Sethi, learned counsel has entered appearance on behalf
of respondent-assesse, no further notice need be issued. Filing of paper
book is dispensed with. Let the matter be linked with ITA No. 501/2009. |
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 fluoro specialties. 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)
|
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 31ST
DECEMBER, 2013
(Rs. in millions)
|
Particulars |
3 Months ended 31.12.2013 |
3 Months ended 30.09.2013 |
9 Months ended 30.09.2013 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Income from Operations |
|
|
|
|
Net
Sales/Income from Operations |
8594.400 |
8399.400 |
25184.300 |
|
Other
Operating Income |
21.300 |
39.500 |
119.400 |
|
Total Income from operations (net) |
8615.700 |
8438.900 |
25303.700 |
|
|
|
|
|
|
Expenses |
|
|
|
|
(a) Cost of materials consumed |
4980.000 |
5167.500 |
14890.600 |
|
(b) Purchase
of stock in trade |
8.800 |
59.000 |
109.700 |
|
(c) Changes in inventories of finished goods, work in progress and
stock in trade |
(33.400) |
(269.800) |
(155.400) |
|
(d) Employee
benefit expenses |
584.100 |
552.600 |
1681.000 |
|
(e)
Depreciation and amortization expenses |
478.900 |
479.700 |
11442.500 |
|
(f) Power and Fuel |
847.400 |
847.000 |
2541.600 |
|
(g) Other
Expenses |
776.800 |
747.100 |
2172.000 |
|
Total Expenses |
7642.600 |
7583.100 |
22682.000 |
|
Profit from Operations before Other Income,
Finance costs, Exchange
Currency Fluctuation and Exceptional item |
973.100 |
855.800 |
2621.700 |
|
Other Income |
41.400 |
53.000 |
181.700 |
|
Profit/ Loss from Ordinary Activities
before Finance costs, Exchange
Currency Fluctuation and Exceptional item |
1014.500 |
908.800 |
2803.400 |
|
Finance costs |
159.600 |
226.000 |
588.300 |
|
Profit/ Loss from Ordinary Activities after
Finance costs, Exchange
Currency Fluctuation but Exceptional item |
854.900 |
682.800 |
2215.100 |
|
Exchange Currency Fluctuation |
(63.900) |
65.400 |
165.300 |
|
Exceptional item |
-- |
-- |
-- |
|
Profit/ Loss from Ordinary Activities
before tax |
918.800 |
617.400 |
2049.800 |
|
Tax Expenses |
|
|
|
|
- Current Tax |
197.000 |
148.000 |
506.000 |
|
- Deferred
Tax Liability/ Assets |
1.200 |
(11.500) |
(29.000) |
|
- Provision for Tax Relating to Earlier Years |
-- |
3.200 |
(63.600) |
|
Net Profit/ Loss from Ordinary Activities
after tax |
720.600 |
477.700 |
1636.400 |
|
Extraordinary
Items |
-- |
-- |
-- |
|
Net Profit for the period |
720.600 |
477.700 |
1636.400 |
|
Paid- up Equity Share Capital (Face value
of the share – Rs. 10) |
574.200 |
574.200 |
574.200 |
|
Reserves excluding revaluation reserves as
per balance sheet of Previous Accounting Year |
|
|
|
|
Basic EPS for the Period (Not annualised) |
12.55 |
8.32 |
28.50 |
|
Diluted EPS for the Period (Not annualised) |
12.55 |
8.32 |
28.50 |
|
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1. Public shareholding |
|
|
|
|
Number of Shares |
27345000 |
27503092 |
27345000 |
|
Percentage of
Shareholding |
47.62 |
47.90 |
47.62 |
|
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 |
30075500 |
29917408 |
30075500 |
|
- Percentage of Shares (as a % of the total
shareholding of promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
- Percentage of Shares (as a % of the total
share capital of the company) |
52.38 |
52.10 |
52.38 |
|
|
Particulars |
3 Months ended
30.06.2013 |
|
B |
Investor
complaints |
|
|
|
Pending at the beginning of the quarter |
-- |
|
|
Received during the quarter |
38 |
|
|
Disposed of during the quarter |
38 |
|
|
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
31ST DECEMBER, 2013
(Rs.
in millions)
|
Particulars |
3 Months ended 31.12.2013 |
3 Months ended 30.09.2013 |
9 Months ended
30.09.2013 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1. Segment Revenue |
|
|
|
|
a) Technical Textiles Business (TTB) |
4461.600 |
4529.300 |
13352.600 |
|
b) Chemicals and Polymers Business (CPB) |
2699.600 |
2082.600 |
7079.100 |
|
c) Packaging Film Business (PFB) |
1476.900 |
1840.900 |
4917.300 |
|
Total segment revenue |
8638.100 |
8452.800 |
25349.000 |
|
Less: Inter – segment revenue |
22.400 |
13.900 |
45.300 |
|
Total income from operations (net sales) |
8615.700 |
8438.900 |
25303.700 |
|
|
|
|
|
|
2. Segment Results |
|
|
|
|
Profit/ (loss) before tax and interest |
|
|
|
|
a) Technical Textiles Business (TTB) |
385.300 |
466.600 |
1235.300 |
|
b) Chemicals and Polymers Business (CPB) |
696.400 |
347.500 |
1569.700 |
|
c) Packaging Film Business (PFB) |
(0.700) |
139.900 |
187.200 |
|
Total segment results |
1081.000 |
954.000 |
2992.200 |
|
(Add)/Less: Finance Costs |
159.600 |
226.000 |
588.300 |
|
Other un-allocable expenditure net off
un-allocable other operating income |
2.600 |
110.600 |
354.100 |
|
Total Profit Before Tax |
918.800 |
617.400 |
2049.800 |
|
|
|
|
|
|
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) |
12063.000 |
11505.100 |
12063.000 |
|
b) Chemicals and Polymers Business (CPB)
(Including Capital Work In Progress Rs. 2892.400 Millions as at 30th June
2013) |
17822.500 |
15420.000 |
17822.500 |
|
c) Packaging Film Business (PFB) (Including
Capital Work In Progress Rs. 13.300 Millions as at 30th June 2013) |
4392.900 |
4131.600 |
4392.900 |
|
Total Capital Employed |
34278.400 |
31056.700 |
34278.400 |
|
Add : Unallocable Assets Less Liabilities |
2469.100 |
3730.200 |
2469.100 |
|
Total Capital Employed In the Company |
36747.500 |
34786.900 |
36747.500 |
NOTE:
- The above results were reviewed by the Audit Committee and approved
by the Board of Directors at its meeting held on 11th February
2014.
- The Company had opted to apply the provisions under paragraph 46A
of Accounting Standard (AS) - 11 "The Effects of Changes in Foreign
Exchange Rates" with effect from April 1, 2013. Accordingly, the
depreciated / amortised portion of net foreign exchange (gain) / loss on
long-term foreign currency monetary items, for nine months ended 31st
December, 2013 is Rs. 26.800 millions. The unamortised portion carried
forward as at 31st
December, 2013 is Rs. 593.900 millions.
- The company had received demand notices from the Commercial Tax
Department, Government of Madhya Pradesh for payment of central Sales Tax
(CST), VAT and Entry tax aggregating to / Rs. 949.100 millions for the
period from 2007 to 2013 In respect of sales from its manufacturing
facility in Special Economic Zone (SEZ) in Madhya Pradesh to the Domestic
Tari Area (DTA).
In terms of the
Policy of the Government of Madhya Pradesh and Madhya Pradesh SEZ Act, 2003,
the Unit was exempt from local state taxes and levies. The Company has paid
Additional Countervailing Duty (ACVD) aggregating to Rs. 483.100 millions for
the period from 2007 to 2013 on sales from the SEZ to the DTA under the Customs
laws pursuant to the Special Economic Zone Act 2005, MP SEZ Act, 2003 and the
Policy of Centre and Madhya Pradesh State. The Company had filed a writ
petition before the Indore Bench of the Hon'ble High Court of Madhya Pradesh
("Court") against the said demands.
The Company
contended that while State is demanding local taxes, the Centre in its reply
has stated that ACVD is payable and therefore this amounts to doublc taxation.
The Court had granted a stay on such demands and directed the Central and State
Governments to jointly look into the matter. The Government of Madhya Pradesh
had filed a reply in the Court informing their stand that CST, VAT, Entry Tax
on sales from the SEZ to DTA is payable. The Company had sought certain
amendments to the petition including, challenging the constitutional validity
of amendments made in 2008 to The Indore SEZ (Special Provisions) Act 2003 and
inconsistency between the provisions of The SEZ Act 2005 and the Central Sales
Tax Act 1956. The Court vide order dated 31.01.2014 has directed for filing of
a fresh writ petition while continuing the stay on previous demands. The matter
is sub judice However, the Management of the Company, based on the facts of the
case and opinion received by the Company from legal experts, is confident of
getting a relief in the matter from the Court and, accordingly, has not made
any provision for the said disputed demands.
- The Board of Directors have approved the payment of an interim
dividend @ 70% i.e. Rs. 7/- on each equity share of the nominal value of
Rs. 10/-
- Previous period figures have been regrouped wherever necessary to
conform to current quarter classification.
Limited Review
The Limited Review
for the quarter and nine months ended December 31, 2013 as required under
Clause 41 of Listing Agreement has been completed by the Statutory Auditors.
PRESS RELEASE
SRF Q3 PAT down 19%
on y-o-y at Rs. 720.000 Millions
11th February 2013
- Q3 revenue at Rs. 862 crore, down 3%
- 9-month revenue at Rs. 2530 crore, up marginally
- 9-month PAT at Rs. 164 crore, down 12%
- Board approves second interim dividend of Rs. 7 per share
Q3 Financials
Gurgaon: SRF Limited, a
multi-business entity engaged in the manufacture of chemical based industrial
intermediates, reported a 19% decline in net profit after tax (PAT) at Rs. 72
crore during the third quarter of 2013 14. The third quarter profit declined
mainly because the company’s revenue during the corresponding period last year
(CPLY) included income from sale of CERs, which stands discontinued now in view
of changes in European Union - Emission Trading Scheme (EU-ETS). The profit for
third quarter of 2013-14 also included a forex gain of Rs. 6.39 crore during
the quarter. SRF’s revenue was down by 3 per cent from Rs. 889 crore to Rs. 862
crore during the same period year-on-year. The unaudited financial results of
SRF were taken on record by SRF’s Board in a meeting held today.
In
today’s meeting, the Board also approved an interim dividend at the rate of 70
per cent amounting to Rs. 7 per share.
Reflecting on the
financial performance of the company, Mr.
Ashish Bharat Ram, Managing Director, Subject,
commented: “Post the CDM era, the company has performed
exceptionally well in a weak economic environment. The next few months are extremely important
for the company with new plants getting commissioned at Dahej.”
Q3
Segment Results
While the
segment revenue for the Technical Textiles Business grew by 12% from Rs.
3970.000 millions to Rs. 4460.000 millions, its operating profit increased by
50% from Rs. 260.000 millions to 390.000 millions during the third
quarter ended December 2013 over CPLY. The Chemicals and Polymers Business recorded a reduction of 23% in its segment
revenue from Rs. 3520.000 millions to Rs. 2700.000 millions.
The operating profit of the Chemicals and Polymers Business declined by 55% from Rs. 1560.000 millions
to Rs. 700.000 millions during
September-December 2013. The revenue for the
Packaging Films Business improved by 5% from Rs. 1410.000 millions to Rs. 1480.000 millions
and its operating loss reduced
significantly from Rs. 50.000 millions to Rs.
0.700 millions during the quarter ended December 2013.
Nine Month
Financials
In the first nine
months of 2013-14, the company’s revenue at Rs. 25300.000 millions increased marginally over Rs. 25040.000 millions recorded during CPLY. The net profit after
tax (PAT) of SRF declined by 12% at Rs. 1640.000 millions
during April December 2013 as against Rs. 1870.000 millions ore posted during CPLY.
Capexes Approved
The Subject Board
also approved capexes proposal for augmenting production facility for specialty
chemicals at SRF’s Chemical Complex in Dahej, Gujarat for Rs. 110.000 millions (approx.) and augmenting quality of power
for Gwalior unit of Technical Textile Business for Rs. 220.000 millions (approx.).
About Subject
Established in
1973, 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 Application 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.60.22 |
|
|
1 |
Rs.101.68 |
|
Euro |
1 |
Rs.83.46 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
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 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--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 |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.