SRF
BSE: 503806 | NSE: SRF | ISIN: INE647A01010 | Textiles - Manmade
- Directors Report
- Chairman's Speech
- Auditors Report
- Notes To Accounts
- Accounting Policy
- Finished Products
- Raw Materials
| Notes to Accounts | Year End : Mar '09 |
1. Capital Commitments
the estimated amount of contracts remaining to be executed on capital
account and not provided for (net of advances) amounts to Rs 16,608.87
lakhs (previous Year – Rs 3,791.41 lakhs).
Further, the Company is to make investments in the joint venture Jingde
Yangtze – Ganga Fluorine Chemical Co Limited up to USD 2.65 million
(previous Year – USD 2.65 million).
the Company is to make investments in the following companies:
i) SRF Fluorochemicals Limited – Rs 5 lakhs (previous Year – Rs 5
lakhs)
ii) SRF energy Limited – Rs 5 lakhs (previous Year – Rs 5 lakhs)
2. Contingent Liabilities not provided for
a. Claims against the Company not acknowledged as debts:
As at 31 March 2009
Rs Lakhs As At 31 March
2008 Rs Lakhs
excise Duty* @ 5713.25 3884.53
Sales tax** @ 231.57 43.74
income tax 749.00 171.00
Stamp Duty**** 2881.55 2881.55
Others*** 94.43 44.17
All the above matters are subject to legal proceedings in the ordinary
course of business. in the opinion of the management, the legal
proceedings, when ultimately concluded, will not have a material effect
on the results of the operations or financial position of the Company.
b. Bills discounted – Rs nil (previous Year – Rs 4,167.35 lakhs)
c. Liability on account of bank guarantees Rs 625.75 lakhs (previous
Year – Rs 77.03 lakhs)
d. Guarantee given to a bank for repayment of financial facilities
availed by a wholly-owned subsidiary USD 45.00 million (previous Year –
USD 0.60 million)
e. (i) the Company has received a notice from Officer on Special Duty,
Diversion tax, Bhind, imposing Diversion tax of Rs 197.00 lakhs
(previous Year – Rs 197.00 lakhs) for converting the agricultural land
into industrial land. the Company has been advised that the above
notice will not be sustained since the land has been acquired from a
Government Authority and no Diversion tax is payable on Government
land.
(ii) the Company has been served with show cause notices regarding
certain transactions as to why additional customs/excise duty amounting
to Rs 297.59 lakhs (previous Year – Rs 19.62 lakhs) should not be
levied. the Company has been advised that the contention of the
department is not tenable and hence, the show cause notice may not be
sustainable.
the Company has acquired the engineering plastics Business and
industrial Yarn Business from SRF polymers Limited on a going concern
basis with effect from 1 January 2009 under a Business transfer
Agreement (BtA) at a consideration of Rs 15,031.26 lakhs.
the consideration has been allocated as given below:
i) Fixed assets are taken at fair market value on the basis of
valuation reports of a registered valuer.
ii) trademarks/technical knowhow acquired has been valued on the basis
of valuation report of a registered valuer.
iii) net current assets are taken at their respective book values less
adjustments for allowances/write downs, etc. arising out of due
diligence carried out.
iv) the excess of the consideration over the value of the total assets
acquired as aforesaid amounting to Rs 368.94 lakhs has been accounted
for as ‘Goodwill’ in Schedule 5.
3. Dues to Micro, Small and Medium enterprises
Sundry creditors include Rs 57.87 lakhs (previous Year – Rs 176.62
lakhs) due to micro and small enterprises covered under ‘the Micro,
Small and Medium enterprises Development Act, 2006’ to the extent such
parties have been identified from the available information. the
Company has not received any claim for interest from any party covered
under the said Act.
4. employee Benefits
the Company has classified various benefits provided to employees as
under: i) Defined Contribution Plans
a) Superannuation fund
b) provident fund
c) employees’ State insurance Corporation
the expenses incurred on account of the above benefits have been
included in Schedule 12 ‘Manufacturing and other expenses’ under the
head ‘Contribution to provident fund, superannuation, employees’ state
insurance, gratuity and other funds’
Apart from being covered under the Gratuity plan described above, the
employees 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
based on a specified percentage of each covered employee’s salary. From
1 november 2006, the Company provided an option to the employees to
receive the said benefit as cash compensation along with salary in lieu
of the superannuation benefit, thus, no contribution is required to be
made for the category of employees who opted to receive the benefit in
cash.
Provident Fund - Defined Contribution Plan
in addition to the above benefits, all employees are entitled to
provident Fund benefits as per the law. For certain category of
employees, the Company administers the benefits through a recognised
provident fund trust. For other employees, contributions are made to
the regional provident Fund Commissioners as per law. the Government
mandates the annual yield to be provided to the employees on their
corpus. For the first category of employees (covered by the trust), the
Company has an obligation to make good the shortfall, if any, between
the yield on the investments of the trust and the yield mandated by the
Government.
5. Segment Reporting
A Business Segments
Based on the guiding principles laid down in Accounting Standard
(AS)-17 ‘Segment Reporting’, the Company’s business segments include:
* technical textiles Business: includes nylon tyre cord fabric, belting
fabric, coated fabric and industrial yarns and its research and
development
* Chemicals and polymers Business: includes refrigerant gases,
chloromethanes, pharmaceuticals, Certified emissions Reductions and
Allied products, engineering plastics Business and its research and
development
* packaging Films Business includes polyester Films
Segment revenue, results and capital employed include the respective
amounts identifiable to each of the segments. Other unallocable
expenditure includes expenses incurred on common services provided to
the segments, which are not directly identifiable.
in addition to the significant accounting policies applicable to the
business segments as set out in note 1 above, the accounting policies
in relation to segment accounting are as under:
a) Segment Revenue and Expenses
Joint revenue and expenses of segments are allocated amongst them on a
reasonable basis. All other segment revenue and expenses are directly
attributable to the segments.
b) Segment Assets and Liabilities
Segment assets include all operating assets used by a segment and
consist principally of operating cash, debtors, inventories and fixed
assets, net of allowances and provisions, which are reported as direct
offsets in the balance sheet. Segment liabilities include all operating
liabilities and consist principally of creditors and accrued
liabilities and do not include deferred income taxes. While most of the
assets/liabilities can be directly attributed to individual segments,
the carrying amount of certain assets/liabilities pertaining to two or
more segments are allocated to the segments on a reasonable basis.
Previous year figures have been re-grouped/re-cast/re-arranged,
wherever necessary, to confirm to current year classifications. the
figures for the current year are inclusive of the engineering plastics
Business and industrial Yarn Business for the period from 1 January
2009 to 31 March 2009 acquired from SRF polymers Limited, whereas the
previous year figures do not include the same. therefore, the
corresponding figures of the previous year are not comparable with
those of the current year
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| Source : Religare Technova | |
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