The BSE Ltd. National Stock Exchange of India Limited BSE’s Corporate Relationship Department “Exchange Plaza” 1st Floor, New Trading Ring, Bandra-Kurla Complex Rotunda Building, P.J. Towers, Bandra (E) Dalal Street, Fort, Mumbai- 400 051 Mumbai 400 001

SRF/SEC/AGM-50/2021 07th August, 2021

Dear Sir,

Sub: Annual Report of 50th Annual General Meeting- SRF Limited

In Compliance with Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 please find attached 50th Annual Report of SRF Limited.

The Annual Report can also be accessed at the company’s website at: www.srf.com

Request to kindly take this intimation on record.

Thanking you,

Yours faithfully, For SRF LIMITED

Rajat Lakhanpal VP (Corporate Compliance) & Company Secretary

Encl : A/a

SRF LIMITED Block-C Sector‘45 Gurugram 122 003 Haryana India Tel: +91-iZA—4354400 Fax: +91-124—4354500 E-mail: [email protected] Website : www.srf.com Regd. Office: Unit No. 236 Sr 237, 2nd Floor DLF Galleria, Mayur Plate Noida Link Road Mayur Vihar Phase 1 Extension Delhi 110091 Corporate identity No. L181010L1970PLC005197

Accelerating Growth. Scaling new heights.

annual report 2020-21 contents SRF AT A GLANCE

To view the Annual Report, scan this code or We are a R&D-driven diversified chemicals conglomerate. Our purpose - “We always find a better way” - is visit: https:www.srf.com/investors/reports-and-results WHO WE encapsulated not only in the products that we manufacture and the superior processes that we adopt, but also amply ARE demonstrated in our penchant for employee engagement, transparent governance and inclusive growth.

01 SRF at a Glance 16 Our Approach to ESG Our wide range of products and solutions are sold worldwide. SRF Limited - A Diversified Transforming Lives. What We These are used in varied applications and segments: from tyres to air conditioners, from mines to cricket grounds, from 02 Chemicals Conglomerate 73 Bringing Smiles. automotive to household appliances, from food packaging to Do raw materials for agrochemicals and pharmaceuticals. With our diverse portfolio, we strive to provide the highest Market quality, sustainable industrial and specialty intermediates that 04 Leadership 77 notice contribute to a better way of life.

07 Expanding our footprint 92 Board’s Report At SRF, we continuously strive to work towards and be known HOW WE for our Aspirations – 2025, which are: Management • Professional Reputation and Value System 08 Chairman’s Message 123 Discussion & Analysis • Customer Advocacy DO IT • Innovation and Technology Leadership • Operational Excellence Standalone 12 Our Locations 154 Financials

Through our innovation-led products & offerings, we help Consolidated WHY WE provide solutions to some of the world’s most pressing 14 Board of Directors 250 Financials and complex needs. DO IT 15 Corporate Information SRF Limited - A Diversified CSR Highlights

Chemicals Conglomerate CORPORATE OVERVIEW

SRF Foundation runs one of the largest community programs in India in the Education space Ranking • Largest manufacturer of Difluoro & Trifluoro Alkyl Intermediates (globally) • 2nd Largest manufacturer of Nylon 6 tyre cord fabrics (globally) • 3rd Largest manufacturer of Conveyor belting fabrics (globally) • Pioneer in F 134a and F 32 refrigerants (India) STATUTORY REPORTS

Others • One of the few manufacturers of Pharma grade HFA 134a/P in the world, which is used in Metered Dose Inhalers as a propellant • Only Company in India manufacturing Polyester tyre cord fabric FINANCIAL STATEMENTS Awards/Recognition in FY21 • Managing Director, Ashish Bharat Ram named 276 21 9 India’s Best CEO in the emerging companies schools locations Indian states category by Business Today • SRF’s Specialty Chemicals Business awarded the Imparting quality Syngenta Supplier Award 2020 for performance education to more than • SRF’s Packaging Films Business South Africa plant awarded the 5 Star Rating for Occupational Health and Safety from the British Safety Council 81,310+ Students

2 Annual Report 2020-21 3 Specialty

Chemicals Business CORPORATE OVERVIEW

• Established relationship with marquee customers • Capability in scaling up pilot processes and creating value through operational excellence • High levels of customer engagement backed Market by strong R&D, technical service, product and quality management under one roof • Handling complex reactions - halogenation, Leadership ethylation, hydrogenation, nitration, diazotization, grignard, isomerization,

amination, organocatalysis, and STATUTORY REPORTS decarboxylation Specialty Chemicals Business Fluorochemicals Business • Unique and fully integrated facilities extending across a wide range of refrigerants, pharma propellants and industrial chemicals Packaging Films • Domestic leadership in HFC’s with strong FINANCIAL STATEMENTS Business trade distribution network; significant market share of Fluorochemicals in India with global scale operations • Among the top five global manufacturers of Technical key Fluorochemicals products Textiles Business

FY21 Fluorochemicals At a Glance Business

4 Annual Report 2020-21 5 Packaging Films

Business CORPORATE OVERVIEW

• Recognized for expertise in developing, manufacturing, and marketing innovative and specialty packaging films • Flexible business model, strong and loyal customer relationships with tailored solutions; NPD Lab to ensure future readiness • Highly-efficient asset base offering value-added products near customer locations STATUTORY REPORTS

• Domestic market leader in Tyre cord manufacturing and Belting fabrics • 40% share in India’s Nylon tyre cord market FINANCIAL STATEMENTS

Expanding Foray into Europe: EXPANDING IN RAYONG, THAILAND: our Footprint SRF’s Bi-axially Oriented SRF Industries (Thailand) Ltd., Polyethylene Terephthalate a wholly-owned subsidiary of (BOPET) film manufacturing the Company set up the facility is located at 2nd BOPET film line and a Jaszfenyszaru, Hungary. Resin plant at its existing This state-of-the-art facility facility in Rayong, houses an ultra-modern 10.4m Thailand in FY21. Technical Textiles wide BOPET film line capable of Business producing 40,000 MT/annum.

6 Annual Report 2020-21 7 Chairman’s Message

facilities to capitalize on emerging business “Through all the challenges, CORPORATE OVERVIEW The Year in Review opportunities. With an expanding product portfolio, a new MPP facility will further support your I have deeply admired the Accelerating Growth. Company’s endeavors to tap emerging business resilience of my 7,000 Scaling New Heights. opportunities and ensure a robust pipeline extraordinary colleagues FY21 gave us an opportunity to prove our steadfastness of new, cutting-edge products in the future. in critical times to all our stakeholders: customers, Similar investments alongside improved efficiencies, at SRF, who demonstrated employees, business partners, and the community. and optimum utilization of capacities, should enable dedication and professionalism, us to deliver operational excellence and result in even From a financial point of view, in FY 2020-21, your better performance, going forward. and kept the business moving Company achieved a 31% increase in profit after tax forward. I am also grateful at ` 1,198 crore compared to ` 916 crore last year. In the Fluorochemicals Business, our prudent Your Company’s revenue for the year stood at ` 8,400 investments in capacities, R&D, innovation, and to our customers and to crore as against ` 7,209 crore in the previous year, technology has established us as one of the you, our shareholders, recording an overall growth of 17%. We grew market very few, fully backward-integrated producers share across our businesses and continued to make globally. To build on this foundation and take it to for your unwavering trust significant investments in building our capabilities, a new level, the team delivered another first during in the company.” STATUTORY REPORTS nurturing talent, expanding our technology prowess, the year and commissioned a state-of-the-art all the while maintaining credit discipline and a refrigerant application lab at our chemical healthy balance sheet. manufacturing facility in Bhiwadi, Rajasthan. These are significant steps in what has been an Coming to our specific Businesses now, I would like to Arun Bharat Ram ongoing journey of growing our R&D competence Chairman, SRF Limited talk about some of the milestones achieved by each and we are already seeing important new of our business segments in FY 2020-21. benefits.

Chemicals Business During the year, your Company also made an In FY 2020-21, the Dear Shareholders, Chemicals Business important announcement to set up an additional accomplished strong growth of 23% Year-over-Year facility to produce 95,000 MT per annum of As I reflect on an exceptionally difficult year, one thing (Y-o-Y) to achieve record revenues of ` 3,645 crore. Chloromethanes at Dahej, Gujarat. This will take is clear – we have all been impacted by COVID-19. our total capacity to above 190,000 MT, making SRF The cruelty of this pandemic has been unparalleled In the Specialty Chemicals Business, our ongoing a global player in Chloromethanes. With a new BOPET film line in Rayong, Thailand and and my heart goes out to all those who are grieving efforts to commercialize molecules for both the the startup of our operations in Hungary, SRF’s plants FINANCIAL STATEMENTS the passing of loved ones, to those who have lost agrochemicals and pharmaceuticals segments are Our expansion plans are a big part of our overall now have a combined annual capacity of 270,000 their jobs, and to business owners who have been well on track and we continue to maintain a healthy vision of becoming a strong force in the global tons of BOPET and BOPP films, making us one of the forced to shut down. While it has been a tough year product pipeline for the future. SRF’s Specialty chemical industry and playing a much larger role in biggest producers of both types of films. for many and there are still immediate and pressing Chemicals Business is a ‘Preferred Partner’ with most our customers’ success. matters such as economic relief and equitable and of its global customers and I am happy to share that As I write this note, we are nearing the commissioning widespread vaccination rollout to address, I am we have been honored with the ‘Syngenta Supplier Packaging Films Business of SRF’s first BOPP film plant at Rayong, Thailand. hopeful that better days are ahead. Award 2020 for Performance’ during the year. Back home in India, civil work for SRF’s new BOPP In FY 2020-21, our Packaging Films Business line & Metallizer at Indore is also progressing Through all the challenges, I have deeply admired the As we grow our revenues, we will continue to invest witnessed robust growth of 26% Y-o-Y to achieve as per schedule. resilience of my 7,000 extraordinary colleagues at SRF, in this segment to sustain healthy growth rates record revenues of ` 3,292 crore. Scale, operating who demonstrated dedication and professionalism, over the next few years. In this regard, I am also leverage, better margins, and strong demand With the support of our esteemed customers, we are and kept the business moving forward. I am also pleased to share that your Company will be setting from marquee customers across the globe helped confident of a vertical start-up of all our new lines that grateful to our customers and to you, our shareholders, up a 4th Multi-Purpose Plant (MPP) at Dahej, Gujarat. establish SRF as a renowned player in the global we hope to ramp up to maximum capacities in the for your unwavering trust in the Company. As the Business is growing, it is essential to augment packaging industry. months to come.

8 Annual Report 2020-21 9 It was our highest priority to ensure the health of our My deepest gratitude to the team for their CORPORATE OVERVIEW employees, while also securing operations, supply commitment towards making a positive change chains, deliveries, and service to our customers. in our society. We committed to our employees that we would not eliminate any roles because of the COVID-19 Our Sustainability Performance pandemic. We also implemented efforts to support At SRF, sustainability is a key business driver and employees, including free, on-demand physical, a critical component of our success. In this year’s mental and emotional healthcare programs. Annual Report, we have, for the first time presented As we move forward, we will make every possible a holistic view of our value creation that goes effort to build, develop and retain a diverse talent beyond financials to equally important metrics of pipeline while fostering a culture where everyone Environment, Social, and Governance. We are feels seen, heard, and empowered to thrive. committed to ensuring our business practices are sustainable in every way possible, be it in the adoption of new technologies that enable a better, Our Community Outreach cleaner future or in the way we manage finite Embedded in SRF’s DNA is a responsibility to help resources efficiently and care for our customers,

people not be left behind. During the year, your employees, communities and the planet. STATUTORY REPORTS Company remained committed to support COVID-19 relief work following the second wave in India and On behalf of the Board and management, I once several more initiatives. again wish to thank you, our shareholders, for your continued support. We remain committed to SRF Foundation, the corporate social responsibility creating long-term value for you every day. arm of SRF and our CSR volunteers worked very hard to provide emergency response through the Please be safe and stay well. distribution of family essential kits, kits for frontline Technical Textiles Business induced lockdown, the Laminated Fabrics Business also performed well. SRF’s semi-hot product has workers, vital drugs and hospital support material like Sincerely, Technical Textiles Business had an encouraging been well-received, and we are seeing an increase in oxygen concentrators and ICU beds to the community performance in FY21, aided by a quick recovery in volumes. On the other hand, due to severe oversupply around our plant locations in India and overseas. the tyre industry. Customers continue to favour conditions, margin pressure is expected to continue Besides monetary support to various NGOs working domestic supplies owing to supply volatility, which in this segment. to provide COVID-19 relief across the country, the has resulted in imports substitution. team was also involved in conducting COVID-19 vaccination camps for the local community around Arun Bharat Ram Unlocking full potential Chairman In Belting Fabrics, our focus has been on our plant locations. With the help of professionals, FINANCIAL STATEMENTS customization of fabric required by our customers During the year, your Company raised ` 750 crore from SRF Foundation also set up oxygen generation plants from time-to-time. With our investment in institutional investors by way of Qualified Institutional in Amreli district of Gujarat and the Dhar district of modernization, capacity expansion and technological Placement. I am happy to share that your Company Madhya Pradesh for community use. upgradation, we are aiming to build our Belting received an astounding response from marquee Fabrics facility in Viralimalai, India as one of the global and domestic investors, which is a testament In addition, SRF Foundation has been working on-the- largest single-location belting fabrics sites in of the robust systems and processes that we have in ground to support the educational needs of children the world. place. This is SRF’s future growth capital and going across our intervention schools by bridging the forward, will enable suitable organic growth over the digital divide between rural and urban India, through Other Businesses next twelve-to-eighteen months. innovative methods, so that Learning never stops! Our Vocational Skill training centres are imparting In our Other Businesses, SRF continues to maintain What our people mean to us trainings to the youth to make them employable and market leadership in the Coated Fabrics Business, contributing citizens of our country. with a high-volume share driven by improved sourcing Our strong FY21 performance was possible because initiatives and plant efficiency. Despite the COVID-19 of the passion and tireless effort of our employees.

10 Annual Report 2020-21 11 Our Locations CORPORATE OVERVIEW TECHNICAL PACKAGING TEXTILES BUSINESS films business

• Malanpur Industrial Area, Bhind, • Plot No. 12, Rampura, Ramnagar Road, Madhya Pradesh, India - 477 116 Kashipur, District Udham Singh Nagar, • Manali Industrial Area, Manali, Chennai, Uttarakhand, India - 244 713 Tamil Nadu, India - 600 068 • Sector 3, SEZ Indore, Pithampur, • Plot No. K1, SIPCOT Industrial Complex, District - Dhar, Madhya Pradesh, Gummidipoondi, Thiruvallur District, India - 454 775 Tamil Nadu, India - 601 201 • Plot No. 675, Industrial Area, Sector 3, • Viralimalai, District - Pudukottai, Village - Bagdoon, Pithampur, District - Dhar, Tamil Nadu, India - 621 316 Madhya Pradesh, India - 454 775

• SRF Industries (Thailand) Ltd. Hemraj Eastern STATUTORY REPORTS Seaboard Industrial Estate, 112, Moo 3, Tambon Tasith, Amphur Pluakdaeng Rayong Province, Thailand - 21140 Chemicals • SRF Flexipak (South Africa) (Pty) Ltd. 5 Eddie Hagen Dr, Cato Ridge 3680, Business Durban, South Africa

• Village - Jhiwana, PO - Khijuriwas, • SRF Europe KFT 05/219, Jaszfenyszaru Tehsil - Tijara, Industrial Park, Jaszfenyszaru, 5126 Hungary District - Alwar, Rajasthan, India - 301 019 • D - 2/1, GIDC Phase II, PCPIR, Village - Dahej, District - Bharuch Gujarat, India - 392 130 Other Businesses FINANCIAL STATEMENTS

• Plot No. K1, SIPCOT Industrial Complex, Gummidipoondi, Thiruvallur District, Tamil Nadu, India - 601 201 • Unit No. 2, Plot No. 12, Rampura, Ramnagar Road, Kashipur, District - Udham Singh Nagar, Uttarakhand, India - 244 713

12 Annual Report 2020-21 13 Board of Directors Corporate Information CORPORATE OVERVIEW Auditors Bankers Registered Office M/s B S R & Co. LLP, ICICI Bank (CIN: L18101DL1970PLC005197) Chartered Accountants State Bank of India Unit Nos. 236 & 237, 2nd Floor, Standard Chartered Bank DLF Galleria, Mayur Place, President & CFO Citibank NA Noida Link Road, Mayur Vihar Rahul Jain DBS Bank India Limited Phase I Extension, Arun Bharat Ram Ashish Bharat Ram Kartik Bharat Ram HDFC Bank Delhi, India - 110 091 Chairman Managing Director Dy. Managing Director Vice President Kotak Mahindra Bank Tel: +91-11- 49482870 (Corporate HSBC Compliance) Axis Bank Corporate Office & Company Secretary Yes Bank Block - C, Sector - 45, Rajat Lakhanpal MUFG Bank Limited Gurugram - 122 003, Sumitomo Mitsui Banking Corporation Haryana, India Mizuho Bank Limited Email: [email protected]

IDFC Bank STATUTORY REPORTS www.srf.com BNP Paribas

Pramod G. Gujarathi Dr. Meenakshi Gopinath Lakshman Lakshminarayan Director – Safety & Environment Director – CSR Independent Director

Vellayan Subbiah Tejpreet S Chopra Bharti Gupta Ramola FINANCIAL STATEMENTS Independent Director Independent Director Independent Director

Puneet Yadu Dalmia Yash Gupta Independent Director Independent Director

14 Annual Report 2020-21 15 Scope and boundary

The ESG section of the report reflects the current systems, practices, performance and the various initiatives undertaken by SRF for integrating ESG into their business activities. The report provides information on SRF India entity* only and covers the period from 1st April 2020 to 31st March 2021. Our Approach SRF’s Business verticals to ESG Chemicals Technical Packaging Films Business Textiles Business Business contents Chemicals Business includes Plants in Manali, One plant in Kashipur, two segments, namely Gummidipoondi and Viralimalai Uttarakhand and two plants in 17 Scope and boundary Speciality Chemicals and in Tamil Nadu and Malanpur Indore, Madhya Pradesh (In Fluorochemicals in Madhya Pradesh addition, there are global plant 17 SRF’s Business verticals Plants in Dahej and Bhiwadi facilities in Thailand, South • Largest manufacturer of 18 Key ESG performance highlights located in Gujarat and Africa and Hungary) technical textiles in India Governance Rajasthan respectively 20 and also enjoys a global • State-of-the-art facilities 24 Stakeholder engagement Speciality Chemicals leadership for most of the having capability to offer • Expertise in fluorine chemistry products under this business. innovative solutions in BOPET 27 Materiality assessment and deep knowledge and BOPP Films**. • Technical textiles business 28 Risk Management in a variety of other organic chemistries. offers a wide range • Spectrum of product mix 30 Strategy of high-performance includes transparent, • Capability to produce metalized, coated, and other 34 Value creation model active, non-active reinforcements, covering value added films finding advanced intermediaries both nylon and polyester 36 The Six “Capitals” used in agrochemical yarns and fabrics for various diverse applications in 37 Manufactured Capital and pharmaceutical diverse non-consumer and fast moving consumer goods, industries, custom research lifestyle applications. Food & Agro, confectionery, 41 Intellectual Capital soaps & detergents, solar & synthesis for major • Product basket for technical 44 Natural Capital players in agrochemicals panels, labelling, overwraps, textiles contains tyre cord and pharma space. embossing, etc. 49 Human Capital fabrics, belting fabrics and 56 Social and Relationship Capital Fluorochemicals industrial yarn. • Global-scale fully integrated • Used in varied applications, 62 Financial Capital player in refrigerants & such as tyres, seat-belts, Business Responsibility Report pharma propellants and 64 conveyer-belts and other industrial chemicals. industrial applications • Manufacturer of ozone-friendly refrigerants in India. • Product application in room air-conditioners, pharma, automobile air-conditioners, refrigerators and chillers.

*Chemicals, Technical Textiles and Packaging Films Businesses covered **Bi-axially Oriented Polyethylene Terephthalate (BOPET) & Bi-axially Oriented Polypropylene (BOPP) Economic Performance reported at consolidated level 17 Key ESG performance highlights

7,745 MWh Energy savings through energy efficiency initiatives 792 TJ 30% Energy consumed from Increase in CSR beneficiaries 36 renewables and biomass compared to FY 2019-20 Patents filed 675 MN ltr Recycled water consumption INR 100+ Cr. R&D spend 7%+ 16%+ 6,386 Increase in female employees Increase in gross Total workforce at the management level INR 2.5 Cr. operating revenue compared to FY 2019-20 COVID-19 response expenditure compared to FY 2019-20

Reduction in first-aid cases INR 1,255 Cr. 53 compared to FY 2019-20 Capital expenditure

18 ESG Report 2020-21 19 Governance

At SRF, an effective governance that the compliances with the Focus on sustainability for compliance with the laws and transactions across all levels. framework is one of the key applicable regulations are met Corporate Leadership Over the years, there has been implementing initiatives related The principles enumerated enablers for driving success and stringently, thus demonstrating 1 Team (CLT) a steady evolution in SRF’s to safety, health and environment in the Code of Conduct must creating long-term value for all transparent and responsible CLT comprises of the Chairman, governance framework with a across all business units of SRF. be complied upon by the the Managing Director and its stakeholders. The corporate behaviour beyond legal norms. focus on corporate responsibility, Board members and senior governance structure is SRF encourages a culture of the Deputy Managing Director, The governance framework is management. All Directors/ respective business CEO’s, sustainability and inclusive aligned with the Company’s accountability and responsibility CFO, CIO and CHRO. The CLT growth. SRF follows holistic structured on a three-tier system. Officers are also expected to core values that are deeply for all activities with the provides guidance for making all strategic planning and execution The Business CEOs drive and demonstrate their behaviour in the major business decisions at rooted and practiced across integration of sustainability into process built on the TQM oversee business performance line with SRF’s Code of Conduct the Group level. the organization. The Board is its decision-making processes. principles. SRF’s Board is assisted at the Group-level and present to set the highest standards committed towards creating SRF’s Board has a good mix of by a management team driving performance report to the Board of professional and personal an eco-system which promotes different age groups, experience Business Leadership business growth and compliance on a quarterly basis. The CLT integrity, honesty and ethical effective decision-making, and diverse backgrounds 2 Team (BLT) with governance principles. implements strategies across conduct. SRF’s Code of Conduct is accountability and financial to foster better debate and applicable to the Group, including The members of the team are the organization through the prudence. Robust processes and decision-making. This ensures various heads of functions, The Corporate Leadership Team Business Leadership Team and all its employees, including those systems are put in place that a clear distinction in the roles including marketing, strategic is entrusted to provide strategic Process Owners. of its subsidiaries. sourcing, HR, Finance, IT, support and build organisational pertaining to the Board members direction to drive the ESG agenda Operations and TQM. Business Responsibility Report capabilities for capitalizing various and the Company’s executive of the Company. They ensure Codes and Policies Principle 1 opportunities across all levels. management. SRF has formed adequate capital allocation for The Code of Conduct defines the This reinforces SRF’s commitment various committees under the Unit Leadership effective implementation and Company’s highest standards The figure below highlights the key aspects to operate with highest Board of Directors to enhance 3 Team (ULT) of the Code of Conduct. (For more details, continuous review of key ESG of professionalism to maintain please refer to the ‘Code of Conduct’ standards of integrity, ethics effectiveness in managing key The ULT is led by the plant initiatives implemented by the trust and build sustainable and section, Page 140) and transparency to earn and issues and focussing on critical operations head. The ULT is constituted by the heads respective businesses across the long-term relationships with maintain the trust of its people, areas with subject-specific of different functions within Company. The Director – Safety its stakeholders. SRF’s Code customers, vendors, communities expertise, ensuring objective the plant, such as, HR, & Environment, represented at of Conduct provides a clear and other relevant stakeholders. decisions. The figure below Safety, Finance, Engineering, the Board-level, is responsible guidance for conducting business highlights the key Board Production and Processes. The governance framework committees and the governance places emphasis on the adoption structure formulated at SRF: of best practices to ensure

SRF’s governance structure Key aspects of the Code of Conduct Board Equal employment Director – Safety & Environment and Director – BRR are represented at the Board Sexual harassment Invention/innovation Insider trading opportunity

Environmental Audit Stakeholders Nomination Risk CSR & related regulations Committee Relationship Committee and Remuneration Management Committee governing SRF Committee Committee Conduct with Company Gifts Corporate Leadership Team Conflict of interest customers & suppliers policies and records and entertainment Process Owners

SRF’s Codes and Policies govern the various aspects related to ESG

(For details on composition, responsibilities and main activities of the Board and Board Committees for FY 2020-21, please refer to the ‘Statutory Committees of the Board’ section, Page 141)

20 ESG Report 2020-21 21 SRF’s internal governance mechanism focusses on promoting value creation and lays significant emphasis on Industry Associations SRF continues to collaborate advancement of the industry and ensuring compliance with applicable laws and regulations. SRF has laid out the following policies to ensure As a responsible corporate and work with various industry larger public good. effective governance: entity, SRF aims to create shared associations and forums to Business Responsibility Report value for all its stakeholders recommend measures and Principle 7 Policy on and contribute towards advocate initiatives that foster dealing with industry-growth and nation Related Party building. The Company is a Whistle- Transactions Policy on Materiality or blower Policy Related Party Transactions member of various industry and trade associations and actively Dividend Policy on Material participates in cross-industry Distribution Subsidiary Companies forums to enable sharing of best Policy practices, represent industry Code of Practices concerns and implement various and Procedures for Archival reforms and measures for the Policy Fair Disclosure of UPSI betterment of the industry and society at large.

Corporate Risk Our Codes Management Social and Policies Industry Association Policy Responsibility Policy Refrigerant Gases Confederation of Indian Manufacturers CHEMEXCIL Indian Industry Chemical Council Association SRF has developed a robust system to ensure compliance Regulatory Compliance with its codes and policies. SRF has a defined mechanism to oversee matters related to The Company has established a compliance. An internally developed tool called ‘Compliance The Synthetic & National Centre for Delhi Chamber Values Steering Committee which Manager’ is in place to constantly monitor and update the status Rayon Textiles Export Safety Council Chemical Process Safety of Commerce comprises of the Deputy Managing related to each non-compliance. A defined escalation matrix is Promotion Council Director and other Corporate defined to monitor non-compliance for its businesses. SRF provides Leadership representatives. timely and comprehensible disclosures in all the reports and The Committee has been documents that are filed or submitted to ensure complete conformity entrusted with the appropriate with applicable legal norms. In the current reporting period, there authority to conduct fair and were no incidents of fines levied or non-compliance with respect to transparent investigations of the environmental and social aspects. issues reported and recommend disciplinary and corrective action(s) based on the outcome The Company’s strict adherence to of the investigation. To ensure the Code of Conduct ensures that the veracity of the process, an a defined governance framework independent access is available to is in place that enables businesses the whistle blower for reporting to engage with and provide value any concerns to the Chairman of to the consumers in a responsible the audit committee. During the manner. During the reporting year, year, no complaints have been no case has been filed by any received under the provisions of stakeholder regarding unfair trade the Whistle-blower Policy. practices, irresponsible advertising and/or anti-competitive behaviour. Business Responsibility Report Principle 1 Business Responsibility Report Principle 9

22 ESG Report 2020-21 23 The stakeholder engagement exercise is described in the table below. It enunciates the stakeholder Stakeholder Engagement expectations, modes of communication and the key responsible groups that engage with the relevant stakeholder group.

The Company’s key stakeholders Company’s strategic plans as well communities. The Company has include employees, investors, as actions, thereby making them a process in place to identify key Stakeholder Key Modes of Key responsible suppliers/vendors, regulatory true partners in progress. It is intervention areas based on need group expectations communication groups bodies, customers and local an endeavour of the Company assessment survey. SRF engages communities. SRF believes that it to engage with its internal and with them in partnership with . Business plans, growth . Company website . Managing Director is pivotal to continuously engage external stakeholders through the Government or the local feasibility and stability . Quarterly publication (MD), Chief Financial with relevant stakeholders to various platforms to facilitate communities through various . Better quarterly reports/ of results followed Officer (CFO) and understand their expectations, dialogues on an ongoing basis. Corporate Social Responsibility performance ratios by earning call Investor Relations address their concerns (CSR) activities. Shareholders, and disseminate pertinent Additionally, the Company has Investors . Corporate reputation . Periodic Analysts’ information. This ensures also identified disadvantaged, Business Responsibility Report . Transparent reporting briefing and individual discussions between adequate attention to stakeholder vulnerable and marginalized Principle 4 . Prudent capital allocation requirements and guides the stakeholders from the local fund managers and the . Corporate governance and management team risk management . High Dividend pay-out

The table below highlights the Stakeholder Engagement Process . Reputed brand, high . Customer visits / . Marketing quality and reliable audit and meetings Engage and Monitor . Technical services Identity Plan products consult and Report . Customer recognition/ . Customer Relationship Customers . Product innovation awards programmes Management and environmentally . Customer . Identify internal and . Establish objectives . Engage with . Ensure effective, sustainable products satisfaction surveys external stakeholders and scope of the each stakeholder timely documentation . Timely market / relevant to SRF stakeholder group through of consultation process . Joint development & product updates engagement interviews, etc. and learning points product reengineering . Identify and prioritize . Honour contractual key issues critical to . Allocate time, . Share contextual . Report back to terms and price each of the identified resources information stakeholders on . Timely resolution of stakeholder groups and responsibilities with stakeholders commitments and customer complaints performance related . Ethical Practices . Design engagement . Follow-up sessions to identified material . Maintain confidentiality strategy for feedback issues of customer data on identified . Design modes of material issues . Ensure transparency communication for in the stakeholder . Fair and . Supplier . Sourcing each stakeholder engagement transparent dealing evaluation programme . Consistent business and . Periodic meetings Suppliers economic growth . Visits to . Joint exploration of supplier’s facilities potential opportunities . Maintain confidentiality of supplier data

24 ESG Report 2020-21 25 Stakeholder Key Modes of Key responsible Materiality Assessment group expectations communication groups

. Favourable work culture . Structured and . Human Resources SRF has adopted a systematic identify sector-specific material . Safe and healthy work focussed training approach to identify the key issues across each business. environment programmes Business verticals material issues critical to the After the identification of . IT enablement & Employees . Adherence to SRF’s values Company and its stakeholders. sector-specific material issues Chemicals | Technical Textiles | digitization Packaging Films . Fair and equal using globally recognized compensation . Employee oriented In the current reporting period, an frameworks, industry specific work policies . Learning and development extensive materiality assessment material issues were mapped for Identification of sector-specific opportunities . Adequate grievance exercise has been conducted to each business vertical and a material issues aligned with mechanism for identify and analyse key material benchmarking exercise of material . Fair, transparent, and SASB and MSCI frameworks reporting and redressal issues that may potentially impact issues was conducted, and a regular rewards and value creation for its stakeholders consolidated list of key material recognition . Fair and transparent performance and businesses of the Company. issues for SRF was prepared. Identification of material issues . Regular and constructive management systems It forms the basis for SRF to Deliberation with internal of the industry across each performance management and 360-degree define its key ESG focus areas and stakeholders representing the business vertical and feedback feedback process drive action thereon. three businesses was conducted to . Career development finalise the material aspects for . Periodic open house opportunities SRF followed an inclusive the Company. SRF endeavours to meetings with senior Business-wise consultations approach to assess the key ensure integration of the identified . Appropriate grievance leadership teams redressal mechanisms material aspects relevant to its key material aspects in business . Regular employee business and stakeholders. decisions and drive improvements . Job security engagement and Material issues were identified in the identified areas in the Finalisation of material feedback surveys across the three business verticals, future. Material aspects have been aspects of SRF namely Chemicals, Technical grouped under the three key . Local employment . Social impact . SRF Foundation Textiles and Packaging Films pillars - Environment, Social . Skill development assessment (Corporate Social Businesses. SASB and MSCI and Governance. and education . Joint development Responsibility arm frameworks were considered to of SRF) Local . Local infrastructure and partnership Communities development with local agencies, . Plant-level CSR network partners for Environment . Conservation of servicing wider set of natural environment Energy Management Water and Effluents GHG and Air Emissions local communities . Ensuring health and safety . Local Infrastructure Waste Management Material of nearby community development, structured learning by digital classrooms Social training, providing scholarships, and other Employment Occupational Health & Safety Local Communities necessary support

. Compliance with . Adherence to . Senior Management applicable laws reporting requirements and relevant functions Governance and regulations . Industry representation Economic Performance Corporate Governance Risk Management Regulatory bodies . Participation and on key matters contribution to Total Quality Management various initiatives

26 ESG Report 2020-21 27 Risk Management Key risks identified Mitigation strategies at SRF

SRF has a robust risk management and mitigation strategies defined risks and mitigation plans are . Detailed policy guidelines to deal with key financial risks. framework, integrated with by the relevant stakeholders. reported to the Corporate . Robust processes & systems for ensuring timely reporting and compliance the company strategy and The Committee also assists the Leadership Team for review and with applicable regulatory framework. planning, for identifying and Board in framing, implementing, further reviewed by the Risk Financial managing existing and emerging monitoring and reviewing the Management Committee. Risks business risks. The Company Risk Management Policy and has established a well-defined assists the Audit Committee in SRF has identifiedStrategic, Enterprise Risk Management evaluating the effectiveness of Regulatory, Operational, . Continuous monitoring of the changing regulations, impact assessment, System which encompasses the Risk Management System. Financial, and IT and implementation of statutory compliance, internal audit and external legal identification, assessment, The committee is equipped to cyber-security risks relevant to review (including ESG). monitoring and mitigation identify, assess and manage its business. ESG risks are mapped Regulatory . Liasoning with regulatory bodies and industry associations to bring of risks to achieve business traditional as well as emerging under the appropriate categories Risks systemic changes for the benefit of industries. objectives by implementing business risks, thereby protecting of risks. Some of the measures to vigorous internal control system stakeholder interests, achieving mitigate these risks, include and response strategy well in business objectives and enabling energy optimisation, reduction of advance. The Board has laid sustainable growth. GHG emissions, optimum resource . Implementation of safety and quality management systems, TQM-driven down a Risk Management utilisation, minimizing the usage of processes to eliminate operational risks and contribute to the Company’s Policy and has also established Each business vertical, through the virgin materials, safety culture, strategy for sustained operational success. a dedicated Risk Management Business Leadership Team and risk employee development and Operational . Adoption and deployment of resource efficiency initiatives Committee, governed by the owners, is responsible for tracking growth, etc. The figure below Risks (across energy, water, etc.) Board of Directors, to make and monitoring the key risks gives details on the identified risks . Development and retention of a skilled workforce that contributes to relevant to each business and and mitigation strategies persistent efforts for identifying organisational goals by offering opportunities for learning and development, implements appropriate mitigation adopted by SRF. various types of risks, laying and career growth. mitigation measures and defining plans on a periodic basis. It also future action plan. The Board of ensures that the identified risks Directors, with the assistance of are classified and prioritized into the Risk Management Committee, high, medium and low as per risk Business Responsibility Report . Implementation of new perimeter security mechanisms such as dual monitors and reviews the risks management framework. The key Principle 6 firewalls, internet content filtering, etc. . Implementation of mobile device management for users with critical IT and data leak risk. cyber-security . Ensuring adequate update and maintenance of servers and network Risks devices for added security and data protection.

. Long-term strategic planning and regular management reviews with business teams, Audit Committees and Board meetings. . Strategic sourcing initiative ensuring uninterrupted supply of raw materials. Strategic Risks

28 ESG Report 2020-21 29 Strategy

Considering the volatile and advanced technical support. to lead the way in serving the dynamic external environment, Implementation of various facets emerging needs of customers and and emerging business risks, SRF of the Total Quality Management deliver value over the long run. The details of the ESG strategic focus areas are highlighted in the figure below: has defined key priorities to (TQM) way to create new ensure uninterrupted growth and benchmarks across multiple SRF is currently in the process of business sustainability. dimensions of Quality, Cost, developing a structured ESG SRF’s strategic direction towards Delivery, Safety, Health & strategy encompassing defined carving a sustainable business Environment and Morale (QCDSM). targets and action plan to future is built on its ‘Core Values’ demonstrate progress on a and ‘Aspirations 2025’. Professional reputation and year-on year basis. However, the These together form the guiding value system: In line with the Company’s strategic approach force that drives business core values, SRF strives to attract, coupled with an agile outlook that performance and strengthens retain and nurture talent that ensures the ESG parameters are built into its decision making, market position, while addressing demonstrate high levels of ethics Professional Reputation & the material aspects pivotal to the and integrity while delivering high which further helps in achieving Value System Customer Advocacy performance improvements across Company for enhancing quality products to its customers, Will guide SRF to attract and retain the right Will help SRF to remain agile and the identified material aspects stakeholder value. thereby enhancing the brand value talent, expand with ethics and position the flexible with growth. It will also critical to the Company and and reputation of the Company. products with pride help SRF to remain a preferred The ‘Aspirations 2025’ are stakeholders. SRF’s focus on partner of choice supported by the overarching Core Customer advocacy: Building a adequate allocation of resources and recommendation Values “RINEW” - Respect, customer-focussed, agile and lean to effectively implement systems Integrity, Non-Discrimination, organisation, becoming a trusted, and initiatives is helping in Excellence and Well-being. long-term partner of choice with creating sustainable value on an The values are instrumental in the customers through innovative ongoing basis. The Company will achieving the key pillars of the offerings and strong customer continue to focus on the key aspirations, including operational relationships. strategic areas that have excellence, customer advocacy, contributed in driving pushing boundaries of innovation, Innovation and Technology improvements across the ESG and nurturing talent that enhance Leadership: The Company material aspects. the Company’s reputation and constantly focuses on developing brand value. The details of the key and investing in new technologies pillars of the ‘Aspiration 2025’ are and developing new-age products elaborated below: Operational Excellence Innovation and Will ensure that SRF creates new Technology Leadership Operational excellence: QCDSM benchmarks while Will help SRF maintain its position as Creating new and differentiated sustaining the existing ones leaders in Innovation and Technology, by offerings that deliver superior generating and turning new products or customer value through process ideas into beneficial solutions innovations and improvements in quality, cost, efficiency or environmental benefits, supported by digital technologies for efficiency and reliability. In addition, nurturing a capable workforce that continues to develop new solutions and provide

30 ESG Report 2020-21 31 Risks Material aspects Strategic focus areas Progress in FY 2020-21 Aspirations 2025

. Focus on implementing cutting-edge technology. . Implemented energy efficiency initiatives, leading to energy . Transition to cleaner energy sources to mitigate carbon emissions savings of: ~7,745 MWh Energy . 792 TJ of energy consumed from renewables and biomass Operational management . Drive efforts towards reducing water consumption with water-efficient technologies, recycling and reusing wastewater and . 675 Million Litres of water consumption met through recycled wastewater GHG sequestering rainwater to the maximum extent possible and air emissions . TTB Manali and PFB Indore (SEZ) Plants have installed rainwater harvesting . Emphasis on the principle of 3R – Reduce, Reuse and Recycle and systems to sequester rainwater Operational Water and effluents strive to operate in a ‘closed-loop’ through circularity in operations . Supplying fly ash waste generated onsite for utilisation as raw material in Excellence Waste management . Continuous efforts on local sourcing of raw materials and increasing cement industries Material the use of recycled materials in production . Promote usage of recycled materials as raw materials in production processes Total . Implementation of Total Quality Management (TQM) for meeting Quality management evolving customer aspirations and shifting market dynamics by . TQM led supply chain improvements, enhancement of internal process bringing systemic changes to maximize plant efficiency and deliver efficiency and building a skilled workforce, resulting in over INR 40 Crores Financial diverse solutions of annual savings

. Concentrated efforts on creating a favourable environment for employees to nurture and grow through structured learning and development, career advancement, and rewards and recognition . 81,321 training manhours programme to keep employees motivated and engaged Professional . Increase in female workforce across the management levels by more than 7% Reputation Employment . Build a workplace that thrives on diversity and inclusion, and compared to FY 2019-20 and Value System supports human rights Occupational . More than 90% employee engagement score health and safety . Endeavor to create a safe and secure work environment by Reduction in first-aid cases of employees compared to FY 2019-20: 53 embedding health and safety in the company culture and . IT & Local communities implementing robust systems to ensure well-being of each employee . 18,739 manhours of EHS training imparted to permanent employees Cyber-security . Relentless efforts to empower local communities through community . 1,14,285 beneficiaries of CSR initiatives in local communities initiatives focusing on vocational skills, education, natural resource management, among others

. Emphasis on expanding product portfolio and market presence . Identifying evolving customer expectations and capitalizing . Developed innovative products that are socially and environmentally new opportunities responsible and have zero ozone depleting substances, low global warming Customer potential (GWP), recyclability and low carbon footprint Advocacy Economic . Implement differentiated business strategies, prudent capital Strategic performance allocation, optimum utilization of natural resources to lower . 23 patents granted operating costs, automate processes and strengthen business . INR 8,400 Cr. revenue processes that aid in building a sustainable business model . Dividend pay-out- INR 141 Cr. (INR 24 per share) . Deliver long-term sustainable returns to shareholders by increasing market capitalization and higher dividend pay-out

. Focus on creating an eco-system which promotes effective decision-making, accountability and financial prudence . Zero incidents of fines levied or non-compliance with respect to environmental . Encourages an ethics-driven culture of accountability and and social aspects Corporate responsibility for all activities with the integration of sustainability . Continued to collaborate with industry associations to benefit the industry and Regulatory Governance into its decision-making processes to create value society at large Innovation and Technology Risk management . Constant identification, assessment, monitoring and mitigation of . Continued to identify and manage existing as well as emerging risks through Leadership risks to achieve business objectives the robust risk management framework, integrated with the Company . Focus on robust internal control system and proactive response strategy and planning strategy towards identified risks

For details on progress, please refer to the capitals section.

32 ESG Report 2020-21 33 Value Creation Model The value creation model provides insights into how SRF utilizes business inputs and leverages its business strategy to create long-term value for all its stakeholders, environment and society at large.

LONG-TERM VALUE RESOURCE CAPITAL INPUTS Value creation approach OUTPUT CREATION . Sustainable cash flow and strong . Debt to EBITDA Ratio – 1.59 . Operating cost – INR 6,267 Crore liquidity position aiding robust . Debt to Equity Ratio – 0.51 . Gross Debt – INR 3,468 Crore balance sheet position . Revenue – INR 8,400 Crore Healthy dividend . Cash generating business model . . Cash generated from operations pay-out for investors Financial – INR 1,772 Crore . Unlocking future growth potential Capital . Dividend pay-out – INR 24 per share (INR 141 Crore) . Strong Leadership position . CAPEX – INR 1,255 Crore . Tax paid in key segments . Innovative product solution . Diverse product portfolio with multi-location facilities designed . Plant automation and backward Effective Differentiated integration of value chain . Sales volume expansion to service large customers governance business strategy . Export to 75+ Countries . Efficient manufacturing process Manufactured . Efficient production processes . SRF is the only fully Backward driven through TQM principles Economic Capital integrated manufacturer of Ozone . Optimum utilization of friendly Refrigerant gases manufacturing capacity

. 400+ employees in R&D, . Robust product pipeline with Engineering & Scale-ups Packaging . No. of patents granted in current continuous development (Chemical Technology Group) Films reporting period – 23 . Re-engineering of products in Intellectual . R&D spend – INR 100+ Crore . Total patents granted – 93 collaboration with customers . Process Patents applied – 36 . Commercialization . Ability to handle complex Capital . 5 state-of-the-art R&D facilities of new products chemistries with deep domain expertise

. Structured Learning & Stakeholder Technical Customer Development engagement Textiles centricity . Training man-hours – 81,321 . Health & safety standards as per . Low attrition rate . Talent attraction & retention Best in class practices . Healthy & safe workplace . Productive workforce Human . Employee Engagement . High employee engagement & Capital Survey Score – 93% satisfaction levels . Community investment – INR 10.18 Crore Social . Healthy relationships with Chemicals . Total number of beneficiaries of . Upliftment of the society customers, suppliers and other CSR initiative – 1,14,285 . Build a socially stakeholders, supported by . Stakeholder recognition responsible business Social technology and robust processes and satisfaction . Customer retention Capital . Continuous engagement & long-term relationship with stakeholders Digitization & Operational Innovation excellence

. Strong focus on the use of . Energy savings – 7,745 MWh . Mitigation of renewable energy . Reduction in GHG emissions climate change impact . Renewable energy used – 792 TJ . Adequate waste . Reduction of . Water procured – disposal mechanism environmental footprint 4,613 Million Litres . Efficient use of natural resources Natural . Demonstrating responsible . Total energy and reduced consumption Capital Our values corporate citizenship Environment consumption – 8,615 TJ . Biodiversity preservation

Respect Integrity Non-discrimination Excellence Well-being

34 ESG Report 2020-21 35 The Six “Capitals” MANUFACTURED CAPITAL Delivering high-quality products while achieving

SRF aims to create long-term to include a wider range of factors towards financial and non-financial operational excellence value for its stakeholders through which have a significant impact on value creation. differentiated business strategy, the Company’s performance while resource allocation, robust creating value over the short, SRF has reported its performance business processes, identifying medium and long-term. The idea across identified key material opportunities and mitigating risks, is to foster a sustainable change aspects in the following six and undertaking key initiatives to by promoting an integrated capitals: Manufactured, enhance performance. approach towards corporate Intellectual, Human, Natural, reporting, and reflect the Social and Relationship SRF has made an extension from Company’s philosophy, business and Financial. the traditional form of disclosure strategies, initiatives and strengths

Includes financial value Encompasses physical created for the organization infrastructure, equipment and the various stakeholders and systems to deliver final products

Manufactured Financial Includes relationship Capital Capital between an Builds a culture that organization and promotes research its stakeholders, & development such as Social and and innovation communities, Relationship Intellectual to enhance suppliers, The Capital Capital scientific knowledge customers, etc. Capitals

Includes the human Includes management resources management of natural resources system and employee Human Capital Natural Capital and mitigating negative Key highlights competencies to create a environmental impacts performance-led culture INR 1,255 11 75+ Manufacturing Exports to countries Cr. facilities in India (3 overseas CAPEX manufacturing facilities)

36 ESG Report 2020-21 37 SRF operates businesses across The detailed break-up of the major raw materials by consumption across the three businesses of SRF in the 11 manufacturing plants in India, last two years is highlighted in the graphs below: encompassing the Chemicals, Technical Textiles and Packaging Chemical Business: Key raw material consumption (MT) Films Businesses which serve 126634 several key industries globally. 116323 The Company is a market leader in most of its business 85596 segments across India and 68719 67325 60599 commands a significant presence globally with exports to more 31245 than 75 countries. 30339 19276 16736 The Company has focussed Liquid chlorine Sulphuric acid Flourspar Methanol Ethylene dichloride its efforts towards operating FY 2019-20 FY 2020-21 optimally while delivering high-quality products for long-term value creation. Technical Textiles Business: Packaging Films Business: Key raw material consumption (MT) Key raw material consumption (MT) SRF relies on state-of-the-art plant facilities, stringent quality 38739 101528 107021 control processes coupled with 33172 a strong distribution network which ensure optimum utilization SRF constantly strives to source 75377 73588 and efficient supply chain of manufacturing capacity. raw materials sustainably model that enables delivery of through a strong network of products in a safe and efficient The section below highlights suppliers. For the procurement 13726 35012 12255 29324 29512 32474 manner. The Company has the key raw material consumed of raw materials, the Company rigorous maintenance processes across business segments to works in collaboration with to enhance life of its assets to manufacture products and the producers or suppliers to create achieve the highest level of critical role of TQM system and shared value. The idea is also Caprolactam Pet Chips PET chips PTA MEG PP chips FY 2019-20 FY 2020-21 operational efficiency, enabling processes in delivering quality to gradually expand focus on FY 2019-20 FY 2020-21 products in a cost-effective, and locally sourced materials to businesses to be recognised Figure 5: Key input raw materials consumed at SRF across businesses as preferred and credible socially and environmentally uplift local producers, establish partners. The Company has responsible manner. efficient supply chain and, at the SRF is striving towards established a strong presence same time, mitigate the impacts maximizing the share of Impact of across the value chain through Raw Materials on the environment across the recycled input materials in TQM its manufacturing processes. backward integration, ensuring SRF is aware of the criticality value chain. The PFB – Indore Morale The Company plans to put Quality uninterrupted business operations of raw materials availability (SEZ) Plant is certified as per the concentrated efforts to increase for serving its customers. Understanding the Responsible and consistent deliveries this share and drive its ambition Cost Safety, health & Being cognisant of the perils Sourcing Audit (URSA). in a cost-effective manner. towards manufacturing products Delivery environment Despite the unprecedented of over utilisation of limited in a sustainable manner. resources, SRF is committed to (For details on local procurement and challenges due to the COVID-19 supply chain practices, please refer to the strategy deployment down to and processes to create Business Responsibility Report pandemic, SRF’s motivated sustainable sourcing, optimum ‘Social & Relationship Capital’, Page 56) implementation across levels lasting outcomes in all areas. manpower and resilient business utilisation of natural resources Principle 2 and embedding a culture of The principles result in designing processes enabled continued and use of recycled material for ‘continual improvement’ in all customer-focused and efficient manufacturing operations manufacturing products. Total Quality Management areas. SRF has the strength and business processes that span (TQM) and delivery of high-quality flexibility to adapt to evolving the full product lifecycle from (For details on optimum utilisation of products to its customers in a SRF has adopted TQM as its customer aspirations and shifting product planning and R&D, natural resources, please refer to the “management way” since the market dynamics to deliver through the development stages, safe and time-bound manner. ‘Natural Capital’ section, Page 44) early 1990s, winning the coveted unique and sustainable solutions. setting up of new facilities, SRF’s efficient manufacturing Deming Prize in two businesses. raw material procurement, processes are driven by TQM The TQM way encompasses The TQM way focuses on manufacturing operations and principles and digital interventions organisation-wide activities from the triad of customer, people delivery of finished products.

38 ESG Report 2020-21 39 With customer-centricity at the core, the system establishes INTELLECTUAL CAPITAL systemic improvements to raise organizational Building a culture of innovation through competence to address future challenges. The TQM umbrella R&D and collaboration encompasses principles, methodologies, management systems and tools to achieve the twin aims of creating value for customers as well as improving internal management capabilities for tomorrow.

SRF’s manufacturing plants are accredited to various international standards, viz., ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 standards. In addition, business-specific certifications include ISO 50001:2018 for PFB – Indore (SEZ) Plant, ISO 22000:2005 ingredient in the pharmaceutical by the National Safety Council. for PFB – Indore (SEZ) and industry, is compliant with the At the core of the TQM practices PFB – Kashipur Plants, and Current Good Manufacturing is the Problem-Solving Program HALAL India certifications for Practices (CGMP) regulations. (PSP) which continues to build PFB – Indore (SEZ) Plant, Social SRF’s manufacturing facilities strong capabilities across the Accountability SA 8000:2014 for have over the years, also been Company to solve challenging Chemicals Business and PFB - bestowed with prestigious problems. PSP focuses on Indore (SEZ) and PFB – Kashipur awards and recognition from enhancing the analytical Plants, BRCGS for PFB – Indore various stakeholders, viz., skills of employees. (DTA) Plant, NABL accreditation customers, suppliers and for Chemicals Business and accreditation agencies. During FY 2020-21, the TQM “Responsible Care” certification function created a definitive shift from the Indian Chemical With strong commitment towards towards embracing digitalisation Council. Furthermore, the PFB the various aspects of ESG, SRF initiatives, making relevant – Indore (SEZ) and the PFB has been awarded a number of content available online to recognitions during the reporting employees, using hybrid models – Indore (DTA) plants comply Key highlights to Standards Organization of year. These include ICC Award of training and guidance on Nigeria Conformity Assessment for Excellence in Management of projects, and utilising advanced Programme (SONCAP) as Health & Safety to SRF Bhiwadi, analytics in solving complex per the ISO 15988:2003 and 9th India CSR Award – ‘Best problems. SRF plans to continue 400+ 36 ISO 17555:2003 standards STEM Education Project Through these strategic directional Employees in the Chemicals Patents filed respectively. The Dahej Plant Partnership (Large Impact)’, changes in the future to enable Technology Group (CTG) of Chemicals Business and all 7th Enabling North-east Awards its pursuit of becoming an the plants of Packaging Films as Finalist by the North-East even more customer-focused Business are certified as per the Development Foundation & and agile organisation, with OSHAS 18001:2007 Standard. Digital Empowerment Foundation, a strong foundation built on CII - EHS Excellence Award for operational excellence. 100+ INR 100+ Cr. In addition, one of SRF’s FY 2020-21 and the Occupational Molecules developed R&D spend products, which is a key Health & Safety Award to TTBT

40 ESG Report 2020-21 41 SRF drives business growth Company’s growth. A qualified carbon footprint and sustainable Table 1: R&D and filed 36 patents, taking the SRF has an integrated ERP by integrating Research and in-house R&D team focuses on hydrofluorocarbon (HFC) blends. innovation centres cumulative total to 309. Out of platform for the integration of key Development (R&D) capabilities developing new technologies that SRF is the first Indian company this, 23 patents were granted applications for achieving high st with its core business strategy are used in manufacturing new to obtain the ASHRAE (American Chemicals Business this year. As on 31 March 2021, efficiency levels. The idea is to to attain a competitive edge in chemicals and intermediates for Society of Heating, Refrigerating the Company has a total enhance operating effectiveness, the market. R&D is integral to agricultural and pharmaceutical and Air-Conditioning Engineers) Alwar, Rajasthan of 93 patents rights for its while delivering greater value to the businesses as the Company customers, as well as variants certification for R-467A, a Chennai, Tamil Nadu in-house products. the stakeholders, environment focuses on developing customized of packaging films and technical low GWP refrigerant blend and society. In FY 2020-21, the and differentiated process textile products for different for stationary air-conditioning Technical Textiles Advancing automation and Company undertook several technologies. The Company’s applications. The Company’s application by in-house Business digitalisation initiatives that augmented R&D investments and programs world-class product development patented technology. SRF has embarked upon a automation of various processes. are directed towards meeting centres are equipped with Chennai, Tamil Nadu digital transformation journey For instance, SRF undertook the market demand and customer cutting-edge in-process and The R&D facility for Technical by leveraging new and replacement of paper with digital needs and help in delivering product testing facilities and Textile Business includes pilot Chemicals Technology innovative technologies aligned processes enabled with cloud exceptional performance. technologies for analysis facilities for polymerization, Group (CTG) with the evolving business drives to store digital documents, spinning, twisting and Continuous development and and product development. Gurugram, Haryana needs. The Company has been thereby reducing environmental re-engineering of products in SRF engages and collaborates dipping, enabling ideation and relentlessly working towards footprint. Industrial Internet collaboration with customers with premier research institutes, development of new products, strategically investing in digital of Things (IIoT) has been helps the Company to customers for joint process/ and also raising internal technical Packaging Films solutions and accelerating implemented to improve product handle complex chemistries. product development for capabilities for current products. Business smooth digital transition. In the quality, as well as to reduce The Company focuses on accelerating innovation which Indore (SEZ), Dhar, Madhya Pradesh times of the ongoing COVID-19 power consumption. continuous improvement further enables SRF to augment The R&D center for packaging pandemic, the various digital in current processes and product stewardship and enhance business at Indore is fully Over a period of time, SRF has interventions undertaken In its endeavor to leverage developing innovative skill sets customer experience. equipped with a pilot made capital investments of more by SRF have significantly technology, SRF has developed for new products and process polymerization plant, pilot than INR 200 Crores towards enhanced resilience and and implemented the following development to enable faster A dedicated Chemicals printing, lamination and coating establishing R&D facilities, with helped in developing a digitally modules for some of the growth and sustainability. This is Technology Group (CTG) machine and other high-end an annual expenditure of nearly empowered and agile workforce business segments. coupled with advancements in comprising of more than 400 analytical and testing equipment INR 100 Crores. During the to deliver to its customers in an digitalisation and automation highly motivated researchers to simulate customer processes same period, the Company uninterrupted manner. to deliver greater value are involved in technology on a pilot scale, offering a key to all stakeholders on a development, scaling up advantage to reduce concept-to- continuous basis. and commercialisation of market cycle times. It has Customer Portal: To digitize the flow of information and transactions with customers new manufacturing facilities technology-driven credentials, The entry flows to SRF’s Oracle Order globally harmonized quality Requisition Entry by Customers: Dedicated R&D facility to for the Chemicals Business. Management system as sales orders enable Innovation R&D capabilities are focused on systems and in-house resin SRF’s Aspirations 2025 focuses continuous process improvement manufacturing facilities, allowing Features like periodic balance confirmation, document and developing efficient upstream modifications and Self-service features: on being an innovation driven downloads (Invoices, COA), returnable management, and ad-hoc queries like payments, continuous improvements. Company, with R&D capabilities processes by exploring new orders, pending dispatches etc. at the forefront for developing chemistries and scaling them up Various new solutions have To provide information on the products of the Company, enhance new technologies. To accomplish for successful commercialisation. been developed in the areas Customer chatbot: customer experience and facilitate the process of customer enquiry this, SRF has committed SRF also incorporates social of printability, enhanced substantial effort, funds and other and environment risks and performance, metallized and resources towards R&D activities concerns such as effective see-through barriers, aesthetics SOUL: E-learning solution launched for employee training and development and industrial functionalities. and have set up five dedicated handling of by-product streams ATS: Complete automation of the entire recruitment process R&D centres located across Tamil during process development Details of the R&D and innovation Nadu, Rajasthan, Haryana and and product manufacturing. centers at SRF are listed in the Table 1. Madhya Pradesh. The Company has been focusing With the onset of the COVID-19 pandemic and the subsequent measures imposed to limit physical interaction, on developing environmentally SRF worked on accelerating the digital footprint across geographies and business processes, which enabled The Company’s R&D facilities, sustainable products with lower improvement in business efficiencies as well as helped reduce the carbon footprint. For instance, SRF engineering labs and pilot global warming potential (GWP), has launched the Business Process Management (BPM) platform to convert manual processes into digital plant facilities are key to the lower ODS potential, lower workflows, automated data analytics and exception reporting, thus enabling faster decision making.

42 ESG Report 2020-21 43 NATURAL CAPITAL Key highlights Optimising the use of natural resources for a sustainable future 7,745 MWh 792 TJ Total energy savings Energy consumed from renewables and biomass 675 Mn Ltrs 3 Mn Ltrs Recycled wastewater consumed Rainwater harvested and reused

Key strategic focus areas for climate change mitigation and environment protection

Energy efficiency Increasing Water Effective Commitment & carbon the share of conservation waste management to biodiversity emission mitigation renewable energy practices

Energy Management During the current reporting Being an energy-intensive period, the total energy industry, SRF constantly strives consumption at SRF was 8,615 TJ, to optimize energy consumption of which 7,067 TJ was direct across its operations and reduce energy and 1,548 TJ was indirect the associated carbon footprint energy. About 522 TJ of energy to fight climate change. As part was consumed onsite utilizing of SRF’s strategy towards energy rice husk, groundnut shell and management, high importance mustard husk as fuels in the The Company is driving beyond the legal mandate by SRF has implemented the ISO is placed on the implementation biomass boilers. concentrated efforts towards deploying stringent environmental 14001:2015 Environmental 792 TJ of energy management systems Energy consumed from optimum utilization of natural management practices. The Management System Standard and processes, efficient utilization In FY 2020-21, energy resources by investing in various Safety, Health & Environment across its Chemicals and of energy, deployment of renewable sources and consumption from renewable resource efficiency initiatives. Policy extending across Packaging Films Businesses. innovative and state-of-the-art biomass in FY 2020-21 sources was 270 TJ, of which 124 As a responsible organization, businesses and Group, reinforces Under the aegis of this standard, solutions to reduce demand TJ was from purchased green SRF aims to strike a balance the commitment of the Company SRF conducts aspect-impact and increase the share of electricity. Currently, the total between progressive industrial towards environment protection. assessment and Environmental renewable energy sources in the plant capacity from renewable growth and conservation of Impact Assessments for both new Company’s energy mix. energy sources is 18.95 MW, natural resources. SRF adheres Business Responsibility Report projects or expansions, using which includes an onsite solar to all applicable environmental Principle 6 third-party specialized services in power plant with an installed norms and strives to perform the relevant field.

44 ESG Report 2020-21 45 capacity of 5 MW and an offsite Board or the respective State includes reducing water SRF Indore (DTA) unit of rainwater harvesting systems. to reduce dependency on wind power plant with an installed Pollution Control Boards. consumption with water-efficient Packaging Films, Manali, Gwalior The harvested rainwater is freshwater sources. capacity of 13.95 MW. technologies, recycling and & Viralimalai Plants of Technical utilized within the plant premises Business Responsibility Report reusing treated wastewater in Textiles and Bhiwadi Plant of for cooling and manufacturing Waste Management The Company continues to take Principle 6 operations, and enhance rainwater Chemical Business are zero liquid processes, respectively, Tackling the challenge of waste up various energy efficiency harvesting initiatives. discharge facilities. This means thereby reducing dependency management requires a circular initiatives by implementing new Water Management 100% of treated wastewater is on freshwater. economy approach, including and innovative technologies and At SRF, water is recognized as In FY 2020-21, about 4,613 million reused within the facility, ensuring reduction in waste generation and focusing on increasing the share a critical resource for business Litres of water was procured from no discharge to the external Additionally, with an endeavor to exploring opportunities to recycle of renewable energy sources. continuity across the entire various sources including state environment. Recycle water is increase groundwater table, CB and reuse waste. SRF focuses The Company’s endeavor is to value chain. SRF is making municipal corporation, third-party used in manufacturing process, – Bhiwadi Plant has constructed on reuse of large part of process replicate these best practices concentrated efforts to ensure water, etc. Additionally, 675 million gardening, flushing or cleaning earthen dams in neighboring waste back into production across all sites. (For the key efficient water management Litres of total water consumption purposes within the plants. villages for the benefit of the local to reduce the use of virgin initiatives, please refer to the to reduce dependency on was met through recycled Treated wastewater quality communities. (For details, please raw materials. ‘Director’s Report’ section) freshwater and ensure optimum wastewater. The graphs below parameters for all wastewater refer to the case study titled, utilization. The Company’s depict the water procured and the treatment plants are monitored ‘Natural Resource Management (For details, please refer to the Business Responsibility Report strategic focus areas towards recycled wastewater reused within and maintained as per (NRM) Project’ under the Social ‘Manufactured Capital’ section, Page 37). Principle 6 effective water management the plants across SRF: the legal norms. and Relationship Capital). PFB – Kashipur Plant has also To efficiently manage waste, SRF Emissions There has been a continued installed rainwater harvesting diligently follows the principle Water procured Wastewater recycled focus on rainwater harvesting for system for groundwater of By implementing various energy (Million Litres) (Million Litres) 3R – Reduce, Reuse and efficiency measures, coupled with groundwater recharge as well recharge. In the coming years, Recycle and strives to operate the use of renewable energy, 4,613 as utilization within the Plants. SRF aims to expand rainwater in a ‘closed-loop’ through 4,242 circularity in operations. SRF is constantly driving efforts As on date, PFB - Indore (SEZ) harvesting across all its facilities to reduce its carbon footprint. and TTBM Plants have installed SRF’s Fluorochemicals Business is the first chemical company in India to obtain the ISO 14064-1:2006 796 675 certification for the verification of GHG emissions. In the past, SRF FY 2019-20 FY 2020-21 FY 2019-20 FY 2020-21 also implemented an approved CDM project for incarceration of HFC-23. The project helped in reducing emissions in the range of 3 to 4 Million tCO e. 2 Reduction in freshwater SRF has implemented real-time consumption by utilization of air emissions monitoring system ETP treated water at Dahej Plant to ensure that emissions from the manufacturing processes are minimized. Necessary checks are in place to keep the air Results emission levels well below the permissible limits defined by the In FY 2019-20, In FY 2020-21, State Pollution Control Boards. freshwater intake freshwater intake During the reporting year, there reduced by reduced by has been no instance of show cause or legal notices received 16,500 KL/month 25,000 KL/month from the Central Pollution Control

46 ESG Report 2020-21 47 Along with a strong emphasis authorized waste management has undertaken proactive on minimizing waste generation, agencies and other industries measures to study and manage HUMAN CAPITAL SRF carries out the careful for efficient and optimum biodiversity in and around its segregation towards efficient disposal in an environmentally plant locations. Environmental An agile workforce for inclusive growth handling, storage and disposal responsible manner. Impact Assessments are carried of waste materials across all out, wherever required, to its facilities. The Company has Business Responsibility Report ensure business operations standard operating procedures Principle 2 & 6 are conducted in a way that for safe handling, storage and protect biodiversity in the disposal of waste generated Biodiversity Management neighboring communities. across all facilities. During the SRF believes that rich reporting period, there has been biodiversity plays a pivotal no incident of any significant role in the development of spills at the manufacturing plants a healthy and sustainable or during the transportation of environment and encourages waste for disposal. The Company efforts to conserve and promote is collaborating with several biodiversity. The Company

‘My Garden’ in SRF’s plant located in Tamil Nadu

SRF has developed two ‘My Gardens’ in the periphery of the Technical Textile Business’s plant in Thiruvallur district in Tamil Nadu. The objective was to develop greenbelt in the area and encourage biodiversity. To implement this initiative, employees proactively engaged to spread awareness and participated in the plantation of saplings. 50 fruit trees and 40 rose saplings have been planted so far.

SRF considers human capital There is a strong focus on a safe and secure workplace as one of the key enablers for creating an engaging experience for its employees. successful implementation of their for employees by providing a business strategies. The Company favorable working environment Through the Talent lays great emphasis on building that offers opportunities to Transformation Framework, a culture of learning and growth develop skills, maintain high SRF constantly encourages to nurture the talent pool. standards of health, safety and people to learn, develop and SRF’s core values ‘RINEW’ well-being and ensure inclusive discover the potential for are always upheld at all levels growth. Health and safety professional growth within the within the organization, and parameters are considered to organization. This has helped thus ensure the achievement of be of paramount importance, SRF in building an engaging and both organizational as well as and thus the organization lays productive workforce to achieve personal goals. great emphasis on building organizational objectives and create long-term value for all.

48 ESG Report 2020-21 49 SRF provides a healthy work Our workforce is skilled to Key highlights environment and offers equal handle various roles at our growth opportunities to all its manufacturing facilities employees. The Company’s and undergo formal skill 6,386 18,739 hrs leave policy includes provision development through a rigorous Prominent Total workforce (Management and EHS training imparted to for maternity and paternity implementation of the skill matrix leaves for all married employees. methodology. Regular trainings Training Modules non-management Staff) permanent employees In addition, various flexible along with learning and • Safety leave options such as marriage, development e-modules play a • Legal compliance bereavement, and celebration vital part in keeping the employee • Prevention of leaves for employees are also spirits high, improve performance 53 7% sexual harassment available. Sabbaticals are also and retain talent. Reduction in number of first-aid cases for Increase in female workforce (across offered to eligible employees. – SRF Online University of all employees compared to FY 2019-20 management levels) compared to FY 2019-20 SRF offers training methodologies Learning, is in place to monitor Training and Development that are tailored to the job training plans and training hours SRF is committed towards profiles and business segments. for the employees. For the Human Resources Diversity and Inclusion disability inclusion by providing the professional development The training modules are broadly non-management staff, the Management SRF is committed towards equal opportunities to persons of its workforce and has classified under the following training need identification The Company focuses on building an inclusive workplace with disability. carefully created a conducive three categories: Technical, process is manual, and the attracting, developing and that encourages the principles environment that encourages Behavioural and Functional. Company is in the process of retaining the right talent of diversity and inclusion and During the current reporting employees to acquire new skills Training needs of each employee automating the system in the across its business verticals. ensures equal opportunity period, the female workforce and build on their competence are identified, and a training coming year. The table below without any discrimination based SRF diligently promotes across the management levels levels. SRF has a structured calendar is developed after gives a highlight of the training on gender, age, caste, race, has increased by more than diversity and inclusion, human approach towards training and consultation with employees hours of SRF’s workforce religion, etc. SRF recognizes the 7% compared to FY 2019-20. rights, continuous learning and development of management and their managers. In addition, over the last two years by uniqueness of each individual and During the same period, SRF development for skill upgradation and non-management staff. a training portal called ‘SOUL’ employee category. and employee engagement to accepts and respects individual also employed 15 people create a value-based culture differences. The Company has with disabilities. where employees excel along taken proactive steps to maintain gender diversity, create a mix Business Responsibility Report with business growth. S. No. Total training hours FY 2019-20 FY 2020-21 of diverse work experience and Principle 3 backgrounds, and encourage 1 Senior Management 1,309 512

Detailed break-up of SRF’s workforce is presented below: 2 Middle Management 5,372 4,560

FY 2019-20 FY 2020-21 3 Junior Management 17,912 16,276 S. No. Total employees by category 4 Non-management Staff 83,927 35,120 1 Senior Management 64 2 70 3 2 Middle Management 193 16 191 16 TOTAL 1,08,520 56,468 3 Junior Management 558 76 606 82 4 Non-management Staff 5,241 149 5,267 151

TOTAL* 6,056 243 6,134 252 In brief, during the year 76% of During the current reporting for a shorter duration keeping *As on 31st March 2021, SRF employed 4,855 temporary or contractual employees. Business Responsibility Report Permanent employees, 85% of period, training hours have in mind the virtual environment During FY 2020-21, SRF also hired 5,115 temporary or contractual employees. Principle 3 Permanent women employees, reduced compared to the and attention span of employees, 97% of Casual/Temporary/ previous year because of thereby impacting the total Employee FY 2019-20 FY 2020-21 Contractual Employees and 93% the shift to online mode of training hours. The Company S. No. turnover by category of Employees with Disabilities training due to COVID-19 crisis. continues to endeavor to were given safety / skill During the reporting year, transition towards a hybrid 1 Senior Management 6 - 2 - upgradation training. classroom trainings have been model (a combination of digital 2 Middle Management 20 2 28 2 discontinued to maintain the platforms as well as classroom 3 Junior Management 78 12 53 9 Business Responsibility Report COVID-19 protocols. Most of trainings) to impart behavioral 4 Non-management Staff 241 24 356 13 Principle 3 the digital trainings have been trainings, thus enabling a TOTAL* 345 38 439 24 larger impact.

50 ESG Report 2020-21 51 on any grounds either in hiring key concerns, and gathering fair and independent manner process or among employees and suggestions for future while maintaining respect for prevention of sexual harassment. improvements. During the year, confidentiality. SRF has zero tolerance towards overall engagement score as per violation of human rights across Employee Engagement Survey • An annual employee feedback the organization. 2020 was 93%. This rate has survey is conducted to address consistently increased over the employees’ concerns and to Clearly documented policies last few years. In addition to this, seek suggestions to bring and procedures are in place several other periodic surveys, positive changes to the culture to ensure effective resolution open houses and meetings of the Company. in case of any violation. with senior management are This forms the foundation of conducted to give employees Labour Relations the Company’s commitment ample opportunities to voice SRF greatly values the healthy towards ethical conduct across their opinion. The Company also labour relations that the all levels. The Code of Conduct regularly reaches out to its former organization has been able and Whistleblower Policy employees to collect unbiased to develop at its businesses mandates and helps in ensuring views on improvements that can and plants. The organization that employees take utmost be incorporated. The current places a lot of focus of catering care while selecting vendors, eNPS* score is much above the to the leadership needs of business partners, suppliers, etc. industry average. people and provide multiple avenues to satiate this need by Performance Management promoting a sense of openness in Automation and Analytics in SRF maintains strict adherence *eNPS is a score that indicates way of leading various groups and Feedback the working environment. HR towards mitigating human rights Another critical aspect of Over the last few years, SRF’s violation within the organization. a former employee’s willingness and committees formed such employee development and With deeply integrated functions Human Resources team has During FY 2020-21, there were no to re-join the Company. This is as the transport committee, career advancement is the and processes across the focused on automation of almost complaints or incidents relating calculated independently by an the canteen committee, etc. system of regular performance organization, the Company all transactional processes so to child labor, forced labor, external agency. In addition, developing a strong feedback and appraisal for provides a platform to grow that HR can spend more time involuntary labor, discrimination bond with not just the employee employees. In terms of through job rotation, skill with people, understanding their or sexual harassment at SRF. Grievance Mechanism but also his family helps SRF the evaluation process for enhancement and career needs and offer support wherever SRF offers several platforms to nurture long term healthy Business Responsibility Report employees, periodic performance advancement opportunities. needed. In addition, special seek feedback and suggestions relations. Overall welfare of the assessments are conducted, focus on building analytics on Principle 3 & 5 from its workforce to build an employees and their families inclusive culture across the and feedback is duly provided Rewards and Recognition ‘People Data’ has aided effective remain a focus area. for improvement. SRF has a To motivate and retain talent, decision making. Employee engagement organization. This is done through performance management system SRF has put in place a Rewards Empowerment and well-being well-established grievance The Company has established of employees are of utmost mechanisms, feedback surveys, employee associations, that has evolved with time. and Recognition Programme Human Rights The organization ensures proper that is purely based on merit SRF is committed to keep importance at SRF and employee associations, etc. recognized by the management, evaluation of management cadre and focuses largely on instant human rights intact across its there is a strong belief that to provide a platform for dialogue employees on the achievement gratification. This has been organization as well as across motivated employees are a • A grievance mechanism system between the management status of their key performance established on the principles its business partners. The Code key to organizational success. known as the ‘People Redbook and employees. This helps indicators. During the reporting of fairness and transparency. of Conduct and Whistleblower Regular employee engagement System’ is in place to provide in seeking suggestions and year, all employees across The Rewards and Recognition Policy sets out the commitment programs are conducted to a platform for employees resolve issues in a fair manner the senior, middle and junior Programme encompasses of the Company to protect ensure strong bonding between to voice their grievances on a continuous basis. management levels received monetary rewards, non-monetary human rights. The Company the employees and the Company. and ensure they are heard. About 17% of the permanent performance feedback and rewards and informal day-to- provides a safe and productive These initiatives also ensure Offices and plants are equipped employees are members of the underwent a formal career day appreciation across the work environment through the a connect between SRF and with adequate complaint employee association. development review through the organization. Apart from implementation of systems, the family members of the and suggestion boxes where Business Responsibility Report performance appraisal system. exceptional performance, SRF processes and structured training employees. The Company has a employees and workers can Principle 3 SRF’s 360-degree feedback also rewards employees for programmes pertaining to structured process for conducting anonymously submit their mechanism also assists managers their long service. human rights norms and policies, an annual employee engagement grievances. The grievance in modifying their working including prohibition of child labor, survey for identification of various procedures clearly highlight style from time to time, while forced labor, discrimination based key areas of improvement, the resolution process in a

52 ESG Report 2020-21 53 The graphs below highlight Health and Safety Training hours for permanent employees EHS Committees the health and safety The Company endeavors to covering aspects related to SRF has created EHS Committees performance* over the last create awareness and embed environment, health and safety. to bring about a behavioral two years. health and safety in the Company change on health and culture by delivering robust During the current reporting safety across all its facilities. Number of first-aid cases health and safety trainings period, EHS training hours These committees comprise to its workforce to ensure have reduced compared to FY of employees from both the well-being of each employee. 2019-20 levels largely due to management as well as the 153 Since SRF believes that achieving safety protocols arising out non-management workforce. 100 a safe work environment is of the COVID-19 pandemic. The purpose of these committees a responsibility shared by all Classroom’s trainings have been is to ensure that all operations employees, such trainings help in discontinued and the Company meet the requirements of the developing a culture where each has transitioned to the online organization’s EHS Policy and FY 2019-20 FY 2020-21 individual takes responsibility of mode to deliver trainings to its any relevant aspects concerning maintaining high standards of employees. Online trainings were health, safety and environment health, safety and well-being. offered in shorter duration to are diligently dealt with. SRF has Number of Lost Time Injuries This ensures the presence of enable better retention by the placed systems to monitor and competent safety practitioners trainees, thereby impacting the address issues at an early stage across business operations. training hours. to take pre-emptive measures The table below details the and report near-miss incidents. break-up of total trainings Occupational Health and Business have been certified 15 12 S. No. Total EHS training hours for permanent employees FY 2019-20 FY 2020-21 Safety in accordance with the OHSAS 18001:2007 Standard, which is an 1 Permanent employees 42,768 18,739 Safety is an integral part of FY 2019-20 FY 2020-21 SRF’s business philosophy. As a international occupational health responsible organization, SRF and safety management system. S. No. Category Unit FY 2019-20 FY 2020-21 strives to ensure a safe and Also, these plants conform 1 Management members in the health & safety committee No. 174 174 Million man-hours worked healthy working environment to the Five Star Occupational 2 Non-management members in the health & safety committee No. 193 177 for its workforce. The Company Health & Safety Standard. SRF is TOTAL No. 367 351 is committed to design, also pleased to highlight that manufacture, handle, store the Bhiwadi Plant of Chemicals and distribute its products in Business has recorded zero major Creating a safe workplace amidst the rising COVID-19 pandemic accidents in the last 19 years. 25.07 a healthy and safe manner 23.60 Amidst the rising COVID-19 cases across the country, operations at SRF were shut down in order to help to ensure well-being of curb its spread. SRF realized that to bring in employees to the plants to meet the business requirement Compared to FY 2019-20, there employees, stakeholders and the FY 2019-20 FY 2020-21 while complying with regulatory norms, a safe and secure workplace was needed. SRF got into action to has been a reduction of 53 communities at large. draw out immaculate plans and procedures. SRF ensured that the employees remain motivated, satisfied first-aid cases or cases involving and safe throughout the COVID-19 situation, while effectively contributing to organisational goals. SRF’s approach for a healthy minor accidents for all employees and safe working environment across SRF. During the reporting Lost Time Injury Frequency Rate (LTIFR) per million • Deploying extensive • Ensuring supplies, including for its employees is centered year, there has also been no Some of the major man-hours worked initiatives were directed communication including health/ food and medicines to around accomplishing the culture case of dangerous occurrence, travel-related advisories. employees in need. towards: of zero injury/fatality/accident i.e., cases involving bursting • Ensuring scheduled sanitization of • Tie-ups with virtual • Staying virtually connected incidents at its plants. SRF strives of a plant due to higher steam workplace, vehicles and rest rooms. doctor programs to assist with employees. to achieve this by following the pressure, collapse or failure of a • Enforcing guidelines for security employees in need. • Reaching out to personnel and admin staff in • Creating awareness on safe guidelines of the Company’s crane, explosion, fire, burst-out, employees in distress. Health and Safety Manual and leakage of molten metal, collapse maintaining discipline. and healthy work practices for • Implementation of guidelines 0.60 0.51 • COVID-19 Insurance all employees and imparting initiatives led by health and of any infrastructure, leakage and measures for ensuring social Policy coverage. behavioural trainings. safety committees across the incidence of toxic gases or distancing and safe hygiene FY 2019-20 FY 2020-21 • Identifying areas of potential organization. Additionally, all the hazardous substances, bursting of practices for common services. • Providing financial assistance to employees in need. health hazards and taking Plants of SRF’s Packaging Films centrifugal machines, etc. *The health and safety performance data necessary actions. pertain to all employees across SRF.

54 ESG Report 2020-21 55 SOCIAL AND RELATIONSHIP CAPITAL Corporate Award for Excellence Create long-term relationships with stakeholders and contribute to the upliftment of local communities in CSR by the President of India

‘CSR in Challenging Circumstances – North India’.

SRF strives to maintain in the local communities. Committees, etc., to strengthen mutually respectful and The Foundation also implements implementation of the projects. beneficial relationships with initiatives by collaborating with its stakeholders, including the Government, Corporates CSR initiatives of the Company customers, suppliers, and and NGOs. This helps in are focussed on disadvantaged, local communities that thrive expanding the reach and vulnerable and marginalized in the vicinity of its plants. addressing pressing issues in stakeholders from the local The Company puts relentless larger communities through communities. The Company has efforts to create a positive impact effective mechanisms. After the a process in place to identify key on local communities to empower implementation of the initiatives, intervention areas based on need them and contribute to the Impact Assessment Study is assessment survey. SRF engages socio-economic upliftment of the conducted to assess the impact with them in partnership with society at large. created on local communities. the Government or the local For instance, the SRF Foundation communities through various Upliftment of local carried out impact assessment Corporate Social Responsibility communities studies of Mewat Rural Education (CSR) and Affirmative To create a meaningful impact Program and Mewat Rural Action Interventions. in the lives of the communities, Vocational Program in association SRF places a firm belief on with International Management In FY 2020-21, SRF spent nearly having a purpose intrinsic to the Institute to assess the impact INR 10.18 Crores on various CSR fabric of the society. The SRF of its efforts. activities, including education, Foundation spearheads all the Natural Resource Management CSR-related activities in India, To ensure successful adoption (NRM), art & culture, etc. Key highlights running one of the largest and sustainability of the During the same period, SRF community programs in and community development also spent INR 2.5 Crores as around SRF’s manufacturing plant initiatives, SRF undertakes all COVID-19 response expenditure. locations as well as in other parts its CSR activities in partnership Beyond the CSR contributions, INR 10.18 Cr. INR 2.5 Cr. of the country. with the local communities. SRF also contributed INR 1.0 Total community investments COVID-19 response expenditure The communities not only Crore towards the Madhya SRF Foundation plays an active engage with the project planning Pradesh CM Relief Fund to help role in championing the cause and implementation phases, mitigate the economic impact of quality education, vocational but also take full ownership of the COVID-19 pandemic. skill development, promotion of the projects. To ensure Some of the key initiatives are 1,14,285 23,775 of art & culture, preventive active community participation, highlighted below. Total number of beneficiaries COVID-19 response beneficiaries healthcare and natural resource SRF has also formed various management. Need Assessment community-based groups, Business Responsibility Report Survey is conducted to identify such as School Management Principle 8 the key areas of intervention Committees, Village Development

56 ESG Report 2020-21 57 COVID-19 response Digital Education Program

As the plight of people worsened due to the COVID-19 pandemic The Digital Education Program has a vision to transform India into a restrictions and the subsequent loss of livelihood, the SRF Foundation digitally empowered society and knowledge economy by imparting stepped in to protect the lives of people in the communities. It was quality education and developing digital skills. ensured through effective distribution of grocery and food packets, masks, sanitizers, gloves and PPE kits to those in need. During the The project is implemented by SRF Foundation in collaboration with uncertain times, the SRF Foundation also extended its support to various government departments and functionaries such as State/ the local NGOs, government officials, local administration, healthcare District Education Departments, private, local and village institutions, workers, police personnel and other essential service providers. panchayats, etc. The focus is on improving infrastructure and Apart from providing essential items, medical kits, temperature guns, academic facilities and promoting digital-based learning. ICU cots and meals distribution, financial assistance was provided to the communities, as well as to hospitals and government authorities. Nearly 240 employees have been involved over the entire span Nearly 100 employees of SRF have been involved throughout the of the project. implementation of the program. 1,36,311 students, 2,161 teachers spread over 472 schools and 1,11,095 community members in 19 locations and across 9 states Impact created: 23,775 beneficiaries across 8 locations in India have benefitted from this program.

Impact created: 1.3 lakhs students; 2,161 teachers; 1.1 lakhs community members | 9 States Natural Resource Management (NRM) Project

The NRM project continues to reach the marginalised sections of the Vocational SKILLS Program society and improve their livelihood by adopting the watershed-based practices and environment conservation approach. Hydrological and The SRF Foundation has initiated the Vocational Skills Program Environment studies have been conducted in 35 villages around with the mantra of ‘Connect the Unconnected’ to provide SRF Bhiwadi Plant in the Tijara block where rainfall is below normal. economic security to the rural youth, by making both the skills and Based on the study, 206 earthen dams have been constructed till opportunities available to them. date for harvesting rainwater. The aim is to recharge groundwater equal to double the amount of extraction at the Bhiwadi Plant. The SRF Foundation works in a collaborative manner, wherein, it The project also helped local farmers by levelling 1,850 hectares partners with every stakeholder that can or does play a significant of privately-owned barren and gullied lands and planting 3.5 lakh role in imparting the necessary skills and develop employable youth Aruneem plants. 15 employees of SRF have been directly involved in to secure their livelihood. the implementation of the project. Out of all the trainees trained since 2011, majority of them have secured placements and the rest of them have opened their Impact created: 8,700 people | 35 villages, Alwar own businesses.

The impact assessment of the program has been conducted twice and 60 employees of SRF have been involved in the implementation of the program since its inception.

Impact created: Nuh: 100 students every year since 2011; Gwalior and Gummidipoondi: 200 students every year since 2018 | 29 Villages

58 ESG Report 2020-21 59 Partnering with customers Product labelling Business also follows all applicable in their growth SRF is cognizant of the criticality international rules and regulations, SRF undertakes various initiatives of providing adequate product such as, Globally Harmonized for nurturing relationship with its information on all its products System (GHS), Classification, customers to secure the position to ensure transparency with Labelling and Packaging (CLP) of a trusted and long-term its customers. SRF largely notification, International Maritime partner of choice. The values manufactures intermediates and Dangerous Goods (IMDG) Code, are built on the foundation of supplies to industrial customers. etc., while displaying information long-term, transparent and The Company provides the on product label. trust-based relationships through necessary information and Business Responsibility Report continuous engagement and instructions for use of its products, innovation. Customer feedback product grade, dimensions, gross Principle 9 is of immense importance for weight and other necessary Sustainable product offerings SRF. Thus, the Company seeks regulatory requirements, as Considering the growing demand customer feedback through applicable. Additionally, material of customers for environmentally customer satisfaction surveys facts sheet, safety instructions, and socially responsible conducted in a periodic manner. precautions to be taken while products and the grave issue Robust systems and resolution handling the product, Hazard Class of climate change, SRF has mechanisms are in place to ensure in case of hazardous materials, been consciously driving its other parameters. This not of corrective action plans to customer feedback is incorporated and any other specific information Sustainable supply chain resources to develop sustainable only generates value for the ensure gaps are corrected in and corrective action is taken. requested by the customer SRF procures all the key products. The Company aims is also shared. raw materials from reliable Company, but also helps in a timely manner. Based on the to manufacture products taking As on 31st March 2021, and sustainable sources by mitigating the inherent risks outcome of the assessment, into consideration the social and overall SRF had 7.85% of In addition, the Chemicals establishing strong relationship associated with its intricate rating is also provided to environmental concerns, risks and pending customer complaints Business also labels the Zero with suppliers and other business supply chain. For instance, the key suppliers. opportunities. Some of the key for resolution. ODS potential in their products, partners to ensure uninterrupted Chemicals Business at SRF has products are highlighted below: wherever required. Over and operations and business a Code of Conduct in place Sustainable sourcing of materials Business Responsibility Report above the mandated state and continuity. SRF has introduced that assesses the ESG aspects is a key focus area. SRF places Principle 9 national laws, the Chemicals digital interventions to combat (Health and Safety, Human reliance on local sourcing, supply chain disruptions and Rights, etc.) of their strategic wherever possible. Across SRF, has put efforts to automate suppliers. The Business carries 50-75% of key raw materials are processes using the Business out a periodic self-assessment sourced locally. As a constant Process Management platforms. of vendors and suppliers in endeavour to optimise natural In some of the key segments, accordance with the SA 8000 resource management and Socially and environmentally SRF also plans to integrate the standard. In addition to this, continually improve on the customer and supplier portals to SRF undertakes the supplier environmental performance, responsible product offerings by SRF gain a good control on the key quality system assessment During FY 2020-21, the Packaging supply chain metrics. For the and development exercises Films Business consumed about 45 MT/month of PET flakes • R125 refrigerant gas is ozone-safe and has zero ozone depleting sourcing of critical raw materials, on a periodic basis for its key and Recycled PET Resin at substances (ODS) the Company has entered into suppliers by evaluating them long-term contracts with the on various parameters, such as, its Kashipur plant. This share • R422B is a non-toxic/non-flammable refrigeration gas, vendors for continuous supply Resource Management, Planning constituted nearly 8% of the that contains zero ODS and has a very low global warming and formulae-driven price of Product Realisation, Design total A-category raw material potential (GWP) discovery agreements. and Development, Production, consumption of the plant on an annual average basis. • Low-micron Packaging Films offer low carbon footprint with Compliance to Environmental sustained quality parameters The Company firmly believes requirements and Certifications, in fostering its supply chain Customer Complaint Handling, Business Responsibility Report • Thermal-resistant BOPP offers ease of recyclability with high standards of health Handling and Storage, etc. Principle 2 and safety, human rights, The Company follows a structured business integrity and the process, which includes gaps Business Responsibility Report environment protection, among identification and establishment Principle 2

60 ESG Report 2020-21 61 EBITDA (INR Cr.) FINANCIAL CAPITAL 26% Implications of Creating value for all stakeholders through enhanced 21% 8,400 COVID-19 on economic performance 7,209 2,188 economic 1,507 performance

FY 2019-20 FY 2020-21 FY 2019-20 FY 2020-21 The COVID-19 pandemic has Revenue EBITDA/Revenue been an unprecedented crisis in human mankind and has affected individuals, businesses SRF continues to maximise implement various capital and countries globally. value for all stakeholders by the structure strategies, follow a The spread of the pandemic implementation of differentiated balanced approach of equity and reshaped the social norms and attitudes and plunged the world business strategies, optimum debt mix, generating healthy cash economy into a downturn. utilization of resources, inflows, and building a robust strengthening business processes balance sheet. Due to the pandemic and that aid in building a sustainable subsequent lockdown, the business model. The financial SRF strives to ensure optimum Company witnessed slowdown utilisation of financial capital in demand for products across performance, including sectors, leading to significant revenue, expenses, new future across all its business verticals. reduction in cash inflows and opportunities among others, are The Company is constantly taking sales, thereby impacting the regularly assessed, monitored initiatives to boost productivity overall revenue of the Company. on a periodic basis and reported and achieve operational efficiency, SRF has been relentlessly thereby reducing operational publicly wherever required. and proactively focusing on While growing as a profitable costs and creating better returns enhancing its financial strength business, the funds generated for shareholders. To achieve this, and minimizing the impact of are utilised to create value SRF is strategically focussing on the pandemic on its operations. The Company operated during initiatives such as digitalisation, across all other capitals, ensuring lockdown in compliance with that the benefits of growth energy efficiency, waste the advisories issued by the are far-reaching. management, etc. Government of India and local authorities, ensuring high Through continuous focus on levels of health and safety for The Company focuses on its workforce. The Company capitalizing opportunities by strengthening its financial capital, carried out fund flow planning growing its market presence the Company has attained a key and enhanced short-term and and current product portfolio. position in the industry across medium-term borrowing to Key highlights all business verticals and plans mitigate risks pertaining to This enables SRF to deliver liquidity. SRF ensured close long-term sustainable returns to to move in the same direction to monitoring of customer demand shareholders by increasing market sustain its position in the future. and production capacity and capitalization and higher dividend maintained an efficient product mix by prioritising product INR 8,400 Cr. INR 2,188 Cr. pay-out. Optimum allocation (Details on the financial performance of the Company are provided in manufacturing. Revenue EBITDA and use of resources are the Consolidated section page 250). key focus areas within the Going forward, the Company will Company. SRF’s internal policies continue to monitor the volatile for CAPEX proposal, investment environment, as it evolves, and take necessary measures to INR 1,198 Cr. policies, among others set the ensure business continuity. principles and facilitate prudent Profit After Tax (PAT) capital allocation. The Company continues to evaluate and

62 ESG Report 2020-21 63 Section A: General Information about the Company 1. Corporate Identity Number (CIN) of the Company L18101DL1970PLC005197 2. Name of the Company SRF Limited 3. Registered Address The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, Second Floor, Mayur Place, Noida Link Road, Mayur Vihar Phase I Extn, Delhi - 110 091 4. Website www.srf.com 5. Email id [email protected] 6. Financial Year reported 2020-2021 7. Sector(s) that the Company is engaged SRF Limited is a chemical based multi-business in (industrial activity code-wise) entity engaged in the manufacturing of industrial and specialty intermediates. The Company classifies its businesses as Technical Textiles, Chemicals, Packaging Films and Other Businesses. 8. List three key products/services that the Company manufactures/provides (as in balance sheet) SRF’s product portfolio can be broadly categorized into - Technical Textiles - Chemicals - Packaging Films Technical Textiles include Tyre Cord Fabrics, Belting Fabrics and Industrial Yarn. Chemicals include Fluorochemicals and Specialty Chemicals. Packaging Films include Polyester Films viz. BOPET (Biaxially-oriented polyethylene terephthalate) and BOPP (Biaxially oriented polypropylene film) 9. Total number of locations where business activity is undertaken by the Company i) Number of International Locations (Provide details of major 5) Details of SRF’s international businesses, through its overseas subsidiaries, are given below:-

Business Responsibility Report S. No. Name of Subsidiary and Country Major products/ categories 1. SRF Industries (Thailand) Ltd., Thailand Packaging Films [As per Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015] 2. SRF Flexipak (South Africa)(Pty) Ltd, South Africa Packaging Films 3. SRF Industex Belting (Pty) Ltd., South Africa Chemicals Business (Trading) 4. SRF Europe KFT, Hungary Packaging Film Business About SRF SRF Limited is a chemical based multi-business entity engaged in the manufacturing of industrial and specialty ii) Number of National Locations intermediates. The Company is widely recognized and well respected for its R&D capabilities globally, especially SRF has manufacturing plants in 10 locations across the country. in the niche domain of chemicals. SRF is a market leader in most of its business segments in India and also State Location commands a significant global presence in some of its businesses, with operations in four countries namely, Tamil Nadu Manali India, Thailand and South Africa and Hungary. The Company has commercial interests in more than seventy-five Tamil Nadu Viralimalai countries and classifies its main businesses as Technical Textiles Business (TTB), Chemicals Business (CB), Tamil Nadu Gummidipoondi Packaging Films Business (PFB) and Other Businesses. Gujarat Dahej Rajasthan Jhiwana About this report Madhya Pradesh SEZ Indore The Securities and Exchange Board of India (SEBI) as per its (Listing Obligations and Disclosure Requirements) Madhya Pradesh Industrial Growth Centre Pithampur Regulations, 2015 has mandated the inclusion of a “Business Responsibility Report” (BRR) as part of Company’s Madhya Pradesh Malanpur Annual Report for top 1000 listed entities based on market capitalization at the BSE Ltd. (BSE) and the National Uttarakhand Kashipur Stock Exchange of India Ltd. (NSE). The reporting framework is based on the ‘National Voluntary Guidelines on SRF’s regional offices are situated at Delhi, Mumbai, Chennai and Kolkata. Social, Environmental and Economic Responsibilities of Business (NVGs)’ released by the Ministry of Corporate Affairs, Government of India, in July 2011 which contains 9 Principles and Core Elements for each of those 9 10. Markets served by the Company – Local/State/National/ International SRF serves both national and international markets spread across Asia, Africa, Europe, North America Principles. Following is the Business Responsibility Report of our Company for FY 2020-21, which is based on the and South America. format recommended by SEBI.

64 ESG Report 2020-21 65 Section B : Financial Details of the Company

1. Paid up Capital (INR) 59.24 Crores NA NA NA NA No Customer value Principle 9 2. Total Turnover (INR) 6988.32 Crores

3. Total profit after taxes (INR) 1,198 Crores Total spending on CSR is ` 10.18 Crores (1.54% of Yes Yes, Board Yes, of Directors MD and Director (CSR) NA Yes Yes Inclusive growth 4. Total Spending on Corporate Social Principle 8 Responsibility (CSR) as percentage average net profit for the past 3 years calculated in of profit after tax (%) calculated in accordance with Companies Act, 2013) after taking accordance with Companies Act, 2013 credit of ` 0.37 crores being excess spent during the previous 3 years and transfer of ` 2.70 Crores to SRF NA NA NA NA No Responsible Responsible public poli - cy advocacy Limited-Unspent CSR Account- 2020-21 in respect of Principle 7 ongoing projects.

5. List of activities in which expenditure in List of CSR activities are detailed in the Annual Report 4 above has been incurred of CSR Activities, ANNEXURE – II to the Board’s Report. Yes Yes, Director – En - Director Yes, Health & vironment, Safety Yes ISO 14001 (Environment Management ISO 50001 System) Management (Energy The policies System) with in line are the best practices in the followed industry Yes Yes Environmental protection Section C : Other Details Principle 6

1. Does the Company have any Subsidiary Company/Companies ? Following are the wholly owned subsidiary companies:- Yes Yes, Board of Yes, Directors President - HR NA Yes Yes Promotion of human rights • SRF Global BV, The Netherlands (Foreign Wholly Owned Subsidiary) Principle 5 • SRF Industries (Thailand) Ltd., Thailand (Foreign Wholly Owned Subsidiary) • SRF Flexipak (South Africa) (Pty) Ltd., South Africa (Foreign Wholly Owned Subsidiary) • SRF Industex Belting (Pty) Ltd., South Africa (Foreign Wholly Owned Subsidiary) Yes Yes, Board of Yes, MD Directors and Director (CSR) No No Yes Stakeholder engage - ment Principle 4 • SRF Europe Kft, Hungary (Foreign Wholly Owned Subsidiary) • SRF Holiday Home Ltd. (Domestic Wholly Owned Subsidiary)

2. Do the Subsidiary Company/Companies participate in the BR initiatives of the parent Yes Yes, Board of Yes, CEO, Directors - HR President Yes OHSAS 18001:2007 8000 (Social SA Accountability) Yes Yes Employee well-being Company ? If yes, then indicate the number of such subsidiary Company(s) Principle 3 The subsidiary companies operate in different jurisdictions and are engaged in their own BR initiatives as applicable to them.

3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business NA NA NA NA No - Sustain ability in life-cycle of products Principle 2 with, participate in the BR initiatives of the Company ? If yes, then indicate the percentage - - of such entity/entities ? [Less than 30%, 30-60%, More than 60%] - No Yes Yes, Board of Yes, President Directors - HR NA Yes Yes Ethics, transpar ency & Sustain ability, account ability Principle 1 - - - Does the Company have have Does the Company a specified of the Committee Board/ Director/ the oversee Official to implementation of the policy? Has the policy been the Board? by approved has it been If yes, MD/ owner/ signed by Board CEO/ appropriate Director Does the policy conform Does the policy conform national/ interna to any tional standards? If yes, If yes, tional standards? specify. ers? veloped in consultation in consultation veloped stakehold with relevant Has the policy been de Do you have a policy/ a policy/ have Do you policies for Questions Details of Director/Directors responsible for implementation of the BR policy/policies responsible for implementation Director/Directors Details of (DIN: 00008557) Managing Director Deputy Ram, Bharat Kartik of Mr. is the responsibility of BR policies Implementation BR Policy/policies (Reply in Y/N) Principle-wise (as per NVGs) 5 4 3 2 1 S. No. 2. Section D : BR Information 1.

66 ESG Report 2020-21 67 2A If answer to S. No. 1 against any principle, is ‘No’, please explain why : (Tick up to 2 options) S. Question Principle 2 : Principle 7 : Responsible Principle 9 : No. Sustainability in public policy advocacy Customer value NA NA NA NA NA Customer value Principle 9 life-cycle of products

- 1. The Company has not - understood the Principles

CSR Policy 2. The company is not at a stage where it finds itself in No Yes Yea .CSR Yea is Policy implement ed through SRF Foun dation Yes Yes 1. Inclusive growth Principle 8 a position to formulate and implement the policies on specified principles

der-Trading.pdf 3. The company does t-Personnel.pdf not have financial or NA NA NA NA NA Responsible Responsible public poli - cy advocacy Principle 7 manpower resources available for the task 4. It is planned to be done within next 6 months 5. It is planned to be done within the next 1 year 6. Any other reason SRF manufactures SRF is a member of various SRF is a business-to- Yes Yes Yes Yes No Environmental protection Principle 6 (please specify) intermediate products industrial and trade bodies. business player and, as such,

which is largely supplied We actively participate in the customers are largely to other industries for these forums on issues and manufacturing companies - manufacturing of the final policy matters that impact the which have stringent quality

Policy Policy against Sexual - Harass ment Whis tle-blower Policy product. Any sustainability interest of our stakeholders. control measures in place Yes Yes Yes Yes No 1. 2. Promotion of human rights Principle 5 initiative has to consider We prefer to be a part of the and the quality of the the final product as a whole broader policy development product supplied by SRF is for which the manufacturer process through making a part of the agreements of the final product representations to Chambers with them. The product is

CSR Dividend Distri - bution Policy is responsible. of Commerce, giving our manufactured as per the comments on the proposed agreed parameters and No Yes Yes is CSR Policy implemented SRF through Foundation Yes Yes 1. Policy 2. Stakeholder engage - ment Principle 4 amendments in the relevant specifications. legislations and being a part of discussions with the representatives of the relevant authorities in open forums. Hence, we do not feel such a Yes Yes Yes Yes No Employee well-being Principle 3 policy is necessary for us.

3. Governance related to BR applicable to the Company. The Company is Indicate the frequency with which the Board publishing BRR report for financial year 2020-21 NA NA NA NA NA - Sustain ability in life-cycle of products Principle 2

srf.com/wp-content/uploads/2021/04/2019-05-13-SRF-Code-of-Conduct-for-Prevention-of-Insi www. of Directors, Committee of the Board or CEO as part of its Annual Report. The Annual Report srf.com/wp-content/uploads/2020/11/Code-of-Conduct-for-Directors-and-Senior-Managemen www. -

- to assess the BR performance of the Company.

- is available on the website of the Company -

https:// Within 3 months, 3-6 months, Annually, at https://www.srf.com/investor-relations/ https:// more than 1 year investors.html#investorinfo. ment Personnel Whistle-blower Policy Conduct Code of of Prevention for Trading Insider Code of Conduct Conduct Code of & Directors for Senior Manage The Board of Directors discuss the BR The Chemicals Business of the Company has been tion-Policy.pdf srf.com/wp-content/uploads/2020/11/Dividend-Distribu www. No Yes Yes Yes 2. 3. Partial 1. Ethics, transpar ency & Sustain ability, account ability Principle 1 performance annually. CSR Committee discusses publishing a Sustainability Report every two years. the relevant areas pertaining to CSR annually. The last report for 2017-19 is available at: https:// https:// www.srf.com/wp-content/uploads/2020/12/ Does the Company publish a BR or SRF-CB_Sustainability_Report_2019-LR.pdf lity-policy.pdf srf.com/wp-content/uploads/2021/04/25032021-Final-SRF-Corporate-Social-Responsibi www. a Sustainability Report? What is the hyperlink for viewing this report? How The Packaging Films Business of the Company https:// frequently it is published? has published its Sustainability Report for The financial year 2020-2021 is the fifth year for FY 2018-20 and is available at: https:// Has the Company Has the Company carried out audit/ Independent of the evaluation working of this policy an internal or by external agency? Does the Company Does the Company a grievance have mechanism redressal to the policy/ related - stake policies to address holders’ to related grievances the policy /policies? Does the Company Does the Company an in-house have to implement structure the policy? Has the policy been communicated to the internal and relevant external stakeholders? Indicate the link for the link for Indicate the policy to be viewed online# Questions which the provisions of Business Responsibility www.srf.com/wp-content/uploads/2021/03/ Reporting of the Listing Regulations are PFB-Sustainability-Report-2018-20.pdf 10 9 8 7 6 S. No. Code of Conduct for Prevention of Insider Trading: Trading: of Insider Prevention Code of Conduct for Dividend Distribution Policy: Dividend Distribution Policy: Management: & Sr. Directors Code of Conduct for # CSR Policy : # CSR Policy

68 ESG Report 2020-21 69 Section E : Principle-wise performance BRR Principle Requirement Section Page No.

BRR Principle Requirement Section Page No. Principle 4 Has the Company mapped its internal and Stakeholder Engagement 24 external stakeholders? Principle 1 Does the policy relating to ethics, bribery Codes and Policies 21 Businesses should and corruption cover only the Company? respect the interests of Out of the above, has the Company Stakeholder Engagement 24 Businesses should Does it extend to the Group/ JVs/ Suppliers/ and be responsive to all identified the disadvantaged, vulnerable & conduct and govern Contractors/ NGOs/ Others? its stakeholders marginalized stakeholders. themselves with integrity in a manner that is How many stakeholder complaints have been Codes and Policies 22 Are there any special initiatives taken by the Stakeholder Engagement 24 Ethical, Transparent received in the past financial year and what Company to engage with the disadvantaged, and Accountable percentage was satisfactorily resolved by vulnerable and marginalized stakeholders? If so, the Management? provide details thereof, in about 50 words or so. List up to 3 of your products or services whose Social and Relationship 60 Principle 2 Principle 5 Does the policy of the Company on human rights Human Capital - Human 53 design has incorporated social or environmental Capital - Sustainable cover only the Company or extend to the Group/ Resources Management Businesses should concerns, risks and/ or opportunities. product offerings Businesses should JVs/ Suppliers/ Contractors/ NGOs/ Others? provide goods and respect and services in a manner that Does the Company have procedures in place for Social and 61 promote human rights How many stakeholder complaints have Human Capital - Human 53 is sustainable and safe sustainable sourcing (including transportation)? Relationship Capital - been received in the past financial year and Resources Management If yes, what percentage of your inputs was Sustainable supply chain what percent was satisfactorily resolved by sourced sustainably? Also, provide details the management? thereof, in about 50 words or so. Principle 6 Does the policy related to Principle 6 cover only Natural Capital 44 Has the Company taken any steps to procure Social and 61 the Company or extends to the Group/ JVs/ goods and services from local & small Relationship Capital - Businesses should Suppliers/ Contractors/ NGOs/ others. producers, including communities surrounding Sustainable supply chain respect and make efforts their place of work? to protect and restore Does the Company have strategies/ initiatives Natural Capital - 46 the environment to address global environmental issues such as Energy Management Does the Company have a mechanism to Manufactured Capital 39 climate change, global warming, etc.? If yes, recycle products and waste? If yes, what is the - Raw Materials please give hyperlink for webpage etc. percentage of recycling of products and waste Natural Capital - (separately as <5%, 5-10%, >10%). 48 Does the Company identify and assess potential Risk Management 28 Waste Management environmental risks? Please indicate the total number employees. Human Capital - Human 50 Principle 3 Does the Company have any project related Natural Capital - Emissions 46 Resources Management Businesses should to Clean Development Mechanism? If so, respect and promote Please indicate the total number of employees Human Capital - Human 50 provide details thereof, in about 50 words or so. the well-being hired on temporary/ contractual/ casual basis. Resources Management Also, whether any environmental compliance of all employees, report is filed? including those in Please indicate the number of permanent Human Capital - Human 50 Has the Company undertaken any other Natural Capital - 46 their value chains women employees. Resources Management initiatives on – clean technology, energy Energy Management Please indicate the number of permanent Human Capital - Human 50 efficiency, renewable energy, etc. Y/N? If yes, employees with disabilities. Resources Management please give hyperlink for web page etc.

Do you have an employee association that is Human Capital - Human 53 Are the Emissions/Waste generated by the Natural Capital – Emissions 46 recognized by Management? Resources Management Company within the permissible limits given by Natural Capital - 47 CPCB/SPCB for the financial year being reported? What percentage of your permanent Human Capital - Human 53 Waste Management employees is Members of this recognized Resources Management Number of show cause/ legal notices received Natural Capital – Emissions 46 employee association? from CPCB/SPCB which are pending (i.e. Natural Capital - 47 not resolved to satisfaction) as on end of Please indicate the number of complaints Human Capital - Human 53 Waste Management relating to child labour, forced labour, involuntary Resources Management Financial Year. labour, sexual harassment in the last financial year and pending, as on the end of the financial year.

What percentage of your under mentioned Human Capital – Health and 51 employees were given safety & skill up-gradation Safety Training training in the last year?

70 ESG Report 2020-21 71 BRR Principle Requirement Section Page No. Transforming Lives. Bringing Smiles. Principle 7 Is your Company a member of any trade and Industry Associations 23 chamber or association? If Yes, Name only Businesses, when those major ones that your business deals with: engaging in influencing public and regulatory Have you advocated/lobbied through Industry Associations 23 It was young Pankaj’s unfulfilled dream to learn how to policy, should do above associations for the advancement or so in a manner improvement of public good? Yes/No; if yes operate a computer. that is responsible specify the broad areas (drop box: Governance and transparent and Administration, Economic Reforms, Being visually impaired and belonging to a low-income Inclusive Development policies, Energy security, household were major impediments in his learning journey. Water, Food Security, Sustainable Business Principles, Others) When SRF Foundation set up the Capgemini India Digital Literacy Centre in his neighborhood, he saw a ray of hope. Principle 8 Does the Company have specified programmes/ Social and Relationship 57 initiatives/ projects in pursuit of the policy Capital – Upliftment of The free-of-cost computer learning course was exactly Businesses should related to Principle 8? If yes details thereof. local communities what Pankaj needed. Upon enrolment, his trainer paid promote inclusive special attention to his learning needs by providing him growth and Are the programmes/ projects undertaken Social and Relationship 57 access to screen reading software like Non-Visual Desktop equitable development through in-house team/ own foundation/ Capital – Upliftment of external NGO/ government structures/ any local communities Access (NVDA) and other necessary aids. Today, Pankaj other organization? can confidently browse the web, operate applications like Microsoft Word, Paytm, Amazon, among others. He has Have you done any impact assessment of Social and Relationship 57 your initiative? Capital – Upliftment of Pankaj Ghoshal his personal email account and can pay bills, purchase local communities Trainee, Noida, Uttar Pradesh essentials, and apply for higher education online. SRF Foundation’s Capgemini India Digital What is your Company’s direct contribution to Social and Relationship 57 Literacy center More power to the indomitable spirit of Pankaj and several community development projects – Amount in Capital – Upliftment of young boys and girls like him. ` and the details of the projects undertaken. local communities

Have you taken steps to ensure that this Social and Relationship 57 community development initiative is successfully Capital – Upliftment of adopted by the community? Please explain in local communities 50 words, or so. Hailing from a small village in the Nuh district of Mewat, Principle 9 What percentage of customer complaints/ Social and Relationship 60 Aasim Wasim is the youngest in a family of eight. consumer cases are pending as on the end of Capital - Partnering with Struggling to make ends meet, Aasim started unsuccessfully Businesses should financial year? customers in their growth engage with and provide searching for a job, right after completing high school. value to their consumers Does the Company display product information Social and Relationship 60 Instead of getting dejected, he enrolled himself at SRF in a responsible manner on the product label, over and above what Capital – Product labelling Foundation’s Schneider Electric Basic Electrician Training is mandated as per local laws? Yes/No/N.A. / Remarks (additional information) Program which is a free-of-cost, four-month program and learned a great deal. The training program equipped Is there any case filed by any stakeholder Codes and Policies 22 him with skills to start his own electrical shop with a against the Company regarding unfair trade meagre investment of ` 5,000. Today, he earns approx. practices, irresponsible advertising and/ or anti-competitive behaviour during the last ` 20,000 per month, ensuring a better livelihood for five years and pending as on end of financial his entire family. year? If so, provide details thereof, in about 50 words or so Did your Company carry out any consumer Social and Relationship 60 Aasim Wasim survey/ consumer satisfaction trends? Capital - Partnering with customers in their growth Trainee, Nuh, Mewat, SRF Foundation’s Schneider Electric Basic Electrician Training Program

72 ESG Report 2020-21 73 It was her love for Science that inspired Kanika to become Innumerable teachers and educators including Udayajyothi a schoolteacher. Her goal was to instill in her students the in government and private schools all over the country inquisitiveness to explore and discover the world of Science. have been facing difficulties in using a webcam and However, due to the unavailability of a well-equipped Science microphone to teach their students after the COVID-19 laboratory in the school, she couldn’t fully achieve her goal. induced lockdown was put in place.

The School underwent a massive infrastructural Conducting online classes was proving to be more difficult transformation after it was adopted by SRF Foundation than the regular classes for Udayajyothi until the launch and IndiGo under the flagship School Adoption Program. of the Digital Based Learning Program by Brillio and With a fully stacked and functional Science Lab now, SRF Foundation. Kanika can demonstrate experiments and strengthen the The program equipped teachers with the know-how on understanding of concepts among her students. integrating online tools in imparting quality education to students. By overcoming the technological barrier and utilizing her learning, Udayajyothi successfully conducted Kanika Singh Udayajyothi online classes not only for the students of her own school, Teacher – Greater Noida-Uttar Pradesh, Assistant Teacher, Bengaluru, Karnataka but 30 other schools too. SRF Foundation’s IndiGo School SRF Foundation’s Brillio Digital Based She has been invited by the Government to Karnataka Adoption Program Learning Program to train other teachers as part of its ‘DD Chandana Samveda Program’.

In addition, she has created her YouTube channel, where she is learning, teaching and growing every day.

Farjana joined a free course in Spoken English, conducted by SRF Foundation in collaboration with Teach India, close to her village in Mewat. The course prepared her to face interviews with confidence and helped her secure job offers. Hit by the pandemic, little Sanjana’s parents were worried Today, she is employed at Dr. Himmat Rai Memorial Hospital. about her future. With no guidance or supervision, Sanjana had slowly begun to lose interest in studies. She is the first girl in her family who is economically independent and supporting her family financially. It was at this crucial time that SRF Foundation implemented several innovative educational initiatives, to help children She feels free, happy, and more self-confident. like Sanjana find their way back to academics. SRF Foundation’s Spoken English Program has given WhatsApp-based classes with regular assignments was wings to several girls like Farjana to go out there and conducted. The teachers responded with remarks and chase their dreams. cleared doubts through the App.

SRF Foundation also launched the Mohalla classes to Farjana effectively engage the students in learning. With strict Trainee-Mewat, Haryana SRF Foundation’s COVID-19 protocols in place, a mix of offline and online Teach India (Times Group) Spoken mode of education was put in place. Other academic and English Program Sanjana extra-curricular activities were also undertaken to help Bhiwadi, Rajasthan children like Sanjana stay motivated. Rural Education Program We are confident that Sanjana’s future is secure.

74 ESG Report 2020-21 75 SRF Limited (CIN: L18101DL1970PLC005197) Regd. Office:The Galleria, DLF Mayur Vihar, Unit No. 236 & 237, 2nd Floor, Mayur Place, Mayur Vihar Phase I Extn, Delhi – 110091

Tel. No: (+91-11) 49482870, (+91-124) 4354400, Fax: (+91-11) 49482900, (+91-124) 4354500 CORPORATE OVERVIEW Shubh Preeti is one of the most dedicated teachers to be Email: [email protected] website: www.srf.com associated with SRF Foundation’s Rural Education Program. Belonging to a small town, her dream was to make education accessible to all. notice During the pandemic, her students suffered a great deal. As a concerned educator, Shubh Preeti started looked Notice is hereby given that the 50th Annual General Tenure for avenues to help her students cope with the changes Meeting of SRF Limited will be held on Tuesday, Five years with effect from June 1, 2021 happening around them. It is at this time that SRF Foundation August 31, 2021 at 11.00 a.m. through Video launched ‘Mohalla classes’ across its intervention locations. Conferencing (“VC”) / Other Audio Visual Means Functions Shubh got involved from the beginning and continues to (“OAVM”) facility to transact the following businesses: - Mr. Kartik Bharat Ram shall be responsible for educate her students through the Mohalla classes. Human Resources, Information Technology, Total Strict COVID-19 protocols are observed while conducting Ordinary Business Quality Management, Corporate Communication classes in the open for students. The initiative has proved 1. To receive, consider and adopt the standalone functions and other responsibilities as may be Shubh Preeti to be very effective and has ensured continuity of school and consolidated audited financial statements entrusted to him by the Chairman and/or the education for a lot of children. of the Company for the financial year ended Board, from time to time. STATUTORY REPORTS Teacher - Bhiwadi, Rajasthan, March 31, 2021 along with the Reports of the Rural Education Program Auditors’ and Board of Directors’ thereon. Remuneration Subject to the overall limit on remuneration 2. To resolve not to fill the vacancy caused by payable to all the managerial personnel taken the retirement of Dr. Meenakshi Gopinath together and provisions of applicable laws, (DIN: 00295656), who retires by rotation at the remuneration payable to Mr. Kartik Bharat the conclusion of this meeting, but does not Ram shall comprise salary, perquisites and seek reappointment. commission, as may be decided by the Board/ Nomination and Remuneration Committee in Special Business accordance with the Nomination, Appointment 3. To consider and if thought fit, to pass with or Illiyas Khan is another beneficiary of the Natural Resource and Remuneration Policy within an overall without modification(s), the following resolution Management Program. He lives in Guwalda, a small village ceiling of 5% of the net profits of the Company, as an Ordinary Resolution: in Alwar district of Rajasthan. computed in the manner laid down in Section Re-appointment of Mr. Kartik Bharat Ram 198 of the Companies Act, 2013. Under its Natural Resources Management Program, SRF (DIN: 00008557) as Deputy Managing Director Foundation supported farmers like Illiyas through projects Remuneration for a part of the Year FINANCIAL STATEMENTS such as rainwater harvesting, waste land restoration, “RESOLVED THAT in accordance with the Remuneration for a part of the year shall be large scale plantation, agriculture intervention, livestock provisions of Sections 196, 197 and 203 read computed on pro-rata basis. promotion, micro-enterprise development, etc. with Schedule V and other applicable provisions, if any, of the Companies Act, 2013 and the Minimum Remuneration Benefitting from the program, Illiyas was able to procure Companies (Appointment and Remuneration of In the event of absence or inadequacy of profits more animals to domesticate. With the help of his animals, Managerial Personnel) Rules, 2014 (including in any financial year, the remuneration payable he was able to plant more saplings in his farmland. any statutory modification(s) or re-enactment(s) to Mr. Kartik Bharat Ram shall be decided by This resulted in an increase in the production of crops. thereof, for the time being in force), approval the Nomination and Remuneration Committee The NRM program also built paals (dams) for farmers of the Company be and is hereby accorded for subject to the provisions of Companies Act, 2013 Illiyas Khan like him, who could benefit from the availability of clean reappointment of Mr. Kartik Bharat Ram (DIN: and such approval, if any, as may be required. Farmer – Bhiwadi, Rajasthan drinking water for the animals and to irrigate the lands. 00008557) as Deputy Managing Director on the Natural Resource Management Program terms, conditions and remuneration, including Termination minimum remuneration as are hereinafter The appointment of Mr. Kartik Bharat Ram as specifically given:- Deputy Managing Director may be terminated by

76 ESG Report 2020-21 77 either party giving to the other three calendar be and is hereby accorded for appointment authorized by it in this regard in accordance Name Business Remuneration months notice in writing. and making payments and extending facilities with the applicable provisions of the said Act) of Cost Auditor payable to Mr. Arun Bharat Ram, as Chairman Emeritus be and is hereby authorised to issue, offer or H Tara & Co. Technical Textiles ` 3.00 lakhs plus In the event of termination of this appointment of the Company for a term of five years invite subscriptions for secured/unsecured (Membership Business and applicable taxes of Mr. Kartik Bharat Ram by the Company, he redeemable non-convertible debentures, in commencing from April 1, 2022 till March 31, No. 17321) Other and reimbursement CORPORATE OVERVIEW shall be entitled to receive compensation in one or more series/tranches, aggregating upto 2027 as approved by the Board of Directors Businesses of actual out of accordance with the provisions of the Companies ` 1500 crores (Rupees fifteen hundred crores), and set out in the explanatory statement pocket expenses Act, 2013 or any statutory amendment or on private placement basis, and on such terms relating to this resolution, with liberty to the Sanjay Gupta & Chemicals ` 5.25 lakhs plus re-enactment thereof.” and conditions as the Board of Directors may, Board of Directors, to alter or vary the terms Associates Business and applicable taxes from time to time, determine and consider proper and conditions (including the payments and (Membership Packaging of actual out of “RESOLVED FURTHER THAT the Nomination and most beneficial to the Company including as facilities) in such manner as the board may deem No. 18672) Films Business pocket expenses to the timing of issue of such Debentures, the and Remuneration Committee be and is hereby fit and is acceptable to Mr. Arun Bharat Ram. authorised to recommend/decide from time to consideration for the issue, the utilisation of the 6. To consider and if thought fit, to pass with or time the salary, perquisites and commission issue proceeds and all other matters connected without modification(s), the following resolution payable to Mr. Kartik Bharat Ram during his “RESOLVED FURTHER THAT in the event with or incidental thereto. as a Special Resolution: tenure with effect from June 01, 2021 within the of any statutory amendment, modification or relaxation to the Act by the Central Government, RESOLVED FURTHER THAT the Board of approved ceiling of remuneration in accordance Offer or invitation to subscribe to Redeemable the Board of Directors be and is hereby Directors of the Company be and is hereby with the Nomination and Remuneration Policy.” Non-Convertible Debentures of the Company on authorised to vary the terms and conditions authorised to do all acts and take all such steps private placement “RESOLVED FURTHER THAT in the event of (including the payments and facilities accorded including the power to sub-delegate the powers as may be necessary, proper or expedient to give any further revision in the levels of permissible to Mr. Arun Bharat Ram) in accordance with the STATUTORY REPORTS “RESOLVED THAT pursuant to the provisions effect to this resolution.” managerial remuneration, the Board/ Nomination applicable law without any further reference to, of Sections 42, 71, 179 and any other applicable and Remuneration Committee may alter, vary and or requirement to seek approval of the members provisions of the Companies Act, 2013 read increase the remuneration of Mr. Kartik Bharat of the Company. with Companies (Prospectus and Allotment of By order of the Board of Directors Ram (DIN: 00008557), notwithstanding the Securities) Rules, 2014 (including any statutory overall remuneration set out as above, as may “RESOLVED FURTHER THAT the Board of modification(s) or re-enactment thereof, for Rajat Lakhanpal then be prescribed/ permissible.” Directors be and is hereby authorised to take the time being in force), the Board of Directors VP (Corporate Compliance) & Date : July 28, 2021 Company Secretary such steps as may be necessary to give effect to of the Company (which term shall be deemed “RESOLVED FURTHER THAT the powers to include any Committee of the Board duly Place : Gurugram Membership No. A12725 and authorities delegated by the Board to this resolution.” Mr. Kartik Bharat Ram from time to time including powers to sub-delegate shall remain valid upon 5. To consider and if thought fit, to pass with or his re-appointment.” without modification(s), the following resolution as an Ordinary Resolution: 4. To consider and if thought fit, to pass with or without modification(s), the following resolution Ratification of Remuneration of Cost Auditors for

as an Ordinary Resolution: financial year 2021-22. FINANCIAL STATEMENTS

approval for appointment, payment and facilities “RESOLVED THAT pursuant to the provisions to be extended to Mr. Arun Bharat Ram as of Section 148 and all other applicable Chairman Emeritus of the Company from April 1, provisions, if any, of the Companies Act, 2013 2022 to March 31, 2027. and the Companies (Audit and Auditors) Rules, “RESOLVED THAT pursuant to the provisions 2014 (including any statutory modification(s) of Section 188 and other applicable provisions of or re-enactment thereof, for the time being in the Companies Act, 2013 (hereinafter referred force), the remuneration payable to the Cost to as the ‘Act’), the Rules made thereunder Auditors appointed by the Board of Directors of or any amendment thereto or modification the Company, to conduct the audit of the cost thereof, the Articles of Association, and such records of the Company for the financial year other approvals, permissions and sanctions ending March 31, 2022 as provided below, be as may be required, approval of the members and is hereby approved and ratified:

78 Annual Report 2020-21 79 NOTES OAVM are requested to send, in advance, a duly 8. Members may utilize the facility extended by the 12. Those Members, whose email address is not 1. Explanatory Statement pursuant to Section 102 certified copy of the relevant board resolution/ Registrar for redressal of their queries including registered with the Company or with their of the Companies Act, 2013, which sets out letter of authority/power of attorney to the change of address, if any, by visiting at https:// respective Depository Participant/s, and who th details of material facts relating to the Special Scrutinizer by e-mail to [email protected] karisma.kfintech.com/ and clicking on ‘Investor wish to receive the Notice of the 50 AGM and the businesses to be transacted at this AGM, is Relations’ section for query registration through Annual Report for the year 2020-21 and all other and to the Company at [email protected] through its CORPORATE OVERVIEW annexed hereto. registered E-mail Address. free identity registration process. Members may communication sent by the Company, from time also write at [email protected] clearly to time, can get their email address registered by 2. In view of the continuing COVID-19 pandemic, mentioning their DP ID/ Client ID. following the steps as given below:- 6. The attendance of members (members’ Ministry of Corporate Affairs (“MCA”), vide login) attending the AGM through VC/ 9. Members desiring any information/ clarification on Circular No. 14/2020 dated April 8, 2020, a. For Members holding shares in physical OAVM shall be reckoned for the purpose of the financial statements or any of the resolutions Circular No.17/2020 dated April 13, 2020 read form, please send scan copy of a signed Quorum under Section 103 of the Companies as detailed in the Notice are requested to write with Circular No. 20/2020 dated May 5, 2020 request letter mentioning your folio number, Act, 2013 and hence no attendance slip is to the Company on or before 24th August, read together with Circular No. 02/2021 dated complete address, email address to be attached to the notice. 2021 through an E-mail to [email protected], January 13, 2021 (collectively referred to as registered along with scanned self attested specifying his/her name along with Demat ‘MCA Circulars’) and SEBI vide its circular dated copy of the PAN and any document (such as account details. The same shall be replied by the May 12, 2020 and January 15, 2021 (collectively 7. Pursuant to the applicable provisions of the Driving Licence, Passport, Bank Statement, Company suitably. referred to as ‘SEBI Circulars’) has permitted the Companies Act 2013, unpaid/unclaimed AADHAR) supporting the registered address Company to hold Annual General Meeting (AGM) dividends up to the financial year 2013-14, 10. The Register of Directors and Key Managerial of the Member, by email to the Company’s through Video Conferencing (VC) or Other Audio were transferred to the Investor Education & Personnel and their shareholding maintained email address at [email protected] or to Registrar Visual means (OAVM). Protection Fund (IEPF). Besides the dividend under Section 170 of the Companies Act, 2013, & Transfer Agent email address at Einward.

so transferred, Company has also transferred the Register of contracts or arrangements in [email protected] STATUTORY REPORTS 3. In compliance with applicable provisions of the relative share scrips in respect of dividends which directors are interested under Section 189 the Companies Act, 2013 (“the Act”) read with which remained unpaid for a continuous period of the Companies Act, 2013, ESPS Certificate by b. For the Members holding shares in the aforesaid MCA Circulars and SEBI (Listing th of seven years to the demat account of IEPF Auditor dated 28 July, 2021 that SRF Limited demat form, please update your email Obligations and Disclosure Requirements) Authority, in accordance with the applicable Long term Share based Incentives Plan, 2018 address through your respective Regulations, 2015 (“Listing Regulations”), the has been implemented in accordance with Depository Participant/s. th provisions of Companies Act, 2013 and Rules 50 AGM of the Company is being conducted said regulations and in accordance with the made thereunder. It may be noted that once the through VC/OAVM. Deemed Venue for meeting resolutions of the company passed through unclaimed / unpaid dividend and/or shares are 13. SEBI has mandated submission of Permanent will be Registered Office: The Galleria, DLF Postal Ballot on March 26, 2018 and all nd so transferred; the same can only be reclaimed Account Number (PAN) by every participant Mayur Vihar, Unit No. 236 & 237, 2 Floor, Mayur other documents mentioned in the Notice by a shareholder from the IEPF Authority in in securities market. Members holding shares Place, Mayur Vihar Phase I Extn, Delhi – 110091. will be available for inspection in electronic accordance with the applicable provisions of in electronic form are, therefore, requested to mode during the Annual General Meeting. submit the PAN to their Depository Participants 4. National Securities Depository Limited (NSDL), the Companies Act 2013 and relevant Rules Members can inspect the same by sending an with whom they are maintaining their demat will be providing facility for voting through made thereunder by following the prescribed E-mail to [email protected]. accounts. Members holding shares in physical remote e-voting, for participation in the 50th procedure in this regard. The IEPF Rules and the form are requested to submit their PAN details to AGM through VC/OAVM facility and e-voting application Form (Form IEPF-5), as prescribed 11. Pursuant to the MCA Circulars and SEBI Circulars, the Notice of the 50th AGM and the Annual the Company’s Registrar. during the AGM. by the Ministry of Corporate Affairs, are available FINANCIAL STATEMENTS on the website of the Ministry of Corporate Report for the financial year 2020-21 are being 14. In terms of the SEBI Listing Regulations, 5. Since, the meeting is being conducted through Affairs atwww. iepf.gov.in. Details of the unpaid/ sent only by email to the Members whose name appear in the register of members/depositories securities of listed companies can only be VC/OAVM, facility of appointing proxies to unclaimed dividend and shares transferred to attend and vote at the meeting on behalf of the as at closing hours of business on 30th July, transferred in dematerialized form effective from IEPF from time to time also have been uploaded st members of the Company is not available and 2021. Members may note that the Notice and 1 April 2019. In view of the above, members on the “Investors Section” of the website of the hence the proxy form is not annexed to this Annual Report 2020-21 will also be available are advised to dematerialize their shares held by Company viz. www.srf.com. notice. However, Body Corporates are entitled to on the Company’s website www.srf.com, them in physical form. Members can also write to appoint authorized representatives to attend the websites of the Stock Exchanges, that is, the Company’s Registrar in this regard. AGM through VC/OAVM and participate thereat Members, who have not encashed their dividend BSE Limited and National Stock Exchange and cast their votes through e-voting. pertaining to financial year 2014-15 onwards, of India Limited at www.bseindia.com and 15. To prevent fraudulent transactions, members are advised to write at einward.ris@kfintech. www.nseindia.com, respectively, and on the are advised to exercise due diligence and Body Corporates who intend to authorize com to M/s. Kfin Technologies Private Limited, website of NSDL, the e-voting agency at notify to their Depositories Participants (DPs) representatives to participate and vote on their Registrar of the Company immediately for www.evoting.nsdl.com. in respect of their electronic share accounts behalf in the meeting to be held through VC/ claiming the same. and to the Company’s Registrar of any change

80 Annual Report 2020-21 81 in address or demise of any member as soon holding shares as of the Cut-off date may Type of shareholders Login Method as possible. Members are also advised to not obtain the login ID and password by sending a Individual Shareholders A. NSDL IDeAS facility leave their demat account(s) dormant for request at [email protected]. However, if you holding securities in demat If you are already registered for NSDL IDeAS facility long. Periodic statement of holdings should be are already registered with NSDL for remote mode with NSDL. 1. Please visit the e-Services website of NSDL. Open web browser by obtained from the concerned DPs and holdings e-Voting then you can use your existing user typing the following URL: https://eservices.nsdl.com/ either on a CORPORATE OVERVIEW should be verified from time to time. ID and password for casting your vote. If you Personal Computer or on a mobile. have forgotten your password, you could 16. In case of joint holders attending the meeting, reset your password by using “Forgot User 2. Once the home page of e-Services is launched, click on the the members whose name appears as the Details/Password” or “Physical User Reset “Beneficial Owner” icon under “Login” which is available under first holder in the order of names as per the Password” option available on www.evoting. “IDeAS” section. Register of Members of the Company will be nsdl.com. In case of Individual shareholders entitled to vote. holding securities in Demat mode, who 3. A new screen will open. You will have to enter your User ID and Password. After successful authentication, you will be able to see acquires shares of the Company and become Voting through electronic means e-Voting services. member of the Company after dispatch I. In compliance with provisions of Section of the Notice and holding shares as of the 108 of the Companies Act, 2013, read with 4. Click on “Access to e-Voting” under e-Voting services and you will be Rule 20 of the Companies (Management and Cut-off date, are requested to follow the login able to see e-Voting page. Administration) Rules, 2014, as amended, method mentioned below in point (A) under Secretarial Standard on General Meetings e-Voting instructions. 5. Click on options available against company name or e-Voting service (SS-2) issued by the Institute of Company provider - NSDL and you will be re-directed to NSDL e-Voting website

Secretaries of India (“ICSI”) and the provisions The details of the process and manner for for casting your vote during the remote e-Voting period or joining STATUTORY REPORTS of Regulation 44 of SEBI (Listing Obligations remote e-voting and voting during the virtual meeting & voting during the meeting. and Disclosure Requirements) Regulations, AGM are explained here below: 2015,read with MCA Circulars and SEBI If the user is not registered for IDeAS e-Services, 1. The option to register is available at https://eservices.nsdl.com. Circulars, the Company is providing remote Step 1 : Access to NSDL e-Voting system e-Voting facility to its Members in respect of the 2. Select “Register Online for IDeAS” Portal or click at https:// business to be transacted at the 50th AGM and eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp Step 2 : Cast your vote electronically on facility for those Members participating in the NSDL e-Voting system 50th AGM to cast vote through e-Voting system 3. Upon successful registration, please follow steps given at Point 1 to 5 above. during the 50th AGM. Details on Step 1 is mentioned below: B. e-Voting website of NSDL II. The remote e-Voting period will commence 1. Visit e-Voting website of NSDL. Open web browser by typing the on August 28, 2021 (9:00 am IST) and A) Login method for e-Voting following URL: https://www.evoting.nsdl.com/ either on a Personal end on August 30, 2021 (5:00 pm IST). and joining virtual meeting for Computer or on a mobile. During this period, Members of the Company, Individual shareholders holding 2. Once the home page of e-Voting system is launched, click on the icon holding shares either in physical form or in securities in Demat mode “Login” which is available under Shareholder/Member’ section. FINANCIAL STATEMENTS dematerialized form, as on the cut-off date In terms of SEBI circular dated December 9, of August 24, 2021, may cast their vote by 2020 on e-Voting facility provided by Listed 3. A new screen will open. You will have to enter your User ID (i.e. remote e-Voting. The remote e-Voting module Companies, Individual shareholders holding your sixteen digit demat account number held with NSDL), Password/ shall be disabled by NSDL for voting thereafter. securities in Demat mode are allowed to vote OTP and a Verification Code as shownon the screen. Once the vote on a resolution is cast by the through their Demat account maintained with Member, the Member shall not be allowed to 4. After successful authentication, you will be redirected to NSDL change it subsequently. Depositories and Depository Participants. Shareholders are advised to update their Depository site wherein you can see e-Voting page. Click on options mobile number and email Id in their Demat available against company name or e-Voting service provider- III. Any person, who are other than individual NSDL and you will be redirected to e-Voting website of NSDL for accounts in order to access e-Voting facility. shareholders holding securities in Demat casting your vote during the remote e-Voting period or joining virtual mode and shareholders holding securities meeting & voting during the meeting. in physical mode, who acquires shares of Login method for Individual shareholders the Company and become member of the holding securities in demat mode Company after dispatch of the notice and is given below:

82 Annual Report 2020-21 83 Type of shareholders Login Method at https://eservices.nsdl.com/ with your c) How to retrieve your ‘initial password’? Individual Shareholders 1. Existing users who have opted for Easi / Easiest, they can login through existing IDEAS login. Once you log-in to (i) If your email ID is registered in your holding securities in their user id and password. Option will be made available to reach NSDL eservices after using your log-in demat account or with the company, demat mode with CDSL e-Voting page without any further authentication. The URL for users to credentials, click on e-Voting and you your ‘initial password’ is communicated login to Easi / Easiest are https://web.cdslindia.com/myeasi/home/login or can proceed to Step 2 i.e. Cast your vote to you on your email ID. Trace the CORPORATE OVERVIEW www.cdslindia.com and click on New System Myeasi. electronically. email sent to you from NSDL from your 2. After successful login of Easi/Easiest the user will be also able to see the E mailbox. Open the email and open the Voting Menu. The Menu will have links of e-Voting service provider i.e. 4. Your User ID details are given below : attachment i.e. a .pdf file. Open the NSDL. Click on NSDL to cast your vote. Manner of holding Your User ID is: .pdf file. The password to open the 3. If the user is not registered for Easi/Easiest, option to register is available shares i.e. .pdf file is your 8 digit client ID for at https://web.cdslindia.com/myeasi/Registration/EasiRegistration Demat (NSDL or NSDL account, last 8 digits of client ID for CDSL account or folio number for 4. Alternatively, the user can directly access e-Voting page by providing demat CDSL) or Physical shares held in physical form. The .pdf Account Number and PAN No. from a link in www.cdslindia.com home page. a) For Members 8 Character DP file contains your ‘User ID’ and your The system will authenticate the user by sending OTP on registered Mobile who hold shares ID followed by 8 & Email as recorded in the demat Account. After successful authentication, in demat Digit Client ID ‘initial password’. user will be provided links for the respective ESP i.e. NSDL where the account For example if your DP (ii) If your email ID is not registered, e-Voting is in progress. with NSDL. ID is IN300*** and please follow steps mentioned below Client ID is 12****** in process for those shareholders Individual Shareholders 1. You can also login using the login credentials of your demat account through then your user ID is (holding securities in demat your Depository Participant registered with NSDL/CDSL for e-Voting facility. whose email ids are not registered IN300***12******. mode) login through their STATUTORY REPORTS 2. Once login, you will be able to see e-Voting option. Once you click on depository participants b) For Members 16 Digit Beneficiary ID 6. If you are unable to retrieve or have not e-Voting option, you will be redirected to NSDL/CDSL Depository site after who hold For example if your received the “Initial password” or have successful authentication, wherein you can see e-Voting feature. shares in demat Beneficiary ID is forgotten your password: 3. Click on options available against company name or e-Voting service account 12************** a. Click on “Forgot User Details/ provider-NSDL and you will be redirected to e-Voting website of NSDL with CDSL. then your user ID is Password?”(If you are holding shares in for casting your vote during the remote e-Voting period or joining virtual 12************** meeting & voting during the meeting. your demat account with NSDL or CDSL) c) For Members EVEN Number option available on www.evoting.nsdl.com. Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID holding shares followed by Folio and Forget Password option available at above mentioned website. in Physical Form. Number registered b. Physical User Reset Password?” (If you with the company are holding shares in physical mode) option Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login For example if folio available on www.evoting.nsdl.com. through Depository i.e. NSDL and CDSL number is 001*** c. If you are still unable to get the password Login type Helpdesk details and EVEN is 123456 by aforesaid two options, you can send a Individual Shareholders holding securities Members facing any technical issue in login can contact NSDL then user ID request at [email protected] mentioning in demat mode with NSDL helpdesk by sending a request at [email protected] or call at toll is 123456001*** your demat account number/folio

free no.: 1800 1020 990 and 1800 22 44 30 FINANCIAL STATEMENTS number, your PAN, your name and your Individual Shareholders holding securities Members facing any technical issue in login can contact CDSL 5. Password details for shareholders other than registered address etc. in demat mode with CDSL helpdesk by sending a request at [email protected] Individual shareholders are given below: or contact at 022- 23058738 or 022-23058542-43 d) Members can also use the OTP (One Time a) If you are already registered for e-Voting, Password) based login for casting the votes B) Login Method for e-Voting and joining 2. Once the home page of e-Voting system then you can use your existing password to on the e-Voting system of NSDL. virtual meeting shareholders other than is launched, click on the icon “Login” login and cast your vote. Individual shareholders holding securities which is available under ‘Shareholder/ 7. After entering your password, tick on Agree b) If you are using NSDL e-Voting system for in Demat mode and shareholders holding Member’ section. to “Terms and Conditions” by selecting the first time, you will need to retrieve the securities in physical mode. 3. A new screen will open. You will have to on the check box. ‘initial password’ which was communicated How to Log-in to NSDL e-Voting website? enter your User ID, your Password/OTP and to you. Once you retrieve your ‘initial 8. Now, you will have to click on “Login” button. 1. Visit the e-Voting website of NSDL. a Verification Code as shown on the screen. password’, you need to enter the ‘initial Open web browser by typing the following Alternatively, if you are registered for URL: https://www.evoting.nsdl.com/ either password’ and the system will force you to 9. After you click on the “Login” button, Home page NSDL eservices i.e. IDEAS, you can log-in on a Personal Computer or on a mobile. change your password. of e-Voting will open.

84 Annual Report 2020-21 85 Step 2: Cast your vote electronically and join 4. The details of the person who may be b) In case shares are held in demat mode, may experience Audio/Video loss due to General Meeting on NSDL e-Voting system. contacted for any grievances connected please provide DPID-CLID (16 digit Fluctuation in their respective network. It is with the facility for e-Voting on the day DPID + CLID or 16 digit beneficiary therefore recommended to use Stable Wi-Fi How to cast your vote electronically and join of the AGM shall be the same person ID), Name, client master or copy of or LAN Connection to mitigate any kind of General Meeting on NSDL e-Voting system? mentioned for Remote e-voting. Consolidated Account statement, PAN aforesaid glitches. CORPORATE OVERVIEW 1. After successful login at Step 1, you will be (self attested scanned copy of PAN 5. Members who would like to express their able to see all the companies “EVEN” in which General Guidelines for shareholders card), AADHAR (self attested scanned views or ask questions during the AGM you are holding shares and whose voting 1. Institutional shareholders (i.e. other than copy of Aadhar Card) to evoting@ may register themselves as a speaker by cycle and General Meeting is in active status. individuals, HUF, NRI etc.) are required to nsdl.co.in or [email protected] If you are sending their request from their registered send scanned copy (PDF/JPG Format) of an Individual shareholders holding 2. Select “EVEN” of company for which you email address mentioning their name, DP the relevant Board Resolution/ Authority securities in demat mode, you are wish to cast your vote during the remote ID and Client ID/folio number, PAN, mobile letter etc. with attested specimen signature requested to refer to the login method e-Voting period and casting your vote during number at [email protected] from August 23, of the duly authorized signatory(ies) who explained at step 1 (A) i.e. Login method the General Meeting. For joining virtual 2021 (9:00 am IST) to August 26, 2021 are authorized to vote, to the Scrutinizer for e-Voting and joining virtual meeting meeting, you need to click on “VC/OAVM” (5:00 pm IST). Those Members who have by e-mail to [email protected] with for Individual shareholders holding link placed under “Join General Meeting”. registered themselves as a speaker will a copy marked to [email protected] securities in demat mode. only be allowed to express their views/ask 3. Now you are ready for e-Voting as the and [email protected]. questions during the AGM. The Company Voting page opens. Instructions for members for reserves the right to restrict the number of 2. It is strongly recommended not to share attending the agm through vc/oavm speakers depending on the availability of 4. Cast your vote by selecting appropriate your password with any other person and are as under: time for the AGM. options i.e. assent or dissent, verify/modify take utmost care to keep your password the number of shares for which you wish confidential. Login to the e-voting website 1. Member will be provided with a facility to 6. The Members can join the AGM through VC/ STATUTORY REPORTS to cast your vote and click on “Submit” and will be disabled upon five unsuccessful attend the AGM through VC/OAVM through OAVM mode 30 minutes before and after the also “Confirm” when prompted. attempts to key in the correct password. the NSDL e-Voting system. Members may scheduled time of the commencement of the access by following the steps mentioned 5. Upon confirmation, the message “Vote cast In such an event, you will need to go through Meeting by following the procedure mentioned above for Access to NSDL e-Voting successfully” will be displayed. the “Forgot User Details/Password?” or in the Notice. The facility of participation in system. After successful login, you can “Physical User Reset Password?” option the AGM through VC/OAVM will be made 6. You can also take the printout of the votes see link of “VC/OAVM link” placed under available on www.evoting.nsdl.com to available for 1000 members on first come cast by you by clicking on the print option “Join General meeting” menu against reset the password. first served basis. This will not include large on the confirmation page. company name. You are requested to Shareholders (Shareholders holding 2% or click on VC/OAVM link placed under Join 7. Once you confirm your vote on the 3. In case of any queries, you may refer the more shareholding), Promoters, Institutional General Meeting menu. The link for VC/ Investors, Directors, Key Managerial resolution, you will not be allowed to Frequently Asked Questions (FAQs) for OAVM will be available in Shareholder/ Personnel, the Chairpersons of the Audit modify your vote. Shareholders and e-voting user manual for Shareholders available at the download Member login where the EVEN of Company Committee, Nomination and Remuneration will be displayed. Please note that the Committee and Stakeholders Relationship The instructions for members for section of www.evoting.nsdl.com or call on members who do not have the User ID and Committee, Auditors etc., who are allowed to e-voting on the day of the agm are toll free no.: 1800 1020 990 and 1800 22 44 Password for e-Voting or have forgotten attend the AGM without restriction on account as under:- 30 or send a request to Ms. Pallavi Mhatre at [email protected] the User ID and Password may retrieve of first come first served basis.

1. The procedure for e-Voting on the day of the FINANCIAL STATEMENTS the same by following the remote e-Voting AGM is same as the instructions mentioned 4. Process for those shareholders whose email instructions mentioned in the notice to 17. Any person who acquires shares of the above for remote e-voting. ids are not registered with the depositories avoid last minute rush. Company and becomes member of the Company 2. Only those Members/ shareholders, who for procuring user id and password and post-dispatch of Notice of AGM along with the will be present in the AGM through VC/ registration of e mail ids for e-voting for the 2. Members are encouraged to join the Meeting Annual Report before the Cut-Off Date may obtain OAVM facility and have not casted their vote resolutions set out in this notice: through Laptops for better experience. the login ID and password by sending a request on the Resolutions through remote e-Voting to NSDL at [email protected] or at Company’s a) In case shares are held in physical 3. Further Members will be required to email address at [email protected]. However if they and are otherwise not barred from doing mode please provide Folio No., Name allow Camera and use Internet with a are already registered with NSDL for remote so, shall be eligible to vote through e-Voting of shareholder, scanned copy of the good speed to avoid any disturbance e-Voting then they can use their existing user ID system in the AGM. share certificate (front and back), PAN during the meeting. and password for casting their vote. If they forgot 3. Members who have voted through Remote (self attested scanned copy of PAN their password, they can reset their password e-Voting will be eligible to attend the card), AADHAR (self attested scanned 4. Please note that Participants Connecting by using “Forgot User Details/Password?” or AGM. However, they will not be eligible to copy of Aadhar Card) by email to from Mobile Devices or Tablets or through “Physical User Reset Password?” option available vote at the AGM. [email protected] or [email protected] Laptop connecting via Mobile Hotspot on www.evoting.nsdl.com

86 Annual Report 2020-21 87 18. The voting rights of the members shall be in Explanatory statement pursuant to past, he has served as the President of the Indian In light of the above and in recognition of his services, proportion to the paid-up value of their shares section 102(1) of the companies act, Blind Sports Association and as the Chairman of the the Board at its meeting held on July 28, 2021, on the in the equity capital of the Company as on 2013 & details of directors seeking Confederation of Indian Industry (CII) Delhi State recommendation of Nomination and Remuneration the Cut-off Date. appointment/ re-appointment as Council for the year 2007-08. Committee and with approval by the Audit Committee required under listing regulations recommend to the shareholders to confer upon CORPORATE OVERVIEW 19. A person, whose name is recorded in the Register and secretarial standards on general Mr. Kartik Bharat Ram is a graduate from Santa Clara Mr. Arun Bharat Ram, the status and title of Chairman of Members or in the Register of Beneficial Owners meetings University, California and has earned an MBA from Emeritus of the Company for a term of five years with maintained by the depositories, as on the cut-off Cornell University, New York. He is an avid golfer and effect from April 1, 2022. He will, inter alia, mentor and Item No 3 date, only shall be entitled to avail the facility of winner of multiple pro-am Golf tournaments. guide the Board and management including in relation to remote e-voting or e-voting during the AGM. Mr. Kartik Bharat Ram (DIN: 00008557) Mr. Kartik Bharat Ram (DIN: 00008557) has no business strategy, corporate governance related matters Shareholders had appointed Mr. Kartik Bharat Ram shareholding in the Company. Mr. Kartik Bharat Ram and supporting in nurturing relationships with external 20. Mr. Arvind Kohli, (Membership No. FCS 4434, CP (DIN: 00008557) as Deputy Managing Director of is a member of Stakeholders Relationship Committee, forums on policy matters and in brand/ image building of 2818) Practicing Company Secretary, Proprietor the Company for a period of 5 years with effect from Corporate Social Responsibility Committee, the Company apart from advising the Board of Directors of M/s Arvind Kohli & Associates, Company 01.06.2016 in the AGM held on 8th August, 2016. on any other areas that the Board/ Management may Secretaries has been appointed as the Scrutinizer Committee of Directors – Financial Resources and Risk Management Committee of the Company. seek his advice. Further, he will be a permanent invitee to scrutinize the entire e-voting process in a fair At its meeting held on 21.01.2021, the Board to the Board and such other Committee meetings of the and transparent manner. of Directors subject to Members’ approval had Directorships Committee Membership Company as may be decided by the Board. If he attends re-appointed Mr. Kartik Bharat Ram (DIN: 00008557) in other Public any of the Board/Committee, it shall be in capacity as an 21. The results declared along with the report as Deputy Managing Director of the Company for a companies invitee only, with no voting rights. Mr. Arun Bharat Ram, of the Scrutinizer shall be placed on the further period of 5 years with effect from 01June 2021. Kama • Stakeholders as the Chairman Emeritus shall not be deemed to be a Company’s website https://www.srf.com and Members’ approval is sought for his re-appointment. Holdings Limited Relationship Committee director for any purposes of the Act or any other statute on the website of NSDL www.evoting.nsdl.com The Company has received a notice under Section • Committee of Directors STATUTORY REPORTS or rules made thereunder. immediately after the declaration of results by 160 from a member signifying his intention to propose Financial Resources the Chairman or a person authorized by him in the candidature of Mr. Kartik Bharat Ram at the • Risk Management Mr. Arun Bharat Ram, being the father of writing. The results shall also be immediately forthcoming Annual General Meeting, copy of which is Committee Mr. Ashish Bharat Ram, the Managing Director of the forwarded to the concerned Stock Exchanges available on the website of the Company www.srf.com Shri Nil Company and Mr. Kartik Bharat Ram, Deputy Managing i.e. BSE and NSE. Educare Limited Director of the Company, is a “related party” in relation The terms of his re-appointment and remuneration to the Company in terms of the Act. Accordingly, the 22. Since the AGM will be held through VC/OAVM, including minimum remuneration are set out in None of the Directors or Key Managerial Personnel or payments to be made and facilities to be provided the Route Map is not annexed to this Notice. the resolution. their relatives except Mr. Kartik Bharat Ram himself, to Mr. Arun Bharat Ram in his capacity as Chairman Mr. Arun Bharat Ram, Chairman and Mr. Ashish Bharat Emeritus, are related party transactions, and therefore, 23. In terms of SEBI Listing Regulations, The information required by the Listing Regulations Ram, Managing Director, are in any way concerned or require shareholders’ approval in accordance with the application for: (i) Deletion of name of the is given below: interested, financially or otherwise, in het Resolution. provisions of section 188 of the Act. This transaction deceased member(s) where the shares are Mr. Kartik Bharat Ram is involved in the creation and is not a material related party transaction in terms of held in the name of two or more member(s) In view the above, the Board of Directors recommend strengthening of a performance-based culture within regulation 23 of the Listing Regulations. (ii) Transmission of shares to the legal heir(s)/ the Ordinary Resolution set out at Item No. 3 of the the organization, through value-based leadership. representative(s), where deceased member He is also passionately involved in driving the Notice for approval of the members. Mr. Arun Bharat Ram, aged 80 years is B. Sc. in

was the sole holder of shares (iii) Transposition FINANCIAL STATEMENTS aspirations of the company and an advocate on Industrial Engineering from the University of Michigan, of shares – when there is a change in the order Item No. 4 issues related to environmental responsibility and USA. He set up SRF in 1970 and it is under the of names in which physical shares are held Mr. Arun Bharat Ram has expressed his intention to sustainability. With interests’ that center on human stewardship of Mr. Arun Bharat Ram that the Company jointly in the names of two or more member step down as Executive Chairman and Director of motivation, leadership, corporate transformation and has achieved all round growth and made for itself a has to be accompanied with a self-attested the Company from the closing of business hours on accountability, Mr. Kartik Bharat Ram has successfully reputation in the core areas of its business. copy of their PAN along with the other required shaped SRF into being a trusted corporate brand – March 31, 2022. documents to the Company’s Registrar one that is respected for its commitment to deliver Mr. Arun Bharat Ram, Chairman of SRF Limited irrespective of the value of the transaction. sustainable growth through total excellence. Mr. Arun Bharat Ram joined the Board of the Company Members are requested to bear in mind the in 1975 and has been instrumental to the spectacular completed his schooling from The Doon School, India, which has been consistently ranked the best aforesaid requirements while communicating In addition, Mr. Kartik Bharat Ram is the Chairman success of the Company and the Group over the last with the Company or Registrar for any of the of KAMA Holdings, which is the holding Company five decades.Considering his tremendous experience, all-boys residential school in India. He then went on purposes stated above. Section 72 of the Act, of SRF Limited. He also serves as a Director of Shri it would be in the interest of the Company to to acquire Vor-Diploma from the Technical University provides for Nomination by the members of Educare Limited, a company in the school education continue to benefit from his rich experience, valuable of Darmstadt, Germany and later graduated in the Company and the members are requested consultancy space. He is a fellow of the India knowledge and wisdom from time to time in a role of Industrial Engineering from the University of Michigan, to avail this facility. Leadership Initiative, Aspen Institute India. In the the mentor to the Board of Directors. Ann Arbor, USA.

88 Annual Report 2020-21 89 As Chairman of SRF Limited, Mr. Arun Bharat Ram is promoting computer-aided learning, and through the The Board recommends the Resolution at Item No. In order to provide for resources for financing of credited with turning his family owned multi-business digital inclusion of communities. Apart from providing 4 to be passed as an Ordinary resolution. capital expenditure requirements, re-financing of organization into a world class conglomerate. “Quality Education to All”, the Foundation also works existing debt, general corporate purposes and such Today, SRF’s business portfolio covers Fluorochemicals, in the areas of creating awareness on issues related None of the Directors or Key Managerial Personnel other purposes of the Company as are allowed to health and hygiene, natural resource management (KMP) or their relatives except Mr. Arun Bharat by the applicable laws, the Company may be

Specialty Chemicals, Packaging Films, Technical CORPORATE OVERVIEW Textiles, Coated and Laminated Fabrics. and affirmative action on a sustainable basis. Ram himself and Mr. Ashish Bharat Ram, Managing required to offer or invite subscription for secured/ Director and Mr. Kartik Bharat Ram, Deputy unsecured redeemable non-convertible debentures, He is also the Chairman of Lady Shri Ram College Mr. Arun Bharat Ram also serves as the Chairman Managing Director who are his sons, are in any way in one or more series/tranches on private placement. for Women in Delhi and The Shri Ram Schools in of SRF Foundation. SRF Foundation runs one of concerned or interested, financially or otherwise, in Further, SEBI circular dated 26.11.2018 require Delhi and Gurgaon. the largest community programs in the country, the Resolution. that 25% of the incremental borrowings by a large corporate (as defined in that circular) during imparting education and vocational training programs A keen musician, having learnt under the renowned a financial year shall be met by way of issuance to underprivileged children and youth by improving maestro, Bharat Ratna Pt. Ravi Shankar, he is an Item No. 5 of debt securities in accordance with applicable the infrastructure facilities in Government schools, accomplished sitar player. The Board, on the recommendation of the Audit Committee, has approved the appointment of the Cost SEBI regulations. Information required to be disclosed pursuant to Rule 15 of the Companies (Meetings of the Boards and its Auditors to conduct audit of the cost records of the Pricing of debentures is determined and impacted by Powers) Rules, 2014:- Company for the financial year endingMarch 31, 2022 general economic conditions and monetary policy, at the remuneration as provided in the resolution. 1. Name of Related Party Mr. Arun Bharat Ram Company specific rating and outlook of the investor 2. Name of Director or KMP who is Mr. Ashish Bharat Ram, Managing Director In accordance with the provisions of Section 148 of on the Company. related, if any. Mr. Kartik Bharat Ram, Deputy Managing Director the Act read with the Companies (Audit and Auditors) 3. Nature of relationship Mr. Arun Bharat Ram is the father of Mr. Ashish Bharat Ram and None of the Directors/Key Managerial Personnel Rules, 2014, the remuneration payable to the Cost STATUTORY REPORTS of the Company/their relatives are, in any way, Mr. Kartik Bharat Ram Auditors has to be ratified by the shareholders concerned or interested, financially or otherwise, in 4. Nature, material terms, monetary value of the contract or arrangement of the Company. Nature of the Arrangement the Resolution. Mr. Arun Bharat Ram shall act as a mentor and guide to the Board of Directors/Management in the None of the Directors or Key Managerial Personnel In view of the above, the Board of Directors matters relating to :- or their relatives are, in any way, concerned or recommends the Special Resolution set out at Item • Business Strategy interested, financially or otherwise, in het Resolution. • Corporate Governance No. 6 of the Notice for approval of the members authorising the Board to issue redeemable, • Supporting in nurturing relationships with external forums on policy matters Both the cost auditors had rendered satisfactory • Brand and image building for the Company non-convertible Debentures by private placement for service during their last tenure, therefore the Board of ` • Advice to the Board/Management in such other matters as may be requested, from time to time. an aggregate amount not exceeding 1500 crores, in Directors recommends Ordinary Resolution set out at one or more tranches, during the period of one year Material Terms Item No. 5 of the Notice for approval by the members. from the date of this Annual General Meeting. The appointment, if approved by the members, shall be effective from st1 April, 2022 for a period of 5 years. The appointment can be terminated by either party by giving a prior notice of 3 months to Item No. 6 IMPORTANT COMMUNICATION TO MEMBERS the other party. As per the provisions of Section 42 of the Companies The members who have not registered their e-mail Monetary Terms Act, 2013 read with Companies (Prospectus and addresses, so far, are requested to register their • Payment of Fee/ Remuneration : ` 60 lacs p.a. allotment of Securities) Rules, 2014, private placement e-mail addresses, in respect of electronic holdings FINANCIAL STATEMENTS • Perquisites and Allowances : For housing and maintenance, medical expenses & of redeemable, non-convertible debentures requires with the Depository through their concerned insurance reimbursement, leave travel, personal accident insurance, car expenses etc. approval of shareholders by way of special resolution. Depository Participants. Members who hold shares in not exceeding ` 90 lacs p.a. However, the Company may pass a special resolution physical form are requested to register the same with • Reimbursements : All the expenses incurred on travelling, boarding, lodging, club, entertainment once in a year for all the offers or invitation for such the Company’s Registrar & Transfer agent M/s KFin and other incidental expenses while providing the services for or on behalf of the Company shall debentures during the year. Technologies Pvt. Ltd. be reimbursed on actual basis. • Facilities : Mr. Arun Bharat Ram shall be provided requisite office, communication and such other facilities as required to effectively discharge his duties. 5. Any other information relevant • Mr. Arun Bharat Ram is promoter of the company and having or important for the members shareholding interest in the company besides the remuneration to take a decision on the proposed as “Chairman Emeritus”. proposed resolution. • Entities falling under the definition of related parties shall not vote to approve this transaction.

90 Annual Report 2020-21 91 Appropriation (` in Crores) Particulars Standalone Consolidated 2020-21 2019-20 2020-21 2019-20

Interim dividend on Equity Shares 141.31 80.47 141.31 80.47 CORPORATE OVERVIEW Corporate Tax on Dividend - 16.54 - 16.54 Other comprehensive income arising from (1.57) 5.33 (1.84) 5.39 re-measurement of defined benefit obligation Amount transferred to Debenture 62.50 - 62.50 - Redemption Reserve Profit carried to Balance Sheet 4,551.58 3,828.76 5,113.66 4,117.69

Equity Dividend ` 414.40 Crores, profit after tax (PAT) on continuing During the year, your Company has paid two interim operations on a consolidated basis increased by 30.89 dividends of ` 5 per share and ` 19 per share per cent from ` 915.90 Crores in 2019-20 to ` 1198.25 aggregating to ` 24 per share, amounting to ` 141.31 Crores in 2020-21. Crores. The Board of Directors of the Company has not recommended any final dividend. Transfer to Reserves In view of the statutory provisions of the Companies Operations Review Act, 2013 the Board of Directors has decided not to STATUTORY REPORTS Total revenue from operations of the Company on transfer any amount to the reserves consequent to Board’s Report standalone basis increased by 10.38 per cent from declaration of dividend. ` 6330.84 Crores in 2019-20 to ` 6988.32 Crores in Dear Members, 2020-21. The profit before interest, depreciation and Qualified Institutional Placement (QIP) During the year the Company allotted 1764705 equity th tax (PBIDT) including ‘other income’ on a standalone Your Directors are pleased to present the 50 Annual Report for the year ended March 31, 2021. shares through Qualified Institutional Placement (QIP) basis increased from ` 1315.80 Crores in 2019-20 to at an issue price of ` 4250 per equity share (including Financial Results ` 1804.78 Crores in 2020-21. a premium of ` 4240 per equity share) aggregating to (` in Crores) ` 750 crore on October 17, 2020. Pursuant to the said Particulars Standalone Consolidated Profit before tax (PBT) from continuing operations on allotment the paid up equity capital of the Company 2020-21 2019-20 2020-21 2019-20 a standalone basis increased by 67.84 per cent from increased from ` 574805000 divided into 57480500 Revenue from operations 6,988.32 6,330.84 8,400.04 7,209.41 ` 780.48 Crores in 2019-20 to ` 1309.97 Crores in shares of ` 10 each to ` 592452050 divided into Other income 63.30 53.29 66.35 49.05 2020-21. After accounting for the provision for tax of 59245205 shares of ` 10 each. Details of utilization ` 384.91 Crores, profit after tax (PAT) on continuing Total Income 7,051.62 6,384.13 8,466.39 7,258.46 of QIP proceeds are given in Corporate Governance Profit Before Interest, Depreciation & Tax (PBIDT) 1,804.78 1,315.80 2,199.68 1,503.99 operations on a standalone basis increased by 16.56 ` ` Report which forms part of the Board’s Report. Less: Interest & Finance Charge 111.21 182.11 133.95 200.68 per cent from 793.59 Crores in 2019-20 to 925.06 Crores in 2020-21 Less: Depreciation and amortisation charge 383.60 353.21 453.08 388.61 Non-Convertible Debentures (NCD) FINANCIAL STATEMENTS Profit Before Tax (PBT) from continuing operations 1,309.97 780.48 1,612.65 914.70 During the year the Company allotted Listed, Rated, Total revenue from operations of the Company on Less: Provision For Taxation including 384.91 (13.11) 414.40 (1.20) Secured, Taxable, Redeemable, Non-Convertible consolidated basis increased by 16.51 Deferred Tax Charge Debentures of ` 250 Crores on September 17, 2020 per cent from ` 7209.41 Crores in 2019-20 to Profit After Taxation (PAT) from continuing operations 925.06 793.59 1,198.25 915.90 with maturity date of September 16, 2022. ` 8400.04 Crores in 2020-21. The profit before Profit Before Tax (PBT) from discontinued operations* - 241.82 (2.73) 155.85 interest, depreciation and tax (PBIDT) including Less: Provision For Taxation including - 61.23 (2.42) 52.66 Management Discussion and Analysis ‘other income’ on a consolidated basis increased Deferred Tax Charge A detailed section on the Management Discussion and from ` 1503.09 Crores in 2019-20 to ` 2199.68 Profit After Taxation (PAT) from - 180.59 (0.31) 103.19 Analysis forms part of the Annual Report. A review of Crores in 2020-21. discontinued operations the Businesses is also given in that section. Total Profit After Taxation (PAT) from continuing and 925.06 974.18 1,197.94 1,019.09 Profit before tax (PBT) from continuing operations on ESG Report discontinued operations a consolidated basis increased by 76.30 per cent from The Company has voluntarily decided to disclose Add: Profit Brought Forward 3,828.76 2,956.92 4,117.69 3,201.00 ` 914.70 Crores in 2019-20 to ` 1612.65 Crores in the Environment, Social and Governance Initiatives Total 4,753.82 3,931.10 5,315.63 4,220.09 2020-21. After accounting for the provision for tax of taken by it from time to time in a ESG Report for

92 Annual Report 2020-21 93 FY 2020-21 which forms part of the Annual Report. This company is engaged in the business of acquisition In light of the above and in recognition of his In accordance with the aforesaid Policy, the As stipulated under the Securities and Exchange and renting of real estate properties. services, the Board at its meeting held on July 28, Nomination and Remuneration Committee evaluates Board of India (LODR) Regulations, 2015 (“Listing 2021, on the recommendation of Nomination and the performance of the Executive Directors, Non- Regulations”), the Business Responsibility Report has The consolidated financial statements of the Company Remuneration Committee and with approval by the Independent non- executive Director and Independent been prepared for 2020-21 and is presented along prepared in compliance with applicable Accounting Directors. Board evaluates, its own performance on Audit Committee recommend to the shareholders to CORPORATE OVERVIEW criteria like discharge of duties and responsibilities with the above ESG Report. Standards and other applicable laws including all confer Mr. Arun Bharat Ram, the status and title of under the Companies Act and Listing Regulations, the above subsidiaries duly audited by the statutory Chairman Emeritus of the Company for a term of five fulfilment of its role with respect to guiding corporate Subsidiaries, Joint Ventures and Associate auditors are presented in the Annual Report. years with effect from April 01, 2022 on the terms and companies strategy, risk policy, business plans, corporate conditions as stated in the resolution contained in the performance, monitoring company’s governance As on March 31, 2021, your Company had 6 (six) No subsidiaries were divested during the year. notice of the 50th annual general meeting. practices etc. and number of meetings held during the wholly owned subsidiary companies whereby 1 (one) No company has become/ceased to be a joint venture year and the performance of its Committees on the wholly owned subsidiary company is registered in or associate during the year. A report on performance All the Independent Director(s) have submitted the criteria like fulfilment of role of the Committee with India and remaining 5 (five) are registered outside and financial position of each of the subsidiaries and declaration of meeting the criteria for independence reference to its terms of reference, the Companies India. 2 (two) of these are direct wholly owned associates is presented in a separate section in this as provided in Section 149(6) of the Companies Act, Act and the Listing Regulations and the number of subsidiaries and rest 4 (four) are step-down wholly Annual Report. Please refer (AOC-1) annexed to 2013 and rules applicable thereunder and as per committee meetings held during the year. owned subsidiaries. The consolidated profit and loss the financial statements in the Annual Report at the SEBI Regulations. They are also independent of account for the period ended March 31, 2021 includes The details of programmes for familiarisation of page no. 348. The Policy for determining material the management. the profit and loss account for these 6 (six) wholly subsidiaries as approved may be accessed on the Independent Directors with the Company, their owned subsidiaries for the complete Financial Year roles, rights, responsibilities in the Company, nature Company’s website at the link: The Board confirms that independent directors ended March 31, 2021. of the industry in which the Company operates, appointed during the year possess the desired integrity,

business model of the Company and related STATUTORY REPORTS https://www.srf.com/wp-content/uploads/ These subsidiaries are:- expertise and experience. The Independent Directors matters are put up on the website of the Company 2021/04/2019-02-04-SRF-Ltds-policy-on-dealing- 1. SRF Global B.V. is a wholly owned subsidiary of of the Company have confirmed that they have enrolled at the link https://www.srf.com/wp-content/uplo with-Related-Party-Transactions.pdf the Company incorporated in the Netherlands. themselves in the Independent Directors’ Databank ads/2021/04/2021-Familarisation-programme-for- This entity is an SPV formed for the purpose of maintained with the Indian Institute of Corporate Affairs Independent-Directors-v2.pdf The annual accounts of the subsidiary companies will holding investments and mobilizing funds for the (‘IICA’) in terms of Section 150 of the Act read with also be kept open for inspection at the registered During the year 2020-21, five meetings of the Board 4 (four) step-down subsidiaries of the Company. Rule 6 of the Companies (Appointment & Qualification office of the Company and of respective subsidiary of Directors were held. For further details, please of Directors) Rules, 2014. Some of the Directors are companies. Further, the annual accounts of the refer to report on Corporate Governance on page 2. SRF Industries (Thailand) Ltd. (a wholly owned exempt from the requirement to undertake the online subsidiaries are also available on the website of the no. 135 of this Annual Report. subsidiary of SRF Global BV) is incorporated proficiency self-assessment test conducted by IICA Company viz. www.srf.com in Thailand engaged in the manufacture and and the remaining have been advised to undergo the Directors’ Responsibility Statement distribution of packaging films. Directors & Key Managerial Personnel Online Proficiency Test as prescribed under Companies Pursuant to the requirements of Section 134(3)(c) of (Appointment and Qualifications of Directors) Rules, the Companies Act, 2013, it is hereby confirmed that : 3. SRF Flexipak (South Africa) (Pty) Ltd. (a wholly Dr. Meenakshi Gopinath, Director CSR, is retiring 2014 as amended. (a) in the preparation of the annual accounts, the owned subsidiary of SRF Global BV) is incorporated by rotation and has expressed her intention not to applicable accounting standards had been in South Africa engaged in manufacture and seek re-appointment. Your Board places on record its During the year, the board has re-appointed followed along with proper explanation relating distribution of packaging films. sincere appreciation for the contribution made by her during her tenure. Mr. Kartik Bharat Ram as Deputy Managing Director to material departures; FINANCIAL STATEMENTS and resolutions for his re-appointment form part of 4. SRF Industex Belting (Pty) Ltd. (a wholly owned (b) the directors had selected such accounting the notice for the AGM. The Board recommends for subsidiary of SRF Global BV) is incorporated in Mr. Arun Bharat Ram has expressed his intention to policies and applied them consistently and made South Africa presently in the business of trading step down as Executive Chairman and Director of the his re-appointment. His resume is furnished in the judgments and estimates that are reasonable in refrigerant gases in South Africa and other Company from the closing hours on March 31, 2022. explanatory statement to the notice of the ensuing and prudent so as to give a true and fair view of neighbouring countries. Annual General Meeting. the state of affairs of the company at the end of Mr. Arun Bharat Ram joined the Board of the Company the financial year and of the profit and loss of the 5. SRF Europe Kft (a wholly owned subsidiary in 1975 and has been instrumental to the spectacular In accordance with the requirements of the Companies company for that period; of SRF Global BV) is incorporated in Hungary success of the Company and the Group over the last Act and the Listing Regulations, the Company (c) the directors had taken proper and sufficient to undertake the manufacture of packaging five decades. Considering his tremendous experience, has formulated a Nomination, Appointment and care for the maintenance of adequate accounting films in Hungary. it would be in the interest of the Company to Remuneration Policy. A copy of the Policy is enclosed records in accordance with the provisions of this continue to benefit from his rich experience, valuable as Annexure I and on the website of the Company Act for safeguarding the assets of the company 6. SRF Holiday Home Ltd. is a wholly owned knowledge and wisdom from time to time in a role of at the link: https://www.srf.com/wp-content/ and for preventing and detecting fraud and other subsidiary of the Company incorporated in India. the mentor to the Board of Directors. uploads/2021/04/2019-02-04-SRF-NRC-Policy.pdf irregularities;

94 Annual Report 2020-21 95 (d) the directors had prepared the annual accounts Director (CSR) (Chairperson of the Committee), that may adversely affect the company and manage • the review systems track the progress of the plan on a going concern basis; Mr. Arun Bharat Ram, Chairman of the Company, risks in order to provide reasonable assurance to the and ensure that timely remedial measures are Mr. Kartik Bharat Ram, Deputy Managing Director and various stakeholders. In the opinion of your Board, taken, to minimise deviations from the plan. (e) the directors had laid down internal financial Mr. Lakshman Lakshminarayan, Independent Director none of the risks which have been identified may controls to be followed by the company and that as other members. threaten the existence of the Company. The Company uses Enterprise Resource Planning (ERP) CORPORATE OVERVIEW such internal financial controls are adequate and supported by in-built controls that ensures reliable The Board has constituted Risk Management were operating effectively ; and The Corporate Social Responsibility Committee and timely financial reporting. Well-established & has formulated and recommended to the Board, a Committee consisting of Mr. Ashish Bharat Ram as robust internal audit processes, both at the Corporate (f) the directors had devised proper systems to Corporate Social Responsibility Policy (CSR Policy) Chairman, Mr. Kartik Bharat Ram and Ms. Bharti Gupta and the Business levels, continuously monitor the ensure compliance with the provisions of all indicating the projects to be undertaken by the Ramola as members of the Committee. adequacy and effectiveness of the Internal Controls applicable laws and that such systems were Company, which has been approved by the Board. and status of compliance with operating systems, Internal Financial Controls adequate and operating effectively. internal policies and regulatory requirements. The Company believes that Internal Control is a The CSR Policy may be accessed on the Company’s All Internal Audit findings and control systems are necessary concomitant of the principle of Governance. Contracts and Arrangements with Related website at the link https://www.srf.com/wp-content/ periodically reviewed by the Audit Committee of the uploads/2021/04/25032021-Final-SRF-Corporate- It remains committed to ensuring an effective Internal Parties Board of Directors, which provides strategic guidance Social-Responsibility-policy.pdf Control environment that provides assurance to All contracts/ arrangements/ transactions entered by on Internal Controls. the Company during the financial year with related the Board of Directors, Audit Committee and the parties were in the ordinary course of business and The Company would also undertake other need- management that there is a structured system for: The Company also has a robust & comprehensive on an arms’ length basis and in accordance with the based initiatives in compliance with Schedule framework of Control Self-Assessment (CSA) which • close and active supervision by the Transfer Pricing Policy/basis approved by the Audit VII to the Act. continuously verifies compliance with laid down Audit Committee Committee and/or in accordance with the Omnibus policies & procedures and help plug control gaps, approval of the Audit Committee. During the year, During the year, the provisions of Companies Act 2013 • business planning and review of goals achieved CSA comprises Automated and Manual Controls. STATUTORY REPORTS the Company had not entered into any contract/ were amended and consequently the Annual Budget CSA Assurance Testing completes the control • evaluating & managing risks arrangement/ transaction with related parties for CSR for financial year ended March 31, 2021 compliance loop. In addition to this, Compliance ` which could be considered material in accordance was recomputed to 12.88 Crores. Out of this, total • policies and procedures adopted for ensuring Manager (CM) a facilitating tool sends pre-emptive ` with the Policy on Materiality of Related Party spending on CSR during the year is 10.18 Crores orderly Financial Reporting alert to meet specific calendared regulatory deadlines ` Transactions. Accordingly, the disclosure of related and the remaining amount of 2.70 Crores has been in the company. • timely preparation of reliable Financial Information party transactions as required under Section 134(3) earmarked for ongoing projects which commenced (h) of the Companies Act, 2013 (‘the Act’) in Form during the year. Accordingly, the said amount of • accuracy and completeness of the Listing of Equity Shares No. AOC-2 is not applicable to the Company for FY ` 2.70 Crores was transferred to a separate SRF Accounting Records SRF’s equity shares are listed at the BSE Ltd. and the 2020-21 and hence the same is not provided. Limited-Unspent CSR Account- 2020-21 to be spent National Stock Exchange of India Ltd. on ongoing projects. Annual Report on CSR activities • ensuring legal and regulatory compliance Your Directors draw attention of the members to is annexed herewith as Annexure II. • protecting company’s assets SRF Limited Long term Share based Note 32 to the notes to accounts forming part of Incentives Plan, 2018 • prevention and detection of fraud and error the financial statements which sets out related party Risk Management During the year, no equity shares were allotted under transaction disclosures. Enterprise Risk Management is a risk based approach • validation of IT Security Controls SRF Limited Long Term Share Based Incentive Plan, to manage an enterprise, identifying events that 2018 to eligible employees.. There has been no • Entity Level Controls Particulars of Loans given, Investments may affect the entity and manage risks to provide change in the said Plan. The said Plan is in compliance FINANCIAL STATEMENTS made, Guarantees given and Securities reasonable assurance regarding achievement of with the Securities and Exchange Board of India provided entity’s objective. Interrelated control systems, covering all financial (Share Based Employee Benefits) Regulations, 2014. Particulars of loans given, investments made, and operating functions, assure fulfilment of In Compliance with Circular dated June 16, 2015 guarantees given and securities provided alongwith The risks identified by the Company broadly fall into these objectives. issued by SEBI under the said Regulations, necessary the purpose for which the loan or guarantee or the following categories viz. strategic risks, operational disclosures are given below: security was proposed to be utilised by the recipient risks, regulatory risks, financial and reporting risks, Significant features of these control systems include: a. In terms of the “Guidance Note on accounting are provided in the standalone financial statement and IT & Cyber risks. The risk management process • the planning system that ensures drawing (Please refer to Note 41(d) of Additional Disclosures for employee share based payments” issued by consists of risk identification, risk assessment, risk up of challenging goals and formulation forming part of the standalone financial statement). prioritization, risk treatment or mitigation, risk ICAI and Ind AS 102, note no. 34 on Employee of detailed strategies and action plans for monitoring and documenting the new risks. Share Based Payments forms part of the notes to achieving these goals. Corporate Social Responsibility (CSR) standalone annual accounts appearing on page As per the requirements of the Companies Act, 2013, Your Board has laid down a risk management framework • the risk assessment system that accounts for all no. 227 of the Annual Report 2020-21. Note No. the Company has a Corporate Social Responsibility and policy to address the above risks. The objective of likely threats to the achievement of the plans, and 1.B.17 forming part of the Accounting Policies Committee comprising of Dr. Meenakshi Gopinath, the policy is to identify existing & emerging challenges draws up contingency plans to mitigate them. which refers to this is also appearing on page

96 Annual Report 2020-21 97 no. 180 of the Annual Report 2020-21.The same the Corporate Governance Report. A copy of the voice their concerns. The Whistle blower Policy, Code Further, Secretarial Compliance Report dated are also reproduced in the “Investors Section” Code is also placed at the website of the Company at of Conduct to Regulate, Monitor and Report Trading May 19, 2021 issued as per SEBI Circular CIR/ of the website (www.srf.com). The weblink for https://www.srf.com/wp-content/uploads/2020/11/ by Insiders and Code of Conduct for Directors and CFD/CMD1/27/2019 dated February 08, 2019 was the same is https://www.srf.com/investors/ Code-of-Conduct-for-Directors-and-Senior- Sr. Management Personnel can be accessed on the given by M/s Sanjay Grover & Associates, Practising corporate-governance/ Management-Personnel.pdf Company’s website at the link: https://www.srf.com/ Company Secretary which was submitted to CORPORATE OVERVIEW investors/corporate-governance/ Stock Exchanges. b. During financial year 2018-19, shares under Part Consolidated Financial Statement B- SRF ESPS, 2018 of the SRF Long Term Share The consolidated financial statements of the Company Cost Audit Reporting of Fraud Incentive Plan, 2018 were issued directly to the have been prepared in accordance with the Indian Pursuant to various circulars issued by Ministry of During the year under review, the Statutory Auditors, eligible employees as decided by the Board/ Accounting Standards (Ind AS) to comply with the Corporate Affairs, the Company is required to maintain Cost Auditors and Secretarial Auditors have not Nomination and Remuneration Committee of the Accounting Standards specified under Section 133 cost records for all the products being manufactured reported any instances of frauds committed in the Company. Hence, the diluted EPS and basic EPS of the Companies Act, 2013, read with Companies by it and get the same audited by a cost auditor. Company by its officers or employees, to the Audit for this year are the same. Basic EPS for 2020-21 (Indian Accounting Standards) Rules, 2015 and other Committee under Section 143(12) of the Act details of from continuing and discontinued operations relevant amendments issued thereafter of the Act. M/s. H. Tara & Co., Cost Accountants, was appointed which needs to be mentioned in this Report. was ` 158.72 per Share. to conduct cost audit of the accounts maintained by Audit Committee the Company for the financial year 2021-22 in respect Responding to an Unprecedented As on March 31, 2021 the Audit Committee Challenge: The COVID-19 Pandemic c. Other Disclosures mandated by the said circular of all the relevant product groups of Technical Textiles comprises of Independent Directors namely, FY 2020-21 was an unprecedented year with COVID-19 are given in Annexure III. Business and other Businesses of the Company. Mr. Lakshman Lakshminarayan (Chairman of Pandemic impacting the globe and global supply Certificate from the Auditors of the Company the Committee), Mr. Vellayan Subbiah and chains, amidst the biggest health crisis ever faced M/s. Sanjay Gupta & Associates, Cost Accountant, dated July 28, 2021 that SRF Limited Employees Ms. Bharti Gupta Ramola as other members. All the by the world. In order to respond to the pandemic

was appointed to conduct cost audit of the accounts STATUTORY REPORTS Long term Share Based Incentive Plan, 2018 recommendations made by the Audit Committee were effectively, SRF navigated through these difficult maintained by the Company for the financial year has been implemented in accordance with accepted by the Board. times by developing and adopting a multi-pronged 2021-22 in respect of all the relevant product groups these regulations and in accordance with the strategy. While the disruption in operations due to the of Chemicals Business and Packaging Films Business resolution of the company shall be placed in the Accounts and Audit COVID-19 related nationwide lockdown weighed on of the Company. forthcoming Annual general meeting. M/s BSR & Co. LLP, Chartered Accountants (Registration the overall performance, the company demonstrated No. 101248W/W-100022) were appointed as Statutory agility in the expeditious resumption of manufacturing, th M/s. Sanjay Gupta & Associates, Cost Accountant was Dividend Distribution Policy Auditors for 5 years in 47 annual general meeting keeping all safety measures into consideration as well th nominated as the Company’s Lead Cost Auditor. In compliance with the Listing Regulations, your to hold office from the conclusion of 47 Annual as the supply chain and distribution operations to nd Board had formulated a Dividend Distribution Policy. General Meeting until the conclusion of 52 annual support the customer requirements efficiently. A copy of the said policy is available on the website general meeting. The remuneration of the cost auditors for financial year of the Company at https://www.srf.com/wp-content/ 2021-22 is subject to ratification by the shareholders. The company practised extreme care and caution The observations of the auditors are explained uploads/2020/11/Dividend-Distribution-Policy.pdf Accordingly a suitable item has been included in the towards safeguarding the health and well-being of wherever necessary in appropriate notes to the notice of the ensuing annual general meeting. its employees and partners. The company adhered accounts. The Auditors Report does not contain any Corporate Governance to various guidelines and advisories issued by the qualification, reservation, adverse remark or disclaimer. Certificate of the auditors of your Company regarding The Cost Audit reports for audit of the said products authorities from time-to-time including maintaining for the financial year 2019-20, conducted by compliance of the conditions of corporate governance Vigil Mechanism social distancing at all its plant operations. In addition M/s. H. Tara, Cost Accountants (M. No. 17321) and as stipulated in regulation 34(3) of the Securities FINANCIAL STATEMENTS In compliance with the provisions of the Companies to the employees and partners, looking after the and Exchange Board of India (Listing Obligations M/s Sanjay Gupta & Associates, Cost Accountants communities has been of paramount importance Act, 2013 and Listing Regulations, the company and Disclosure Requirements) Regulations, 2015 is (M. No. 18672), have been filed with the Ministry of to the company. has established a vigil mechanism for directors, attached to the report as Annexure IV. Corporate Affairs on August 28, 2020. The due date employees and other stakeholders to report concerns for filing was August 29, 2020. Personnel about unethical behaviour, actual or suspected fraud In compliance with the requirements of the regulation The statement containing names of top ten employees or violation of the company’s code of conduct. 17(8) of the aforesaid regulations, a certificate from Secretarial Auditor in terms of remuneration drawn and the particulars Managing Director and President & CFO was placed The Vigil Mechanism of the Company consists of The Board has appointed M/s Sanjay Grover & employees as required under section 197 (12) of the before the Board. Code of Conduct for employees, Policy against Associates, Practising Company Secretary, to conduct Act read with Rule 5(2) of the Companies (Appointment sexual harassment, Whistleblower Policy, Code of Secretarial Audit for the financial year 2020-21. and Remuneration of Managerial Personnel) Rules, All Board members and Corporate Leadership Team Conduct to Regulate, Monitor and Report Trading The Secretarial Audit Report for the financial year 2014, is provided in a separate annexure forming part (CLT) have affirmed compliance with the Code by Insiders and Code of Conduct for Directors and ended March 31, 2021 is annexed herewith as of this report. Further, the report and the accounts are of Conduct for Board and Senior Management Sr. Management Personnel. These taken together Annexure V to this Report. The Secretarial Audit being sent to the members excluding the aforesaid Personnel. A declaration to this effect duly signed constitute the vigil mechanism through which Report does not contain any qualification, reservation annexure. In terms of Section 136 of the Act, the said by the Managing Director is enclosed as a part of Directors, employees and other stakeholders can or adverse remark. Annexure is open for inspection at the registered office

98 Annual Report 2020-21 99 of the Company during business hours on working 1. Details relating to deposits covered under days upto the date of ensuing general meeting. Chapter V of the Companies Act, 2013. Annexure I to BOARD’S REPORT Any shareholder interested in obtaining a copy of the 2. Neither the Chairman, Managing/Deputy same may write to the Company Secretary. Managing Director nor Whole-time Director Nomination, Appointment and Remuneration Policy Disclosures pertaining to remuneration and other received any remuneration or commission from CORPORATE OVERVIEW details as required under Section 197(12) of the Act any of the Company’s subsidiaries. A. Introduction read with Rule 5(1) of the Companies (Appointment This Policy on Nomination, Appointment and Remuneration of Directors, Key Managerial Personnel, Senior 3. No significant or material orders were passed and Remuneration of Managerial Personnel) Rules, Management Personnel and Other Employees has been formulated and amended from time to time in by the Regulators or Courts or Tribunals which 2014 are provided in Annexure VI. accordance with the provisions of Section 178 of the Companies Act, 2013 (the Act) and the Listing impact the going concern status and Company’s Regulations by the Nomination and Remuneration Committee of the Directors of the Company. Conservation of Energy, Technology Absorption, operations in future. Foreign Exchange Earnings & Outgo B. Definitions As per the requirement of The Sexual Harassment The details as required under the Companies Directors : Directors (other than Managing Director(s) and Whole-time Director(s)) of Women at Workplace (Prevention, Prohibition (Accounts) Rules, 2014 are given as Annexure VII to appointed under the provisions of the Companies Act, 2013 and rules the Directors’ report. & Redressal) Act, 2013 (‘Act’) and Rules made made thereunder. thereunder, your Company has constituted Internal Key Managing Director(s), Whole-time Director(s), Chief Executive Officers of the Annual Return Complaints Committees (ICC). During the year, no The Annual Return (MGT-7) of the Company as on Managerial Personnel businesses of the Company reporting to the Managing Director, Chief Financial complaint was received. 31.03.2021 is available on the following web link: Officer and Company Secretary. https://www.srf.com/investors/corporate-governance/ Senior Members of the Corporate Leadership Team of the Company (excluding Acknowledgements Management Personnel Executive Directors), Chief Financial Officer and Company Secretary Your Directors acknowledge with gratitude the STATUTORY REPORTS Industrial Relations Other Employees Employees other than Key Managerial Personnel and Senior The Company continued to generally maintain co-operation and assistance received from various Management Personnel. harmonious and cordial relations with its workers in agencies of the Central Government and the all its businesses. Governments of Madhya Pradesh, Rajasthan, Tamil The terms “He” or “his” as mentioned in this Policy includes any gender. Nadu, Gujarat, Uttarakhand, financial institutions Secretarial Standards and banks. Your Directors thank the shareholders for C. Terms of Reference • Recommend to the Board on appointment Applicable Secretarial Standards, i.e. SS-1 SS-2 and their continued support. Your Directors also place on The Board of Directors of the Company at its and removal of Directors, Key Managerial SS-3, relating to ‘Meeting of the Board of Directors’ record their appreciation of the contribution made by meeting held on May 09, 2014 reconstituted the Personnel and Sr. Management Personnel. ‘General Meetings’ and ‘Dividend’ respectively, have employees at all levels. existing Remuneration Committee of Directors been duly followed by the Company. • Evaluation of the performance of Directors as “Nomination and Remuneration Committee” (other than independent directors). General For and on Behalf of the Board of Directors (the Committee). The terms of Your Directors state that no disclosure or reporting reference the Committee are as follows :- • Evaluation of the performance of independent directors and make is required in respect of the following items as there Arun Bharat Ram • Formulation of the criteria for determining recommendations to Board. was no transactions on these items during the year Date: July 28, 2021 Chairman qualifications, positive attributes and under review :- Place: New Delhi (DIN – 00694766) independence of a director. • To oversee succession planning for Board

of Directors, Key Managerial Personnel and FINANCIAL STATEMENTS • Formulation of criteria for evaluation Senior Management Personnel. of performance of Independent Directors and the Board. • Formulation of criteria for making payment to non-executive Directors. • Devising a policy on Board diversity. • Recommend to the board, all • Formulation of policies for remuneration remuneration, in whatever form, payable to to Directors, Key Managerial Personnel, senior management. Sr. Management Personnel and Other Employees. D. Criteria for recommending a person to • Identification and recommendation to Board become Director of persons who are qualified to become The Committee shall take into consideration Directors, Key Managerial Personnel and Sr. the following criteria of qualification, positive Management Personnel in accordance with attributes and independence for recommending the criteria laid down. to the Board for appointment of a Director:-

100 Annual Report 2020-21 101 1. Qualification & Experience such Directors in relation to other comparable fulfillment of its role with respect to guiding Personnel and Other Employees shall be in The incumbent shall possess appropriate skills, companies and other factors like performance of corporate strategy, risk policy, business accordance with the job description of the experience and knowledge in one or more the Company etc. as deemed appropriate. plans, corporate performance, monitoring relevant position. fields of finance, law, management, sales & company’s governance practices etc. The Committee will recommend to the and number of meetings held during the In particular, the position of Key Managerial marketing, operations, research, corporate CORPORATE OVERVIEW governance, education, community service or Board appropriate fees / commission to the year as specified in annexure III (Part - A). Personnel should be filled by senior personnel non-executive directors for its approval. having relevant qualifications and experience. other disciplines. d) Performance evaluation of Board The Committee / Board shall inter alia, consider Committees: The Board shall review the 2. Attributes/Qualities level of remuneration /commission payable by Remuneration Structure performance of all its committees annually other comparable companies, time devoted, i) Key Managerial Personnel and Senior The incumbent Director shall possess one or on criteria for evaluation as specified in experience, providing guidance on strategic Management Personnel more of the following attributes/qualities :- annexure III (Part - B). matters and such other factors as it may deem fit. The remuneration structure for Key Managerial - Respect for and strong willingness to imbibe e) Performance evaluation by Personnel and Senior Management Personnel the Company’s Core Values. F. Evaluation independent directors at their shall be as per the Company’s remuneration Performance evaluation of Executive Directors, - Honesty and Professional integrity. separate meeting : The Independent structure taking into account factors such as Non-executive Directors, Independent Directors, Directors in their separate meeting shall level of experience, qualification, performance - Strategic capability with business vision. Board as a whole, Board Committees and their review performance of non-independent and suitability which shall be reasonable and - Entrepreneurial spirit and track record members and Chairman shall be carried out in directors, Board as a whole, the Chairman sufficient to attract, retain and motivate them. of achievement. following manner: of the company, taking into account the views of executive directors and Nomination and Remuneration Committee shall - Ability to be independent a) Performance evaluation of all

recommend to the Board the remuneration/ STATUTORY REPORTS individual Directors: It shall be non-executive directors; - Capable of lateral thinking. remuneration structure for senior management done annually by the Nomination and The Chairman of meeting of Independent personnel every year. - Reasonable financial expertise. Remuneration Committee (NRC) as per the Directors or one selected by independent structure of performance evaluation (as Directors shall share outcome of their - Association in the fields of business/ ii) Other Employees per Annexure I & II). The outcome of the abovementioned evaluations with the corporate world/Finance/education/ The remuneration for the Other Employees is evaluation shall be shared by the Chairman Chairman of the Board. community service/Chambers of of NRC with the Board. determined on the basis of the role and position Commerce & industry. Chairman of the Board shall be responsible of the individual employee, including professional b) Performance evaluation of for giving feedback as and when required experience, responsibility, job complexity and - Effective review and challenge to the Independent Directors: It shall be as a result of performance evaluation above market conditions and his/her last drawn performance of management. done, annually and at the time of their and guide on preparation of a suitable remuneration in the previous organization. re-appointment, by NRC for deciding 3. In case the proposed appointee is an action plan, if required. whether to extend or continue the term The various remuneration components, basic Independent Director, he should fulfill the criteria of appointment of independent directors. G. Board Diversity salary, allowances, perquisites etc. may be for appointment as Independent Director as per Based upon the recommendations of the The Committee will review from time to time combined to ensure an appropriate and balanced the provisions of the Act, Listing Regulations and NRC, the Board of Directors shall decide Board diversity to bring in professional experience remuneration package. other applicable laws and regulations. to continue their appointment or consider

in different areas of operations, transparency, FINANCIAL STATEMENTS 4. The incumbent should not be disqualified for them for reappointment. corporate governance, financial management, The annual increments to the remuneration paid risk assessment & mitigation strategy, education, to the employees shall be determined based on the appointment as a Director pursuant to the The performance evaluation of independent community service and human resource appraisal carried out by the respective reporting provisions of the Act or other applicable laws directors, in addition to feedback management in the Company. The Company will managers/HODs of various departments as & regulations. received from NRC, shall be done by keep succession planning and Board diversity in ratified by Business Leadership Teams/Corporate the entire Board of Directors, excluding E. Directors’ Remuneration mind in recommending any new name of Director Leadership Team (as applicable). Decision on the director being evaluated as per the The Committee will approve the fixed for appointment to the Board. Annual Increments shall be made on the basis structure of performance evaluation (as remuneration to Executive Directors subject to of this appraisal. The remuneration would be per Annexure II). the provisions of the Act, Listing Regulations H. Eligibility criteria & Remuneration benchmarked intermittently with a basket of and other applicable laws & regulations. c) Performance evaluation of the Board of Key Managerial Personnel, Senior identified companies comparable to SRF. Commission to the Executive Directors, if any, of Directors: Board shall evaluate its Management Personnel and Other will be recommended by the Committee to own performance on criteria like discharge Employees At the same time, the increments are largely the Board for approval. The Committee/Board of duties and responsibilities under the The eligibility criteria for appointment of Key fixed for Bands. In case, a specific correction is shall periodically review the remuneration of Companies Act and Listing Regulations, Managerial Personnel, Senior Management to be brought about for a particular employee

102 Annual Report 2020-21 103 or group of employees, rationalization on a one may also be provided any facility, perquisites, Annexure - II time basis may also be carried out. commission, accommodation, interest free loans or loans at concessional rate in accordance Performance Evaluation of Independent Directors / Non-Executive Directors The remuneration may consist of fixed and with the policies framed for them or any incentive pay/retention bonus reflecting short and Name of Director : category thereof. CORPORATE OVERVIEW long-term performance objectives appropriate to Type of Directorship : Independent Directors / Non-Executive Director the working of the Company and its goals. However loan to the Directors who are KMPs Assessment of the following Roles/Attributes as performed by or observed in the Director whose performance The aforesaid Key Managerial Personnel, Senior shall be governed by such approvals as may be is under evaluation : Management Personnel and Other Employees required by the Companies Act, 2013. Sl. No. Role/Attribute (Y/N) 1. Attendance and participation in meetings of the Board of Directors and of the Board Committees 2. Advises on implementation of good corporate governance practices. 3. Independent in judgement and actions Annexure - I 4. Exercised his/her duties with due & reasonable care, skill and diligence. 5. Acted in good faith and in the best interests of the Company towards promotion Performance Evaluation of Executive Directors of interest of the stakeholders. 6. Conduct in compliance with the policies of the Company viz. Code of Conduct, Name of Director : Code of Conduct for Prevention of Insider Trading, Whistle blower Policy etc.)

Type of Directorship : Executive Director Name of Director : ………………………. STATUTORY REPORTS Signature : …………………………. Assessment of the following Roles/Attributes as performed by or observed in the Director whose performance is under evaluation : Date & Place : …………………………..

Sl. Role/Attribute (Y/N) No. 1. Attendance and participation in meetings of the Board of Directors and of the Annexure – III Board Committees Criteria for evaluation of the board of directors 2. Advises Board on implementation of good corporate governance practices. 3. Exercised his/her duties with due & reasonable care, skill and diligence. A: 4. Acted in good faith and in the best interests of the Company towards promotion of Performance of Evaluation Criteria interest of the stakeholders. Board as a whole • Discharge of duties and responsibilities under the Companies Act and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. 5. Conduct in compliance with the policies of the Company viz. Code of Conduct, Code • Fulfilment of role of the Board (for instance guiding corporate strategy, risk of Conduct for Prevention of Insider Trading, Whistle blower Policy etc.) policy, business plans, corporate performance, monitoring company’s governance 6. Ensures compliance with applicable laws/ statutory obligations in the functioning practices etc.). FINANCIAL STATEMENTS of the Company. • Number of Board Meetings held during the year. 7. Enhances Brand Equity 8. Encourages new initiatives/expansion/innovation B: 9. Encourages adherence to the principles of Quality, Cost, Delivery and safety (QCDS) Performance of Evaluation Criteria Board • Fulfilment of role of the Committee with reference to its terms of reference, the 10. Resolves Investor complaints Committees Companies Act and the SEBI (Listing Obligations and Disclosure Requirements) 11. Ensures talent retention Regulations, 2015. 12. Encourages awards & recognitions Overall Performance (Remarks) • Number of committee meetings held during the year.

Name of Director : ………………………. For and on Behalf of the Board

Signature : …………………………. Arun Bharat Ram Date: July 28, 2021 Chairman Date & Place : ………………………….. Place: New Delhi (DIN: 00694766)

104 Annual Report 2020-21 105 5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 Annexure II to the Board’s Report of the Companies (Corporate Social responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any Sl. Financial Year Amount available for set-off Amount required to be Annual Report on CSR for the Financial Year ended March 31, 2021

No. from preceding financial set- off for the financial year, if CORPORATE OVERVIEW Annual Report on csr projects as on 31/03/2021 years (` in Crores) any (` in Crores) 1 2017-18 - - 2 2018-19 - - • Environment (iv): Plantation, maintenance 1. Brief outline on CSR Policy of the 3 2019-20 0.37* - Company of paals, recharging ground water etc. TOTAL 0.37 As per the requirement of Section 135 of the ` Companies Act, 2013, the Company had laid • Art and Culture (v): Lecture cum *The Company has spent an amount of 0.37 Crores during 2019-20 which was in excess of the prescribed amount. The same is being set of against the CSR obligation for 2020-21. down a CSR Policy under which the Company had demonstration session on classical music, identified projects as per the Schedule VII of the dance, folk form, craft, yoga, heritage, 6. Average net profit of the company as per section 135(5)` 661.51 Crores Act in the following areas for the year 2020-21:- nature walk, Indian Philosophy etc.

• Promotion of Education (ii): Improving • Rural Development (x): Construction of 7. Quality of Education and Developing School community shed, village roads / community 7 (a) Two percent of average net profit of company as ` 13.25 Crores infrastructure of Govt. Schools. assets / village development activities/ per section 135(5) • Employment enhancing vocational temporary shelter for homeless etc. 7 (b) Surplus arising out of the CSR projects or programmes or Nil skills (ii): Focusing on imparting appropriate activities of the previous financial years. • Promotion of Heath Care, Covid – 19 STATUTORY REPORTS skills as per the market and industry needs 7 (c) Amount required to be set off for the financial year, if any ` 0.37 Crores & Disaster Management (i & xii): Relief and providing a platform to the youth trained 7 (d) Total CSR obligation for the financial year (7a+7b- 7c): ` 12.88 Crores to be gainfully self-employed or linking them and rehabilitation, livelihoods support, with potential employers to increase their R&D, COVID awareness and response, 8. (a) CSR amount spent or unspent for the financial year: 2020 - 21 employability and livelihood; vaccination etc. Total Amount Amount Unspent (in `) Spent for the Total Amount transferred to Amount transferred to any fund specified 2. Composition of CSR Committee: Financial Year. Unspent CSR Account as per under Schedule VII as per second proviso to (` in Crores) section 135(6). section 135(5). Sl. Name of Director Designation/ Number of Number of Amount Date of transfer Name of the Fund Amount Date of transfer No. Nature of meetings of CSR meetings of CSR Directorship Committee held Committee attended 10.18 2.70 23/04/2021 - - - during the year during the year (b) Details of CSR amount spent against ongoing projects for the financial year: 2020-21 1 Dr. Meenakshi Gopinath Chairperson 2 1 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) 2 Mr. Arun Bharat Ram Member 2 2 Sl. Name of Item Local Location Project Amount Amount Amount Mode of Mode of 3 Mr. Kartik Bharat Ram Member 2 2 No. the Project from area of the duration allocated spent in transferred Impleme- Implementation – the list (Yes/ project for the the to Unspent ntation - Through

4 Mr. L. Lakshman Member 2 2 of No) project current CSR Account Direct Implementing FINANCIAL STATEMENTS activities (` financial for the (Yes/No). Agency in in year (` project Schedule Crores) in as per 3. Provide the web-link where 3.2. CSR Projects: https://www.srf.com/investors/ VII to Crores) Section corporate-governance/ the Act. 135(6) Composition of CSR committee, CSR (in `). Policy and CSR projects approved by State District Name CSR 4. Provide the details of Impact the board are disclosed on the website Registration assessment of CSR projects carried number of the company. out in pursuance of sub-rule (3) of rule 1. Rural Education (ii) Yes Gujarat Bharuch 3 years 3.21 1.96 1.25 No SRF CSR00000733 8 of the Companies (Corporate Social & Skilling Foundation 3.1. CSR Committee & CSR Policy: https:// responsibility Policy) Rules, 2014, if Program www.srf.com/investors/corporate- applicable (attach the report). 2. Rural (ii) Yes Haryana Nuh 3 years 3.79 2.34 1.45 No SRF CSR00000733 Education & Foundation governance/ Not applicable Skilling Program TOTAL 7.00 4.30 2.70

106 Annual Report 2020-21 107 (c) Details of CSR amount spent against other than ongoing projects for the financial year: 2020-21 (b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):

(1) (2) (3) (4) (5) (6) (7) (8) (1) (2) (3) (4) (5) (6) (7) (8) (9) Sl. Name of Item Local Location of the project Amount spent Mode of Mode of implementation – Sl. Project Name Financial Project Total amount Amount spent Cumulative Status of the No. the Project from the area f o r t h e project impleme- Through implementing agency No. ID of the Year in duration allocated for on the project amount spent project - ` list of (Yes/ ( in Crores) ntation Project which the the project in the report- at the end of Completed activities No) on - project was (in `) ing Financial reporting Finan- /Ongoing CORPORATE OVERVIEW in Direct commenced Year (in `) cial Year (in `) schedule (Yes/ VII to No) Not Applicable the Act. State District Name CSR Registration number 10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or 1. Rural Education Program (ii) Yes Gujarat, Madhya Bharuch, 1.05 No SRF Foundation CSR00000733 acquired through CSR spent in the financial year (asset-wise details). Pradesh and Assam Bhopal and Kamrup (M) 2. SRF Vidyalaya, Gurugram (ii) Yes Haryana Gurugram 0.11 No SRF Foundation CSR00000733 (a) Date of creation or acquisition of the capital asset(s) NA 3. Art & Culture (viii) Yes Pan India and special - 0.30 No SRF Foundation CSR00000733 (b) Amount of CSR spent for creation or acquisition of capital asset NA through Spic Macay focus on Madhya (c) Details of the entity or public authority or beneficiary under whose name such NA Pradesh and Gujarat capital asset is registered, their address etc 4. BRA School (ii) Yes New Delhi New Delhi 0.40 No SRF Foundation CSR00000733 Project at Delhi (d) Provide details of the capital asset(s) created or acquired (including complete NA 5. COVID – 19 Projects (xi) Yes Rajasthan, Madhya Alwar, Bhind, Dhar, 2.51 No SRF Foundation CSR00000733 address and location of the capital asset) Pradesh, Uttrakhand, Udham Singh Nagar, Gujarat and Bharuch, Pudukkottai 11. Specify the reason(s), if the company has failed to spend two percent of the Tamil Nadu and Tiruvallur average net profit as per section 135(5). 6. International (ii) Yes New Delhi New Delhi 1.00 No SRF Foundation CSR00000733 Foundation for There was no unspent amount reported. STATUTORY REPORTS Research and Education (Ashoka University) TOTAL 5.37 Sd/- Sd/- Date: May 05, 2021 Ashish Bharat Ram Dr Meenakshi Gopinath Place: Delhi Managing Director Director (CSR) 8 (d) Amount spent in Administrative Overheads ` 0.51 Crore 8 (e) Amount spent on Impact Assessment, if applicable NA 8 (f) Total amount spent for the Financial ` 10.18 Crores Year (8b+8c+8d+8e) 8 (g) Excess amount for set off, if any NA

Sl. Particular Amount No. (` in Crores) (i) Two percent of average net profit of the company as 13.25 per section 135(5)

(ii) Total amount spent for the Financial Year 10.18 FINANCIAL STATEMENTS (iii) Excess amount spent for the financial year [(ii)-(i)] 0 (iv) Surplus arising out of the CSR projects or programmes or activities 0 of the previous financial years, if any (v) Amount available for set off in succeeding financial years [(iii)-(iv)] 0

9. (a) Details of Unspent CSR amount for the preceding three financial years:

Sl. Preceding Amount transferred Amount spent Amount transferred to any fund Amount remaining No. Financial to Unspent CSR in the reporting specified under Schedule VII as per to be spent in Year Account under Financial Year section 135(6), if any. succeeding financial section 135 (6) (in `) (` in Crores) years (` in Crores) Name of Amount Date of the Fund (in `) transfer

Not Applicable

108 Annual Report 2020-21 109 (ii) Brief details of transactions in shares by the Trust Annexure III to the Board’s Report (a) Number of shares held at the beginning of the year; : NIL (b) Number of shares acquired during the year through (i) primary issuance (ii) secondary acquisition, ESPS Disclosures also as a percentage of paid up equity capital as at the end of the previous financial year, along with CORPORATE OVERVIEW information on weighted average cost of acquisition per share;: NIL Details related to ESPS (c) Number of shares transferred to the employees / sold along with the purpose thereof : NIL (i) Details of allotments made under Part-B of SRF ESPS 2018 of SRF Limited (SRF) Employees Long Term Share Based Incentive Plan – 2018 during the financial year 2020-21: (d) Number of shares held at the end of the year.: NIL

(a) Date of shareholders’ approval: March 26, 2018 (iii) In case of secondary acquisition of shares by the Trust (b) Number of shares issued: Nil Number of shares As a percentage of paid-up equity capital as at the end of the (c) The price at which such shares are issued: N.A. year immediately preceding the year in which shareholders’ approval was obtained (d) Lock-in period: N.A. Held at the beginning of the year NIL Acquired during the year NIL (ii) Details regarding allotment made under Part-B of SRF ESPS 2018 of SRF Limited (SRF) Employees Sold during the year NIL Long Term Share Based Incentive Plan – 2018, as at the end the financial year 2020-21 : Transferred to the employee NIL Particulars* Details during the year The details of the number of shares issued under ESPS 60,000 Held at the end of the year NIL STATUTORY REPORTS The price at which such shares are issued 10/- For and on Behalf of the Board Employee-wise details of the shares issued to: Mr. Prashant Yadav- 20,000 shares Senior managerial personnel (Key Managerial Personnel) Mr. Prashant Mehra- 20,000 shares Mr. Anurag Jain- 20,000 shares Arun Bharat Ram Consideration received against the issuance of shares, if scheme ` 6,00,000/- Date: July 28, 2021 Chairman is implemented directly by the company Place: New Delhi (DIN: 00694766) Loan repaid by the Trust during the year from NA exercise price received *Allotment made during 2018-19.

Details related to Trust Details, inter alia, in connection with transactions made by the Trust meant for the purpose of administering the schemes under the Regulations :- (i) General information on all schemes:

Sl. Particulars Details FINANCIAL STATEMENTS No. 1 Name of the Trust SRF Employees Welfare Trust 2 Details of the Trustee(s) SRF Employees Benefit Scheme LLP 3 Amount of loan disbursed by company / any company in NIL the group, during the year 4 Amount of loan outstanding (repayable to company / any NIL company in the group) as at the end of the year 5 Amount of loan, if any, taken from any other source for NIL which company / any company in the group has provided any security or guarantee 6 Any other contribution made to the Trust during the year NIL

110 Annual Report 2020-21 111 9. We state that such compliance is neither an assurance as to the future viability of the Company nor the Annexure IV to the Board’s Report efficiency or effectiveness with which the management has conducted the affairs of the Company. Restriction on use INDEPENDENT AUDITORS’ CERTIFICATE ON COMPLIANCE WITH THE CORPORATE 10. The certificate is addressed and provided to the Members of the Company solely for the purpose of enabling GOVERNANCE REQUIREMENTS UNDER SEBI (Listing Obligations and the Company to comply with the requirement of the Listing Regulations and should not be used by any CORPORATE OVERVIEW Disclosure Requirements) REGULATIONS, 2015 other person or for any other purpose. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this certificate is shown or into whose hands it may come without our prior consent in writing. To The Members of SRF Limited For B S R & Co. LLP Chartered Accountants 1. This certificate is issued in accordance with the terms of our engagement letter dated August 07, 2018 and Firm’s Registration No: 101248W/W-100022 addendum to the engagement letter dated June 18, 2021. Kaushal Kishore 2. We have examined the compliance of conditions of Corporate Governance by SRF Limited (“the Company”), Partner for the year ended March 31, 2021, as stipulated in regulations 17 to 27, clauses (b) to (i) of regulation 46(2) Date: July 28, 2021 Membership No.: 090075 and paragraphs C, D and E of Schedule V of the Securities Exchange Board of India (Listing Obligations and Place: Delhi UDIN: 21090075AAAAAU6767 Disclosure Requirements) Regulations, 2015 as amended from time to time (“Listing Regulations”) pursuant to the Listing Agreement of the Company with Stock Exchanges.

Management’s Responsibility STATUTORY REPORTS 3. The compliance of conditions of Corporate Governance as stipulated under the listing regulations is the responsibility of the Company’s Management including the preparation and maintenance of all the relevant records and documents. This responsibility includes the design, implementation and maintenance of internal control and procedures to ensure the compliance with the conditions of Corporate Governance stipulated in the Listing Regulations.

Auditors’ Responsibility 4. Our examination was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

5. Pursuant to the requirements of the Listing Regulations, it is our responsibility to provide a reasonable assurance whether the Company has complied with the conditions of Corporate Governance as stipulated in Listing Regulations for the year ended March 31, 2021.

6. We conducted our examination of the above corporate governance compliance by the Company in FINANCIAL STATEMENTS accordance with the Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) and Guidance Note on Certification of Corporate Governance both issued by the Institute of the Chartered Accountants of India (the “ICAI”), in so far as applicable for the purpose of this certificate. The Guidance Note requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI.

7. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.

Opinion 8. In our opinion and to the best of our information and according to the explanations given to us, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above-mentioned Listing Regulations.

112 Annual Report 2020-21 113 (ii) The Securities Contracts (Regulation) Act, 1956 We have also examined compliance with the applicable Annexure V to the Board’s Report (‘SCRA’) and the rules made thereunder; clauses of the Secretarial Standard on Meetings of the Board of Directors and on General Meetings issued (iii) The Depositories Act, 1996 and the Regulations by the Institute of Company Secretaries of India. SECRETARIAL AUDIT REPORT and Bye-laws framed thereunder; Further, the Company was generally regular in filing CORPORATE OVERVIEW FOR THE FINANCIAL YEAR ENDED MARCH 31, 2021 of e-forms with the Registrar of Companies. (iv) Foreign Exchange Management Act, 1999 and [Pursuant to section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014] the rules and regulations made thereunder to the During the audit period, the Company has complied extent of Foreign Direct Investment, Overseas with the provisions of the Act, Rules, Regulations, Direct Investment and External Commercial Guidelines and Standards, to the extent applicable, as To, e) The compliance of the provisions of the Borrowings, where applicable; mentioned above. The Members corporate and other applicable laws, rules, (vi) The Company is engaged in manufacturing of – SRF Limited regulation, standards is the responsibility of the (v) The following Regulations prescribed under the Securities and Exchange Board of India Act, (CIN: L18101DL1970PLC005197) management. Our examination was limited to • Chemicals and Polymers plants located 1992 (‘SEBI Act’):- The Galleria, DLF Mayur Vihar, the verification of procedures on test basis. at Alwar, Rajasthan; Udham Singh Nagar, Unit No. 236 & 237, 2nd Floor, Mayur Place, Uttarakhand and Bharuch, Gujarat, f) The Secretarial Audit Report is neither an (a) The Securities and Exchange Board of Mayur Vihar Phase I Extension, New Delhi-110091. Manali, Tamil Nadu; assurance as to the future viability of the India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011; • Technical Textiles plants at Chennai, We have conducted the secretarial audit of the Company nor of the efficacy or effectiveness with which the management has conducted the Tamil Nadu; Bhind, Madhya Pradesh; compliance of applicable statutory provisions and (b) The Securities and Exchange Board of Thiruvallur, Tamil Nadu; Pudukottai, Tamil

affairs of the Company. STATUTORY REPORTS the adherence to good corporate practices by India (Prohibition of Insider Trading) SRF Limited (hereinafter called “the Company”). Nadu and Udham Singh Nagar, Uttarakhand; g) we adhered to best professional standards and Regulations, 2015; Secretarial Audit was conducted in a manner that practices as could be possible while carrying • Packaging Films plants at Udham provided us a reasonable basis for evaluating the (c) The Securities and Exchange Board of out audit during the lock-down conditions due Singh Nagar, Uttarakhand and Indore, corporate conducts/statutory compliances and India (Issue of Capital and Disclosure to Covid-19. The Company made due efforts Madhya Pradesh; expressing our opinion thereon. Requirements) Regulations, 2018; to make available the relevant records and As informed by the management, following documents which were verified through online We report that- (d) The Securities and Exchange Board of are some of the laws specifically applicable means to conduct and complete the audit in the a) Maintenance of secretarial record is the India (Share Based Employee Benefits) to the Company:- aforesaid lock-down conditions. responsibility of the management of the Company. Regulations, 2014; • Narcotics Drugs and Psychotropic Our responsibility is to express an opinion on Based on our verification of the Company’s books, (e) The Securities and Exchange Board of substance Act, 1985; these secretarial records based on our audit. papers, minute books, forms and returns filed and India (Issue and Listing of Debt Securities) • Legal Metrology Act, 2009; other records maintained by the Company and also Regulations, 2008; b) We have followed the audit practices and the information provided by the Company, its officers, • SEZ Act, 2005 and SEZ Rules, 2006; processes as were appropriate to obtain agents and authorized representatives during the (f) The Securities and Exchange Board of India • The chemical weapons convention Act, 2000; reasonable assurance about the correctness conduct of Secretarial Audit, we hereby report that in (Registrars to an Issue and Share Transfer

of the contents of the secretarial records. our opinion, the Company has, during the audit period Agents) Regulations, 1993regarding the FINANCIAL STATEMENTS We have checked the compliance management The verification was done on test basis to ensure covering the financial year ended on March 31, 2021 Companies Act and dealing with client; system of the Company to obtain reasonable that correct facts are reflected in secretarial (“Audit Period”) complied with the statutory provisions (g) The Securities and Exchange Board of India assurance about the adequacy of systems records. We believe that the processes and listed hereunder and also that the Company has (Delisting of Equity Shares) Regulations, in place to ensure compliance of specifically practices, we followed, provide a reasonable proper Board processes and compliance mechanism 2009: [Not applicable to the Company applicable laws and this verification was basis for our opinion. in place to the extent, in the manner and subject to during the audit period]; done on test basis. We believe that the the reporting made hereinafter: c) We have not verified the correctness and Audit evidence which we have obtained is (h) The Securities and Exchange Board of India appropriateness of the financial statements We have examined the books, papers, minute books, sufficient and appropriate to provide a basis (Buyback of Securities) Regulations, 2018: of the Company. forms and returns filed and other records maintained for our audit opinion. In our opinion and to [Not applicable to the Company during the by the Company for the financial year ended on the best of our information and according audit period]; and d) Wherever required, we have obtained the March 31, 2021 according to the provisions of: to explanations given to us, we believe that Management representation about the (i) The Securities and Exchange Board of the compliance management system of the compliances of laws, rules and regulations and (i) The Companies Act, 2013 (“the Act”) and the India (Listing Obligations and Disclosure Company is adequate to ensure compliance of happening of events etc. rules made thereunder; Requirements) Regulations, 2015; laws specifically applicable to the Company.

114 Annual Report 2020-21 115 We further report that the Board of Directors of a Special Resolution to authorise the Board the Company is duly constituted with proper balance of Directors of the Company to issue, offer or Annexure VI to the Board‘s Report of Executive Directors, Non-Executive Directors and invite subscriptions for secured/unsecured Independent Directors. No changes in the composition redeemable non-convertible debentures, in one of the Board of Directors took place during the ` DETAILS PERTAINING TO REMUNERATION AS REQUIRED UNDER SECTION

or more series/ tranches, aggregating upto 500 CORPORATE OVERVIEW period under review. Crores (Rupees five hundred Crores), on private 197(12) OF THE COMPANIES ACT, 2013 READ WITH RULE 5(1) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014 placement basis. Adequate notice was given to all directors to schedule (i) The percentage increase in remuneration of each Director, Chief Financial Officer, Company the Board Meetings, agenda and detailed notes on • the Shareholders passed a special resolution Secretary and CEO during the financial year 2020-21 and ratio of the remuneration of each agenda were sent at least seven days in advance by way of postal ballot on October 08, 2020, Director to the median remuneration of the employees of the Company for the financial year other than those meetings which were held on shorter to create, issue, offer and allot, in one or more notice as per Secretarial Standards issued by institute 2020-21 are as under: tranches, equity shares of the Company with a of Company Secretaries of India, and a system exists Sl. Name of Director/KMP Remuneration % increase Ratio of remuneration face value of ` 10 each to qualified institutional for seeking and obtaining further information and No. and Designation of Director/KMP in Remuneration of each Director buyers for an aggregate amount not exceeding clarifications on the agenda items before the meeting for financial year in the to median ` 750 Crores (Rupees Seven Hundred and Fifty 2020-21 Financial Year emuneration of and for meaningful participation at the meeting. Crores Only) and subsequently, the allotment of (`/Crores) 2020-21 employees 1 Arun Bharat Ram 7.61 30.53% 161.91 As per minutes, Board decisions were carried out 17,64,705 Equity Shares at a price of ₹ 4250 per ` Chairman with requisite majority; however and therefore, Equity Share, including a premium of 4240 per equity share, to the Qualified Institutional Buyers 2 Ashish Bharat Ram 9.38 35.16% 199.57 no dissenting views were captured and recorded Managing Director in the minutes. (QIBs) made on October 17, 2020.

3 Kartik Bharat Ram 9.21 34.45% 195.96 STATUTORY REPORTS Deputy Managing Director We further report that there are adequate systems For Sanjay Grover & Associates 4 Meenakshi Gopinath 0.17 13.33% 3.62 and processes in the company commensurate with Company Secretaries Director (CSR) the size and operations of the company to monitor Firm Registration No.: P2001DE052900 5 Tejpreet S Chopra 0.19 26.67% 4.04 and ensure compliance with applicable laws, rules, Non-Executive Director regulations and guidelines. 6 Lakshman Lakshminarayan 0.19 18.75% 4.04 Devesh Kumar Vasisht Non-Executive Director We further report that during the audit period Partner 7 Vellayan Subbiah 0.17 13.33% 3.62 • the Shareholders at their Annual General Date: July 28, 2021 CP No.: 13700 / F8488 Non-Executive Director Meeting held on August 17, 2020 have passed Place: New Delhi UDIN: F008488C000697396 8 Bharti Gupta Ramola 0.18 20.00% 3.83 Non-Exceutive Director 9 Yash Gupta 0.19 18.75% 4.04 Non-Executive Director 10 Puneet Dalmia 0.17 21.43% 3.62 Non-Executive Director 11 Pramod G Gujarathi 0.20 5.26% 4.26 Director (Safety and Environment) 12 Prashant Mehra 4.52 8.65% Not Applicable FINANCIAL STATEMENTS President & CEO (Packaging Films Business, CF & LF) 13 Prashant Yadav 4.40 8.91% Not Applicable President & CEO (Fluorochemicals Business) 14 Anurag Jain 4.45 8.80% Not Applicable President & CEO (Speciality Chemicals Business and CTG) 15 Sanjay Chatrath 2.76 9.52% Not Applicable President & CEO (Technical Textile Business) 16 Rahul Jain 1.76 2.33% Not Applicable President & CFO 17 Rajat Lakhanpal 0.74 12.12% Not Applicable VP - Corporate Compliance and Company Secretary

116 Annual Report 2020-21 117 (ii) The median remuneration of employees of the Company as on March 31, 2021 was ` 0.047 Crores as compared to ` 0.043 Crores as on March 31, 2020. The increase in median remuneration was 9.30% as Annexure VII to the Board’s Report compared to 2019-20.

(iii) There were 6386 permanent employees on the rolls of the Company as on March 31, 2021. A) Conservation of Energy – Measures taken: • Saved 1,65,000 KWH by incorporating CORPORATE OVERVIEW (iv) Average percentile increase already made in the salaries of employees other than the managerial personnel 1. Laminated Fabrics Business, Kashipur system set point integrating Dornier system with temperature requirement at chill roll in the last financial year i.e. 2020-21 and its comparison with the percentile increase in the managerial • Saved 224054 Kwh / annum by Banbury A through closed loop cooling tower remuneration and justification thereof and point out if there are any exceptional circumstances for increase and Banbury B machine batch optimization in the managerial remuneration. on calender line • Saved 90,000 KWH by implementing Category Average Increase • Saved 94 MT of furnace oil / annum automated batch conveying of recycled Employees’ remuneration (other than Directors) 10.59% by integrating hot oil circulating chips from Erema to main extruder Managerial remuneration (Directors) 33.27% systems of PFB & LFB • Saved 47,200 KWH by implementing direct conveying of recycled fluff to main The increase in managerial remuneration and remuneration of other employees is a function of many factors • Saved 15840 Kwh / annum by eliminating extruder through conveyor eliminating the such as company performance, compensation philosophy, market competitiveness, local agreements with 1 no. hot oil circulating system from hot requirement of being routed through Erema unions and the total number of employees. lamination line being converted into recycled chips • Saved 3.6 KL / annum of HSD fuel by (v) It is hereby affirmed that the remuneration paid is as per the Nomination, Appointment and Remuneration extending EOT crane rail up to FG area • Saved 18,000 KWH by installing variable Policy of the Company. frequency drive in 2 pumps of TDO cooling zone

2. Coated Fabrics Business, Gummidipoondi • Saved 13,500 KWH by installing energy STATUTORY REPORTS For and on Behalf of the Board • Savings of 2,30,000 Kwh / annum efficient fans for cooling towers from average coating production/day Arun Bharat Ram increase, VFD installation in cooling tower 5. Packaging Films Business, Kashipur Date: July 28, 2021 Chairman fan motor and one number of energy • Saving of 50,000 KWH by completely Place: Gurugram (DIN – 00694766) saving fan replacement in cooling tower replacing piston type vacuum pumps by gives power savings installation of energy efficient vacuum pump in metallizer • Savings of 172 MT furnace oil (from Aug 20 to Mar 21) from the installation of solid fired • 104000 KWH saved by replacing DC drive thermic fluid heater in place of furnace oil with AC drive system in primary slitter fired thermic fluid heater • Optimized the water consumption & energy involved in water transferring by installing 3. Packaging Film Business, Indore (SEZ) auto operation valves & level controllers • Saved 18,88,950 KWH from chilled water system by installation of energy efficient 6. FCB Bhiwadi

AHU, chilled water operated FCU’s, FINANCIAL STATEMENTS • Saving of 0.16 lac units of electricity (` 1.3 lac) installation of chill roll cooling water by improving the stability of AHF plant with circulation pump non-Chinese spar by developing effective • Saved 2,41,850 KWH from compressed cleaning process for sulphur separator air optimization for energy by switching • Saving of 2.39 lac units of electricity (` 19.7 between high pressure and required lac) in F22 plant by developing a closed pressure of compressed air at various points system for chloroform storage and stabilizing • Saved 1,92,850 KWH from installation of HF distillation process to reduce moisture energy efficient cutters at Erema leading to better catalyst performance and hence increased production 4. Packaging Films Business, Indore DTA • Saved 7,20,000 KWH from installation of • Saving of 2.33 lac units of electricity closed loop cooling tower for metalizer-5 (` 19.2 lac) in CMS plant by improving air handling unit process capability using AIMS & PIMS

118 Annual Report 2020-21 119 (under IOT projects) resulting in higher 8. SCB Bhiwadi • Installed energy efficient smaller capacity • Office & Canteen AHUs stoppage by plant throughput • Savings of 14.25MT of steam (` 1 Lacs) by pump in utility cooling tower. 32,000 KWH providing pedestal & table fans, 24,000 KWH p.a. power units saved. • Saving of 0.44 lac units of electricity in installation of improved steam traps. p.a. power units saved. CMS utilities & 2.09 lac units of electricity ` 13. Technical Textile Business – Viralimalai • Savings of 1.18 Lacs KWH ( 10.1 Lacs) due • Installed energy efficient in cooling towers.

(` 20.9 lac) in F22 utilities by improving • Optimization of Lighting (Replacement CORPORATE OVERVIEW to VFD provision in equipment. 33,000 KWH p.a. power units saved. heat transfer coefficient in condensers Mercury / Fluro cent with LED fittings). • Water conservation of 30 KL/day by and evaporators of brine refrigeration Power consumption reduction in others area 35,604 KWH p.a. power units saved. system using IOT based performance various water saving & control measures • Installed energy efficient motor, in chilled • Optimization of Twister motor capacity. monitoring and accordingly performing implemented at site. water and utility cooling tower pumps. 63,576 KWH p.a. power units saved. hydro jet cleaning and replacement 9. SCB Dahej 14,000 KWH p.a. power units saved. of two condensers • Sulzer RUTI main motor switch OFF during • Savings of 29.57 Lacs KWH • LED lights in plant. 70,000 KWH p.a. machine idle time. 10,488 KWH p.a. • Saving of 4.37 lac units of electricity (` 36.1 ` ( 170.1 Lacs/annum) due to power power units saved. power units saved. lac) in F32 Plant by optimizing the chilled consumption optimization brine temperature requirement in process Capital Investment on Energy Conservation • Savings of 7.54 Lacs KWH (` 43.3 Lacs/ 11. Technical Textile Business – Manali from -10 ̊ C to -5 ̊ C Equipment: annum) by stopping the plant’s water • Installation of new 660TR chiller and use • Saving of 1.52 lac units of electricity chiller and replacing it by chilled water from it along with existing McQuay chiller- TTBM: ` ( 12.5 lac) in F134a plant by replacing process chiller Annualized saving-1366560 KWH p.a. • Installation of new 660TR chiller and use it chilled brine with cooling water in product along with existing McQuay chiller • Savings of 2.25 Lacs KWH (` 12.9 Lacs/ purification section leading to reduction of • Installation of Energy efficient Motors (IE-3 annum) due to timer automation in the plant chilled brine demand standard) in Spinning and utility (2 nos) - • Installation of Energy efficient Motors (IE-3

` standard) in Spinning and utility (2 nos). STATUTORY REPORTS • Saving of 346.0 MT steam (` 4.7 lac) in F32 • Savings of 1.74 Lacs KWH ( 10 Lacs/ Annualized saving- 17787 KWH p.a. annum) by power consumption optimization & F134a plants by optimizing reflux ratio of • Installation of LED lights in Textile, TTBG: through pumps optimization • Installed energy efficient FRP fans by product column and crude column Utility and Canteen (910 nos) - Energy ` replacing metallic fans textile air washers. • Saving of 29.5 MT LSHS (` 11.8 lac) in R134a • Savings of 1.04 Lac KWH ( 6 Lacs/annum) saving- 58270 KWH p.a. • Installed energy efficient smaller capacity plant by optimizing heat load & eliminating by optimizing UPS usage • Automation of lighting system with help of pump in utility cooling tower. the requirement of exchanger E102AA leading ` • Savings of 65916 KWH ( 3.8 Lacs/annum) Presence detectors & Digital Timers in the to reduction in overall hot oil requirement • Installed energy efficient in cooling towers. by optimization of heaters making 2 heaters plant- Energy saving- 33557 KWH p.a. • Installed energy efficient motor, in chilled • Saving of 0.18 lac (` 1.5 lac) units of run out of 4 heaters water and utility cooling tower pumps. electricity in CMS by installing new energy • Savings of 51846 KWH (` 3 Lacs/annum) due 12. Technical Textile Business – Gummidipoondi efficient motors to replacement of CFL/250W by LED lights • Installed energy efficient chiller. TTBT: • Installed energy efficient chiller. • Saving of 0.297 lac units of electricity • Savings of 45000 KWH (` 2.6 Lacs/annum) 11,28,000 KWH p.a. power units saved. • Installed SSM cheese winder. (` 2.38 lac) in AHF Plant by installing by removal of VFD /soft starter • Re-location of 13 twisters from zone-4 • Installed EC fans in PIY Take-up AHUs RAFs. variable frequency drives in P-219, P-490 & to stop AHU # 4. 6,25,000 KWH p.a. BL-490 equipment 10. Technical Textile Business – Gwalior • Installed energy efficient motor for power units saved. utility section. ` Power consumption reduction in air conditioning area

• Saving of 7060 units of electricity ( 0.6 FINANCIAL STATEMENTS lac) in lighting by replacing conventional • Replaced conventional blowers with mono • Installed SSM cheese winder. 2,24,000 KWH TTBV: lights with LEDs block fans in Air washers, 54,000 KWH p.a. p.a. power units saved • Optimization of Twister motor capacity. power units saved. • Installed EC fans in PIY Take-up AHUs RAFs. Packaging Film Business, Indore SEZ 7. FCB Dahej • Installation Closed Loop Cooling Towers at • Installed energy efficient FRP fans by 2,33,000 KWH p.a. power units saved • Saved 8 billion Kcal by optimizing various production points - INR 232 Lacs replacing metallic fans textile air washers, condensing load & maintaining turbine • Installed energy efficient motor for utility 2,67,000 KWH p.a. power units saved. • Installation of Energy Efficient Cutters at vacuum in captive power plant section. 43,000 KWH p.a. power units saved Erema INR 247.21 Lacs • Replaced dyno drive with inverter in textile • Saved 7 million Kcal by condensate heat recovery • Compressed air power savings through plant-1 air washer, 14,000 KWH p.a. Packaging Films Business, Indore DTA • Saved 2.7 lakh Kcal per hour by increasing power units saved. better SPC & air loss reduction through • Closed Loop Cooling Tower installed at Metalizer-5 ` the efficiency of aire-heater pr by ultrasonic leak detector. 72,000 KWH p.a. air handling unit amount 25.97 Lakhs Power consumption reduction in refrigeration area replacing tube bundles power units saved • Carried out Corocoating in chilled water and SCB Bhiwadi: ` • Saved 0.90 lakh KW of power by optimizing cooling tower pumps (6 nos) in refrigerant • Textile AHUs power optimization through • VFD provision in Pumps: 1.98 Lacs ESP loading as per SPM parameter plant. 30,000 KWH p.a. power units saved. DM. 83,000 KWH p.a. power units saved • Replacement of old steam traps: ` 0.5 Lacs

120 Annual Report 2020-21 121 SCB Dahej: • Building process development capabilities • Investment in providing chilled water from to go beyond reported chemistries and Management Discussion & Analysis process chiller: ` 3.5 Lacs technologies by developing novel processes • Installation of timer automation in • Developing new products and maintaining a ` plant: 1 Lacs robust pipeline of futuristic products CORPORATE OVERVIEW • Replacement of CFL/250W by LED • Capacity and production yields of several lights: ` 0.5 Lacs product were significantly enhanced • Strong emphasis on waste generation B) SCB: Technology Absorption minimization and ensuring process safety At SRF, the technology plays a key role in development of complex products that are • Enhanced efforts to create and protect IP benchmarked in terms of quality and technical The Business continues to invest in technology, challenge. The Chemical Technology Group at its people, and processes, to enhance the SRF actively engages in supporting the Specialty value proposition for its customers. Chemicals Business in producing a number of TTB: complex and high-value products from both The R&D centre of Technical Textiles Business dedicated and flexible manufacturing assets at is located at Manali, Chennai. Equipped with its sites at Bhiwadi and Dahej. The Business is state-of-the-art Pilot facilities and sophisticated catering to global innovators in Agrochemical testing laboratories for evaluating Polymers, and Pharmaceutical space and delivers Fibers and fabrics, the TTB-R&D centre aims at them Advanced Intermediates/APIs for their maximizing competitiveness of Technical Textiles STATUTORY REPORTS end-products. The focus of the Business is to Business through market oriented new product/ create value for its customers by addressing technology development. In this regard, the complexity across the value chain. R&D centre has developed many variants of Polyester Industrial Yarns for as reinforcements Apart from developing complex new age in geotextiles, fiber reinforced composites etc., molecules, the R&D and technology teams also and Aramid based reinforcement fabric for hoses, help in designing new plants and scaling up each tailor-made for the respective application. the capacity of existing plants with a focus on improving the technology being used, lowering Apart from the developments in existing business the cost of production, improving yields, and space, novel products involving Nano-technology optimizing the overall throughput. are also being developed by this centre in close association with leading Academic and Research Some of the areas where technology has been Institutes in India and abroad for various research absorbed in this period are: projects. TTB-R&D also works in close collaboration • Augmenting capabilities to cater efficiently with major customers for joint developments in from market assessment to meeting the field of Tyre cords, belting fabrics and other

customer needs Mechanical Rubber Good reinforcements. In the following pages, the FINANCIAL STATEMENTS

C) Foreign exchange earnings and outgo Management will provide its (` in Crores) perspective on the operating Particulars Year ended Year ended and financial performance of March 31, 2020 March 31, 2021 Foreign Exchange Earnings 2645.08 3325.05 the company during FY 2020- ‘21 Foreign Exchange outgo 1808.14 1686.70 Net Foreign Exchange Earnings 836.94 1638.35 and an outlook of the business performance in the coming years. For and on Behalf of the Board

Arun Bharat Ram Date: July 28, 2021 Chairman Place: New Delhi (DIN: 00694766)

122 Annual Report 2020-21 123 declined initially, which resulted in a significant drop Both Chemicals sites witnessed in refrigerant market demand along with selling prices. It was only in the latter part of the year that stable and safe operations some revival in demand was witnessed, although the during COVID-19 and nearly all international prices remained subdued throughout the Businesses year. However, Industrial Chemicals market performed the plants operated at full CORPORATE OVERVIEW SRF Limited is a chemical based multi-business conglomerate engaged in the well due to the growth in pharma and agrochemicals capacity during the second half manufacturing of industrial and specialty intermediates. The company is widely segment. The Industrial Chemicals Business was able recognized and well respected for its R&D capabilities globally, especially in to maintain its market share and launched a new of the year. We successfully the niche domain of chemicals. SRF Limited is a market leader in most of its product- Methyl Chloride in its CMS portfolio. launched our first ASHRAE business segments in India with a significant global presence. The company Both Chemicals sites witnessed stable and safe product F 467A in the has operations in four countries namely, India, Thailand, South Africa, and operations during COVID-19 and nearly all the international market. Hungary. SRF has commercial interests in more than seventy-five countries plants operated at full capacity during the second and classifies its businesses as Technical Textiles Business (TTB), Chemicals half of the year. We successfully launched our first Business (CB), Packaging Films Business (PFB), and Other Businesses. ASHRAE product F 467A in the international market. In addition, we received the European Pharmacopoeia certificate for our Dymel® product segment, along Technical Textiles Business market share and sales volume to domestic as well as with the addition of new customers and geographies FY 2020- ‘21 began on a difficult note with the entire export markets. in this space. We continue to improve our process country under strict lockdown restrictions to control capability and were able to develop innovative STATUTORY REPORTS the surge of COVID-19. This resulted in the shutdown With the ongoing expansion projects and a strong processes in existing operations and filed new patents of all TTB manufacturing plants. However, as the portfolio of VAPs, SRF will further consolidate its during the year. unlock process started, all plants re-started operations, position in both the domestic as well as the global with strict safety protocols while maintaining product market in FY 2021- ‘22. Overall performance for this year was lower than last quality. By the end of H1 – 2020 – ‘21, all TTB segments year with latter half of the year being significantly witnessed a strong revival. Increased Government Polyester Industrial Yarn better, almost reaching pre-COVID-19 levels. spending in infra sectors, focus on personal mobility, Polyester Yarn segment witnessed a strong revival import restrictions on Chinese tyres and container in H2 FY 2020 – ’21 due to increased demand from Outlook shortage resulting in higher sea freight triggered an the auto segment and stronger push in infra sectors. The The Business is expected to do well on the back increase in domestic demand. The continued focus on increasing sales of VAPs of robust GDP growth projections for major economies will focus on maintaining its market share of F 134a, helped keep the margins healthy, despite the Chinese and India. In addition, the surge projected in domestic F 32, F 125, HFC Blends and Methylene Chloride, aside from its ongoing efforts to pursue growth in Tyre Cord Fabrics continuing to dump yarn into India at very low prices. A/C and refrigerator production capacities in lieu of Nylon Tyre Cord Fabric segment registered strong various Government policies and initiatives like the Industrial Chemicals with the addition of new products demand from both Original Equipment (OE) and The healthy margins trend is expected to continue in ban on pre-charged ACs imports, PLI, Atma Nirbhar in its portfolio. replacement sectors during H2 – 2020 – ‘21. FY 2021- ‘22 as well. Bharat or increase in personal mobility resulting in a Restriction in tyre imports from China led to an boost to the auto sector augurs well for the Business. Specialty Chemicals Business increase in domestic tyre production across all Outlook Furthermore, with increased spending on healthcare The Specialty Chemicals Business maintained its FINANCIAL STATEMENTS segments resulting in an overall growth in demand for The Technical Textiles Business is likely to perform and favourable Government policies, the pharma and growth momentum during the year. COVID-19 related Tyre Cord Fabrics (TCF). TCF segment also executed well in FY 2021- ’22, owing to a revival in demand of agrochemical segments will also continue to grow. interruptions affected the Business mostly in the first yarn capacity expansion and debottlenecking projects all major end-user industries. Exports are also likely to remain firm with positive quarter of the FY. The Business received support from in FY 2020- ‘21. outlook in the US Economy, where we have already the market despite the global pandemic. We focused on Chemicals Business established a reasonable business share. the customers’ key products and their developmental Belting Fabrics The Chemicals Business comprises two different project requirements, while at the same time ensuring Belting Fabrics segment is a key supplier to end-user product segments, namely Fluorochemicals and Overall, the Business is expected to improve its that the production capacities were optimally utilized performance with better capacity utilization and industries, namely, steel, cement, coal, and power Specialty Chemicals. during the year. generation. In FY 2020- ’21, all these industries commissioning of new plants like CMS in the latter witnessed a de-growth, thereby resulting in pressure Fluorochemicals half of the year 2021- ‘22, sales ramp-up of AHCL and Both the sites managed production despite COVID-19 on margins. However, with an increased focus on Refrigerants & Propellants and Industrial Chemicals other cost improvement initiatives including supply induced manpower challenges. This ensured continuity Value-Added Products (VAPs) and an integrated value FY 2020- ‘21 was a tough year for the refrigerants chain stabilization along with keeping a close watch of customers’ supply chain. The Business captured chain, the Business was able to increase the overall market globally. Auto and air-conditioner market on how the macro scenario moves. The Business the market opportunities and translated them into

124 Annual Report 2020-21 125 CORPORATE OVERVIEW STATUTORY REPORTS

Chemicals Technology Group at Bhiwadi are being augmented to achieve this. The Chemicals Technology Group (CTG) has been SRF will continue to invest in CTG, which has been continually augmenting its capabilities and helping in dedicatedly working on enhancing SRF’s technology commercial propositions. The agility demonstrated during FY 2020 – ‘21. The Business made continual driving the technology curve for the Fluorochemicals development capabilities by developing more efficient in supplying some critical and complex intermediates investment towards cleaner and leaner operations, and Specialty Chemicals Businesses. and sustainable processes. CTG is envisaged to was acknowledged by our customers and we were in line with further strengthening its sustainability facilitate the Businesses in their journey of Innovation also bestowed the ‘Syngenta Supplier Award 2020 for initiatives. All these measures have further enhanced CTG has been developing a variety of new and Technology Leadership, which is key in driving Performance’ during the year. the positioning of the Business in its ability to deliver technologies and platforms to bolster SRF into next sustainable growth at SRF. complex specialty products and related intermediates. level of technology play. CTG is actively supporting

The Business continues to remain focused on both the Specialty Chemicals and the Fluorochemical The two dedicated R&D facilities, engineering lab and FINANCIAL STATEMENTS agrochemical and pharmaceutical space, where Outlook Businesses gain prominence in their respective pilot plant facilities, employing many scientists and Business areas. we collaborate with major global innovators for The Business continues to engage with global engineers work together to achieve the innovation process development, commercialization, and innovators to develop new-age products in our chosen and technology leadership at SRF. SRF continues to CTG has enabled the Business growth in Fluorinated production of complex new age molecules having markets and strives to serve its customers despite invest in R&D for creating propositions for the future downstream application in agrochemical and the ongoing challenges posed by the pandemic. molecules where it holds over three decades of and Capital and Revenue expenditures of more than pharmaceutical segments. The Business, supported by its customers, is expected manufacturing expertise. CTG is now increasingly ` 100 Cr. were spent during FY 2020- ‘21. to continue showcasing its ability to supply critical engaged in the development of complex During the year, the Business launched several intermediates and meet customers’ emerging needs. non-Fluorinated intermediates. With more-and-more CTG worked on more than 50 molecules and 80% new agrochemical and pharma intermediates and The Business will continue in its efforts to deliver complex products being introduced by the Business products were successfully taken up for process remained steadfast on its ‘Innovation and Technology better value to its customers as it remains committed in the market and to meet further challenging Leadership’ journey. The production capacity of several to invest in emerging and futuristic technologies, chemistries and complex needs of customers, development. Around 15 molecules were taken up for products was enhanced significantly at both the sites. while having a strong focus on operational excellence it is imperative to boost CTG’s capabilities and the scale-up studies and were commercially produced Three new dedicated plants were also commissioned to sustain growth. support systems. The R&D and scale-up facilities in multipurpose and dedicated plants.

126 Annual Report 2020-21 127 In FY 2020- ‘21, CTG filed thirty-six patents taking the Outlook the safety of our people. Providing proper insurance The total number of permanent total count to three hundred and nine patents filed so During the coming year, we expect to face some cover, ‘no questions asked’ financial assistance to far. Twenty-three patents were granted in FY 2020- temporary disruptions especially on the supply chain people struggling with the virus and looming hospitals employees at SRF stands ‘21 taking the total count of patents granted to the front caused by the COVID-19 pandemic and it will bills, on-call medical treatment for employees, at 6,956 at the close of company to ninety-three. etc. were some of the initiatives undertaken by result in financial impact on almost all organizations. business on March 31, 2021. CORPORATE OVERVIEW In recent times, several new film plant expansions the HR department. Packaging Films Business have also been announced across the world and in Of these, 6,386 are based at our Well-being of our people was at the core of everything FY 2020- ’21 has been a good year for the Packaging the future, we might witness an oversupplied market that we did, including tie-ups with professional Indian locations. Films Business (PFB). This Business is a part of the resulting in pressure on profitability. At present, it is counselors to ensure psychological welfare essential goods value chain and hence was able to difficult to predict the demand. We expect that in the of our people. operate its plants during the nationwide lockdown. coming year, the supply of Packaging films will exceed Increased demand for food packaging accompanied demand, leading to pressure on margins. by the hard work and passion of the team contributed When it comes to well-being, we do not restrict ourselves to just our employees. A massive drive to towards the larger goal of ‘Easy To Do Business In FY 2021- ‘22, SRF’s primary focus will be on running provide for the needy was conducted at all locations With (ETDBW)’ and helped the Business achieve its its plants optimally, keeping costs under control and of SRF. Our own SRF employees came to the forefront best-ever performance. continuing our work on VAPs. Effort will also be and fulfilled an important duty towards the society. directed towards maximum utilization of the new All plants maximized their production, keeping costs BOPP facility in Thailand starting in the first quarter. under control and creating their own benchmarks. During this time, it became evident that automation Furthermore, we will continue our work on the We could achieve an output of almost 2,50,000 MT and virtualization was the new essential. As a sustainability initiatives driven by the ‘3R’ approach - during the year while sustaining the best-in-industry function, HR focused on automation of most of its Reduce, Reuse and Recycle. STATUTORY REPORTS cost structures. In our journey of adding more VAPs processes and ensured nothing was stalled due to in our portfolio, the Business launched fourteen new the external changes. In the event, several processes During the year, we will keep a close watch on products and the overall VAP sales grew by more than were also revamped completely to suit the new reality. the macro scenario and be flexible to adapt our 20% over previous year. Our team worked relentlessly This included the ones adjusting to working-from- strategy accordingly. to start the new BOPET film plant at Thailand, home or putting in place strict protocols to ensure the The total number of permanent employees at making it the first-ever remote commissioning of a safety of the staff in the factories. SRF stands at 6,956 at the close of business on film line anywhere in the world. Subsequently, the Other Businesses March 31, 2021. Of these, 6,386 are based at our team also commissioned and operationalized the Most importantly, we made the promise of ‘no job Coated and Laminated Fabrics Business Indian locations. new BOPET film line in Hungary and a resin plant in losses due to the pandemic’. The organization fulfilled Under the Other Businesses segment, both Coated Thailand amidst severe travel restrictions, limiting its promise and continues to do so. We also kept every and Laminated Fabrics performed well in FY 2020- Information Technology availability of supplier personnel and field experts single commitment made prior to the pandemic. All job ’21. Despite adverse market situation, Coated Fabrics on-site. While utilizing our assets to the maximum, offers made were honored. All financial commitments The primary focus of Information Technology Business recorded its best-ever performance and we continuously strive to maintain a safe and healthy made to people prior to the pandemic were fulfilled. during the year was to keep employees connected Laminated Fabrics Business has also been able to environment at our plants. In FY21, we received A healthy and more than industry average increment and productive during the COVID-19 crisis. achieve the targeted profitability. Both the Businesses 5 Star rating for Occupational Health and Safety and bonus was announced for employees. Our investment in cloud solutions like Office365 were were impacted during the first quarter due to the (OHS) from the British Safety Council for our facility utilized to ensure employees could get access to situation arising from the COVID-19 pandemic. FINANCIAL STATEMENTS in South Africa. Our expansion of BOPP film line at Industrial Environment information and applications from anywhere securely both Thailand and India are also progressing well and The organization’s overall employee relations remained on authorized devices. Collaboration platforms were Outlook timely vertical startup of both the lines will be one of mostly positive throughout the year. This was a used to enable various teams to work together with our most important agenda items. In FY 2021- ’22, we expect some temporary result of our concerted efforts towards curbing the features like online meetings, video conferencing and disruptions in the market due to COVID-19 pandemic. fear of the unknown and related anxiety amongst shared libraries. Even critical plant commissioning was The Business is driven by the philosophy of –ETDBW, For both the Businesses, the focus will be on people. This was done by ensuring proper support made possible through video assisted support from even during challenging circumstances and that is increasing the sales and continue work on various and timely and consistent communication. We kept experts around the globe. A new e-learning platform what keeps us focused towards serving our customers cost reduction initiatives. our employees engaged and conducted various was deployed so that the lockdown time could be every day. In the year 2020, Sustainability initiatives initiatives both virtually and in-person. We maintained well-utilized to hone employee knowledge and skills. slowed down in the packaging industry, however, Human Resources a pleasant and cordial working environment across all as a responsible player, we have continued with our COVID-19 pandemic has been one of the biggest manufacturing locations and witnessed an increase in Ensuring employee asset and data safety was initiatives and participation in various international human health and economic crises faced by mankind productivity at several manufacturing locations. of prime importance considering the increased forums. Sustainability will remain amongst the in almost a century. During this period, the initial focus top-most priorities for the Business in 2021. of the Human Resources (HR) team was to ensure

128 Annual Report 2020-21 129 Community Partnerships This year was marked by the sudden outbreak Building on its long-term commitment to the of COVID-19 pandemic. To help those in need, SRF Foundation contributed 63,139 ration kits sustainable and inclusive growth of the community, and 4,585 health kits to 23,775 families in eight SRF Foundation, the corporate social responsibility locations across India.

arm of SRF Limited, expanded its scope of work and CORPORATE OVERVIEW took concrete steps in compliance with Section 135 of In recognition of our work, SRF Foundation was the Companies Act 2013 during FY 2020- ‘21. bestowed with several awards for meaningful contribution to school education. We were honored The Foundation continued to focus on the identified with the Best STEM Education Project – Through areas of education, vocational skills, natural resource Partnership (Large Impact) by the India CSR management, child nutrition and affirmative action on Network. Furthermore, we were the finalist at the a sustainable basis. Furthermore, it strengthened its 7th eNabling North East Awards, organized by Public Private Community Partnership (PPCP) model the North East Development Foundation & Digital to positively affect the lives of people. Empowerment Foundation.

FY 2020- ‘21 witnessed the strengthening of the Internal Control System and Internal Foundation’s education program. Today, we have Audit reached 276 Government schools across 21 locations Internal Audit & Risk Management is an enabling in nine states directly, providing quality education to function, which steers and coordinates the more than 81,310 students. By collaborating with internal controls and risk management system of STATUTORY REPORTS likeminded partners, we work with 212 Government & the organization. It provides standard operating Private schools indirectly, positively affecting the lives procedures, methods, and tools, which forms the of 3,800 students and 261 teachers in these schools. basis for Enterprise Risk Management and internal The Foundation continued its work towards improving control process. infrastructure and academic facilities under the School exposure of employees outside the secured network circumstances. The Government requirements of Education Program, and promoting digital-based The Internal Audit team develops a comprehensive perimeter of SRF. Secure VPN solutions, information e-invoicing and e-way bill were addressed with learning through KidSmart Centers, World on Wheels annual internal audit plan employing systematic classification and protection solutions, cloud proxy automated solutions integrated with Government & GetSmart-Mobile Digital Labs, Common Services approach, which is risk-based audit area identification, solutions ensured that the employee home zone was portals. Many manual processes that took time were commensurate with the size and nature of business Lab, Digital Based Learning, and Digital theatres. also converted to a safe zone for enterprise data. automated on BPM platforms with rule and decision activities of the company. In addition, the statutory The Foundation also supported a child nutrition Employee credentials were protected using Microsoft engines defined. Shopfloor automation solutions were auditor, assesses the fundamental suitability of program through its project ‘Power of 5’. cloud authentication solutions doubly protected with put in place to augment workers on the shopfloor. the internal audit to ensure the effectiveness of multi-factor authentication. A security and incident Multiple projects were done using Industrial Internet internal financials controls, as part of its audit of SRF Foundation undertook several new initiatives to event management system was deployed to track all of Things (IIOT) tools to improve process efficiencies, the annual financial statements. The Internal Audit improve the employability of people around our plant events on our gateway firewalls. costs, and quality of products. plan is approved by the Audit Committee, which also locations by providing vocational skills in partnerships reviews compliance to the said plan. The company

with Schneider Electrical and The Times of India. FINANCIAL STATEMENTS The IT infrastructure is undergoing a transformation We reached out to our external stakeholders with has a well-documented system of internal financial to incorporate cloud-based applications. An important a customer portal for our Chemicals Business controls in place, commensurate with its size, scale, SRF Foundation, through its Natural Resource component of this is the network that is being giving dealers the flexibility to place online orders. and complexity of operations. These controls have Management (NRM) program continued to reach the re-structured with a software defined wide area The supplier portal will connect our key suppliers been designed to provide reasonable assurance with network solution. Many of our plant and office similarly. We extended an online vendor bill economically weaker families near its manufacturing respect to recording and providing reliable financial locations were moved to this platform that helps in discounting solution for vendors to bid for early plant at Bhiwadi in Rajasthan and improve their and operational information, complying with applicable intelligently routing network traffic to our data centers payment against discounts. livelihood by adopting the watershed-based livelihood laws, safeguarding assets, executing transactions or to the internet directly from the plants in a secure and environment conservation approach. In FY 2020- with proper authorization, and ensuring compliance manner. This improves performance, latency while Our investment in technologies helped us tide over ‘21, the Foundation conducted certain Hydrological with corporate policies. The controls based on the reducing downtimes. the uncertain times. We will continue to use these and Environment studies in 35 villages around SRF prevailing business conditions and processes have technologies and invest in essential technologies to Bhiwadi Plant in the Tijara block where rainfall is been tested by internal/external auditors during the Another focus area this year was on automation keep operations running while giving business an below normal, and the findings helped us create year and no reportable material weaknesses in the to ensure operations keep working in the current edge to compete with innovative offerings. 206 earthen dams. design or effectiveness was observed.

130 Annual Report 2020-21 131 The Internal Audit team also monitors and evaluates today, we have reached 276 • Review the risks that may threaten the existence the efficacy and adequacy of internal control systems of the company. in the company, the ERP solutions, the accounting Government schools across Board of Directors (BOD) / procedures, and policies at all locations. Based on 21 locations in nine states Audit Committee • Consider the recommendation of the gaps reported in the internal audit report, process Risk Management Committee on Risk CORPORATE OVERVIEW owners undertake corrective actions in their directly, providing quality Management Plan/ Policy. respective areas and thereby strengthen the controls. education to more than Any significant audit observations and corrective 2. Risk Management Committee (RMC): actions thereon are presented to the Audit Committee. 81,310 students. • Oversee company’s risk management framework. Risk Management The Audit Committee reviews the reports submitted Committee (RMC) • Review key risks and compliance of risk by the Internal Auditors (both internal and management policy. external) in each of its meetings. The company • Review risk portfolio and mitigation also has a robust and comprehensive framework strategies and updates the Board & Audit of Control Self-Assessment (CSA), which promotes Committee on the same. self-compliance monitoring mechanism in accordance Corporate Leadership Team (CLT) with laid down policies and procedures, regulatory • Assist the Board/Audit Committee in evaluating environment through IT enabled platform such as the effectiveness of Risk Management System. CSA tool and Compliance Manager. 3. Corporate Leadership Team (CLT): Risk Management Risk management process has been the integral • Develop risk management framework and policy. STATUTORY REPORTS The company has developed and implemented a part of the company strategy and planning process. Risk Management Framework, which is approved by The company has established a risk management Business Leadership Team • Review key risks and mitigation action plan. the Board. Further, the Board has constituted a Risk framework to identify, assess and frame a response (BLT) & Risk Owners • Review effectiveness of risk mitigation Management Committee (RMC) to oversee key risks to threats that can affect its business objectives and strategies; develop counter measure if any and and assist the Board in efficient management of risk stakeholders. Further, it is embedded across all the update the same to RMC. management process. major functions and revolves around the goals and objectives of the organization. The responsibility The Risk Management Policy, inter alia, includes of tracking and monitoring the key risks of the The key roles and responsibilities regarding risk 4. Business Leadership Team (BLT) & identification therein of elements of risk, including business/function periodically and implementing management in the company are summarized as follows: Risk Owners: those, which in the opinion of the Board/RMC suitable mitigation plans proactively is with the senior • Identification, classification, and prioritization may threaten the existence of the company. executives of various business/functional units. 1. Board of Directors (BOD) & the of risks into high, medium, and low as per risk Audit Committee: management framework. • The Board of Directors hold the overall Risk Management Process responsibility for an effective risk management • Identify and implement risk mitigation measures. system. The Audit Committee of the Board • Periodically review mitigation measures status, examines the appropriateness and effectiveness

develop counter measures, if any. FINANCIAL STATEMENTS of the risk management system at least once a year and reports to the Board. • Provide status update of key risks to the CLT.

Risk Risk Risk Risk Risk Monitoring Identification Assessment Prioritization Treatment & Reporting

132 Annual Report 2020-21 133 Risk Classification All the risks have been broadly classified into the following categories: CORPORATE GOVERNANCE REPORT

Strategic Risk Financial & Reporting Risk Risks arising out of macro-economics Financial risk arising due to various Philosophy of the Company on Corporate Governance CORPORATE OVERVIEW and other external conditions, which uncertainties in the financial market or For SRF Limited (SRF), good corporate governance means adoption of best practices to ensure that the Company can significantly impact the company’s inadequate financial reporting. operates not only within the regulatory framework, but is also guided by broader business ethics. The adoption strategic business decision, future of such corporate practices — based on transparency and proper disclosures — ensures accountability of the aspiration, and financial performance. persons in charge of the Company and brings benefits to investors, customers, creditors, employees and the society at large.

Operational Risk IT and Cyber Risk Board of Directors Risks of loss due to insufficient resources, Potential loss due to non-availability of Composition of the Board inadequate processes or failure thereof, or technical infrastructure or appropriate As on March 31, 2021, SRF’s Board consisted of 11 Directors, of which four are executives of the Company insufficient skill or people. software technology, impact on data (including the Chairman, who is an Executive Chairman), one is non-executive & non-independent and six are integrity, data theft or loss of Intellectual independent. Table 1 gives the details of the Board as on March 31, 2021. Property Right (IPR) due to compromised Regulatory Risk network security. Table 1: Composition of the Board of Directors of SRF Risks arising out of regulatory Name of Director Category of No. of Directorships No. of Committees where Name of Listed non-compliances. Director of Indian Public Ltd Chairperson or Member Entities & Category

Co. (other than SRF (including SRF Limited)# of Directorship STATUTORY REPORTS Limited)* Chairperson Member Arun Bharat Ram Executive 3 - 2 - J K Paper Limited During FY 2020- ‘21, significant changes in the key financial ratios as per listing regulations were as follows: Chairman, Promoter – Independent Director Ratios FY 20-21 FY 19-20 % Change Remarks Ashish Bharat Ram Executive, Promoter 4 1 1 - Transport Interest Coverage 13.57 8.06 68.24% Better operating margins and scale leading to Corporation of Ratio = (EBDITA a higher EBDIT, lower cost of borrowing and India Limited - Current Tax) an overall reduction in borrowing leading to – Independent / Gross Interest better interest coverage Director

Current Ratio = 1.43 0.95 50.70% Higher operating cash flows, QIP inflows, - KAMA Holdings Current Assets / and lower maturities of long-term borrowings Limited – Non- Current Liabilities in next financial year leading to a better Executive Director current ratio. Kartik Bharat Ram Executive, Promoter 2 - 2 - KAMA Holdings Limited – Non- Debt Equity Ratio = 0.42 0.59 28.28% Qualified Institutional Placement of` 750 Executive Director FINANCIAL STATEMENTS Total Debt / Equity crore during FY ‘21 led to a higher equity Pramod G Gujarathi Executive 1 - 1 - Chemiesynth base and reduced gross borrowings, (Vapi) Limited better operating margins also aided in – Independent higher operating cash flows leading to a Director lower debt profile. Tejpreet S Chopra Non-Executive, 2 1 1 - Gujarat Pipavav Independent Port Limited – Return on 14.70% 20.80% -29.35% FY ‘20 PAT (Including Discontinuing Independent Net Worth= PAT/ Operations) was higher due to one-time sale Director Net Worth of the Engineering Plastics Business, Deferred Tax Re-measurements, and utilization of - Indian Exchange brought forward capital losses. Also, QIP Energy Limited issuance of ` 750 crore during FY ‘21 led to a – Independent higher Net Worth. Director

134 Annual Report 2020-21 135 Name of Director Category of No. of Directorships No. of Committees where Name of Listed The Board has identified the following skills/expertise/ competencies fundamental for the effective functioning Director of Indian Public Ltd Chairperson or Member Entities & Category of of the Company which are currently available with the Board : Co. (other than SRF (including SRF Limited)# Directorship Skill Matrix identified by the Board to function effectively - Limited)* Chairperson Member

Lakshman Non-Executive, 4 2 - - Rane Brake Lining Industry knowledge/experience Technical skills/experience Behavioural Competencies CORPORATE OVERVIEW Lakshminarayan Independent Limited – Non Executive, a) Consulting Experience a) Accounting and finance a) Integrity and ethical standards Promoter Director b) Manufacturing Industry b) Industrial Engineers b) Mentoring abilities - Rane Engine Valves experience Limited- Non Executive, c) Understanding of relevant laws, c) Talent Management c) Critical thinking Promoter rules, regulation and policy - Rane Madras Limited - d) Analyzing Business Problems d) Compliance and risk d) Strategic Planning Non Executive, Promoter e) Adapting to changing Business e) Devising plans for New e) Entrepreneurial & Commercial Director Conditions Business Acumen - Rane Holdings Limited f) Recommending cost-cutting f) Proposing solutions to f) Analytical Decision Making – Chairman Emeritus, measures Business Problems Non-Executive, Promoter g) Recommending Process g) Innovation g) Customer Centricity Vellayan Subbiah Non-Executive, 6 1 4 - Tube Investments Improvements h) Leading Change Independent of India Limited – i) Leading People Executive, Promoter Director Skills available with Board as per skill matrix - - Shanti Gears Limited STATUTORY REPORTS – Non-Executive, Sl. Name of Director Industry knowledge/ Technical skills/ Behavioural Promoter Director No. experience experience Competencies - Cholamandalam 1. Arun Bharat Ram b,d,e f,g b,e,f,g a,b,c,d,e,f,h,i Investment and Finance 2. Ashish Bharat Ram b,c,d,e,f,g a,d,e,f,g a,c,d,e,f,g,h,i Company Limited - 3. Kartik Bharat Ram b,d,e,f,g c,d,e,f,g a,b,c,d,e,f,h,i Non-Executive Director 4. Lakshman Lakshminarayan b,c,d,e,f,g a,b,c,f a,b,e,f,g,i - Cholamandalam 5. Vellayan Subbiah a,b,c,d,e,f,g a,b,e,f a,c,d,e,f,g,h Financial Holdings 6. Tejpreet S Chopra b,c,d,f,g d,e,f,g a,c,d,e,f,g,h Limited - Non-Executive 7. Pramod G. Gujarathi b,c,f,g b,d, a,b,c,f,g Director 8. Bharti Gupta Ramola a,c,d,e,g a,d,f,g a,c,d,f,g,h - CG Power and 9. Meenakshi Gopinath c c,d a,b,c,g,h,i Industrial Solutions 10. Puneet Yadu Dalmia b,c,d,e,f,g a,b,e,f a,b,c,d,e,f,i Limited - Non-Executive 11. Yash Gupta a,d,e,f,g a,c,e,f,g a,b,c,d,e,f,h Director Meenakshi Gopinath Non-Executive, - - - Nil Certificate from M/s. S. Aggarwal & Associates, confirmation / disclosures received from the Directors Non- FINANCIAL STATEMENTS Independent Practising Company Secretary (Registration No. 8989), and on evaluation of the relationships disclosed, Bharti Gupta Ramola Non-Executive, 1 - 2 - HDFC Life Insurance confirming that none of the Directors on the Board all Non-Executive Directors other than Meenakshi Independent Company Limited – of the Company have been debarred or disqualified Gopinath are Independent in terms of Regulation Independent Director from being appointed or continuing as directors of 16 of Listing Regulations and Section 149(6) of the Puneet Yadu Dalmia Non-Executive, 1 - - - Dalmia Bharat Limited- the Company by the Board/ Ministry of Corporate Companies Act, 2013. Independent Managing Director Affairs or any such Statutory Authority as stipulated The Company has received declarations from all the Yash Gupta Non-Executive, 1 - 2 Nil under Regulation 34(3) of the Listing Regulations, is Independent attached to this Report. Independent Directors confirming that they meet the criteria of independence as prescribed both under *Other directorships do not include directorships of private limited companies, foreign companies and companies registered the Companies Act and Listing Regulations. In terms under Section 8 of the Act. Independent Directors on the Board are Non-Executive Directors of Regulation 25(8) of SEBI Listing Regulations, #Membership & Chairmanship of Stakeholder Relationship Committee & Audit Committee of Indian Public Companies have been considered. Our definition of ‘Independence’ of Directors is derived they have confirmed that they are not aware of any from Regulation 16 of Listing Regulations, and Section circumstance or situation which exists or may be Arun Bharat Ram is the father of Ashish Bharat Ram and Kartik Bharat Ram. 149(6) of the Companies Act, 2013. Based on the reasonably anticipated that could impair or impact

136 Annual Report 2020-21 137 their ability to discharge their duties. Based on the Independent Directors’ Meeting Table 3: Remuneration Paid or Payable declarations received from the Independent Directors, In accordance with the applicable provisions of Sl. Name of Director Salary & Sitting Fees Perquisites Provident Commission Total the Board of Directors has confirmed that they meet Companies Act, 2013 and Listing Regulations, a No. Allowances Fund and (Provided)/ (` In the criteria of independence as mentioned under meeting of the Independent Directors of the Company Superannuation Professional Crores) Regulation 16(1)(b) of the SEBI Listing Regulations was held on January 21, 2021, without the attendance Fees CORPORATE OVERVIEW and that they are independent of the management. of Non-Independent Directors and members of the management. 1 Arun Bharat Ram 2.88 - 0.24 0.49 4.00 7.61 None of the Directors on the Board holds directorships 2 Ashish Bharat Ram 3.76 - 1.15 0.47 4.00 9.38 in more than ten public companies. None of our Familiarisation Programme 3 Kartik Bharat Ram 3.76 - 0.98 0.47 4.00 9.21 Directors serve as a director/ independent director Your Company has put in place familiarisation on more than seven listed entities. None of our programme for all its Directors including the 4 Pramod G Gujarathi 0.19 - - 0.01 - 0.20 Directors who is serving as whole time Director/ Independent Directors with regard to their roles, 5 Meenakshi Gopinath - 0.02 - - 0.15 0.17 Managing Director in any listed entity is holding rights, responsibilities in the Company, nature of the 6 Tejpreet S Chopra - 0.05 - - 0.14 0.19 position of independent director in more than three industry in which the Company operates, the business 7 Lakshman - 0.05 - - 0.14 0.19 listed entities. None of the Directors is a member of models of the Company etc and the familiarisation Lakshminarayan more than ten Board level committees nor are they programme for the Independent Directors is available Chairman of more than five committees in which they on the website of the Company at the link https:// 8 Vellayan Subbiah - 0.03 - - 0.14 0.17 are members. www.srf.com/investors/corporate-governance/ 9 Bharti Gupta Ramola - 0.04 - - 0.14 0.18 10 Puneet Yadu Dalmia - 0.03 - - 0.14 0.17 Number of Board Meetings 11 Yash Gupta - 0.05 - - 0.14 0.19

During 2020-21, the Board of Directors met five times on the dates as referred below in Table 2. STATUTORY REPORTS Total 10.59 0.27 2.37 1.44 12.99 27.66 Table 2: Attendance of directors in Board Meetings and Annual General Meeting (AGM) held during the year in 2020-21 The Nomination and Remuneration Committee has laid down criteria for making payments to non-executive directors, which inter alia, includes level of remuneration /commission payable by other comparable Name of the Director Date of Board Meeting and Date of companies, time devoted, experience, providing guidance on strategic matters and such other factors as it Attendance of Directors AGM and may deem fit. Attendance of Directors The non-executive directors are entitled to remuneration up to an aggregate limit of one percent per annum of June 04, July 30, August November January March August 17, the net profits of the Company. Within the aforesaid limit, the commission payable is determined by the Board 2020 2020 31, 2020 04, 2020 21, 2021 03, 2021 2020 and equal amount of commission is payable to all the Independent Non-Executive Directors on a pro-rata basis. Arun Bharat Ram Yes Yes Yes Yes Yes Yes Yes For the year under review, remuneration to non-executive directors was approved by the Board of Directors with the interested non-executive directors, not participating or voting in the resolution. Ashish Bharat Ram Yes Yes Yes Yes Yes Yes Yes Kartik Bharat Ram Yes Yes Yes Yes Yes Yes Yes Table 4: Details of Service Contracts Pramod G Gujarathi Yes Yes Yes Yes Yes Yes No Name of Director Tenure Notice Period Severance Fee

Tejpreet S Chopra Yes Yes Yes Yes Yes No Yes Arun Bharat Ram 5 years w.e.f. 6 months by either party As per the provisions of the FINANCIAL STATEMENTS Lakshman Yes Yes Yes Yes Yes Yes Yes June 15, 2018 Companies Act, 2013 Lakshminarayan Ashish Bharat Ram 5 years w.e.f. 3 months by either party As per the provisions of the Vellayan Subbiah Yes Yes No Yes No Yes No May 23, 2020 Companies Act, 2013 Meenakshi Gopinath No Yes No Yes Yes Yes No Kartik Bharat Ram 5 years w.e.f June 3 months by either party As per the provisions of the 01, 2021 (subject Companies Act, 2013 Bharti Gupta Ramola Yes Yes Yes Yes Yes Yes Yes to reappointment at Puneet Yadu Dalmia Yes Yes No Yes Yes No No upcoming AGM) Yash Gupta Yes Yes Yes Yes Yes Yes No Pramod Gopaldas 3 years w.e.f. 1 month by either party Nil Gujarathi April 01, 2020 Remuneration of Directors Table 3 gives the remuneration paid or payable to the Directors of SRF Limited for financial year 2020-21 and Shareholding of Non-Executive Directors table 4 gives details of Service Contracts Table 5 gives details of the shares held by the non-executive Directors as on March 31, 2021.

138 Annual Report 2020-21 139 Table 5: Equity Shares held by Non-Executive Directors as on March 31, 2021 the website of the Company, https://www.srf.com/ • Statement of significant related party investors/corporate-governance/. All Board members transactions (as defined by the Audit Name of Director Category Number of Equity Shares Held and designated senior management personnel have Committee), submitted by management; Tejpreet S Chopra Independent 578 affirmed compliance with the Code of Conduct. A Lakshman Lakshminarayan Independent - declaration signed by the Managing Director to this • Management letters / letters of internal Vellayan Subbiah Independent 13,407 CORPORATE OVERVIEW effect is enclosed at the end of this report. control weaknesses issued by the statutory Bharti Gupta Ramola Independent - auditors; Puneet Yadu Dalmia Independent - Risk Management Yash Gupta Independent 200 • Internal audit reports relating to internal The Company has laid down procedures to inform Meenakshi Gopinath Non-Independent - control weaknesses; the Board members about the risk assessment and The Company has not issued any convertible securities to any Director minimisation procedures. These procedures are being • The appointment, removal and terms of periodically reviewed to ensure that management remuneration of the Chief internal auditor Information Supplied to the Board • Transactions that involve substantial payment controls risk through means of a properly defined shall be subject to review by the Audit framework. The Board has complete access to all information with towards goodwill, brand equity or intellectual Committee. and the Company. Inter-alia, the following information property is regularly provided to the Board as a part of the Statutory Committees of the Board • Statement of deviations: • Significant labour problems and their proposed agenda papers well in advance of the Board meetings a) Audit Committee solutions. Any significant development in human (a) Quarterly statement of deviation(s) or is tabled in the course of the Board meeting: resources / industrial relations front like signing i) Terms of Reference including report of monitoring agency, of wage agreement, implementation of voluntary The terms of reference of the Audit Committee • Annual operating plans and budgets and any if applicable, submitted to stock retirement scheme, etc are wide enough covering the matters as per the

exchange(s) in terms of Regulation STATUTORY REPORTS update thereof guidelines set out in the Listing Regulations read • Sale of material nature of investments, 32(1). • Capital budgets and any updates thereof with Section 177 of the Companies Act, 2013. subsidiaries, assets, which is not in the normal These broadly includes approval of annual internal (b) Annual statement of funds utilized for • Quarterly results of the Company and operating course of business audit plan, review of financial reporting systems, purposes other than those stated in divisions and business segments • Quarterly details of foreign exchange exposures ensuring compliance with regulatory guidelines, the offer document/prospectus/notice • Minutes of the meetings of the audit committee and the steps taken by management to limit the discussions on quarterly, half yearly and annual in terms of Regulation 32(7). and other committees of the Board risks of adverse exchange rate movement, if financial results, interaction with statutory, material internal and cost auditors, recommendation for ii) Composition of Audit Committee and Attendance • Information on recruitment and remuneration appointment, remuneration and term of auditors, • Non-compliance of any regulatory, statutory of members in Audit Committee Meeting held of senior officers just below the level of Board, examination of financial statements and auditors’ nature or listing requirements and shareholders during the year including the appointment or removal of Chief report thereon, review the functioning of the service such as non-payment of dividend, delay Financial Officer and Company Secretary Whistle Blower Mechanism, review and monitor As on March 31, 2021, the Audit Committee in share transfer, etc • Materially important show cause, demand, the auditor’s independence and performance of SRF comprised of three Directors all of and effectiveness of audit process, approval or whom are independent, namely Lakshman prosecution notices and penalty notices The Board periodically reviews compliance any subsequent modification of transactions of Lakshminarayan as Chairman, Vellayan Subbiah reports of all laws applicable to the Company, • Fatal or serious accidents, dangerous occurrences, the Company with related parties, scrutiny of and Bharti Gupta Ramola as members. The

prepared by the Company as well as steps taken FINANCIAL STATEMENTS any material effluent or pollution problems inter-corporate loans and investments, valuation constitution of the Committee meets the by the Company to rectify instances of non- of undertakings or assets of the company, requirements of Section 177 of the Companies • Any material default in financial obligations to compliances. and by the Company, or substantial non-payment wherever it is necessary, evaluation of internal Act, 2013, as well as Regulation 18 of Listing financial controls and risk management systems, for goods sold by the Company In addition to the above, pursuant to the Listing Regulations. All the members of the Audit reviewing with the management adequacy Committee are financially literate. Chairman, • Any issue, which involves possible public or Regulations the minutes of the Board meetings of internal control system and reviewing the Managing Director, Deputy Managing Director, product liability claims of substantial nature, of your Company’s unlisted subsidiary companies utilization of loan and/ or advances from/ CFO, Internal Auditors and Statutory Auditors including any judgement or order, which may and a statement of all significant transactions and investment by the holding company in the are invitees to the Committee. Company have passed strictures on the conduct of the arrangements entered into by the unlisted subsidiary subsidiary company exceeding prescribed limit. Secretary of the Company acts as Secretary to Company or taken an adverse view regarding companies are also placed before the Board. the Committee. another enterprise that can have negative In addition, the Committee also mandatorily Code of Conduct implications on the Company reviews: The Company’s Board has laid down a Code of Conduct Table 6 provides details of the Audit Committee • Details of any joint venture or collaboration for all Board members and senior management of • Management discussion and analysis of meetings held during the year 2020-21 and agreement the Company. The Code of Conduct is available on financial condition and results of operations; attendance of its members.

140 Annual Report 2020-21 141 Table 6: Attendance Record of Audit Committee Meetings during 2020-21 evaluation of the Board’s own performance, the The Company’s Nomination, Appointment performance of its Committees and of all the Name of Members Category Date of Audit Committee Meeting and Attendance of Members and Remuneration Policy for Directors, Key individual Directors including the Chairman of the Managerial Personnel, Senior Management June 04, 2020 July 30, 2020 November 04, 2020 January 21, 2021 Board of Directors based on various parameters Lakshman Independent, Yes Yes Yes Yes Personnel and Functional Heads forms part of relating to roles, responsibilities and obligations the Board’s Report and is also accessible on Lakshminarayan Non-Executive of the Board, effectiveness of its functioning, CORPORATE OVERVIEW (Chairman) Company’s website www.srf.com. contribution of Directors at meetings and the Vellayan Subbiah Independent, Yes Yes Yes No functioning of its Committees. Non-Executive c) Stakeholders Relationship Committee Bharti Gupta Ramola Independent, Yes Yes Yes Yes iv) Nomination, Appointment and Remuneration Policy As on March 31, 2021, this Committee comprised Non-Executive Performance evaluation of independent directors four Directors—two executive Directors and two is done by the Nomination and Remuneration non-executive Directors, namely Tejpreet S Committee on criteria like attendance b) Nomination and Remuneration Committee • Evaluation of the performance of Chopra, Independent Director is Chairman, Yash i) Terms of Reference : independent directors and make and participation in Board and committee Gupta, Independent Director and Ashish Bharat The terms of reference of the Committee are recommendations to Board. meetings, advice on implementation of good Ram & Kartik Bharat Ram Executive Directors are wide enough covering the matters specified in corporate governance practices, diligence and Listing Regulations and the Companies Act, 2013 • To oversee succession planning for Board independence in judgement and actions, good members of the Committee. and Terms of reference of the Committee briefly of Directors, Key Managerial Personnel and faith and interest of the stakeholders, etc. Based are as under: Senior Management Personnel. on the recommendations of the NRC, the Board Table 8 provides details of the Stakeholders Relationship Committee meetings held during the • Formulation of the criteria for determining • Formulation of criteria for making payment of Directors decide to continue their appointment qualifications, positive attributes and to Non-Executive Directors or consider them for reappointment. year 2020-21 and attendance of its members. independence of a director. • Recommend to the board, all remuneration, Table 8: Attendance Record of Stakeholders Relationship Committee Meetings during 2020-21 STATUTORY REPORTS • Formulation of criteria for evaluation of in whatever form, payable to senior Independent Directors and the Board management. Name of Members Category Date of Stakeholders Relationship Committee • Devising a policy on Board diversity. Meeting and Attendance of Members ii) Composition of Nomination and Remuneration • Formulation of policies for remuneration Committee and Attendance of members in the 30-Jun- 07-Aug- 07-Sep- 20-Oct- 01-Dec- 19-Feb- to Directors, Key Managerial Personnel, meetings of the Nomination and Remuneration 2020 2020 2020 2020 2020 2021 Senior Management Personnel and other Committee held during the year Tejpreet S Chopra Non-Executive, Yes Yes Yes No No Yes Employees. As on March 31, 2021, this Committee (Chairman) Independent • Identification and recommendation to Board comprised of three Directors, all of whom Ashish Bharat Ram Executive, Promoter Yes Yes Yes Yes Yes Yes of persons who are qualified to become are independent, namely Tejpreet S Chopra Directors, Key Managerial Personnel Kartik Bharat Ram Executive, Promoter Yes Yes No Yes Yes Yes (Chairman), Yash Gupta & Puneet Yadu Dalmia and Senior Management Personnel in Yash Gupta Non-Executive, Yes Yes Yes Yes Yes Yes as Members. The constitution of the Committee accordance with the criteria laid down. Independent meets the requirements of Section 178 of the • Recommend to the Board on appointment Companies Act, 2013. Rajat Lakhanpal is Compliance Officer under Listing Regulations. and removal of Directors, Key Managerial Personnel and Senior Management Personnel. Table 7 provides details of the Nomination and As on March 31, 2021, no investor complaint was pending with the Registrar and Share Transfer Agent. • Evaluation of the performance of Directors Remuneration Committee meetings held during Table 9 gives data on the shareholder/investor complaints received and redressed during the year 2020-21. (other than independent directors). the year 2020-21 and attendance of its members. FINANCIAL STATEMENTS Table 9: Shareholder and Investor Complaints received and redressed during 2020-21

Table 7: Attendance Record of Nomination and Remuneration Committee Meetings during 2020-21 Total Complaints Total Complaints Complaints not solved to the Pending as on Name of Members Category Date of NRC Meeting and Attendance of Members Received Redressed satisfaction of Shareholders March 31, 2021 May 27, 2020 July 30, 2020 January 20, 2021 167 167 Nil Nil Tejpreet S Chopra Independent, Non-Executive Yes Yes Yes (Chairman) Puneet Yadu Dalmia Independent, Non-Executive Yes Yes Yes d) Corporate Social Responsibility Committee The terms of reference of the Committee in line As on March 31, 2021, this Committee comprised Yash Gupta Independent, Non-Executive Yes Yes Yes with the requirements of the Section 135 of of four Directors — Meenakshi Gopinath the Companies Act, 2013 and the rules framed (Chairperson), Arun Bharat Ram, Kartik Bharat iii) Annual Evaluation of Board, Committees and Nomination, Appointment and Remuneration thereunder. Ram and Lakshman Lakshminarayan as Individual Directors Policy, the Board of Directors/ Independent members. The constitution of the Committee Table 10 provides details of the Corporate Social Pursuant to the provisions of the Companies Directors/Nomination & Remuneration Committee meets the requirements of Section 135 of the Responsibility Committee meetings held during Act, 2013, Listing Regulations and as per the (“NRC”) (as applicable) had undertaken an Companies Act, 2013. the year 2020-21 and attendance of its members.

142 Annual Report 2020-21 143 Table 10: Attendance Record of CSR Committee Meetings during 2020-21 g) QIP Committee During the year the Board had constituted “QIP Committee” comprising of four Directors , Ashish Bharat Name of Members Category Date of meeting and Ram as Chairman of the Committee and Kartik Bharat Ram, Vellayan Subbiah and Tejpreet Singh Chopra Attendance of Director as members of the Committee. The scope of the Committee was to issue and allot equity shares pursuant June 04, 2020 March 25, 2021 to Qualified Institutional Placement approved by the Board at its meeting held on August 31, 2020 and to decide on incidental matters related thereto. CORPORATE OVERVIEW Meenakshi Gopinath Non-Independent, No Yes (Chairperson) Non-Executive Table 13 provides details of the QIP Committee meetings held during the year 2020-21 and attendance of Lakshman Lakshminarayan Independent, Non-Executive Yes Yes its members. Arun Bharat Ram Executive, Promoter Yes Yes Table 13: Attendance Record of QIP Committee Meetings during 2020-21 Kartik Bharat Ram Executive, Promoter Yes Yes Name of Members Category Date of QIP Meeting and Attendance of Members October 12, 2020 October 16, 2020 October 17, 2020 e) Risk Management Committee Ashish Bharat Ram Executive, Promoter Yes Yes Yes As on March 31, 2021, this Committee comprised of three Directors— Ashish Bharat Ram as Chairman, (Chairman) Kartik Bharat Ram and Bharti Gupta Ramola as Members. The composition of the Committee is in conformity Kartik Bharat Ram Executive, Promoter Yes Yes Yes Tejpreet S Chopra Independent, Non- Yes Yes Yes with Regulation 21 of the Listing Regulations. Executive Vellayan Subbiah Independent, Non- Yes No No As on March 31, 2021, brief description of terms of reference of Risk Management Committee interalia Executive includes the following: Management sexual harassment, Whistle blower Policy and Code • Oversee key risks, including strategic, financial, operational, compliance and cyber security risks. Management Discussion and Analysis of Conduct for Prevention of Insider Trading. The

• Assist the Board in framing, implementing, monitoring and reviewing the risk management plan/policy This is given as a separate chapter in this Annual Report. Company is following such a policy and crux of STATUTORY REPORTS which is disclosed by the Company on its website for the Company and reviewing and guiding the Risk Policy. Disclosure Requirements at the https://www.srf.com/investors/corporate- • During the year 2020-21, the Company had no • Assist the Audit Committee in evaluating the effectiveness of Risk Management System. governance/. No personnel has been denied access materially significant related party transactions. to the Audit Committee for raising his/her concern Transactions with related parties are disclosed in Note Table 11 provides details of the Risk Management Committee meetings held during the year 2020-21 and under this policy during financial year 2020-21. attendance of its members. No 32 to the Financial Statements. The Company has formulated a policy on materiality of Related • The Company has complied with all the mandatory Party Transactions and also on dealing with Related Table 11: Attendance Record of Risk Management Committee Meeting during 2020-21 requirements specified in Regulations 17 to 27 (as Party Transactions. The said policies are available on applicable) and clauses (b) to (i) of sub – regulation Name of Members Category Date of meeting and the website of the Company at the https://www. (2) of Regulation 46 of the Listing Regulations Attendance of Director srf.com/investors/corporate-governance/. Policy of December 22, 2020 determining ‘material subsidiaries’ is available on • This Corporate Governance Report of the Company Ashish Bharat Ram (Chairman) Executive, Promoter Yes the website of the Company at the https://www.srf. for the year 2020-21 is in compliance with the requirements of Listing Regulations, as applicable. Kartik Bharat Ram Executive, Promoter Yes com/investors/corporate-governance/. Bharti Gupta Ramola Independent, Non-Executive Yes • The equity shares of the Company are listed on Non-Mandatory Requirement BSE Limited and National Stock Exchange of India The status of adoption of the non-mandatory requirements f) Committee of Directors – Financial Resources Limited. The Company has complied with all the as specified in sub – regulation 1 of Regulation 27 of the As on March 31, 2021, this Committee comprised of three Directors— Arun Bharat Ram, Ashish Bharat Ram applicable requirements of capital markets and SEBI (Listing Obligations and Disclosure Requirements) FINANCIAL STATEMENTS and Kartik Bharat Ram all of whom are executive directors. no penalties or strictures have been imposed on Regulations, 2015 are as follows: the Company by Stock Exchange(s), SEBI or any (a) The Board : The Chairman of the Company Table 12 provides details of the Committee of Directors- Financial Resources meetings held during the year other statutory authority, on any matter relating is Executive Chairman; (b) Shareholder 2020-21 and attendance of its members. to the capital markets, during the last three years. Rights: Half-yearly and other quarterly financial • Vigil Mechanism Policy : Section 177 (9) of the statements are published in newspapers and Table 12: Attendance Record of Committee of Directors- Financial Resources Meetings during Companies Act, 2013 and Regulation 22 of Listing uploaded on Company’s website www.srf.com 2020-21 Regulations requires that a Company shall have a (c) Modified opinion(s) in audit report: Name of Date of Committee of Directors- Financial Resources Meeting and Attendance of Members vigil mechanism for directors and employees for The Company already has in place a regime of un-qualified financial statements. Auditors Members 14-May- 08-Jul- 31-Jul- 26-Aug- 17-Sep- 07-Oct- 12-Nov- 16-Dec- 21-Jan- 10-Feb- 08-Mar- 30-Mar- reporting concerns about unethical behaviour, actual 2020 2020 2020 2020 2020 2020 2020 2020 2021 2021 2021` 2021 or suspected fraud or violation of the Company’s have raised no qualification on the financial statements; and (d) Reporting of Internal Arun Bharat Ram Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes code of conduct or ethics policy. Vigil Mechanism Policy of the Company includes Code of Conduct Auditor: The Internal Auditor of the Company Ashish Bharat Ram Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes for Directors and Senior Management Personnel, reports to the President & CFO of the Company Kartik Bharat Ram Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Code of Conduct for employees, Policy against and has direct access to the Audit Committee.

144 Annual Report 2020-21 145 CEO/CFO certification The present tenure of service of contract of Kartik Sl. Name of the resolution Type of No. of votes Votes cast in favour Votes cast against The Certificate in compliance with Regulation 17(8) Bharat Ram, Deputy Managing Director is upto May No. resolution polled No. of votes % No. of votes % of Listing Regulations was placed before the Board of 31, 2021. Kartik Bharat Ram has been re-appointed as 1 Approval for raising of Special 43739534 43737762 99.9959 1772 0.0041 Directors. Deputy Managing Director for a period of 5 years wef funds by issuance of equity June 01 2021 subject to approval by shareholders at shares through Qualified Appointment/ Reappointment/Resignation of Directors CORPORATE OVERVIEW Dr. Meenaskhi Gopinath, Director is retiring by the ensuing Annual General Meeting. Institutions Placement(s) rotation and has expressed her intention not to seek Brief resume of Mr. Kartik Bharat Ram, Director Procedure for Postal Ballot In compliance with re-appointment. Additional Shareholder Information proposed to be re-appointed is given in the Notice of Listing Regulations and Sections 108, 110 and other 50th Annual General Meeting th Mr. Arun Bharat Ram has expressed his intention to the 50 Annual General Meeting. applicable provisions of the Companies Act, 2013, Day: Tuesday step down as Executive Chairman and Director of read with the related Rules, and in accordance Date: August 31, 2021 Means of Communication with Shareholders with the guidelines prescribed by the Ministry of the Company from the closing of business hours on Time: 11.00 A.M. Corporate Affairs for holding general meetings/ March 31, 2022. Quarterly and annual results of SRF are published conducting postal ballot process through e-voting Venue: The Company is conducting meeting through Mr. Arun Bharat Ram joined the Board of the Company in two major national dailies, generally Business vide General Circular Nos. 14/2020 dated April 08, VC / OAVM pursuant to the MCA Circulars in 1975 and has been instrumental to the spectacular Standard / Financial Express (in English) and Jansatta 2020 and 17/2020 dated April 13, 2020 in view dated January 13, 2021 read together with success of the Company and the Group over the last (in Hindi). In addition, these results are posted on of COVID-19 pandemic, the Company provided Circulars dated April 08, 2020, April 13, five decades. Considering his tremendous experience, the website of the Company, www.srf.com. The electronic voting facility to all its members, to 2020 and May 05, 2020 and deemed venue it would be in the interest of the Company to website also contains other information regarding SRF enable them to cast their votes electronically. The for meeting will be Registered Office: The continue to benefit from his rich experience, valuable available in the public domain. Company has availed E-voting facility offered by Galleria, DLF Mayur Vihar, Unit No. 236 & KFin Technologies Private Limited (R&T Agent of nd knowledge and wisdom from time to time in a role of 237, 2 Floor, Mayur Place, Mayur Vihar SRF communicates with its institutional shareholders the Company) for conducting e-voting by members the mentor to the Board of Directors. Phase I Extn, Delhi – 110091 For details through analysts briefing and individual discussions of the Company and as permissible under the Act, please refer to the Notice of this AGM. STATUTORY REPORTS In light of the above and in recognition of his services, between the fund managers and the management notices to the shareholders were sent through e-mail whose e-mail ids were registered with Financial Year the Board at its meeting held on 28 July, 2021, on the team. The presentations made to analysts and funds depository participants and Registrar and Transfer 1 April to 31 March recommendation of Nomination and Remuneration managers are posted on the Company’s website. Committee and with approval by the Audit Committee Agent. The Company has also provided option Tentative Financial Calendar for Results, 2021-22 for e-voting to those shareholders, who held recommend to the shareholders to confer upon Mr. General body meetings First Quarter Last week of July 2021 shares in Physical form. In compliance with the Last three Annual General Body Meetings Second Quarter Last week of October 2021 Arun Bharat Ram, the status and title of Chairman requirements of the MCA Circulars, hard copy Third Quarter First week of February 2022 Emeritus of the Company for a term of five years with The details of the last three AGMs are given in of Postal Ballot Notice along with Postal Ballot Fourth Quarter and effect from 1 April 2022. Table 14. Forms and pre-paid business envelope were not Annual Second week of May 2022 Table 14 : Last three AGMs of the Company sent to the shareholders for this Postal Ballot and shareholders were requested to communicate Interim Dividend Payment Date Year Location Date Time No. of Special their assent/dissent through the remote e-voting Two interim dividends of ` 5 (50 per cent) and ` 19 Resolutions Passed system only. The Company also published a notice in per share (190 per cent) on the paid up capital of the 2017-18 Laxmipat Singhania Auditorium, August 07, 2018 11.00 A.M. 7 the newspaper declaring the details of completion of Company absorbing ` 141.31 Crores approx. were paid PHD House, 4/2, Siri Institutional dispatch and other requirements and procedure for on August 28, 2020 and February 19, 2021 respectively. Area, August Kranti Marg, New registration of the email address as mandated under the Act and applicable Rules and recent circulars. Details of Utilisation of Funds raised through Delhi-110016 Same as Above Qualified Institutions Placement (QIP) 2018-19 Laxmipat Singhania Auditorium, August 05, 2019 3.30 P.M. 2

Voting rights were reckoned on the paid-up value of During the year 2020-21, the Company allotted FINANCIAL STATEMENTS PHD House, 4/2, Siri Institutional the shares registered in the names of the members 1764705 equity shares through Qualified Institutional Area, August Kranti Marg, New as on the cut-off date. Members were entitled to Placement(QIP) at an issue price of ` 4250 per equity Delhi-110016 Same as Above exercise their votes by electronic mode only and were share (including a premium of ` 4240 per equity 2019-20 Video Conferencing. August 17, 2020 11.00 A.M. 2 requested to vote before close of business hours on share) aggregating to ` 750 crore on October 17, Deemed Venue- The Galleria, DLF the last date of e-voting. The scrutinizer submitted 2020. The issue was made in accordance with the Mayur Vihar, Unit No. 236 & 237, his report to Mr. Rajat Lakhanpal, VP (Corporate SEBI (Issue of Capital and Disclosure Requirements) Compliance) & Company Secretary (who was duly 2nd Floor, Mayur Place, Mayur Vihar Regulations 2018 as amended and Sections 42 and 62 authorised by the Chairman in this regard), after the Phase I Extn, Delhi – 110091 of the Companies Act 2013 as amended including the completion of scrutiny, the results of the voting by rules made thereunder. postal ballot were then announced by him. The results Postal Ballot were also displayed on the website of the Company, Out of the proceeds of ` 750 Crores raised under During the year the Company had passed Special Resolution for approval for raising of funds by issuance of www.srf.com, besides being communicated to the Qualified Institutional Placement of the Company, equity shares through Qualified Institutions Placement(s) as per following details : stock exchanges, depositories and registrar and share ` 738.01 Crores were utilised for repayment of outstanding borrowings and ` 11.99 Crores were Date of Postal Ballot Notice : August 31, 2020 Voting period : September 09, 2020 to October 08, 2020 transfer agent. The date of passing of the resolutions was 08.10.2020 i.e. last date of voting and date of utilized for Incidental expenses in relation to QIP, as Date of approval : October 08, 2020 Date of declaration of result : October 09, 2020 declaration of the results was 09.10.2020. per Objects of the Issue.

146 Annual Report 2020-21 147 Details of Total fees paid to Statutory Auditors and all entities in the network firm/network Stock Market Data entity of which the statutory auditor is a part Table 15 gives the monthly high and low quotations as well as the volume of shares traded at BSE and NSE B S R & Co. LLP, Chartered Accountant who are the Statutory Auditors of the Company are a part of B S R during 2020-21. & Affiliates network. During financial year 2020-21, total fees paid by the Company and its subsidiaries on a Table 15: Monthly Highs and Lows and Volumes Traded at the BSE and NSE during 2020-21 consolidated basis to B S R & Co. LLP, Chartered Accountant and all entities forming part of B S R & Affiliates CORPORATE OVERVIEW network is given below - BSE NSE Name of Name of Entity forming part Details of remuneration Amount Month Highest Price Lowest Price Volume Highest Price Lowest Price Volume Company of B S R & Affiliates network (in Crores) (`) (`) (No.) (`) (`) (No.) - Audit fees 0.65 Apr-20 3770 2565.8 2,53,449 3772 3718.75 63,71,332 - For limited review of unaudited 0.54 financial results May-20 3728.3 3310 1,37,007 3729 3306 39,71,986 - For Corporate governance, 0.07 B S R & Co. LLP, Jun-20 3,849.70 3,517.10 3,49,259 3844.5 3511.8 63,28,595 SRF Limited consolidated financial Chartered Accountant statements and other certificates Jul-20 4,042.25 3,586.00 3,48,292 4043.55 3585 65,89,662 - For tax audit 0.08 Aug-20 4,437.00 3,775.00 3,19,852 4439.15 3785 74,41,830 - Reimbursement of out of pocket 0.08 Sep-20 4,475.00 3,996.20 1,84,181 4475 3993.6 56,15,510 expenses Total 1.42 Oct-20 4,555.25 4,090.05 1,37,905 4557.3 4093 49,23,658 Nov-20 5,365.00 4,334.50 2,12,178 5367.2 4334.15 69,06,784 Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition STATUTORY REPORTS and Redressal) Act, 2013 for the year 2020-21 Dec-20 5,640.00 5,067.35 1,48,377 5643.75 5066.35 39,66,463 No. of complaints filed during the financial year 0 Jan-21 6,075.00 5,239.90 2,11,551 6070.5 5240 44,18,996 No. of complaints disposed off during the financial year 0 Feb-21 5,840.35 5,288.70 1,66,063 5842.5 5285.4 35,58,309 No. of complaints pending as on the end of the financial year 0 Mar-21 5,815.40 5,133.15 1,58,375 5820.5 5131.05 27,49,711 List of Credit Ratings Instrument Rating Agency Rating Outlook Chart 1: Share prices of Nifty versus SRF Limited for the year ended March 31 2021 Fund Based and Non-Fund Based Limits India Ratings IND AA+/Stable/IND A1+ Stable Fund Based and Non-Fund Based Limits CRISIL CRISIL AA+/Stable/ CRISIL A1+ Stable Long Term Loans India Ratings IND AA+/Stable Stable SRF VS. NIFTY Long Term Loans CRISIL CRISIL AA+/Stable Stable Commercial Papers India Ratings IND A1+ Stable 250.00 Commercial Papers CRISIL CRISIL A1+ Stable Non-Convertible Debentures CRISIL CRISIL AA+/Stable Stable 200.00 150.00 During the year under review there is no revision in Credit Rating. FINANCIAL STATEMENTS 100.00 Listing on Stock Exchanges in India 50.00 SRF’s shares are listed on the BSE and the NSE and debentures are listed on NSE. The Company has paid the listing fee to both BSE and NSE for the year 2021-22. The Stock Codes are: - Stock Exchanges Equity Shares Debentures April-20 May-20 June-20 July-20 BSE Limited 503806 March-21 August-20 October-20 January-21 February-21 25th Floor, P.J. Towers Dalal Street, September-20 November-20December-20 Mumbai 400 001 National Stock Exchange of India Limited SRF SRF 22 Nifty Close SRF Close “Exchange Plaza” Bandra-Kurla Complex, Bandra (E) Note: Both Nifty and SRF share prices are indexed to 100 as on April 01, 2020 Mumbai 400 051

148 Annual Report 2020-21 149 Registrar and Share Transfer Agents • DP processes the DRF and generates a unique Table 17: Pattern of Shareholding by Ownership as on March 31, 2021 M/s KFin Technologies Private Limited (Formerly De-materialisation Request No Sl. Category No. of Shares % Equity known as Karvy Fintech Private Limited), Hyderabad • DP forwards the DRF and share certificates to No. are the Registrar and Share Transfer Agent of the the Registrar and Share Transfer Agent (RTA) Company for handling both electronic and physical 1 PROMOTER COMPANIES 3,00,49,000 50.72 CORPORATE OVERVIEW shares. • RTA after processing the DRF confirms or rejects 2 FOREIGN PORTFOLIO - CORP 1,09,06,315 18.41 the request to Depositories 3 RESIDENT INDIVIDUALS 64,88,926 10.95 Share Transfer System • If confirmed by the RTA, depositories give As per SEBI Notification No. SEBI/LAD-NRO/ 4 MUTUAL FUNDS 64,65,559 10.91 the credit to shareholder in his /her account GN/2018/24 dated June 08, 2018 and further 5 Qualified Institutional Buyer 29,42,306 4.97 maintained with DP amendment vide Notification No. SEBI/LAD-NRO/ 6 NON RESIDENT INDIAN NON REPATRIABLE 7,11,303 1.20 GN/2018/49 dated November 30, 2018 request for This process takes approximately 10-15 days from the 7 BODIES CORPORATES 4,88,845 0.83 effecting transfer of securities (except in case of date of receipt of DRF. transmission or transposition of securities) shall not 8 I E P F 3,87,408 0.65 be processed from April 01, 2019 unless the securities As the trading in the shares of the Company can be 9 H U F 1,95,552 0.33 done only in the electronic form, it is advisable that are held in dematerialized for with the depositories. In 10 ALTERNATIVE INVESTMENT FUND 1,32,692 0.22 view of this and to eliminate all risks associated with the shareholders who have the shares in physical 11 NON RESIDENT INDIANS 1,14,752 0.19 physical shares and for ease of portfolio management, form get their shares dematerialised. members holding shares in physical form are 12 INSURANCE COMPANIES 1,01,532 0.17 Dematerialisation of Shares & Liquidity requested to consider converting their holdings to 13 CLEARING MEMBERS 78,976 0.13 As on March 31, 2021, out of 5,92,45,205 Equity

dematerialized form. STATUTORY REPORTS Shares of ` 10/- each, 5,84,37,368 shares (98.64%) 14 EMPLOYEES 75,038 0.13 Depository System were held in electronic form by 67276 shareholders 15 BANKS 41,067 0.07 Shareholders can trade in the Company’s shares only and balance 8,07,837 shares (1.36%) were held by 16 PROMOTERS 27,500 0.05 8,664 shareholders. in electronic form. The process for getting the shares 17 FOREIGN INSTITUTIONAL INVESTORS 14,904 0.03 de-materialised is as follows: Distribution of Shareholding as on March 31, 2021@ 18 DIRECTORS 13,985 0.02 • Shareholder submits the shares certificate along Table 16 gives the distribution of shares according 19 NBFC 3,517 0.01 with De-materialisation Request Form (DRF) to to shareholding class, while Table 17 gives the 20 UNIT TRUST OF INDIA 3,503 0.01 Depository Participant (DP) distribution of shareholding by ownership. 21 TRUSTS 2,525 0.00 Table 16: Pattern of Shareholding by Share Class as on March 31, 2021 Total 5,92,45,205 100.00

No. of Equity Shares held No. of % of No. of shares % of @Including holdings by NSDL and CDSL shareholders Shareholders Shareholding Outstanding GDRs/ ADRs/ Warrants or Any Convertible Instruments, Their Conversion Dates and Upto 5000 73,497 96.68 39,68,209 6.70 Likely Impact on Equity 5001- 10000 1,371 1.80 9,92,566 1.68

As on March 31, 2021, there were no outstanding GDRs/ ADRs/ Warrants or any convertible instruments FINANCIAL STATEMENTS 10001- 20000 507 0.67 7,42,151 1.25 20001- 30000 173 0.23 4,39,912 0.74 Commodity price risk or foreign exchange risk and hedging activities 30001- 40000 87 0.11 3,11,054 0.53 During the year 2020-21, the Company had managed the foreign exchange risk and hedged to the extent considered necessary. The Company enters into forward contracts for hedging foreign exchange exposures 40001- 50000 61 0.08 2,79,230 0.47 against exports and imports. There is no direct hedgeable commodity risk that the Company has on any of its 50001- 100000 117 0.15 8,46,762 1.43 raw materials or finished products. Thus, the Risk Management Policy covers only net forex exposure on account of its imports and exports. 100001& Above 207 0.27 5,16,65,321 87.21 Total 76,020 100.00 5,92,45,205 100.00 The details of foreign currency exposure are disclosed in the Note No. 38 to the Financial Statements.

150 Annual Report 2020-21 151 Plant Locations Business Plant Locations CERTIFICATE OF NON DISQUALIFICATION OF DIRECTORS Technical Textiles Business • Manali Industrial Area, Manali, Chennai-600068, Tamil Nadu (Pursuant to regulation 34(3) and schedule V Para C clause (10)(i) of the SEBI • Industrial Area, Malanpur, Distt. Bhind-477116, MP (Listing Obligations and Disclosure Requirements) Regulations, 2015) CORPORATE OVERVIEW • Plot No. 1, SIPCOT Industrial Area Complex, Gummidipoondi, Dist. Thiruvallur– 601 201, Tamil Nadu To, • Viralimalai, Distt. Pudukottai - 621 316, Tamil Nadu The Members, • Plot No. 12, Rampura, Ramnagar Road, Kashipur, Dist. Udham Singh SRF LIMITED Nagar-244713, Uttarakhand The Galleria, DLF Mayur Vihar, Unit No. 236 & 237 Chemicals and Other • Village & P.O. Jhiwana, Tehsil Tijara, Distt. Alwar - 301 018, Rajasthan 2nd Floor, Mayur Vihar Phase-1 New Delhi-110091 Business • DII / I GIDC. PCPIR,GIDC Phase II, Tal Vagra, Vill. Dahej, Dist Bharuch-392130, Gujarat I/We have examined the relevant registers, records, forms, returns and disclosures received from the Directors Packaging Films Business • Plot No. 12, Rampura, Ramnagar Road, Kashipur, Dist. Udham Singh of SRF LIMITED having CIN:L18101DL1970PLC005197 and having registered office at The Galleria, DLF Mayur Nagar-244713, Uttarakhand Vihar, Unit No. 236 & 237 2nd Floor, Mayur Vihar Phase-1 New Delhi-110091 (hereafter referred to as “the • Plot No. C 1-8, C 21-30, Sector 3, Indore Special Economic Zone, Company”), in accordance with Regulations 34(3)read with Scheduled V Para-C Sub clause 10(i) of the Securities Pitam Pur, Dist. Dhar-454775, Indore, MP Exchange Board of India (Listing Obligations and Disclosure Requirements, 2015. In our opinion and to the best of our information and according to the verifications (including Directors Identification Number (DIN) status • Plot No. 675, Industrial Area, Sector 3, Village Bagdoon, Pithampur, at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company & Dist. Dhar – 454775, Indore MP its officers, We hereby certify that none of the Directors of the Board of the Company as stated below for the • Plot No 3-A, Industrial Growth Sector Kheda, Kheda, Dist-Dhar, financial year ending March 31, 2021 have been debarred or disqualified from being appointed or continuing as STATUTORY REPORTS Madhya Pradesh, 454775 Directors of Companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs or nay such other Statutory Authority. Address for Correspondence Registered Office Corporate Office Registrar & Share Debenture Trustee Ensuring the eligibility of for the appointment/ continuity of every Director on the Board is the responsibility of the Transfer Agent management of the Company. Our responsibility is to express an opinion on these based on our verification. This The Galleria, DLF Mayur Block – C, Sector –45 KFin Technologies Vistra ITCL (India) Limited certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness Vihar, Unit No.236 & 237, Gurugram 122 003 Private Limited The IL&FS Financial Centre with which the management has conducted the affairs of the Company. Second Floor, Mayur Place, Tel No.: Karvy Selenium Tower B, Plot C-22, G Block Mayur Vihar, Phase-I Extn., (+ 91-124) 4354400 Plot No 31 & 32 Gachibowli, Bandra Kurla Complex, For S. Aggarwal & Associates Delhi - 110091 Fax No.: Financial District, Bandra East, Mumbai 400 051 (Company Secretaries) Tel No.: (+ 91-124) 4354500 Nanakramguda, Website: www.vistra.com (+ 91-11) 49482870 E-mail : [email protected] Serilingampally Contact Person: Supratik Dasgupta, CS Sanjay Aggarwal Fax No.: Hyderabad – 500032 Sr. Relationship Manager,Corporate Proprietor (+ 91-11) 49482900 Trust & Funds Capital Market Date : April 21, 2021 C.O.P No. 8989, Membership No. 6158 E-mail : [email protected] E-mail : Email: [email protected] Place: New Delhi UDIN: F006158C000146419 [email protected] Tel No. : (+91-11) 46577591 FINANCIAL STATEMENTS Website: https://www.kfintech.com Toll Free No. 1- 800-309-4001

Declaration Regarding Code of Conduct I, Ashish Bharat Ram, Managing Director of SRF Limited hereby declare that all Board Members and Senior Management personnel have affirmed compliance with the Code of Conduct for Board and Senior Management Personnel for the year ended March 31, 2021.

Ashish Bharat Ram Date: May 5, 2021 Managing Director Place: New Delhi

152 Annual Report 2020-21 153 The key audit matter How the matter was addressed in our audit INDEPENDENT AUDITORS’ REPORT Further, the Company has been using hedge • Performed sample tests of valuation and relationship designation as per criteria set out in accounting of these transactions. In doing so relevant Indian accounting standards. we have involved valuation specialists to assist

us in carrying out aforesaid procedure, as CORPORATE OVERVIEW Accounting thereof and related presentation To the Members of SRF Limited Basis for Opinion considered necessary. We conducted our audit in accordance with the and disclosures of these transactions require Report on the Audit of the Standalone Standards on Auditing (SAs) specified under section significant judgement. • Assessed the adequacy of disclosures Financial Statements 143(10) of the Act. Our responsibilities under those SAs Given the significant level of judgement and estimation in the financial statements in respect involved and the quantitative significance, we have of both non-derivative and derivative Opinion are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements determined this to be a key audit matter. financial instruments. We have audited the standalone financial statements section of our report. We are independent of the of SRF Limited (“the Company”), which comprise the Company in accordance with the Code of Ethics standalone balance sheet as at 31 March 2021, and Other Information assets of the Company and for preventing and issued by the Institute of Chartered Accountants of the standalone statement of profit and loss (including The Company’s management and Board of Directors detecting frauds and other irregularities; selection India together with the ethical requirements that other comprehensive income), standalone statement are responsible for the other information. The other and application of appropriate accounting policies; are relevant to our audit of the standalone financial of changes in equity and standalone statement of information comprises the information included in the making judgments and estimates that are reasonable statements under the provisions of the Act and the cash flows for the year then ended, and notes to Company’s annual report, but does not include the and prudent; and design, implementation and Rules thereunder, and we have fulfilled our other the standalone financial statements, including a financial statements and our auditors’ report thereon. maintenance of adequate internal financial controls ethical responsibilities in accordance with these summary of the significant accounting policies and that were operating effectively for ensuring accuracy requirements and the Code of Ethics. We believe that Our opinion on the standalone financial statements and completeness of the accounting records, relevant other explanatory information (hereinafter referred to STATUTORY REPORTS the audit evidence we have obtained is sufficient and does not cover the other information and we do not to the preparation and presentation of the standalone as “standalone financial statements”). appropriate to provide a basis for our opinion on the express any form of assurance conclusion thereon. financial statements that give a true and fair view and Standalone financial statements. are free from material misstatement, whether due to In our opinion and to the best of our information In connection with our audit of the standalone fraud or error. and according to the explanations given to us, the Key Audit Matters financial statements, our responsibility is to read the aforesaid standalone financial statements give the Key audit matters are those matters that, in our other information and, in doing so, consider whether In preparing the standalone financial statements, information required by the Companies Act, 2013 professional judgment, were of most significance in the other information is materially inconsistent with the Management and Board of Directors are (“Act”) in the manner so required and give a true and our audit of the standalone financial statements of the standalone financial statements or our knowledge responsible for assessing the Company’s ability fair view in conformity with the accounting principles the current period. These matters were addressed in obtained in the audit or otherwise appears to be to continue as a going concern, disclosing, as generally accepted in India, of the state of affairs of the context of our audit of the standalone financial materially misstated. If, based on the work we have applicable, matters related to going concern and the Company as at 31 March 2021, and profit and statements as a whole, and in forming our opinion performed, we conclude that there is a material using the going concern basis of accounting unless other comprehensive income, changes in equity and thereon, and we do not provide a separate opinion misstatement of this other information, we are the Board of Directors either intends to liquidate its cash flows for the year ended on that date. on these matters. required to report that fact. We have nothing to report the Company or to cease operations, or has no in this regard. realistic alternative but to do so. The key audit matter How the matter was addressed in our audit Management’s and Board of Directors’ The Board of Directors is also responsible for

Accounting for derivatives In view of the significance of the matter, we FINANCIAL STATEMENTS Responsibility for the Standalone overseeing the Company’s financial reporting process. An important element of Company’s fund-raising applied the following audit procedures in this area, Financial Statements strategy involves various types of borrowings among others, to obtain sufficient appropriate The Company’s Management and Board of Directors Auditor’s Responsibilities for the Audit of including foreign currency denominated borrowings audit evidence: are responsible for the matters stated in section the Standalone Financial Statements and a combination of fixed and floating interest rates, • Tested the design, implementation and operating 134(5) of the Act with respect to the preparation Our objectives are to obtain reasonable assurance and also foreign currency denominated loans and effectiveness of controls over the Company’s of these standalone financial statements that give a about whether the standalone financial statements as advances to other parties. The Company’s operating treasury and other related functions which true and fair view of the state of affairs, profit/loss a whole are free from material misstatement, whether activities are also exposed to significant foreign directly impact the relevant account balances and other comprehensive income, changes in equity due to fraud or error, and to issue an auditor’s report exchange risk (refer to note 38 of the standalone and transactions, including hedge accounting. and cash flows of the Company in accordance that includes our opinion. Reasonable assurance financial statements). with the accounting principles generally accepted is a high level of assurance, but is not a guarantee • For selected samples via statistical sampling, The Company uses derivative financial instruments in India, including the Indian Accounting Standards that an audit conducted in accordance with SAs will obtained external confirmations from to mitigate foreign currency risk and interest rate risk (Ind AS) specified under section 133 of the Act. always detect a material misstatement when it exists. counterparties of the year end positions as well primarily through foreign currency forward exchange This responsibility also includes maintenance of Misstatements can arise from fraud or error and are as agreed to original agreements. contracts and interest rate swaps. adequate accounting records in accordance with considered material if, individually or in the aggregate, the provisions of the Act for safeguarding of the they could reasonably be expected to influence the

154 Annual Report 2020-21 155 economic decisions of users taken on the basis of cause the Company to cease to continue as a a) we have sought and obtained all the ii. The Company has made provision, as required these standalone financial statements. going concern; and information and explanations which to the under the applicable law or accounting best of our knowledge and belief were standards, for material foreseeable losses, As part of an audit in accordance with SAs, we exercise • evaluate the overall presentation, structure and necessary for the purposes of our audit. if any, on long-term contracts including professional judgment and maintain professional content of the standalone financial statements, derivative contracts- Refer Note 38 to the b) in our opinion, proper books of account CORPORATE OVERVIEW skepticism throughout the audit. We also: including the disclosures, and whether the standalone financial statements ; as required by law have been kept by the standalone financial statements represent the Company so far as it appears from our iii. There has been no delay in transferring • identify and assess the risks of material underlying transactions and events in a manner examination of those books; amounts, required to be transferred, to the misstatement of the standalone financial that achieves fair presentation. Investor Education and Protection Fund statements, whether due to fraud or error, c) the standalone balance sheet, the by the Company. design and perform audit procedures responsive We communicate with those charged with standalone statement of profit and loss to those risks, and obtain audit evidence that governance regarding, among other matters, (including other comprehensive income), iv. The disclosures in the standalone financial is sufficient and appropriate to provide a basis the planned scope and timing of the audit the standalone statement of changes in statements regarding holdings as well as for our opinion. The risk of not detecting a and significant audit findings, including any equity and the standalone statement of dealings in specified bank notes during material misstatement resulting from fraud significant deficiencies in internal control that we cash flows dealt with by this Report are in the period from 8 November 2016 to 30 is higher than for one resulting from error, as identify during our audit. agreement with the books of account. December 2016 have not been made in fraud may involve collusion, forgery, intentional these financial statements since they do d) in our opinion, the aforesaid standalone omissions, misrepresentations, or the override of We also provide those charged with governance not pertain to the financial year ended financial statements comply with the Ind AS internal controls. with a statement that we have complied 31 March 2021. with relevant ethical requirements regarding specified under section 133 of the Act.

• obtain an understanding of internal control independence, and to communicate with e) on the basis of the written representations (C) With respect to the matter to be included in the STATUTORY REPORTS relevant to the audit in order to design them all relationships and other matters received from the directors as on 31 Auditors’ Report under section 197(16): that may reasonably be thought to bear on audit procedures that are appropriate in the March 2021 taken on record by the In our opinion and according to the information our independence, and where applicable, circumstances. Under section 143(3)(i) of the Board of Directors, none of the directors and explanations given to us, the remuneration related safeguards. Act, we are also responsible for expressing our is disqualified as on 31 March 2021 from paid by the company to its directors during the opinion on whether the company has adequate being appointed as a director in terms of current year is in accordance with the provisions From the matters communicated with those internal financial controls with reference to Section 164(2) of the Act. of Section 197 of the Act. The remuneration paid charged with governance, we determine those financial statements in place and the operating to any director is not in excess of the limit laid matters that were of most significance in the f) With respect to the adequacy of the internal effectiveness of such controls. down under Section 197 of the Act. The Ministry audit of the standalone financial statements of financial controls with reference to financial statements of the Company and the of Corporate Affairs has not prescribed other • evaluate the appropriateness of accounting the current period and are therefore the key operating effectiveness of such controls, details under Section 197(16) which are required policies used and the reasonableness of audit matters. We describe these matters in refer to our separate Report in “Annexure B”. to be commented upon by us. accounting estimates and related disclosures in our auditors’ report unless law or regulation the standalone financial statements made by the precludes public disclosure about the matter (B) With respect to the other matters to be included in For B S R & Co. LLP Management and Board of Directors. or when, in extremely rare circumstances, we determine that a matter should not be the Auditors’ Report in accordance with Rule 11 of Chartered Accountants the Companies (Audit and Auditors) Rules, 2014, • conclude on the appropriateness of the communicated in our report because the adverse ICAI Firm Registration No.: 101248W/W-100022 FINANCIAL STATEMENTS in our opinion and to the best of our information Management and Board of Directors use of the consequences of doing so would reasonably be and according to the explanations given to us: going concern basis of accounting and, based expected to outweigh the public interest benefits of such communication. on the audit evidence obtained, whether a i. The Company has disclosed the impact of Kaushal Kishore material uncertainty exists related to events or pending litigations as at 31 March 2021 Partner conditions that may cast significant doubt on the Report on Other Legal and Regulatory on its financial position in its standalone Requirements Company’s ability to continue as a going concern. financial statements - Refer Note 31 to the Place: Delhi Membership No.: 090075 1. As required by the Companies (Auditors’ Report) If we conclude that a material uncertainty standalone financial statements; Date: 21 May 2021 UDIN: 21090075AAAAAJ3973 Order, 2016 (“the Order”) issued by the Central exists, we are required to draw attention in Government in terms of section 143 (11) of the our auditor’s report to the related disclosures Act, we give in the “Annexure A” a statement on in the standalone financial statements or, if the matters specified in paragraphs 3 and 4 of such disclosures are inadequate, to modify our the Order, to the extent applicable. opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s 2. (A) As required by Section 143(3) of the Act, report. However, future events or conditions may we report that:

156 Annual Report 2020-21 157 under Section 189 of the Act are not, records under Section 148 of the Act, and are Annexure A to the Independent Auditors’ report on the standalone prima facie, prejudicial to the interest of the opinion that prima facie, the prescribed of the Company; accounts and records have been made and financial statements of SRF Limited for the year ended 31 March 2021 maintained. However, we have not made a b) In case of the loans granted to the aforesaid detailed examination of the cost records. company, listed in the register maintained CORPORATE OVERVIEW Statement on matters specified in paragraphs and equipment) are verified, in a phased under Section 189 of the Act, the schedule (vii) According to the information and explanations 3 and 4 of the Companies (Auditors’ Report) manner, over a period of three years. of repayment of the principal and payment given to us, in respect of statutory dues: Order, 2016 (“the Order”) issued by the In our opinion, this periodicity of physical of interest has been stipulated in the loan Central Government in terms of section 143 verification is reasonable having regard to agreement and, as per the terms stipulated, (a) According to the information and (11) of the Act the size of the Company and the nature of its no amount was due during the current year; explanations given to us and on the basis assets. In accordance with this programme, of our examination of the records of the c) There are no overdue amounts in respect of (Referred to in paragraph 1 under ‘Report on certain assets have been physically verified Company, amounts deducted / accrued Other Legal and Regulatory Requirements’ the loans granted to the aforesaid company by the Management during the current year. in the books of account in respect of section of our report of even date) As informed to us, no material discrepancies listed in the register maintained under Section 189 of the Act. Accordingly, para 3 undisputed statutory dues including were noticed on such verification. Provident fund, Employees’ state insurance, (i) a) According to the information and (iii) (c) of the Order is not applicable. Income-tax, Sales-tax, Goods and Services explanations given to us, the Company c) According to the information and According to the information and Tax (“GST”), Service tax, Duty of customs, has maintained proper records showing full explanations given to us and the records explanations given to us, the Company Duty of excise, Value added tax, Cess and particulars, including quantitative details examined by us and based on the has not granted any loans, secured other material statutory dues, as applicable, and situation of fixed assets (property, plant examination of the registered sale deed or unsecured, to firms, limited liability have generally been regularly deposited and equipment). / transfer deed / conveyance deed/ lease STATUTORY REPORTS partnerships or other parties covered in during the year by the Company with the deed provided to us, we report that, the the register maintained under section appropriate authorities. b) According to the information and title deeds, comprising all the immovable 189 of the Act. explanations given to us, the Company has properties of land and buildings which are According to the information and a regular programme of physical verification freehold/ leasehold, are held in the name of (iv) In our opinion and according to the information explanations given to us, no undisputed of its property, plant and equipment by the Company as at the balance sheet date, and explanations given to us, the Company has amounts payable in respect of Provident which all fixed assets (property, plant except the following: complied with the provisions of Sections 185 and fund, Employees’ state insurance, 186 of the Companies Act, 2013 in respect of Income-tax, Sales-tax, GST, Service tax, Particulars Gross Block Net Block Remarks grant of loans, making investments and providing Duty of customs, Duty of excise, Value of the land and 31 March 2021 31 March 2021 guarantees and securities. added tax, Cess and other material statutory building (` in crores) (` in crores) (v) According to the information and explanations dues, as applicable, were in arrears as at 31 Land at 1.21 1.21 Out of the Industrial Free hold land given to us, the Company has not accepted any March 2021 for a period of more than six Gummudipoondi measuring 32.41 acres at the Company’s deposits from the public. Accordingly, paragraph months from the date they became payable. plant in Gummidipoondi, the Company 3(v) of the Order is not applicable. (b) According to the information and does not have clear title to 2.43 acres. (vi) The Central Government has prescribed the explanations given to us, there are no Land at 108.55 108.55 The execution of lease deed of land in maintenance of cost records under sub-section dues in respect of Income-tax, Sales-tax, Bharuch, Dahej (Carried cost) (Carried cost) respect of 1,149,550 square meters of FINANCIAL STATEMENTS (1) of section 148 of the Act for activities Service tax, Duty of custom, Duty of excise, leasehold land allotted to the Company carried out by the Company. We have broadly GST and Value added tax, as applicable, by Gujarat Industrial Development reviewed the books of account maintained by which have not been deposited with the Corporation at Dahej, Gujarat is pending. the Company pursuant to the Rules made by the appropriate authorities on account of any Central Government for the maintenance of cost dispute except for the following: (ii) The inventories, except goods in transit, have (iii) According to the information and explanations been physically verified by the management given to us, the Company has granted unsecured Name of Nature Forum where Period to which the Amount* during the year. In our opinion, the frequency loans to a company covered in the register the Statute of the Dues Dispute is amount relates (various (` Crores) of such verification is reasonable. According to maintained under Section 189 of the Companies pending years covering the period) Act, 2013 (‘the Act’): the information and explanations given to us, the Central Excise Excise Duty Customs, Excise & Service Tax 2009-2015 14.11 discrepancies noticed on verification between a) In our opinion, the rate of interest and Laws Appellate Tribunal (CESTAT) the physical stocks and the book records were other terms and conditions on which the Upto Commissioner (Appeals) 1993-2002 9.32 loans have been granted to the aforesaid not material and have been properly dealt with Service Tax Laws Service Tax Upto Commissioner (Appeals) 2006-2015 1.58 in the books of account. company listed in the register maintained

158 Annual Report 2020-21 159 Name of Nature Forum where Period to which the Amount* (xi) According to the information and explanations been utilized for repayment of borrowings. the Statute of the Dues Dispute is amount relates (various (` Crores) given to us and on the basis of our examination During the year, the Company did not make pending years covering the period) of the records of the Company, the managerial preferential allotment/private placement of fully/ remuneration has been paid or provided by the Service Tax Laws Service Tax Customs, Excise & Service Tax 2008-2012 0.98 partly convertible debentures. Company in accordance with the provisions Appellate Tribunal (CESTAT) CORPORATE OVERVIEW of section 197 read with Schedule V to the (xv) According to the information and explanations Customs Laws Customs Duty Supreme Court 2012-2013 1.27 Companies Act, 2013. given to us, during the year the Company has High Court 2016-2019 0.27 not entered into any non-cash transactions with (xii) According to the information and explanations Upto Commissioner (Appeals) 2002 0.17 its directors or persons connected with them. given to us, the Company is not a Nidhi Company. Sales Tax Laws Sales Tax High Court 2015-2016 0.34 Accordingly, paragraph 3 (xv) of the Order and Accordingly, paragraph 3(xii) of the Order is Sales Tax Appellate Tribunal 1993-2017 5.34 not applicable. provisions of section 192 of the Companies Act, Upto Commissioner (Appeals) 1988-2017 8.02 2013 are not applicable. Income Tax Laws Income Tax Supreme Court Assessment year 1.13 (xiii) According to the information and explanations (‘AY’) 1989-1990 given to us and on the basis of our examination of (xvi) According to the information and explanations Upto Commissioner (Appeals) AY 2019-2020 0.66 the records of the Company, all transactions with given to us, the Company is not required to be registered under section 45-IA of the Reserve Dispute Resolution Panel (DRP) AY 2016-2017 4.04 the related parties are in compliance with Section 177 and 188 of the Act where applicable and the Bank of India Act, 1934. Goods & Goods & Upto Commissioner (Appeals) 2017-2019 0.28 details of such transactions have been disclosed Service tax Laws Services tax in the standalone financial statements as For B S R & Co. LLP

required by the applicable accounting standards. STATUTORY REPORTS The following matters, which have been excluded from the above table, have been decided in favour of the Chartered Accountants Company but the department has preferred appeals at higher levels. The details are given below: (xiv) According to the information and explanations Firm Registration No.: 101248W/W-100022 Name of Nature of Forum where Period to which the Amount given by the management, the Company has the Statute the dues Dispute is pending amount relates (various (` Crores)* complied with the provisions of section 42 of the years covering the period) Companies Act, 2013 in respect of the shares Kaushal Kishore Income Tax Laws Income Tax High Court AY 2000-2004 5.55 issued through Qualified Institutional Placement Partner Central Excise Laws Excise Duty High Court 1994-1995 1.18 (QIP) during the year. The proceeds from QIP Place: Delhi Membership No. 090075 Upto Commissioner (Appeals) 1989-1995 2.24 is ` 750 crores. The proceeds of the issue (net Date: 21 May 2021 UDIN: 21090075AAAAAJ3973 Custom Duty Custom Duty Upto Commissioner (Appeals) 2012-2013 0.01 of share issue expenses of ` 11.99 crores) have * The amounts disclosed are net of payments and include interest and penalties, wherever applicable.

Also refer to note 31(b)(ii) of the standalone financial explanations given to us and on the basis of our statements with regard to income tax demand raised examination of the records of the Company, during subsequent to year-end. the current year, the Company has raised ` 250 crores through private placement of non-convertible FINANCIAL STATEMENTS (viii) According to the information and explanations debentures. The proceeds of the issue have given to us, the Company has not defaulted in been utilized for repayment of borrowings. repayment of loans or borrowings to its bankers According to the information and explanations given or to any financial institutions and dues to by the management, the Company has not raised debenture holders. The Company did not have any money by way of initial public offer/further public offer (including debt instruments) during the any loans or borrowings from government year. Also refer to sub-para (xiv) below in respect of during the year. the Qualified Institutional Placement made by the Company during the year. (ix) According to the information and explanations given to us and on the basis of our examination (x) To the best of our knowledge and according to of the records of the Company, the term loans the information and explanations given to us, no have been applied by the Company during the material fraud by the Company or on the Company year for the purposes for which they were raised. by its officers or employees has been noticed or In our opinion and according to the information and reported during the course of our audit.

160 Annual Report 2020-21 161 that (1) pertain to the maintenance of records that, misstatements due to error or fraud may occur and Annexure B to the Independent Auditors’ report on the standalone in reasonable detail, accurately and fairly reflect the not be detected. Also, projections of any evaluation transactions and dispositions of the assets of the financial statements of SRF Limited for the year ended 31 March 2021 of the internal financial controls with reference to company; (2) provide reasonable assurance that financial statements to future periods are subject transactions are recorded as necessary to permit

to the risk that the internal financial controls with CORPORATE OVERVIEW Report on the internal financial controls with Auditors’ Responsibility preparation of financial statements in accordance reference to financial statements may become reference to the aforesaid standalone financial Our responsibility is to express an opinion on the with generally accepted accounting principles, and inadequate because of changes in conditions, or that receipts and expenditures of the company are statements under Clause (i) of Sub-section 3 of Company’s internal financial controls with reference to that the degree of compliance with the policies or being made only in accordance with authorisations of Section 143 of the Companies Act, 2013 financial statements based on our audit. We conducted procedures may deteriorate. our audit in accordance with the Guidance Note and management and directors of the company; and (3) (Referred to in paragraph 2(A)(f) under ‘Report the Standards on Auditing, prescribed under section provide reasonable assurance regarding prevention or on Other Legal and Regulatory Requirements’ 143(10) of the Act, to the extent applicable to an audit timely detection of unauthorised acquisition, use, or For B S R & Co. LLP section of our report of even date) of internal financial controls with reference to financial disposition of the company’s assets that could have a Chartered Accountants statements. Those Standards and the Guidance Note material effect on the financial statements. Opinion ICAI Firm Registration No.: 101248W/W-100022 require that we comply with ethical requirements We have audited the internal financial controls with and plan and perform the audit to obtain reasonable Inherent Limitations of Internal Financial reference to financial statements of SRF Limited (“the assurance about whether adequate internal financial controls with Reference to Financial Company”) as of 31 March 2021 in conjunction with Statements controls with reference to financial statements were Kaushal Kishore our audit of the standalone financial statements of the Because of the inherent limitations of internal established and maintained and whether such controls Partner Company for the year ended on that date. financial controls with reference to financial operated effectively in all material respects. Place: Delhi Membership No. 090075 statements, including the possibility of collusion or STATUTORY REPORTS In our opinion, the Company has, in all material improper management override of controls, material Date: 21 May 2021 UDIN: 21090075AAAAAJ3973 respects, adequate internal financial controls with Our audit involves performing procedures to obtain reference to financial statements and such internal audit evidence about the adequacy of the internal financial controls were operating effectively asat financial controls with reference to financial statements 31 March 2021, based on the internal financial and their operating effectiveness. Our audit of controls with reference to financial statements criteria internal financial controls with reference to financial established by the Company considering the essential statements included obtaining an understanding of components of internal control stated in the Guidance such internal financial controls, assessing the risk that Note on Audit of Internal Financial Controls Over a material weakness exists, and testing and evaluating Financial Reporting issued by the Institute of Chartered the design and operating effectiveness of internal Accountants of India (the “Guidance Note”). control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including Management’s Responsibility for Internal the assessment of the risks of material misstatement Financial Controls of the standalone financial statements, whether due The Company’s management and the Board of to fraud or error. Directors are responsible for establishing and maintaining internal financial controls based on the We believe that the audit evidence we have obtained FINANCIAL STATEMENTS internal financial controls with reference to financial is sufficient and appropriate to provide a basis for statements criteria established by the Company our audit opinion on the Company’s internal financial considering the essential components of internal control controls with reference to financial statements. stated in the Guidance Note. These responsibilities include the design, implementation and maintenance Meaning of Internal Financial controls of adequate internal financial controls that were with Reference to Financial Statements operating effectively for ensuring the orderly and A company’s internal financial controls with reference efficient conduct of its business, including adherence to financial statements is a process designed to to company’s policies, the safeguarding of its assets, provide reasonable assurance regarding the reliability the prevention and detection of frauds and errors, of financial reporting and the preparation of financial the accuracy and completeness of the accounting statements for external purposes in accordance with records, and the timely preparation of reliable financial generally accepted accounting principles. A company’s information, as required under the Companies Act, internal financial controls with reference to financial 2013 (hereinafter referred to as “the Act”). statements include those policies and procedures

162 Annual Report 2020-21 163 Balance Sheet Balance Sheet (Contd.) as at March 31, 2021 as at March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Particulars Note No. As at As at Particulars Note No. As at As at March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 ASSETS Current liabilities Non-current assets Financial liabilities Property, plant and equipment 2 5,568.33 5,303.64 (i) Borrowings 15 762.26 804.80 Right-of-use assets 37 216.76 227.58 (ii) Lease liabilities 37 13.80 13.71 Capital work-in-progress 436.13 345.88 (iii) Trade payables 18 Goodwill 3 0.62 0.62 (a) Total outstanding dues of micro enterprises and 33.37 30.36 Other intangible assets 4 109.88 116.46 small enterprises Financial assets (b) Total outstanding dues of creditors other than micro 1,163.12 927.08 (i) Investments 5 87.76 87.76 enterprises and small enterprises (ii) Loans 6 382.61 43.89 (iv) Other financial liabilities 19 499.66 891.72 (iii) Other financial assets 7 44.70 15.86 Other current liabilities 21 75.79 80.29 Non-current tax assets (net) 20 33.74 35.03 Provisions 16 7.00 5.64

Other non-current assets 8 173.36 27.96 Current tax liabilities (net) 20 9.73 9.75 STATUTORY REPORTS Total non - current assets 7,053.89 6,204.68 Total current liabilities 2,564.73 2,763.35 Current assets Total Liabilities 4,416.03 4,135.33 Inventories 9 1,286.70 1,110.32 TOTAL EQUITY AND LIABILITIES 10,711.30 8,819.58 Financial assets Summary of significant accounting policies 1B (i) Investments 5 412.52 198.50 See accompanying notes to the standalone 2 to 41 (ii) Trade receivables 10 1,012.00 768.71 financial statements (iii) Cash and cash equivalents 11 86.72 98.26 (iv) Bank balances other than above 12 143.71 9.03 As per our report attached For and on behalf of the Board of Directors For B S R & Co. LLP (v) Loans 6 283.67 8.41 Chartered Accountants (vi) Other financial assets 7 215.45 170.16 ICAI Firm registration no. Other current assets 8 216.64 251.51 101248W / W-100022 Total current assets 3,657.41 2,614.90 Kaushal Kishore Ashish Bharat Ram Kartik Bharat Ram TOTAL ASSETS 10,711.30 8,819.58 Partner Managing Director Deputy Managing Director Membership No.: 090075 DIN - 00671567 DIN - 00008557 EQUITY AND LIABILITIES Place : Delhi Place : Delhi Place : Delhi Equity Date : May 21, 2021 Date : May 05, 2021 Date : May 05, 2021 FINANCIAL STATEMENTS Equity share capital 13 60.26 58.50 Rahul Jain Bharti Gupta Ramola Rajat Lakhanpal Other equity 14 6,235.01 4,625.75 President & CFO Director Vice President Total equity 6,295.27 4,684.25 Place : Gurugram DIN - 00356188 (Corporate Compliance) Date : May 05, 2021 Place : Gurugram and Company Secretary Liabilities Date : May 05, 2021 Place : Delhi Non-current liabilities Date : May 05, 2021 Financial liabilities (i) Borrowings 15 1,422.24 1,117.43 (ii) Lease liabilities 37 63.83 73.98 (iii) Other financial liabilities 19 0.54 22.87 Provisions 16 38.23 33.28 Deferred tax liabilities (net) 17 326.46 124.42 Total non - current liabilities 1,851.30 1,371.98

164 Annual Report 2020-21 165 Statement of Profit and Loss Statement of Profit and Loss (Contd.) for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Particulars Note No. Year ended Year ended Particulars Note No. Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 I Revenue from operations 22 6,988.32 6,330.84 (i)(b) Income tax on item (i)(a) above 14.3, 30 (46.24) 57.58 II Other income 23 63.30 53.29 (ii)(a) Cost of Hedging Reserve 14.10 0.95 - III Total Income (I + II) 7,051.62 6,384.13 (ii)(b) Income tax on item (ii)(a) above 14.10, 30 (0.33) - IV Expenses Total other comprehensive income for the 88.28 (112.54) Cost of materials consumed 24.1 3,278.50 3,198.85 year, net of taxes (A(i+ii) + B(i+ii)) Purchases of stock-in-trade 24.2 60.49 91.40 XIII Total comprehensive income for the year 1,013.34 861.64 Changes in inventories of finished goods, work-in- 24.3 (28.21) (95.74) (XI + XII) progress and stock-in-trade Basic and Diluted Earnings per equity share (in `) Employee benefits expense 25 534.13 487.08 From continuing operations 36 158.72 138.06 Finance costs 26 111.21 182.11 From discontinued operations 36 - 31.42 Depreciation and amortisation expense 27 383.60 353.21 From continuing and discontinued operations 36 158.72 169.48

Other expenses 28 1,401.93 1,386.74 Summary of significant accounting policies 1B STATUTORY REPORTS Total Expenses (IV) 5,741.65 5,603.65 See accompanying notes to the standalone 2 to 41 V Profit before tax from continuing operations 1,309.97 780.48 financial statements (III - IV) As per our report attached For and on behalf of the Board of Directors VI Tax expense related to continuing operations 29 For B S R & Co. LLP Current tax 327.23 104.26 Chartered Accountants Deferred tax ICAI Firm registration no. 101248W / W-100022 MAT credit entitlement (5.38) (36.73) Kaushal Kishore Ashish Bharat Ram Kartik Bharat Ram Others 63.06 (80.64) Partner Managing Director Deputy Managing Director Total tax expense related to continuing 384.91 (13.11) Membership No.: 090075 DIN - 00671567 DIN - 00008557 operations Place : Delhi Place : Delhi Place : Delhi Date : May 21, 2021 Date : May 05, 2021 Date : May 05, 2021 VII Profit for the year from continuing operations 925.06 793.59 Rahul Jain Bharti Gupta Ramola Rajat Lakhanpal (V - VI) President & CFO Director Vice President VIII Profit before tax from discontinued operations 40 - 241.82 Place : Gurugram DIN - 00356188 (Corporate Compliance) IX Tax expense related to discontinued operations 29 - 61.23 Date : May 05, 2021 Place : Gurugram and Company Secretary Date : May 05, 2021 Place : Delhi FINANCIAL STATEMENTS X Profit for the year from discontinued operations - 180.59 Date : May 05, 2021 (VIII - IX) XI Total Profit for the year (VII + X) 925.06 974.18 XII Other comprehensive income A Items that will not be reclassified to profit or loss (i)(a) Gain / (loss) of defined benefit obligation 14.2, 33.2 2.41 (8.19) (i)(b) Income tax on item (i)(a) above 14.2, 30 (0.84) 2.86 B Items that will be reclassified to profit or loss (i)(a) Effective portion of gain / (loss) on hedging 14.3 132.33 (164.79) instruments in a cash flow hedge

166 Annual Report 2020-21 167 CASH FLOW STATEMENT CASH FLOW STATEMENT (Contd.) for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Particulars Year ended Year ended Particulars Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 A CASH FLOW FROM OPERATING ACTIVITIES Net increase / (decrease) in cash and cash equivalents (11.54) (64.54) Profit before tax Cash and cash equivalents at the beginning of the year 98.26 162.80 - Continuing Operations 1,309.97 780.48 Cash and cash equivalents at the end of the year (Refer to note 11) 86.72 98.26 - Discontinued Operations - 241.82 Notes: Profit before tax including discontinued operations 1,309.97 1,022.30 (i) The cash flow statement has been prepared under indirect method as set out in Indian Accounting Standard-7 (Ind AS) on ‘Statement Adjustments for: of Cash Flows’. Finance costs 111.21 182.27 (ii) During the year, the Company paid in cash ` 10.18 Crores (Previous year: ` 12.00 Crores) towards corporate social responsibility Interest income (9.24) (12.35) (CSR) expenditure. Net gain on sale / discarding of property, plant and equipment (0.39) (12.76) (iii) For cash flow information of discontinued operations, refer note 40(b). Net gain on financial assets measured at fair value through profit and loss (25.45) (9.38) (iv) The following table discloses changes in liabilities arising from financing activities, including both cash and non-cash changes: Credit impaired assets provided / written off 12.06 1.88 Amortisation of grant income - (2.64) Particulars As at Cash Non-cash changes As at Depreciation and amortisation expense 383.60 353.62 March 31, flow from Upfront Exchange Finance Interim Lease March 31, Property, plant and equipment and inventory discarded / provided 3.36 11.12 2020 financing fees fluctuation cost# dividend liability 2021 Provision / liabilities no longer required written back (11.42) (2.82) activities # ^ Net unrealised currency exchange fluctuation loss / (gains) 7.59 3.50 amortised changes declared recognised Profit on slump sale of business - (233.74) Equity share capital 58.50 1.76 - - - - - 60.26 Employee share based payment expense 0.97 0.97 Securities premium (net of - 736.25 - - - - - 736.25 issue expenses)

Stamp duty on purchase of investments 0.15 - STATUTORY REPORTS Adjustments for (increase) / decrease in operating assets :- Non-current borrowings* 1,859.62 (50.37) 2.30 1.27 - - - 1,812.82 Trade receivables (274.12) 89.75 Current borrowings 804.80 (42.57) - 0.03 - - - 762.26 Inventories (178.37) (44.54) Interest accrued 22.64 (127.43) - - 109.26 - - 4.47 Loans (current) (1.18) (2.98) Lease liability 87.69 (20.19) - - 6.49 - 3.63 77.62 Loans (non-current) (2.58) (9.84) Dividend and taxes thereon 6.04 (140.78) - - - 141.31 - 6.57 Other assets (current) 50.06 116.19 Total 2,839.29 356.67 2.30 1.30 115.75 141.31 3.63 3,460.25 Other assets (non-current) (1.99) (2.57) Adjustments for increase / (decrease) in operating liabilities :- Particulars As at Cash Non-cash changes As at Trade payables 248.04 (130.76) March 31, flow from Upfront Exchange Finance Interim Lease March 31, Provisions 6.32 7.59 2019 financing fees fluctuation cost# dividend liability 2020 Other liabilities (non-current) - 0.56 activities amortised changes# declared ^ recognised Other liabilities (current) 22.01 31.80 Equity share capital 58.50 ------58.50 Cash generated from operations 1,650.60 1,357.17 Non-current borrowings* 2,060.29 (294.94) 2.95 91.32 - - - 1,859.62 Income taxes paid (net of refunds) (229.00) (140.76) Current borrowings 1,042.83 (259.80) - 21.77 - - - 804.80 Net cash generated from operating activities 1,421.60 1,216.41 Interest accrued 29.40 (188.41) - - 181.65 - - 22.64 B CASH FLOW FROM INVESTING ACTIVITIES Lease liability - (18.87) - - 6.70 - 99.86 87.69 Net proceeds / (purchases) of current investments (188.57) (88.63) Dividend and taxes thereon 5.89 (96.86) - - - 97.01 - 6.04 Stamp duty on purchase of investments (0.15) - 3,196.91 (858.88) 2.95 113.09 188.35 97.01 99.86 2,839.29 Purchase of non-current investments - (4.05) *including current maturity of long term debts Interest received 0.07 13.11 ^including taxes on dividend Bank balances not considered as cash and cash equivalents (134.68) 0.30 #including amount capitalised Proceeds from slump sale of business - 315.77 FINANCIAL STATEMENTS Costs incurred on slump sale of business - (5.71) See accompanying notes to the standalone financial statements 2 to 41 Income tax paid on profit on slump sale of business - (40.84) Payment for purchase of property, pland and equipment, capital work- (853.05) (627.69) As per our report attached For and on behalf of the Board of Directors For B S R & Co. LLP in-progress and other intangible assets Chartered Accountants Proceeds from disposal of property, plant and equipment 4.06 15.67 ICAI Firm registration no. Loan to subsidiaries (617.49) - 101248W / W-100022 Net cash used in investing activities (1,789.81) (422.07) C CASH FLOW FROM FINANCING ACTIVITIES Kaushal Kishore Ashish Bharat Ram Kartik Bharat Ram Proceeds from issue of shares 750.00 - Partner Managing Director Deputy Managing Director Costs incurred on issue of shares (11.99) - Membership No.: 090075 DIN - 00671567 DIN - 00008557 Proceeds from borrowings (Non-current) 1,294.04 156.59 Place : Delhi Place : Delhi Place : Delhi Repayment of borrowings (Non-current) (1,344.41) (451.53) Date : May 21, 2021 Date : May 05, 2021 Date : May 05, 2021 Net proceeds / (repayment) from borrowings (Current) (42.57) (259.80) Rahul Jain Bharti Gupta Ramola Rajat Lakhanpal Corporate dividend tax paid - (16.54) President & CFO Director Vice President Dividends on equity share capital paid (140.78) (80.32) Place : Gurugram DIN - 00356188 (Corporate Compliance) Repayment towards lease liability (20.19) (18.87) Date : May 05, 2021 Place : Gurugram and Company Secretary Finance costs paid (127.43) (188.41) Date : May 05, 2021 Place : Delhi Net cash generated from / (used in) financing activities 356.67 (858.88) Date : May 05, 2021

168 Annual Report 2020-21 169 STATEMENT OF CHANGES IN EQUITY Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW (a) Equity share capital 1. Corporate Information, Significant - Defined benefit plans - plan assets Amount Accounting Policies and Significant measured at fair value less present value Balance at March 31, 2019 58.50 Accounting Judgements, Estimates Changes in equity share capital during the year - of defined benefit obligation Balance at March 31, 2020 58.50 and Assumptions Changes in equity share capital during the year 1.76 - Share-based payments Balance at March 31, 2021 60.26 A Corporate Information SRF Limited (“the Company”) is a public limited The standalone financial statements are (b) Other Equity company domiciled in India and incorporated presented in Indian Rupees (INR) which is Reserves and Surplus* Items of other comprehensive income* under the provisions of the Companies Act, 1956. also the Company’s functional currency and Capital General Capital Securities Debenture Employee Retained Effective Equity instrument Cost of all values are rounded to the nearest crores, reserve reserve redemption premium redemption share based earnings portion of through other hedging The Company’s equity shares are listed at the reserve reserve payment cash flow comprehensive reserve Bombay Stock Exchange (BSE) and the National except when otherwise indicated. reserve hedge income Stock Exchange (NSE). The registered office of Balance at March 31, 2019 219.19 573.54 10.48 - 75.00 0.58 2956.92 28.65 (4.22) - The principal accounting policies are Profit for the year ------974.18 - - - the Company is situated at The Galleria, DLF Other comprehensive income for ------(5.33) (107.21) - - set out below. the year, net of income tax Mayur Vihar, Unit No. 236 and 237, Second Floor, Total comprehensive income ------968.85 (107.21) - - Mayur Vihar Place, Noida Link Road, Mayur Vihar 2. Current versus non-current classification for the year Phase I Extn, Delhi - 110091. The Company’s The Company presents assets and liabilities Payment of dividend (` 14 per ------(80.47) - - - STATUTORY REPORTS share) parent company is KAMA Holdings Limited. in the balance sheet based on current/non- Tax on Dividend ------(16.54) - - - current classification. Employee share based payment - - - - - 0.98 - - - - expense The principal activities of the Company are Balance at March 31, 2020 219.19 573.54 10.48 - 75.00 1.56 3828.76 (78.56) (4.22) - manufacturing, purchase and sale of technical An asset is treated as current when it is: Profit for the year ------925.06 - - - textiles, chemicals, packaging films and Other comprehensive income for ------1.57 86.09 - 0.62 - Expected to be realised or intended to be the year, net of income tax other polymers. sold or consumed in normal operating cycle Total comprehensive income ------926.63 86.09 - 0.62 for the year The standalone financial statements were Payment of dividend (` 24 per ------(141.31) - - - - Held primarily for the purpose of trading share) authorised for issue in accordance with a - Cash or cash equivalent unless restricted Tax on Dividend ------resolution of the directors on May 5, 2021. Employee share based payment - - - - - 0.98 - - - - from being exchanged or used to settle expense Transfer to debenture redemption ------(62.50) - - - B Significant Accounting Policies a liability for at least twelve months after reserve the reporting period. Transfer to general reserve - - - - (75.00) - - - - - 1. Basis of Preparation Transfer from debenture - 75.00 ------These standalone financial statements redemption reserve All other assets are classified as non- Transfer from retained earnings - - - - 62.50 - - - - - are prepared in accordance with Indian current. Premium on issue of equity - - - 736.25 ------Accounting Standards (Ind AS), under the shares (net of issue expenses)^ A liability is current when:

Balance at March 31, 2021 219.19 648.54 10.48 736.25 62.50 2.54 4551.58 7.53 (4.22) 0.62 Companies (Indian Accounting Standards) FINANCIAL STATEMENTS - It is expected to be settled in normal *Refer note 14 Rules, 2015 notified under section 133 of ^Refer note 13.1 the Companies Act 2013 (“the Act”) as operating cycle See accompanying notes to the standalone financial statements 2 to 41 amended thereafter and other relevant - It is held primarily for the purpose of As per our report attached For and on behalf of the Board of Directors provisions of the Act. trading For B S R & Co. LLP Chartered Accountants The standalone financial statements have ICAI Firm registration no. - There is no unconditional right to defer 101248W / W-100022 been prepared on an accrual basis and the settlement of the liability for at least under the historical cost convention, except Kaushal Kishore Ashish Bharat Ram Kartik Bharat Ram twelve months after the reporting period Partner Managing Director Deputy Managing Director for the following assets and liabilities which Membership No.: 090075 DIN - 00671567 DIN - 00008557 Place : Delhi Place : Delhi Place : Delhi have been measured at fair value: The Company classifies all other liabilities Date : May 21, 2021 Date : May 05, 2021 Date : May 05, 2021 - Derivative financial instruments as non-current. Rahul Jain Bharti Gupta Ramola Rajat Lakhanpal President & CFO Director Vice President - Certain financial assets and liabilities Deferred tax assets and liabilities are Place : Gurugram DIN - 00356188 (Corporate Compliance) and Date : May 05, 2021 Place : Gurugram Company Secretary measured at fair value (refer accounting classified as non-current assets and Date : May 05, 2021 Place : Delhi policy regarding financial instruments) liabilities. Date : May 05, 2021

170 Annual Report 2020-21 171 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Based on the nature of products and the Assets are classified to the appropriate Freehold land is not depreciated. Trademarks / Brand 10-30 years time between acquisition of assets for categories of property, plant and Technical Knowhow 30-40 years processing and their realisation in cash equipment when completed and ready Depreciation is calculated on a pro rata and cash equivalents, the Company has for intended use. basis except assets costing upto ` 5,000 Software 3 years identified twelve months as its operating each, which are fully depreciated in the Other intangibles 2.5-8 years cycle for the purpose of current / non Capital Work in Progress: Project under year of purchase. current classification of assets and which assets are not yet ready for their The Company has elected to continue with liabilities. intended use are carried at cost comprising An item of property, plant and equipment the carrying value of all of its intangibles direct cost, related incidental expenses and or any significant part initially recognised of assets recognised as on April 1, 2015 3. Property, plant and equipment (PPE) attributable interest. such item of property plant and equipment measured as per the previous GAAP and Property, plant and equipment are stated is derecognised upon disposal or when no use that carrying value as its deemed cost at cost of acquisition or construction less Spare parts are capitalized when they future economic benefits are expected from as of transition date. accumulated depreciation and accumulated meet the definition of PPE, i.e., when the its use or disposal. Any gain or loss arising The amortisation period and the amortisation impairment losses, if any. Company intends to use these for a period on derecognition of the asset (calculated method for an intangible asset with a finite of more than 12 months. as the difference between the net disposal

useful life are reviewed at least at the end STATUTORY REPORTS All items of property, plant and equipment proceeds and the carrying amount of the of each reporting period. Changes in the have been measured at fair value at the 4. Depreciation asset) is included in the statement of profit expected useful life or the expected pattern date of transition to Ind AS. The Company Depreciable amount for assets is the cost and loss when the asset is derecognised. of consumption of future economic benefits have opted such fair valuation as deemed of an asset, or other amount substituted for embodied in the asset are considered to cost at the transition date i.e. April 1, 2015. cost, less its estimated residual value. The estimated useful lives and methods modify the amortisation period or method, of depreciation of property, plant and as appropriate, and are treated as changes Cost of acquisition or construction is Depreciation has been provided on the equipment are reviewed at each financial in accounting estimates. The amortisation inclusive of freight, duties, non-recoverable cost of assets less their residual values year end and adjusted prospectively, expense on intangible assets with finite taxes, incidental expenses and interest on straight line method on the basis of if appropriate. lives is recognised in the statement of profit on loans attributable to the acquisition estimated useful life of assets determined and loss unless such expenditure forms part of qualifying assets, up to the date of by the Company which are different from 5. Intangible Assets commissioning of the assets. of carrying value of another asset. the useful life as prescribed in Schedule II Intangible assets acquired separately are of the 2013 Act. The estimated useful life measured on initial recognition at cost. Such cost includes the cost of replacing part An intangible asset is derecognised on of the assets have been assessed based on of the plant and equipment and borrowing disposal or when no future economic technical advice, taking into account the Following initial recognition, intangible costs for qualifying assets, upto the date of benefits are expected from use or disposal. nature of the asset, the estimated usage assets are carried at cost less any Gains or losses arising from derecognition FINANCIAL STATEMENTS commissioning of the assets. accumulated amortisation and accumulated of the asset, the operating conditions of of an intangible asset are measured as impairment losses, if any. Likewise, when a major inspection for faults the asset, past history of replacement, the difference between the net disposal anticipated technological changes, is performed, its cost is recognised in the Internally generated intangibles, excluding proceeds and the carrying amount of manufacturers warranties and maintenance carrying amount of the plant and equipment capitalised development costs, are not the asset and are recognised in the support, etc. and are as under: as a replacement if the recognition criteria is capitalised and the related expenditure is statement of profit or loss when the asset satisfied. All other repair and maintenance is derecognised. Roads 40-50 years reflected in profit or loss in the period in costs are recognised in the statement of which the expenditure is incurred. profit and loss as incurred. Buildings (including 5-60 years 6. Research and development expenditure temporary structures) Intangible assets with finite lives are Expenditure on research and development If significant parts of an item of property, Plant and equipment 2-40 years amortised over the useful economic life and of products is included under the natural plant and equipment have different Furniture and fixtures 3-20 years assessed for impairment whenever there is heads of expenditure in the year in which useful lives, then they are accounted for an indication that the intangible asset may it is incurred except which relate to Office equipment 3-20 years as separate items of property, plant and be impaired. The useful lives considered development activities whereby research Vehicles 4-5 years equipment and depreciated accordingly. are as follows: findings are applied to a plan or design

172 Annual Report 2020-21 173 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW for the production of new or substantially the other assets of the unit pro rata based an appropriate valuation model is used. if the contract conveys the right to control improved products and processes. on the carrying amount of each asset in These calculations are corroborated by the use of an identified asset for a period the unit. Any impairment loss for goodwill valuation multiples or other available fair of time in exchange for consideration. Such development costs are capitalised if is recognised directly in profit or loss. value indicators. To assess whether a contract conveys the they can be reliably measured, the product An impairment loss recognised for goodwill right to control the use of an identified or process is technically and commercially is not reversed in subsequent periods. The Company bases its impairment asset, the Company assess whether: feasible and the Company has sufficient calculation on detailed budgets and forecast, – the contract involves the use of an resources to complete the development and On disposal of the relevant cash-generating which are prepared separately for each of identified asset – this may be specified to use or sell the asset. unit, the attributable amount of goodwill is the Company’s CGUs to which the individual explicitly or implicitly and should included in the determination of the profit assets are allocated. These budgets and Following initial recognition of the or loss on disposal. forecast calculations generally cover a be physically distinct or represent development expenditure as an asset, the period of 5 years. For longer periods, a substantially all of the capacity of a asset is carried at cost less any accumulated 8. Impairment of tangible and intangible long-term growth rate is calculated and physically distinct asset. If the supplier amortisation and accumulated impairment assets other than goodwill applied to project future cash flows after has a substantive substitution right, losses, if any. Amortisation of the asset The Company assesses, at each reporting 5th year. To estimate cash flow projections then the asset is not identified; begins when development is complete and date, whether there is an indication that beyond periods covered by the most recent – the Company has the right to obtain STATUTORY REPORTS the asset is available for use. It is amortised an asset may be impaired. If any indication budgets/forecasts, Company extrapolates substantially all of the economic over the period of expected future benefit. exists, or when annual impairment testing cash flow projections in the budget using benefits from use of the asset through Amortisation expense is recognised in for an asset is required, the Company a steady or declining growth rate for the period of use; and the statement of profit and loss unless estimates the asset’s recoverable amount. subsequent years, unless an increasing rate such expenditure forms part of carrying An asset’s recoverable amount is the higher can be justified. – the Company has the right to direct value of another asset. During the period of an asset’s or cash-generating unit’s the use of the asset. The Company of development, the asset is tested for (CGU) fair value less costs of disposal and For assets excluding goodwill, an has this right when it has the decision- impairment annually. its value in use. assessment is made at each reporting date making rights that are most relevant to determine whether there is an indication to changing how and for what 7. Goodwill Recoverable amount is determined for an that previously recognised impairment purpose the asset is used. In rare Goodwill arising on an acquisition of a individual asset, unless the asset does losses no longer exist or have decreased. cases, where the decision about how business is carried at cost as established at not generate cash inflows that are largely If such indication exists, the Company and for what purpose the asset is the date of acquisition of the business less independent of those from other assets or estimates the asset’s or CGU’s recoverable used is predetermined, the Company accumulated impairment losses, if any. groups of assets. amount. A previously recognised has the right to direct the use of the impairment loss is reversed only if there asset if either:

For the purposes of impairment testing, Impairment loss is recognised when the has been a change in the assumptions FINANCIAL STATEMENTS • the Company has the right to goodwill is allocated to each of the carrying amount of an asset or CGU exceeds used to determine the asset’s recoverable operate the asset; or Company’s cash-generating units that is its recoverable amount. In such cases, the amount since the last impairment loss was expected to benefit from the synergies of asset is considered impaired and is written recognised. The reversal is limited so that • the Company designed the asset in a the combination. down to its recoverable amount. the carrying amount of the asset does not way that predetermines how and for exceed its recoverable amount, nor exceed what purpose it will be used A cash-generating unit to which goodwill In assessing value in use, the estimated the carrying amount that would have been has been allocated is tested for impairment future cash flows are discounted to their determined, net of depreciation, had no An entity shall reassess whether a annually, or more frequently when there present value using a pre-tax discount rate impairment loss been recognised for the contract is, or contains, a lease only is an indication that the unit may be that reflects current market assessments asset in prior years. if the terms and conditions of the impaired. If the recoverable amount of the of the time value of money and the risks contract are changed. cash-generating unit is less than its carrying specific to the asset. In determining fair 9. Leasing amount, the impairment loss is allocated value less costs of disposal, recent market At inception of a contract, the Company At inception or on reassessment first to reduce the carrying amount of any transactions are taken into account. assesses whether a contract is, or contains, of a contract that contains a lease goodwill allocated to the unit and then to If no such transactions can be identified, a lease. A contract is, or contains, a lease component, the Company allocates

174 Annual Report 2020-21 175 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW the consideration in the contract to It is remeasured when there is a change in added to the cost of the asset. All other due to differences in exchange rates each lease component on the basis of future lease payments arising from a change borrowing costs are expensed in the period at the time of translation or settlement their relative stand-alone prices. in an index or rate, if there is a change in which they occur. are accounted for in the Statement in Company’s estimate of the amount of Profit and Loss either under the Company as lessee expected to be payable under a residual In case of a specific borrowing taken for head foreign exchange fluctuation The Company accounts for assets value guarantee, or if the Company changes the purpose of acquisition, construction or interest cost, as the case may be, taken under lease arrangement in the its assessment of whether it will exercise a or production of a qualifying asset, the except those relating to exchange following manner: purchase, extension or termination option. borrowing costs capitalised shall be the differences arising from cash flow actual borrowing costs incurred during the hedges to the extent that the hedges The Company recognises a right-of-use When the lease liability is remeasured in this period less any interest income earned on are effective and those covered below. asset and a lease liability at the lease way, a corresponding adjustment is made temporary investment of specific borrowing commencement date. The right of use to the carrying amount of the right-of-use pending expenditure on qualifying asset. (ii) Exchange differences pertaining to asset is initially measured at cost, which asset, or is recorded in profit or loss if the long term foreign currency loans comprises the initial amount of the lease carrying amount of the right-of-use asset In case funds are borrowed generally obtained or re-financed on or before liability adjusted for any lease payments has been reduced to zero. and such funds are used for the purpose March 31, 2016:

made at or before the commencement of acquisition, construction or production STATUTORY REPORTS date, plus any initial direct costs incurred Short-term leases and leases of of a qualifying asset, the borrowing costs Exchange differences on long-term and an estimate of costs to dismantle and low-value assets capitalised are calculated by applying the foreign currency monetary items remove the underlying asset or to restore weighted average capitalisation rate on relating to acquisition of depreciable the underlying asset or the site on which it The Company has elected not to recognise general borrowings outstanding during the assets are adjusted to the carrying cost is located, less any lease incentive received. right-of use assets and lease liabilities for period, to the expenditures incurred on the of the assets and depreciated over the short term leases that have a lease term of qualifying asset. balance useful life of the assets. The right of use asset is subsequently 12 months or less and leases of low value depreciated using the straight line method assets. The Company recognises the lease If any specific borrowing remains (iii) Exchange differences pertaining to long from the commencement date to the end of payments associated with these leases as outstanding after the related asset is term foreign currency loans obtained the lease term. The estimated useful lives an expense on a straight- line basis over ready for its intended use, that borrowing or re-financed on or after April 1, 2016: of right-of-use assets are determined on the the lease term. is considered part of the funds that are basis of remaining lease term. In addition, borrowed generally for calculating the The exchange differences pertaining the right-of-use asset is periodically 10. Borrowing costs capitalisation rate. to long term foreign currency loans reduced by impairment losses, if any, and Borrowing costs consist of interest and other obtained or re-financed on or after adjusted for certain remeasurements of the costs that an entity incurs in connection 11. Foreign Currencies April 1, 2016 is treated in accodance

lease liability. with the borrowing of funds. Borrowing cost Transactions in foreign currencies are with Ind AS 21/ Ind AS 109. FINANCIAL STATEMENTS also includes exchange differences to the recorded on initial recognition at the Refer point (i) above. The lease liability is initially measured at extent regarded as an adjustment to the exchange rate prevailing on the date of the present value of the lease payments borrowing costs. the transaction. 12. Inventories that are not paid at the commencement Inventories are valued at cost or net date, discounted using the Company’s Borrowing costs directly attributable to the (i) Monetary assets and liabilities realisable value, whichever is lower. incremental borrowing rate. acquisition, construction or production of denominated in foreign currency The basis of determining the cost for various an asset that necessarily takes a substantial remaining unsettled at the end of the categories of inventory are as follows: Lease payments included in the period of time to get ready for its intended year, are translated at the closing rates measurement of the lease liability comprise use or sale are capitalised as part of the prevailing on the Balance Sheet date. (a) Raw materials, packing materials and the fixed payments, including in-substance cost of the asset. Borrowing costs incurred Non-monetary items which are carried stores and spares (including fuel) - fixed payments. for the period from commencement in terms of historical cost denominated Cost includes cost of purchase and of activities relating to construction/ in foreign currency are reported using other costs incurred in bringing the The lease liability is measured at amortised development of the qualifying asset upto the exchange rate at the date of inventories to their present location cost using the effective interest method. the date of capitalisation of such asset are transaction. Any gains or losses arising and condition. Cost is determined on

176 Annual Report 2020-21 177 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW weighted average basis. The aforesaid Contingent liabilities Revenues are measured based on respect of exports made under the said items are valued at Net Realisable A contingent liability is a possible obligation the transaction price, which is the Schemes is included under the head Value if the finished products in that arises from past events whose existence consideration, net of tax collected “Revenue from Operations” under which they are to be incorporated are will be confirmed by the occurrence or from customers and remitted to ‘Export and other Incentives’. Also refer expected to be sold at a loss. non-occurrence of one or more uncertain government authorities such as policy on “government grants”. future events beyond the control of the goods and services tax and applicable (b) Traded goods, Stock in progress 15. Taxation Company or a present obligation that is not discounts and allowances. and finished goods- Direct cost plus Income tax expense represents the sum of recognised because it is not probable that appropriate share of overheads. Any fees including upfront fees current tax and deferred tax. an outflow of resources will be required received in relation to contract (c) By products - At estimated to settle the obligation. A contingent manufacturing arrangements is a) Current tax realisable value liability also arises in extremely rare cases recognised on straight line basis over Current income tax assets and liabilities the period over which the Company are measured at the amount expected Net realisable value is the estimated where there is a liability that cannot be satisfies the underlying performance to be recovered from or paid to the selling price in the ordinary course recognised because it cannot be measured obligations. Contract assets are taxation authorities. The tax rates and of business, less estimated costs of reliably. The Company does not recognize recognised when there is excess tax laws used to compute the amount are completion and the estimated costs a contingent liability but discloses its STATUTORY REPORTS of revenue earned over billings those that are enacted or substantively necessary to make the sale. existence in the financial statements unless the possibility of an outflow of resources on contracts. Contract assets are enacted, at the reporting date. classified as unbilled revenue (only act 13. Provisions, contingent liabilities and contingent embodying economic benefits is remote. Current income tax relating to items of invoicing is pending) when there is assets Contingent liabilities and commitments recognised outside profit or loss is unconditional right to receive cash as Provisions are reviewed by the management at each recognised outside profit or loss i.e. per contractual terms. Advance from The Company recognises a provision balance sheet date. in other comprehensive income or customers (“contract liability”) is when there is a present obligation (legal in equity. Management periodically recognised when the Company has or constructive) as a result of past events Contingent assets evaluates positions taken in the tax received consideration from the and it is more likely than not that an Contingent assets are neither recognised returns with respect to situations in customer before it delivers the goods. outflow of resources would be required nor disclosed in the financial statements. which applicable tax regulations are to settle the obligation and a reliable However, contingent assets are assessed b) Interest and dividend income subject to interpretation and establishes estimate can be made. continually and if it is virtually certain that Interest income is recognised when it is provisions where appropriate. probable that the economic benefits will When the Company expects some or an inflow of economic benefits will arise, the flow to the Company using the effective b) Deferred tax all of a provision to be reimbursed, for asset and related income are recognised in interest rate and the amount of income Deferred tax is provided on temporary example, under an insurance contract, the the period in which the change occurs. can be measured reliably. Interest income differences between the tax bases of FINANCIAL STATEMENTS reimbursement is recognised as a separate is accrued on a time basis, by reference assets and liabilities and their carrying asset, but only when the reimbursement is 14. Revenue recognition to the principal outstanding. amounts at the reporting date. virtually certain. a) Sale of goods Revenue from sale of products is Dividend income from investments is Deferred tax assets and liabilities are The expense relating to a provision is recognised upon transfer of control recognised when the shareholder’s measured using substantively enacted presented in the statement of profit and of products to customers at the time right to receive payment has been tax rates expected to apply to taxable loss net of any reimbursement. of shipment to or receipt of goods established (provided that it is probable income in the years in which the that the economic benefits will flow temporary differences are expected to If the effect of the time value of money is by the customers. Service income is to the Company and the amount of be received or settled. material, provisions are discounted using recognised as and when the underlying income can be measured reliably). a current pre-tax rate that reflects, when services are performed. The Company Deferred tax assets and liabilities are appropriate, the risks specific to the liability. exercises judgement in determining c) Export Incentives offset if such items relate to taxes on When discounting is used, the increase in whether the performance obligation is The benefit accrued under the Duty income levied by the same governing the provision due to the passage of time is satisfied at a point in time or over a Drawback scheme and other schemes tax laws and the Company has a legally recognised as a finance cost. period of time. as per the Export and Import Policy in enforceable right for such set off.

178 Annual Report 2020-21 179 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Deferred tax assets are recognised for The Company considers whether it is within the operating cycle after the end of Other long-term employee benefits all deductible temporary differences and probable that a taxation authority will accept the period in which the related services are The Company also has other long-term unused tax losses only if it is probable that an uncertain tax treatment. If the Company rendered, are measured at the undiscounted employee benefits in the nature of future taxable amounts will be available concludes that it is probable that the amount expected to be paid. compensated absences and long term to utilise those temporary differences and taxation authority will accept an uncertain retention pay. Provision for compensated losses. The carrying amount of deferred tax treatment, the Company determines the Defined contribution plans absences and long term retention pay are tax assets is reviewed at each reporting taxable profit (tax loss), tax bases, unused Provident fund administered through determined on an actuarial basis at the end date and reduced to the extent that it is tax losses, unused tax credits or tax rates Regional Provident Fund Commissioner, of the year and charged to Statement of no longer probable that sufficient taxable consistently with the tax treatment used or Superannuation Fund and Employees’ Profit and Loss. The cost of providing these profit will be available to allow all or part planned to be used in its income tax filings. State Insurance Corporation are defined benefits is determined using the projected of the deferred tax asset to be utilised. However, if the Company concludes that it contribution schemes. Contributions to such unit credit method. Unrecognised deferred tax assets are is not probable that the taxation authority schemes are charged to the statement of re-assessed at each reporting date and are will accept an uncertain tax treatment, the profit and loss in the year when employees Share based payments recognised to the extent that it has become Company reflects the effect of uncertainty have rendered services entitling them Equity settled share based payments to probable that future taxable profits will allow in determining the related taxable profit to contributions. The Company has no employees under SRF Long Term Share STATUTORY REPORTS the deferred tax asset to be recovered. (tax loss), tax bases, unused tax losses, obligation, other than the contribution Based Incentive Plan (SRF LTIP) are unused tax credits or tax rates. payable to such schemes. measured at the fair value (which is the Deferred tax relating to items recognised market price less exercise price) of the outside profit or loss is recognised outside 16. Government grants Defined benefit plans equity instruments on the grant date. profit or loss i.e. in other comprehensive Government grants are recognised where The Company has defined benefit gratuity This compensation expense is amortised income or in equity. there is reasonable assurance that the grant plan and provident fund for certain over the remaining tenure over which the employees renders their service on a will be received and all attached conditions category of employees administered Deferred tax assets/liabilities are will be complied with. straight line basis. through a recognised provident fund trust. not recognised for below mentioned Provision for gratuity and provident fund for temporary differences: A government grant that becomes 18. Earnings per share certain category of employees administered receivable as compensation for expenses or Basic earnings per share is calculated by through a recognised provident fund trust (i) At the time of initial losses incurred in a previous period. Such a dividing the net profit or loss for the year are determined on an actuarial basis recognition of goodwill; grant is recognised in profit or loss of the attributable to equity shareholders by the at the end of the year and charged to period in which it becomes receivable. weighted average number of equity shares Statement of Profit and Loss, other than (ii) Initial recognition of assets or liabilities outstanding during the year. remeasurements. The cost of providing (other than in a business combination) Government grants are recognised in profit

at the time of the transaction, affects or loss on a systematic basis over the these benefits is determined using the For the purpose of calculating diluted FINANCIAL STATEMENTS neither the accounting profit nor periods in which the Company recognises projected unit credit method. earnings per share, the net profit or taxable profit or loss; as expenses the related costs for which the loss for the period attributable to equity Remeasurements, comprising of actuarial grants are intended to compensate. shareholders and the weighted average Minimum Alternate Tax (MAT) paid in gains and losses and the effect of the number of shares outstanding during the accordance with the tax laws, which Government grants related to assets are asset ceiling, (excluding amounts included period is adjusted for the effects of all gives future economic benefits in the presented in the balance sheet as deferred in net interest on the net defined benefit dilutive potential equity shares. form of adjustment to future income income and is recognised in profit or loss on liability and return on plan assets), are tax liability, is considered as an asset if a systematic basis over the expected useful recognised immediately in the balance 19. Cash and cash equivalents there is convincing evidence that the life of the related assets. sheet with a corresponding debit or Cash and cash equivalent in the balance Company will pay normal income tax. credit to retained earnings through other sheet comprise cash at banks and on Accordingly, MAT asset is recognised in 17. Employee benefits comprehensive income in the period in hand and short-term deposits with an the Balance Sheet when it is probable that Short-term employee benefits which they occur. Remeasurements are not original maturity of three months or less, future economic benefit associated with it Wages and salaries including non monetary reclassified to statement of profit and loss which are subject to an insignificant risk of will flow to the Company. benefits that are expected to be settled in subsequent periods. changes in value.

180 Annual Report 2020-21 181 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 20. Financial instruments The losses arising from impairment a) The rights to receive cash flows from the Company continues to recognise A financial instrument is any contract that are recognised in the statement of the asset have expired, or the transferred asset in its entirety and gives rise to a financial asset of one entity profit and loss. This category generally recognises a financial liability for the b) The Company has transferred its rights and a financial liability or equity instrument applies to trade and other receivables. consideration received. to receive cash flows from the asset of another entity. Financial assets not classified as or has assumed an obligation to pay Impairment of financial assets A) Financial assets measured at amortised cost or the received cash flows in full without The Company recognizes loss allowance Initial recognition and measurement FVTOCI as are measured at FVTPL. material delay to a third party under using the expected credit loss (ECL) All financial assets are recognised initially Financial assets included within the a ‘pass-through’ arrangement; and model for the financial assets which are at fair value plus transaction costs that are FVTPL category are measured at fair either (i) the Company has transferred not fair valued through profit or loss. directly attributable to the acquisition of the value with all changes recognised in substantially all the risks and rewards Loss allowance for trade receivables with financial asset. the statement of profit and loss. of the asset, or (ii) the Company no significant financing component is Subsequent measurement has neither transferred nor retained Equity Investments measured at an amount equal to lifetime For purposes of subsequent measurement, substantially all the risks and rewards All equity investments in the scope of Ind ECL. For all financial assets with contractual financial assets of the Company are of the asset, but has transferred AS 109 are measured at fair value. cash flows other than trade receivable, control of the asset. STATUTORY REPORTS classified in three categories: ECLs are measured at an amount equal to a) At amortised cost Equity instruments which are held for When the Company has transferred its rights the 12-month ECL, unless there has been trading are measured at fair value through a significant increase in credit risk from b) At fair value through profit to receive cash flows from an asset or has profit and loss. initial recognition in which case those are and loss (FVTPL) entered into a pass-through arrangement, it evaluates if and to what extent it has measured at lifetime ECL. The amount of c) At fair value through other For all other equity instruments, the retained the risks and rewards of ownership. ECL (or reversal) that is required to adjust comprehensive income (FVTOCI) Company may make an irrevocable When it has neither transferred nor retained the loss allowance at the reporting date is election to present subsequent changes substantially all of the risks and rewards of recognised as an impairment gain or loss in Financial Asset is measured at amortised in the fair value in other comprehensive the asset, nor transferred control of the the Statement of Profit and Loss. cost if both the following conditions are met: income. The Company makes such asset, the Company continues to recognise election on an instrument by instrument a) The asset is held within a business the transferred asset to the extent of the B) Financial liabilities and Equity instruments basis. The classification is made on initial model whose objective is to hold Company’s continuing involvement. In that Initial recognition and measurement recognition and is irrevocable. assets for collecting contractual case, the Company also recognises an All financial liabilities are recognised initially cash flows, and If the Company decides to classify an associated liability. The transferred asset at fair value, net of directly attributable equity instrument as at FVTOCI, then all and the associated liability are measured transaction costs, if any. b) Contractual terms of the asset give fair value changes on the instrument, on a basis that reflects the rights and FINANCIAL STATEMENTS rise on specified dates to cash flows excluding dividends, are recognised in other obligations that the Company has retained. The Company’s financial liabilities includes that are solely payments of principal comprehensive income. This cumulative borrowings, trade and other payables and interest (SPPI) on the principal gain or loss is not reclassified to Continuing involvement that takes the including financial guarantee contracts and amount outstanding. statement of profit and loss on disposal of form of a guarantee over the transferred derivative financial instruments. After initial measurement, such such instruments. asset is measured at the lower of the financial assets are subsequently original carrying amount of the asset and Subsequent measurement Investments representing equity interest measured at amortised cost using the the maximum amount of consideration Borrowings in subsidiaries are carried at cost less any effective interest rate (EIR) method. that the Company could be required to Borrowings are subsequently measured at provision for impairment. Amortised cost is calculated by taking repay. Any gain or loss on derecognition is amortised cost. Any differences between into account any discount or premium Derecognition recognised in profit or loss. the proceeds (net of transaction costs) on acquisition and fees or costs that A financial asset (or, where applicable, and the redemption/repayment amount are an integral part of the EIR. The EIR a part of a financial asset) is primarily When the Company has retained is recognised in profit and loss over the amortisation is included in other income derecognised (i.e. removed from the substantially all the risks and rewards period of the borrowings using the effective in the statement of profit and loss. balance sheet) when: of ownership of the transferred asset, interest rate method.

182 Annual Report 2020-21 183 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Trade and other payables Debt or equity instruments issued by the fair value. Derivatives are carried as financial firm commitment attributable to the hedged Trade and other payables represent Company are classified as either financial assets when the fair value is positive risk is recognised as an asset or liability with liabilities for goods and services provided liabilities or as equity in accordance with the and as financial liabilities when the fair a corresponding gain or loss recognised in to the Company prior to the end of the substance of the contractual arrangements value is negative. statement of profit and loss. financial year which are unpaid. and the definitions of a financial liability and an equity instrument. Any gains or losses arising from changes in the Cash flow hedges Offsetting of financial instruments fair value of derivatives are taken directly to The effective portion of the gain or loss on Financial assets and financial liabilities are 21. Derivative and non derivative financial profit or loss, except for the effective portion the hedging instrument is recognised in offset and the net amount is reported in instruments and hedge accounting of cash flow hedges, which is recognised in other comprehensive income in the cash the balance sheet if there is a currently Initial recognition and subsequent measurement OCI and later reclassified to profit and loss flow hedge reserve, while any ineffective enforceable legal right to offset the The Company uses derivative financial when the hedge item affects profit or loss. portion is recognised immediately in the statement of profit and loss. recognised amounts and there is an intention instruments (such as forward currency to settle on a net basis, to realise the assets For the purpose of hedge accounting, contracts, interest rate swaps and full and settle the liabilities simultaneously. hedges are classified as: The Company uses forward currency currency swaps) or non derivative financial contracts as hedges of its exposure to assets / liabilities to hedge its foreign currency a) Fair value hedges when hedging the Financial guarantee contracts foreign currency risk in forecast transactions STATUTORY REPORTS risks and interest rate risks. The Company exposure to changes in the fair value Financial guarantee contracts issued by the and firm commitments. The ineffective has opted for “Hedge Accounting” for all its of a recognised asset or liability. Company are those contracts that require portion relating to foreign currency derivative as well as non-derivative financial a payment to be made to reimburse the b) Cash flow hedges when hedging the contracts is recognised in the statement instrument used for hedging. Accordingly, at holder for a loss it incurs because the exposure to variability in cash flows of profit and loss. In some cases, the the inception of the hedge the Company specified entity fails to make a payment that is either attributable to a particular Company separates the premium element formally designates a hedge relationship when due in accordance with the terms risk associated with a recognised asset and the spot element of a forward contract between the ‘hedging instrument’ and of a debt instrument. Financial guarantee or liability or a highly probable forecast and designates only the change in fair value ‘hedged item’ which determines the initial contracts are recognised initially as a liability transaction or the foreign currency risk of the spot element of forward exchange recognition of the financial intrument at fair value, adjusted for transaction costs in an unrecognised firm commitment. contracts as the hedging instrument in as Fair Value Hedge or Cashflow hedge. that are directly attributable to the issuance cash flow hedging relationships. In such of the guarantee. The documentation includes the Compnay’s Hedges that meet the strict criteria for cases, the changes in the fair value of the risk management objective and strategy for hedge accounting are accounted for, as premium element of the forward contract Derecognition undertaking hedge, the hedging/ economic described below: or the foreign currency basis spread of the A financial liability is derecognised when the relationship, the hedged item or transaction, financial instrument is accumulated in a obligation under the liability is discharged the nature of the risk being hedged and Fair value hedges separate component of equity as ‘cost of

or cancelled or expires. When an existing how the entity will assess the effectiveness The change in the fair value of a hedging hedging’. The changes in the fair value of FINANCIAL STATEMENTS financial liability is replaced by another from of changes in the hedging instrument’s fair instrument is recognised in the statement such premium element or foreign currency the same lender on substantially different value in offsetting the exposure to changes of profit and loss. The change in the fair basis spread are reclassified to profit or terms, or the terms of an existing liability are in the hedged item’s fair value or cash flows value of the hedged item attributable to loss as a reclassification adjustment on a substantially modified, such an exchange or attributable to the hedged risk. Such hedges the risk hedged is recorded as part of the straight-line basis over the period of the modification is treated as the derecognition are expected to be highly effective in carrying value of the hedged item and forward contract or the financial instrument. of the original liability and the recognition achieving offsetting changes in fair value or is also recognised in the statement of of a new liability. The difference in the cash flows and are assessed on an ongoing profit and loss. The Company also designates non respective carrying amounts is recognised basis to determine that they actually have derivative financial liabilities, such as in the statement of profit and loss. been highly effective throughout the financial If the hedged item is derecognised, the foreign currency borrowings from banks, reporting periods for which they were unamortised fair value is recognised as hedging instruments for the hedge Equity instrument designated. These financial instruments are immediately in profit or loss. When an of foreign currency risk associated with Equity instruments are any contract that initially recognised at fair value on the date unrecognised firm commitment is designated highly probable forecasted transactions evidences a residual interest in the assets of on which a derivative contract is entered as a hedged item, the subsequent and, accordingly, applies cash flow hedge an entity after deducting all of its liabilities. into and are subsequently re-measured at cumulative change in the fair value of the accounting for such relationships.

184 Annual Report 2020-21 185 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Amounts recognised as other comprehensive the asset or liability, assuming that market assets and liabilities on the basis of the to a plan to sell, an active programme to income are transferred to profit or loss participants act in their economic best nature, characteristics and risks of the locate a buyer and complete the plan has when the hedged transaction affects profit interest. A fair value measurement of a asset or liability and the level of the fair been initiated, the sale is considered highly or loss, such as when the hedged financial non-financial asset takes into account a value hierarchy as explained above. probable and is expected within one year income or financial expense is recognised market participant’s ability to generate from the date of classification. or when a forecast transaction occurs. economic benefits by using the asset in 23. Segment Reporting its highest and best use or by selling it Based on “Management Approach” as Non-current assets (or disposal groups) held If the hedging instrument expires or is sold, to another market participant that would defined in Ind AS 108 -Operating Segments, for sale are measured at the lower of their terminated or exercised without replacement use the asset in its highest and best use. the Chief Operating Decision Maker carrying amount and fair value less costs or rollover (as part of the hedging strategy), The Company uses valuation techniques evaluates the Company’s performance to sell. Assets and liabilities classified as or if its designation as a hedge is revoked, that are appropriate in the circumstances and allocates the resources based on an held for sale are presented separately from or when the hedge no longer meets the and for which sufficient data are available analysis of various performance indicators other assets and liabilities in the balance criteria for hedge accounting, the hedge to measure fair value, maximising the by business segments. Inter segment sales sheet. Property, plant and equipment and accountig will be discontinued prospectively. use of relevant observable inputs and and transfers are reflected at market prices. intangible assets once classified as held for Any cumulative gain or loss previously minimising the use of unobservable inputs. sale are not depreciated or amortised.

recognised in other comprehensive income All assets and liabilities for which fair value Unallocable items includes general STATUTORY REPORTS A discontinued operation is a component of remains separately in other equity if the is measured or disclosed in the financial corporate income and expense items which the Company that either has been disposed forecast transaction or the foreign currency statements are categorised within the fair are not allocated to any business segment. of, or is classified as held for sale, and: firm commitment is expected to occur else value hierarchy, described as follows, based Segment Policies: the amount shall be immediately reclassified on the lowest level input that is significant a) Represents a separate major The Company prepares its segment from the cash flow hedge reserve to profit or to the fair value measurement as a whole: line of business or geographical information in conformity with the loss as a reclassification adjustment. area of operations, a) Level 1 — Quoted (unadjusted) market accounting policies adopted for preparing prices in active markets for identical and presenting the standalone financial b) Is part of a single co-ordinated plan 22. Fair value measurement assets or liabilities. statements of the Company as a whole. to dispose of a separate major line The Company measures some of its Common allocable costs are allocated to of business or geographical area financial instruments at fair value at each b) Level 2 — Inputs other than quoted each segment on an appropriate basis. of operations, or balance sheet date. prices included in Level 1 that are observable for the asset or liability, 24. Dividend c) Is a subsidiary acquired exclusively Fair value is the price that would be received either directly (i.e. as prices) or The Company recognises a liability to with a view to resale. to sell an asset or paid to transfer a liability indirectly (i.e. derived from prices). make cash distributions to equity holders in an orderly transaction between market Discontinued operations are excluded when the distribution is authorised and the participants at the measurement date. c) Level 3 — Inputs for the asset or liability from the results of continuing operations distribution is no longer at the discretion FINANCIAL STATEMENTS The fair value measurement is based on the that are not based on observable and are presented separately in the of the Company. As per the corporate presumption that the transaction to sell the market data (unobservable inputs). statement of profit and loss. laws in India, a distribution is authorised asset or transfer the liability takes place either: For assets and liabilities that are when it is approved by the shareholders. 26. Recent pronouncements a) In the principal market for the asset recognised in the financial statements A corresponding amount is recognised On March 24, 2021, the Ministry of Corporate or liability, or on a recurring basis, the Company directly in equity. Affairs (“MCA”) through a notification, determines whether transfers have amended Schedule III of the Companies Act, b) In the absence of a principal market, 25. Non-current assets held for sale and occurred between levels in the hierarchy 2013. The amendments revise Division I, II in the most advantageous market for discontinued operations by re-assessing categorisation (based on and III of Schedule III and are applicable the asset or liability Non-current assets (or disposal groups) are the lowest level input that is significant to from April 1, 2021. Key amendments relating classified as held for sale if their carrying The principal or the most advantageous the fair value measurement as a whole) to Division II which relate to companies amounts will be recovered principally market must be accessible by the Company. at the end of each reporting period. whose financial statements are required to The fair value of an asset or a liability is through a sale transaction rather than For the purpose of fair value disclosures, comply with Companies (Indian Accounting measured using the assumptions that through continuing use. The appropriate the Company has determined classes of Standards) Rules 2015 are: market participants would use when pricing level of management must be committed

186 Annual Report 2020-21 187 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Balance Sheet: estimates and assumptions that affect the 2. Property, Plant and Equipment • Certain additional disclosures in the application of accounting policies and the Particulars Freehold Roads Buildings Plant and Furniture Office Vehicle Total statement of changes in equity such reported amounts of assets, liabilities, land equipment and fixtures equipment as changes in equity share capital due income and expenses. Actual results may Cost to prior period errors and restated differ from these estimates. Balance at March 31, 2019 317.55 53.45 669.97 4589.16 24.04 51.09 39.34 5744.60 Additions / adjustments - 11.02 33.02 879.10 2.41 8.02 9.04 942.61 balances at the beginning of the Disposals (0.37) (0.99) (16.03) (38.03) (0.65) (0.97) (7.29) (64.33) current reporting period. Judgements, estimates and underlying assumptions are reviewed on an ongoing Balance at March 31, 2020 317.18 63.48 686.96 5430.23 25.80 58.14 41.09 6622.88 Additions / adjustments - 8.29 38.66 564.41 2.01 8.08 6.59 628.04 • Specified format for disclosure of basis. Revisions to accounting estimates shareholding of promoters. Disposals - - (0.14) (6.18) (0.20) (1.06) (3.99) (11.57) are recognised in the period in which the Balance at March 31, 2021 317.18 71.77 725.48 5988.46 27.61 65.16 43.69 7239.35 • Specified format for ageing schedule estimates are revised and in any future of trade receivables, trade payables, periods affected. In particular, information Accumulated depreciation capital work-in-progress and intangible about significant areas of estimation, Balance at March 31, 2019 - 4.43 67.99 886.82 7.43 24.62 17.61 1008.90 asset under development. uncertainty and critical judgments in Depreciation expenses applying accounting policies that have the - Continuing operations - 1.94 19.36 291.03 2.02 7.04 7.60 328.99 • If a company has not used funds for - Discontinued operations - - 0.12 0.21 0.01 0.02 0.02 0.38

most significant effect on the amounts STATUTORY REPORTS the specific purpose for which it was Disposals - (0.06) (2.44) (11.25) (0.16) (0.64) (4.48) (19.03) recognised in the financial statements is borrowed from banks and financial Balance at March 31, 2020 - 6.31 85.03 1166.81 9.30 31.04 20.75 1319.24 included in the following notes. institutions, then disclosure of details Depreciation expenses - 1.54 20.22 320.71 2.07 6.53 7.25 358.32 of where it has been used. • Classification and lease term Disposals - - (0.03) (2.70) (0.14) (0.90) (2.76) (6.53) Balance at March 31, 2021 - 7.85 105.22 1484.82 11.23 36.67 25.24 1671.03 • Specific disclosure under ‘additional determination of leasing arrangement – Note 1.B.9 regulatory requirement’ such as Carrying Amount compliance with approved schemes of • Derecognition of trade receivables and Balance at March 31, 2019 317.55 49.02 601.98 3702.34 16.61 26.47 21.73 4735.70 arrangements, compliance with number hedge effectiveness - Note 1.B.20 Additions / adjustments - 11.02 33.02 879.10 2.41 8.02 9.04 942.61 of layers of companies, title deeds of Disposals (0.37) (0.93) (13.59) (26.78) (0.49) (0.33) (2.81) (45.30) immovable property not held in name • Fair value measurement of derivative Depreciation expenses of company, loans and advances to instruments – Note 1.B.22 - Continuing operations - (1.94) (19.36) (291.03) (2.02) (7.04) (7.60) (328.99) promoters, directors, key managerial • Assessment of useful life of property, - Discontinued operations - - (0.12) (0.21) (0.01) (0.02) (0.02) (0.38) personnel (KMP) and related parties, plant and equipment and intangible Balance at March 31, 2020 317.18 57.17 601.93 4263.42 16.50 27.10 20.34 5303.64 details of benami property held etc. asset – Note 1.B.4 Additions / adjustments - 8.29 38.66 564.41 2.01 8.08 6.59 628.04 Disposals - - (0.11) (3.48) (0.06) (0.16) (1.22) (5.03) Statement of profit and loss: • Recognition and estimation of tax Depreciation expenses - (1.54) (20.22) (320.71) (2.07) (6.53) (7.25) (358.32) FINANCIAL STATEMENTS • Additional disclosures relating to expense including determination of Balance at March 31, 2021 317.18 63.92 620.26 4503.64 16.38 28.49 18.46 5568.33 applicable tax rate for measuring Corporate Social Responsibility (CSR), Notes: undisclosed income and crypto or deferred tax balances – Note 1.B.15 (i) Borrowing cost capitalised during the year ` 7.62 Crores (Previous year: ` 13.80 Crores) with a capitalisation rate ranging from virtual currency specified under the 3.22% to 8.09% (Previous year: 4.25% to 9.45%). • Estimation of assets and obligations (ii) Out of the Industrial Freehold land measuring 32.41 acres at the Company’s plant in Gummidipoondi, the Company does not have head ‘additional information’ in the relating to employee benefits (including clear title to 2.43 acres. notes forming part of the standalone actuarial assumptions) – Note 1.B.17 (iii) Capital expenditure incurred during the year includes ` 13.46 Crores (Previous year: ` 33.09 Crores) on account of research financial statements. and development. Depreciation for the year includes depreciation on assets deployed in research and development as per • Assessment of impairment of financial note 41 (a) below. The amendments are extensive and the (iv) Refer to note 15.1 for information on PPE pledged as security by the Company. Additionally, non funded working capital facilities assets and non-financial assets – Note Company will evaluate the same to give from banks amounting to ` 58.50 Crores (Previous year: Nil) are secured by hypothecation of CPP and HFC134A plant situated at 1.B.20 and Note 1.B.8 Dahej in the state of Gujarat. effect to them as required by law (v) Refer to note 41 (c) for additions / adjustments on account of exchange difference during the year. C Significant accounting judgements, estimates • Recognition and measurement of (vi) The Company accounts for all capitalisation of property, plant and equipment through capital work in progress and, therefore, the movement in capital work-in-progress is the difference between closing and opening balance of capital work-in-progress as adjusted and assumptions contingencies: key assumptions about in additions to property, plant and equipment and intangible assets. The preparation of financial statements the likelihood and magnitude of an (vii) Disposals during the previous year include property, plant and equipment of discontinued operations. Refer note 40 below. requires management to make judgments, outflow of resources – Note 1.B.13

188 Annual Report 2020-21 189 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 3. Goodwill Particulars Trade Technical Software Others Total Cost Marks/ Knowhow Balance at March 31, 2019 1.41 Brands Additions - Amortisation expenses 2.45 1.70 3.02 0.05 7.22 Disposals (0.79) Disposals - - - - - Balance at March 31, 2020 0.62 Balance at March 31, 2021 19.21 7.65 28.21 18.55 73.62 Additions - Disposals - Carrying Amount Balance at March 31, 2021 0.62 Balance at March 31, 2019 63.05 40.44 4.47 0.90 108.86 Additions / adjustments 0.33 10.51 4.39 0.09 15.32 As at As at March 31, 2021 March 31, 2020 Disposals - - (0.22) - (0.22) Engineering plastics units - - Amortisation expenses Industrial yarn unit 0.62 0.62 - Continuing operations (2.61) (1.71) (3.06) (0.10) (7.48) 0.62 0.62 - Discontinued operations - - (0.02) - (0.02) STATUTORY REPORTS Balance at March 31, 2020 60.77 49.24 5.56 0.89 116.46 The Company has allocated goodwill to the above mentioned cash generating units and determined recoverable amount of this allocated goodwill using cash flow projections based on financial budget as Additions / adjustments - - 0.64 - 0.64 approved by the directors of the Company. Disposals - - - - - Amortisation expenses (2.45) (1.70) (3.02) (0.05) (7.22) Based on the above impairment testing no impairment losses have been recognised in the current year Balance at March 31, 2021 58.32 47.54 3.18 0.84 109.88 (Previous year: Nil). Also refer note 40 below. Notes: 4. Other Intangible Assets (i) Refer note 41 (c) for additions / adjustments on account of exchange difference during the previous year. (ii) Disposals during the previous year pertain to intangible assets of discontinued operations. Refer note 40 below. Particulars Trade Technical Software Others Total Marks/ Knowhow 5. Investments Brands Cost As at As at Balance at March 31, 2019 77.20 45.67 26.71 19.30 168.88 March 31, 2021 March 31, 2020 Additions / adjustments 0.33 10.51 4.39 0.09 15.32 Non-current FINANCIAL STATEMENTS Disposals - (0.99) (0.35) - (1.34) Investment in equity instruments Balance at March 31, 2020 77.53 55.19 30.75 19.39 182.86 Subsidiary companies 83.60 83.60 Additions / adjustments - - 0.64 - 0.64 Others 4.16 4.16 Disposals - - - - - 87.76 87.76 Balance at March 31, 2021 77.53 55.19 31.39 19.39 183.50 Aggregate book value of unquoted investments 87.76 87.76 Aggregate amount of impairment in value of investments 4.34 4.34 Accumulated amortisation Current Balance at March 31, 2019 14.15 5.23 22.24 18.40 60.02 Investment in mutual funds 197.16 198.50 Amortisation expenses Investment in debentures / bonds 215.36 - - Continuing operations 2.61 1.71 3.06 0.10 7.48 - Discontinued operations - - 0.02 - 0.02 412.52 198.50 Disposals - (0.99) (0.13) - (1.12) Aggregate book value and market value of unquoted investments 197.16 198.50 Balance at March 31, 2020 16.76 5.95 25.19 18.50 66.40 Aggregate book value and market value of quoted investments 215.36 -

190 Annual Report 2020-21 191 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 5.1 Investment in subsidiaries (at cost) 5.4 Investment in debentures / bonds (at fair value through profit and loss) As at As at As at As at March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Number Amount Number Amount Number Amount Number Amount Unquoted investments (Non-current) Quoted investments (Current) Equity shares of ` 10 each fully paid up of SRF 40,00,000 4.00 40,00,000 4.00 Bonds Holiday Home Limited (A wholly owned subsidiary) 9.56% State Bank of India Perpetual Bonds 2023 500 52.25 - - Equity shares of Euro 100 each fully paid up of SRF 1,28,920 79.60 1,28,920 79.60 of ` 10,00,000 each Global BV (A wholly owned subsidiary) 8.99% Bank of Baroda Perpetual Bonds 2024 of 500 51.02 - - Contribution in SRF Employees Welfare Trust - * - * ` 10,00,000 each (Controlled trust) 8.85% HDFC Bank Limited Perpetual Bonds 2022 500 51.00 - - 83.60 83.60 of ` 10,00,000 each ` ` * Amount in absolute 60,000 (Previous year: 35,000) Debentures Non convertible debentures of Shriram Transport 250 32.10 - -

5.2 Other equity instruments (at fair value through other comprehensive income) STATUTORY REPORTS Finance Company Limited 2021 of ` 10,00,000 each As at As at 7.35% non convertible debentures of NIIF 250 25.43 - - March 31, 2021 March 31, 2020 Infrastructure Finance Limited of ` 10,00,000 each Number Amount Number Amount Non convertible debentures of Tata Capital 30 3.56 - - Unquoted investments (Non-current) Financial Services Limited of ` 10,00,000 each Equity shares of ` 10 each fully paid up of Malanpur 42,21,535 4.22 42,21,535 4.22 215.36 - Captive Power Limited Less: Impairment in value of investment (4.22) (4.22) Equity shares of ` 10 each fully paid up of Vaayu 50,000 0.05 50,000 0.05 6. Loans (unsecured and considered good, unless otherwise stated) Renewable Energy (Tapti) Private Limited Equity shares of ` 10 each fully paid up of Suryadev 13,54,000 4.11 13,54,000 4.11 As at As at Alloys & Power Private Limited March 31, 2021 March 31, 2020 Equity shares of ` 10 each fully paid up of Sanghi 6,70,000 0.12 6,70,000 0.12 Non-current Spinners India Limited Loan to subsidiary (Refer note 41 (e)) 336.14 - Less: Impairment in value of investment (0.12) (0.12) Loans to employees 10.57 9.96 4.16 4.16 Security deposits FINANCIAL STATEMENTS Related parties (Refer note 32) 3.56 3.56 5.3 Investment in mutual funds (at fair value through profit and loss) Other than related parties 32.34 30.37 As at As at 382.61 43.89 March 31, 2021 March 31, 2020 Current Number Amount Number Amount Unquoted investments (Current) Loan to subsidiary (Refer note 41 (e)) 274.31 - ICICI Prudential P1543 Saving Fund-Growth Plan 36,12,365 117.16 36,12,365 108.44 Loans to employees 7.16 6.36 Security deposits ICICI Prudential P3223 Overnight Fund-Growth - - 27,93,962 30.06 Plan Other than related parties 2.20 2.05 UTI Overnight Fund-Growth Plan - - 2,21,205 60.00 Others Axis Overnight Fund- Regular Growth Plan 2,76,009 30.00 - - Credit impaired 2.74 2.74 SBI Liquid Fund L72SG Regular Growth Plan 1,56,109 50.00 - - Less : Provision for credit impaired loans (2.74) (2.74) 197.16 198.50 283.67 8.41

192 Annual Report 2020-21 193 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 7. Other Financial Assets 9. Inventories (unsecured and considered good, unless otherwise stated) (Valued at lower of cost and net realisable value) As at As at As at As at March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Non-current Raw material (including packing material) 597.10 465.59 Derivatives carried at fair value through other comprehensive Stock in progress 148.97 152.85 income Finished goods 284.77 251.88 - Forward exchange contracts used for hedging 28.84 - Stores and spares (including fuel) 254.93 238.27 Traded goods 0.93 1.73 Other financial assets carried at amortised cost 1,286.70 1,110.32 - Government grants and claims recoverable 15.86 15.86 Goods-in-transit included above : 44.70 15.86 Raw material (including packing material) 220.11 174.54 Current Finished goods 78.82 29.48 Derivatives carried at fair value through profit and loss Stores and spares (including fuel) 1.06 2.59 - Forward exchange contracts used for hedging 4.39 - Traded goods 0.33 0.08 STATUTORY REPORTS Derivatives carried at fair value through other comprehensive 300.32 206.69 income Notes - Forward exchange contracts used for hedging 45.91 - (i) The cost of inventories recognised as an expense includes ` 10.35 Crores (Previous year: ` 8.58 Crores) in respect - Interest rate swaps used for hedging 1.01 - of write-downs of inventory to net realisable value. Other financial assets carried at amortised cost (ii) Refer Note 15.1 for information on inventories pledged as security by the Company. - Insurance claim recoverable 0.33 5.79 (iii) The method of valuation of inventories has been stated in note 1.B.12 - Government grants and claims recoverable 154.11 163.84 10. Trade Receivables - Others 9.70 0.53 215.45 170.16 As at As at March 31, 2021 March 31, 2020 8. Other Assets Unsecured, considered good 1,012.00 768.71 (unsecured and considered good, unless otherwise stated) Unsecured, credit impaired 3.96 2.46 Less: Provision for credit impaired receivables (3.96) (2.46) As at As at 1,012.00 768.71 March 31, 2021 March 31, 2020 Non-current Notes Capital advances 158.56 15.16 (i) The credit period generally allowed on sales varies, on a case to case basis, and from business to business and is FINANCIAL STATEMENTS based on market conditions. Maximum credit period allowed is upto 120 days. Prepaid expenses 0.25 0.26 CENVAT/ Service tax/ Goods and Services Tax/ Sales tax recoverable 14.43 12.32 (ii) Age of receivables : Claims recoverable under Post EPCG scheme and others 0.12 0.22 As at As at 173.36 27.96 March 31, 2021 March 31, 2020 Current Within the credit period 887.68 573.84 Prepaid expenses 9.13 9.92 1 to 180 days past due 123.05 182.75 More than 180 days past due 5.23 14.58 CENVAT/ Service tax/ Goods and Services tax/ Sales tax recoverable 67.71 119.56 1,015.96 771.17 Export incentives recoverable 32.76 63.67 (iii) The Company has entered into receivables purchase agreements with banks to unconditionally and irrevocably Deposits with customs and excise authorities 17.41 8.13 sell, transfer, assign and convey all the rights, titles and interest of the Company in the receivables as identified. Advance to suppliers 87.82 49.50 Receivables sold as on March 31, 2021 are of ` 343.46 Crores (Previous year: ` 467.60 Crores). The Company has Others 1.81 0.73 derecognized these receivables as it has transferred its contractual rights to the banks with substantially all the 216.64 251.51 risks and rewards of ownership and retains no control over these receivables as the banks have the right to further sell and transfer these receivables with notice to the Company.

194 Annual Report 2020-21 195 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW (iv) The Company sold, with recourse, trade receivables amounting to ` 47.15 Crores (Previous Year: Nil) to a bank for 13.1 Fully paid equity shares cash proceeds. These trade receivables have not been derecognised because the Company retains substantially all Number of shares Amount of the risks and rewards, primarily credit risk. The amounts received on such transfer have been recognised as a secured bank loan (refer note 15). Balance at March 31, 2019 5,74,80,500 57.48 (v) No customer represents more than 10% (Previous year: Nil) of the total balances of trade receivables. Add : Movement during the year - - (vi) Refer Note 15.1 for information on trade receivables pledged as security by the Company. Balance at March 31, 2020 5,74,80,500 57.48 Add : Movement during the year 17,64,705 1.76 11. Cash and Cash Equivalents Balance at March 31, 2021 5,92,45,205 59.24 As at As at There are no bonus issue or buy back of equity shares during the period of five years immediately preceding March 31, 2021 March 31, 2020 the reporting date. Balances with banks Current accounts 73.15 87.97 During the year ended March 31, 2021 the Company has issued 17,64,705 fully paid up equity shares Exchange earners foreign currency (EEFC) accounts 12.82 9.54 equivalent to 3.07% of the existing paid up equity capital of the Company to Qualified Institutional Buyers Cash on hand 0.75 0.75 in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. These shares 86.72 98.26 were issued at an issue price of ` 4,250 per share (including securities premium of ` 4,240 per share) for an aggregate consideration of ` 750 Crores. The proceeds (net of share issue expenses of ` 11.99 Crores The disclosures regarding details of specified bank notes held and transacted during the period November 8, STATUTORY REPORTS 2016 to December 31, 2016 have not been made since the requirement does not pertain to financial year charged off against securities premium) have been utilised for repayment of borrowings. ended March 31, 2021. Terms/ rights attached to equity shares : The Company has only one class of equity shares having a par value of ` 10 per share. Each holder of 12. Bank Balances Other than Above equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. As at As at The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in March 31, 2021 March 31, 2020 the ensuing Annual General Meeting. The Board may from time to time pay to the members such interim Earmarked balances dividends as appear to it to be justified by the profits of the Company. - Margin money 1.95 2.89 - Unclaimed dividend accounts 6.57 6.04 During the year ended March 31, 2021, the amount of interim dividend recognised as distributions to equity Other deposit accounts shareholders was ` 24 per share (Previous year: ` 14 per share). - Deposit accounts with maturity beyond three months upto 135.19 0.10 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining twelve months assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion 143.71 9.03 to the number of equity shares held by the shareholders. 13. Share Capital 13.2 Details of shares held by the holding company As at As at

Number of fully paid FINANCIAL STATEMENTS March 31, 2021 March 31, 2020 Authorised share capital: ordinary shares 120,000,000 (Previous Year - 120,000,000) Equity shares of ` 10 each 120.00 120.00 As at March 31, 2021 1,000,000 (Previous Year - 1,000,000) Preference shares of ` 100 each 10.00 10.00 KAMA Holdings Limited, the Holding Company 3,00,49,000 1,200,000 (Previous Year - 1,200,000) Cumulative Preference shares of 6.00 6.00 As at March 31, 2020 ` 50 each KAMA Holdings Limited, the Holding Company 3,00,49,000 20,000,000 (Previous Year - 20,000,000) Cumulative Preference shares 200.00 200.00 of ` 100 each 13.3 Details of shares held by each shareholder holding more than 5% shares: 336.00 336.00 Class of shares / Name of As at March 31, 2021 As at March 31, 2020 Issued share capital: shareholder Number of % holding in Number of % holding in 63,301,960 (Previous Year - 61,537,255) Equity Shares of ` 10 each 63.30 61.54 shares held that class of shares held that class of Subscribed capital: shares shares 59,245,205 (Previous Year - 57,480,500) Equity Shares of ` 10 59.24 57.48 each fully paid up Fully paid equity shares Add: Forfeited shares - Amount originally paid up 1.02 1.02 KAMA Holdings Limited 3,00,49,000 50.72% 3,00,49,000 52.28% 60.26 58.50 Amansa Holding Private Limited 33,73,411 5.69% 41,78,636 7.27%

196 Annual Report 2020-21 197 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 14. Other Equity 14.3 Cash flow hedging reserve (Refer note 38.3.1 (C)) As at As at March 31, 2021 March 31, 2020 As at As at General reserve 648.54 573.54 March 31, 2021 March 31, 2020 Retained earnings 4,551.58 3,828.76 Balance at beginning of year (78.56) 28.65 Cash flow hedging reserve 7.53 (78.56) Recognised / (released) during the year 132.33 (164.79) Capital redemption reserve 10.48 10.48 Income tax related to above (46.24) 57.58 Capital reserve 219.19 219.19 Balance at end of year 7.53 (78.56) Debenture redemption reserve 62.50 75.00 Employee share based payment reserve 2.54 1.56 The Cash flow hedge reserve represents the cumulative effective portion of gains or losses arisingon Reserve for equity instruments through other comprehensive (4.22) (4.22) changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. income The cumulative gain or loss arising on changes in the fair value of the designated portion of the hedging instruments that are recognised and accumulated under the heading of cash flow hedging reserve will be Securities premium 736.25 - reclassified to profit or loss only when the hedged transaction affects the profit or loss, or included as a Cost of hedging reserve 0.62 - basis adjustment to the non-financial hedged item. 6,235.01 4,625.75 STATUTORY REPORTS 14.4 Capital redemption reserve 14.1 General reserve As at As at As at As at March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Balance at beginning of year 10.48 10.48 Balance at beginning of year 573.54 573.54 Increase / (decrease) during the year - - Increase / (decrease) during the year 75.00 - Balance at end of year 10.48 10.48 Balance at end of year 648.54 573.54 Capital Redemption Reserve is a statutory, non-distributable reserve into which amounts are transferred The general reserve is created from time to time on transfer of profits from retained earnings. General reserve following the redemption or purchase of a company’s own shares. The reserve is utilised in accordance with is created by transfer from one component of equity to another and is not an item of other comprehensive the provisions of the Act. income. Items included in general reserve will not be reclassified subsequently to profit and loss.

14.5 Capital reserve 14.2 Retained earnings As at As at As at As at March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020

Balance at beginning of year 219.19 219.19 FINANCIAL STATEMENTS Balance at beginning of year 3,828.76 2,956.92 Increase / (decrease) during the year - - Profit for the year 925.06 974.18 Balance at end of year 219.19 219.19 Other comprehensive income arising from remeasurement of 1.57 (5.33) defined benefit obligation * (Refer note 33.2 (iv)) Capital reserve represents amounts received pursuant to Montreal Protocol Phaseout Programme of Payment of dividend on equity shares (141.31) (80.47) refrigerant gases. Corporate tax on dividend - (16.54) Transfer to debenture redemption reserve (62.50) - 14.6 Debenture redemption reserve Balance at end of year 4,551.58 3,828.76 As at As at March 31, 2021 March 31, 2020 The amount that can be distributed as dividend by the Company to its equity shareholders is determined Balance at beginning of year 75.00 75.00 based on the financial statements of the Company and also considering the requirements ofthe Transfer from retained earnings 62.50 - Companies Act, 2013. Transfer to general reserve (75.00) - *net of income tax of ` (0.84) Crore (Previous year: ` 2.86 Crores) Balance at end of year 62.50 75.00

198 Annual Report 2020-21 199 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW The Company has issued non-convertible debentures. The Company has created debenture redemption 14.10 Cost of hedging reserve reserve out of the profits available for payment of dividend. (Refer note 38.3.1 (C)) As at As at 14.7 Employee share based payment reserve March 31, 2021 March 31, 2020 Balance at beginning of year - - As at As at Recognised / (released) during the year 0.95 - March 31, 2021 March 31, 2020 Income tax related to above (0.33) - Balance at beginning of year 1.56 0.58 Balance at end of year 0.62 - Increase / (decrease) during the year 0.98 0.98 The cost of hedging reserve reflects gain or loss on the portion excluded from the designated hedging Balance at end of year 2.54 1.56 instrument that relates to the forward element of forward contracts. It is initially recognised in other comprehensive income and accounted for similarly to gains or losses in the cash flow hedging reserve. The Company has allotted equity shares to certain employees under an employee share purchase scheme. The employee share based payment reserve is used to recognise the value of equity settled share 15. Borrowings based payments provided to such employees as part of their remuneration. Refer note 34 for further As at As at STATUTORY REPORTS details of the scheme. March 31, 2021 March 31, 2020 Non-current 14.8 Reserve for equity instruments through other comprehensive income Secured As at As at 2,500 Nos., Three Months T Bill plus 188 bps (2020: 3,000 Nos., 250.00 299.97 March 31, 2021 March 31, 2020 7.33%), listed, secured redeemable non-convertible debentures of ` 10 lakhs each* (Refer note 15.1.1 and 15.1.2) Balance at beginning of year (4.22) (4.22) Term Loans from banks* (Refer note 15.1.3) 1,387.81 1,338.87 Net fair value gain on investment in equity instruments at FVTOCI - - Term Loans from others* (Refer note 15.1.4) 175.01 220.78 Balance at end of year (4.22) (4.22) Less: Current maturities of long-term borrowings* (Refer note 19) (390.58) (742.19) 1,422.24 1,117.43 This reserves represents the cumulative gains and losses arising on the revaluation of equity instruments * Above amount of borrowings are net of upfront fees paid ` 2.84 Crores (Previous year: ` 5.06 Crores) measured at fair value through other comprehensive income, net of amount reclassified to retained earnings when those assets have been disposed of. Current

14.9 Securities premium Secured FINANCIAL STATEMENTS Loans repayable on demand from banks (Refer note 15.1.5.(i)) 233.38 244.45 As at As at Bills discounted with banks (Refer note 15.1.5.(ii)) 47.15 - March 31, 2021 March 31, 2020 280.53 244.45 Balance at beginning of year - - Increase / (decrease) during the year 736.25 - Unsecured Balance at end of year 736.25 - Loans repayable on demand from banks 381.73 360.35 Commercial papers from banks and others # 100.00 200.00 Securities premium represents the amount received in excess of the face value upon issue of equity shares. 481.73 560.35 The same may be inter-alia utilised, for issue of fully paid bonus shares or for buy-back of equity shares by 762.26 804.80 the Company, in accordance with the provisions of the Act. Expenses amounting to ` 11.99 Crores incurred

on issue of equity shares under Qualified Institutional Placement have been charged off against securities # Maximum amount due during the year is ` 600.00 Crores (Previous year: ` 400.00 Crores) premium (Refer note 13.1). There have been no defaults in repayment of principal and interest on borrowings during the reporting periods.

200 Annual Report 2020-21 201 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 15.1 Details of security of the secured loans: Details of Loan As at As at Security Details of Loan As at As at Security March 31, March 31, March 31, March 31, 2021# 2020# 2021# 2020# Moveable property 3 (i) Term loan from Banks * 1,390.07 1,343.02 (a)(i) Out of the loans as at 3(i), loans aggregating 1 Nil (Previous Year 3,000), 7.33%, - 300.00 Debentures were secured by hypothecation to ` 1099.30 Crores (Previous Year – ` 1154.12 Listed, Secured Redeemable Non- of Company’s moveable properties, Crores) are secured by hypothecation of Convertible Debentures of ` 10 both present and future, situated at Company’s moveable properties, both present lakhs each* Manali, Viralimalai (other than moveable and future, situated at Manali, Viralimalai (other assets of Coated Fabrics Business) and than moveable assets of Coated Fabrics Business) Gummidipoondi in the State of Tamil Nadu, Terms and conditions and Gummidipoondi in the State of Tamil Nadu, Jhiwana in the State of Rajasthan, Malanpur a) Redeemable at face value in Jhiwana in the State of Rajasthan, Malanpur and Special Economic Zone, Indore in the one single installment at the and Special Economic Zone, Indore in the State State of Madhya Pradesh, Kashipur in the end of 3rd year from the date of of Madhya Pradesh and Kashipur (other than State of Uttarakhand (other than moveable allotment. moveable assets of Laminated Fabrics Business) in STATUTORY REPORTS assets of Laminated Fabrics Business) and the State of Uttarakhand and Dahej in the State of Dahej in the State of Gujarat (excluding b) Coupon is payable annually on Gujarat (save and except certain assets). th certain assets) and an equitable mortgage 30 June every year. (a)(ii) Out of the loans as at 3(i), loans of Company’s immoveable properties, both aggregating to ` 290.77 Crores (Previous Year present and future, situated at Viralimalai, – ` 188.90 Crores) are in the process of being Gummidipoondi (freehold land) in the secured by hypothecation of Company’s moveable State of Tamil Nadu, Jhiwana in the State properties, both present and future, situated at of Rajasthan and Kashipur in the State of Manali, Viralimalai(other than moveable assets Uttarakhand. of Coated Fabrics Business) and Gummidipoondi in the State of Tamil Nadu, Jhiwana in the State 2 2,500 (Previous Year : Nil), 250.00 - Debentures are secured by hypothecation of Rajasthan, Malanpur and Special Economic 3 Months T-Bill + 188 bps, of Company’s moveable properties, Zone, Indore in the State of Madhya Pradesh Listed, Secured, Redeemable, both present and future, situated at and Kashipur(other than moveable assets of Non-Convertible Debentures Manali, Viralimalai (other than moveable Laminated Fabrics Business) in the State of of the face value of assets of Coated Fabrics Business) and Uttarakhand and Dahej in the State of Gujarat 10 lakhs each* Gummidipoondi in the State of Tamil Nadu,

(save and except certain assets). FINANCIAL STATEMENTS Jhiwana in the State of Rajasthan, Malanpur Immoveable property Terms and conditions and Special Economic Zone, Indore in the (b)(i) Out of the loans as at 3(i) loans aggregating State of Madhya Pradesh, Kashipur in the a) Redeemable at face value in one to ` 849.30 Crores (Previous Year – ` 1343.02 State of Uttarakhand (other than moveable single installment at the end of Crores) are secured by equitable Mortgage of nd assets of Laminated Fabrics Business) and 2 year from the date of Company’s immoveable properties, both present Dahej in the State of Gujarat (excluding allotment. and future, situated at Viralimalai, Gummidipoondi certain assets). (freehold land) in the State of Tamil Nadu and b) Coupon is payable on a Kashipur in the State of Uttarakhand. quarterly basis every year. (b)(ii) Out of the loans as at 3(b)(i)) loans aggregating to ` 400.99 Crores (Previous Year – ` 544.56 Crores) are additionally secured by equitable Mortgage of Company’s immoveable properties, both present and future, situated at Jhiwana in the State of Rajasthan.

202 Annual Report 2020-21 203 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 15.2 Terms of loans Details of Loan As at As at Security As at March 31, 2021 March 31, March 31, Non Current Borrowings 2021# 2020# (b)(iii) Out of the loans as at 3(b)(i) loans Loan Category Frequency of Interest rate Up to Up to Up to From aggregating to ` Nil (Previous Year – ` 75.56 Crores) principal March 31, March 31, March 31, 2024 to are additionally secured by equitable Mortgage of repayments 2022 2023 2024 2027 Company’s immoveable properties, both present and Redeemable Redeemable at Floating rate at - 250.00 - - future, situated at Malanpur in the State of Madhya Non-Convertible face value 5.23% Pradesh (save and except superstructures). Debentures on maturity (b) (iv) Out of the loans as at 3(i), the term loans Term loan from Quarterly Ranging from 331.38 321.67 217.49 169.26 aggregating to: banks payments 0.71% to 6.25% (a) ` Nil (Previous Year - ` 565.48 crores) were to Half yeary Ranging from 17.63 55.76 23.26 232.62 be secured by equitable mortgage of immoveable payments 1.23% to 7.85% properties at Viralimalai, Gummidipoondi (freehold Yearly payments Floating rate at 4.00 1.00 1.00 -

land) in the State of Tamil Nadu and Kashipur in 7.25% STATUTORY REPORTS the State of Uttarakhand in the previous year. Bullet Fixed rate of - 15.00 - - (b) ` 38.50 Crores (Previous Year – ` 43.50 Crores) 6.65% are to be further secured by equitable mortgage Term loan from Half yeary Floating rate at 39.00 39.00 39.00 58.58 of Company’s immoveable properties, both present others payments 2.01% and future, situated at Jhiwana in the State of 392.01 682.43 280.75 460.46 Rajasthan. ` 4 (i) Term loans from others 175.59 221.66 Loan of ` 175.59 Crores (Previous Year – ` 221.66 Amounts mentioned above are gross of upfront fees paid of 2.84 Crores. Crores) is secured by the hypothecation and Current Borrowings equitable mortgage of Company’s moveable and Short term borrowings are either payable in one installment within one year or repayable on demand. immoveable properties at Dhar in the State of For short term borrowings, interest rate ranges from 0.32% to 4.73%. Madhya Pradesh. 5 (i) Loans repayable on demand from 233.38 244.45 Secured by hypothecation of stocks, stores and book As at March 31, 2020 banks debts (current assets), both present and future at Loan Category Frequency Interest rate Up to Up to Up to From Manali, Viralimalai (other than current assets of Coated of principal March 31, March 31, March 31, 2023 to Fabrics Business) and Gummidipoondi in the State repayments 2021 2022 2023 2027

of Tamil Nadu, Jhiwana in the State of Rajasthan, FINANCIAL STATEMENTS Redeemable Redeemable at Fixed rate of 300.00 - - - Malanpur and Indore in the State of Madhya Pradesh Non-Convertible face value 7.33% and Kashipur (other than current assets of Laminated Debentures on maturity Fabrics Business) in the State of Uttarakhand. Term loan from Quarterly Ranging from 217.56 284.60 255.09 239.70 (ii) Bills discounted with banks 47.15 - Secured against certain trade receivables of the banks payments 0.94% to 7.40% Company. (Also refer note 10(iv)) Half yeary Ranging from 5.00 6.00 32.50 - *Such hypothecation in respect of Non convertible debentures mentioned in point no. 2 and hypothecation and equitable payments 2.71% to 9.05% mortgage mentioned in point no 3 rank pari-passu inter se between term loans from banks / Non convertible debentures. (Previous year: Such hypothecation and equitable mortgage in point no 1 and 3 rank pari-passu between term loans from Yearly payments Ranging from 106.00 104.00 1.00 1.00 banks / Non convertible debentures). 7.65% to 8.25% The term loans figures from bank as on March 31, 2020 as mentioined in point 3(i)(a)(i) and 3(i)(b)(i) above includes amount Bullet Fixed rate of - - 15.00 - of ` 200 Crores, which was repaid during the current financial year. However, charge created to secure the said loan against the assets mentioned in the said points is yet to be released. 6.65% During the current financial year, the company has taken term loan of` 500 Crores which was secured by assets as mentioned Term loan from Half yearly Floating rate at 115.85 40.29 40.29 100.80 in point 3(i)(a)(i). This loan was repaid during the current year only, however, charge created against these assets is yet others instalments 3.28% to be released. 744.41 434.89 343.88 341.50 #Gross of upfront fees paid ` 2.84 Crores (Previous year : ` 5.06 Crores)

204 Annual Report 2020-21 205 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Amounts mentioned above are gross of upfront fees paid of ` 5.06 Crores. 16. Provisions As at As at CURRENT BORROWINGS March 31, 2021 March 31, 2020 Short term borrowings are either payable in one installment within one year or repayable on demand. Non-Current For short term borrowings, interest rate ranges from 2.41% to 7.80%. Provision for employee benefits Provision for compensated absences (Refer note 33.3) 38.06 31.79 Terms of repayment Provision for retention pay (Refer note 33.3) 0.17 1.49 1) Reedemable non convertible debenture of ` 300 Crores were repaid in current year (Previous year: 38.23 33.28 ` 300 Crores are repayable in one bullet instalment in June 2020). Current 2) Reedemable non convertible debenture of ` 250 Crores are repayable in one bullet instalment in Provision for employee benefits September 2022 (Previous year: Nil). Provision for compensated absences (Refer note 33.3) 7.00 5.50 Provision for retention pay (Refer note 33.3) - 0.14 3) Rupee term loans of ` 38.50 Crores are repayable in 3 half yearly instalments from August 2021 7.00 5.64 (Previous year: ` 43.50 Crores repayable in 5 half yearly instalments from August 2020). 17. DEFERRED TAX (NET) 4) Rupee term loans of ` 24.66 Crores are repayable in 6 quarterly instalments from June 2021 (Previous STATUTORY REPORTS year: ` 41.10 Crores repayable in 10 quarterly instalments from June 2020). The following is the analysis of deferred tax assets / (liabilities) presented in balance sheet 5) Rupee term loans of ` 200.00 Crores were prepaid in current year in July 2020 (Previous year: As at As at ` 200.00 Crores repayable in 2 annual instalments from August 2020). March 31, 2021 March 31, 2020 Deferred tax assets 293.83 428.40 6) Rupee term loans of ` 6.00 Crores are repayable in 3 annual instalments from December 2021 Deferred tax liabilities (620.29) (552.82) (Previous year: ` 12.00 Crores repayable in 4 annual instalments from December 2020). Deferred tax liabilities, net (326.46) (124.42) 7) Rupee term loans of ` 250.00 Crores are repayable in 16 quarterly instalments from July 2021 (Previous year: Nil). The major components of deferred tax assets / (liabilities) arising on account of temporary differences are as follows: 8) Foreign currency term loan of ` 114.30 Crores are repayable in 5 quarterly instalments from June 2021 2020-21 Opening Recognised Recognised MAT Credit Closing (Previous year: ` 188.90 Crores repayable in 8 quarterly instalments from September 2020). balance in in other Entitlement balance 9) Foreign currency term loan of ` 361.33 Crores are repayable in 16 quarterly instalments from May 2021 statement comprehensive utilised (Previous year: ` 412.90 Crores repayable in 19 quarterly instalments from August 2020). of profit income and loss ` 10) Foreign currency term loan of 143.69 Crores are repayable in 11 quarterly instalments from April 2021 Deferred tax assets (Previous year: ` 188.90 Crores repayable in 14 quarterly instalments from July 2020). Expenses deductible in future years 13.77 1.31 - - 15.08 FINANCIAL STATEMENTS 11) Foreign currency term loan of ` 75.56 Crores were repaid in current year (Previous year: ` 75.56 Provision for credit impaired loans / 0.61 0.38 - - 0.99 Crores repayable in 2 half yearly instalments from September 2020). receivables MAT Credit Entitlement 367.07 5.38 - (97.79) 274.66 ` 12) Foreign currency term loan of 175.59 Crores are repayable in 9 half yearly instalments from April 2021 Cash flow hedges 42.30 - (42.30) - - ` (Previous year: 221.66 Crores repayable in 11 half yearly instalments from April 2020). Others 4.65 (1.55) - - 3.10 13) Foreign currency term loan of ` 15.00 Crores are repayable in one bullet instalment in June 2022 428.40 5.52 (42.30) (97.79) 293.83 (Previous year: ` 15.00 Crores is repayable in one bullet instalment in June 2022). Deferred tax liabilities Property, plant and equipment and (538.64) (65.18) - - (603.82) 14) Foreign currency term loan of ` 145.82 Crores are repayable in 9 quarterly instalments from April 2021 intangible assets (Previous year: ` 165.16 Crores repayable in 12 quarterly instalments from July 2020). Investment in mutual funds (7.95) (2.90) - - (10.85) Cash flow hedges - - (4.27) - (4.27) 15) Foreign currency term loan of ` 290.77 Crores are repayable in 5 half yearly instalments from Others (6.23) 4.88 - - (1.35) March 2022 and then 12 monthly instalments from April 2024 onwards (Previous year: Nil) (552.82) (63.20) (4.27) - (620.29) Total (124.42) (57.68) (46.57) (97.79) (326.46)

206 Annual Report 2020-21 207 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 2019-20 Opening Recognised in Recognised Closing 18.1 Total outstanding dues of micro enterprises and small enterprises balance statement of in other balance Trade payables include the following dues to micro and small enterprises covered under “The Micro, Small profit and loss comprehensive and Medium Enterprises Development Act, 2006” (MSMED) to the extent such parties have been identified income from the available information. Deferred tax assets As at As at Expenses deductible in future years 14.74 (0.97) - 13.77 March 31, 2021 March 31, 2020 Provision for credit impaired loans / 0.58 0.03 - 0.61 Amount remaining unpaid to suppliers under MSMED receivables (suppliers) as at the end of year MAT Credit Entitlement 330.34 36.73 - 367.07 Cash flow hedges - - 42.30 42.30 - Principal amount** 52.02 35.88 Others 2.76 (0.97) 2.86 4.65 - Interest due thereon - - 348.42 34.82 45.16 428.40 Amount of payments made to suppliers beyond the Deferred tax liabilities appointed day during the year Property, plant and equipment and (625.93) 87.29 - (538.64) - Principal amount - -

intangible assets STATUTORY REPORTS - Interest actually paid under section 16 of MSMED/ - 1.02 Investment in mutual funds (8.24) 0.29 - (7.95) settled Cash flow hedges (15.28) - 15.28 - Amount of interest due and payable for delay in payment - - Others (1.20) (5.03) - (6.23) (which has been paid but beyond the appointed day (650.65) 82.55 15.28 (552.82) during the year) but without adding interest under Total (302.23) 117.37 60.44 (124.42) MSMED (i) Section 115BAA of the Income Tax Act, 1961 was introduced by the Taxation Laws (Amendment) Ordinance, 2019. Interest accrued and remaining unpaid at the end of During the previous year, based on the estimate of expected timing of exercising of the option under Section 115BAA, the Company had re-measured its deferred tax balances. Consequently, credit of ` 136.11 Crores (net the year of MAT adjustment of ` 74.02 Crores) was recorded in the Statement of Profit and Loss during the year ended - Interest accrued during the year - - March 31, 2020. - Interest remaining unpaid as at the end of the year - - (ii) MAT credit entitlement of ` 74.02 Crores (out of total ` 87.85 Crores generated during the previous year) expiring in the financial year ending March 31, 2035 was not recognised in the statement of profit and loss of the previous Interest remaining due and payable even in the - - year, due to expected timing of exercising of the option under section 115BAA of Income Tax Act, 1961. succeeding years, until such date when the interest (iii) As on March 31, 2019 there were capital losses of ` 186.32 Crores expiring in the financial year ending March 31, dues are actually paid, for the purpose of disallowance 2023 on which no deferred tax asset was created, due to lack of probablility of future capital gains against which of a deductible expenditure such deferred tax assets can be realised. Pursuant to recognition of long term capital gain in the previous year, such capital losses were set-off in the previous year (Refer note 40). **including payable to micro enterprises and small enterprises included in other financial liabilities (refer note 19). FINANCIAL STATEMENTS

18. Trade Payables 19. Other Financial Liabilities As at As at As at As at March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Total outstanding dues of micro enterprises and small enterprises# 33.37 30.36 Non-Current Total outstanding dues of creditors other than micro enterprises Derivatives carried at fair value through other comprehensive income and small enterprises Forward exchange contracts used for hedging - 21.43 - Acceptances* 107.61 92.59 Interest rate swaps used for hedging 0.54 1.44 - Other than acceptances 1,055.51 834.49 1,196.49 957.44 0.54 22.87 #Refer to note 18.1 Current *Acceptances represent invoices discounted by vendors with banks. Current maturities of long-term borrowings (Refer note 15) 390.58 742.19

208 Annual Report 2020-21 209 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW As at As at 22. Revenue from Operations* March 31, 2021 March 31, 2020 Year ended Year ended Interest accrued but not due on borrowings 4.47 22.64 March 31, 2021 March 31, 2020 Unpaid dividends* 6.57 6.04 Sale of products Security deposits received 8.62 6.86 Manufactured goods 6,817.90 6,066.34 Payables to capital creditors Traded goods 69.59 120.20 Total outstanding dues of micro enterprises and small 18.65 5.52 6,887.49 6,186.54 enterprises# Total outstanding dues of creditors other than micro 27.65 29.69 Other operating revenues enterprises and small enterprises Claims 0.52 0.25 Derivatives carried at fair value through profit and loss Export and other incentives 69.23 101.92 Forward exchange contracts used for hedging - 0.06 Scrap sales 28.36 28.75

Derivatives carried at fair value through other comprehensive STATUTORY REPORTS Other operating income 2.72 13.38 income 100.83 144.30 Forward exchange contracts used for hedging - 44.19 6,988.32 6,330.84 Interest rate swaps used for hedging - 0.98 Others 43.12 33.55 Reconciliation of revenue from sale of products with the contracted price 499.66 891.72 Year ended Year ended *Amount will be credited to investor education and protection fund if not claimed within seven years from the date of March 31, 2021 March 31, 2020 declaration of dividend. Contracted price 7,017.01 6,284.35 #Refer to note 18.1 Less: Discounts, allowances and claims (129.52) (97.81) 20. Tax Assets and Liabilities Sale of products 6,887.49 6,186.54 As at As at *Refer note 40(f) March 31, 2021 March 31, 2020 Non - Current tax assets 23. Other Income*

Advance tax (net of provision for tax) 33.74 35.03 Year ended Year ended FINANCIAL STATEMENTS March 31, 2021 March 31, 2020 Current tax liablities Interest income Provision for tax (net of advance tax) 9.73 9.75 - from customers 0.01 0.08 - on loans and deposits 1.58 1.06 21. Other Liabilities - on others 7.65 11.20 As at As at Net gain on sale/ discarding of property, plant and equipment 0.39 12.85 March 31, 2021 March 31, 2020 Net gain on financial assets measured at fair value through profit 25.45 9.38 Current and loss Contract liability (Refer note 39) 13.53 10.75 Net foreign currency exchange fluctuation gains - 1.87 Statutory liabilities 26.00 17.77 Provision/ liabilities no longer required written back 11.42 2.86 Payable to gratuity trust (Refer note 33.2) 4.52 15.82 Other non-operating income 16.80 13.99 Other payables 31.74 35.95 63.30 53.29 75.79 80.29 *Refer note 40(f)

210 Annual Report 2020-21 211 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 24.1 Cost of Materials Consumed 25. Employee Benefits Expense* Year ended Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Opening stock of raw materials Salaries and wages, including bonus 444.80 402.31 - Continuing operations 465.59 530.13 Contribution to provident and other funds 33.74 31.70 - Discontinued operations - 27.89 Add: Purchases of raw materials Workmen and staff welfare expenses 54.61 52.09 - Continuing operations 3,410.01 3,134.31 Employee share based payment expense (Refer note 34) 0.98 0.98 - Discontinued operations - 26.42 534.13 487.08 Less: Closing stock of raw materials *Refer note 40(f) - Continuing operations 597.10 465.59 Cost of materials consumed * 26. Finance Cost* - Continuing operations 3,278.50 3,198.85 - Discontinued operations - 54.31 Year ended Year ended March 31, 2021 March 31, 2020 *including packing material Interest cost ^ STATUTORY REPORTS 24.2 Purchases of Stock in Trade* - Non-convertible debentures 12.27 21.99 Year ended Year ended - Term loans and others 82.52 130.13 March 31, 2021 March 31, 2020 - Lease liabilities 6.49 6.70 Purchase of stock in trade 60.49 91.40 Other borrowing costs 9.15 10.13 60.49 91.40 Exchange differences regarded as an adjustment to borrowing costs 0.78 13.16 111.21 182.11 *Refer note 40(f) ^pertains to liabilities measured at amortised cost. 24.3 Changes in inventories of finished goods, work in progress and stock in trade *Refer note 40(f) Year ended Year ended 27. Depreciation and Amortisation Expense* March 31, 2021 March 31, 2020 Inventories at the end of the year : Year ended Year ended - Continuing operations March 31, 2021 March 31, 2020 Stock-in-Process 148.97 152.85 Depreciation of property, plant and equipment 358.32 328.99 Finished goods 284.77 251.88 Depreciation of right-of-use assets 18.06 16.74 Traded goods 0.93 1.73 Amortisation of intangible assets 7.22 7.48 FINANCIAL STATEMENTS 434.67 406.46 383.60 353.21 Inventories at the beginning of the year : - Continuing operations *Refer note 40(f) Stock-in-Process 152.85 133.75 28. Other Expense* Finished goods 251.88 174.15 Traded goods 1.73 2.82 Year ended Year ended 406.46 310.72 March 31, 2021 March 31, 2020 - Discontinued operations Stores and spares consumed 51.79 54.10 Stock-in-Process - 0.34 Power and fuel 632.06 628.87 Finished goods - 5.66 Labour production 36.93 40.62 Traded goods - - Rent** 15.62 13.66 - 6.00 Net (increase) / decrease Repairs and maintenance - Continuing operations (28.21) (95.74) - Buildings 5.15 6.07 - Discontinued operations - 6.00 - Plant and machinery 152.85 151.12

212 Annual Report 2020-21 213 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Year ended Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 - Others 30.33 34.30 Deferred tax Insurance 33.26 35.07 - MAT credit entitlement Rates and taxes 8.37 35.78 In relation to current year - (13.83) Freight charges 238.39 188.92 Adjustment in relation to earlier years (5.38) (22.90) (5.38) (36.73) Expenditure on corporate social responsibility*** 12.88 12.00 - Others Legal and professional charges 27.39 31.00 In relation to current year 58.71 (83.09) Travelling and conveyance 3.89 17.16 Adjustment in relation to earlier years 4.35 2.45 Directors' sitting fees 0.27 0.21 63.06 (80.64) Selling commission 18.29 12.56 (b) Tax expense related to discontinued operations Credit impaired assets provided/ written off 12.06 1.74 Current tax Property, plant and equipment provided/ written off 1.37 2.88 In relation to current year - 61.23

Auditor remuneration^ - 61.23 STATUTORY REPORTS - Audit fees 0.65 0.50 The income tax expenses for the year can be reconciled to the accounting profits as follows: - For limited review of unaudited financial results 0.54 0.35 Year ended Year ended - For Corporate governance, consolidated financial statements 0.07 0.09 March 31, 2021 March 31, 2020 and other certificates Profit before tax from continuing operations 1,309.97 780.48 - For tax audit 0.08 0.06 Profit before tax from discontinued operations - 241.82 - Reimbursement of out of pocket expenses 0.07 0.09 Total profit before tax 1,309.97 1,022.30 Effluent disposal expenses 76.18 77.49 Net foreign currency exchange fluctuation loss 7.21 - Income Tax Expenses @ 34.944% (Previous year: 34.944%) 457.76 357.23 Miscellaneous expenses 36.23 42.10 Effect of deductions (research and development, share issue (54.59) (76.74) expenses and deductions under chapter VI A of Income Tax Act) 1,401.93 1,386.74 Effect of expenses that are not deductible in determining taxable 5.48 6.25 *Refer note 40(f) profit **Refer to note 37 Effect of income taxable at lower rate - (26.00) ***Refer to note 41(f) Effect of credit recognised on set-off of carried forward long term - (43.40) ^ Excluding fees of ` 0.43 Crore (Previous year: Nil) for QIP related attestation and certification, netted off from FINANCIAL STATEMENTS securities premium. capital losses (Refer note (iii) below) Effect of re-measurement of deferred tax balances / lower tax (22.73) (136.11) 29. Income Tax Recognised in Profit and Loss rate on certain temporary differences pursuant to Section 115BAA Year ended Year ended of Income Tax Act (Refer note 17(i)) March 31, 2021 March 31, 2020 Others - (0.95) Tax expense related to continuing operations 384.91 (13.11) Income tax expenses recognised in statement of profit 385.92 80.28 Tax expense related to discontinued operations - 61.23 and loss in relation to current year 384.91 48.12 Income tax credit recognised in statement of profit and loss in (1.01) (32.16) (a) Tax expense related to continuing operations relation to earlier years (Refer note (ii) below) Current tax Total Income tax expenses recognised in profit and loss 384.91 48.12 In relation to current year 327.21 115.97 Notes: Adjustment in relation to earlier years 0.02 (11.71) (i) The tax rate used for the current year reconciliation above is the corporate tax rate of 34.944% (Previous year: 327.23 104.26 34.944%) payable by corporate entities in India on taxable profits under the Indian tax law.

214 Annual Report 2020-21 215 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW (ii) Income tax in relation to earlier years includes tax expense of ` 1.62 Crores (Previous year: tax credit of ` 22.58 (ii) The Company had received a draft assessment order for assessment year 2016-17 on December Crores) which is related to finalization and determination of deduction/allowance claimed for earlier years under 29, 2019 in which adjustments amounting to ` 367.37 Crores were proposed on account of Chapter-VIA of the Income-tax Act, 1961, for generation of power from captive power plants which is based on transfer pricing adjustments etc. which were pending before Dispute Resolution Panel as at finalization of transfer pricing study /tax audit reports of the earlier years. ` March 31, 2021. On April 30, 2021 the Company has received the final assessment order wherein (iii) The Company had 186.32 Crores of carried forward long term capital losses as per Income Tax Act, 1961, ` available for set off, on which no deferred tax asset was recognized till March 31, 2019. Pursuant to recognition of adjustments amounting to 118.49 Crores have been made on account of transfer pricing long term capital gain, a tax credit of ` 43.40 Crores was recognised during the previous year in respect of such adjustments, research and development expenditure and others etc. and demand of ` 22.66 losses in accordance with Ind AS 12 - “Income Taxes”. Crores has been raised. The Company will file rectification application against research and development disallowance as well as towards certain computation error and for rest of the issues, 30. Income Tax Recognised in Other Comprehensive Income appeal will be filed before ITAT. Based on the facts of the case and the Company’s assessment, Year ended Year ended the Company is of the view that the proposed adjustments are not likely to sustain. March 31, 2021 March 31, 2020 (iii) The Company has received a show cause notice for assessment year 2017-18 on April 23, 2021 Arising on income and expense recognised in other wherein adjustments amounting to ` 377.44 Crores have been proposed on account of transfer comprehensive income pricing adjustments, research and development expenditure and others etc. Draft assessment Net (gain)/ loss on designated portion of hedging instruments in (46.24) 57.58 order is yet to be passed by the National E-Assessment Centre. Based on the facts of the case cash flow hedges and the Company’s assessment, the Company is of the view that the proposed adjustments are Cost of Hedging Reserve (0.33) - STATUTORY REPORTS Remeasurement of defined benefit obligation (0.84) 2.86 not likely to sustain. (47.41) 60.44 c. In February 2019, the Honorable Supreme Court of India in its judgement opined on the applicability Bifurcation of the income tax recognised in other of allowances that should be considered to measure obligations under Employees Provident Funds and comprehensive income into: Miscellaneous Provisions Act, 1952. The Company believes that there are interpretative challenges on Items that will be reclassified to profit or loss (46.57) 57.58 the application of judgement retrospectively and therefore had applied the judgement on a prospective Items that will not be reclassified to profit or loss (0.84) 2.86 basis from previous year onwards. (47.41) 60.44 d. Guarantees given to banks and others for repayment of financial facilities availed by wholly owned 31. Contingent Liabilities and Commitments subsidiaries are as below: As at As at Name of the Currency Guarantee Loan/payable outstanding against the March 31, 2021 March 31, 2020 subsidiary amount as at guarantee as at a. Claims against the Company not acknowledged as debts March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 ` ` ` ` Goods and services tax, excise duty, custom duty and service tax* 23.11 21.33 In In In In In In In In Sales tax and entry tax ** 20.38 19.08 Millions Crores^ Millions Crores^^ Millions Crores^ Millions Crores^^ Income tax (also refer note b(ii) below) **** 3.74 5.79 SRF Flexipak South USD 46.00 336.49 46.00 347.58 3.00 21.95 8.00 60.45 Africa (Pty) Limited Others *** 13.19 11.85 USD * - - 12.00 90.67 - - 0.95 7.15 USD * - - 14.95 112.96 - - 0.43 3.24 FINANCIAL STATEMENTS ` ` * Amount deposited against contingent liability 1.79 Crores (Previous year: 2.72 Crores) ZAR * - - 80.00 33.92 - - 60.24 25.54 ** Amount deposited against contingent liability ` 7.59 Crores (Previous year: ` 4.62 Crores) SRF Global BV EUR # 22.00 188.72 22.00 181.68 - - 20.00 165.16 ` ` *** Amount deposited against contingent liability 0.40 Crore (Previous year: 0.49 Crore) USD 44.00 321.86 44.00 332.46 10.00 73.16 8.45 63.85 ` ` **** Amount deposited against contingent liability 3.09 Crores (Previous year: 5.68 Crores) USD * - - 66.00 498.70 - - 60.00 453.36 *** Includes demand by Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Ltd. (MPPKVV Ltd) of ` 11.40 Crores SRF Industries THB * - - 682.00 156.86 - - 50.00 11.50 (Previous year: ` 10.06 Crores) which is disputed by the Company. (Thailand) Limited EUR 18.00 154.40 18.00 148.64 18.00 154.40 18.00 148.64 EUR 12.76 109.46 - - 8.56 73.44 - - All the above matters are subject to legal proceedings in the ordinary course of business. In the opinion of SRF Europe Kft EUR 22.00 188.72 22.00 181.68 - - 1.50 12.39 the management, the legal proceedings, when ultimately concluded, will not have a material effect on the (Hungry) EUR 77.00 660.51 77.00 635.87 57.50 493.24 47.92 395.69 results of the operations or financial position of the Company. *The loan under the said guarantee has been repaid during the current year and the guarantee has been withdrawn. b. (i) The Company has been served with show cause notices regarding certain transactions as to #The loan under the said guarantee has been repaid during the current year and the Company is in the process of withdrawing why additional customs / excise duty / service tax amounting to ` 18.58 Crores (Previous year: this guarantee. ^ ` 25.61 Crores) should not be levied. The Company has been advised that the contention of the Converted using closing exchange rate - USD 73.15, Euro 85.780 and THB 2.34 ^^ department is not tenable and hence the show cause notice may not be sustainable. Converted using closing exchange rate - USD 75.56, Euro 82.580, ZAR 4.24 and THB 2.30

216 Annual Report 2020-21 217 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW e. The amounts shown above represents the best possible estimates arrived at on the basis of available Post Employment Benefit Plans Trust Relative of KMP# information. The uncertainties and possible reimbursements are dependent on the outcome of the SRF Limited Officers Provident Fund Trust Sushil Ramola different legal processes which have been invoked by the Company or the claimants as the case may SRF Employees Gratuity Trust Shanthi Narayan be and therefore cannot be predicted accurately or relate to a present obligations that arise from SRF Officers Gratuity Trust Murugappan Vellayan Subbiah past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate cannot be made. KMP of Holding Company# Relative of KMP of Holding Company# f. Capital and other commitments Ekta Maheshwari Nirmala Kothari As at As at March 31, 2021 March 31, 2020 Enterprises over which relative of KMP (i) Estimated amount of contracts remaining to be 690.96 153.75 has control# executed on capital account and not provided for Murugappa & Sons (net of advances) #Only with whom the Company had transactions during the year (ii) The Company has other commitments, for purchases / sales orders which are issued after considering requirements per operating cycle for purchase / sale of goods and services, employee benefits including 32.2 Transactions with related parties union agreements in normal course of business. The Company does not have any long term contracts STATUTORY REPORTS including derivative contracts for which there will be any material foreseeable losses which have not been Year ended Year ended provided for. March 31, 2021 March 31, 2020 (iii) Export obligation under advance license scheme on duty free import of specific raw materials, Sale of goods to: remaining outstanding is ` 619.36 Crores (Previous year: ` 204.24 Crores). Subsidiaries 28.27 29.55 Enterprises over which KMP have significant influence - 0.25 32. Related Party Transactions 28.27 29.80 32.1 Description of related parties under Ind AS - 24 “Related party disclosures” Purchase of goods from: Ultimate Holding Entity Key management personnel (KMP) Subsidiaries 17.50 7.74 ABR Family Trust Arun Bharat Ram 17.50 7.74 Ashish Bharat Ram Purchase of property, plant & equipment and intangible Holding Company Kartik Bharat Ram assets from: KAMA Holdings Limited Tejpreet S Chopra Holding Company - 0.15 Lakshman Lakshminarayan Subsidiaries 15.37 5.85 Subsidiaries Vellayan Subbiah 15.37 6.00 FINANCIAL STATEMENTS SRF Holiday Home Limited Meenakshi Gopinath Sale of property, plant & equipment and intangible SRF Global BV Pramod Gopaldas Gujarathi assets to: SRF Industries (Thailand) Limited Bharti Gupta Ramola Holding Company - 0.20 SRF Industex Belting (Pty) Limited Yash Gupta Subsidiaries 1.94 - SRF Flexipak (South Africa) (Pty) Limited Puneet Yadu Dalmia 1.94 0.20 SRF Europe Kft Services rendered to: SRF Employees Welfare Trust (Controlled Enterprises over which KMP have significant Subsidiaries 8.78 7.04 trust) influence# 8.78 7.04 SRF Foundation Receiving of Services from : Fellow subsidiaries# Karm Farms LLP Enterprises over which KMP have significant influence 0.07 - KAMA Realty (Delhi) Limited Srishti Westend Greens Farms LLP 0.07 - Shri Educare Limited SRF Welfare Trust Rent paid to: BLP Industry AI Private Limited Fellow Subsidiaries 6.60 6.63

218 Annual Report 2020-21 219 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Year ended Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Subsidiaries 0.06 0.01 Employee benefit obligations transferred from Key management personnel 0.27 0.29 Holding Company - 0.09 Enterprises over which KMP have significant influence 0.27 0.27 - 0.09 7.20 7.20 Equity dividend paid Reimbursement of expenses from Holding Company 72.12 42.07 Holding Company 0.01 0.01 Key management personnel 0.12 0.06 Subsidiaries 1.50 1.95 Relative of KMP 0.07 0.04 Fellow Subsidiaries 0.05 0.05 1.56 2.01 KMP of Holding Company * - Deposits given to Relative of KMP of Holding Company ^ ^ Subsidiaries - 0.02 Enterprises over which relative of KMP has control # - - 0.02 72.31 42.17 * Loan given to Amount in absolute ` 168 (Previous year: Nil) STATUTORY REPORTS Subsidiaries 617.48 - ^Amount in absolute ` 240 (Previous year: ` 140) 617.48 - #Amount in absolute ` 24,618 (Previous year: Nil) Interest received from Subsidiaries 0.39 - Guarantees issued / renewed 0.39 - Subsidiaries* 109.46 1,621.74 Deposits received back from 109.46 1,621.74 Fellow Subsidiaries - 0.12 Enterprises over which KMP have significant influence - 0.04 Guarantees run-down / released * - 0.16 Subsidiaries 879.12 1,027.78 Contribution for expenditure on corporate social 879.12 1,027.78 responsibility *Converted using closing exchange rate - March 31, 2021 : USD 75.13, EUR 85.78, THB 2.34 and ZAR 4.95 (Previous Enterprises over which KMP have significant influence 9.18 12.00 year: USD 75.56, EUR 82.58 and THB 2.30) as applicable 9.18 12.00 Investments made in 32.3 Outstanding Balances: Subsidiaries * - Year ended Year ended FINANCIAL STATEMENTS - - March 31, 2021 March 31, 2020 * Amount in absolute ` 25,000 (Previous year: Nil) Receivables Subsidiaries 11.47 17.35 Contribution to post employment benefit plans 11.47 17.35 Post Employment Benefit Plans Trust 35.41 24.31 Payables 35.41 24.31 Subsidiaries 9.03 5.83 Employee benefit obligations transferred to Post Employment Benefit Plans Trust 4.53 14.37 Holding Company 0.02 0.03 13.56 20.20 Fellow Subsidiaries - 0.10 Interest receivable Enterprises over which KMP have significant influence ^ - Subsidiaries 0.39 - 0.02 0.13 0.39 - ^Amount in absolute ` 25,962 (Previous year: Nil) Commission payable Key management personnel 12.84 10.22 12.84 10.22

220 Annual Report 2020-21 221 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Year ended Year ended (i) Superannuation fund March 31, 2021 March 31, 2020 The Company makes contributions to a Trust which in turn contributes to ICICI Prudential Life Insurance Security deposits outstanding Company Limited. Apart from being covered under the Gratuity Plan described below, the employees Subsidiaries 0.02 0.02 of the Company also participate in a defined contribution superannuation plan maintained by the Company. The Company has no further obligations under the plan except making annual contributions Fellow Subsidiaries 3.27 3.27 based on a specified percentage of each covered employee’s salary. From November 1, 2006, the Key management personnel 0.13 0.13 Company provided an option to the employees to receive the said benefit as cash compensation along Enterprises over which KMP have significant influence 0.14 0.14 with salary in lieu of the superannuation benefit. Thus, no contribution is required to be made for the 3.56 3.56 category of employees who opted to receive the benefit in cash. Equity Investment outstanding Subsidiaries 83.60 83.60 (ii) Provident fund administered through Regional Provident Fund Commissioner 83.60 83.60 All employees are entitled to Provident Fund benefits as per the law. For certain category of Loans outstanding employees the Company administers the benefits through a recognised Provident Fund Trust. Subsidiary 610.45 - The Company has an obligation to fund any shortfall on the yield of the trust’s investments over the 610.45 - administered interest rates on an annual basis. For other employees contributions are made to the STATUTORY REPORTS Guarantees outstanding Regional Provident Fund Commissioners. The Government mandates the annual yield to be provided Subsidiaries** 1,960.15 2,721.01 to the employees on their corpus. This plan is considered as a Defined Contribution Plan. For the 1,960.15 2,721.01 first category of employees (covered by the Trust), the Company has an obligation to make good the ** Converted using closing exchange rate - March 31, 2021 : USD 73.13, EUR 85.78 (Previous year: USD 75.56, EUR shortfall, if any, between the yield on the investments of the trust and the yield mandated by the 82.58, ZAR 4.24 and THB 2.30) Government and these are considered as Defined Benefit Plans and are accounted for on the basis of an actuarial valuation. 32.4 Key management personnel compensation Year ended Year ended 33.2 Defined benefit plans March 31, 2021 March 31, 2020 The Company sponsors funded defined benefit plans for qualifying employees. The defined benefit plans Short-term benefits* 26.21 22.11 are administered by separate funds which are legally separate from the Company. These plans are: Post-employment benefits 1.44 1.75 (a) Gratuity Other long-term benefits 0.97 1.25 (b) Provident fund for certain category of employees administered through a recognised provident fund trust 28.62 25.11 * Includes sitting fees and commission paid/ payable to non executive directors (i) These plans typically expose the company to actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk. 33. Employee Benefits FINANCIAL STATEMENTS 33.1 Defined contribution plans: Investment Risk Amounts recognized in the statement of profit and loss are as under: The probability or likelihood of occurrence of losses relative to the expected return on any particular investment. Year ended Year ended March 31, 2021 March 31, 2020 Salary Risk Superannuation fund (Refer to note (i) below) 0.61 0.65 The present value of defined benefit plan is calculated with the assumption of salary increase rate of Provident fund administered through Regional Provident Fund 14.02 12.58 plan participants in future. Deviation in rate of increase in salary in future for plan participants from Commissioner (Refer to note (ii) below) the rate of increase in salary used to determine the present value of obligation will have a bearing on Employees’ State Insurance Corporation 0.43 0.58 the plan’s liability. National Pension Scheme 1.34 1.99 16.40 15.80 Interest Risk The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in The expenses incurred on account of the above defined contribution plans have been included in Note 25 an increase in the ultimate cost of providing the above benefit and will thus result in an increase in “Employee Benefits Expenses” under the head “Contribution to provident and other funds”. value of the liability.

222 Annual Report 2020-21 223 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Longevity Risk (iv) Amounts recognised in Other Comprehensive Income: The present value of defined benefit plan liability is calculated by reference to the best estimate of the Year ended Year ended mortality of plan participants both during and after employment. An increase in the life expectancy of the March 31, 2021 March 31, 2020 plan participants will increase the plans liability. Gratuity Provident Fund Gratuity Provident Fund Actuarial (gain)/ losses on plan (5.84) - (0.41) - (ii) The principal assumption used for the purpose of the actuarial valuation were as follows: assets Actuarial (gain)/ losses arising from 0.49 - 4.54 - As at March 31, 2021 As at March 31, 2020 changes in financial assumptions Gratuity Provident Fund Gratuity Provident Fund Actuarial (gain)/ losses arising from 2.94 - 4.06 - Discount Rate 6.69% 6.69% 6.77% 6.77% changes in experience adjustments Expected statutory interest rate - 8.50% - 8.50% (2.41) - 8.19 -

Salary increase 7.00% - 7.00% - (v) The amount included in balance sheet arising from the entity’s obligation in respect of its Retirement Age (years) 58 58 58 58 defined benefit plans is as follows:

Mortality Rates IALM IALM IALM IALM As at As at STATUTORY REPORTS (2012-14) (2012-14) (2012-14) (2012-14) March 31, 2021 March 31, 2020 Withdrawal rate Gratuity Provident Fund Gratuity Provident Fund Upto 30 years 20.00% 20.00% 20.00% 20.00% Present value of funded defined 98.72 158.91 85.78 137.01 31 to 44 years 7.00% 7.00% 7.00% 7.00% benefit obligation Above 44 years 8.00% 8.00% 8.00% 8.00% Fair value of plan assets 94.20 157.71 69.96 136.55 Surplus/ (Deficit) (4.52) (1.20) (15.82) (0.46) The cost of the defined benefit plans and other long term benefits are determined using actuarial valuations. Effect of asset ceiling, if any - - - - Actuarial valuations involve making various assumptions that may differ from actual developments in Net assets / (liability) (4.52) (1.20) (15.82) (0.46) the future. These includes the determination of the discount rate, future salary increases and mortality rate. Due to these complexity involved in the valuation it is highly sensitive to the changes in these (vi) Movements in the present value of defined benefit obligation are as follows: assumptions. All assumptions are reviewed at each reporting date. The present value of the defined benefit Year ended Year ended obligation and the related current service cost and planned service cost were measured using the projected March 31, 2021 March 31, 2020 unit cost method. Gratuity Provident Fund Gratuity Provident Fund

Opening defined benefit obligation 85.78 137.01 70.66 121.17 FINANCIAL STATEMENTS (iii) Amounts recognised in statement of profit and loss in respect of these benefit plans are as Current service cost 8.03 6.75 7.19 6.07 follows: Interest cost 5.81 11.92 5.41 10.32 Year ended Year ended Actuarial (gain)/ losses arising from 0.49 - 4.54 - March 31, 2021 March 31, 2020 changes in financial assumptions Gratuity Provident Fund Gratuity Provident Fund Actuarial (gain)/ losses arising from 2.94 - 4.06 - Current Service cost 8.03 6.75 7.19 6.07 changes in experience adjustments Interest expenses (net of expected 1.07 - 0.64 - Benefits paid (4.33) (8.73) (5.04) (13.88) return on plan assets) Contribution by plan participants/ - 10.83 - 10.00 9.10 6.75 7.83 6.07 employees Settlement/ transfer in - 1.13 (1.04) 3.33 The current service cost and the net interest expenses for the year are included in Note 25 “Employee Closing defined benefit obligation 98.72 158.91 85.78 137.01 Benefits Expenses” under the head “Contribution to provident and other funds”.

224 Annual Report 2020-21 225 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW (vii) Movements in the fair value of plan assets are as follows: 33.3 Other long-term employee benefit Amounts recognized in the statement of profit and loss in note 25 “Employee Benefits expense” under the Year ended Year ended head “Salaries and wages, including bonus” are as under: March 31, 2021 March 31, 2020 Year ended Year ended Gratuity Provident Fund Gratuity Provident Fund March 31, 2021 March 31, 2020 Opening fair value of plan assets 69.96 136.55 62.36 123.07 Long term retention pay (Refer to note (i) below) - 0.14 Return on plan assets (excluding 10.58 11.18 5.28 10.14 Compensated absences 11.57 11.26 amounts included in net interest expenses) 11.57 11.40

Contributions from employer 17.99 6.75 8.30 6.07 (i) Long Term Retention Pay Contributions from plan participants - 10.83 - 10.00 The Company has a Long Term Retention Pay Plan which covers employees selected on the basis of their current band and their long term value to the Company. The incentive is payable in three year Benefits paid (4.33) (8.73) (5.04) (13.88) blocks subject to achievement of certain performance ratings. The Company also has a scheme for Settlement/ transfer in - 1.13 (0.94) 1.15 talent retention of certain identified employees under which an incentive is payable over a period STATUTORY REPORTS Closing fair value of plan assets 94.20 157.71 69.96 136.55 of three years.

Gratuity: 34. Employee Share Based Payments The Company has an Employee Share Purchase Scheme (SRF Long Term Share Based Incentive Plan) Plan assets comprises primarily of investment in HDFC Group Unit Linked Plan fund. The average duration to provide equity settled share based payments to certain employees. The expenses related to the grant of the defined benefit obligation is 9.14 years (Previous year: 9.08 years). The Company expects to make of shares under the Scheme are accounted for on the basis of fair value of the share on the grant date a contribution of ` 8.76 Crores (Previous year: ` 8.68 Crores) to the defined benefit plans during the next (which is the market price of the Company’s share on the date of grant less exercise price). The fair value financial year. so determined is expensed on a straight line basis over the remaining tenure over which the employees renders their services. Provident fund: The plan assets have been primarily invested in government securities and corporate bonds. There were no equity shares granted during the current and previous year. Based on the grants made in earlier years, the Company has recognised ` 0.98 Crore as share based payment expense during the (viii) Sensitivity Analysis current year (Previous year: ` 0.98 Crore). Significant actuarial assumptions for the determination of the defined obligation are discount rateand expected salary increase. The sensitivity analysis below have been determined based on reasonably 35. Segment Reporting possible changes of the respective assumptions occurring at the end of reporting period, while holding all Based on the guiding principles laid down in Indian Accounting Standard (Ind AS) - 108 “Segment Reporting”, other assumptions constant. the Managing Director of the Company is the Chief Operating Decision Maker (CODM) and for the purposes FINANCIAL STATEMENTS of resource allocation and assessment of segment performance the business of the Company is segregated Year ended Year ended in the segments below: March 31, 2021 March 31, 2020 • Technical Textiles business: includes nylon tyre cord fabric, belting fabric, polyester tyre cord fabric 0.50% 0.50% 0.50% 0.50% and industrial yarns and its research and development increase decrease increase decrease • Chemicals business: includes refrigerant gases, industrial chemicals, speciality chemicals, Sensitivity analysis of Gratuity fluorochemicals & allied products and its research and development. Discount rate (3.00) 3.20 (2.62) 2.79 • Packaging Film business: includes polyester films and polypropylene films. Expected salary growth 3.17 (3.01) 2.72 (2.63) • Others: includes coated fabric, laminated fabric and other ancilliary activities. Sensitivity analysis of Provident Fund Segment revenue, results and capital employed include the respective amounts identifiable to each of the Discount rate (0.01) 0.01 (0.01) 0.01 segments. Other unallocable expenditure includes expenses incurred on common services provided to the segments, which are not directly identifiable.

226 Annual Report 2020-21 227 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW In addition to the significant accounting policies applicable to the business segments as set out in note 1 Year ended Year ended above, the accounting policies in relation to segment accounting are as under: March 31, 2021 March 31, 2020 Segment profits a) Segment revenue and expenses (Profit before interest and tax from each segment) Joint revenue and expenses of segments are allocated amongst them on a reasonable basis. All other a) Technical textiles business (TTB) 176.90 151.52 segment revenue and expenses are directly attributable to the segments. These amounts relate to b) Chemicals business (CB) 730.11 516.11 continuing operations, unless otherwise stated. (Refer to note 40 with regard to information in relation c) Packaging films business (PFB) 567.79 395.80 to discontinued operations). d) Others 25.59 31.77 b) Segment assets and liabilities Total segment results 1,500.39 1,095.20 Segment assets include all operating assets used by a segment and consist principally of operating Less: i) Interest and finance charges 111.21 182.11 cash, trade receivables, inventories and property plant and equipment and intangible assets, net of Less: ii) Other unallocable expenses net of income 79.21 312.61 allowances and provisions, which are reported as direct offsets in the balance sheet. Segment liabilities Profit before tax from continuing operations 1,309.97 780.48 include all operating liabilities and consist principally of creditors and accrued liabilities and do not Profit before tax from discontinued operations (Refer to - 241.82 include deferred income taxes. While most of the assets / liabilities can be directly attributed to note 40)

individual segments, the carrying amount of certain assets / liabilities pertaining to two or more Total profit before tax 1,309.97 1,022.30 STATUTORY REPORTS segments are allocated to the segments on a reasonable basis. Capital expenditure A. Information about operating business segments a) Technical textiles business (TTB) 77.90 62.83 Year ended Year ended b) Chemicals business (CB) 618.66 503.27 March 31, 2021 March 31, 2020 c) Packaging films business (PFB) 20.46 41.33 Segment revenue d) Others 1.92 11.67 a) Technical textiles business (TTB) e) Unallocated 3.13 6.53 - External sales 1,231.41 1,352.62 Total 722.07 625.63 - Inter-segment sales 8.70 4.93 Total 1,240.11 1,357.55 Depreciation and amortisation b) Chemicals business (CB) a) Technical textiles business (TTB) 35.41 34.69 - External sales 3,636.85 2,984.93 b) Chemicals business (CB) 273.09 245.33 - Inter-segment sales - - c) Packaging films business (PFB) 54.13 50.86 Total 3,636.85 2,984.93 d) Others 8.06 8.49 c) Packaging films business (PFB) e) Unallocated 12.91 13.84 FINANCIAL STATEMENTS - External sales 1,888.04 1,715.03 Total 383.60 353.21 - Inter-segment sales - 0.42 Total 1,888.04 1,715.45 Segment assets and liabilities d) Others As at As at - External sales 232.02 278.26 March 31, 2021 March 31, 2020 - Inter-segment sales - 0.08 Segment assets Total 232.02 278.34 a) Technical textiles business (TTB) 1,594.08 1,390.20 b) Chemicals business (CB) 5,723.01 5,233.16 Total segment revenue 6,997.02 6,336.27 c) Packaging films business (PFB) 1,667.82 1,481.72 Less: Inter segment revenue 8.70 5.43 d) Others 171.97 187.37 Revenue from operations 6,988.32 6,330.84 Total 9,156.88 8,292.45 Add: Unallocable income 63.30 53.29 Unallocable assets 1,554.42 527.13 Total revenue 7,051.62 6,384.13 Total assets 10,711.30 8,819.58

228 Annual Report 2020-21 229 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW As at As at Revenue from major products Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Segment liabilities b) Chemicals business (CB) a) Technical textiles business (TTB) 336.77 305.82 Speciality chemicals 2,389.39 1,623.83 b) Chemicals business (CB) 707.94 514.46 Fluorochemicals, Refrigerant gases and Allied products 885.95 939.06 c) Packaging films business (PFB) 338.22 291.15 Industrial chemicals 311.00 344.89 d) Others 32.85 43.68 Total 1,415.78 1,155.11 Others 0.75 1.31 Unallocable liabilities 3,000.25 2,980.22 c) Packaging films business (PFB) Total liabilities 4,416.03 4,135.33 Packaging films 1,853.37 1,671.53 d) Others B. Information about geographical business segments Laminated fabric, Coated fabric and other ancilliary activities 226.26 264.33 Year ended Year ended 6,887.49 6,186.54 March 31, 2021 March 31, 2020

Revenue from operations 36. Earnings Per Share (EPS) STATUTORY REPORTS - India 3,581.87 3,639.45 Year ended Year ended - Germany 466.31 525.59 March 31, 2021 March 31, 2020 - USA 477.13 372.02 Profit attributable to the equity holders of the Company used in calculating basic earning per share and diluted earning per share: - Belgium 635.51 293.59 - From continuing operations 925.06 793.59 - Switzerland 687.75 425.38 - From discontinued operations - 180.59 - Others 1,139.75 1,074.81 - From continuing and discontinued operations 925.06 974.18 6,988.32 6,330.84 Weighted average number of equity shares for the purpose of 5,82,83,078 5,74,80,500 calculating basic earnings per shares and diluted earnings per As at As at share (numbers) March 31, 2021 March 31, 2020 Basic and diluted earnings per share of face value ` 10 each Non current segment assets - From continuing operations (`) 158.72 138.06 - Within India 6,505.08 6,022.14 - From discontinued operations (`) - 31.42 - Outside India - - - From continuing and discontinued operations (`) 158.72 169.48

6,505.08 6,022.14 FINANCIAL STATEMENTS 37. Leases Non-current segment assets includes property, plant and equipments, right-of-use assets, capital work in The Company leases various types of assets including land, buildings and plant and equipment. progress, intangible assets, goodwill and other non current assets. Information about leases for which the Company is a lessee is presented below. Right-of-use assets Land* Buildings Plant and Total During the year ended March 31, 2021 one customer contributed 10.71% to the Company’s revenue equipment (Previous year: None). Cost Revenue from major products Year ended Year ended Balance at April 1, 2019 140.02 43.96 21.67 205.65 March 31, 2021 March 31, 2020 Additions / adjustments 13.89 1.02 28.96 43.87 a) Technical textiles business (TTB) Disposals / adjustments (5.87) - - (5.87) Balance at March 31, 2020 148.04 44.98 50.63 243.65 Nylon tyre cord fabric/ Polyester tyre cord fabric/ Belting fabric 1,122.94 1,178.73 Additions / adjustments 3.25 2.13 1.86 7.24 Synthetic filament yarn including industrial yarn/ Twine 97.21 162.86 Disposals / adjustments - (0.86) (2.60) (3.46) Others 0.62 - Balance at March 31, 2021 151.29 46.25 49.89 247.43

230 Annual Report 2020-21 231 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Right-of-use assets Land* Buildings Plant and Total 38. Financial Instruments and Risk Management equipment 38.1 Capital Management The Company manages its capital to ensure that it will be able to continue as a going concern and provide Accumulated amortisation reasonable return to the shareholders by maintaining a reasonable balance between debt and equity. Balance at April 1, 2019 - - - - The capital structure of the Company consists of net debt (borrowings net of cash and cash equivalents, deposit accounts with maturity beyond three months upto twelve months and current investments) and Depreciation expenses 1.54 6.76 8.44 16.74 total equity of the Company. The Company is not subject to any externally imposed capital requirements. Disposals / adjustments (0.67) - - (0.67) The Company’s management reviews the capital structure of the Company on periodic basis. As part of Balance at March 31, 2020 0.87 6.76 8.44 16.07 its review, the management considers the cost of capital and risk associated with each class of capital. Depreciation expenses 1.68 7.07 9.31 18.06 The Company also evaluates its gearing measures using Debt Equity Ratio to arrive at an appropriate level Disposals / adjustments - (0.86) (2.60) (3.46) of debt and accordingly evolves its capital structure. Balance at March 31, 2021 2.55 12.97 15.15 30.67 The following table provides the details of the debt and equity at the end of the reporting periods : Carrying Amount As at As at Balance at April 1, 2019 140.02 43.96 21.67 205.65 March 31, 2021 March 31, 2020 Additions / adjustments 13.89 1.02 28.96 43.87 Debt 2,652.71 2,752.12 STATUTORY REPORTS Disposals / adjustments (5.20) - - (5.20) Less: Depreciation expenses (1.54) (6.76) (8.44) (16.74) Cash and cash equivalents 86.72 98.26 Balance at March 31, 2020 147.17 38.22 42.19 227.58 Deposit accounts with maturity beyond three months upto twelve 135.19 0.10 Additions / adjustments 3.25 2.13 1.86 7.24 months Disposals / adjustments - - - - Current investments 412.52 198.50 Depreciation expenses (1.68) (7.07) (9.31) (18.06) Net debt 2,018.28 2,455.26 Balance at March 31, 2021 148.74 33.28 34.74 216.76 Total equity 6,295.27 4,684.25

*The execution of lease deed of land in respect of 1,149,550 sq. mtrs. (Previous year: 1,149,550 sq. mtrs.) of leasehold Net debt to equity ratio 0.32 0.52 land allotted to the Company by Gujarat Industrial Development Corporation at Dahej, Gujarat is pending. 38.2 Financial instruments by category Lease liabilities Financial assets Level of Notes Carrying value Fair value Lease liabilities included in the Balance Sheet As at As at hierarchy As at As at As at As at March 31, 2021 March 31, 2020 March 31, March 31, March 31, March 31, Current 13.80 13.71 2021 2020 2021 2020 Non-current 63.83 73.98 Measured at amortised cost FINANCIAL STATEMENTS Trade Receivables a 1,012.00 768.71 1,012.00 768.71 The average incremental borrowing rate applied to lease liabilities during the year ranges from 6.50% to 8.00% (Previous year: 8.00%). Cash and cash equivalents a 86.72 98.26 86.72 98.26 Bank balances other than a 143.71 9.03 143.71 9.03 Amounts recognised in Statement of Profit and Loss Year ended Year ended above March 31, 2021 March 31, 2020 Loans a, b 666.28 52.30 666.28 52.30 Interest on lease liabilities 6.49 6.70 Other financial assets a, b 180.00 186.02 180.00 186.02 Depreciation expense 18.06 16.74 2,088.71 1,114.32 2,088.71 1,114.32 Expenses relating to short-term leases and leases of low-value 15.62 13.66 Measured at Fair value assets (Refer note 28) through profit and loss Investments in mutual funds 2 d 412.52 198.50 412.52 198.50 Amounts recognised in Cash Flow Statement Year ended Year ended and bonds / debentures March 31, 2021 March 31, 2020 Derivative instruments 2 d 4.39 - 4.39 - Total cash outflow for leases 20.19 18.87 416.91 198.50 416.91 198.50

232 Annual Report 2020-21 233 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Financial assets Level of Notes Carrying value Fair value Level 1: hierarchy As at As at As at As at Quoted prices in the active market: This level of hierarchy includes financial assets that are measured by March 31, March 31, March 31, March 31, reference to quoted prices in the active market. 2021 2020 2021 2020 Level 2: Measured at Fair Valuation techniques with significant observable inputs: This level of hierarchy includes items measured value through Other using inputs other than quoted prices included within Level 1 that are observable for such items, either comprehensive income directly or indirectly. This level of hierarchy consists of over the counter (OTC) derivative contracts, open Investments in unquoted 3 d 4.16 4.16 4.16 4.16 ended mutual funds, bonds and debentures. equity instruments Level 3: Derivative instruments 2 d 75.76 - 75.76 - Valuation techniques with significant unobservable inputs: This level of hierarchy includes items measured 79.92 4.16 79.92 4.16 using inputs that are not based on observable market data (unobservable inputs). Fair value is determined Measured at amortised cost in whole or in part, using a valuation model based on assumptions that are neither supported by prices Borrowings a,c 2,184.49 1,922.23 2,184.49 1,922.23 from observable current market transactions in the same instruments nor based on available market data. Trade payables a 1,196.49 957.44 1,196.49 957.44 The main item in this category are unquoted equity instruments. STATUTORY REPORTS Other financial liabilities a 499.66 846.49 499.66 846.49 The fair value of the financial instruments are determined at the amount that would be received to sell an 3,880.64 3,726.16 3,880.64 3,726.16 asset in an orderly transaction between market participants. The following methods and assumptions were Measured at Fair value used to estimate the fair values: through profit and loss (i) Investments in mutual funds and bonds / debentures: Fair value is determined by reference to quotes Derivative instruments 2 d - 0.06 - 0.06 from the financial institutions. - 0.06 - 0.06 Measured at Fair (ii) Derivative contracts: The Company has entered into various foreign currency contracts and interest value through Other rate swaps contracts to manage its exposure to fluctuations in foreign exchange rates and interest rate comprehensive income respectively. These financial exposures are managed in accordance with the Company’s risk management policies and procedures. Fair value of derivative financial instruments are determined using valuation Derivative instruments 2 d 0.54 68.04 0.54 68.04 techniques based on information derived from observable market data, i.e., mark to market values 0.54 68.04 0.54 68.04 determined by the authorized dealers banks and forward exchange rates at the balance sheet date. The following methods/ assumptions were used to estimate the fair values: (iii) Unquoted equity investments: Fair value is determined based on the recoverable value as per agreement with the investee. (a) Fair valuation of financial assets and liabilities with short term maturities is considered as approximate

to respective carrying amount due to the short term maturities of these instruments. Reconciliation of Level 3 fair value measurements Unlisted equity Financial Guarantee FINANCIAL STATEMENTS instruments Contracts (b) Fair valuation of non-current financial assets has been disclosed to be same as carrying value as there As at March 31, 2019 0.11 2.55 is no significant difference between carrying value and fair value. Purchase of investment 4.05 - (c) The fair value of other long-term borrowings is estimated by discounting future cash flows using current Income recognised in profit and loss - (2.55) rates (applicable to instruments with similar terms, currency, credit risk and remaining maturities) to As at March 31, 2020 4.16 - discount the future payouts. Purchase of investment - - (d) The fair value is determined by using the valuation model/ technique with observable/ non-observable As at March 31, 2021 4.16 - inputs and assumptions. Sensitivity of the fair value measurement to changes in unobservable inputs for financial instruments (e) Investment value excludes investment in subsidiaries which are shown at cost in balance sheet as per in Level 3 level of hierarchy is insignificant. Ind AS 27 “Separate financial statements”. 38.3 Financial Risk Management There are no transfers between Level 1, Level 2 and Level 3 during the year ended March 31, 2021 and The Company is exposed to various financial risks arising from its underlying operations and finance March 31, 2020. activities. The Company is primarily exposed to market risk (i.e. interest rate and foreign currency risk) and

234 Annual Report 2020-21 235 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW to credit risk and liquidity risk. The Company’s Corporate Treasury function plays the role of monitoring Assets Liabilities financial risk arising from business operations and financing activities. As at As at As at As at March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Financial risk management within the Company is governed by policies and guidelines approved by the USD 729.29 247.47 1,903.09 1,483.12 senior management and the Board of Directors. These policies and guidelines cover interest rate risk, foreign EUR 257.67 111.16 512.07 585.07 currency risk, credit risk and liquidity risk. Company policies and guidelines also cover areas such as cash JPY - - 9.95 6.87 management, investment of excess funds and the raising of short and long-term debt. Compliance with the GBP 3.15 4.13 13.12 0.14 policies and guidelines is managed by the Corporate Treasury function within the Company. Review of the financial risk is done on a monthly basis by the Managing Director and on a quarterly basis by the Board of Foreign currency sensitivity analysis Directors. The objective of financial risk management is to contain, where deemed appropriate, exposures The Company is mainly exposed to changes in USD, EUR, JPY and GBP exchange rates. on net basis to the various types of financial risks mentioned above in order to limit any negative impact on ` the Company’s results and financial position. The following table details the Company’s sensitivity to a 1% increase and decrease in the against the relevant foreign currency. The sensitivity analysis includes only outstanding foreign currency denominated monetary items as tabulated above and adjusts their translation at the period end for 1% change in foreign In accordance with its financial risk management policies, the Company manages its market risk currency rates. A positive number below indicates an increase in profit before tax or vice-versa.

exposures by using specific type of financial instruments duly approved by the Board of Directors as STATUTORY REPORTS and when deemed appropriate. It is the Company’s policy and practice neither to enter into derivative Year ended March 31, 2021 Year ended March 31, 2020 transactions for speculative purpose, nor for any purpose unrelated to the underlying business. ` strengthens ` weakens ` strengthens ` weakens The Board of Directors/ Managing Director reviews and approves policies for managing each of by 1% by 1% by 1% by 1% the above risks. Impact on profit / (loss)* USD 6.10 (6.10) 8.43 (8.43) 38.3.1 Market Risk EUR (2.52) 2.52 (1.03) 1.03 JPY 0.10 (0.10) 0.07 (0.07) Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate GBP 0.10 (0.10) (0.04) 0.04 because of changes in market prices. Market risk comprises of interest rate risk and foreign currency risk. Financial instruments affected by market risk includes loans and borrowings, deposits, investments and *Includes sensitivity on long-term foreign currency monetary items on which Para D13 AA of Ind AS 101 has been applied. Accordingly, the exchange loss/ (gain) arising on long term foreign currency monetary items relating to derivative financial instruments. The Company enters into derivative contracts as approved by the Board to acquisition of depreciable assets will be added to/ deleted from the cost of such assets/ capital work in progress and manage its exposure to interest rate risk and foreign currency risk. will be depreciated over the balance useful life of assets.

A. Foreign Currency Risk Management Impact on equity (Other Foreign currency risk also known as Exchange Currency Risk is the risk that the fair value or future cash Comprehensive Income)

flows of an exposure will fluctuate because of changes in foreign exchange rates. Foreign currency USD 5.49 (5.49) 3.78 (3.78) FINANCIAL STATEMENTS risk in the Company is attributable to Company’s operating activities, investing activities and EUR 5.08 (5.08) 5.78 (5.78) financing activities. Foreign exchange derivative and non-derivative financial instruments In the operating activities, the Company’s exchange rate risk primarily arises when revenue / costs are The Company uses derivative as well as non-derivative financial instruments for hedging financial risks generated in a currency that is different from the reporting currency (transaction risk). In compliance that arise from its commercial business or financing activities. The Company’s Corporate Treasury team with the Board approved policy, the Company manages the net exposure on a rolling 12 month manages its foreign currency risk by hedging transactions that are expected to occur within of 1 to basis and for exposures between 12 to 36 months, hedging is done based on specific exposure. 36 months for hedges of forecasted sales, purchases, loans and liabilities and capital expenditures. The information is monitored by the Audit committee and the Board of Directors on a quarterly basis. When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms This foreign currency risk exposure of the Company are mainly in U.S. Dollar (USD), Euro (EUR), of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions Japanese Yen (JPY) and British Pound Sterling (GBP). The Company’s exposure to foreign currency the derivatives cover the period of exposure from the point the cash flows of the transactions are changes for all other currencies is not material. forecasted up to the point of settlement of the resulting receivable or payable that is denominated in the foreign currency. All identified exposures are managed as per the policy duly approved by the The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary Board of Directors. liabilities at the end of the reporting periods expressed in ` are as follows:

236 Annual Report 2020-21 237 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW The following table details the foreign currency derivative contracts outstanding at the end of the The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that reporting period: portion of loans and borrowings affected. With all other variables held constant, the Company’s profit Outstanding Maturity before tax is affected through the impact on floating rate long term borrowings, as follows: Contracts* No of Deals Contract Value of Up to 12 months More than 12 months Foreign Currency Nominal Amount* Nominal Amount* Year ended March 31, 2021 Year ended March 31, 2020 (In Millions) (` Crores) (` Crores) ` loans interest Foreign ` loans interest Foreign As at As at As at As at As at As at As at As at rate decreases currency loans rate decreases currency loans March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, by 0.50 % interest rate by 0.50 % interest rate 2021 2020 2021 2020 2021 2020 2021 2020 decreases by decreases by USD / INR Sell 264 196 513.25 254.56 2,029.40 1,243.67 1,998.63 680.78 forward 0.15 % 0.15 % EUR / USD - 4 - 6.00 - 50.51 - - Increase in profit before 2.85 0.52 1.48 1.09 Sell forward tax by EUR / INR Sell 17 27 40.50 38.00 181.53 172.65 202.77 153.78 forward In case of increase in interest rate by above mentioned percentage, there would be a comparable negative * Computed using average forward contract rates impact on the profit before tax as mentioned above. STATUTORY REPORTS

The following table details the Company’s sensitivity to a 1% increase and decrease in the ` against the relevant foreign currency. The sensitivity analysis includes only outstanding forward exchange contracts as tabulated above and adjusts Managing interest rate benchmark reform and associated risks their translation at the period end for 1% change in forward rates. A positive number below indicates an increase in profit A fundamental reform of major interest rate benchmarks is being undertaken globally, including the before tax or vice-versa. replacement of some interbank offered rates (IBORs) with alternative nearly risk-free rates (referred to Year ended March 31, 2021 Year ended March 31, 2020 as ‘IBOR reform’). The Company has exposures to USD-LIBOR and EUR-IBOR on its financial instruments ` strengthens ` weakens ` strengthens ` weakens that will be replaced or reformed as part of these market-wide initiatives. There is uncertainty over the by 1% by 1% by 1% by 1% timing and the methods of transition. The management monitors the Company’s transition to alternative Impact on profit / rates. The management evaluates the extent to which contracts reference IBOR cash flows, whether such (loss) for the year contracts will need to be amended as a result of IBOR reform and how to manage communication about USD 1.76 (1.76) 0.27 (0.27) IBOR reform with counterparties. EUR 0.34 (0.34) 0.50 (0.50) Impact on equity The Company holds interest rate swaps for risk management purposes which are designated in cash USD 37.82 (37.82) 19.60 (19.60) flow hedging relationships. The interest rate swaps have floating legs that are linked to USDLIBOR. EUR 3.40 (3.40) 3.31 (3.31) Hedging relationships impacted by IBOR reform may experience ineffectiveness attributable to market participants’ expectations of when the shift from the existing IBOR benchmark rate to an alternative FINANCIAL STATEMENTS B. Interest Rate Risk Management benchmark interest rate will occur. This transition may occur at different times for the hedged item and Interest rate risk arises from movements in interest rates which could have effects on the Company’s hedging instrument, which may lead to hedge ineffectiveness. net income or financial position. Changes in interest rates may cause variations in interest income and expenses resulting from interest-bearing assets and liabilities. The Company’s exposure to the risk of Some of the Company’s existing USD LIBOR cash flow hedging relationships extend beyond the changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating anticipated cessation date for USD LIBOR. The Company will apply the amendments to Ind AS 109 interest rates. issued via Companies (Indian Accounting Standards) Amendment Rules, 2020 issued by the Ministry of Corporate Affairs on 24 July 2020, to those hedging relationships directly affected byIBOR The Company manages its interest rate risk by having a portfolio of fixed and variable rate loans and reform, as applicable. borrowings. The Company enters into interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts, calculated by reference to an agreed principal amount outstanding at the time of inception of the swap. Out of the total long term Interest Rate Swap Contracts borrowings, the amount of fixed interest loan is ` 899 Crores and floating interest loan is ` 917 Crores Under interest rate swap (IRS) contracts, the Company agrees to exchange the difference between fixed (Previous year: Fixed interest loan ` 838 Crores and Floating interest loan ` 1,026 Crores). and floating rate interest amounts calculated on the agreed notional principal amounts. Such contracts enables the Company to mitigate the risk of changing interest rates.

238 Annual Report 2020-21 239 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW The following table details the IRS contracts outstanding at the end of the reporting period: Fair Value hedges Outstanding Maturity The amounts at the reporting date relating to the item designed as hedge items are as follows: Contracts No of Deals Contract Value of Up to 12 months More than 12 months Hedging As at Year ended As at Year ended Foreign Currency Nominal Amount* Nominal Amount* instruments March 31, 2021 March 31, March 31, 2020 March 31, (In Millions) (` Crores) (` Crores) 2021 2020 As at As at As at As at As at As at As at As at Nominal Carrying Line item Change in Nominal Carrying Line item Change in March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, amount amount where the the value of amount amount where the the value of 2021 2020 2021 2020 2021 2020 2021 2020 Assets / hedging the hedging Assets / hedging the hedging IRS 4 3 31.05 15.05 85.49 26.71 141.68 86.99 (liabilities) instrument is instrument (liabilities) instrument instrument Contracts* included recognised is included recognised in statement in statement *Sensitivity on the above IRS contracts in respect of interest rate exposure is insignificant of profit and of profit and Each of the above trades are in the nature of cash flow hedges and are effective hedges. The mark to loss loss market on these trades is therefore routed through Cash flow Hedge Reserve. The interest rate swap Foreign 215.21 4.39 Other 4.44 76.58 (0.06) Other (3.46) exchange financial financial and the interest payments on the loan are paid simultaneously and are charged off to the statement of contracts assets liabilities profit and loss. (current and (current non - current) and non - STATUTORY REPORTS C. Hedge accounting current) Cash flow hedges The amounts at the reporting date relating to the item designed as hedge items are as follows: Movement of cash flow hedging reserve and cost of hedging reserve Hedging As at Year ended As at Year ended Particulars Cash flow hedging reserve Cost of hedging reserve instruments March 31, 2021 March 31, March 31, 2020 March 31, As at As at As at As at 2021 2020 March 31, March 31, March 31, March 31, Nominal Carrying Line item Change in Nominal Carrying Line item Change in amount amount where the the value of amount amount where the the value of 2021 2020 2021 2020 Assets / hedging the hedging Assets / hedging the hedging Opening Balance (78.56) 28.65 - - (liabilities) instrument is instrument (liabilities) instrument instrument Changes in the spot element of 7.04 - - - included recognised is included recognised the forward contracts which is in OCI in OCI designated as hedging instruments Foreign 4,197.13 74.75 Other 140.37 2,224.80 (65.62) Other (92.75) exchange financial financial for time period related hedge contracts assets liabilities Changes in the forward element - - 3.87 - (current and (current of the forward contracts where non - current) and non - changes in spot element of FINANCIAL STATEMENTS current) forward contract is designated Foreign 1,055.91 (1,055.91) Borrowings (1.27) 955.86 (955.86) Non current (65.90) as hedging instruments for time currency (current and borrowings denominated non - current) period related hedges loans Changes in fair value of forward 130.71 (92.75) - - 1.01 Other 1.01 - Other contracts designated as hedging financial financial instruments assets assets Changes in fair value of interest 2.89 (6.14) - - (current and (current non - current) and non - rate swaps Interest rate current) Amount reclassified to Profit or Loss 3.12 - (2.92) - 227.17 113.70 (6.14) swap contacts (0.54) Other 1.88 (2.42) Other (Foreign exchange (gain) / loss) financial financial Amount arising from remeasurement (11.43) (65.90) - - liabilities liabilities of financial liability (current and (current non - current) and non - Taxes related to above (46.24) 57.58 (0.33) - current) Closing Balance 7.53 (78.56) 0.62 -

240 Annual Report 2020-21 241 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 38.3.2 Credit Risk Management 38.3.3 Liquidity Risk Management Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer Liquidity risk is the risk of non-availability of financial facilities available to the Company to meet its financial contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities obligations. The Company’s objective is to maintain a balance between continuity of funding and flexibility (primarily trade receivables, loans and other financial assets) and from its financing activities, including through the use of money market instruments, bank overdrafts, bank loans, debentures and other types deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. of facilities. The liquidity management is governed by the Board approved liquidity management policy. Any deviation from the policy has to be approved by the Treasury Management comprising of Managing Credit risk from balances with banks and financial institutions is managed by the Company’s treasury Director, Chief Financial Officer and Treasury Head. The Company assesses the concentration of risk with department in accordance with the Company’s policy. Investments of surplus funds are made only with respect to refinancing its debt, guarantee given and funding of its capital expenditure needs of the future. counterparties who meet the parameters specified in Investment Policy of the Company. The investment The Company manages its liquidity by holding appropriate volumes of liquid assets which are available for policy is reviewed by the Company’s Board of Directors on an annual basis and if required, the same may its disposal on T +1 basis and by maintaining open credit lines with banks / financial institutions. be updated during the year. The investment policy specifies the limits of investment in various categories The table below analyze the Company’s financial liabilities into relevant maturity profiles based on their of products so as the minimize the concentration of risks and therefore mitigate financial loss due to contractual maturities: counterparty’s potential failure. Less than More than More than Total Expected credit loss on financial assets: 1 year 1 year and 5 years To manage credit risk for trade receivables, the Company establishes credit approvals and credit limits, upto 5 years STATUTORY REPORTS periodically assesses the financial reliability of customers, taking into account the financial conditions, As at March 31, 2021 economic trends, analysis of historical bad debts and aging of such receivables. Borrowings* 1,198.91 1,466.63 - 2,665.54 Lease Liabilities** 19.30 53.85 53.68 126.83 With regards to all financial assets with contractual cash flows other than trade receivable, management Trade payables 1,196.49 - - 1,196.49 Other financial liabilities 109.08 0.54 - 109.62 believes these to be high quality assets with negligible credit risk. The management believes that the 2,523.78 1,521.02 53.68 4,098.48 parties, from which these financial assets are recoverable, have strong capacity to meet the obligations and where the risk of default is negligible and accordingly no provision for excepted credit loss has been provided on these financial assets other than as detailed below. Less than More than More than Total 1 year 1 year and 5 years Loss allowance for the following financial assets have been recognised by the Company: upto 5 years As at March 31, 2020 Note No. As at As at Borrowings* 1,606.02 1,122.11 20.24 2,748.37 March 31, 2021 March 31, 2020 Lease Liabilities** 20.06 57.23 65.09 142.38 Loans - current 6 2.74 2.74 Trade payables 957.44 - - 957.44 Trade receivables 10 3.96 2.46 Other financial liabilities 149.53 22.87 - 172.40 6.70 5.20 2,733.05 1,202.21 85.33 4,020.59 FINANCIAL STATEMENTS *Includes current maturity of non-current borrowings and future cash outflow towards estimated interest on non- Movement of loss allowance : current borrowings. Loans (current Trade ** Includes future cash outflow towards estimated interest on lease liabilities. and non current) receivables As at March 31, 2019 2.81 1.64 39. Contract balances Provided during the year 0.31 1.56 The following table provides information about contract assets and contract liabilities from contracts Reversed / utilised during the year (0.38) (0.74) with customers: As at March 31, 2020 2.74 2.46 Contract assets Year ended Year ended Provided during the year 0.24 11.82 March 31, 2021 March 31, 2020 Reversed / utilised during the year (0.24) (10.32) Opening balance - 25.52 Increase as a result of changes in measure of progress - - As at March 31, 2021 2.74 3.96 Transfer from contract assets recognised at the beginning of the - 25.52 year to receivables Other than financial assets mentioned above, none of the Company’s financial assets are impaired, as there - - are no indications that defaults in payments obligation would occur.

242 Annual Report 2020-21 243 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Contract liability Year ended Year ended (c) Revenue from major products March 31, 2021 March 31, 2020 Year ended Year ended Opening balance 10.75 14.74 March 31, 2021 March 31, 2020 Revenue recognised that was included in the contract liability (10.75) (14.74) Nylon/ PBT/ PC compounding chips - 74.87 balance at the beginning of the period Increase due to cash received, excluding the amount recognised 13.53 10.75 (d) Details of disposal of discontinued operations: as revenue during the period 13.53 10.75 Year ended Year ended March 31, 2021 March 31, 2020 40. Discontinued Operations Proceeds from slump sale of business - 315.77 (a) Description: Carrying amount of net assets transferred - (76.32) On May 11, 2019, the Company entered into a business transfer agreement for sale of its Engineering Costs incurred on slump sale of business - (5.71) Plastics Business, which has been divested with effect from August 1, 2019. The business was reported Profit before tax on disposal of discontinued operations - 233.74 under “Others segment” in accordance with the requirements of Ind AS 108 – “Operating Segments” in the Tax expense related to disposal of discontinued operations - (58.41) financial statements till the year prior to the previous year. The relevant financial information of the said Net Profit after tax on disposal of discontinued - 175.33

business has been disclosed under discontinued operations in terms of Ind AS 105- “Non-current assets operations STATUTORY REPORTS held for sale and discontinued operations” as below: (e) The carrying amounts of assets and liabilities as at the date of sale were as follows: (b) Financial performance and Cash flow information: As at Sl. no. Particulars Year ended Year ended July 31, 2019 March 31, 2021 March 31, 2020 Property, plant and equipment 44.86 I (a) Sale of products - 74.87 Goodwill 0.79 (b) Other operating revenues - 0.26 Intangible assets 0.22 Inventory 25.07 (c) Revenue from operations {I(a)+I(b)} - 75.13 Trade receivables 25.27 (d) Other income - - Other assets 0.42 (e) Total income {I(c)+I(d)} - 75.13 Total assets 96.63 (f) Total expenses - 67.05 Trade payables (19.59) (g) Profit before tax for the period from discontinued - 8.08 Other liabilities and provisions (0.72) operations {I(e)-I(f)} Total liabilities (20.31) Net assets transferred 76.32 (h) Tax expense related to discontinued operations - 2.82 FINANCIAL STATEMENTS (i) Net Profit after tax for the period from - 5.26 (f) Pursuant to requirements of Ind AS 105, the amounts in the statement of profit and loss (and notes discontinued operations {I(g)-I(h)} 22 to 28) for the previous year have been presented for continuing operations, as applicable, unless II (a) Profit before tax on disposal of discontinued - 233.74 otherwise stated. operations (b) Tax expense related to disposal of discontinued - 58.41 41. Additional Disclosures operations (a) Research and Development Expenditure ` ` (c) Net Profit after tax on disposal of discontinued - 175.33 The details of research and development expenditure of 110.50 Crores (Previous year: 132.77 Crores) operations {II(a)-II(b)} included in these financial statements are as under: III Net Profit after tax for the period from - 180.59 Year ended Year ended discontinued operations {I(i)+II(c)} March 31, 2021 March 31, 2020 IV Net cash generated from operating activities - 17.29 Capital expenditure 13.46 33.09 V Net cash generated from / (used in) investing activities - 268.92 Revenue expenditure 97.04 99.68 VI Net cash used in financing activities - (0.14) 110.50 132.77

244 Annual Report 2020-21 245 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW The details of revenue expenditure incurred on research and development is as below: (ii) Computation of managerial remuneration in accordance with section 197 of the Companies Act, 2013 Year ended Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Profit before taxation 1,309.97 1,022.30 Cost of material consumed 2.73 1.51 Add: Salaries and wages, including bonus 42.97 37.85 Managerial remuneration including commission 27.65 23.86 Contribution to provident and other funds 2.61 2.45 Loss/ write off of fixed assets as per accounts 1.37 2.87 Workmen and staff welfare expenses 2.72 3.62 Provision for doubtful debts/ advances/ investments 1.44 0.86 Sub Total 30.46 27.59 Stores and spares consumed 6.11 6.15 Power and fuel 4.84 7.74 Less: Rent - 0.04 Profit on sale of fixed assets as per accounts 0.39 12.76 Repairs and maintenance Profit on disposal of discontined operations - 233.74 - Buildings - - Net Gain on financial assets measured at FVTPL 25.45 9.38 STATUTORY REPORTS - Plant and machinery 8.32 10.86 Excess Provision written back 11.42 2.82 Sub Total 37.26 258.70 - Others 0.58 1.26 Insurance 0.96 0.87 Profit as per section 197 of the Companies Act, 2013 1,303.17 791.19 Rates and taxes 0.07 0.04 Maximum remuneration as commission and/ or salary including 130.32 79.12 Travelling and conveyance 0.16 1.27 perquisites @ 10% of net profit of` 1303.17 Crores (Previous year: Legal and professional charges 3.58 3.95 ` 791.19 Crores) which can be paid to Managing Directors/ Whole time Directors under section 197 of the 2013 Act Depreciation and amortisation expense 18.33 19.09 Remuneration paid/ payable to Managing Directors / 26.40 22.81 Interest cost 0.28 0.36 Whole Time Directors Miscellaneous expenses 2.78 2.62 Maximum remuneration payable to Non-Executive Directors 13.03 7.91 ` 97.04 99.68 @ 1% of net profit of 1303.17 Crores (Previous year: ` 791.19 Crores) under section 197 of the 2013 Act (b) Managerial Remuneration Remuneration paid/ payable to Non-Executive Directors 1.25 1.05

Year ended Year ended (c) The Company has elected to continue the policy adopted for accounting for exchange differences arising FINANCIAL STATEMENTS March 31, 2021 March 31, 2020 from translation of long-term foreign currency monetary items as described in Para D13 AA of Ind AS 101. (i) (a) Remuneration to Chairman/ Managing Director/ Accordingly, exchange loss/ (gain) arising on all long term monetary items financed or re-financed on or before Deputy Managing Director/ Whole time Director March 31, 2016 relating to acquisition of following depreciable assets are added to/ adjusted from the cost of Salary and contribution to provident and other funds 12.04 11.05 such assets/ capital work in progress and will be depreciated over the balance useful life of such assets. Value of perquisites 2.36 2.26 Exchange loss/ (gain) added/ (adjusted) Year ended Year ended Commission 12.00 9.50 March 31, 2021 March 31, 2020 SUB-TOTAL 26.40 22.81 Property, plant and equipment - Plant and equipment (8.60) 32.97 (b) Remuneration to Non Executive Directors (8.60) 32.97 Commission 0.84 0.72 Other Intangible Assets Directors’ sitting fees 0.27 0.21 - Trade marks/ Brands - 0.33 Other fees 0.14 0.12 - Technical knowhow - 0.19 SUB-TOTAL 1.25 1.05 - Others - 0.09 TOTAL 27.65 23.86 - 0.61

246 Annual Report 2020-21 247 Notes to the financial statements Notes to the financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW The cumulative exchange loss/ (gain) added/ (adjusted) and remaining unamortised as at March 31, 2021 specified domestic transactions. Based on the transfer pricing regulations/ policy, the transfer pricing study is ` 130.49 Crores (Previous year: ` 153.11 Crores). for the year ended March 31, 2021 is to be conducted on or before due date of the filing of return and the Company will further update above information and records based on the same and expects these to be in (d) Disclosures pursuant to section 186(4) of the Companies Act, 2013 and regulation 34(3) and 53(f) of SEBI existence latest by that date. Management believes that all the above transactions are at arm’s length price (Listing Obligations and Disclosure Requirements) Regulations 2015, as applicable: and the aforesaid legislations will not have impact on the financial statement, particularly on the amount of tax expense and provision for taxation. (i) Details of guarantees: Nature of Guarantees Purpose (f) Disclosure on corporate social responsibility expense: Refer note 31 (d) above To secure the financial facilities sanctioned to Year ended Year ended subsidiaries by banks and other companies. March 31, 2021 March 31, 2020 (i) Prescribed CSR expenditure as per Section 135 of the 12.88 11.63 (ii) Details of investments: Companies Act, 2013 Nature of Investments Purpose (ii) Amount approved by the Board to be spent during the year 12.88 12.00 Refer note 5.1 above Investment in wholly owned subsidiaries. (iii) Actual amount spent during the year on purposes other than 10.18 12.00 construction / acquisition of an asset (also refer note 32.2) (iii) Details of unsecured loans given:

Details of expenditure: STATUTORY REPORTS Particulars of loans Terms As at As at - In respect of ongoing projects (rural education and skill March 31, 2021 March 31, 2020 programme): SRF Global BV (denominated Principal amount repayable a) Amount required to be spent during the year 7.00 - in USD) - given for from December 2021 to March b) Actual amount spent during the year from companies 4.30 - prepayment of existing 2023. Interest on a fixed rate bank account borrowings basis, payable annually. The c) Remaining unpaid at the end of the year with company* 2.70 - effective yield is in compliance - In respect of other than ongoing projects: with Section 186 of the a) Amount required to be spent during the year 5.88 11.63 Companies Act, 2013. b) Actual amount spent during the year from companies 5.88 12.00 As at the beginning of the year - - bank account Given during the year 439.45 - *Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, the unspent amount Foreign currency exchange (0.55) - has been subsequently deposited in a “Unspent CSR Account”. fluctuation gain / (loss) As at end of the year 438.90 - (g) The Code of Social Security, 2020 (‘Code’) relating to employee benefits during employment and post Maximum balance outstanding 439.45 - employment received Presidential assent in September 2020 and its effective date is yet to be notified. The Company will assess and record the impact of the Code, once it is effective. SRF Global BV (denominated Principal amount repayable in FINANCIAL STATEMENTS in EUR) - given for June 2023. Interest on a fixed As per our report attached For and on behalf of the Board of Directors For B S R & Co. LLP prepayment of existing rate basis, payable annually. Chartered Accountants borrowings The effective yield is in ICAI Firm registration no. compliance with Section 186 101248W / W-100022 of the Companies Act, 2013. Kaushal Kishore Ashish Bharat Ram Kartik Bharat Ram As at the beginning of the year - - Partner Managing Director Deputy Managing Director Given during the year 178.03 - Membership No.: 090075 DIN - 00671567 DIN - 00008557 Foreign currency exchange (6.48) - Place : Delhi Place : Delhi Place : Delhi fluctuation gain / (loss) Date : May 21, 2021 Date : May 05, 2021 Date : May 05, 2021 As at end of the year 171.55 - Rahul Jain Bharti Gupta Ramola Rajat Lakhanpal Maximum balance outstanding 178.03 - President & CFO Director Vice President Place : Gurugram DIN - 00356188 (Corporate Compliance) Date : May 05, 2021 Place : Gurugram and Company Secretary (e) The Company has established a comprehensive system of maintenance of information and documents Date : May 05, 2021 Place : Delhi as required by transfer pricing legislation under section 92D for its international transactions as well as Date : May 05, 2021

248 Annual Report 2020-21 249 The key audit matter How the matter was addressed in our audit INDEPENDENT AUDITORS’ REPORT The Group uses derivative financial instruments to • For selected samples via statistical routines, mitigate foreign currency risk and interest rate risk obtained external confirmations from primarily through foreign currency forward exchange counterparties of the year end positions as well as

contracts and interest rate swaps. agreed to original agreements. CORPORATE OVERVIEW To the Members of SRF Limited changes in equity and consolidated cash flows for the Further, the Group has been using hedge relationship • Performed sample tests of valuation and accounting year then ended. Report on the Audit of Consolidated designation as per criteria set out in relevant Indian of these transactions. In doing so we have involved Financial Statements Basis for Opinion accounting standards. valuation specialists to assist us in carrying out We conducted our audit in accordance with the aforesaid procedure, as considered necessary. Opinion Accounting thereof and related presentation Standards on Auditing (SAs) specified under section and disclosures of these transactions require • Assessed the adequacy of disclosures in the financial We have audited the consolidated financial 143(10) of the Act. Our responsibilities under those SAs significant judgement. statements in respect of both non-derivative and statements of SRF Limited (hereinafter referred to as are further described in the Auditor’s Responsibilities derivative financial instruments. the ‘Holding Company”) and its subsidiaries (Holding for the Audit of the Consolidated Financial Statements Given the significant level of judgement and Company and its subsidiaries together referred to section of our report. We are independent of the estimation involved and the quantitative significance, as “the Group”), which comprise the consolidated Group in accordance with the ethical requirements we have determined this to be a key audit matter. balance sheet as at 31 March 2021, and the that are relevant to our audit of the consolidated consolidated statement of profit and loss (including financial statements in terms of the Code of Ethics other comprehensive income), consolidated statement issued by the Institute of Chartered Accountants Other Information statements in term of the requirements of the Act of changes in equity and consolidated statement of of India and the relevant provisions of the Act, and The Holding Company’s management and Board of that give a true and fair view of the consolidated cash flows for the year then ended, and notes to we have fulfilled our other ethical responsibilities in Directors are responsible for the other information. state of affairs, consolidated profit/ loss and other STATUTORY REPORTS the consolidated financial statements, including a accordance with these requirements. We believe that The other information comprises the information comprehensive income, consolidated statement of summary of significant accounting policies and other the audit evidence obtained by us along with the included in the holding Company’s annual report, but changes in equity and consolidated cash flows of the explanatory information (hereinafter referred to as consideration of audit reports of the other auditors does not include the financial statements and our Group in accordance with the accounting principles “the consolidated financial statements”). referred to in sub paragraph (a) of the “Other Matters” auditors’ report thereon. generally accepted in India, including the Indian paragraph below, is sufficient and appropriate to In our opinion and to the best of our information and Accounting Standards (Ind AS) specified under section provide a basis for our opinion on the consolidated according to the explanations given to us, and based Our opinion on the consolidated financial statements 133 of the Act. The respective Management and financial statements. on the consideration of reports of other auditors on does not cover the other information and we do not Board of Directors of the companies included in the separate financial statements of such subsidiaries Key Audit Matters express any form of assurance conclusion thereon. Group are responsible for maintenance of adequate as were audited by the other auditors, the aforesaid Key audit matters are those matters that, in our accounting records in accordance with the provisions In connection with our audit of the consolidated consolidated financial statements give the information professional judgment, were of most significance in of the Act for safeguarding the assets of each financial statements, our responsibility is to read the required by the Companies Act, 2013 (“Act”) in the our audit of the consolidated financial statements of company. and for preventing and detecting frauds other information and, in doing so, consider whether manner so required and give a true and fair view in the current period. These matters were addressed in and other irregularities; the selection and application the other information is materially inconsistent conformity with the accounting principles generally the context of our audit of the consolidated financial of appropriate accounting policies; making judgments accepted in India, of the consolidated state of affairs with the consolidated financial statements or our statements as a whole, and in forming our opinion and estimates that are reasonable and prudent; of the Group as at 31 March 2021, of its consolidated thereon, and we do not provide a separate opinion knowledge obtained in the audit or otherwise appears FINANCIAL STATEMENTS and the design, implementation and maintenance profit and other comprehensive income, consolidated on these matters. to be materially misstated. If, based on the work we of adequate internal financial controls, that were have performed and based on the work done/ audit operating effectively for ensuring accuracy and report of other auditors, we conclude that there is a The key audit matter How the matter was addressed in our audit completeness of the accounting records, relevant to material misstatement of this other information, we Accounting for derivatives In view of the significance of the matter, we the preparation and presentation of the consolidated An important element of Group’s fund-raising applied the following audit procedures in this area, are required to report that fact. We have nothing to financial statements that give a true and fair view strategy involves various types of borrowings among others, to obtain sufficient appropriate report in this regard. and are free from material misstatement, whether including foreign currency denominated borrowings audit evidence: due to fraud or error, which have been used for the and a combination of fixed and floating interest Management’s and Board of Directors’ • Tested the design, implementation and operating purpose of preparation of the consolidated financial rates, and also foreign currency denominated loans Responsibilities for the Consolidated effectiveness of controls over the Group’s treasury statements by the Management and Directors of the and advances to other parties. The Group’s operating and other related functions which directly impact Financial Statements activities are also exposed to significant foreign Holding Company, as aforesaid. the relevant account balances and transactions, The Holding Company’s Management and Board exchange risk (refer to note 40 of the consolidated including hedge accounting. of Directors are responsible for the preparation In preparing the consolidated financial statements, financial statements). and presentation of these consolidated financial the respective Management and Board of Directors of

250 Annual Report 2020-21 251 the companies included in the Group are responsible audit procedures that are appropriate in the we are the independent auditors. For the other Other Matters for assessing the ability of each company to continue circumstances. Under section 143(3)(i) of the entities included in the consolidated financial (a) We did not audit the financial statements of as a going concern, disclosing, as applicable, matters Act, we are also responsible for expressing statements, which have been audited by other seven subsidiaries, whose financial information related to going concern and using the going our opinion on the internal financial controls auditors, such other auditors remain responsible reflect total assets of ` 3,586.81 crores concern basis of accounting unless the respective with reference to the consolidated financial for the direction, supervision and performance (before consolidation adjustments) as at 31 CORPORATE OVERVIEW Board of Directors either intends to liquidate the statements and the operating effectiveness of of the audits carried out by them. We remain March 2021, total revenues of ` 1,476.49 crores Company or to cease operations, or has no realistic such controls based on our audit. solely responsible for our audit opinion. (before consolidation adjustments) and net cash alternative but to do so. Our responsibilities in this regard are further inflows amounting to ` 33.40 crores (before • evaluate the appropriateness of accounting described in para (a) of the section titled ‘Other consolidation adjustments) for the year ended The respective Board of Directors of the companies policies used and the reasonableness of Matters’ in this audit report. on that date, as considered in the consolidated included in the Group is responsible for overseeing accounting estimates and related disclosures financial statements. These financial statements the financial reporting process of each company. made by the Management and Board of Directors. We believe that the audit evidence obtained by us have been audited by other auditors whose along with the consideration of audit reports of the reports have been furnished to us by Auditor’s Responsibilities for the Audit of • conclude on the appropriateness of Management other auditors referred to in sub-paragraph (a) of the Management and our opinion on the the Consolidated Financial Statements and Board of Directors use of the going the Other Matters paragraph below, is sufficient and consolidated financial statements, in so far as it Our objectives are to obtain reasonable assurance concern basis of accounting in preparation of appropriate to provide a basis for our audit opinion on relates to the amounts and disclosures included about whether the consolidated financial statements as consolidated financial statements and, based the consolidated financial statements. in respect of these subsidiaries and our report a whole are free from material misstatement, whether on the audit evidence obtained, whether a due to fraud or error, and to issue an auditor’s report in terms of sub-section (3) of Section 143 of material uncertainty exists related to events We communicate with those charged with governance that includes our opinion. Reasonable assurance the Act, in so far as it relates to the aforesaid STATUTORY REPORTS or conditions that may cast significant doubt of the Holding Company and such other entities is a high level of assurance, but is not a guarantee subsidiaries is based solely on the audit reports on the appropriateness of this assumption. included in the consolidated financial statements of that an audit conducted in accordance with SAs will of the other auditors. If we conclude that a material uncertainty which we are the independent auditors regarding, always detect a material misstatement when it exists. exists, we are required to draw attention in among other matters, the planned scope and timing Certain of these subsidiaries are located outside Misstatements can arise from fraud or error and are our auditor’s report to the related disclosures of the audit and significant audit findings, including India whose financial statements and other considered material if, individually or in the aggregate, in the consolidated financial statements or, if any significant deficiencies in internal control that we financial information have been prepared in they could reasonably be expected to influence the such disclosures are inadequate, to modify our identify during our audit. accordance with accounting principles generally economic decisions of users taken on the basis of opinion. Our conclusions are based on the audit accepted in their respective countries and these consolidated financial statements. evidence obtained up to the date of our auditor’s We also provide those charged with governance with which have been audited by other auditors a statement that we have complied with relevant As part of an audit in accordance with SAs, we exercise report. However, future events or conditions under generally accepted auditing standards ethical requirements regarding independence, and professional judgment and maintain professional may cause the Group to cease to continue as applicable in their respective countries. to communicate with them all relationships and skepticism throughout the audit. We also: a going concern. The Company’s management has converted other matters that may reasonably be thought to the financial statements of such subsidiaries • identify and assess the risks of material • evaluate the overall presentation, structure and bear on our independence, and where applicable, located outside India from accounting principles

misstatement of the consolidated financial content of the consolidated financial statements, related safeguards. generally accepted in their respective countries FINANCIAL STATEMENTS statements, whether due to fraud or error, including the disclosures, and whether the to accounting principles generally accepted From the matters communicated with those charged design and perform audit procedures responsive consolidated financial statements represent the in India. We have audited these conversion to those risks, and obtain audit evidence that underlying transactions and events in a manner with governance, we determine those matters adjustments made by the Company’s is sufficient and appropriate to provide a basis that achieves fair presentation; and that were of most significance in the audit of the management. Our opinion in so far as it relates for our opinion. The risk of not detecting a consolidated financial statements of the current period to the balances and affairs of such subsidiaries material misstatement resulting from fraud • obtain sufficient appropriate audit evidence and are therefore the key audit matters. We describe located outside India is based on the report of is higher than for one resulting from error, as regarding the financial information of such these matters in our auditors’ report unless law or other auditors and the conversion adjustments fraud may involve collusion, forgery, intentional entities or business activities within the Group to regulation precludes public disclosure about the prepared by the management of the Company omissions, misrepresentations, or the override of express an opinion on the consolidated financial matter or when, in extremely rare circumstances, we and audited by us. internal control. statements. We are responsible for the direction, determine that a matter should not be communicated supervision and performance of the audit of in our report because the adverse consequences of Our opinion on the consolidated financial • obtain an understanding of internal control financial information of such entities included in doing so would reasonably be expected to outweigh statements, and our report on Other Legal relevant to the audit in order to design the consolidated financial statements of which the public interest benefits of such communication. and Regulatory Requirements below, is not

252 Annual Report 2020-21 253 modified in respect of the above matters with record by the Board of Directors of the iv. the disclosures in the consolidated financial the Act. The remuneration paid to any director respect to our reliance on the work done and the Holding Company and the reports of the statements regarding holdings as well as by the Holding Company and its subsidiary reports of the other auditors and the financial statutory auditors of its subsidiary company dealings in specified bank notes during company is not in excess of the limit laid down statements/financial information certified by incorporated in India, none of the directors the period from 8 November 2016 to 30 under Section 197 of the Act. The Ministry of

the Management. of the Group companies incorporated in December 2016 have not been made in the Corporate Affairs has not prescribed other details CORPORATE OVERVIEW India is disqualified as on 31 March 2021 financial statements since they do not pertain under Section 197(16) which are required to be Report on Other Legal and Regulatory from being appointed as a director in terms to the financial year ended 31 March 2021. commented upon by us. Requirements of Section 164(2) of the Act; and C. With respect to the matter to be included in the A. As required by Section 143(3) of the Act, f) with respect to the adequacy of the internal Auditor’s report under section 197(16): For B S R & Co. LLP based on our audit and on the consideration financial controls with reference to financial Chartered Accountants of reports of the other auditors on separate statements of the Holding Company and In our opinion and according to the information financial statements of such subsidiaries as were ICAI Firm Registration No.: 101248W/W-100022 its subsidiary company incorporated in and explanations given to us and based on audited by other auditors, as noted in the ‘Other India and the operating effectiveness of the reports of the statutory auditors of such Matters’ paragraph, we report, to the extent such controls, refer to our separate Report subsidiary company incorporated in India which applicable, that: Kaushal Kishore in “Annexure A”. was not audited by us, the remuneration paid during the current year by the Holding Company Partner a) we have sought and obtained all the B. With respect to the other matters to be included and its subsidiary company to its directors is in Place: Delhi Membership No. 090075 information and explanations which to the in the Auditor’s Report in accordance with Rule accordance with the provisions of Section 197 of Date: 21 May 2021 UDIN: 21090075AAAAAK7147

best of our knowledge and belief were STATUTORY REPORTS 11 of the Companies (Audit and Auditor’s) Rules, necessary for the purposes of our audit of the 2014, in our opinion and to the best of our aforesaid consolidated financial statements. information and according to the explanations given to us and based on the consideration of b) in our opinion, proper books of account as the reports of the other auditors on separate required by law relating to preparation of the financial statements of the subsidiaries, as noted aforesaid consolidated financial statements in the ‘Other Matters’ paragraph: have been kept so far as it appears from our examination of those books and the reports i. the consolidated financial statements of the other auditors. disclose the impact of pending litigations as at 31 March 2021 on the consolidated c) the consolidated balance sheet, the financial position of the Group. Refer Note consolidated statement of profit and loss 33 to the consolidated financial statements. (including other comprehensive income), the consolidated statement of changes ii. provision has been made in the consolidated

in equity and the consolidated statement financial statements, as required under FINANCIAL STATEMENTS of cash flows dealt with by this Report the applicable law or Ind AS, for material are in agreement with the relevant books foreseeable losses, on long-term of account maintained for the purpose contracts including derivative contracts. of preparation of the consolidated Refer Note 40 to the consolidated financial financial statements. statements in respect of such items as it relates to the Group. d) in our opinion, the aforesaid consolidated financial statements comply with the Ind AS iii. there are no amounts which are required specified under section 133 of the Act. to be transferred to the Investor Education and Protection Fund by the Holding e) on the basis of the written representations Company or its subsidiary company received from the directors of the Holding incorporated in India during the year Company as on 31 March 2021 taken on ended 31 March 2021.

254 Annual Report 2020-21 255 reports referred to in the Other Matters paragraph of collusion or improper management override Annexure A to the Independent Auditors’ report on the consolidated below, is sufficient and appropriate to provide a basis of controls, material misstatements due to for our audit opinion on the internal financial controls financial statements of SRF Limited for the year ended 31 March 2021 error or fraud may occur and not be detected. with reference to consolidated financial statements. Also, projections of any evaluation of the internal

financial controls with reference to consolidated CORPORATE OVERVIEW Report on the internal financial controls adequate internal financial controls that were operating Meaning of Internal Financial controls with Reference to Consolidated Financial financial statements to future periods are subject with reference to the aforesaid consolidated effectively for ensuring the orderly and efficient conduct Statements to the risk that the internal financial controls with financial statements under Clause (i) of Sub- of its business, including adherence to the respective A company’s internal financial controls with reference to reference to consolidated financial statements section 3 of Section 143 of the Companies company’s policies, the safeguarding of its assets, consolidated financial statements is a process designed may become inadequate because of changes in Act, 2013 the prevention and detection of frauds and errors, to provide reasonable assurance regarding the reliability conditions, or that the degree of compliance with the accuracy and completeness of the accounting of financial reporting and the preparation of financial the policies or procedures may deteriorate. (Referred to in paragraph A(f) under ‘Report records, and the timely preparation of reliable financial statements for external purposes in accordance with on Other Legal and Regulatory Requirements’ information, as required under the Companies Act, generally accepted accounting principles. A company’s Other Matters section of our report of even date) 2013 (hereinafter referred to as “the Act”). internal financial controls with reference to consolidated Our aforesaid reports under Section 143(3)(i) of the financial statements includes those policies and Opinion Auditors’ Responsibility Act on the adequacy and operating effectiveness procedures that (1) pertain to the maintenance of In conjunction with our audit of the consolidated Our responsibility is to express an opinion on the of the internal financial controls with reference to records that, in reasonable detail, accurately and fairly financial statements of SRF Limited as of and for internal financial controls with reference to consolidated consolidated financial statements insofar as it relates reflect the transactions and dispositions of the assets the year ended 31 March 2021, we have audited financial statements based on our audit. We conducted to one subsidiary company, which is a company of the company; (2) provide reasonable assurance the internal financial controls with reference to our audit in accordance with the Guidance Note and incorporated in India, is based on the corresponding that transactions are recorded as necessary to permit consolidated financial statements of SRF Limited the Standards on Auditing, prescribed under section STATUTORY REPORTS preparation of financial statements in accordance report of the auditor of such company incorporated (hereinafter referred to as “the Holding Company”) 143(10) of the Act, to the extent applicable to an with generally accepted accounting principles, and in India. Our opinion is not qualified in respect and such company incorporated in India under the audit of internal financial controls with reference to that receipts and expenditures of the company are of this matter. Companies Act, 2013 which is its subsidiary company, consolidated financial statements. Those Standards being made only in accordance with authorisations of as of that date. and the Guidance Note require that we comply management and directors of the company; and (3) with ethical requirements and plan and perform the provide reasonable assurance regarding prevention or For B S R & Co. LLP In our opinion, the Holding Company and such audit to obtain reasonable assurance about whether timely detection of unauthorised acquisition, use, or company incorporated in India which is its subsidiary adequate internal financial controls with reference to Chartered Accountants disposition of the company’s assets that could have a company, have, in all material respects, adequate consolidated financial statements were established ICAI Firm Registration No.: 101248W/W-100022 material effect on the financial statements. internal financial controls with reference to and maintained and if such controls operated consolidated financial statements and such internal effectively in all material respects. Inherent Limitations of Internal Financial financial controls were operating effectively as at 31 controls with Reference to consolidated Kaushal Kishore March 2021, based on the internal financial controls Our audit involves performing procedures to obtain Financial Statements Partner with reference to consolidated financial statements audit evidence about the adequacy of the internal Because of the inherent limitations of internal criteria established by such companies considering financial controls with reference to consolidated financial controls with reference to consolidated Place: Delhi Membership No. 090075 the essential components of such internal controls financial statements and their operating effectiveness. financial statements, including the possibility Date: 21 May 2021 UDIN: 21090075AAAAAK7147 stated in the Guidance Note on Audit of Internal Our audit of internal financial controls with reference to FINANCIAL STATEMENTS Financial Controls Over Financial Reporting issued by consolidated financial statements included obtaining the Institute of Chartered Accountants of India (the an understanding of internal financial controls with “Guidance Note”). reference to consolidated financial statements, assessing the risk that a material weakness exists, Management’s Responsibility for Internal and testing and evaluating the design and operating Financial Controls effectiveness of the internal controls based on the The respective Company’s management and the assessed risk. The procedures selected depend on Board of Directors are responsible for establishing and the auditor’s judgement, including the assessment of maintaining internal financial controls with reference to the risks of material misstatement of the consolidated consolidated financial statements based on the criteria financial statements, whether due to fraud or error. established by the respective Company considering the essential components of internal control stated We believe that the audit evidence we have obtained in the Guidance Note. These responsibilities include and the audit evidence obtained by the other auditors the design, implementation and maintenance of of the relevant subsidiary company in terms of their

256 Annual Report 2020-21 257 CONSOLIDATED BALANCE SHEET CONSOLIDATED BALANCE SHEET (Contd.) as at March 31, 2021 as at March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Particulars Note As at As at Particulars Note As at As at No. March 31, 2021 March 31, 2020 No. March 31, 2021 March 31, 2020 ASSETS Liabilities Non-current assets Non-current liabilities Property, plant and equipment 4 7,497.21 6,022.93 Financial liabilities (i) Borrowings 18 1,965.01 2,311.63 Right-of-use assets 43 216.76 227.58 (ii) Lease liabilities 43 63.83 73.98 Capital work-in-progress 772.26 1,393.29 (iii) Other financial liabilities 21 0.54 22.87 Goodwill 5 0.62 0.62 Provisions 19 43.55 37.53 Other intangible assets 6 112.37 116.46 Deferred tax liabilities (net) 9 386.16 175.50 Financial assets Other non-current liabilities 23 42.77 14.00 (i) Investments 7 4.16 4.16 Total non-current liabilities 2,501.86 2,635.51 (ii) Loans 8 46.44 43.87 Current liabilities Financial liabilities (iii) Other financial assets 10 44.69 15.86 (i) Borrowings 18 965.70 955.44 STATUTORY REPORTS Deferred tax assets 9 18.14 14.26 (ii) Lease liabilities 43 13.80 13.71 Non current tax assets (net) 22 33.74 35.03 (iii) Trade payables 20 Other non-current assets 11 244.10 96.50 a) Total outstanding dues of micro enterprises 33.37 30.36 Total non-current assets 8,990.49 7,970.56 and small enterprises Current assets b) Total outstanding dues of creditors other 1,551.82 1,081.33 Inventories 12 1,465.82 1,201.23 than micro enterprises and small enterprises (iv) Other financial liabilities 21 892.54 1,124.54 Financial assets Other current liabilities 23 92.73 86.18 (i) Investments 7 412.52 198.50 Provisions 19 8.68 6.62 (ii) Trade receivables 13 1,274.56 891.07 Current tax liabilities (Net) 22 12.49 9.75 (iii) Cash and cash equivalents 14 138.29 116.44 Total current liabilities 3,571.13 3,307.93 (iv) Bank balances other than above 15 143.71 9.03 Total Liabilities 6,072.99 5,943.44 (v) Loans 8 11.21 25.17 TOTAL EQUITY AND LIABILITIES 12,929.41 10,876.76 (vi) Other financial assets 10 225.85 170.38 Summary of significant accounting policies 1-3 See accompanying notes to the consolidated financial statements 4 to 46 Current tax assets (net) 22 - 1.74

Other current assets 11 266.96 280.80 FINANCIAL STATEMENTS Total current assets 3,938.92 2,894.36 As per our report attached For and on behalf of the Board of Directors For B S R & Co. LLP Assets classified as held for sale 42 - 11.84 Chartered Accountants TOTAL ASSETS 12,929.41 10,876.76 ICAI Firm registration no. 101248W/W-100022 EQUITY AND LIABILITIES Kaushal Kishore Ashish Bharat Ram Kartik Bharat Ram Bharti Gupta Ramola Equity Partner Managing Director Deputy Managing Director Director Equity share capital 16 60.26 58.50 Membership No.: 090075 DIN - 00671567 DIN - 00008557 DIN - 00356188 Other equity 17 6,796.16 4,874.82 Place : Delhi Place : Delhi Place : Delhi Place : Gurugram Date : May 21, 2021 Date : May 05, 2021 Date : May 05, 2021 Date : May 05, 2021 Total equity 6,856.42 4,933.32 Rahul Jain Rajat Lakhanpal President & CFO Vice President Place : Gurugram (Corporate Compliance) and Date : May 05, 2021 Company Secretary Place : Delhi Date : May 05, 2021

258 Annual Report 2020-21 259 CONSOLIDATED Statement of Profit and Loss CONSOLIDATED Statement of Profit and Loss (Contd.) for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Particulars Note Year ended Year ended Particulars Note Year ended Year ended No. March 31, 2021 March 31, 2020 No. March 31, 2021 March 31, 2020 I Revenue from operations 24 8,400.04 7,209.41 (ii) - Effective portion of gains and loss 17.3 132.33 (160.53) II Other income 25 66.35 49.05 on designated portion of hedging III Total Income (I + II) 8,466.39 7,258.46 instruments in a cash flow hedge IV Expenses Income tax on item (ii) above 32 (46.24) 57.58 Cost of materials consumed 26.1 4,027.68 3,687.39 (iii) - Cost of hedging reserve 17.4 3.46 - Purchases of stock-in-trade 26.2 62.92 91.40 Income tax on item (iii) above (0.33) - Changes in inventories of finished goods, 26.3 (71.66) (91.82) Total other comprehensive income for the 127.50 (119.01) work-in-progress and stock-in-trade year, net of taxes (A(i) + B(i+ii+iii)) Employee benefits expense 27 621.40 541.92 Finance costs 28 133.95 200.68 XIII Total comprehensive income for the year 1,325.44 900.08 (XI + XII) Depreciation and amortisation expense 29 453.08 388.61 Basic and Diluted earning per equity share in ` 39 Other expenses 30 1,626.37 1,525.58 STATUTORY REPORTS From continuing operations 205.59 159.34 Total Expenses (IV) 6,853.74 6,343.76 From discontinued operations (0.05) 17.95 V Profit before tax from continuing operations 1,612.65 914.70 (III - IV) From continuing and discontinued operations 205.54 177.29 VI Tax expense related to continuing 31 Summary of significant accounting policies 1-3 operations See accompanying notes to the consolidated financial statements 4-46 Current tax 357.99 104.26

Deferred tax As per our report attached For and on behalf of the Board of Directors MAT credit entitlement (5.38) (36.73) For B S R & Co. LLP Others 61.79 (68.73) Chartered Accountants ICAI Firm registration no. Total tax expense related to continuing 414.40 (1.20) 101248W/W-100022 operations Kaushal Kishore Ashish Bharat Ram Kartik Bharat Ram Bharti Gupta Ramola VII Profit for the year from continuing operations 1,198.25 915.90 Partner Managing Director Deputy Managing Director Director (V - VI) Membership No.: 090075 DIN - 00671567 DIN - 00008557 DIN - 00356188 Place : Delhi Place : Delhi Place : Delhi Place : Gurugram VIII Profit before tax from discontinued 42 (2.73) 155.85

Date : May 21, 2021 Date : May 05, 2021 Date : May 05, 2021 Date : May 05, 2021 FINANCIAL STATEMENTS operations Rahul Jain Rajat Lakhanpal IX Tax expense of discontinued operations 31 (2.42) 52.66 President & CFO Vice President X Profit for the year from discontinued (0.31) 103.19 Place : Gurugram (Corporate Compliance) and operations (VIII - IX) Date : May 05, 2021 Company Secretary Place : Delhi XI Total Profit for the year (VII + X) 1,197.94 1,019.09 Date : May 05, 2021 XII Other comprehensive income A Items that will not be reclassified to profit or loss (i) - Remeasurements of the defined benefit plans 17.2, 36.2 2.68 (8.25) Income tax on item (i) above 17.2, 32 (0.84) 2.86 B Items that will be reclassified to profit or loss (i) - Exchange differences on translation of 17.9 36.44 (10.67) foreign operations

260 Annual Report 2020-21 261 CONSOLIDATED CASH FLOW STATEMENT CONSOLIDATED CASH FLOW STATEMENT (Contd.) for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated)

Particulars Year ended Year ended Particulars Year ended Year ended CORPORATE OVERVIEW March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 A CASH FLOW FROM OPERATING ACTIVITIES D EFFECT OF EXCHANGE RATE CHANGES 0.96 1.77 Profit before tax Net movement in cash and cash equivalents 21.85 (73.11) - Continuing Operations 1,612.65 914.70 Cash and cash equivalents at the beginning of the year 116.44 189.55 - Discontinued Operations (2.73) 155.85 Cash and cash equivalents at the end of the year (Refer to note 14) 138.29 116.44 Adjustments for: Notes: Finance costs 134.01 201.56 (i) The cash flow statement has been prepared under the indirect method as set out in Indian Accounting Standard (Ind AS)-7on Interest income (9.02) (15.11) “Statement of Cash Flows” Net (gain) / loss on sale of property, plant and equipment (5.99) (12.76) (ii) During the year, the Company paid in cash ` 10.18 crores (Previous year: `12.00 crores) towards corporate social responsibility Net gain on financial assets measured at fair value through profit and loss (25.45) (9.38) (CSR) expenditure. Credit impaired assets provided / written off 11.94 2.18 (iii) For cash flow information of discontinued operations, Refer note 42. Amortisation of grant income (1.38) (3.37) (iv) The following table discloses changes in liabilities arising from historical activities including both cash and non cash changes. Depreciation and amortisation expense 453.08 392.90 Property, plant and equipment and inventory discarded / provided 3.40 74.58 Particulars As at Cash Non-cash changes As at Provision / liabilities no longer required written back (11.99) (4.47) March 31, flow from Upfront Exchange Finance Interim Lease March 31, Net unrealised currency exchange fluctuations loss /(gain) (9.05) 7.15 2020 financing fees fluctuation cost# dividend liability 2021 Profit on sale of business - (233.74) activities amortised changes# declared recognised Employee share based payment expense 0.97 0.97 Equity share capital 58.50 1.76 - - - - - 60.26 Stamp duty on purchase of investments 0.15 - Security Premium (net of - 736.25 - - - - - 736.25

Adjustments for (increase) /decrease in operating assets :- issue expenses) STATUTORY REPORTS Trade receivables (400.10) 140.75 Non current borrowings* 3,091.38 (685.57) 4.34 15.11 - - - 2,425.26 Inventories (259.83) 5.26 Current borrowings 955.44 14.78 - (4.52) - - - 965.70 Loans (current) 15.84 (19.38) Interest accrued 29.14 (157.36) - - 134.01 - - 5.79 Loans (non-current) (2.58) (9.84) Lease liability 87.70 (20.19) - - 6.49 - 3.63 77.63 Other assets (current) 20.93 132.80 Dividend and taxes thereon 6.04 (140.78) - - - 141.31 - 6.57 Other assets (non-current) (1.99) 10.10 Total 4,228.20 (251.11) 4.34 10.59 140.50 141.31 3.63 4,277.46 Adjustments for increase / (decrease) in operating liabilities :- Trade payables 480.23 (272.01) Particulars As at Cash Non-cash changes Lease As at Provisions 7.46 (1.34) March 31, flow from Upfront fees Exchange Finance Interim liability March 31, Other liabilities (non-current) - (0.17) 2019 financing amortised fluctuation cost# dividend recognised 2020 Other liabilities (current) 16.44 (10.08) activities changes# declared^ Cash generated from operations 2,026.99 1,447.15 Equity share capital 58.50 ------58.50 Income taxes paid (net of refunds) (255.31) (142.71) Non current borrowings* 2,602.80 320.45 3.42 164.71 - - - 3,091.38 Net cash generated from operating activities 1,771.68 1,304.44 Current borrowings 1,127.39 (199.75) - 27.80 - - - 955.44 B CASH FLOW FROM INVESTING ACTIVITIES Interest accrued 31.54 (203.96) - - 201.56 - - 29.14 Net Proceeds/ (purchases) of mutual funds (188.57) (88.63) Lease liability - (18.87) - 6.70 99.87 87.70 Stamp duty on purchase of investments (0.15) - Dividend and taxes thereon 5.89 (96.86) - - - 97.01 - 6.04 Purchase of current investments (others) - (4.05) Total 3,826.12 (198.99) 3.42 192.51 208.26 97.01 99.87 4,228.20 Proceeds from sale of business - 315.77 * Costs incurred on sale of business - (5.71) including current maturity of long term debts ^Including taxes on dividend Income tax paid on profit from sale of business - (40.84) # Interest received 0.09 15.56 including amount capitalized FINANCIAL STATEMENTS Bank balances not considered as cash and cash equivalents (134.52) 0.52 Summary of significant accounting policies 1 to 3 Payment for purchase of property, plant, equipment, capital work-in- (1,214.35) (1,389.16) See accompanying notes to the consolidated financial statements 4 to 46 progress and intangible assets As per our report attached For and on behalf of the Board of Directors Proceeds from disposal of property, plant and equipment 9.66 16.21 For B S R & Co. LLP Grant Received from Government of Republic of Hungary 28.16 - Chartered Accountants Net cash used in investing activities (1,499.68) (1,180.33) ICAI Firm registration no. C CASH FLOW FROM FINANCING ACTIVITIES 101248W/W-100022 Proceeds from issue of shares 750.00 - Cost incurred on issue of shares (11.99) Kaushal Kishore Ashish Bharat Ram Kartik Bharat Ram Bharti Gupta Ramola Proceeds from borrowings (Non-current) 1,304.84 1,277.92 Partner Managing Director Deputy Managing Director Director Repayment of borrowings (Non-current) (1,990.41) (957.47) Membership No.: 090075 DIN - 00671567 DIN - 00008557 DIN - 00356188 Net proceeds / (repayment) from borrowings (Current) 14.78 (199.75) Place : Delhi Place : Delhi Place : Delhi Place : Gurugram Date : May 21, 2021 Date : May 05, 2021 Date : May 05, 2021 Date : May 05, 2021 Dividends on equity share capital paid (140.78) (80.32) Corporate dividend tax paid - (16.54) Rahul Jain Rajat Lakhanpal Payment towards lease liability (20.19) (18.87) President & CFO Vice President Finance costs paid (157.36) (203.96) Place : Gurugram (Corporate Compliance) and Net cash (used in) / generated from financing activities (251.11) (198.99) Date : May 05, 2021 Company Secretary Place : Delhi Date : May 05, 2021

262 Annual Report 2020-21 263 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW (a) Equity share capital 1. Corporate Information The functional currency of the Company is ‘INR’. Amount The functional currencies of Group companies Balance at March 31, 2019 58.50 SRF Limited (“the Company”) is a public limited Changes in equity share capital during the year - Company domiciled in India and incorporated are USD, THB, ZAR and EURO. The financial Balance at March 31, 2020 58.50 under the provisions of the Companies Act, 1956. statements are presented in INR and all values Changes in equity share capital during the year 1.76 Balance at March 31, 2021 60.26 The Company’s equity shares are listed at the are rounded to the nearest crores, except when Bombay Stock Exchange (BSE) and the National otherwise indicated. (b) Other Equity Stock Exchange (NSE). The registered office of * * Reserves and Surplus Items of other comprehensive income The consolidated financial statements Capital General Capital Debenture Securities Employee Retained Foreign Equity Effective Cost of the Company is situated at The Galleria, DLF reserve reserve redemption redemption Premium share based earnings currency instruments portion of hedging Mayur Vihar, Unit No. 236 and 237, Second Floor, incorporate the financial statements of the reserve reserve payment translation through other cash flow reserve holding group and its subsidiaries. Control is reserve reserve comprehensive hedge Mayur Vihar Place, Noida Link Road, Mayur Vihar income Phase I Extn, Delhi - 110091. The Company’s achieved when the group : Balance at March 31, 2019 193.77 573.77 10.48 75.00 - 0.58 3,201.00 (4.00) (4.22) 24.39 - parent company is KAMA Holdings Limited. Profit for the year ------1,019.09 - - - • has power over the investee; Other comprehensive income for ------(5.39) (10.67) - (102.95) the year, net of income tax The principal activities of the Company and • is exposed, or has rights, to variable returns Total comprehensive income ------1,013.70 (10.67) - (102.95) - for the year its subsidiaries (together the Group) are from its involvement with the investee; and ` Payment of dividend ( 14 per share) ------(80.47) - - - manufacturing, purchase and sale of technical STATUTORY REPORTS • has the ability to use its power to Tax on Dividend ------(16.54) - - - textiles, chemicals, packaging films and Transfer from Debenture - - - - affect its returns. redemption reserve other polymers. Employee share based payments - - - - 0.98 - - - - to employees Consolidation of a subsidiary begins when the Balance at March 31, 2020 193.77 573.77 10.48 75.00 - 1.56 4,117.69 (14.67) (4.22) (78.56) - The consolidated financial statements were Profit for the year - - - - - 1,197.94 - - - authorised for issue in accordance with a group obtains control over the subsidiary and Other comprehensive income for - - - - - 1.84 36.44 - 86.09 3.13 resolution of the directors on May 05, 2021. ceases when the group loses control of the the year, net of income tax Total comprehensive income ------1,199.78 36.44 - 86.09 3.13 subsidiary. Specifically, income and expenses of for the year 2. Significant Accounting Policies a subsidiary acquired or disposed of during the Payment of dividend (` 24 per share) ------(141.31) - - - Tax on Dividend ------2.1 Basis of Preparation year are included in the consolidated statement Employee share based payments - - - - - 0.96 - - - - These consolidated financial statements are of profit and loss from the date the group gains to employees Transfer from Debenture - 75.00 - (75.00) ------prepared in accordance with Indian Accounting control until the date when the group ceases to redemption reserve Standards (Ind AS), under the Companies control the subsidiary. Transfer to Debenture - - - 62.50 - - (62.50) - - - redemption reserve (Indian Accounting Standards) Rules, 2015 Premium on issue of equity - - - - 736.25 notified under section 133 of the Companies Profit or loss and each component of other ^ shares (net of issue expenses) comprehensive income are attributed to the Balance at March 31, 2021 193.77 648.77 10.48 62.50 736.25 2.52 5,113.66 21.77 (4.22) 7.53 3.13 Act 2013 (“the Act”) as amended thereafter and owners of the group and to the non-controlling *Refer note 17 other relevant provisions of the Act. ^Refer note 16.1 interests. Total comprehensive income of FINANCIAL STATEMENTS Summary of significant accounting policies 1 to 3 The consolidated financial statements have subsidiaries is attributed to the owners of the See accompanying notes to the consolidated financial statements 4 to 46 been prepared on an accrual basis and under group and to the non-controlling interests even As per our report attached For and on behalf of the Board of Directors the historical cost convention, except for the if this results in the non-controlling interests For B S R & Co. LLP following assets and liabilities which have been having a deficit balance. Chartered Accountants ICAI Firm registration no. measured at fair value: 101248W/W-100022 - Derivative financial instruments Necessary adjustments are made in the Kaushal Kishore Ashish Bharat Ram Kartik Bharat Ram Bharti Gupta Ramola - Certain financial assets and liabilities measured consolidated financial statements of subsidiaries Partner Managing Director Deputy Managing Director Director to bring their accounting policies in line with the Membership No.: 090075 DIN - 00671567 DIN - 00008557 DIN - 00356188 at fair value (refer accounting policy regarding Place : Delhi Place : Delhi Place : Delhi Place : Gurugram financial instruments) Company’s accounting policies if any. Date : May 21, 2021 Date : May 05, 2021 Date : May 05, 2021 Date : May 05, 2021 Rahul Jain Rajat Lakhanpal - Defined benefit plans - plan assets measured All intragroup assets and liabilities, equity, President & CFO Vice President at fair value less present value of defined income, expenses and cash flows relating to Place : Gurugram (Corporate Compliance) and benefit obligation Date : May 05, 2021 Company Secretary transactions between members of the Group are Place : Delhi - Share based payments eliminated in full on consolidation. Date : May 05, 2021

264 Annual Report 2020-21 265 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW The subsidiaries considered in the preparation of these consolidated financial statements are: their realisation in cash and cash equivalents, are carried at cost comprising direct cost, related the group has identified twelve months as its incidental expenses and attributable interest. Name of subsidiary Country of Proportion of Proportion of operating cycle for the purpose of current / non incorporation ownership as at ownership as at current classification of assets and liabilities. Spare parts are capitalized when they meet the March 31, 2021 March 31, 2020 definition of PPE, i.e., when the group intends to Indian Subsidiaries 2.3 Property, plant and equipment (PPE) use these for more than a period of 12 months. SRF Holiday Home Limited India 100% 100% Property, plant and equipment are stated at cost SRF Employees Welfare Trust (Controlled India * * of acquisition or construction less accumulated 2.4 Depreciation Trust) Depreciable amount for assets is the cost of an depreciation and accumulated impairment Foreign Subsidiaries asset, or other amount substituted for cost, less losses, if any. SRF Global BV Netherlands 100% 100% its estimated residual value. SRF Europe Kft Hungary 100% 100% All items of property plant and equipment have (100% subsidiary of SRF Global BV) been measured at fair value at the date of Depreciation has been provided on the cost SRF Industries (Thailand) Limited Thailand 100% 100% transition to Ind AS. The Group have opted such of assets less their residual values on straight (100% subsidiary of SRF Global BV) fair valuation as deemed cost at the transition line method on the basis of estimated useful

SRF Industex Belting (Pty) Limited Republic of South 100% 100% date i.e. April 1, 2015. life of assets determined by the Group which STATUTORY REPORTS (100% subsidiary of SRF Global BV) Africa are different from the useful life as prescribed SRF Flexipak (South Africa) (Pty) Limited Republic of South 100% 100% Cost of acquisition or construction is inclusive of in Schedule II of the 2013 Act. The estimated (100% subsidiary of SRF Global BV) Africa freight, duties, non recoverable taxes, incidental useful life of the assets have been assessed expenses and interest on loans attributable to based on technical advice, taking into account *By virtue of management control the acquisition of qualifying assets, up to the the nature of the asset, the estimated usage The group owns 22.60% (Previous year – - Held primarily for the purpose of trading date of commissioning of the assets. of the asset, the operating conditions of the 22.60%) in Malanpur Captive Power Limited asset, past history of replacement, anticipated - Cash or cash equivalent unless restricted Such cost includes the cost of replacing part and the same has not been considered for the technological changes, manufacturers warranties from being exchanged or used to settle a of the plant and equipment and borrowing and maintenance support, etc. and are as under: purposes of consolidation, since the group does liability for at least twelve months after the costs for qualifying assets, upto the date of not exercise significant influence over Malanpur Roads 40-50 years reporting period. commissioning of the assets Captive Power Limited. Buildings (including 5-60 years temporary structures) The group owns 26.32% (Previous year – All other assets are classified as non-current. Likewise, when a major inspection for faults is 26.32%) in Vaayu Renewable Energy (Tapti) performed, its cost is recognised in the carrying Plant and equipment 2-40 years A liability is current when: Private Limited and the same has not been amount of the plant and equipment as a replacement Furniture and fixtures 3-20 years - It is expected to be settled in normal if the recognition criteria is satisfied. All other considered for the purposes of consolidation, Office equipment 3-20 years FINANCIAL STATEMENTS since the group does not exercise significant operating cycle repair and maintenance costs are recognised in the Vehicles 4-5 years influence over Vaayu Renewable Energy (Tapti) - It is held primarily for the purpose of trading statement of profit and loss as incurred. Private Limited. - There is no unconditional right to defer the If significant parts of an item of property, Freehold land is not depreciated. settlement of the liability for at least twelve The principal accounting policies plant and equipment have different useful months after the reporting period lives, then they are accounted for as separate Depreciation is calculated on a pro rata basis are set out below. ` items of property, plant and equipment and except, assets costing upto 5,000 each, which The group classifies all other liabilities are fully depreciated in the year of purchase. 2.2 Current versus non-current classification depreciated accordingly. as non-current. The group presents assets and liabilities in the Assets are classified to the appropriate An item of property, plant and equipment or any balance sheet based on current/non-current Deferred tax assets and liabilities are classified categories of property, plant and equipment significant part initially recognised of such item classification. as non-current assets and liabilities. when completed and ready for intended use. of property plant and equipment is derecognised An asset is treated as current when it is: upon disposal or when no future economic - Expected to be realised or intended to be sold Based on the nature of products and the time Capital Work in Progress: Project under which benefits are expected from its use or disposal. or consumed in normal operating cycle between acquisition of assets for processing and assets are not yet ready for their intended use Any gain or loss arising on derecognition of the

266 Annual Report 2020-21 267 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW asset (calculated as the difference between the life or the expected pattern of consumption 2.7 Goodwill Impairment loss is recognised when the net disposal proceeds and the carrying amount of future economic benefits embodied in the Goodwill arising on an acquisition of a business carrying amount of an asset or CGU exceeds its of the asset) is included in the consolidated asset are considered to modify the amortisation is carried at cost as established at the date of recoverable amount. In such cases, the asset is statement of profit and loss when the asset period or method, as appropriate, and are acquisition of the business less accumulated considered impaired and is written down to its is derecognised. treated as changes in accounting estimates. impairment losses, if any. recoverable amount. The amortisation expense on intangible assets The estimated useful lives and methods of with finite lives is recognised in the statement For the purposes of impairment testing, In assessing value in use, the estimated future depreciation of property, plant and equipment of profit and loss unless such expenditure forms goodwill is allocated to each of the Group’s cash flows are discounted to their present value are reviewed at each financial year end and part of carrying value of another asset. cash-generating units that is expected to benefit using a pre-tax discount rate that reflects current adjusted prospectively, if appropriate. from the synergies of the combination. market assessments of the time value of money An intangible asset is derecognised on disposal and the risks specific to the asset. In determining 2.5 Intangible Assets or when no future economic benefit are expected A cash-generating unit to which goodwill has fair value less costs of disposal, recent market Intangible assets acquired separately are from use or disposal. Gains or losses arising been allocated is tested for impairment annually, transactions are taken into account. If no such measured on initial recognition at cost. from derecognition of an intangible asset are or more frequently when there is an indication transactions can be identified, an appropriate measured as the difference between the net that the unit may be impaired. If the recoverable valuation model is used. These calculations are

Following initial recognition, intangible assets are disposal proceeds and the carrying amount of amount of the cash-generating unit is less than corroborated by valuation multiples or other STATUTORY REPORTS carried at cost less any accumulated amortisation the asset and are recognised in the statement of its carrying amount, the impairment loss is available fair value indicators. and accumulated impairment losses, if any. profit or loss when the asset is derecognised. allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to The Group bases its impairment calculation 2.6 Research and development expenditure Internally generated intangibles, excluding the other assets of the unit pro rata based on on detailed budgets and forecast, which are Expenditure on research and development of capitalised development costs, are not the carrying amount of each asset in the unit. prepared separately for each of the group’s CGU’s products is included under the natural heads of capitalised and the related expenditure is Any impairment loss for goodwill is recognised to which the individual assets are allocated. expenditure in the year in which it is incurred reflected in profit or loss in the period in which directly in profit or loss. An impairment loss These budgets and forecast calculations generally except which relate to development activities the expenditure is incurred. recognised for goodwill is not reversed in cover a period of 5 years. For longer periods, a whereby research findings are applied to a subsequent periods. long-term growth rate is calculated and applied plan or design for the production of new or Intangible assets with finite lives are amortised to project future cash flows after 5th year. substantially improved products and processes. over the useful economic life and assessed for On disposal of the relevant cash-generating unit, To estimate cash flow projections beyond periods impairment whenever there is an indication that Such development costs are capitalised if they the attributable amount of goodwill is included in covered by the most recent budgets/forecasts, the intangible asset may be impaired. The useful can be reliably measured, the product or process the determination of the profit or loss on disposal. group extrapolates cash flow projections in the lives considered are as follows: is technically and commercially feasible and the budget using a steady or declining growth rate 2.8 Impairment of tangible and intangible Trademarks / Brand 10-30 years Group has sufficient resources to complete the for subsequent years, unless an increasing rate assets other than goodwill can be justified. FINANCIAL STATEMENTS Technical Knowhow 30-40 years development and to use or sell the asset. The Group assesses, at each reporting date, Software 3 years Following initial recognition of the development whether there is an indication that an asset may be For assets excluding goodwill, an assessment Other intangibles 2.5-8 years expenditure as an asset, the asset is carried impaired. If any indication exists, or when annual is made at each reporting date to determine at cost less any accumulated amortisation impairment testing for an asset is required, the whether there is an indication that previously The group has elected to continue with the and accumulated impairment losses, if group estimates the asset’s recoverable amount. recognised impairment losses no longer exist carrying value of all of its intangibles assets any. Amortisation of the asset begins when An asset’s recoverable amount is the higher of an or have decreased. If such indication exists, the recognised as on April 1, 2015 measured as per development is complete and the asset is asset’s or cash-generating unit’s (CGU) fair value group estimates the asset’s or CGU’s recoverable the previous GAAP and use that carrying value as available for use. It is amortised over the period less costs of disposal and its value in use. amount. A previously recognised impairment its deemed cost as of transition date. of expected future benefit. Amortisation expense loss is reversed only if there has been a is recognised in the statement of profit and Recoverable amount is determined for an change in the assumptions used to determine The amortisation period and the amortisation loss unless such expenditure forms part of individual asset, unless the asset does the asset’s recoverable amount since the last method for an intangible asset with a finite useful carrying value of another asset. During the not generate cash inflows that are largely impairment loss was recognised. The reversal life are reviewed at least at the end of each period of development, the asset is tested for independent of those from other assets or is limited so that the carrying amount of the reporting period. Changes in the expected useful impairment annually. groups of assets. asset does not exceed its recoverable amount,

268 Annual Report 2020-21 269 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW nor exceed the carrying amount that would have At inception or on reassessment of a contract that under a residual value guarantee, or if the Group specific borrowing pending expenditure on been determined, net of depreciation, had no contains a lease component, the Group allocates the changes its assessment of whether it will exercise qualifying asset. impairment loss been recognised for the asset consideration in the contract to each lease component a purchase, extension or termination option. in prior years. on the basis of their relative stand-alone prices. In case funds are borrowed generally and such When the lease liability is remeasured in this funds are used for the purpose of acquisition, 2.9 Leasing Group as lessee way, a corresponding adjustment is made to the construction or production of a qualifying asset, At inception of a contract, the Group assesses The Group accounts for assets taken under lease carrying amount of the right-of-use asset, or is the borrowing costs capitalised are calculated whether a contract is, or contains, a lease. arrangement in the following manner: recorded in profit or loss if the carrying amount of by applying the weighted average capitalisation the right-of-use asset has been reduced to zero. rate on general borrowings outstanding during A contract is, or contains, a lease if the contract The Group recognises a right-of-use asset and a the period, to the expenditures incurred on the conveys the right to control the use of an lease liability at the lease commencement date. Short-term leases and leases of low-value qualifying asset. identified asset for a period of time in exchange The right of use asset is initially measured at assets for consideration. To assess whether a contract cost, which comprises the initial amount of the The Group has elected not to recognise right-of If any specific borrowing remains outstanding conveys the right to control the use of an lease liability adjusted for any lease payments use assets and lease liabilities for short term after the related asset is ready for its intended identified asset, the Group assess whether: made at or before the commencement date, plus leases that have a lease term of 12 months or use, that borrowing is considered part of the

any initial direct costs incurred and an estimate less and leases of low value assets. The Group funds that are borrowed generally for calculating STATUTORY REPORTS – the contract involves the use of an identified of costs to dismantle and remove the underlying recognises the lease payments associated with the capitalisation rate. asset – this may be specified explicitly or asset or to restore the underlying asset or these leases as an expense on a straight- line implicitly and should be physically distinct or the site on which it is located, less any lease basis over the lease term. 2.11 Foreign Currencies represent substantially all of the capacity of a incentive received. Transaction and balances physically distinct asset. If the supplier has a 2.10 Borrowing costs Transactions in foreign currencies are recorded substantive substitution right, then the asset is The right of use asset is subsequently Borrowing costs consist of interest and other on initial recognition at the exchange rate not identified; depreciated using the straight line method from costs that an entity incurs in connection with the prevailing on the date of the transaction. the commencement date to the end of the lease borrowing of funds. Borrowing cost also includes – the Group has the right to obtain substantially term. The estimated useful lives of right-of-use exchange differences to the extent regarded as (i) Monetary assets and liabilities denominated all of the economic benefits from use of the assets are determined on the basis of remaining an adjustment to the borrowing costs. in foreign currency remaining unsettled at asset through the period of use; and lease term. In addition, the right-of-use asset is the end of the year, are translated at the periodically reduced by impairment losses, if any, Borrowing costs directly attributable to the closing rates prevailing on the Balance – the Group has the right to direct the use of the and adjusted for certain remeasurements of the acquisition, construction or production of an Sheet date. Non-monetary items which asset. The Group has this right when it has the lease liability. asset that necessarily takes a substantial period are carried in terms of historical cost of time to get ready for its intended use or denominated in foreign currency are decision- making rights that are most relevant The lease liability is initially measured at the sale are capitalised as part of the cost of the reported using the exchange rate at the FINANCIAL STATEMENTS to changing how and for what purpose the present value of the lease payments that are asset. Borrowing costs incurred for the period date of transaction. Any gains or losses asset is used. In rare cases, where the decision not paid at the commencement date, discounted from commencement of activities relating to arising due to differences in exchange rates about how and for what purpose the asset is using the Group’s incremental borrowing rate. construction/development of the qualifying asset at the time of translation or settlement are used is predetermined, the Group has the right upto the date of capitalisation of such asset accounted for in the Statement of Profit to direct the use of the asset if either: Lease payments included in the measurement of are added to the cost of the asset. All other and Loss either under the head foreign • the Group has the right to operate the asset; or the lease liability comprise the fixed payments, borrowing costs are expensed in the period in exchange fluctuation or interest cost, as including in-substance fixed payments. which they occur. the case may be, except those relating to • the Group designed the asset in a way that exchange differences arising from cash flow predetermines how and for what purpose The lease liability is measured at amortised In case of a specific borrowing taken for hedges to the extent that the hedges are it will be used cost using the effective interest method. It is the purpose of acquisition, construction or effective and those covered below. remeasured when there is a change in future production of a qualifying asset, the borrowing An entity shall reassess whether a contract is, or lease payments arising from a change in an costs capitalised shall be the actual borrowing (ii) Exchange differences pertaining to long contains, a lease only if the terms and conditions index or rate, if there is a change in Group’s costs incurred during the period less any interest term foreign currency loans obtained or of the contract are changed. estimate of the amount expected to be payable income earned on temporary investment of re-financed on or before March 31, 2016

270 Annual Report 2020-21 271 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Exchange differences on long-term as a result of past events and it is more likely inflow of economic benefits will arise, the asset be measured reliably. Interest income is foreign currency monetary items relating than not that an outflow of resources would be and related income are recognised in the period accrued on time basis, by reference to the to acquisition of depreciable assets are required to settle the obligation and a reliable in which the change occurs. principal outstanding. adjusted to the carrying cost of the assets estimate can be made. and depreciated over the balance useful 2.14 Revenue recognition Dividend income from investments is life of the assets. When the group expects some or all of a a) Sale of goods recognised when the shareholder’s right provision to be reimbursed, for example, under Revenue from sale of products is to receive payment has been established (iii) Exchange differences pertaining to long an insurance contract, the reimbursement is recognised upon transfer of control of (provided that it is probable that the term foreign currency loans obtained recognised as a separate asset, but only when products to customers at the time of economic benefits will flow to the group or re-financed on or after April 1, 2016 the reimbursement is virtually certain. shipment to or receipt of goods by the and the amount of income can be The exchange differences pertaining to customers. Service income is recognised measured reliably). long term foreign currency loans obtained The expense relating to a provision is presented as and when the underlying services are or re-financed on or after April 1, 2016 is in the statement of profit and loss net of performed. The Group exercises judgement c) Export incentive treated in accordance with Ind AS 21/ Ind any reimbursement. in determining whether the performance The benefit accrued under the Duty AS 109. Refer point (i) above. obligation is satisfied at a point in time or

Drawback scheme and other schemes STATUTORY REPORTS If the effect of the time value of money is material, over a period of time. 2.12 Inventories provisions are discounted using a current pre-tax as per the Export and Import Policy in Inventories are valued at cost or net realisable rate that reflects, when appropriate, the risks Revenues are measured based on the respect of exports made under the said value, whichever is lower. The basis of specific to the liability. When discounting is used, transaction price, which is the consideration, Schemes is included under the head determining the cost for various categories of the increase in the provision due to the passage net of tax collected from customers and “Revenue from Operations” under ‘Export inventory are as follows: of time is recognised as a finance cost. remitted to government authorities such and other incentives’. Also refer policy on as sales tax/value added tax and goods “Government Grants” (a) Raw materials, packing material and stores Contingent liabilities and services tax and applicable discounts and spares including fuel - Cost includes A contingent liability is a possible obligation that and allowances. 2.15 Taxation cost of purchase and other costs incurred arises from past events whose existence will be Income tax expense represents the sum of the in bringing the inventories to their present confirmed by the occurrence or non-occurrence of Any fees including upfront fees received current tax and deferred tax. location and condition. Cost is determined one or more uncertain future events beyond the in relation to contract manufacturing on weighted average basis. The aforesaid control of the group or a present obligation that arrangements is recognised on straight a) Current tax items are valued below cost if the finished is not recognised because it is not probable that line basis over the period over which the Current income tax assets and liabilities products in which they are to be incorporated an outflow of resources will be required to settle Group satisfies the underlying performance are expected to be sold at a loss. are measured at the amount expected to the obligation. A contingent liability also arises obligations. Contract assets are recognised be recovered from or paid to the taxation FINANCIAL STATEMENTS (b) Traded goods, Stock in progress and in extremely rare cases where there is a liability when there is excess of revenue earned authorities. The tax rates and tax laws used that cannot be recognised because it cannot be over billings on contracts. Contract assets finished goods- Direct cost plus appropriate to compute the amount are those that are share of overheads. measured reliably. The group does not recognize are classified as unbilled revenue (only enacted or substantively enacted, at the a contingent liability but discloses its existence act of invoicing is pending) when there is (c) By products - At estimated realisable value reporting date. in the financial statements unless the possibility unconditional right to receive cash as per of an outflow of resources embodying economic contractual terms. Advance from customers Net realisable value is the estimated selling Current income tax relating to items benefits is remote. Contingent liabilities and (“contract liability”) is recognised when the price in the ordinary course of business, less recognised outside profit or loss is estimated costs of completion and the estimated commitments are reviewed by the management group has received consideration from the recognised outside profit or loss account costs necessary to make the sale. at each balance sheet date. customer before it delivers the goods. i.e. in Other comprehensive income or 2.13 Provisions, contingent liabilities and Contingent assets b) Interest and dividend income equity. Management periodically evaluates contingent assets Contingent assets are neither recognised Interest income is recognised when it positions taken in the tax returns with Provisions nor disclosed in the financial statements. is probable that the economic benefits respect to situations in which applicable tax The group recognised a provision when there However, contingent assets are assessed will flow to the group using the effective regulations are subject to interpretation and is a present obligation (legal or constructive) continually and if it is virtually certain that an interest rate and the amount of income can establishes provisions where appropriate.

272 Annual Report 2020-21 273 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW b) Deferred tax (iii) In respect of taxable temporary A government grant that becomes receivable as Provision for gratuity, provident fund for certain Deferred tax is provided on temporary differences associated with compensation for expenses or losses incurred category of employees administered through differences between the tax bases of assets investments in subsidiaries, associates in a previous period. Such a grant is recognised a recognised provident fund trust and legal and liabilities and their carrying amounts at and interests in joint ventures, in profit or loss of the period in which it severance plans are determined on an actuarial the reporting date. when the timing of the reversal of becomes receivable. basis at the end of the year and charged to consolidated statement of profit and loss, other Deferred tax assets and liabilities are the temporary differences can be than remeasurements. The cost of providing measured using substantively enacted tax controlled and it is probable that the Government grants are recognised in profit these benefits is determined using the projected rates expected to apply to taxable income in temporary differences will not reverse or loss on a systematic basis over the periods unit credit method. the years in which the temporary differences in the foreseeable future. in which the group recognizes as expenses are expected to be received or settled. the related costs for which the grants are Remeasurements, comprising of actuarial gains Minimum Alternate Tax (MAT) paid in intended to compensate. Deferred tax assets and liabilities are offset accordance with the tax laws, which gives and losses and the effect of the asset ceiling, if such items relate to taxes on income (excluding amounts included in net interest on future economic benefits in the form of Government grants related to assets are levied by the same governing tax laws and the net defined benefit liability and return on adjustment to future income tax liability, is presented in the consolidated balance sheet as the group has a legally enforceable right plan assets), are recognised immediately in considered as an asset if there is convincing

deferred income and is recognised in profit or STATUTORY REPORTS for such set off. the balance sheet with a corresponding debit evidence that the group will pay normal loss on a systematic basis over the expected or credit to retained earnings through other The carrying amount of deferred tax assets is income tax. Accordingly, MAT asset is useful life of the related assets. comprehensive income in the period in which reviewed at each reporting date and reduced recognised in the consolidated Balance they occur. Re-measurements are not reclassified to the extent that it is no longer probable that Sheet when it is probable that future 2.17 Employee benefits to consolidated statement of profit and loss in sufficient taxable profit will be available to economic benefit associated with it will Short term employee benefits subsequent periods. allow all or part of the deferred tax asset to be flow to the group. Wages and salaries including non monetary utilised. Unrecognised deferred tax assets are The group considers whether it is probable benefits that are expected to be settled within Other long term employee benefits re-assessed at each reporting date and are the operating cycle after the end of the period The group also has other long term benefits plan recognised to the extent that it has become that a taxation authority will accept an in which the related services are rendered such as compensated absences and retention probable that future taxable profits will allow uncertain tax treatment. If the group are measured at the undiscounted amount pay. Provision for compensated absences and the deferred tax asset to be recovered. concludes that it is probable that the expected to be paid long term retention pay are determined on an Deferred tax assets are recognised for all taxation authority will accept an uncertain actuarial basis at the end of the year and charged deductible temporary differences and unused tax treatment, the group determines the Defined contribution plans to consolidated Statement of Profit and Loss. tax losses only if it is probable that future taxable profit (tax loss), tax bases, unused Provident fund administered through Regional The cost of providing these benefits is determined taxable amounts will be available to utilise tax losses, unused tax credits or tax rates using the projected unit credit method. consistently with the tax treatment used or Provident Fund Commissioner, Superannuation

those temporary differences and losses. FINANCIAL STATEMENTS planned to be used in its income tax filings. Fund, National pension scheme and Employee’s Share based payments Deferred tax relating to items recognised State Insurance Corporation are defined However, if the group concludes that it is Equity settled share based payments to outside profit or loss is recognised in other contribution schemes. Contributions to such not probable that the taxation authority employees under SRF Long Term Share Based comprehensive income or in equity. schemes are charged to the statement of will accept an uncertain tax treatment, the Incentive Plan (SRF LTIP) are measured at the profit and loss in the year when employees Deferred tax assets/liabilities are group reflects the effect of uncertainty in fair value (which is the market price less exercise not recognised for below mentioned determining the related taxable profit (tax have rendered services entitling them to the price) of the equity instruments on the grant date. temporary differences: loss), tax bases, unused tax losses, unused contributions. The group has no obligation, other This compensation cost relating to employee (i) At the time of initial tax credits or tax rates. than the contribution payable to such schemes. stock purchase scheme is amortised over the recognition of goodwill; remaining tenure over which the employees 2.16 Government grants Defined benefit plans (ii) Initial recognition of assets or liabilities renders their service on a straight line basis. The group has defined benefit plan such as (other than in a business combination) Government grants are recognised where there at the time of the transaction, affects is reasonable assurance that the grant will be gratuity, provident fund for certain category of 2.18 Earnings per share neither the accounting profit nor received and all attached conditions will be employees administered through a recognised Basic earnings per share is calculated by dividing taxable profit or loss; complied with. provident fund trust and legal severance plans. the net profit or loss for the year attributable

274 Annual Report 2020-21 275 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW to equity shareholders by the weighted a) The asset is held within a business The group makes such election on asset to the extent of the group’s average number of equity shares outstanding model whose objective is to hold an instrument by instrument basis. continuing involvement. In that case, during the year. assets for collecting contractual The classification is made on initial the group also recognizes an associated cash flows, and recognition and is irrevocable. liability. The transferred asset and the For the purpose of calculating diluted earnings associated liability are measured on b) Contractual terms of the asset give If the group decides to classify an equity per share, the net profit or loss for the period rise on specified dates to cash flows instrument as at FVTOCI, then all fair value a basis that reflects the rights and attributable to equity shareholders and the that are solely payments of principal changes on the instrument, excluding obligations that the group has retained. weighted average number of shares outstanding and interest (SPPI) on the principal dividends, are recognised in other Any gain or loss on derecognition is during the period is adjusted for the effects of all amount outstanding. comprehensive income. This cumulative recognised in profit or loss. dilutive potential equity shares. gain or loss is not reclassified to Continuing involvement that takes After initial measurement, such statement of profit and loss on disposal of the form of a guarantee over the 2.19 Cash and cash equivalents financial assets are subsequently such instruments. Cash and cash equivalent in the balance sheet measured at amortised cost using transferred asset is measured at the comprise cash at banks and on hand and the effective interest rate (EIR) Derecognition lower of the original carrying amount A financial asset (or, where applicable, short-term deposits with an original maturity of method. Amortised cost is calculated of the asset and the maximum amount STATUTORY REPORTS three months or less, which are subject to an by taking into account any discount a part of a financial asset) is primarily of consideration that the group could insignificant risk of changes in value. or premium on acquisition and fees or derecognised (i.e. removed from the be required to repay. costs that are an integral part of the balance sheet) when: When the group has retained 2.20 Financial instruments EIR. The EIR amortisation is included a) The rights to receive cash flows from substantially all the risks and rewards A financial instrument is any contract that in other income in the consolidated the asset have expired, or of ownership of the transferred asset, gives rise to a financial asset of one entity statement of profit and loss. b) The group has transferred its rights the group continue to recognise the and a financial liability or equity instrument of The losses arising from impairment to receive cash flows from the asset are recognised in the statement of transferred asset in its entirety and another entity. or has assumed an obligation to pay profit and loss. This category generally recognise a financial liability for the the received cash flows in full without applies to trade and other receivables. consideration received. A) Financial assets material delay to a third party under Initial recognition and measurement Financial assets not classified as a ‘pass-through’ arrangement; and Impairment of financial assets All financial assets are recognised initially either (i) the group has transferred measured at amortised cost or The group recognizes loss allowance using at fair value plus transaction costs that are substantially all the risks and rewards FVOCI as are measured at FVTPL. the expected credit loss (ECL) model for the directly attributable to the acquisition of the of the asset, or (ii) the group has Financial assets included within the financial assets which are not fair valued financial asset. neither transferred nor retained FVTPL category are measured at fair through profit or loss. Loss allowance for FINANCIAL STATEMENTS substantially all the risks and rewards value with all changes recognised in trade receivables with no significant financing Subsequent measurement of the asset, but has transferred the statement of profit and loss. component is measured at an amount equal For purposes of subsequent measurement, control of the asset. to lifetime ECL. For all financial assets with financial assets of the group are classified in Equity Investments When the group has transferred its contractual cash flows other than trade three categories: All equity investments in the scope of rights to receive cash flows from receivable, ECLs are measured at an amount Ind AS 109 are measured at fair value. an asset or has entered into a a) At amortised cost equal to the 12-month ECL, unless there Equity instruments which are held for pass-through arrangement, it evaluates has been a significant increase in credit risk b) At fair value through profit and loss trading are measured at fair value through if and to what extent it has retained from initial recognition in which case those (FVTPL) profit and loss. the risks and rewards of ownership. are measured at lifetime ECL. The amount c) At fair value through other comprehensive When it has neither transferred nor For all other equity instruments, the group retained substantially all of the risks and of ECL (or reversal) that is required to adjust income (FVTOCI) may make an irrevocable election to present rewards of the asset, nor transferred the loss allowance at the reporting date is Financial asset is measured at amortised subsequent changes in the fair value in control of the asset, the group recognised as an impairment gain or loss in cost if both the following conditions are met: other comprehensive income. continues to recognise the transferred the Statement of Profit and Loss.

276 Annual Report 2020-21 277 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW B Financial liabilities and Equity instruments Equity Instruments value. Derivatives are carried as financial assets with a corresponding gain or loss recognised in Initial recognition and measurement Equity Instruments are any contract that when the fair value is positive and as financial consolidated profit and loss. All financial liabilities are recognised initially evidences a residual interest in the assets of liabilities when the fair value is negative. at fair value, net of directly attributable an entity after deducting all of its liabilities. Cash flow hedges transaction costs, if any. Debt or equity instruments issued by the group Any gains or losses arising from changes in the The effective portion of the gain or loss on are classified as either financial liability or as fair value of derivatives are taken directly to the hedging instrument is recognised in The group’s financial liabilities include equity in accordance with the substance of profit or loss, except for the effective portion of other comprehensive income in the cash flow borrowings and trade and other payables hedge reserve, while any ineffective portion contractual arrangements and the definitions of cash flow hedges, which is recognised in OCI including derivative financial instruments. is recognised immediately in the consolidated a financial liabilities and an equity instruments. and later reclassified to profit and loss when the statement of profit and loss. Subsequent measurement hedge item affects profit and loss. Borrowings 2.21 Derivative and Non Derivative financial The Group uses forward currency contracts as Borrowings are subsequently measured at instruments and hedge accounting For the purpose of hedge accounting, hedges hedges of its exposure to foreign currency risk amortised cost. Any differences between Initial recognition and subsequent are classified as: in forecast transactions and firm commitments. the proceeds(net of transaction cost) measurement a) Fair value hedges when hedging the The ineffective portion relating to foreign and the redemption/repayment amount The group uses derivative financial instruments currency contracts is recognised in the STATUTORY REPORTS is recognised in profit and loss over the exposure to changes in the fair value of a (such as forward currency contracts, interest consolidated statement of profit and loss. period of the borrowings using the Effective recognised asset or liability. rate swaps and full currency swaps) or non In some cases, the group separates the premium interest rate method. derivative financial assets/liabilities to hedge b) Cash flow hedges when hedging the element and the spot element of a forward Trade and other payables its foreign currency risks and interest rate risks. exposure to variability in cash flows that contract and designates only the change in fair Trade and other payables represent the The group has opted for “Hedge Accounting” for is either attributable to a particular risk value of the spot element of forward exchange liabilities for goods and services provided to all its derivative as well as non-derivative financial associated with a recognised asset or liability contracts as the hedging instrument in cash the group prior to the end of the financial instrument used for hedging. Accordingly, at or a highly probable forecast transaction or flow hedging relationships. In such cases, the year which are unpaid. the inception of the hedge the group formally the foreign currency risk in an unrecognised changes in the fair value of the premium element designates a hedge relationship between the firm commitment. Offsetting of financial instruments of the forward contract or the foreign currency ‘hedging instrument’ and ‘hedged item’ which Financial assets and financial liabilities are basis spread of the financial instrument is determines the initial recognition of the financial Hedges that meet the strict criteria for offset and the net amount is reported in accumulated in a separate component of equity instrument as Fair Value Hedge or Cashflow hedge accounting are accounted for, as the consolidated balance sheet if there is a as ‘cost of hedging’. The changes in the fair value hedge. The documentation includes the group’s described below: currently enforceable legal right to offset the of such premium element or foreign currency risk management objective and strategy for recognised amounts and there is an intention basis spread are reclassified to profit or loss as undertaking hedge, the hedging/ economic Fair value hedges to settle on a net basis, to realise the assets a reclassification adjustment on a straight-line

relationship, the hedged item or transaction, the The change in the fair value of a hedging FINANCIAL STATEMENTS and settle the liabilities simultaneously. basis over the period of the forward contract or instrument is recognised in the consolidated nature of the risk being hedged and how the the financial instrument. Derecognition entity will assess the effectiveness of changes in statement of profit and loss. The change in the A financial liability is derecognised when the the hedging instrument’s fair value in offsetting fair value of the hedged item attributable to the The Group also designates certain non derivative obligation under the liability is discharged the exposure to changes in the hedged item’s fair risk hedged is recorded as part of the carrying financial liabilities, such as foreign currency or cancelled or expires. When an existing value or cash flows attributable to the hedged risk. value of the hedged item and is also recognised borrowings from banks, as hedging instruments financial liability is replaced by another from Such hedges are expected to be highly effective in the statement of profit and loss. for the hedge of foreign currency risk associated the same lender on substantially different in achieving offsetting changes in fair value or with highly probable transactions and, terms, or the terms of an existing liability are cash flows and are assessed on an ongoing basis If the hedged item is derecognised, the accordingly, applies cash flow hedge accounting substantially modified, such an exchange or to determine that they actually have been highly unamortised fair value is recognised immediately for such relationships. modification is treated as the derecognition effective throughout the financial reporting periods in profit or loss. When an unrecognised firm of the original liability and the recognition for which they were designated. These financial commitment is designated as a hedged item, Amounts recognised as other comprehensive of a new liability. The difference in the instruments are initially recognised at fair value on the subsequent cumulative change in the fair income are transferred to profit or loss when the respective carrying amounts is recognised in the date on which a derivative contract is entered value of the firm commitment attributable to the hedged transaction affects profit or loss, such as the consolidated statement of profit or loss. into and are subsequently re-measured at fair hedged risk is recognised as an asset or liability when the hedged financial income or financial

278 Annual Report 2020-21 279 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW expense is recognised or when a forecast by selling it to another market participant that translated at exchange rates prevailing at the sale transaction rather than through continuing transaction occurs. would use the asset in its highest and best use. dates of the transactions. For practical reasons, use. The appropriate level of management The group uses valuation techniques that are the group uses an average rate to translate must be committed to a plan to sell, an active If the hedging instrument expires or is sold, appropriate in the circumstances and for which income and expense items, if the average rate programme to locate a buyer and complete the terminated or exercised without replacement sufficient data are available to measure fair value, approximates the exchange rates at the dates of plan has been initiated, the sale is considered or rollover (as part of the hedging strategy), maximising the use of relevant observable inputs the transactions. The exchange differences arising highly probable and is expected within one year or if its designation as a hedge is revoked, or and minimising the use of unobservable inputs. on translation for consolidation are recognised from the date of classification. when the hedge no longer meets the criteria for All assets and liabilities for which fair value is in OCI. On disposal of a foreign operation, the hedge accounting, the hedge accounting will measured or disclosed in the consolidated component of OCI relating to that particular Non-current assets (or disposal groups) held for be discontinued prospectively. Any cumulative financial statements are categorised within the foreign operation is recognised in profit or loss. sale are measured at the lower of their carrying gain or loss previously recognised in other fair value hierarchy, described as follows, based amount and fair value less costs to sell. Assets and comprehensive income remains separately in on the lowest level input that is significant to the 2.24 Segment reporting liabilities classified as held for sale are presented other equity if the forecast transaction or the fair value measurement as a whole: Based on “Management Approach” as defined separately from other assets and liabilities in the foreign currency firm commitment is expected in Ind AS 108 -Operating Segments, the Chief balance sheet. Property, plant and equipment a) Level 1 – Quoted (unadjusted) market to occur else the amount shall be immediately Operating Decision Maker evaluates the group’s and intangible assets once classified as held for prices in active markets for identical assets reclassified from the cash flow hedge reserve to performance and allocates the resources based sale are not depreciated or amortised. STATUTORY REPORTS or liabilities. profit or loss as a reclassification adjustment. on an analysis of various performance indicators b) Level 2– inputs other than quoted prices by business segments. Inter segment sales and A discontinued operation is a component of the 2.22 Fair value measurement included in Level 1 that are observable transfers are reflected at market prices. Company that either has been disposed of, or is The group measures some of its financial for the asset or liability, either directly classified as held for sale, and: instruments at fair value at each (i.e. as prices) or indirectly (i.e. Unallocable items includes general corporate a) Represents a separate major line of business balance sheet date. derived from prices). income and expense items which are not allocated to any business segment. or geographical area of operations, Fair value is the price that would be received to c) Level 3- inputs for the asset or liability that b) Is part of a single co-ordinated plan to sell an asset or paid to transfer a liability in an are not based on observable market data Segment Policies: dispose of a separate major line of business orderly transaction between market participants (unobservable inputs). The group prepares its segment information in or geographical area of operations, or at the measurement date. The fair value conformity with the accounting policies adopted measurement is based on the presumption that For assets and liabilities that are recognised for preparing and presenting the consolidated c) Is a subsidiary acquired exclusively with a the transaction to sell the asset or transfer the in the consolidated financial statements on a financial statements of the group as a whole. view to resale. liability takes place either: recurring basis, the group determines whether Common allocable costs are allocated to each Discontinued operations are excluded from transfers have occurred between levels in the segment on an appropriate basis. a) In the principal market for the asset hierarchy by re-assessing categorisation (based the results of continuing operations and are or liability, or FINANCIAL STATEMENTS on the lowest level input that is significant to 2.25 Dividend presented separately in the statement of b) In the absence of a principal market, in the fair value measurement as a whole) at the The group recognises a liability to make profit and loss. the most advantageous market for the end of each reporting period. cash distributions to equity holders when the asset or liability distribution is authorised and the distribution 2.27 Recent Pronouncements: For the purpose of fair value disclosures, the group is no longer at the discretion of the group. Ministry of Corporate Affairs (“MCA”) notifies The principal or the most advantageous market has determined classes of assets and liabilities As per the corporate laws in India, a new standards or amendments to the must be accessible by the group. The fair value on the basis of the nature, characteristics and distribution is authorised when it is approved existing standards. of an asset or a liability is measured using the risks of the asset or liability and the level of the by the shareholders. A corresponding amount is On March 24, 2021, the Ministry of Corporate assumptions that market participants would fair value hierarchy as explained above. recognised directly in equity. use when pricing the asset or liability, assuming Affairs (“MCA”) through a notification, amended that market participants act in their economic 2.23 Foreign Currency translation reserve 2.26 Non-current assets held for sale and Schedule III of the Companies Act, 2013. best interest. A fair value measurement of a On consolidation, the assets and liabilities of discontinued operations The amendments revise Division I, II and III of non-financial asset takes into account a market foreign operations are translated into Rupees at Non-current assets (or disposal groups) are Schedule III and are applicable from April 1, 2021. participant’s ability to generate economic benefits the rate of exchange prevailing at the reporting classified as held for sale if their carrying Key amendments relating to Division II which by using the asset in its highest and best use or date and their statements of profit or loss are amounts will be recovered principally through a relate to companies whose financial statements

280 Annual Report 2020-21 281 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW are required to comply with Companies (Indian 3. Significant accounting judgements, 4. Property, Plant and Equipment Accounting Standards) Rules 2015 are: estimates and assumptions Particulars Freehold Roads Buildings Plant and Furniture Office Vehicle Total The preparation of consolidated financial land equipment and fixtures equipment Balance Sheet: statements requires management to make Cost • Certain additional disclosures in the judgments, estimates and assumptions that Balance at March 31,2019 357.91 63.99 844.67 5,271.30 27.27 58.21 39.94 6,663.29 Additions/adjustments 26.16 11.68 44.50 910.77 2.70 8.90 9.35 1,014.06 statement of changes in equity such as affect the application of accounting policies Disposals/adjustments (1.32) (0.99) (48.37) (93.83) (0.83) (2.62) (7.62) (155.58) and the reported amounts of assets, liabilities, changes in equity share capital due to prior Effect of foreign currency 0.19 (0.46) (4.52) (6.14) (0.13) (0.19) 0.03 (11.22) period errors and restated balances at the income and expenses. Actual results may differ exchange differences beginning of the current reporting period. from these estimates. Balance at March 31,2020 382.94 74.22 836.28 6,082.10 29.01 64.30 41.70 7,510.55 Additions/adjustments 0.99 23.36 367.86 1,458.06 4.35 10.58 6.59 1,871.79 Judgements, estimates and underlying assumptions • Specified format for disclosure of Disposals/adjustments - (0.45) (6.29) (24.63) (0.32) (2.44) (3.99) (38.12) are reviewed on an ongoing basis. Revisions to shareholding of promoters. Effect of foreign currency 3.37 1.13 15.79 51.63 0.34 0.70 0.01 72.97 accounting estimates are recognised in the period exchange differences • Specified format for ageing schedule of in which the estimates are revised and in any Balance at March 31,2021 387.30 98.26 1,213.64 7,567.16 33.38 73.14 44.31 9,417.19 trade receivables, trade payables, capital future periods affected. In particular, information about significant areas of estimation, uncertainty Accumulated depreciation

work-in-progress and intangible asset STATUTORY REPORTS Balance at March 31,2019 - 5.86 92.28 1,013.23 9.04 28.64 17.79 1,166.84 under development. and critical judgments in applying accounting Depreciation expenses policies that have the most significant effect on the - Continuing operations - 2.26 23.23 320.83 2.27 8.09 7.71 364.39 • If a company has not used funds for the amounts recognised in the consolidated financial - Discontinued operations - - 1.70 1.90 0.01 0.62 0.04 4.27 specific purpose for which it was borrowed statements is included in the following notes. Disposals/adjustments - (0.36) (14.49) (24.46) (0.19) (2.07) (4.75) (46.32) from banks and financial institutions, • Classification and lease term determination Effect of foreign currency - (0.02) (0.20) (1.23) (0.00) (0.13) 0.02 (1.56) then disclosure of details of where it exchange differences of leasing arrangement – Note 2.9 has been used. Balance at March 31,2020 - 7.74 102.52 1,310.27 11.13 35.15 20.81 1,487.62 • Derecognition of trade receivables and Depreciation expenses - • Specific disclosure under ‘additional hedge effectiveness- Note 2.20 - Continuing operations - 2.14 29.68 377.63 2.42 7.55 7.36 426.78 regulatory requirement’ such as compliance - Discontinued operations ------• Fair value measurement of derivative Disposals/adjustments - - (0.03) (2.70) (0.14) (1.25) (2.76) (6.88) with approved schemes of arrangements, instruments – Note 2.22 Effect of foreign currency - 0.11 1.78 10.05 0.13 0.21 0.18 12.46 compliance with number of layers of exchange differences companies, title deeds of immovable • Assessment of useful life of property, Balance at March 31,2021 - 9.99 133.95 1,695.25 13.54 41.66 25.59 1,919.98 property not held in name of company, plant and equipment and intangible loans and advances to promoters, asset – Note 2.4 Particulars Freehold Roads Buildings Plant and Furniture Office Vehicle Total directors, key managerial personnel (KMP) land equipment and fixtures equipment • Recognition and estimation of tax expense Net block FINANCIAL STATEMENTS and related parties, details of benami including determination of applicable Balance at March 31,2020 382.94 66.48 733.75 4,771.84 17.88 29.15 20.89 6,022.93 property held etc. tax rate for measuring deferred tax Balance at March 31, 2021 387.30 88.27 1,079.69 5,871.91 19.84 31.48 18.72 7,497.21 balances– Note 2.15 Notes: Statement of profit and loss: (i) Borrowing cost capitalised during the year ` 13.07 crores (Previous year: ` 24.30 Crores) with a capitalisation rate ranging from • Additional disclosures relating to Corporate • Estimation of assets and obligations relating 0.5% to 8.09% (Previous year: 0.55% to 9.45%). to employee benefits (including actuarial (ii) Out of the Industrial Freehold land measuring 32.41 acres at the group’s plant in Gummidipoondi, the group does not have clear Social Responsibility (CSR), undisclosed title to 2.43 acres. assumptions) – Note 2.17 income and crypto or virtual currency (iii) Capital expenditure incurred during the year includes ` 13.46 crores (Previous year - ` 33.09 crores) on account of research and specified under the head ‘additional • Assessment of impairment of financial development. Depreciation for the year includes depreciation on assets deployed in research and development as per note 46 (a) below. (iv) Refer to note 18.1 for information on PPE pledged as security by the group. Additionally, non funded working capital facilities from information’ in the notes forming part of the assets and non-financial assets – Note banks amounting to ` 58.50 crores (previous year : Nil) are secured by hypothecation of CPP and HFC134A plant situated at Dahej standalone financial statements. 2.20 and Note 2.8 in state of Gujarat. (v) Refer to note 46 (c) for additions/adjustments on account of exchange difference during the year. • Recognition and measurement of (vi) The group accounts for all capitalizations of property, plant and equipment through capital work in progress, and, therefore, the The amendments are extensive and the contingencies: key assumptions about the movement in capital work in progress is the difference between closing and opening balance of capital work in progress as adjusted Company will evaluate the same to give likelihood and magnitude of an outflow of in additions to property, plant and equipment and intangible assets. (vii) Disposals/adjustments during the previous year includes property plant and equipment of discontinued operations. effect to them as required by law resources – Note 2.13 Refer note 42 below.

282 Annual Report 2020-21 283 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 5. Goodwill Particulars Trade Technical Software Others Total Cost Amount Marks/ Knowhow Balance at March 31, 2019 4.91 Brands Additions - Accumulated amortisation Disposals (0.79) Balance at March 31, 2019 14.15 5.23 22.24 18.40 60.02 Balance at March 31, 2020 4.12 Amortisation expenses Additions - - Continuing operations 2.61 1.71 3.06 0.10 7.48 Disposals - - Discontinued operations - - 0.02 - 0.02 Balance at March 31, 2021 4.12 Disposals / adjustments - (0.99) (0.13) - (1.12) Balance at March 31, 2020 16.76 5.95 25.19 18.50 66.40 Amortisation expenses Accumulated impairment losses Amount Balance at March 31, 2019 0.83 - Continuing operations 2.45 1.70 4.04 0.05 8.24 Additions 2.67 - Discontinued operations - - - - - Balance at March 31, 2020 3.50 Effects of foreign currency - - 0.04 - 0.04 STATUTORY REPORTS Additions - exchange differences Balance at March 31, 2021 3.50 Balance at March 31, 2021 19.21 7.65 29.27 18.55 74.68

Carrying Amount As at As at Carrying Amount March 31, 2021 March 31, 2020 Balance at March 31, 2020 60.77 49.24 5.56 0.89 116.46 Industrial yarn unit 0.62 0.62 Balance at March 31, 2021 58.32 47.54 5.67 0.84 112.37 0.62 0.62 Notes: The group has allocated goodwill to the above mentioned cash generating units(CGU) and determined (i) Refer note 46 (c) for additions/adjustments on account of exchange difference during the previous year. recoverable amount of this allocated goodwill using cash flow projections based on financial budget as (ii) Disposals/adjustments during the previous year pertains to intangible assets of discontinued operations. approved by the directors of the Company. Refer note 42 below.

SRF Industries(Thailand) Limited closed its Technical Textiles Business operations located at Rayong, 7. Investments Thailand, thus corresponding goodwill of ` 2.67 crores has been written off in the statement of consolidated As at As at profit and loss in the previous financial year. (Also refer note 42) March 31, 2021 March 31, 2020 FINANCIAL STATEMENTS Non-current 6. Other Intangible Assets Investment in equity instruments 4.16 4.16 Particulars Trade Technical Software Others Total 4.16 4.16 Marks/ Knowhow Aggregate book value of unquoted investments 4.16 4.16 Brands Cost Aggregate amount of impairment in value of investments 4.34 4.34 Balance at March 31, 2019 77.20 45.67 26.71 19.30 168.88 Current Additions / adjustments 0.33 10.51 4.39 0.09 15.32 Investment in mutual funds 197.16 198.50 Disposals / adjustments - (0.99) (0.35) - (1.34) Investment in bonds/Debentures 215.36 - Balance at March 31, 2020 77.53 55.19 30.75 19.39 182.86 412.52 198.50 Additions / adjustments - - 4.19 - 4.19 Aggregate book value and market value of quoted investments 215.36 - Disposals / adjustments - - - - - Aggregate book value and market value of unquoted 197.16 198.50 Balance at March 31, 2021 77.53 55.19 34.94 19.39 187.05 investments

284 Annual Report 2020-21 285 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 7.1 Investment in equity instruments (at fair value through other comprehensive income) As at As at As at As at March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Number Amount Number Amount Number Amount Number Amount Bonds Unquoted investments (Non-current) 8.85% HDFC Bank Limited Perpetual Bonds 2022 500.00 51.00 - - Equity shares of ` 10 each fully paid up of 42,21,535 4.22 42,21,535 4.22 of ` 10,00,000 each Malanpur Captive Power Limited 8.99% Bank of Baroda Perpetual Bonds 2024 of ` 500.00 51.02 - - Less: impairment in value of investments (4.22) (4.22) 10,00,000 each 9.56% State Bank of India Perpetual Bonds 2023 500.00 52.24 - - Equity Share of ` 10 each fully paid of Vaayu 50,000 0.05 50,000 0.05 of ` 10,00,000 each Renewable Energy (Tapti) Private Limited 215.36 - Equity Shares of ` 10 each fully paid of Suryadev 13,54,000 4.11 13,54,000 4.11 Alloys & Power Private Limited 8. Loans Equity shares of ` 10 each fully paid up of Sanghi 6,70,000 0.12 6,70,000 0.12 (unsecured and considered good, unless otherwise stated) Spinners India Limited STATUTORY REPORTS As at As at Less: impairment in value of investments - (0.12) - (0.12) March 31, 2021 March 31, 2020 4.16 4.16 Non-current Loans to employees 10.56 9.96 7.2 Investment in mutual funds (at fair value through profit and loss) Security deposits As at As at Related parties (Refer note 35) 3.54 3.54 March 31, 2021 March 31, 2020 Other than related parties 32.34 30.37 Number Amount Number Amount Unquoted investments (Current) 46.44 43.87 ICICI Prudential P1543 Saving Fund-Growth Plan 36,12,365 117.16 36,12,365 108.44 Current ICICI Prudential P3223 Overnight Fund-Growth Plan - - 27,93,962 30.06 Loans to employees 7.69 6.88 UTI Overnight Fund - Regular Growth Plan - - 2,21,205 60.00 Security deposits Axis Overnight Fund- Regular Growth Plan 2,76,009 30.00 - - Other than related parties 3.52 18.29 SBI Liquid Fund L72SG Regular Growth Plan 1,56,109 50.00 - - 197.16 198.50 Others FINANCIAL STATEMENTS Credit impaired 2.74 2.74 7.3 Investment in Bonds/Debentures (at fair value through profit and loss) Less : Provision for credit impaired loans (2.74) (2.74) As at As at 11.21 25.17 March 31, 2021 March 31, 2020 Number Amount Number Amount 9. Deferred Tax (NET) Quoted investments (Current) The following is the analysis of deferred tax assets (liabilities) presented in balance sheet. Debentures As at As at Non convertible debentures of Shriram Transport 250.00 32.11 - - March 31, 2021 March 31, 2020 Finance Company Limited 2021 of ` 10,00,000 each Deferred tax assets 331.70 469.92 7.35% non convertible debentures of NIIF 250.00 25.43 - - Deferred tax liabilities (699.72) (631.16) Infrastructure Finance Limited of ` 10,00,000 each Deferred tax liabilities, net (368.02) (161.24) Non convertible debentures of Tata Capital 30.00 3.56 - - Net Deferred tax assets after set off 18.14 14.26 Financial Services Limited of ` 10,00,000 each Net Deferred tax liabilities after set off 386.16 175.50

286 Annual Report 2020-21 287 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW The major components of deferred tax assets/(liabilities) arising on account of temporary differences 2019-20 Opening Recognised in statement of MAT Credit Recognised Foreign Closing are as follows: balance profit and loss Entitlement in other currency Balance utilised comprehensive translation 2020-21 Opening Recognised in statement of MAT Credit Recognised Foreign Closing Continuing Discontinued income reserve for balance profit and loss Entitlement in other currency Balance operations operations the year Continuing Discontinued utilised comprehensive translation Deferred tax liabilities operations operations income reserve for the year Property plant and (697.77) 72.01 - - - 8.74 (617.02) Deferred tax assets equipment and intangible assets Expenses deductible in 27.70 (6.01) - - - 1.80 23.49 future years Investment in mutual (8.24) 0.29 - - - - (7.95) funds Provision for credit 0.90 0.37 - - - (0.01) 1.26 impaired loans / Cash flow hedges (15.29) - - - 15.29 - - receivables Others (1.15) (5.04) - - - - (6.19) MAT Credit Entitlement 367.07 5.38 - (97.79) - - 274.66 (722.45) 67.26 - - 15.29 8.74 (631.16) Cash flow hedges 42.29 - - - (42.29) - - Total (341.98) 105.46 8.57 - 60.44 6.27 (161.24) Unabsorbed carried 22.98 (1.91) 2.42 - - 0.46 23.95

forward losses Notes: STATUTORY REPORTS Others 8.98 (1.40) - - - 0.76 8.34 (i) At March 31, 2021, there was no recognised deferred tax liability (Previous year : Nil) for taxes that would be payable 469.92 (3.57) 2.42 (97.79) (42.29) 3.01 331.70 on the unremitted earnings of certain of the Company’s subsidiaries. The Company has determined that undistributed profits of its subsidiaries will not be distributed in the foreseeable future. (ii) Section 115BAA of the Income Tax Act, 1961 was introduced by the Taxation Laws (Amendment) Ordinance, 2019. Deferred tax liabilities During the previous year, based on the estimate of expected timing of exercising of the option under Section 115BAA, the Property plant and (617.02) (54.82) - - - (11.44) (683.28) Company had re-measured its deferred tax balances. Consequently, tax credit of ` 136.11 Crores (net of MAT adjustment equipment and of ` 74.02 crores) was recorded in the Statement of Profit and Loss during the year ended March 31, 2020. intangible assets (iii) MAT credit entitlement of ` 74.02 Crores (out of total ` 87.85 Crores generated during the previous year) expiring in the Investment in mutual (7.95) (2.90) - - - - (10.85) financial year ending March 31, 2035 is not recognised in the statement of profit and loss of the previous year, due to funds expected timing of exercising of the option under section 115BAA of Income Tax Act, 1961. Cash flow hedges - - - - (4.28) - (4.28) (iv) As on March 31, 2019 there were capital losses of ` 186.32 Crores expiring in the financial year ending March 31, 2023 Others (6.19) 4.88 - - - - (1.31) on which no deferred tax asset was created, due to lack of probability of future capital gains against which such deferred (631.16) (52.84) - - (4.28) (11.44) (699.72) tax assets can be realised. Pursuant to recognition of long term capital gain in the previous year, such capital losses were Total (161.24) (56.41) 2.42 (97.79) (46.57) (8.43) (368.02) set off in previous year. Also refer Note 42 (A).

10. Other Financial Assets 2019-20 Opening Recognised in statement of MAT Credit Recognised Foreign Closing balance profit and loss Entitlement in other currency Balance (unsecured and considered good, unless otherwise stated) utilised comprehensive translation FINANCIAL STATEMENTS Continuing Discontinued As at As at operations operations income reserve for the year March 31, 2021 March 31, 2020 Deferred tax assets Non-current Expenses deductible in 30.49 (1.07) - - - (1.72) 27.70 Derivatives carried at fair value through Other comprehensive future years income Provision for credit 0.80 0.10 - - - - 0.90 - Forward exchange contracts used for hedging 28.84 - impaired loans / Other financial assets carried at amortised cost receivables MAT Credit Entitlement 330.34 36.73 - - - 367.07 - Government grant and claims recoverable 15.85 15.86 Cash flow hedges - - - - 42.29 - 42.29 44.69 15.86 Unabsorbed carried 10.62 3.98 8.57 - - (0.19) 22.98 Current forward losses Derivatives carried at fair value through profit and loss Others 8.22 (1.54) - - 2.86 (0.56) 8.98 380.47 38.20 8.57 - 45.15 (2.47) 469.92 - Forward exchange contracts used for hedging 4.39 0.08

288 Annual Report 2020-21 289 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW As at As at As at As at March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Derivatives carried at fair value through Other comprehensive income Goods-in-transit included above : - Forward exchange contracts used for hedging 56.70 - Raw material (including packing material) 241.43 183.33 - Interest rate swaps used for hedging 1.01 - Finished goods 100.47 35.83 Other financial assets carried at amortised cost Stores and spares (including fuel) 1.06 2.59 - Insurance claim recoverable 0.33 5.79 Traded goods 0.33 2.02 - Government grant and claims recoverable 154.11 163.84 343.29 223.77 - Others 9.31 0.67 Notes 225.85 170.38 (i) The cost of inventories recognised as an expense includes ` 11.22 crores.(Previous year : ` 10.56 Crores) in respect of write-downs of inventory to net realisable value. 11. Other Assets (ii) Refer Note 18.1 for information on inventories pledged as security by the group. (unsecured and considered good, unless otherwise stated) (iii) The method of valuation of inventory has been stated in note 2.12 As at As at March 31, 2021 March 31, 2020 13. Trade Receivables STATUTORY REPORTS Non-current Current As at As at Capital advances 229.30 83.70 March 31, 2021 March 31, 2020 Prepaid expenses 0.25 0.26 Unsecured, considered good 1,274.56 891.07 Cenvat/Service tax/Goods and Services Tax/ sales tax 14.43 12.32 Unsecured, credit impaired 5.03 3.61 recoverable Less: Provision for credit impaired receivables (5.03) (3.61) Claims recoverable under Post EPCG scheme and others 0.12 0.22 1,274.56 891.07 Total other non-current assets 244.10 96.50 (i) The credit period generally allowed on sales varies, on a case to case basis, business to business and based on Current market conditions. Maximum credit period allowed is upto 120 days Prepaid expenses 11.97 10.24 (ii) Age of receivables : Cenvat/Service tax/ Goods and Services Tax/ sales tax 103.02 136.42 As at As at recoverable March 31, 2021 March 31, 2020 Export incentives recoverable 32.76 63.67 Within the credit period 1,131.74 691.32 Deposits with customs and excise authorities 17.58 8.29 1 to 180 days past due 141.25 187.54 Advance to suppliers 99.61 61.30 FINANCIAL STATEMENTS More than 180 days past due 6.60 15.82 Others 2.02 0.88 Total other current assets 266.96 280.80 1,279.59 894.68 (iii) The group has entered into receivables purchase agreements with banks to unconditionally and irrevocably sell, 12. Inventories transfer, assign and convey all the rights, titles and interest of the group in the receivables as identified. Receivables (Valued at lower of cost and net realisable value) sold as on March 31, 2021 are of ` 369.12 crores (Previous year: ` 502.55 Crores). The group has derecognized these receivables as it has transferred its contractual rights to the banks with substantially all the risks and rewards As at As at of ownership and retains no control over these receivables as the banks have the right to further sell and transfer March 31, 2021 March 31, 2020 these receivables with notice to the group. Raw material (including packing material) 683.36 512.59 (iv) The group sold, with recourse, trade receivables amounting to ` 47.15 Crores (Previous Year: Nil) to a bank for cash Stock in progress 176.47 156.45 proceeds. These trade receivables have not been derecognised because the group retains substantially all of the Finished goods 338.59 281.24 risks and rewards, primarily credit risk. The amounts received on such transfer have been recognised as a secured Stores and spares (including fuel) 263.08 243.93 bank loan (Refer note 18) Traded goods 4.32 7.02 (v) There is no customer who represents more than 10% (Previous year - Nil) of the total balances of trade receivables. 1,465.82 1,201.23 (vi) Refer Note 18.1 for information on trade receivables pledged as security by the group.

290 Annual Report 2020-21 291 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 14. Cash and Cash Equivalents 16.1 Fully paid equity shares As at As at Number of shares Amount March 31, 2021 March 31, 2020 Balance at March 31, 2019 5,74,80,500 57.48 Balances with banks Add : Movement during the year - - Current accounts 124.57 102.87 Balance at March 31, 2020 5,74,80,500 57.48 Exchange Earners Foreign Currency (EEFC) accounts 12.83 9.54 Add : Movement during the year* 17,64,705 1.76 Deposit accounts with maturity of three months or less 0.09 2.91 Balance at March 31, 2021 5,92,45,205 59.24 Cash on hand 0.80 1.12 There are no bonus issue or buy back of equity shares during the period of five years immediately preceding 138.29 116.44 the reporting date. The disclosures regarding details of specified bank notes held and transacted during the period November 8, *During the year ended March 31, 2021 the Company has issued 17,64,705 fully paid up equity shares 2016 to December 30, 2016 have not been made since the requirement does not pertain to financial Year equivalent to 3.07% of the existing paid up equity capital of the Company to Qualified Institutional Buyers ended March 31, 2021. in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. These shares ` ` 15. Bank Balances Other than Above were issued at an issue price of 4,250 per share (including securities premium of 4,240 per share) for an aggregate consideration of ` 750 Crores. The proceeds (net of share issue expenses of ` 11.99 Crores As at As at STATUTORY REPORTS charged off against securities premium) have been utilised for repayment of borrowings. March 31, 2021 March 31, 2020 Earmarked balances Terms/ rights attached to equity shares : - Margin money 1.95 2.89 The parent has only one class of equity shares having a par value of ` 10 per share. Each holder of equity - Unclaimed dividend accounts 6.57 6.04 shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. Other deposit accounts The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in - Deposit accounts with maturity beyond three months upto 135.19 0.10 the ensuing Annual General Meeting. The Board may from time to time pay to the members, such interim twelve months dividends as appear to it to be justified by the profits of the group. 143.71 9.03 During the Year ended March 31, 2021, the amount of interim dividend recognised as distributions to equity shareholders was ` 24 per share (Previous year : ` 14 per share). 16. Share Capital As at As at In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining March 31, 2021 March 31, 2020 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. Authorised share capital: 120,000,000 (Previous Year - 120,000,000) Equity shares of ` 10 each 120.00 120.00 16.2 Details of shares held by the holding company 1,000,000 (Previous Year - 1,000,000) Preference shares of ` 100 each 10.00 10.00 Number of fully paid FINANCIAL STATEMENTS 1,200,000 (Previous Year - 1,200,000) Cumulative Preferences shares of 6.00 6.00 ordinary shares ` 50 each As at March 31, 2021 20,000,000 (Previous Year - 20,000,000) Cumulative Preferences shares 200.00 200.00 KAMA Holdings Limited, the Holding group 3,00,49,000 ` of 100 each As at March 31, 2020 336.00 336.00 KAMA Holdings Limited, the Holding group 3,00,49,000 Issued capital: 63,301,960 (Previous Year - 61,537,255) Equity Shares of ` 10 each 63.30 61.54 16.3 Details of shares held by each shareholder holding more than 5% shares: Subscribed capital: Class of shares / Name of As at March 31, 2021 As at March 31, 2020 59,245,205 (Previous Year - 57,480,500) Equity Shares of ` 10 59.24 57.48 shareholder Number of % holding in Number of % holding in each fully paid up shares held that class of shares held that class of Add: Forfeited shares - Amount originally paid up 1.02 1.02 shares shares Fully paid equity shares 60.26 58.50 Kama Holdings Limited 3,00,49,000 50.72% 3,00,49,000 52.28% Amansa Holding Private Limited 33,73,411 5.69% 41,78,636 7.27%

292 Annual Report 2020-21 293 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 17. Other Equity 17.3 Cash flow hedging reserve (Refer note 40.3.1 (C)) As at As at March 31, 2021 March 31, 2020 As at As at General reserve 648.77 573.77 March 31, 2021 March 31, 2020 Retained earnings 5,113.66 4,117.69 Balance at beginning of year (78.56) 24.39 Cash flow hedging reserve 7.53 (78.56) Recognized/(reclassed) during the year 132.33 (160.53) Cost of hedging reserve 3.13 - Capital redemption reserve 10.48 10.48 Income tax related to above (46.24) 57.58 Capital reserve 193.77 193.77 Balance at end of year 7.53 (78.56) Debenture redemption reserve 62.50 75.00 Foreign currency translation reserve 21.77 (14.67) The Cash flow hedge reserve represents the cumulative effective portion of gains or losses arisingon Reserve for equity instruments through other comprehensive income (4.22) (4.22) changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. Employee share based payment reserve 2.52 1.56 The cumulative gain or loss arising on changes in the fair value of the designated portion of the hedging Securities premium 736.25 - instruments that are recognised and accumulated under the heading of cash flow hedging reserve will be 6,796.16 4,874.82 reclassified to profit or loss only when the hedged transaction affects the profit or loss, or included as a STATUTORY REPORTS basis adjustment to the non-financial hedged item. 17.1 General reserve As at As at 17.4 Cost of hedging reserve March 31, 2021 March 31, 2020 (Refer note 40.3.1 (C) Balance at beginning of year 573.77 573.77 Increase/(decrease) during the year 75.00 - As at As at Balance at end of year 648.77 573.77 March 31, 2021 March 31, 2020 Balance at beginning of year - - The general reserve is created from time to time on transfer of profits from retained earnings. General reserve Recognized/(reclassed) during the year 3.46 - is created by transfer from one component of equity to another and is not an item of other comprehensive income. Items included in general reserve will not be reclassified subsequently to profit and loss. Income tax related to above (0.33) - Balance at end of year 3.13 - 17.2 Retained earnings As at As at The cost of hedging reserve reflects gain or loss on the portion excluded from the designated March 31, 2021 March 31, 2020 hedging instrument that relates to the forward element of forward contracts. It is initially recognised FINANCIAL STATEMENTS Balance at beginning of year 4,117.69 3,201.00 in other comprehensive income and accounted for similarly to gains or losses in the cash flow Profit for the year 1,197.94 1,019.09 hedging reserve. Other comprehensive income arising from measurement of 1.84 (5.39) defined benefit obligation* (Refer note 36.2 (iv)) 17.5 Capital redemption reserve Payments of dividend on equity shares (141.31) (80.47) As at As at Corporate tax on dividend - (16.54) March 31, 2021 March 31, 2020 Transfer to debenture redemption reserve (62.50) - Balance at end of year 5,113.66 4,117.69 Balance at beginning of year 10.48 10.48 Increase/(decrease) during the year - - The amount that can be distributed as dividend by the parent to its equity shareholders is determined Balance at end of year 10.48 10.48 based on the separate financial statements of the parent company and also considering the requirements of the Companies Act, 2013. Capital Redemption reserve is a statutory, non-distributable reserve into which amounts are transferred *net of income tax of ` (0.84) crores. (Previous year : ` 2.86 crores) following the redemption or purchase of a company’s own shares. The reserve is utilised in accordance with the provision of the Act.

294 Annual Report 2020-21 295 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 17.6 Capital reserve 17.10 Employee share based payment reserve As at As at As at As at March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Balance at beginning of year 193.77 193.77 Balance at beginning of year 1.56 0.58 Increase/(decrease) during the year - - Increase/(decrease) during the year 0.96 0.98 Balance at end of year 193.77 193.77 Balance at end of year 2.52 1.56

Capital reserve represents amounts received pursuant to Montreal Protocol Phase-out Programme of The group has allotted equity shares to certain employees under an employee share purchase scheme. refrigerant gases. The share based payment reserve is used to recognise the value of equity-settled share based payments provided to the such employees as part of their remuneration. Refer note 37 for further details of the scheme. 17.7 Debenture redemption reserve 17.11 Securities premium As at As at March 31, 2021 March 31, 2020 As at As at Balance at beginning of year 75.00 75.00 March 31, 2021 March 31, 2020 Balance at beginning of year - -

Increase/(decrease) during the year (75.00) - STATUTORY REPORTS Increase/(decrease) during the year 736.25 - Transfer from retained earnings 62.50 - Balance at end of year 736.25 - Balance at end of year 62.50 75.00 Securities premium represents the amount received in excess of the face value upon issue of equity shares. The Company has issued non-convertible debentures. The company has created debenture redemption The same may be inter-alia utilised, for issue of fully paid bonus shares or for buy-back of equity shares by reserve out of the profits of the company available for payment of dividend. the Company, in accordance with the provisions of the Act. Expenses amounting to ` 11.99 Crores incurred on issue of equity shares under Qualified Institutional Placement have been charged off against securities 17.8 Reserve for equity instruments through other comprehensive income premium. (Refer note 16.1) As at As at 18. Borrowings March 31, 2021 March 31, 2020 As at As at Balance at beginning of year (4.22) (4.22) March 31, 2021 March 31, 2020 Increase/(decrease) during the year - - Non-current Balance at end of year (4.22) (4.22) Secured 2,500 Nos., Three Months T Bill plus 188 bps (2020: 3000 Nos. 250.00 299.97 This reserves represents the cumulative gains and losses arising on the revaluation of equity instruments 7.33%), listed, secured redeemable non-convertible debentures measured at fair value through other comprehensive income, net of amount reclassified to retained earnings of ` 10 lakhs each* (Refer note 18.1.1 and 18.1.2) FINANCIAL STATEMENTS when those assets have been disposed of. Term Loans from banks* (Refer note 18.1.3) 1,978.95 1,890.89 Term Loans from others*(Refer note 18.1.4) 196.31 281.59 17.9 Foreign currency translation reserve Less: Current maturities of long term borrowings *(Refer note 21) (460.25) (779.75) As at As at 1,965.01 1,692.70 March 31, 2021 March 31, 2020 Unsecured Balance at beginning of year (14.67) (4.00) Term Loans from Banks* - 618.93 Exchange differences arising on translation of foreign operations 36.44 (10.67) - 618.93 Balance at end of year 21.77 (14.67) 1,965.01 2,311.63 Current Exchange differences relating to translation of the results and net assets of the group’s foreign operations from Secured their functional currency in to group presentation currency (i.e. `) are recognized in Other Comprehensive Cash credits from banks (Refer note 18.1.5.(iii)) 0.44 10.00 Income and accumulated in foreign currency translation reserve. Exchange differences previously Loans repayable on demand from banks (Refer note 18.1.4.((i) and (iii)) 297.71 256.84 accumulated in foreign currency translation reserve in respect of foreign operations are reclassified to Bills discounted with banks (Refer note 18.1.4.(iv)) 47.15 - statement of profit and loss on disposal of foreign operation. 345.30 266.84

296 Annual Report 2020-21 297 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW As at As at Details of Loan As at As at Security March 31, 2021 March 31, 2020 March 31, March 31, Unsecured 2021# 2020# Loans repayable on demand from banks 520.40 488.60 Moveable property * Commercial papers from banks and others # 100.00 200.00 3 (i) Term loan from Banks 1,390.07 1,343.02 (a)(i) Out of the loans as at 3(i), loans 620.40 688.60 aggregating to ` 1099.30 Crores (Previous ` 965.70 955.44 Year – 1154.12 Crores) are secured by hypothecation of Company’s moveable * Above amount of borrowings are net of upfront fees paid ` 5.02 crores (Previous year : ` 9.40 Crores) properties, both present and future, situated # ` ` The maximum amount due during the year is 600 crores (Previous year : 400.00 Crores) at Manali, Viralimalai (other than moveable There have been no defaults in repayment of principal and interest on borrowings during the reporting periods. assets of Coated Fabrics Business) and Gummidipoondi in the State of Tamil Nadu, 18.1 Details of security of the secured loans: Jhiwana in the State of Rajasthan, Malanpur and Special Economic Zone, Indore in the Details of Loan As at As at Security State of Madhya Pradesh and Kashipur (other March 31, March 31, than moveable assets of Laminated Fabrics # # 2021 2020 Business) in the State of Uttarakhand and STATUTORY REPORTS 1 Nil (Previous Year 3,000), 7.33%, - 300.00 Debentures were secured by hypothecation of Dahej in the State of Gujarat (save and except Listed, Secured Redeemable Non- Company’s moveable properties, both present certain assets) Convertible Debentures of ` 10 and future, situated at Manali, Viralimalai (a)(ii) Out of the loans as at 3(i), loans lakhs each* (other than moveable assets of Coated aggregating to ` 290.77 Crores (Previous Year Fabrics Business) and Gummidipoondi in the – ` 188.90 Crores) are in the process of being Terms and conditions State of Tamil Nadu, Jhiwana in the State of secured by hypothecation of Company’s Rajasthan, Malanpur and Special Economic a) Redeemable at face value in moveable properties, both present and Zone, Indore in the State of Madhya Pradesh, one single instalment at the future, situated at Manali, Viralimalai(other Kashipur in the State of Uttarakhand (other end of 3rd year from the date than moveable assets of Coated Fabrics than moveable assets of Laminated Fabrics of allotment. Business) and Gummidipoondi in the State Business) and Dahej in the State of Gujarat of Tamil Nadu, Jhiwana in the State of b) Coupon is payable annually on (excluding certain assets) and an equitable Rajasthan, Malanpur and Special Economic June 30, every year. mortgage of Company’s immoveable Zone, Indore in the State of Madhya Pradesh properties, both present and future, situated and Kashipur(other than moveable assets of at Viralimalai, Gummidipoondi (freehold land) Laminated Fabrics Business) in the State of in the State of Tamil Nadu, Jhiwana in the Uttarakhand and Dahej in the State of Gujarat State of Rajasthan and Kashipur in the State (save and except certain assets) FINANCIAL STATEMENTS of Uttarakhand. Immoveable property 2 2,500 (Previous Year : Nil), 250.00 - Debentures are secured by hypothecation of 3 Months T-Bill + 188 bps, Listed, Company’s moveable properties, both present (b)(i) Out of the loans as at 3(i) loans ` Secured, Redeemable, Non- and future, situated at Manali, Viralimalai aggregating to 849.30 Crores (Previous ` Convertible Debentures of the face (other than moveable assets of Coated Year – 1343.02 Crores) are secured by value of 10 lakhs each* Fabrics Business) and Gummidipoondi in the equitable Mortgage of Company’s immoveable State of Tamil Nadu, Jhiwana in the State of properties, both present and future, situated Terms and conditions Rajasthan, Malanpur and Special Economic at Viralimalai, Gummidipoondi (freehold land) Zone, Indore in the State of Madhya Pradesh, in the State of Tamil Nadu and Kashipur in a) Redeemable at face value in the State of Uttarakhand one single instalment at the Kashipur in the State of Uttarakhand (other than moveable assets of Laminated Fabrics (b)(ii) Out of the loans as at 3(b)(i)) loans end of 2nd year from the date ` Business) and Dahej in the State of Gujarat aggregating to 400.99 Crores (Previous Year of allotment. ` (excluding certain assets). – 544.56 Crores) are additionally secured by b) Coupon is payable on a equitable Mortgage of Company’s immoveable quarterly basis every year. properties, both present and future, situated at Jhiwana in the State of Rajasthan.

298 Annual Report 2020-21 299 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Details of Loan As at As at Security Details of Loan As at As at Security March 31, March 31, March 31, March 31, 2021# 2020# 2021# 2020# (b)(iii) Out of the loans as at 3(b)(i) loans (ii) Loans repayable on demand from 64.33 12.39 Working capital facilities is secured by pledge of 85% aggregating to ` Nil (Previous Year – ` 75.56 Crores) banks of the share capital of SRF Europe Kft held by SRF are additionally secured by equitable Mortgage of Global BV and pledge over receivables arising out of Company’s immoveable properties, both present and trade agreements future, situated at Malanpur in the State of Madhya (iii) Cash credit from banks 0.44 10.00 Working capital facilities availed by SRF Flexipak (South Pradesh (save and except superstructures). Africa) (Pty) Ltd. are secured by cession of debtors (b) (iv) Out of the loans as at 3(i), the term loans and limited cession and pledge of credit balances aggregating to: (iv) Bills discounted with Banks 47.15 - Secured against certain trade receivables of the (a) ` Nil (Previous Year - ` 565.48 crores) were to Company. (Also Refer note 13 (iv)) be secured by equitable mortgage of immoveable *Such hypothecation in respect of Non convertible debentures mentioned in point no. 2 and hypothecation and equitable properties at Viralimalai, Gummidipoondi (freehold mortgage mentioned in point no 3 rank pari-passu inter se between term loans from banks / Non convertible debentures. land) in the State of Tamil Nadu and Kashipur in the (Previous year : Such hypothecation and equitable mortgage in point no 1 and 3 rank pari-passu between term loans from State of Uttarakhand in the previous year. banks / Non convertible debentures). STATUTORY REPORTS (b) ` 38.50 Crores (Previous Year – ` 43.50 Crores) The term loans figures from bank as on March 31, 2020 as mentioined in point 3(i)(a)(i) and 3(i)(b)(i) above includes amount of ` 200 crores, which was repaid during the current financial year. However, charge created to secure the said loan against are to be further secured by equitable mortgage of the assets mentioned in the said points is yet to be released. Company’s immoveable properties, both present and During the current financial year, the company has taken term loan of` 500 crores which was secured by assets as mentioned future, situated at Jhiwana in the State of Rajasthan. in point 3(i)(a)(i). This loan was repaid during the current year only, however, charge created against these assets is yet (ii) Term loan from banks 428.88 395.69 Term loan is secured by pledge of 85% of the share to be released. capital of SRF Europe Kft held by SRF Global BV, #Gross of upfront fees paid ` 5.02 Crores (Previous year - ` 9.40 Crores) mortgage of land and building of SRF Europe Kft and exclusive charge over the fixed assets of SRF Europe Kft. 18.2 Terms of loans (iii) Term loan from banks 163.79 161.00 Term loan is secured by mortgage of existing As at March 31, 2021 plant and machinery, land and building and/or any Non Current Borrowings construction in future of Packaging film Factory Loan Category Frequency of Interest rate Up to Up to Up to From (SRF Industries (Thailand) Ltd). principal March 31, March 31, March 31, 2024 to 4 (i) Term loans from others 21.95 60.48 Term loan availed from International Finance repayments 2022 2023 2024 2027 Corporation, Washington is secured by continuing Redeemable Redeemable at Floating rate at - 250.00 - - coverage mortgage bond over the land, special Non-Convertible face value in 5.23% notarial bond and general notarial bond over the Debentures one Instalment property of SRF Flexipak (South Africa) (Pty) FINANCIAL STATEMENTS Limited. at the end of (ii) Term loans from others 175.59 221.66 Loan of ` 175.59 Crores (Previous Year – ` 221.66 second year Crores) is secured by the hypothecation and Term loan from Half yearly Ranging from 17.63 55.76 23.26 232.62 equitable mortgage of Company’s moveable and banks instalment 1.23% to 7.85% immoveable properties at Dhar in the State of Quarterly Ranging from 379.83 398.00 309.90 544.75 Madhya Pradesh. Instalment 0.41% to 6.25% 5 (i) Loans repayable on demand from 233.38 244.45 Secured by hypothecation of stocks, stores and book Yearly payments Floating rate at 4.00 1.00 1.00 - banks debts (current assets), both present and future at 7.25% Manali, Viralimalai (other than current assets of Coated Bullet payments Fixed rate at - 15.00 - - Fabrics Business) and Gummidipoondi in the State 6.65% of Tamil Nadu, Jhiwana in the State of Rajasthan, Term loan from Half yearly Ranging from 60.95 39.00 39.00 58.58 Malanpur and Indore in the State of Madhya Pradesh and Kashipur (other than current assets of Laminated others payments 2.01% to 2.21% Fabrics Business) in the State of Uttarakhand. 462.41 758.76 373.16 835.95 Amounts mentioned above are gross of upfront fees paid of ` 5.02 Crores.

300 Annual Report 2020-21 301 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Current Borrowings 6) Reedemable non convertible debenture of ` 250.00 Crores are repayable in one bullet instalment in Short term borrowings are either payable in one instalment within one year or repayable on demand. September 2022.(Previous year: Nil). For short term borrowings interest rates ranges from 0.30% to 7.50% 7) Rupee term loans of ` 250.00 Crores are repayable in 16 quarterly instalments from July 2021 18.2 Terms of loans (Previous year: Nil). As at March 31, 2020 8) Foreign currency term loan of ` 114.30 Crores are repayable in 5 quarterly instalments from June 2021 Non Current Borrowings (Previous year: ` 188.90 Crores are repayable in 8 quarterly instalments from September 2020). Loan Category Frequency Interest rate Up to Up to Up to From 9) Foreign currency term loan of ` 361.33 Crores are repayable in 16 quarterly instalments from May 2021 of principal March 31, March 31, March 31, 2023 to ` repayments 2021 2022 2023 2027 (Previous year: 412.90 Crores are repayable in 19 quarterly instalments from August 2020). Redeemable Redeemable at Fixed rate of 300.00 - - - 10) Foreign currency term loan of ` 143.69 Crores are repayable in 11 quarterly instalments from April 2021 Non-Convertible face value in one 7.33% (Previous year: ` 188.90 Crores are repayable in 14 quarterly instalments from July 2020). Debentures instalment at the ` ` end of third year 11) Foreign currency term loan of 75.56 Crores was repaid in current year (Previous year: 75.56 Crores Term loan from Half yearly Ranging from 5.00 46.31 72.81 80.63 repayable in 2 half yearly instalments from September 2020). STATUTORY REPORTS banks instalment 2.71% to 9.05% 12) Foreign currency term loan of ` 175.59 Crores are repayable in 9 half yearly instalments from April 2021 Quarterly Ranging from 217.56 291.53 287.74 595.86 (Previous year: ` 221.66 Crores are repayable in 11 half yearly instalments from April 2020). Instalment 0.55% to 7.40% Yearly payments Ranging from 106.00 104.00 1.00 1.00 13) Foreign currency term loan of ` 15.00 Crores are repayable in one bullet instalment in June 2022 7.65% to 8.25% (Previous year: ` 15.00 Crores is repayable in one bullet instalment in June 2022). Bullet payments Ranging from - 226.68 406.97 - 0.97% to 6.65% 14) Foreign currency term loan of ` 145.82 Crores are repayable in 9 quarterly instalments from April 2021 Term loan from Half yearly Ranging from 153.65 62.96 40.29 100.79 (Previous year: ` 165.16 Crores are repayable in 12 quarterly instalments from July 2020) others instalments 3.28% to 3.92% 782.21 731.48 808.81 778.28 15) Foreign currency term loan of ` 290.77 Crores are repayable in 5 half yearly instalments from March 2022 and 12 monthly instalments from April 2024. (Previous year: Nil). Amounts mentioned above are gross of upfront fees paid of ` 9.40 crores 16) Foreign currency term loan of ` 226.68 Crores repaid in current financial year (Previous year:` 226.68 CURRENT BORROWINGS Crores repayable in one bullet instalment in December 2021). Short term borrowings are either payable in one instalment within one year or repayable on demand. 17) Foreign currency term loan of ` 226.68 Crores repaid in current financial year (Previous year:` 226.68 For short term borrowings interest rates ranges from 0.80% to 8.75%. FINANCIAL STATEMENTS Crores repayable in one bullet instalment in December 2022). Terms of repayment ` ` 1) Reedemable non convertible debenture of ` 300 Crores repaid in current year in June 2020 (Previous 18) Foreign currency term loan of 165.34 Crores repaid in current financial year ((Previous year: 165.34 year: ` 300 Crores are repayable in one bullet instalment in June 2020) Crores repayable in one bullet instalment in December 2022). ` 2) Rupee term loans of 38.50 Crores are repayable in 3 half yearly instalments from August 2021 19) Foreign currency term loan of ` 21.95 Crores are repayable in 2 half yearly instalments from May 2021 ` (Previous year: 43.50 Crores repayable in 5 half yearly instalments from August 2020). (Previous year: ` 60.45 Crores are repayable in 4 half yearly instalments from May 2020). 3) Rupee term loans of ` 24.66 Crores are repayable in 6 quarterly instalments from June 2021 (Previous year: `41.10 Crores repayable in 10 quarterly instalments from June 2020) 20) Foreign currency term loan of ` 428.88 Crores are repayable in 20 quarterly instalments from March 2022 (Previous year : ` 395.69 Crores are repayable in 20 quarterly instalments from March 2022). 4) Rupee term loans of ` 200.00 Crores repaid in current financial year (Previous year: ` 200.00 Crores repayable in 2 annual instalments from August 2020). 21) Foreign currency term loan of ` 163.79 Crores are repayable in 8 half yearly instalments from 5) Rupee term loans of ` 6.00 Crores are repayable in 3 annual instalments from December 2020 September 2021 (Previous year : ` 161.26 Crores are repayable in 8 half yearly instalments from (Previous year: ` 12.00 Crores repayable in 4 annual instalments from December 2019). September 2021).

302 Annual Report 2020-21 303 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 19. Provisions As at As at As at As at March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Amount of interest due and payable for delay in - - Non-Current payment (which has been paid but beyond the Provision for employee benefits appointed day during the year) but without adding Provision for compensated absence (Refer note 36.3) 39.24 32.94 interest under MSMED Provision for retention pay (Refer note 36.3) 0.17 1.49 Interest accrued and remaining unpaid at the end of Other employee benefits 4.14 3.10 the year 43.55 37.53 - Interest accrued during the year - - Current - Interest remaining unpaid as at the end - - Provision for employee benefits of the year Provision for compensated absence (Refer note 36.3) 8.68 6.48 Interest remaining due and payable even in the - - Provision for retention pay (Refer note 36.3) - 0.14 succeeding years, until such date when the interest 8.68 6.62 dues are actually paid, for the purpose of disallowance

of a deductible expenditure STATUTORY REPORTS 20. Trade Payables **including payable to micro enterprise and small enterprise included in other financial liabilities (refer note 21) As at As at March 31, 2021 March 31, 2020 21. Other Financial Liabilities Total outstanding dues of micro enterprises and small 33.37 30.36 As at As at enterprises# March 31, 2021 March 31, 2020 Total outstanding dues of creditors other than micro enterprises Non-Current and small enterprises Derivatives carried at fair value through other comprehensive income - Acceptances* 139.97 92.59 - Forward exchange contracts used for hedging - 21.43 - Other than acceptances 1411.85 988.74 - Interest rate swaps used for hedging 0.54 1.44 1,585.19 1,111.69 0.54 22.87 Current #Refer note 20.1 Current maturities of long term borrowings (Refer note 18) 460.25 779.75 *Acceptances represents invoices discounted by vendors with banks Interest accrued but not due on borrowings 5.79 29.14 20.1 Total outstanding dues of micro enterprises and small enterprises Unpaid dividends* 6.57 6.04 Trade Payables include the following dues to micro and small enterprises covered under “The Micro, Small Security deposits received 8.63 6.88

and Medium Enterprises Development Act, 2006” (MSMED) to the extent such parties have been identified Payables to capital creditors FINANCIAL STATEMENTS from the available information. Total outstanding dues of micro enterprises and small 18.65 5.52 As at As at enterprises# March 31, 2021 March 31, 2020 Total outstanding dues of creditors other than micro 349.46 215.90 enterprises and small enterprises Amount remaining unpaid to suppliers under MSMED Derivatives carried at fair value through other comprehensive income (suppliers) as at the end of year - Forward exchange contracts used for hedging - 44.19 - Principal amount ** 52.02 35.88 - Interest rate swaps used for hedging - 0.98 - Interest due thereon - - Derivatives carried at fair value through profit and loss Amount of payments made to suppliers beyond the - Forward exchange contracts used for hedging - 2.58 appointed day during the year Others 43.19 33.56 - Principal amount - - 892.54 1,124.54 - Interest actually paid under section 16 of - 1.02 MSMED /settled *Amount will be credited to investor education and protection fund if not claimed within seven years from the date of declaration of dividend. #Refer note 20.1

304 Annual Report 2020-21 305 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 22. Tax Assets and Liabilities Reconciliation of revenue from sale of products with the contracted price As at As at Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Non - Current tax assets Contracted price 8,438.70 7,162.59 Advance tax (net of provision for tax) 33.74 35.03 Current tax assets Less: Discounts, allowances and claims (143.30) (100.47) Advance tax (net of provisions for tax) - 1.74 Sale of products 8,295.40 7,062.12 Current tax liablities *Refer Note 42 C Provision for tax (net of advance tax) 12.49 9.75

23. Other Liabilities 25. Other Income* As at As at Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Non-current Interest Income Deferred government grants* 42.77 14.00 - from customers 0.01 0.08 STATUTORY REPORTS 42.77 14.00 - on loans and deposits 1.22 1.09 Current - on others 7.80 13.93 Contract liability (Refer note 41) 18.40 12.68 Net gain on sale/discarding of property, plant and equipment 0.39 12.85 Statutory liabilities 38.07 21.73 Net gain on financial assets measured at fair value through 25.45 9.38 Payable to gratuity trust (Refer note 36.2) 4.52 15.82 Other payables 31.74 35.95 profit and loss 92.73 86.18 Net foreign currency exchange fluctuation gains 11.86 - *The group had received financial assistance from the Industrial Development Corporation of South Africa forthe Provision / liabilities no longer required written back 11.49 2.86 development of the clothing and textiles competitiveness programme - RCF in respect of its property, plant and Other non-operating income 8.13 8.86 equipment in earlier years. 66.35 49.05 Further, during the current year, the group has received financial assistance from Ministry of Foreign *Refer Note 42 C Affair and Trade, Hungary amounting to ` 28.16 crores under the governments’ “Scheme for Investment Promotion” to promote investment and job creation. 26.1 Cost of Materials Consumed The unamortised grant amount as on March 31, 2021 is ` 42.77 crores (Previous year : ` 14.00 crores). Year ended Year ended March 31, 2021 March 31, 2020

24. Revenue from Operations* Opening stock of raw materials FINANCIAL STATEMENTS Year ended Year ended - Continuing operations 512.59 573.01 March 31, 2021 March 31, 2020 - Discontinued operations - 35.10 Sale of products Add: Purchases of raw materials Manufactured goods 8,214.10 6,941.92 - Continuing operations 4,198.45 3,626.97 Traded goods 81.30 120.20 - Discontinued operations - 81.24 8,295.40 7,062.12 4,711.04 4,316.32 Other operating revenues Less: Closing stock of raw materials Claims 0.52 0.25 - Continuing operations 683.36 512.59 Export and other incentives 70.65 102.87 - Discontinued operations - - Scrap sales 29.98 30.07 Cost of materials consumed* Other operating income 3.49 14.10 - Continuing operations 4,027.68 3,687.39 104.64 147.29 - Discontinued operations - 116.34 8,400.04 7,209.41 *including packing material

306 Annual Report 2020-21 307 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 26.2 Purchases of Stock in Trade* 28. Finance Cost* Year ended Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Purchase of stock in trade 62.92 91.40 Interest cost^ 62.92 91.40 - Non convertible debentures 12.27 21.99 *Refer note 42 C - Term loans and others 99.46 145.96 26.3 Changes in Inventories of Finished Goods, Work in Progress and Stock in Trade - Lease liabilities 6.49 6.70 Other borrowing costs 14.95 12.87 Year ended Year ended March 31, 2021 March 31, 2020 Exchange differences regarded as an adjustment to borrowing cost 0.78 13.16 Inventories at the end of the year: 133.95 200.68 - Continuing operations ^pertains to liabilities measured at amortised cost. Stock-in-Process 176.47 156.45 *Refer Note 42 C Finished goods 338.59 281.24 Traded goods 4.32 7.02 29. Depreciation and Amortisation Expense*

519.38 444.71 STATUTORY REPORTS Effect of changes in exchange currency rates Year ended Year ended - Continuing operations March 31, 2021 March 31, 2020 Stock-in-Process 0.56 (0.14) Depreciation of property, plant and equipment 426.78 364.39 Finished goods 2.47 (1.11) Amortisation of intangible assets 8.24 7.48 3.03 (1.25) Depreciation of Right of use assets 18.06 16.74 - Discontinued operations Stock-in-Process - 0.40 453.08 388.61 Finished goods - 0.57 *Refer Note 42 C - 0.97 Inventories at the beginning of the year: 30. Other Expense* - Continuing operations Stock-in-Process 156.45 139.65 Year ended Year ended Finished goods 281.24 209.49 March 31, 2021 March 31, 2020 Traded goods 7.02 5.00 Credit impaired assets provided / written off 11.94 2.05 444.71 354.14 Labour production 52.44 44.92 - Discontinued operations Directors' sitting fees 0.29 0.26 Stock-in-Process - - Expenditure on corporate social responsibility** 12.88 12.00 Finished goods - 7.95 FINANCIAL STATEMENTS Traded goods - 16.37 Property, plant and equipment provided/ written off 1.37 5.55 - 24.32 Freight charges 302.06 223.31 Net (increase) / decrease Insurance 39.57 39.06 - Continuing operations (71.66) (91.82) Power and fuel 717.34 672.55 - Discontinued operations - 25.29 Legal and professional charges 33.10 34.53 27. Employee Benefits Expense* Rates and taxes 9.91 36.37 Year ended Year ended Rent*** 17.92 14.78 March 31, 2021 March 31, 2020 Repairs and maintenance Salaries and wages, including bonus 515.89 446.79 - Buildings 5.38 6.37 Contribution to provident and other funds 40.89 35.79 - Plant and machinery 162.42 158.44 Workmen and staff welfare expenses 63.66 58.36 Share based payment expense (Refer note 37) 0.96 0.98 - Other maintainance 37.34 38.93 621.40 541.92 Selling commission 26.83 21.02 *Refer note 42 C

308 Annual Report 2020-21 309 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Year ended Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Stores and spares consumed 66.54 66.47 (b) Tax expense related to discontinued operations Travelling and conveyance 5.84 19.05 Current tax Auditor remuneration # **** In relation to current year - 61.23 Deferred tax - Audit Fees 1.52 1.12 - Others - For limited review of unaudited financial results 0.94 0.40 In relation to current year (0.28) (8.57) - For Corporate governance, consolidated financial statements 0.22 0.12 Adjustment in relation to earlier years (2.14) - and other certificates (2.42) 52.66 - For tax audit 0.08 0.06 - Reimbursement of out of pocket expenses 0.08 0.16 The income tax expenses for the year can be reconciled to the accounting profits as follows: Exchange currency fluctuation (net) - 3.50 Year ended Year ended Effluent disposal expenses 77.10 77.52 March 31, 2021 March 31, 2020

Miscellaneous expenses 43.26 47.04 Profit before tax STATUTORY REPORTS 1,626.37 1,525.58 From continuing operations 1,612.65 914.70 *Refer note 42 C From discontinued operations (2.73) 155.85 **Refer to note 46(d) Total Profit before tax 1,609.92 1,070.55 ***Refer to note 43 Income Tax Expenses @ 34.944% (Previous year @ 34.944%) 562.57 374.09 #including fees paid to auditors of subsidiary companies Effect of deductions (research and development, share issue expenses (54.59) (76.74) ****Excluding fees of ` 0.43 Crore (Previous year: Nil) for QIP related attestation and certification, netted off from and deductions under Chapter - VIA of Income Tax Act) securities premium. Effect of expenses that are not deductible in determining 5.48 6.25 31. Income Tax Recognised in Profit and Loss taxable profits Year ended Year ended Effect of income taxable at lower rate (26.00) March 31, 2021 March 31, 2020 Effect of credit recognised on set-off of carried forward long - (43.40) Tax expense related to continuing operations 414.40 (1.20) term capital losses (Refer note (iii) below) Tax expense related to discontinued operations (2.42) 52.66 Effect of re-measurement of deferred tax balances / lower (22.73) (136.11) 411.98 51.46 tax rate on certain temporary differences pursuant to Section

(a) Tax expense related to continuing operations 115BAA of Income tax act. Refer to note 9(ii) FINANCIAL STATEMENTS Current tax Effect of Nil tax/exemption of overseas subsidiaries (40.05) (8.66) In relation to current year 357.97 115.97 Effect of Deferred tax created on past accumulated losses - (11.24) Adjustment in relation to earlier years 0.02 (11.71) Effect of lower tax rates in overseas subsidiaries (40.14) 4.27 357.99 104.26 Others 2.45 (3.29) Deferred tax Income tax expenses recognised in profit and loss in 412.99 79.17 - MAT credit entitlement relation to current year In relation to current year - (13.83) Income tax expenses recognised in profit and loss in relation to (1.01) (27.71) Adjustment in relation to earlier years (5.38) (22.90) earlier years (Refer note (ii) below) (5.38) (36.73) - Others Total Income tax expenses recognised in profit and loss 411.98 51.46 In relation to current year 57.44 (75.63) Notes: Adjustment in relation to earlier years 4.35 6.90 (i) The tax rate used for the current year reconciliation above is the corporate tax rate of 34.944% (2020: 34.944%) 61.79 (68.73) payable by corporate entities in India on taxable profits under the Indian tax law.

310 Annual Report 2020-21 311 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW (ii) Income tax in relation to earlier years includes tax credit of ` 1.62 crores (Previous year ` 22.58 crores) which is (ii) The Company had received a draft assessment order for assessment year 2016-17 on related to finalization and determination of deduction/allowance claimed for earlier years under Chapter-VIA of the December 29, 2019 in which adjustments amounting to ` 367.37 Crores were proposed on Income-tax Act, 1961, for generation of power from captive power plants which is based on finalization of transfer pricing study /tax audit reports of the earlier years. account of transfer pricing adjustments etc. which were pending before Dispute Resolution Panel as at March 31, 2021. On April 30, 2021 the Company has received the final assessment (iii) The Company had ` 186.32 Crores of carried forward long term capital losses as per Income Tax Act, 1961, available for set off, on which no deferred tax asset was recognized till year ended March 31,2019. Pursuant to order wherein adjustments amounting to ` 118.49 Crores have been made on account of recognition of long term capital gain, a tax credit of ` 43.40 Crores has been recognised during the previous year transfer pricing adjustments, research and development expenditure and others etc. and in respect of such losses in accordance with Ind AS 12 - “Income Taxes”. demand of ` 22.66 crores have been raised. The Company will file rectification application against research and development disallowance as well as towards certain computation error 32. Income Tax Recognised in Other Comprehensive Income and for rest of the issues, appeal will be filed before ITAT. Based on the facts of the case and Year ended Year ended the Company’s assessment, the Company is of the view that the proposed adjustments are March 31, 2021 March 31, 2020 not likely to sustain. Arising on income and expense recognised in other comprehensive income (iii) The Company has received a show cause notice for assessment year 2017-18 on April 23, 2021 Net (gain)/ loss on designated portion of hedging instruments in (46.24) 57.58 wherein adjustments amounting to ` 377.44 Crores have been proposed on account of transfer cash flow hedges pricing adjustments, research and development expenditure and others etc. Draft assessment Cost of hedging reserve (0.33) - STATUTORY REPORTS Remeasurement of defined benefit obligation (0.84) 2.86 order is yet to be passed by the National E-Assessment Centre. Based on the facts of the case (47.41) 60.44 and the Company’s assessment, the Company is of the view that the proposed adjustments are Bifurcation of the income tax recognised in other not likely to sustain. comprehensive income into: Items that will be reclassified to profit or loss (46.57) 57.58 c. In February 2019, the Honourable Supreme Court of India in its judgement opined on the applicability Items that will not be reclassified to profit or loss (0.84) 2.86 of allowances that should be considered to measure obligations under Employees Provident Funds and (47.41) 60.44 Miscellaneous Provisions Act, 1952. The Company believes that there are interpretative challenges on the application of judgement retrospectively and therefore had applied the judgement on a prospective 33. Contingent Liabilities basis from previous year onwards. As at As at March 31, 2021 March 31, 2020 d. The amounts shown above represents the best possible estimates arrived at on the basis of available a. Claims against the Company not acknowledged as debts: information. The uncertainties and possible reimbursements are dependent on the outcome of the Goods and Services tax, excise duty, custom duty and service tax* 23.11 21.33 different legal processes which have been invoked by the group or the claimants as the case may Sales tax and entry tax ** 20.38 19.08 be and therefore cannot be predicted accurately or relate to a present obligations that arise from Income tax (also refer note b(ii) below) **** 3.74 5.79 past events where it is either not probable that an outflow of resources will be required to settle or a Others *** 13.19 11.85 reliable estimate cannot be made. FINANCIAL STATEMENTS * Amount deposited against contingent liability ` 1.79 Crores (Previous year: ` 2.72 Crores) ` ` ** Amount deposited against contingent liability 7.59 Crores (Previous year: 4.62 Crores) 34. Capital and Other Commitments *** Amount deposited against contingent liability ` 0.40 Crores (Previous year: ` 0.49 Crore) As at As at **** Amount deposited against contingent liability ` 3.09 Crores (Previous year: ` 5.68 Crores) March 31, 2021 March 31, 2020 *** Includes demand by Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Ltd. (MPPKVV Ltd) of ` 11.40 Crores (Previous year: ` 10.06 Crores) which is disputed by the Company. (i) Estimated amount of contracts remaining to be executed on 751.56 362.95 capital account and not provided for (net of advances) All the above matters are subject to legal proceedings in the ordinary course of business. In the opinion of (ii) The group has other commitments, for purchases / sales orders which are issued after considering requirements the management, the legal proceedings, when ultimately concluded, will not have a material effect on the per operating cycle for purchase / sale of goods and services, employee benefits including union agreements in results of the operations or financial position of the group. normal course of business. The group does not have any long term contracts including derivative contracts for b. (i) The Company has been served with show cause notices regarding certain transactions as to which there will be any material foreseeable losses which have not been provided for. ` why additional customs / excise duty / service tax amounting to 18.58 Crores (Previous year: iii) Export obligation under advance license scheme on duty free import of specific raw materials, remaining ` 25.61 Crores) should not be levied. The Company has been advised that the contention of the outstanding is ` 619.36 crores (Previous year: ` 204.24 crores). department is not tenable and hence the show cause notice may not be sustainable.

312 Annual Report 2020-21 313 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 35. Related Party Transactions Year ended Year ended 35.1 Description of related parties under Ind AS- 24 “Related party disclosures“ March 31, 2021 March 31, 2020 Sale of goods to Ultimate holding entity Key management personnel (KMP) Enterprises over which KMP have significant influence - 0.25 ABR Family Trust Arun Bharat Ram - 0.25 Ashish Bharat Ram Rent paid Holding Company Kartik Bharat Ram Fellow Subsidiaries 6.60 6.63 KAMA Holdings Limited Tejpreet S Chopra Key management personnel 0.27 0.29 Lakshman Lakshminarayan Enterprises over which KMP have significant influence 0.27 0.27 Fellow subsidiaries # Vellayan Subbiah 7.14 7.19 KAMA Realty (Delhi) Limited Meenakshi Gopinath Reimbursement of expenses from Shri Educare Limited Pramod Gopaldas Gujarathi Holding Company 0.01 0.01 Bharti Gupta Ramola Fellow Subsidiaries 0.05 0.05 Post employment benefit plans trust Yash Gupta 0.06 0.06

Receiving of Services from : STATUTORY REPORTS SRF Limited Officers Provident Fund Trust Puneet Yadu Dalmia Enterprises over which KMP have significant influence 0.07 - SRF Employees Gratuity Trust 0.07 - SRF Officers Gratuity Trust Enterprises over which KMP have significant influence# Deposits received back from SRF Foundation Fellow Subsidiaries - 0.12 # Relatives of KMP Karm Farms LLP Enterprises over which KMP have significant influence - 0.04 Sushil Ramola Srishti Westend Greens Farms LLP - 0.16 Shanthi Narayan SRF Welfare Trust Contribution for expenditure on corporate social Murugappan Vellayan Subbiah BLP Industry AI Private Limited responsibility Enterprises over which KMP have significant influence 9.18 12.00 Relatives of KMP of Holding Company# 9.18 12.00 # Contribution to post employment benefit plans KMP of Holding Company Nirmala Kothari Post employment benefit plans trust 35.41 24.31 Ekta Maheshwari 35.41 24.31 # Enterprises over which relative of KMP has control Employee benefit obligations transferred to Murugappa & Sons Holding Company 0.02 0.03 FINANCIAL STATEMENTS #Only with whom the Company had transactions during the year Fellow Subsidiaries - 0.10 Enterprises over which KMP have significant influence * - 35.2 Transactions with related parties 0.02 0.13 ` Year ended Year ended * Amount in absolute 25,962 (Previous year : Nil) March 31, 2021 March 31, 2020 Purchase of property, plant & equipment and intangible Employee benefit obligations transferred from assets from Holding Company - 0.09 Holding company - 0.15 - 0.09 - 0.15 Equity dividend paid Sale of property, plant & equipment and intangible Holding Company 72.12 42.07 assets to Key management personnel 0.12 0.06 Holding company - 0.20 Relatives of KMP 0.07 0.04 - 0.20 KMP of Holding Company ^^ -

314 Annual Report 2020-21 315 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Year ended Year ended Foreign subsidiaries Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Relatives of KMP of Holding Company ^ ^ Contribution to provident fund 1.21 1.24 Enterprises over which relative of KMP has control ^^^ - Skill, development and Social Security Fund 3.10 0.78 72.31 42.17 ^Amount in absolute ` 240 (Previous year: 140) Pension fund 1.53 1.05 ^^Amount in absolute ` 168 (Previous year: Nil) 5.84 3.07 ^^^ Amount in absolute ` 24,618 (Previous year: Nil) The expenses incurred on account of the above defined contribution plans have been included in Note 27 35.3 Outstanding Balances: “Employee Benefits Expenses” under the head “Contribution to provident and other funds” Year ended Year ended (i) Superannuation fund March 31, 2021 March 31, 2020 The Company makes contributions to a Trust which in turn contributes to ICICI Prudential Life Insurance Commission payable Company Limited. Apart from being covered under the Gratuity Plan described below, the employees Key management personnel 12.84 10.22 of the Company also participate in a defined contribution superannuation plan maintained by the 12.84 10.22 STATUTORY REPORTS Company. The Company has no further obligations under the plan except making annual contributions Payable Post employment benefit plans trust 4.53 14.37 based on a specified percentage of each covered employee’s salary. From November 1, 2006, the 4.53 14.37 Company provided an option to the employees to receive the said benefit as cash compensation along Security deposits outstanding with salary in lieu of the superannuation benefit. Thus, no contribution is required to be made for the Fellow Subsidiaries 3.27 3.27 category of employees who opted to receive the benefit in cash. Key management personnel 0.13 0.13 Enterprises over which KMP have significant influence 0.14 0.14 (ii) Provident fund administered through Regional Provident Fund Commissioner 3.54 3.54 All employees are entitled to Provident Fund benefits as per the law. For certain category of employees the group administers the benefits through a recognized Provident Fund Trust. For other 35.4 Key management personnel compensation employees contributions are made to the Regional Provident Fund Commissioners. The Government Year ended Year ended mandates the annual yield to be provided to the employees on their corpus. This plan is considered March 31, 2021 March 31, 2020 as a Defined Contribution Plan. For the first category of employees (covered by the Trust), the group Short-term benefits* 26.21 22.11 has an obligation to make good for the shortfall, if any, between the yield on the investments of the Post-employment benefits 1.44 1.75 trust and the yield mandated by the Government and these are considered as Defined Benefit Plans Other long-term benefits 0.97 1.25 and are accounted for on the basis of an actuarial valuation.

28.62 25.11 FINANCIAL STATEMENTS * Includes sitting fees and commission paid/ payable to non executive directors 36.2 Defined benefit plans The group sponsors funded defined benefit plans for qualifying employees. The defined benefit plans are 36. Employee Benefits administered by separate funds which are legally separate from the group. These plans are: 36.1 Defined contribution plans: Amounts recognized in the statement of profit and loss are as under: (a) Gratuity Indian entities Year ended Year ended (b) Provident fund for certain category of employees administered through a recognized provident fund trust. March 31, 2021 March 31, 2020 (c) Legal Severance pay & Health care (Unfunded) as applicable with respect to foreign entities Superannuation fund (Refer to note (i) below) 0.61 0.65 Provident fund administered through Regional Provident Fund 14.02 12.58 (i) These plans typically expose the group to actuarial risks such as investment risk, Commissioner (Refer to note (ii) below) interest rate risk, longevity risk and salary risk. Employees’ State Insurance Corporation 0.43 0.58 Investment Risk National Pension Scheme 1.34 1.99 The probability or likelihood of occurrence of losses relative to the expected return on any 16.40 15.80 particular investment.

316 Annual Report 2020-21 317 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Salary Risk The cost of the defined benefit plans and other long term benefits are determined using actuarial valuations. The present value of defined benefit plan is calculated with the assumption of salary increase rate of plan An actuarial valuations involves making various assumptions that may differ from actual developments in participants in future. Deviation in rate of increase in salary in future for plan participants from the rate of the future. These includes the determination of the discount rate, future salary increases and mortality rate. increase in salary used to determine the present value of obligation will have a bearing on the plan’s liability. Due to these complexity involved in the valuation it is highly sensitive to the changes in these assumptions. All assumptions are reviewed at each reporting date. Interest Risk The plan exposes the group to the risk of fall in interest rates. A fall in interest rates will result in an The present value of defined benefit obligation and the related current service cost and past service cost increase in the ultimate cost of the providing the above benefits and will thus result an increase in value were measured using projected unit credit method. of the liability. (iii) Amounts recognized in statement of profit an loss in respect of these benefit plans areas Longevity Risk follows: The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of the plan participants both during and after the employment. An increase in the life expectancy Indian entities Year ended Year ended of plan participants will increase the plan’s liability. March 31, 2021 March 31, 2020 Gratuity Provident Fund Gratuity Provident Fund (ii) The principal assumption used for the purpose of the actuarial valuation were as follows:

Current Service cost 8.03 6.75 7.19 6.07 STATUTORY REPORTS Indian entities As at March 31, 2021 As at March 31, 2020 Interest expenses (net of expected 1.07 - 0.64 - Gratuity Provident Fund Gratuity Provident Fund return on plan assets) Discount Rate 6.69% 6.69% 6.77% 6.77% 9.10 6.75 7.83 6.07 Expected statutory interest rate - 8.50% - 8.50% Salary increase 7.00% - 7.00% - Retirement Age (years) 58.00 58.00 58.00 58.00 Foreign subsidiaries Legal Severance Pay (unfunded) Mortality Rates IALM IALM IALM IALM Year ended Year ended (2012-14) (2012-14) (2012-14) (2012-14) March 31, 2021 March 31, 2020 Withdrawal rate Current/past Service cost* 0.93 15.27 Upto 30 years 20.00% 20.00% 20.00% 20.00% Net interest expenses 0.06 0.40 31 to 44 years 7.00% 7.00% 7.00% 7.00% 0.99 15.67 Above 44 years 8.00% 8.00% 8.00% 8.00% *The above includes impact of discontinued operations.

Foreign subsidiaries Legal Severance Pay (unfunded) FINANCIAL STATEMENTS The current service cost and the net interest expenses for the year are included in Note 27 “Employee As at As at Benefits Expenses” under the head Contribution to provident and other funds March 31, 2021 March 31, 2020 Discount Rate 2.70% 1.74% (iv) Amount recognized in other comprehensive income: Salary increase 6.25% 6.00% In service mortality TMO TMO Indian entities Gratuity 2017 2017 Year ended Year ended Retirement Age 55 55 March 31, 2021 March 31, 2020 Withdrawal Rate Actuarial (gain)/losses on plan assets (5.84) (0.41) Actuarial (gain)/losses arising from changes in financial 0.49 4.54 - up to 20 years 15% 20% assumptions - 21-30 15% 16% Actuarial (gain)/losses arising from changes in 2.94 4.06 - 31-40 8% 10% experience adjustments - 41-50 3% 3% (2.41) 8.19 - 51 onwards 2% 2%

318 Annual Report 2020-21 319 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Foreign subsidiaries Legal Severance Pay (unfunded) Foreign subsidiaries Legal Severance Pay (unfunded) Year ended Year ended As at As at March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Actuarial (gain)/losses arising from changes in financial (0.37) 0.71 assumptions Opening defined benefit obligation 3.99 9.72 Actuarial (gain)/losses arising from changes in 0.10 (0.65) Current Service Cost 0.93 15.27 experience adjustments and demographic assumption Interest Cost 0.06 0.40 (0.27) 0.06 Actuarial (gain)/losses arising from changes in financial (0.37) 0.71 assumptions (v) The amount included in consolidated balance sheet arising from the entity’s obligation in respect of its defined benefit plans is as follows: Actuarial (gain)/losses arising from changes in 0.10 (0.65) experience adjustments and demographic assumption Indian entities As at As at March 31, 2021 March 31, 2020 Exchange difference on foreign plans 0.07 0.37 Gratuity Provident Fund Gratuity Provident Fund Benefits paid/Settled* (0.64) (21.83)

Present value of funded defined 98.72 158.91 85.78 137.01 STATUTORY REPORTS Closing defined benefit obligation 4.14 3.99 benefit obligation Fair value of plan assets 94.20 157.71 69.96 136.55 *Benefits paid to employees due to discontinuation of business Surplus/ (Deficit) (4.52) (1.20) (15.82) (0.46) Effect of asset ceiling, if any - - - - (vii) Movements in the fair value of plan assets are as follows: Net assets / (liability) (4.52) (1.20) (15.82) (0.46) Indian entities As at As at March 31, 2021 March 31, 2020 Foreign subsidiaries Legal Severance Pay (unfunded) As at As at Gratuity Provident Fund Gratuity Provident Fund March 31, 2021 March 31, 2020 Opening fair value of plan assets 69.96 136.55 62.36 123.07 Present value of defined benefit obligation 4.14 3.99 Return on plan assets 10.58 11.18 5.28 10.14 Fair value of plan assets - - (excluding amounts included in net Net asset / (liability) (4.14) (3.99) interest expenses) (vi) Movements in the present value of defined benefit obligation are as follows: Contributions from employer 17.99 6.75 8.30 6.07 Indian entities As at As at Contributions from plan - 10.83 - 10.00 March 31, 2021 March 31, 2020 participants FINANCIAL STATEMENTS Gratuity Provident Fund Gratuity Provident Fund Benefits paid (4.33) (8.73) (5.04) (13.88) Opening defined benefit obligation 85.78 137.01 70.66 121.17 Settlement/ transfer in - 1.13 (0.94) 1.15 Current service cost 8.03 6.75 7.19 6.07 Interest cost 5.81 11.92 5.41 10.32 Closing fair value of plan assets 94.20 157.71 69.96 136.55 Actuarial (gain)/losses arising from 0.49 - 4.54 - changes in financial assumptions Gratuity: Actuarial (gain)/losses arising from 2.94 - 4.06 - Plan assets comprises primarily of investment in HDFC Group Unit Linked Plan fund. The average duration changes in experience adjustments of the defined benefit obligation is 9.14 years (Previous year: 9.08 years). The Company expects to make Benefits paid (4.33) (8.73) (5.04) (13.88) a contribution of ` 8.76 Crores (Previous year: ` 8.68 Crores) to the defined benefit plans during the next Contribution by plan participants / - 10.83 - 10.00 financial year. employees Settlement/ transfer in - 1.13 (1.04) 3.33 Provident fund: Closing defined benefit 98.72 158.91 85.78 137.01 The plan assets have been primarily invested in government securities and corporate bonds. obligation

320 Annual Report 2020-21 321 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW (viii) Sensitivity Analysis 37. Employee Share Based Payments Significant actuarial assumptions for the determination of the defined obligation are discount rateand The Company has an Employee Share Purchase Scheme (SRF Long Term Share Based Incentive Plan) expected salary increase. The sensitivity analysis below have been determined based on reasonably to provide equity settled share based payments to certain employees. The expenses related to the grant possible changes of the respective assumptions occurring at the end of reporting period, while holding all of shares under the Scheme are accounted for on the basis of fair value of the share on the grant date other assumptions constant. (which is the market price of the Company’s share on the date of grant less exercise price). The fair value so determined is expensed on a straight line basis over the remaining tenure over which the employees Indian entities Year ended Year ended renders their services. March 31, 2021 March 31, 2020 0.50% 0.50% 0.50% 0.50% There were no equity shares granted during the current and previous year. Based on the grants made in increase decrease increase decrease earlier years, the Company has recognised ` 0.96 crore as share based payment expense during the current ` Sensitivity analysis of Gratuity year (Previous year 0.98 crores). Discount rate (3.00) 3.20 (2.62) 2.79 38. Segment Reporting Expected salary growth 3.17 (3.01) 2.72 (2.63) Based on the guiding principles laid down in Indian Accounting Standard (Ind AS) - 108 “Segment Reporting”, the Managing Director of the Group is the Chief Operating Decision Maker (CODM) and for the purposes Sensitivity analysis of (0.01) 0.01 (0.01) 0.01 of resource allocation and assessment of segment performance, the business of the Group is segregated in STATUTORY REPORTS Provident Fund the segments below: • Technical Textiles business: includes nylon tyre cord fabric, belting fabric, polyester tyre cord fabric Foreign subsidiaries Year ended Year ended and industrial yarns and its research and development March 31, 2021 March 31, 2020 • Chemicals business: includes refrigerant gases, industrial chemicals, speciality chemicals, 1.00% 1.00% 1.00% 1.00% fluorochemicals & allied products and its research and development. increase decrease increase decrease Sensitivity analysis of Legal • Packaging Film business: includes polyester films and polypropylene films. Severance Pay • Others: include coated fabric, laminated fabric and other ancillary activities Discount rate (0.44) 0.52 (0.34) 0.40 Segment revenue, results and capital employed include the respective amounts identifiable to each of the Expected salary growth 0.48 (0.42) 0.37 (0.32) segments. Other unallocable expenditure includes expenses incurred on common services provided to the segments, which are not directly identifiable. Sensitivity due to mortality and withdrawals are insignificant and hence ignored In addition to the significant accounting policies applicable to the business segments as set out in note 1 36.3 Other long-term employee benefit above, the accounting policies in relation to segment accounting are as under: Amounts recognised in the statement of profit and loss in note 27 “Employee benefits expenses” under the FINANCIAL STATEMENTS head “Salaries and wages, including bonus” a) Segment revenue and expenses Joint revenue and expenses of segments are allocated amongst them on a reasonable basis. All other Year ended Year ended segment revenue and expenses are directly attributable to the segments. These amounts relate to March 31, 2021 March 31, 2020 continuing operations, unless otherwise stated. (Refer to note 42 with regard to information in relation Long term retention pay (refer to note (i) below) - 0.14 to discontinued operations). Compensated absences 11.57 11.26 11.57 11.40 b) Segment assets and liabilities Segment assets include all operating assets used by a segment and consist principally of operating (i) Long Term Retention Pay cash, trade receivables, inventories and property plant and equipment and intangible assets, net of The group has a Long Term Retention Pay Plan which covers employees selected on the basis of allowances and provisions, which are reported as direct offsets in the consolidated balance sheet. their current band and their long term value to the Company. The incentive is payable in three year Segment liabilities include all operating liabilities and consist principally of creditors and accrued blocks subject to achievement of certain performance ratings. The Company also has a scheme for liabilities and do not include deferred income taxes. While most of the assets / liabilities can be directly talent retention of certain identified employees under which an incentive is payable over a period attributed to individual segments, the carrying amount of certain assets / liabilities pertaining to two of three years. or more segments are allocated to the segments on a reasonable basis.

322 Annual Report 2020-21 323 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW A. Information about operating business segments Year ended Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 c) Packaging films business (PFB) 553.34 1,098.49 Segment revenue d) Others 1.92 11.67 a) Technical textiles business (TTB) - External sales 1,231.41 1,352.62 e) Unallocated 3.13 6.53 - Inter-segment sales 8.70 4.93 Total 1,254.95 1,683.14 Total 1,240.11 1,357.55 b) Chemicals business (CB) Depreciation and amortisation - External sales 3,644.89 2,974.96 a) Technical textiles business (TTB) 35.41 34.69 - Inter-segment sales - - Total 3,644.89 2,974.96 b) Chemicals business (CB) 273.09 245.33 c) Packaging films business (PFB) c) Packaging films business (PFB) 123.61 86.26 - External sales 3,291.72 2,603.58 d) Others 8.06 8.49

- Inter-segment sales - 0.41 STATUTORY REPORTS e) Unallocated 12.91 13.84 Total 3,291.72 2,603.99 d) Others Total 453.08 388.61 - External sales 232.02 278.26 - Inter-segment sales - 0.08 Segment assets and liabilities Total 232.02 278.34 As at As at March 31, 2021 March 31, 2020 Total segment revenue 8,408.74 7,214.84 Segment assets Less: Inter segment revenue 8.70 5.43 a) Technical textiles business (TTB) 1,582.16 1,385.06 Revenue from operations 8,400.04 7,209.41 Add: Unallocable income 66.35 49.05 b) Chemicals business (CB) 5,741.97 5,247.50 Total revenue 8,466.39 7,258.46 c) Packaging films business (PFB) 4,543.33 3,582.77 Segment profits d) Others 171.97 187.37 Profit before interest and tax from each segment Total 12,039.43 10,402.70 a) Technical textiles business (TTB) 176.90 151.49 b) Chemicals business (CB) 728.14 511.48 Unallocable assets 889.98 462.22 FINANCIAL STATEMENTS c) Packaging films business (PFB) 897.87 555.62 Assets classified as held for sale - 11.84 d) Others 25.59 31.77 Total assets 12,929.41 10,876.76 Total segment results 1,828.50 1,250.36 Less: i) Interest and finance charges 133.95 200.68 Segment liabilities Less: ii) Other unallocable expenses net of income 81.90 134.98 Profit before tax from continuing operations 1,612.65 914.70 a) Technical textiles business (TTB) 337.14 303.71 (Loss) / Profit before tax from discontinuing operations (2.73) 155.85 b) Chemicals business (CB) 710.22 515.33 (Refer note 42) c) Packaging films business (PFB) 1,117.90 664.05 Total profit before tax 1,609.92 1,070.55 d) Others 32.85 43.68

Capital expenditure Total 2,198.11 1,526.77 a) Technical textiles business (TTB) 77.90 63.18 Unallocable liabilities 3,874.88 4,416.67 b) Chemicals business (CB) 618.66 503.27 Total liabilities 6,072.99 5,943.44

324 Annual Report 2020-21 325 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW B. Information about geographical business segments 39. Earnings Per Share (EPS) Year ended Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 Revenue from operations Profit attributable to equity holders of the group used in - India 3,640.40 3,654.63 calculating basic earning per share and diluted earning per share: - South Africa 475.37 363.06 - From continuing operations 1,198.25 915.90 - Singapore 5.47 13.04 - Germany 476.58 525.59 - From discontinued operations (0.31) 103.19 - USA 576.20 426.94 - From continuing and discontinued operations 1,197.94 1,019.09 - Thailand 188.89 140.74 Weighted average number of equity shares of the company 5,82,83,078 5,74,80,500 - Hungary 13.61 - used in calculating basic earning per share and diluted earning - Switzerland 687.75 425.38 per share (nos.) - Belgium 635.51 293.59 Basic and diluted earnings per share of face value `10 each - Others 1,700.26 1,366.44 - From continuing operations (`) 205.59 159.34

8,400.04 7,209.41 STATUTORY REPORTS - From discontinued operations (`) (0.05) 17.95 ` Year ended Year ended - From continuing and discontinued operations ( ) 205.54 177.29 March 31, 2021 March 31, 2020 Non current segment assets 40. Financial Instruments and Risk Management 40.1 Capital Management Within India 6,505.08 6,022.14 The group manages its capital to ensure that it will be able to continue as a going concern and provide Outside India 2,338.23 1,835.25 reasonable return to the shareholders by maintaining a reasonable balance between debt and equity. 8,843.31 7,857.39 The capital structure of the group consists of net debt (borrowings net of cash and cash equivalents, deposits accounts with maturity beyond three months upto twelve months and current investments) Non current segment assets includes property, plant and equipment, right of use assets, capital work in and total equity of the group. The group is not subject to any externally imposed capital requirements. progress, intangible assets, Goodwill and other non current assets. The group’s management reviews the capital structure of the group on periodic basis. As part of its review, the management considers the cost of capital and risk associated with each class of capital. The group No single customer contributed 10% or more to the Group’s revenue for both 2020-21 and 2019-20 also evaluates its gearing measures using Debt Equity Ratio to arrive at an appropriate level of debt and Revenue from major products Year ended Year ended accordingly evolves its capital structure. March 31, 2021 March 31, 2020 The following table provides the details of the debt and equity at the end of the reporting periods: a) Technical textiles business (TTB) FINANCIAL STATEMENTS Nylon tyre cord fabric/ Polyester tyre cord fabric / Belting fabric 1,122.94 1,178.73 As at As at Synthetic filament yarn including Industrial yarn /Twine 97.21 162.86 March 31, 2021 March 31, 2020 Waste/others 0.62 - Debt 3,468.58 4,134.51 b) Chemicals business (CB) Less: Speciality chemicals 2,389.39 1,623.83 Fluorochemicals, Refrigerant Gases and allied products 893.98 929.08 Cash and cash equivalents 138.29 116.44 Industrial chemicals 311.00 344.89 Deposits accounts with maturity beyond three months upto 135.19 0.10 Waste/others 0.74 1.31 twelve months c) Packaging films business (PFB) Current investments 412.52 198.50 Packaging films 3,253.26 2,557.09 Net debt 2,782.58 3,819.47 d) Others Coated fabric, laminated fabric and other ancillary activities 226.26 264.33 Total equity 6,856.42 4,933.32 8,295.40 7,062.12 Net debt to equity ratio 0.41 0.77

326 Annual Report 2020-21 327 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW 40.2 Financial instruments by category The following methods / assumptions were used to estimate the fair values: Financial assets Level of Notes Carrying value as at Fair value as at (a) Fair valuation of financial assets and liabilities with short term maturities is considered as approximate hierarchy As at As at As at As at to respective carrying amount due to the short term maturities of these instruments. March 31, March 31, March 31, March 31, (b) Fair valuation of non-current financial assets has been disclosed to be same as carrying value as there 2021 2020 2021 2020 is no significant difference between carrying value and fair value. Measured at amortised cost Trade Receivables a 1,274.56 891.07 1,274.56 891.07 (c) Fair value of other long-term borrowings is estimated by discounting future cash flows using current rates (applicable to instruments with similar terms, currency, credit risk and remaining maturities) to Cash and cash equivalents a 138.29 116.44 138.29 116.44 discount the future payouts. Bank balances other than a 143.71 9.03 143.71 9.03 above (d) The fair value is determined by using the valuation model/technique with observable/non-observable inputs and assumptions. Loans a, b 57.65 69.04 57.65 69.04 Other financial assets a, b 179.60 186.16 179.60 186.16 There are no transfers between Level 1, Level 2 and Level 3 during the Year ended March 31, 2021 1,793.81 1,271.74 1,793.81 1,271.74 and March 31, 2020

Measured at Fair value Level 1: STATUTORY REPORTS through profit and loss Quoted prices in the active market: This level of hierarchy includes financial assets that are measured by Investments in mutual funds 2 d 412.52 198.50 412.52 198.50 reference to quoted prices in the active market. and bonds/debentures Level 2: Derivative instruments 2 d 4.39 0.08 4.39 0.08 Valuation techniques with significant observable inputs: This level of hierarchy includes items measured 416.91 198.58 416.91 198.58 using inputs other than quoted prices included within Level 1 that are observable for such items, either Measured at Fair directly or indirectly. This level of hierarchy consists of over the counter (OTC) derivative contracts, open value through Other ended mutual funds and bonds/debentures comprehensive income Level 3: Investments in unquoted 3 d 4.16 4.16 4.16 4.16 Valuation techniques with significant unobservable inputs: This level of hierarchy includes items measured equity instruments using inputs that are not based on observable market data (unobservable inputs). Fair value is determined Derivative instruments 2 d 86.55 - 86.55 - in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based on available market data. 90.71 4.16 90.71 4.16 The main item in this category are unquoted equity instruments Measured at amortised cost Borrowings a, c 2,930.71 3,267.07 2,930.71 3,267.07 The fair value of the financial instruments are determined at the amount that would be received to sell an asset in an orderly transaction between market participants. The following methods and assumptions were FINANCIAL STATEMENTS Trade payables a 1,585.19 1,111.69 1,585.19 1,111.69 used to estimate the fair values: Other financial liabilities a 892.54 1,076.78 892.54 1,076.78 (i) Investments in mutual funds and bonds/debentures: Fair value is determined by reference to quotes 5,408.44 5,455.54 5,408.44 5,455.54 from the financial institutions. Measured at Fair value through profit and loss (ii) Derivative contracts: The group has entered into various foreign currency contracts and interest Derivative instruments 2 d - 2.58 - 2.58 rate swaps contracts to manage its exposure to fluctuations in foreign exchange rates and interest rate respectively. These financial exposures are managed in accordance with the group’s risk - 2.58 - 2.58 management policies and procedures. Fair value of derivative financial instruments are determined Measured at Fair using valuation techniques based on information derived from observable market data, i.e., mark value through Other to market values determined by the authorized dealers banks and forward exchange rates at the comprehensive income balance sheet date. Derivative instruments 2 d 0.54 68.04 0.54 68.04 (iii) Unquoted equity investments: Fair value is determined based of the recoverable value as per agreement 0.54 68.04 0.54 68.04 with the investee.

328 Annual Report 2020-21 329 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Reconciliation of Level 3 fair value measurements Unlisted equity instruments with the Board approved policy, the Group manages the net exposure on a rolling 12 month basis and As at March 31, 2019 0.11 for exposures between 12 to 36 months, hedging is done based on specific exposure. The information Purchases of investment 4.05 is monitored by the Audit committee and the Board of Directors on a quarterly basis. This foreign As at March 31, 2020 4.16 currency risk exposure of the group are mainly in U.S. Dollar (USD), Euro (EUR), Japanese Yen (JPY) Purchases of investment - and British pound sterling (GBP). The group’s exposure to foreign currency changes for all other As at March 31, 2021 4.16 currencies is not material. Sensitivity of the fair value measurement to changes in unobservable inputs for financial instruments in Level 3 level of hierarchy is insignificant. The carrying amounts of the group’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting periods expressed in `are as follows: 40.3 Financial Risk Management Assets Liabilities The group is exposed to various financial risks arising from its underlying operations and finance activities. As at As at As at As at The group is primarily exposed to market risk (i.e. interest rate and foreign currency risk) and to credit risk March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 and liquidity risk. The Group’s Corporate Treasury function plays the role of monitoring financial risk arising from business operations and financing activities. USD 824.27 280.30 1,946.21 1,576.55 STATUTORY REPORTS EUR 257.67 114.34 1,124.86 813.85 Financial risk management within the group is governed by policies and guidelines approved by the senior management and the Board of Directors. These policies and guidelines cover interest rate risk, foreign JPY - - 11.28 6.87 currency risk, credit risk and liquidity risk. Group policies and guidelines also cover areas such as cash GBP 10.96 4.13 13.12 0.26 management, investment of excess funds and the raising of short and long-term debt. Compliance with the policies and guidelines is managed by the Corporate Treasury function within the group. Review of the Foreign currency sensitivity analysis financial risk is done on a monthly basis by the Managing Director and on a quarterly basis by the Board of The group is mainly exposed to changes in USD, EURO, JPY and GBP exchange rates. Directors. The objective of financial risk management is to contain, where deemed appropriate, exposures on net basis to the various types of financial risks mentioned above in order to limit any negative impact on The following table details the group’s sensitivity to a 1% increase and decrease in the ` against the the group’s results and financial position. relevant foreign currency. The sensitivity analysis includes only outstanding foreign currency denominated In accordance with its financial risk management policies, the group manages its market risk exposures monetary items as tabulated above and adjusts their translation at the period end for 1% change in foreign by using specific type of financial instruments duly approved by the Board of Directors as and when currency rates. A positive number below indicates an increase in profit before tax or vice-versa. deemed appropriate. It is the group’s policy and practice neither to enter into derivative transactions Year ended March 31, 2021 Year ended March 31, 2020 for speculative purpose, nor for any purpose unrelated to the underlying business. The Board of ` strengthens ` weakens ` strengthens ` weakens Directors / Managing Director reviews and approves policies for managing each of the above risks. by 1% by 1% by 1% by 1% FINANCIAL STATEMENTS Impact on profit / (loss)* 40.3.1 Market Risk USD 5.73 (5.73) 9.18 (9.18) Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate EUR 3.60 (3.60) 1.21 (1.21) because of changes in market prices. Market risk comprises of interest rate risk and foreign currency risk. JPY 0.11 (0.11) 0.07 (0.07) Financial instruments affected by market risk includes loans and borrowings, deposits, investments and GBP 0.02 (0.02) (0.04) 0.04 derivative financial instruments. The group enters into derivative contracts as approved by the Board to manage its exposure to interest rate risk and foreign currency risk. *Includes sensitivity on long-term foreign currency monetary items on which Para D13 AA of Ind AS 101. Accordingly, the exchange loss/ (gain) arising on long term foreign currency monetary items relating to acquisition of depreciable A. Foreign Currency Risk Management assets will be added to/deducted from the cost of such assets/capital work-in-progress and will be depreciated over the Foreign currency risk also known as Exchange Currency Risk is the risk that the fair value or future cash balance useful life of assets. flows of an exposure will fluctuate because of changes in foreign exchange rates. Foreign currency risk Impact on equity (Other in the group is attributable to group’s operating activities, investing activities and financing activities. comprehensive income) In the operating activities, the group’s exchange rate risk primarily arises when revenue / costs are USD 5.49 (5.49) 3.78 (3.78) generated in a currency that is different from the reporting currency (transaction risk). In compliance EUR 5.08 (5.08) 5.78 (5.78)

330 Annual Report 2020-21 331 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Foreign exchange derivative and Non Derivative financial instruments Year ended March 31, 2021 Year ended March 31, 2020 The group uses derivative as well as non derivative financial instruments for hedging financial risks Functional Functional Functional Functional that arise from its commercial business or financing activities. The group’s Corporate Treasury team currency currency currency currency manages its foreign currency risk by hedging transactions that are expected to occur within 1 to strengthens weakens strengthens weakens 36 months for hedges of forecasted sales, purchases, loans and liabilities and capital expenditures. by 1% by 1% by 1% by 1% When a derivative is entered into for the purpose of being a hedge, the group negotiates the terms Impact on profit / (loss) of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions for the year the derivatives cover the period of exposure from the point the cash flows of the transactions are USD 1.76 (1.76) 1.38 (1.38) forecasted up to the point of settlement of the resulting receivable or payable that is denominated EUR 0.34 (0.34) 0.50 (0.50) in the foreign currency. All identified exposures are managed as per the policy duly approved by the Impact on equity Board of Directors. USD 36.47 (36.47) 19.60 (19.60) The following table details the foreign currency derivative contracts outstanding at the end of the EUR 2.05 (2.05) 3.31 (3.31)

reporting period: STATUTORY REPORTS B. Interest Rate Risk Management Outstanding Maturity Interest rate risk arises from movements in interest rates which could have effects on the group’s net Contracts* income or financial position. Changes in interest rates may cause variations in interest income and No of Deals Contract Value of Up to 12 months More than 12 months expenses resulting from interest-bearing assets and liabilities. The group’s exposure to the risk of Foreign Currency Nominal Amount* Nominal Amount* (In Millions) (` Crores) (` Crores) changes in market interest rates relates primarily to the group’s long-term debt obligations with floating interest rates. As at As at As at As at As at As at As at As at March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, 2021 2020 2021 2020 2021 2020 2021 2020 The group manages its interest rate risk by having a portfolio of fixed and variable rate loans and borrowings. The group enters into interest rate swaps, in which it agrees to exchange, at specified USD/INR Sell 264 196 513.25 254.56 2,029.40 1,243.67 1,998.63 680.78 intervals, the difference between fixed and variable rate interest amounts calculated by reference to an forward agreed principal amount outstanding at the time of inception of the swap. Out of the total long term EUR/INR sell 17 27 40.50 38.00 181.53 172.65 202.77 153.78 borrowings, the amount of fixed interest loan is ` 898.62 Crores and floating interest loan is ` 1,531.65 forward Crores (Previous year : Fixed interest loan ` 995.04 Crores and Floating interest loan ` 2,096.36 Crores) EUR/USD Sell - 4 - 6.00 - 50.51 - - forward The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that USD/THB Buy 20 - 18.48 - 129.98 - - - portion of loans and borrowings affected. With all other variables held constant, the group’s profit before FINANCIAL STATEMENTS forward tax is affected through the impact on floating rate long term borrowings, as follows:

EUR/USD Buy 20 9 15.67 15.14 135.55 110.33 - - Year ended March 31, 2021 Year ended March 31, 2020 forward ` loans interest Foreign ` loans interest Foreign USD/ZAR Buy - 1 - 0.40 - 2.51 - - rate decreases currency loans rate decreases currency loans forward by 0.50% interest rate by 0.50% interest rate USD/ZAR Sell - 1 - 0.40 - 2.60 - - decreases decreases forward by 0.15% by 0.15% * Computed using average forward contract rates Increase in profit before 2.85 1.44 1.48 2.70 tax by The following table details the group’s sensitivity to a 1% increase and decrease in the ` against the relevant foreign currency. The sensitivity analysis includes only outstanding forward exchange contracts as tabulated above and adjusts In case of increase in interest rate by above mentioned percentage, there would be a comparable negative their translation at the period end for 1% change in forward rates. A positive number below indicates an increase in profit impact on the profit before tax as mentioned above. before tax or vice-versa.

332 Annual Report 2020-21 333 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Managing interest rate benchmark reform and associated risks C. Hedge accounting A fundamental reform of major interest rate benchmarks is being undertaken globally, including the Cash flow hedges replacement of some interbank offered rates (IBORs) with alternative nearly risk-free rates (referred to The amounts at the reporting date relating to the item designed as hedge items are as follows: as ‘IBOR reform’). The Group has exposures to USD-LIBOR and EUR-IBOR on its financial instruments Hedging As at Year ended As at Year ended that will be replaced or reformed as part of these market-wide initiatives. There is uncertainty over the instruments March 31, 2021 March 31, March 31, 2020 March 31, timing and the methods of transition. The management monitors the Group’s transition to alternative 2021 2020 rates. The management evaluates the extent to which contracts reference IBOR cash flows, whether such Nominal Carrying Line item where Change in Nominal Carrying Line item Change in amount amount the hedging the value of amount amount where the the value of contracts will need to be amended as a result of IBOR reform and how to manage communication about (` Crores) Assets / instrument is the hedging (` Crores) Assets / hedging the hedging IBOR reform with counterparties. (liabilities) included instrument (liabilities) instrument is instrument (` Crores) recognised (` Crores) included recognised in OCI (` in OCI The Group holds interest rate swaps for risk management purposes which are designated in cash flow hedging Crores) (` Crores) relationships. The interest rate swaps have floating legs that are linked to USD LIBOR. Hedging relationships Foreign 4677.87 85.54 Other 151.16 2,224.80 (65.62) Other (88.50) impacted by IBOR reform may experience ineffectiveness attributable to market participants’ expectations exchange financial financial contracts assets / assets / of when the shift from the existing IBOR benchmark rate to an alternative benchmark interest rate will liabilities liabilities

occur. This transition may occur at different times for the hedged item and hedging instrument, which may (current and (current and STATUTORY REPORTS lead to hedge ineffectiveness. non - current) non - current) Foreign currency 1055.91 (1,055.91) Non-current/ (1.27) 955.86 (955.86) Non-current (65.90) denominated current borrowing Some of the Group’s existing USD LIBOR cash flow hedging relationships extend beyond the anticipated loans borrowings cessation date for USD LIBOR. The Group will apply the amendments to Ind AS 109 issued via 1.01 Other 1.01 - Other Companies (Indian Accounting Standards) Amendment Rules, 2020 issued by the Ministry of Corporate financial financial assets assets Affairs on July 24, 2020, to those hedging relationships directly affected by IBOR reform, as applicable. (current and (current non - current) and non - Interest rate current) Refer below for details regarding interest rate swaps. 227.17 113.70 (6.14) swap contacts (0.54) Other 1.88 (2.42) Other Interest Rate Swap Contracts financial financial liabilities liabilities Under interest rate swap (IRS) contracts, the group agrees to exchange the difference between fixed and (current and (current floating rate interest amounts calculated on the agreed notional principal amounts. Such contracts enables non - current) and non - the group to mitigate the risk of changing interest rates. current) Fair Value hedges The following table details the IRS contracts outstanding at the end of the reporting period: The amounts at the reporting date relating to the item designed as hedge items are as follows: FINANCIAL STATEMENTS Outstanding Maturity Hedging As at Year ended As at Year ended Contracts No of Deals Contract Value of Up to 12 months More than 12 months instruments March 31, 2021 March 31, March 31, 2020 March 31, Foreign Currency Nominal Amount* Nominal Amount* 2021 2020 ` ` (In Millions) ( Crores) ( Crores) Nominal Carrying Line item Change in Nominal Carrying Line item Change in As at As at As at As at As at As at As at As at amount amount where the the value of amount amount where the the value of March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31, (` Crores) Assets / hedging the hedging (` Crores) Assets / hedging the hedging 2021 2020 2021 2020 2021 2020 2021 2020 (liabilities) instrument is instrument (liabilities) instrument instrument IRS 4 3 31.05 15.05 85.49 26.71 141.68 86.99 (` Crores) included recognised in (` Crores) is included recognised in Contracts* consolidated consolidated statement of statement of Profit and loss Profit and loss Each of the above trades are in the nature of cash flow hedges and are effective hedges. The mark (` Crores) to market on these trades is therefore routed through Cash flow Hedge Reserve. The interest rate Foreign - 4.39 Other financial 6.89 192.01 (2.50) Other financial (3.13) swap and the interest payments on the loan are paid simultaneously and are charged to statement of exchange assets / assets / profit and loss. contracts liabilities liabilities (current and (Current and *Sensitivity on the above IRS contracts in respect of interest rate exposure is insignificant non - current) Non - current)

334 Annual Report 2020-21 335 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Movement of cash flow hedging reserve and cost of hedging reserve : With regards to all financial assets with contractual cash flows other than trade receivable, management Particulars Cash flow hedging reserve Cost of hedging reserve believes these to be high quality assets with negligible credit risk. The management believes that the As at As at As at As at parties, from which these financial assets are recoverable, have strong capacity to meet the obligations March 31, March 31, March 31, March 31, and where the risk of default is negligible and accordingly no provision for excepted credit loss has been 2021 2020 2021 2020 provided on these financial assets other than as detailed below. Opening Balance (78.56) 24.39 - - Changes in the spot element of 8.59 - - - Loss allowance for the following financial assets have been recognised by the group: the forward contracts which is Note No. As at As at designated as hedging instruments March 31, 2021 March 31, 2020 for time period related hedge Changes in the forward element - - 7.74 - Loans - current 8 2.74 2.74 of the forward contracts where Trade receivables 13 5.03 3.61 changes in spot element of 7.77 6.35 forward contract is designated

as hedging instruments for time Movement of loss allowance : STATUTORY REPORTS period related hedges Changes in fair value of forward 130.71 (88.49) - - Loans (current Trade contracts designated as hedging and non current) receivables instruments As at March 31, 2019 2.81 2.49 Changes in fair value of interest 2.89 (6.14) - - Provided during the year 0.17 1.88 rate swaps Reversed/ utilised during the year (0.24) (0.76) Amount reclassified to profit or loss 3.12 - (4.28) (Foreign exchange (gain) / loss) As at March 31, 2020 2.74 3.61 Amount arising from remeasurement (12.98) (65.90) - - Provided during the year 0.24 11.70 of financial liability Reversed/ utilised during the year (0.24) (10.28) Taxes related to above (46.24) 57.58 (0.33) As at March 31, 2021 2.74 5.03 Closing Balance 7.53 (78.56) 3.13 -

Other than financial assets mentioned above, none of the group’s financial assets are impaired, as there are 40.3.2 Credit Risk Management no indications that defaults in payments obligation would occur. Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer

contract, leading to a financial loss. The group is exposed to credit risk from its operating activities (primarily FINANCIAL STATEMENTS 40.3.3 Liquidity Risk Management trade receivables, loans and other financial assets) and from its financing activities, including deposits with Liquidity risk is the risk of non-availability of financial facilities available to the group to meet its financial banks and financial institutions, foreign exchange transactions and other financial instruments. obligations. The group’s objective is to maintain a balance between continuity of funding and flexibility Credit risk from balances with banks and financial institutions is managed by the group’s treasury department through the use of money market instruments, bank overdrafts, bank loans, debentures and other in accordance with the group’s policy. Investments of surplus funds are made only with counterparties who types of facilities. The liquidity management is governed by the Board approved liquidity management meet the parameters specified in Investment Policy of the groups. The investment policy is reviewed by the policy. Any deviation from the policy has to be approved by the Treasury Management comprising of group’s Board of Directors on an annual basis and if required, the same may be updated during the year. Managing Director, Chief Financial Officer and Treasury Head. The group assesses the concentration of The investment policy specifies the limits of investment in various categories of products so as the minimize risk with respect to refinancing its debt, guarantee given and funding of its capital expenditure according the concentration of risks and therefore mitigate financial loss due to counterparty’s potential failure. to needs of the future. The group manages its liquidity by holding appropriate volumes of liquid assets which are available for its disposal on T +1 basis and by maintaining open credit lines with banks / Expected credit loss on financial assets: financial institutions. To manage credit risk for trade receivables, the group establishes credit approvals and credit limits, periodically assesses the financial reliability of customers, taking into account the financial conditions, The table below analyse the group’s financial liabilities into relevant maturity profiles based on their economic trends, analysis of historical bad debts and aging of such receivables. contractual maturities:

336 Annual Report 2020-21 337 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Less than More than More than Total 42. Non - current assets held for sale and Discontinued operation 1 year 1 year and 5 years A. Engineering Plastics Business upto 5 years (a) Description On May 11, 2019, the Company entered into a business transfer agreement for sale of its Engineering As at March 31, 2021 Plastics Business, which has been divested with effect from August 1, 2019. The business was reported Borrowings* 1,477.41 1,806.11 214.67 3,498.19 under “Others segment” in accordance with the requirements of Ind AS 108 – “Operating Segments” in the Lease Liabilities** 19.30 53.85 53.68 126.83 financial statements till the year prior to the previous year. The relevant financial information of the said Trade payables 1,585.19 - - 1,585.19 business has been disclosed under discontinued operations in terms of Ind AS 105- “Non-current assets Other financial liabilities 432.29 0.54 - 432.83 held for sale and discontinued operations” as below: 3,514.19 1,860.50 268.35 5,643.04 (b) Financial performance and cash flow information Less than More than More than Total Sl. no. Particulars Year ended Year ended 1 year 1 year and 5 years March 31, 2021 March 31, 2020 upto 5 years I (a) Sale of Products - 74.87

As at March 31, 2020 (b) Other operating Revenues - 0.26 STATUTORY REPORTS Borrowings* 1,818.32 2,096.42 280.67 4,195.41 (c) Revenue from operations {I(a)+I(b)} - 75.13 Lease Liabilities** 20.06 57.23 65.09 142.38 (d) Other income - - Trade payables 1,111.69 - - 1,111.69 (e) Total income {I(c)+I(d)} - 75.13 Other financial liabilities 344.79 22.87 - 367.66 (f) Total expenses - 67.05 3,294.86 2,176.52 345.76 5,817.14 (g) Profit before tax for the period from - 8.08 *including current maturity of non-current borrowings and future cash outflow towards estimated interest on non discontinued operations {I(e)-I(f)} -current borrowings. **including future cash outflow towards estimated interest on lease liabilities. (h) Tax expense related to discontinued operations - 2.82 (i) Net Profit after tax for the period from - 5.26 41. Contract balances discontinued operations {I(g)-I(h)} The following table provides information about contract assets and contract liabilities from II (a) Profit before tax on disposal of discontinued - 233.74 contracts with customers operations Contract assets Year ended Year ended (b) Tax expense related to disposal of discontinued - 58.41 March 31, 2021 March 31, 2020 operations Opening balance - 25.52 FINANCIAL STATEMENTS (c) Net Profit after tax on disposal of discontinued - 175.33 Increase as a result of changes in measure of progress - - operations {II(a)-II(b)} Transfer from contract assets recognised at the beginning of the - 25.52 year to receivables III Net Profit after tax for the period from - 180.59 - - discontinued operations {I(i)+II (c)} IV Net cash generated from operating activities - 17.29 Contract liability Year ended Year ended V Net cash generated from / (used in) investing activities - 268.92 March 31, 2021 March 31, 2020 VI Net cash used in financing activities - (0.14) Opening balance 12.68 16.69 Revenue recognised that was included in the contract liability (12.68) (16.69) (c) Revenue from major products balance at the beginning of the period Increase due to cash received, excluding the amount recognised 18.40 12.68 Year ended Year ended as revenue during the period March 31, 2021 March 31, 2020 18.40 12.68 Nylon/ PBT/ PC compounding chips - 74.87

338 Annual Report 2020-21 339 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW (d) Details of disposal of discontinued operations: Sl. no. Particulars Year ended Year ended Year ended Year ended March 31, 2021 March 31, 2020 March 31, 2021 March 31, 2020 (f) Total expenses excluding point no.(g) 11.21 151.60 Proceeds from sale of business - 315.77 Carrying amount of net assets transferred - (76.32) (g) Impact on account of fair value measurement loss / - 70.29 Costs incurred on sale of business - (5.71) (gain) on assets/liabilities Profit before tax on disposal of discontinued operations - 233.74 (h) Profit / (loss) before tax from discontinued (2.73) (85.97) Tax expense related to disposal of discontinued operations - (58.41) operations {I(e)-I(f)-I(g)} Net Profit after tax on disposal of discontinued - 175.33 (i) Tax expense / (gain) related to discontinued (2.42) (8.57) operations operations (e) The carrying amounts of assets and liabilities as at the date of sale were as follows: II Net Profit / (loss) after tax from discontinued (0.31) (77.40) operations{1(h)-I(i)} As at July 31, 2019 III Net cash generated from operating activities (1.64) (4.11) Property, plant and equipment 44.86 IV Net cash generated from investing activities 17.91 (2.56) Goodwill 0.79 STATUTORY REPORTS V Net cash used in financing activities (0.06) (0.55) Intangible assets 0.22 Inventory 25.07 (c) Revenue from major products Trade receivables 25.27 Other assets 0.42 Year ended Year ended Total assets 96.63 March 31, 2021 March 31, 2020 Trade payables (19.59) Nylon tyre cord fabric/ Polyester tyre cord fabric / Belting fabric - 133.59 Other liabilities and provisions (0.72) Total liabilities (20.31) (d) Assets classified as held for sale Net assets transferred 76.32 As at As at B. Technical Textiles Business of SRF Industries(Thailand) Limited March 31, 2021 March 31, 2020 (a) Description Property plant and equipment - 11.84 SRF Industries(Thailand) Limited closed its Technical Textiles Business operations located at Rayong, Thailand w.e.f. October 21, 2019. The business was reported as part of Technical Textiles Business as C. Pursuant to requirements of Ind AS 105, the amounts in the consolidated statement of profit and loss per requirements of Ind AS 108 – “Operating Segments” in the consolidated financial results till last year. (and related notes) for the current year and the previous year have been presented for continuing The financial information of the said business have been classified as Discontinued Operations asper operations, as applicable unless otherwise stated. FINANCIAL STATEMENTS requirements of INDAS 105 - “Non -current assets held for sale and discontinued operations”. The relevant assets and liabilities have been recognised at estimated fair value and all future realizations / settlements 43. Leases of said assets / liabilities will continue to be shown under discontinued operations. The particulars of said The group leases various types of assets including land, buildings and Plant & Machinery. Information about discontinued operations are as under: leases for which the group is a lessee is presented below.

(b) Financial performance and cash flow information Right-of-use assets Land* Buildings Plant and Total equipment Sl. no. Particulars Year ended Year ended March 31, 2021 March 31, 2020 Cost I (a) Sale of Products - 133.59 Balances at April 1, 2019 141.57 43.96 21.67 207.20 (b) Other operating Revenues 2.26 0.52 Additions/adjustments 13.89 1.02 28.96 43.87 (c) Total revenue from operations {I(a)+I(b)} 2.26 134.11 Disposals/adjustments (7.42) - - (7.42) (d) Other income 6.22 1.81 Balance at March 31,2020 148.04 44.98 50.63 243.65 (e) Total income {I(c)+I(d)} 8.48 135.92 Additions/adjustments 3.25 2.13 1.86 7.24

340 Annual Report 2020-21 341 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Right-of-use assets Land* Buildings Plant and Total 44. Group Information equipment Name Principal activities Country of % equity interest Disposals/adjustments - (0.86) (2.60) (3.46) incorporation March 31, 2021 March 31, 2020 SRF Holiday Home Development and lease India 100% 100% Balance at March 31,2021 151.29 46.25 49.89 247.43 Limited of Industrial, commercial Accumulated amortisation and residential complexes Balances at April 1, 2019 - - - - SRF Employees Welfare Implementation and India * * Depreciation expenses 1.54 6.76 8.44 16.74 Trust (Controlled Trust) operationalisation of long term incentive plans of Disposals/adjustments (0.67) - - (0.67) the Company Balances at March 31, 2020 0.87 6.76 8.44 16.07 SRF Global BV Investment company Netherlands 100% 100% Depreciation expenses 1.68 7.07 9.31 18.06 SRF Flexipak (South Manufacture of BOPP and Republic of 100% 100% Disposals/adjustments - (0.86) (2.60) (3.46) Africa) (Pty) Limited metallized BOPP films South (subsidiary of Africa Balance at March 31,2021 2.55 12.97 15.15 30.67

SRF Global BV) STATUTORY REPORTS SRF EUROPE Kft Manufacture of Polyester Hungary 100% 100% Net block (subsidiary of SRF Global film and metallized Balance at March 31, 2020 147.17 38.22 42.19 227.58 BV) Polyester film SRF Industries Manufacture of Tyre cord Thailand 100% 100% Balance at March 31, 2021 148.74 33.28 34.74 216.76 (Thailand) Limited fabric, Polyester film and (subsidiary of metallized Polyester film * The execution of lease deed of land in respect of 11,49,550 sq. mtrs. (Previous year : 11,49,550 sq. mtrs) of leasehold SRF Global BV) & trading of chemical land allotted to the group by Gujarat Industrial Development Corporation at Dahej, Gujarat is pending. products SRF Industex Belting Trading of chemical Republic of 100% 100% (Pty) Limited (subsidiary products South Lease liabilities included in the Balance Sheet As at Year ended of SRF Global BV) Africa March 31, 2021 March 31, 2020 *By virtue of management control. Current 13.80 13.71 Non-current 63.83 73.98 45. Additional information as required by Paragraph 2 of General Instructions for preparation of consolidated financial statements to the Schedule III to the Companies

Act, 2013 FINANCIAL STATEMENTS The average incremental borrowing rate applied to lease liabilities during the year ranges from 6.50% to Name of the entity Net Assets, i.e., total Share in profit or loss^ Share in other Share in total 8.00% (Previous year: 8%) in the Group assets minus total comprehensive income^ comprehensive income^ liabilities Amounts recognised in Statement of Profit and Loss Year ended As at As % of Amount As % of Amount As % of Amount As % of total Amount ` ` ` ` March 31, 2021 March 31, 2020 consolidated ( Crores) consolidated ( Crores) consolidated ( Crores) consolidated ( Crores) net assets Share in other comprehensive Interest on lease liabilities 6.49 6.70 profit or loss comprehensive income Depreciation expense 18.06 16.74 income Expenses relating to short-term leases and leases of low-value 17.92 14.78 I Parent - SRF 92% 6,295.27 77% 925.06 69% 88.28 76% 1,013.34 assets (Refer note 30) Limited II Subsidiaries: A Indian Amounts recognised in Cash Flow Statement Year ended As at March 31, 2021 March 31, 2020 1 SRF Holiday - 3.75 - 0.01 - - - 0.01 Home Limited Total cash outflow for leases 20.19 18.87

342 Annual Report 2020-21 343 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW Name of the entity Net Assets, i.e., total Share in profit or loss^ Share in other Share in total Contract assets Year ended Year ended in the Group assets minus total comprehensive income^ comprehensive income^ March 31, 2021 March 31, 2020 liabilities Rent - 0.04 As % of Amount As % of Amount As % of Amount As % of total Amount consolidated (` Crores) consolidated (` Crores) consolidated (` Crores) consolidated (` Crores) Repairs and maintenance net assets Share in other comprehensive - Plant and machinery 8.32 10.86 profit or loss comprehensive income income - Others 0.58 1.26 2 SRF Employees - * - ** - - - ** Insurance 0.96 0.87 Welfare Trust (Controlled Rates and taxes 0.07 0.04 Trust) Travelling and conveyance 0.16 1.27 B. Foreign Legal and professional charges 3.58 3.95 1 SRF Global BV 10% 655.47 23% 273.45 31% 39.22 24% 312.67 (Consolidated) Depreciation and amortisation expense 18.33 19.09 Adjustments (2%) (98.07) - (0.58) - - - (0.58) Interest cost 0.28 0.36

arising out of STATUTORY REPORTS consolidation Miscellaneous expenses 2.78 2.62 Total 100% 6,856.42 100% 1,197.94 100% 127.50 100% 1,325.44 97.04 99.68 Non- Nil Nil Nil Nil Nil Nil Nil Nil controlling Interests in all (b) Managerial Remuneration subsidiaries (i) (a) Remuneration to Chairman / Managing Director / Year ended Year ended * ` ` Amount in absolute 23, 373 (Previous year - 35,957) Deputy Managing Director / Whole time Director March 31, 2021 March 31, 2020 **Amount in absolute ` (13,234) (Previous year - (7,426)) Salary and contribution to provident and other funds 12.04 11.05 ^Includes discontinued operations Value of perquisites 2.36 2.26 46. Additional Disclosures Commission 12.00 9.50 (a) Research and Development Expenditure SUB-TOTAL 26.40 22.81 The details of research and development expenditure of `110.50 crores (Previous Year - ` 132.77 crores) included in these financials statements are as under: (b) Remuneration to Non Executive Directors

Contract assets Year ended Year ended FINANCIAL STATEMENTS March 31, 2021 March 31, 2020 Commission 0.84 0.72 Capital expenditure 13.46 33.09 Directors sitting fees 0.27 0.21 Revenue expenditure 97.04 99.68 110.50 132.77 Other fees 0.14 0.12 SUB-TOTAL 1.25 1.05 The details of revenue expenditure incurred on research and development is as below: TOTAL 27.65 23.86 Contract assets Year ended Year ended March 31, 2021 March 31, 2020 (c) The Group has elected to continue the policy adopted for accounting for exchange differences arising Cost of material consumed 2.73 1.51 from translation of long-term foreign currency monetary items as described in Para D13 AA of Ind AS 101. Salaries and wages, including Bonus 42.97 37.85 Accordingly, exchange loss/ (gain) arising on all long term monetary items financed or re-financed on or Contribution to provident and other funds 2.61 2.45 before March 31, 2016 relating to acquisition of following depreciable assets are added to/ adjusted from Workmen and staff welfare expenses 2.72 3.62 the cost of such assets/ capital work in progress and will be depreciated over the balance useful life of Stores and spares consumed 6.11 6.15 Power and fuel 4.84 7.74 such assets.

344 Annual Report 2020-21 345 Notes to the CONSOLIDATED financial statements Notes to the CONSOLIDATED financial statements for the year ended March 31, 2021 for the year ended March 31, 2021 (All amounts in ` Crores, unless otherwise stated) (All amounts in ` Crores, unless otherwise stated) CORPORATE OVERVIEW (e) The Code of Social Security, 2020 (‘Code’) relating to employee benefits during employment and post Exchange loss/ (gain) added/ (adjusted) Year ended Year ended employment received Presidential assent in September 2020 and its effective date is yet to be notified. The March 31, 2021 March 31, 2020 Company will assess and record the impact of the Code, once its effective. Property, plant and equipment - Roads (0.52) 0.66 (f) The Company has established a comprehensive system of maintenance of information and documents as required by transfer pricing legislation under section 92D for its international transactions as well as - Buildings (6.98) 8.86 specified domestic transactions. Based on the transfer pricing regulations/ policy, the transfer pricing study - Plant and equipment (31.59) 61.44 for the year ended March 31, 2021 is to be conducted on or before due date of the filing of return and the - Furniture and fixtures (0.14) 0.18 Company will further update above information and records based on the same and expects these to be in - Office equipment (0.01) 0.03 existence latest by that date. Management believes that all the above transactions are at arm’s length price and the aforesaid legislations will not have impact on the financial statement, particularly on the amount of (39.24) 71.17 tax expense and provision for taxation. Other Intangible Assets

- Trade marks/ Brands - 0.33 As per our report attached For and on behalf of the Board of Directors For B S R & Co. LLP

- Technical knowhow - 0.19 STATUTORY REPORTS Chartered Accountants - Others - 0.09 ICAI Firm registration no. - 0.61 101248W/W-100022 Kaushal Kishore Ashish Bharat Ram Kartik Bharat Ram Bharti Gupta Ramola The cumulative exchange loss/ (gain) added/ (adjusted) and remaining unamortised as at March 31, 2021 is ` 259.14 Partner Managing Director Deputy Managing Director Director Crores (Previous year: ` 299.84 Crores). Membership No.: 090075 DIN - 00671567 DIN - 00008557 DIN - 00356188 Place : Delhi Place : Delhi Place : Delhi Place : Gurugram Date : May 21, 2021 Date : May 05, 2021 Date : May 05, 2021 Date : May 05, 2021 (d) Disclosure on corporate social responsibility expense: Rahul Jain Rajat Lakhanpal Year ended Year ended President & CFO Vice President March 31, 2021 March 31, 2020 Place : Gurugram (Corporate Compliance) and (i) Prescribed CSR expenditure as per Section 135 of the 12.88 11.63 Date : May 05, 2021 Company Secretary Place : Delhi Companies Act, 2013 Date : May 05, 2021 (ii) Amount approved by the Board to be spent during the year 12.88 12.00 (iii) Actual amount spent during the year on purposes other than 10.18 12.00 construction / acquisition of an asset (Also Refer note 35.2) Details of expenditure: FINANCIAL STATEMENTS - In respect of ongoing projects (Rural education and skill programme) : a) Amount required to be spent during the year 7.00 - b) Actual amount spent during the year from company's 4.30 - bank account c) Remaining unpaid at the end of the year with the 2.70 - company* - In respect of other than ongoing projects: a) Amount required to be spent during the year 5.88 11.63 b) Actual amount spent during the year from company's 5.88 12.00 bank account *Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021, the unspent amount has been subsequently deposited in a “Unspent CSR Account”.

346 Annual Report 2020-21 347 Statement pursuant to first proviso to sub section(3) of section 129 of Companies Act Sl. Name of the SRF Industries (Thailand) SRF Industex Belting (Pty) 2013,read with rule 5 of Companies (Accounts) Rules, 2014 in prescribed form AOC-1 No. subsidiary Limited# Limited# relating to subsidiaries/associates companies/joint ventures (subsidiary of SRF Global BV) (subsidiary of SRF Global BV) THB ` Crores Rand ` Crores A Statement showing salient features of the financial statements of subsidiaries (a) Reporting Period April 1, 2020 to April 1, 2020 to CORPORATE OVERVIEW Indian Subsidiaries March 31, 2021 March 31, 2021 Sl. Name of the subsidiary SRF Holiday Home Limited (b) Date since when 08.09.2008 13.06.2008 No. (` Crores) subsidiary was (a) Reporting Period April 1, 2020 to March 31, 2021 acquired/formed (c) Reporting Currency THB Rand (b) Date since when subsidiary was acquired/formed 30.01.2008 (d) Exchange Rate 2.34 4.95 (c) Reporting Currency INR (e) Share Capital 10,00,00,300 23.40 1,33,20,202 6.59 (d) Exchange Rate - (f) Reserves and Surplus 2,12,39,30,026 497.00 (4,96,18,394) (24.56) (e) Share Capital 4.00 (g) Total Assets 6,49,96,28,366 1,520.91 1,22,77,712 6.08 (f) Reserves and Surplus (0.25) (h) Total 4,27,56,98,040 1,000.51 4,85,75,904 24.05 Liabilities(external (g) Total Assets 3.77 liabilities) (h) Total Liabilities(external liabilities) 0.02 (i) Investment - - - - (i) Investment - (j) Turnover 3,21,51,27,643 752.34 64,17,635 3.18 (j) Turnover - (k) Profit/(Loss) Before 88,66,33,414 207.47 99,64,911 4.93 Taxation

(k) Profit/(Loss) Before Taxation 0.006 STATUTORY REPORTS (l) Tax expense / (income) - (l) Tax expense / (15,29,107) (0.36) - - (income) (m) Profit/(Loss) After Taxation 0.006 (m) Profit/(Loss) After 88,81,62,521 207.83 99,64,911 4.93 (n) Proposed Dividend - Taxation (o) % of shareholding 100% (n) Proposed Dividend - - - - (o) % of shareholding 100% 100% Foreign Subsidiaries Sl. Name of the subsidiary SRF Europe Kft# # Sl. Name of the subsidiary SRF Global BV SRF Flexipak (South Africa) No. (subsidiary of SRF Global BV) # No. (Pty) Limited EURO ` Crores (subsidiary of SRF Limited) (subsidiary of SRF Global BV) (a) Reporting Period April 1, 2020 to USD ` Crores Rand ` Crores March 31, 2021 (a) Reporting Period April 1, 2020 to April 1, 2020 to (b) Date since when subsidiary was acquired/formed 25.04.2018 March 31, 2021 March 31, 2021 (c) Reporting Currency EURO (b) Date since when subsidiary was 20.10.2008 26.10.2011 (d) Exchange Rate 85.78 acquired/formed (e) Share Capital 10,10,000 8.66

(c) Reporting Currency USD Rand (f) Reserves and Surplus (1,43,167) (1.23) FINANCIAL STATEMENTS (d) Exchange Rate 73.15 4.95 (g) Total Assets 9,99,58,743 857.45 (h) Total Liabilities(external liabilities) 9,90,91,910 850.01 (e) Share Capital 1,83,15,664 133.98 100 0.00 (i) Investment - - (f) Reserves and Surplus (2,39,06,808) (174.88) 32,01,56,159 158.48 (j) Turnover 2,23,40,346 191.64 (g) Total Assets 8,80,46,910 644.06 84,93,71,682 420.44 (k) Profit/(Loss) Before Taxation (9,93,819) (8.52) (h) Total Liabilities(external liabilities) 9,36,38,054 684.96 52,92,15,423 261.96 (l) Tax expense / (income) 8,141 0.07 (i) Investment * * - - (m) Profit/(Loss) After Taxation (10,01,960) (8.59) ( j ) Turnover - - 1,06,39,26,332 526.64 (n) Proposed Dividend - - (k) Profit/(Loss) Before Taxation (7,27,698) (5.32) 29,79,03,724 147.46 (o) % of shareholding 100% (l) Tax expense / (income) - - 8,35,44,614 41.35 #The financial statements of these foreign subsidiaries have been converted into Indian Rupees on the basis of following (m) Profit/(Loss) After Taxation (7,27,698) (5.32) 21,43,59,110 106.11 exchange rates: (n) Proposed Dividend - - - - (i) 1 USD = ` 73.15 ` (o) % of shareholding 100% 100% (ii) 1 Baht = 2.34 (iii) 1 Rand = ` 4.95 *Investment in subsidiary USD 1,13,23,713 (Equivalent to ` 82.83 crores) (iv) 1 Euro = ` 85.78

348 Annual Report 2020-21 349 B Statement containing salient features of the financial statements of associates companies/ joint ventures notes Name of Associate Companies/Joint Malanpur Captive Vaayu Renewable Ventures# Power Ltd. Energy(Tapti) Pvt. Ltd. Latest audited Balance Sheet date 31.03.2020 31.03.2020 Date on which the Associate was associated or acquired 09.01.2007 29.05.2013 Shares of associate held by the company on the 42,21,535 50,000 year end (Number of shares) Amount of investment in Associate Companies 4.22 0.05 Extent of holding (%) 22.60% 26.32% Description of how there is significant influence Due to control of at Due to control of at least least 20% of total share 20% of total share capital capital as envisaged as envisaged in Sec. 2(6) in Sec. 2(6) of the of the Companies Companies Act, 2013 Act, 2013 Reason why the associate company is not consolidated * * Net worth attributable to shareholding as per (7.10) 12.30 latest Audited Balance Sheet Profit & loss for the year (i) Considered in Consolidation Nil Nil (ii) Not considered in Consolidation (0.29) 0.50

# The company has no joint venture *Investment in both these group captive power companies are held by the company as a consumer in accordance with the requirements of the Electricity Act, 2005. The company does not exercise significant influence as defined under IND AS over these companies and therefore their annual accounts are not consolidated with the annual accounts of the company.

For and on behalf of the Board of Directors

Ashish Bharat Ram Kartik Bharat Ram Bharti Gupta Ramola Managing Director Deputy Managing Director Director DIN - 00671567 DIN - 00008557 DIN - 00356188 Place : Delhi Place : Delhi Place : Gurugram Date : May 05, 2021 Date : May 05, 2021 Date : May 05, 2021

Rahul Jain Rajat Lakhanpal President & CFO Vice President Place : Gurugram (Corporate Compliance) and Date : May 05, 2021 Company Secretary Place : Delhi Date : May 05, 2021

350 Annual Report 2020-21 Registered Office Unit No. 236 & 237, 2nd Floor, DLF Galleria, Mayur Place, Noida Link Road, Mayur Vihar Phase - I Extn., Delhi, India - 110 091 Tel.: +91-11- 49482870

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