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. 12965.89
 lakhs (Previous Year - Rs. 4283.70 lakhs).
 
 Further, the Company is to make investment in the following companies
 
 i) SRF Cord GmbH - Nil (Previous Year – Euro 98000).
 
 ii) SRF Holiday Home Limited – Rs. 353.00 lakhs (Previous Year – Nil)
 
 2.  CONTINGENT LIABILITIES NOT PROVIDED FOR
 
 a.  Claims against the Company not acknowledged as debts:
 
                                                 As at           As at
                                        March 31, 2011  March 31, 2010
                                           (Rs. lakhs)     (Rs. lakhs)
 
 Excise duty, customs duty and 
 service tax *@                                5865.44         5652.81
 
 Sales Tax** @                                  925.42          249.38
 
 Income Tax                                     976.37          897.00
 
 Stamp Duty****                                2881.55         2881.55
 
 Others***                                       94.43          210.10
 
 * Amount deposited Rs. 315.92 lakhs (Previous year - Rs. 222.60 lakhs)
 
 ** Amount deposited Rs. 7.16 lakhs (Previous Year - Rs. 7.16 lakhs)
 
 *** Amount deposited Rs. 8.00 lakhs (Previous Year – Rs. 119.06 lakhs)
 
 **** In the matter of acquisition of the Tyrecord Division at Malanpur
 from Ceat Limited the Collector of Stamps, Bhind (Madhya Pradesh) has
 by his order dated 07.11.2001 assessed the value of the subject matter
 of the Deed of Conveyance dated 13.06.1996 at Rs. 30300.00 lakhs and
 levied a stamp duty of Rs. 2372.50 lakhs and imposed a penalty of Rs.
 509.05 lakhs. The said demand was challenged before the High Court of
 Madhya Pradesh Bench at Gwalior. The High Court accepted the case of
 the Company that the subject matter of the Deed of Conveyance dated
 13.06.1996 is only the superstructures valued at Rs. 2776.18 lakhs and
 not the entire undertaking valued at Rs. 30300.00 lakhs as claimed by
 the State. Consequently, the High Court of Madhya Pradesh quashed the
 order and demands issued by the Collector of Stamps, Bhind (Madhya
 Pradesh) and allowed the writ petition by an order dated 29th November
 2004. Against the said order, the State of Madhya Pradesh preferred a
 Special Leave Petition before the Honble Supreme Court which the State
 of Madhya Pradesh has withdrawn to enable it to approach the Honble
 High Court of Madhya Pradesh at Gwalior in view of the change in law in
 the State of Madhya Pradesh relating to Letters Patent Appeal.
 
 @ As per Business Transfer Agreement with KAMA Holdings Limited, the
 liabilities of Rs. 1793.81 lakhs (Previous Year - Rs. 1813.21 lakhs)
 and Rs.  38.00 lakhs (Previous Year - Rs. 28.10 lakhs) respectively
 towards Excise Duty and Sales tax are covered under Representations and
 Warranties.
 
 All the above matters are subject to legal proceedings in the ordinary
 course of business. In the opinion of the management, the legal
 proceedings, when ultimately concluded, will not have a material effect
 on the results of the operations or financial position of the Company.
 
 b.  Liability on account of Bank Guarantees Rs. 1137.53 lakhs (Previous
 Year – Rs. 745.04 lakhs)
 
 c.  Guarantees given to a bank for repayment of financial facilities
 availed by wholly owned subsidiaries:
 
 (i) Nil [Previous Year – Baht 900.00 millions (Equivalent to USD 27.81
 millions)] and Nil (Previous Year – USD 6.00 millions). Outstanding
 amount as at the year end is Nil [Previous Year – Baht 825.70 millions
 (Equivalent to USD 25.52 millions)]
 
 (ii) USD 20 million (Previous Year – Nil). Outstanding amount as at the
 year end is USD 20 million (Previous Year – Nil)
 
 (iii) AED 10.35 million (Previous Year – Nil) and Euro 0.2 million
 (Previous Year – Nil). Outstanding amount as at the year end is Nil
 (Previous Year – Nil)
 
 d.  The Company has been served with show cause notices regarding
 certain transactions as to why additional customs / excise duty
 amounting to Rs. 76.04 lakhs (Previous year - Rs. 416.29 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.
 
 3.  MANAGERIAL REMUNERATION
 
 As there is a global contribution to gratuity fund, the amount
 applicable to an individual employee is not ascertainable and
 accordingly, contribution to gratuity fund in respect of directors has
 not been considered in the above computation. Further, the liability on
 account of compensated absences in respect of directors has not been
 considered above, since the provision is based on an actuarial basis
 for the Company as a whole.
 
 4.  DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES
 
 Sundry Creditors include the following dues to micro and small
 enterprises covered under The Micro, Small and Medium Enterprises
 Development Act, 2006 (MSMED) to the extent such parties have been
 identified from the available information.
 
 5.  RELATED PARTY DISCLOSURES UNDER AS-18 RELATED PARTY DISCLOSURES
 
 As per Accounting standard AS –18 Related Party Disclosures the
 Companys related parties and transactions with them are disclosed
 below:
 
 A.  NAME OF RELATED PARTY AND NATURE OF RELATED PARTY RELATIONSHIP
 
 By virtue of control   Joint Venture   Key Management Enterprises over
                                                       which (c) have
 (Subsidiaries)                         Personnel      significant 
                                                       influence
 
 (a)                         (b)            (c)            (d)
 
 SRF Overseas 
 Limited               Jingde Yangtze-  Mr. Arun Bharat KAMA Holdings
                                                        Limited*
 
 SRF Transnational 
 Holdings              Ganga Fluorine   Ram,            Bhairav 
                                                        Farms Private
                                                        Limited*
 Limited               Chemical Co.     Chairman        Narmada Farms 
                                                        Private Limited*
 
 SRF Properties
 Limited               Limited          Mr. Ashish 
                                        Bharat          SRF Polymers
                                                        Investments
 
 SRF Holiday Home 
 Limited               (upto February 
                       26,              Ram             Limited*
 
 SRF Energy Limited    2011)            Managing 
                                        Director        KAMA Realty 
                                                        (Delhi) 
                                                        Limited*
 
 SRF Fluorochemicals 
 Limited               (Refer note 11   Mr. Kartikeya 
                                        Bharat          Shri
                                                        Educare Limited
 
 SRF Fluor Private 
 Limited               below)           Ram             Shri Educare 
                                                        Maldives Private
 
 SRF Global BV                          Deputy 
                                        Managing        Limited
 
 SRF Tech Textile BV                    Director        SRF Foundation
 
 SRF Technical 
 Textiles (Thailand)                    Mr. K. 
                                        Ravichandra,    Karm Farms
                                                        Private Limited*
 Limited                                Whole Time      Srishti Westend 
                                                        Greens Farms
 SRF Industex 
 Belting (Pty)      
 Limited                                Director        Private 
                                                        Limited*
 
 * Pursuant to the Scheme of Arrangement between Narmada Farms Private
 Limited, Bhairav Farms Private Limited and SRF Polymers Investments
 Limited (the transferor companies) and Srishti Westend Greens Farms
 Private Limited, Karm Farms Private Limited, KAMA Realty (Delhi)
 Limited and KAMA Holdings Limited (the transferee companies) and
 their respective shareholders and creditors :-
 
 a) real estate divisions of Narmada Farms Private Limited, Bhairav
 Farms Private Limited and SRF Polymers Investments Limited was
 transferred and vested in Srishti Westend Greens Farms Private Limited,
 Karm Farms Private Limited and KAMA Realty (Delhi) Limited respectively
 ; and
 
 b) investment divisions of Narmada Farms Private Limited, Bhairav Farms
 Private Limited and SRF Polymers Investments Limited were transferred
 and vested in KAMA Holdings Limited with effect from March 31, 2011.
 
 The transferor companies had conducted their business in respect of
 their respective real estate divisions and investment divisions in
 trust and on behalf of the respective transferee companies from the
 appointed date of the said Scheme - April 1, 2010
 
 6.  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
 
 ii) Defined benefit plans
 
 a) Gratuity
 
 b) Compensated absences – earned leaves
 
 The Company assesses these assumptions with its projected long-term
 plans of growth and prevalent industry standards.
 
 Long Term Retention Pay
 
 The Company has a Long Term Retention Pay Plan extending over 3 years.
 The plan covers employees selected on the basis of their current band
 and their long term value to the Company. The incentive is payable in
 three years starting from financial year 2010-11 subject to achievement
 of certain performance ratings. Based on the management estimate, the
 Company has accrued Rs. 295.52 lakhs (Previous Year – Rs. 93.00 lakhs)
 towards this plan till March 31, 2011.
 
 Superannuation - Defined Contribution Plan where contributions are made
 to a Trust which in turn contributes to ICICI Prudential Life Insurance
 Co. Limited
 
 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 employees salary. From
 1st 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 recognized
 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
 
 7.  SEGMENT REPORTING 
 
 A.  Business Segments
 
 Based on the guiding principles laid down in Accounting Standard (AS) -
 17 Segment Reporting, the Companys business segments include:
 
 - Technical Textiles business: includes nylon tyre cord fabric, belting
 fabric, coated fabric, laminated fabric, polyester tyre cord fabric and
 industrial yarns and its research and development
 
 - Chemicals and Polymers business: includes refrigerant gases,
 chloromethanes, pharmaceuticals, Certified Emissions Reductions &
 Allied products, Engineering Plastics business and its research and
 development.
 
 - Packaging Film 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.
 
 8.  FOREIGN CURRENCY EXPOSURE
 
 SRF has entered into long term contracts for the transfer / sale of
 Certified Emission Reductions (CERs) with reputable global buyers. The
 cash flow from these sales forms the mainstay of SRFs multi-year
 capital expansion plan, and as such these cash flows need to be both
 stable and secure. To ensure stability of revenues in foreign currency
 from the transfer / sale of CERs, the Company has entered into forward
 contracts with banks to part sell Euros to be earned out of future CER
 sales.
 
 9.  Schedules 1 to 8 form an integral part of the Balance Sheet,
 Schedules 9 to 13 form and integral part of the Profit and Loss Account
 and Schedule 14 and the Statement of Additional Information form an
 integral part of the Balance Sheet and Profit and Loss Account.
 
 10.  Previous year figures have been regrouped / recast / rearranged,
 wherever necessary, to conform to current year classifications.