The Directors are pleased to present the 40th Annual Report for the
 year ended 31 March 2011.
 
 Financial Results
 
                                                             (Rs crore)
                                                   2010-11      2009-10
 
 Net Sales                                         2986.06      2181.08
 
 Profit Before Interest, Depreciation 
 & Tax (PBIDT)                                      912.21       649.40
 
 Less: Interest & Finance Charges (Net)              83.02        64.24
 
 Gross Profit                                       829.19       585.16
 
 Less: Depreciation                                 151.71       131.25
 
 Profit Before Tax (PBT)                            677.48       453.91
 
 Less: Provision For Taxation 
 including Deferred Tax Charge                      194.04       144.49
 
 Profit After Taxation (PAT)                        483.44       309.42
 
 Add: Profit Brought Forward                        627.14       482.07
 
 Surplus available for appropriation               1110.58       791.49
 
 
 Appropriation
 
                                                             (Rs crore)
 
                                                   2010-11      2009-10
 
 Interim dividend on Equity Shares                   84.71        84.71
 
 Corporate Tax on Dividend                           14.06        14.39
 
 Amount transferred to General Reserve               35.00        50.00
 
 Amount transferred to Debenture 
 Redemption Reserve                                  30.25        30.25
 
 Profit carried to Balance Sheet                    627.14       931.56
 
 Total                                             1110.58       791.49
 
 Equity Dividend
 
 The Board of Directors of the Company has not recommended any final
 dividend. During the year, your Company has paid two interim dividends
 each of Rs. 7 per share aggregating to Rs. 14 per share.
 
 Operations Review
 
 Net sales of the Company grew by 36.91 per cent from Rs. 2181.08 crore
 in 2009-10 to Rs. 2986.06 crore in 2010-11. Profit before interest,
 depreciation and tax (PBIDT) including other income increased from
 Rs.  649.40 crore in 2009-10 to Rs. 912.21 crore in 2010-11.
 
 Profit before tax (PBT) increased by 49.25 per cent from Rs. 453.91
 crore in 2009-10 to Rs. 677.48 crore in 2010-11. After accounting for
 the provision for taxation of Rs. 194.04 crore, which includes deferred
 tax charge and provision relating to earlier years, profit after tax
 (PAT) grew by
 
 56.24 per cent from Rs. 309.42 crore in 2009-10 to Rs.  483.44 crore in
 2010-11.
 
 Management Discussion and Analysis
 
 A detailed section of the Management Discussion and Analysis forms part
 of the Annual Report. A review of the Businesses is also given in that
 section.
 
 Subsidiary Companies
 
 Restructuring of shareholding in international subsidiaries
 
 During the year, the entire shareholding of the Company in SRF Overseas
 Ltd. was transferred to SRF Tech textile BV with effect from 1.5.2010.
 
 SRF Global B.V.
 
 SRF Global B.V. has reported a loss of US$ 0.84 lakhs during the year
 2010-11 on account of administrative expenses.
 
 SRF Tech textile B.V.
 
 SRF Tech textile B.V., a wholly owned subsidiary of SRF Global B.V. has
 reported a loss of US$ 5.47 lakhs during the year 2010-11.
 
 SRF Technical Textiles (Thailand) Ltd.
 
 SRF Technical Textiles (Thailand) Ltd. (SRFTTT), a wholly owned
 subsidiary of SRF Tech textile B.V. is a company incorporated in
 Thailand and engaged in the manufacture and distribution of nylon tyre
 cord. For the year 2010-11, the turnover of the company was THB 1710.55
 million and net profit was THB 26.03 million.
 
 SRF Industex Belting (Pty) Ltd.
 
 SRF Industex Belting (Pty) Ltd. (SRFIB), a wholly owned subsidiary of
 SRF Tech textile B.V. is a company incorporated in South Africa and
 engaged in the manufacture of belting fabrics. For the year 2010-11,
 the turnover of the company was ZAR 143.62 million and net profit was
 ZAR 6.60 million.
 
 SRF Overseas Ltd. (SRFO)
 
 SRFO, a wholly owned subsidiary of SRF Tech textile B.V, is operating
 out of Dubai and is an arm of the Technical Textiles Business (TTB)
 targeted at the markets of Middle East, Europe and Africa. During the
 year 2010-11, turnover of the Company was AED 129.89 million and the
 company incurred a loss of AED 3.30 million.
 
 Other Subsidiaries
 
 SRF Transnational Holdings Ltd. incurred a loss of Rs.  73.58 lakhs
 during the year 2010-11.
 
 SRF Properties Ltd. earned a net profit (PAT) of Rs. 10.62 lakhs during
 the year 2010-11.
 
 SRF Holiday Home Limited has incurred a loss of Rs. 0.25 lakhs during
 the year 2010-11.
 
 SRF Fluorochemicals Limited, SRF Energy Limited and SRF Fluor Private
 Limited had not started any operations.
 
 Annual accounts of the subsidiary companies and the related detailed
 information can be obtained on request by the
 
 shareholders of the Company and of the subsidiary companies. These are
 also available for inspection at the Corporate Office of the Company
 and at the respective registered offices of the subsidiaries between 11
 A.M. to 1 P.M.  on all working days.
 
 Directors
 
 S P Agarwala and Vinayak Chatterjee are retiring by rotation at the
 ensuing Annual General Meeting and being eligible offer themselves for
 re- appointment. Brief resumes of the Directors offering themselves for
 re-appointment are furnished in the explanatory statement to the notice
 of the ensuing Annual General Meeting.
 
 Directors Responsibility Statement
 
 Pursuant to the requirements of Section 217(2AA) of the Companies Act,
 1956, it is hereby confirmed:
 
 (i) that in the preparation of the annual accounts, the applicable
 accounting standards have been followed along with proper explanation
 relating to material departures;
 
 (ii) that the Directors have selected such accounting policies and
 applied them consistently and made judgements and estimates that were
 reasonable and prudent so as to give a true and fair view of the state
 of affairs of the Company at the end of the financial year and of the
 profit or loss of the Company for the period under review;
 
 (iii) that the Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of this Act for safeguarding the assets of the Company and
 for preventing and detecting fraud and other irregularities; and
 
 (iv) that the Directors have prepared the annual accounts for the year
 ended 31st March 2011 on a going concern basis.
 
 The Company is controlled by Arun Bharat Ram Group (Promoter Group)
 being a group as defined under the Monopolies and Restrictive Trade
 Practices Act, 1969. The Promoter Group consists of various individuals
 and corporate bodies who are in a position to and who jointly exercise
 control over the Company. A list of these individuals and corporate
 entities is as follows:
 
 a) Arun Bharat Ram; b) Ashish Bharat Ram; c) Kartikeya Bharat Ram; d)
 Mrs.  Shiela Bharat Ram; e) Mrs. Manju Bharat Ram; f) Mrs. Vasvi Bharat
 Ram; g) Mrs.  Radhika Bharat Ram; h) KAMA Holdings Ltd.; i) KAMA Realty
 (Delhi) Ltd.; j) Srishti Westend Greens Farms Private Limited; k) Karm
 Farms Private Limited; l) Karmav Holdings Private Limited; m) Skylark
 Investments & Trading Pvt. Ltd.; n) Shri Educare Limited.; and o) Shri
 Educare Maldives Private Limited.
 
 Buy-back of Shares
 
 The Board of Directors at its meeting held on 26.2.2011 announced buy-
 back of fully paid up equity shares for an amount not exceeding Rs. 90
 crore at a maximum price of Rs. 380 per share from the open market
 through stock exchanges.
 
 Till date, the Company has bought back 58,851 equity shares absorbing
 an amount of Rs. 1.97 crore.
 
 Listing of Equity Shares
 
 SRFs equity shares are listed at the Bombay Stock Exchange Ltd. and
 the National Stock Exchange of India Ltd.
 
 Corporate Governance
 
 Certificate of the auditors of your Company regarding compliance of the
 conditions of corporate governance as stipulated in Clause 49 of the
 Listing Agreement with the stock exchanges is attached to the report as
 annexure 1.
 
 In compliance with the requirements of Clause 49(V), a certificate from
 Managing Director and the President & Chief Financial Officer was
 placed before the Board.
 
 All Board members and Corporate Leadership Team (CLT) have affirmed
 compliance with the Code of Conduct for Board and Senior Management
 Personnel. A declaration to this effect duly signed by the Managing
 Director is enclosed as a part of the Corporate Governance Report. A
 copy of the Code is also placed at the website of the Company
 (www.srf.com)
 
 Consolidated Financial Statement
 
 In accordance with the accounting standard (AS-21), your Directors are
 pleased to attach the consolidated financial statements, which form
 part of the Annual Report and Accounts.
 
 Accounts and Audit
 
 The auditors, M/s Deloitte Haskins & Sells retire at the conclusion of
 the 40th Annual General Meeting and being eligible, offer themselves
 for re-appointment. The observations of the auditors are explained
 wherever necessary in appropriate notes to the accounts.
 
 Cost Audit
 
 Mr. Harkesh Kumar Tara, Cost Accountant, has been appointed to conduct
 cost audit of the accounts maintained by the Company in respect of its
 nylon products for the financial year 2011-12.
 
 The Cost Audit report for audit of nylon for the year 2009-10
 conducted by Mr Prakash Kumar Varma, Cost Accountant (M. No. 3541), has
 been fled with the Ministry of Corporate Affairs on the due date.
 
 Internal Control System
 
 The Companys internal control system includes audit and verification
 of compliance with defined policies and procedures by Internal Audit
 Function. The internal auditors independently evaluate the adequacy of
 internal controls and audit the sample of the transactions in value
 terms. Independence of the audit is ensured by the direct reporting of
 internal audit function to the Audit Committee of the Board.
 
 Fixed Deposits
 
 Your Company discontinued accepting/ renewing fixed deposits since 14
 August 2004. Deposits accepted from Public which have matured and are
 unclaimed are being refected under Unclaimed fixed deposits (including
 interest) in Current Liabilities & Provisions (Schedule 8 to the
 annual accounts).
 
 Personnel
 
 As required by the provisions of Section 217(2A) of the Companies Act,
 1956 read with Companies (Particulars of Employees), Rules, 1975, as
 amended, the names and other particulars of employees are set out in
 the annexure 2 to the Directors Report.
 
 Conservation of Energy, Technology Absorption, Foreign Exchange
 Earnings & Outgo
 
 The details as required under the Companies (Disclosure of Particulars
 in Report of Board of Directors) Rules, 1988 are given as annexure 3 to
 the Directors report.
 
 Industrial Relations
 
 The Company continued to generally maintain harmonious and cordial
 relations with its workers in all its businesses.
 
 Acknowledgements
 
 Your Directors acknowledge with gratitude the co-operation and
 assistance received from various agencies of the Central Government and
 the Governments of Madhya Pradesh, Rajasthan, Tamil Nadu, Gujarat and
 Uttarakhand, financial institutions and banks. Your Directors thank the
 shareholders for their continued support. Your Directors also place on
 record their appreciation of the contribution made by employees at all
 levels.
 
                                         For and on Behalf of the Board
 
                                                        Arun Bharat Ram 
                                                               Chairman
 
 Date : May 9, 2011 
 Place: Gurgaon