SRF Polymers

1.  Reserve and Surplus
 
 The Company is entitled for capital investment subsidy of Rs. 30 lakhs
 as per the Industrial policy (2003) of Uttaranchal Government for
 setting up the plant in the ME Pantnagar, District - Udham Singh Nagar,
 State - Uttaranchal. The Company is yet to file the application for
 availing this benefit.
 
 2.  Fixed Assets
 
 The company inter alia owns undivided interest to the extent of 74.67%
 in 1.29 acres of land along with a proportionate but, demarcated built
 up area thereon, at Manali Industrial Area, Manali, Chennai - 600 068
 pursuant to a Scheme of Amalgamation Arrangement and Reconstruction
 sanctioned by the Honble High Courts of Delhi and Madras. An Agreement
 of Mutual Covenants between SRF Limited and the Company was executed on
 8th September 2006 to record the vesting of title under the court
 scheme. This ownership in land is yet to be mutated in the name of the
 Company.
 
 3.  Loans and Advances
 
 a) The loans and advances include certain advances for purchase of
 material and liabilities created for some of such advances. These are
 pending matching, reconciliation and confirmation and the parities
 concerned.
 
 b) Rs. 9.16 Lakhs as interest free security deposit for accommodation,
 for various offices and officers, taken on lease.  (Previous year Rs.
 15.25 Lakhs)
 
 4.  Repairs & Maintenance
 
 Repairs and Maintenance to Plant & Machinery and Buildings include 
 stores and spares consumed of Rs. 292.50 Lakhs & Rs. 0.62 Lakhs 
 respectively (Previous year Rs. 97.53 lakhs and Rs. 0.14
 lakhs respectively).
 
 Having regard to the fact that there is a global contribution to
 gratuity fund and towards leave encashment the amount applicable to an
 individual employee is not ascertainable and accordingly contribution
 to gratuity fund and leave encashment have not been considered in above
 computation.
 
 * The director is entitled to a fixed remuneration irrespective of the
 profits or losses in accordance with the Schedule XIII of the Companies
 Act, 1956
 
 5.  Dues to Micro, Small and Medium Enterprises
 
 This information as required to be disclosed under the Micro, Small and
 Medium Enterprises Development Act, 2006 has been determined to the
 extent such parties have been identified on the basis of information
 available with the Company.  Accordingly, there were no interest due on
 the principal amount nor there was any necessity to pay interest for
 delayed payments in terms of Section 16 of the said Act.
 
 6.  Earning Per Equity Share
 
 Annualised earnings per equity share have been calculated based on the
 net loss after taxation of Rs 1399.32 lakhs (Previous Year Rs. 614.17
 lakhs) and the average number of equity shares of 6452615 (Previous
 Year 6452615).  Basic and diluted earning per share for the year is Rs
 -21.69 (Previous Year Rs 9.52)
 
 7.  Segment Reporting
 
 The segments of the company have been identified in line with the
 Accounting Standard on segment reporting (AS-17) taking into account
 the organization structure as well as the differential risks and
 returns of these segments.
 
 The companys reportable operating segments consist of the following
 two business groups:
 
 a) Fishnet Twine
 
 b) Engineering Plastics
 
 Segment revenue, Results and Capital Employed includes 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. Unallocated
 corporate assets mainly relate to investments.
 
 The company has no operations outside India and hence secondary segment
 namely geographical segment is not applicable.