M.R.F. Ltd. — Annual Report 2019

May 2, 2019

MRF Limited, Regd. Office : 114, Greams Road, Chennai 600 006 E-mail : mlfshare@mrfmai|.com; Te|.: 044-28292777; Fax : 91-44-28295087 CIN : L25111TN1960PLC004306; Website: www.mrftyres.com

071/SH/SE/BOARD/MAY-2019/KGG 2nd May,2019

ofNationalLtdStockIndiaExchange5th FloorExchangePlaza,Bandra-KurlaPlotBlockNo.C/1G400BandraMumbai051Complex(E),	LtdStockBombayExchangeFloorTowers24P JMumbai400Dalal001Street,

Dear Sir,

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH,2019

Please refer to our letter dated 17th April,2019.

Pursuant to the applicable regulations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,2015, please find the following:

• 1. Audited financial results (standalone and consolidated) for the year ended 31St March,2019 as approved by the Board of Directors in the Board Meeting held today. Declaration with respect to Auditors' Report with unmodified opinion is given in Audited financial results.
• 1. Auditors' Report for audited financial results for both standalone and consolidated for the year ended 31St March,2019.
• 1. The Board of Directors have recommended a final dividend of Rs.54/-each per share on paid-up equity share capital of the Company. The Company has already declared and paid two interim dividends of Rs.3/— each per share for the financial year ended 315t March,2019. With the recommendation of final dividend of Rs.54/- per share, the total dividend for the above period works out to Rs.60/— per share.

• 1. The Register of Members will remain closed from 3rd August,2019, to 9th August,2019 (both days inclusive) for the purpose of payment of final dividend and Annual General Meeting.
• 1. The date of payment of dividend is on or after 16th August,2019 subject to the approval of the shareholders in the ensuing Annual General Meeting.
• 1. The Annual General Meeting of the Company is scheduled to be held on 9'h August,2019.

The meeting of the Board of Directors of the Company commenced at 11.00 am and concluded at .'..L59... p.m.

Kindly take the same on record.

Thanking you.

Yours faithfully For MRF LIMITED

L9>COMPANY SDHAN3\33THXUK SECRETARY

Statement of Standalone/Consolidated Financial Results for the Quarter and Year ended 31st March, 2019							Rs.Crores
			Standalone			Consolidated
		Quarter ended31.03.2019 31.12.2018	31.03.2018	Year ended31.03.2019	31.03.2018	Year ended Year ended31.03.2019	31.03.2018
PARTICULARS	Unaudited(ReferNote 2)	Unaudited	Unaudited(ReferNote 2)	Audited	Audited	Audited	Audited
i Revenue from Operations	4.073.45	4,033.76	3,835.50	15,837.00	15,181.05	16,062.46	15,364.97
Il Other Income	109.47	125.75	109.25	417.47	328.50	421.73	330.65
$III$ Total Income( $I * II$ )	4,182.92	4,159.51	3,944.75	16,254.47	15,509.55	16,484.19	15,695.62
IV Expenses
a) Cost of materials consumed	2,588.21	2,712.49	2,212.86	10,220.40	8,946.93	10,292.57	8,985.38
b) Purchase of stock-in-trade	2.80	5.99	9.30	29.86	44.89	30.60	45.96
c) Changes in inventories of finished goods, Stock-in-trade and work-in-progress	(109.33)	(244.84)	65.00	(608.60)	76.04	(613.83)	77.61
d) Excise Duty					405.15		410.59
e) Employee benefits expense	286.37	297.92	271.92	1,144.28	1,074.65	1,165.28	1.092.36
f) Finance costs	57.31	63.14	64.83	247.79	245.17	267.31	253.12
g) Depreciation and amortisation expense	214.56	205.20	186.71	806.27	705.34	807.60	706.72
h) Other expenses	734.17	710.35	620.27	2,805.58	2,409.47	2,882.48	2,471.23
Total expenses(IV)	3,774.09	3,750.25	3,430.89	14,645.58	13,907.64	14,832.01	14,042.97
V Profit before Exceptional Items and Tax ( III-IV)	408.83	409.26	513.86	1,608.89	1,601.91	1,652.18	1,652.65
VI Exceptional Items						÷
VII Profit before Tax	408.83	409.26	513.86	1,608.89	1,601.91	1,652.18	1,652.65
VIII Tax expense:	56.00	68.00	125.37	330.00	390.77	339.17	402.14
(1) Current Tax	59.00	62.00	43.17	182.02	118.86	182.40	118.90
(2) Deferred Tax	293.83	279.26	345.32	1,096.87	1,092.28	1,130.61	1,131.61
IX Profit for the period from Continuing operations (VII - VIII)
X Other Comprehensive Income(OCI)
A(i) Items that will not be reclassified to profit or loss	(6.74)	(1.00)	15.29	(9.74)	(4.28)	(9.63)	(3.93)
(ii) Incometax relating to items that will not be reclassified to profit or loss	2.35	0.35	(5.29)	3.40	1.48	3.37	1.48
B(i) Items that will be reclassified to profit or loss	(10.94)	(29.88)	4.19	(16.56)	1.37	(0.30)	(0.64)
(ii) Incometax relating to items that will be reclassified to profit or loss	3.82	10.44	(1.45)	5.79	(0.46)	5.79	(0.46)
XI Total Comprehensive Income for the year attributable to:
Owners of the Company	282.32	259.17	358.06	1,079.76	1,090.39	1,129.84	1,128.06
Non Controlling Interest						0.01
XII Paid up Equity Share Capital (Face Value of Rs.10/- each)	4.24	4.24	4.24	4.24	4.24	4.24	4.24
XIII Paid up Debt Capital *	500.00	500.00	500.00	500.00	500.00	500.00	500.00
XIV Earnings Per Share for Continuing Operations (of Rs.10/- each) (not annualised):
Basic (Rs. Per Share)	692.82	658.46	814.20	2,586.26	2,575.43	2,665.82	2,668.17
Diluted (Rs. Per Share)	692.82	658.46	814.20	2,586.26	2,575.43	2,665.82	2,668.17
XV Other Equity excluding Revaluation Reserve				10,649.06	9,599.96	10,833.11	9,733.95
XVI Debenture Redemption Reserve	115.53	113.17	103.40	115.53	103.40	115.53	103.40
XVII Net Worth				10,653.30	9,604.20	10,837.47	9,738.31
XVIII Debt-Equity Ratio **				0.14	0.16	0.14	0.15
XIX Debt service coverage Ratio ***				8.42	5.41	8.11	5.45
XX Interest service coverage Ratio ****				10.88	10.68	10.32	10.65
DASSOSee accompanying Notes to the financial results						OFNDER

'ElandaloneIConsolidated Statement of Assets and LiabilitiesRs.Crores
	StandaloneAs at	As at	ConsolidatedAs atAs at
Particulars	31.03.2019	31.03.2018	31.03.2019	31.03.2018
_ASSETS	Audited	Audited	Audited	Audited
(1) Non—Current Assets
(a) Property, Plant and Equipment	6,751.32	6,057.84	5,769.77	6,074.70
(0) Capital Work-in-Progress	1,403.19	1,078.84	1,403.47	1,078.91
(6) Other Intangible Assets	16 20	17.47	16.23	17.47
(d) Financial Assets
(i) Investments	1,078.00	1,092.42	1,057.00	1,071.27
(ii) Loans	0.31	1 57	D 36	163
(iii) Other financial assets	16.03	14.76	58.05	17,13
(2) Deieried Tax Asset(Net)			D 06	D 26
(1) other non—current assets(2) Current Assets	642.13	342.31	642.52	342.61
(a) Inventories	2,950.93	2,172.07	2,993.20	2,197.33
(5) Financial Assets
(1) Investments	2,770.39	3,054.02	2,797.68	3,073 73
(ii) Trade Receivables	2,361.62	2,135.92	2,362.71	2,149.93
(in) Cash and cash Equivalents	57.52	98.79	101.95	193.06
(iv)Bank balances other than Cash and Cash Equivalents	2.55	39.84	2.55	39.84
(v) Loans	0.61	1.90	0.61	1.90
(vi) Other financial assets	13.74	8.64	14.02	8.63
(c) Other current assets	162 94	185.41	170.88	210.08
(d) Assets classified as held for sale	0.20	-	0.20	~
TOTAL ASSETS	18,227.68	16,301.80	18,441.26	16,478.48
EQUITY AND LIABILITIESEquity
(a) Equity Share Capital	4.24	4.24	4.24	4.24
(b) Other Equity	10,649.06	9,599.96	10,833.11	9,733.95
(c) Non Controlling Interest	~	-	0.12	0.12
Total EquityLiabilities	10 653.30	9 604.20	10 837.47	9 738.31
(1) Non—Current Liabilities
(a) Financial Liabilities
(i) Borrowings	1,054.73	1,319.33	1,054 73	1,319.33
(b) Provisions	167.50	152.74	165.11	1 53.04
(c) Delerred Tax Liabilities (Net)	839.20	619.01	840.20	619.83
((1) Other non-current liabilities(2) Current Liabilities	76.29	58.08	76 32	5B 03
(a) Financial Liabilities
(i) Bonuwings	408.86	229.08	1,047.66	691.36
(ii) Trade Payables:
(A) Total outstanding dues 01 micro enterprises and Small enterprises and	21.25	17.33	21.25	17.33
(B) Total outstanding dues of creditors other than micro enterprises and Small enterprises	2,306.39	1,981.63	1,688.13	1,551.18
(III) other Financial Liabilities	761.65	530.41	763.32	533.71
(b) other Current Liabilities	1,781,13	1,538.90	1,783.82	1,640.64
(:2) Provisions	149.23	142 83	149.48	142.73
((1) Current Tax Liabilities (Net)	7.85	8.26	10.77	12.94
Total Liabilities	7 574.33	6 697.60	7 603.79	6 740.17
TOTAL EQUITY AND LIABILITIES	13,227.68	16,301.80	18,441.26	16,478.48

Notes:

(1)The above Financial results were reviewed by the Audit Committee and approved by the Board of Directors at Its meeting held on 2nd May,2019.

(2)The figures for the Quarter ended 31st March, 2019 and 315t March,2018 are the balancing figures between the audited figures in respect of the full financial year and the year-to—date figures upto the third Quarter of the Financial year.

(3)Effective 1st April,2l)18. the group has adopted Ind AS 115 " Revenue from Contracts with Customers" using the cumulative effect method. The application of Ind AS 115 did not have any significant impact on recognition and measurement of revenue in the financial results of the group.

(4)The group, except for MRF Corp Ltd, a subsidiary company, is engaged interalia in the manufacture of Rubber Products such as Tyres, Tubes, Flaps, Tread Rubber and Conveyor Belt These in the context of IND-AS 103 Operating Segment are considered to constitute one single primary segment MRF Corp Ltd is engaged in the manufacture of Speciality Coatings and its revenues, results and assets do not meet the criteria specified for reportable segment prescribed in the IND-AS. The group's operations outside India do not exceed the quantitative threshold for disclosure envisaged in the IND-AS, Non-reportable segments have not been disclosed as unallocated reconciling item in view of their materiality In view of the above, primary and secondary reporting disclosures for business/geographical segment are not applicable.

(5)The Board of Directors has recommended a final dividend of Rs.54/— per share which along with two interim dividends of R53 each already paid works out to Rs.60/- per share for the year ended 31st March,2019.

(6)The Company's rating agencies,i.e.CARE and ICRA has reaffirmed its rating of "CARE AAA" I " [ICRA] AAA" for Non Convertible Debentures: CARE has also reaffirmed the rating of "CARE AAA" for Long term Banking Facility and, " CARE A1 +" for Short term Banking Facility.

(1)In terms of SEBI Circular CiR/CFD/CMD/56/2016 dated 27th May, 2016 the Company hereby declares that the auditors have

issued audit reports both for standalone and consolidated financial results with unmodified opinion for the year ended 31 March 2019

(8)The Listed Secured Redeemable Non Convertible Debentures of the Company aggregating to Rs.500 Crore as on 31st March,2019 are secured by way of legal mortgage of Company's Land at Taluka KadiDistrict Mehsana,Gujarat, India and hypothecation by way of fist charge on Plant & Machinery at the Company's Plants at Perambalur, Trichy, Tamilnadu, equivalent to the outstanding amount.

(9)0etails of Secured Non-Convertible Debentures are as follows:

Sl No			Provrous Due Date(Pflld on Due date)	Next Due Date
	Particulars	Principal	Interest	l',"Imp.I(Part redemption)	lnteresl
	I [0.09% Non-Convertible Debentures -500 Crs	-	28'h May 2018	27'" May 20I9	27'" May 2019

(10)The figures for the previous periods have been regrouped wherever necessary.

" Paid up Debt Capital represents Secured Redeemable Non-Convertible Debentures.

• " Debt to Equity: Long Term Debts/Total Net Worth
• "" Debt Service Coverage Ratio : EBDlT/(lnterest + Principal Repayment during the period)
• "" Interest Service Coverage Ratio : EBDITllnterest Expenses

For MRF LIMITED L'Mtk

Place: Chennai RAHUL MAMMEN MAPPILLAI

Date: 2nd May, 2019 Managing Director

Chartered Accountants, Chartered Accountants, 501-D, 5"1 Floor BADHE HOUSE Poonam Chambers A Wing 6-3-788/36 & 37/A Dr. Annie Besant Road, Worii Durga Nagar, Ameerpet, MUMBAI-400 O18 HYDERABAD-500 016

SCA AND ASSOCIATES MAHESH, VIRENDER & SRIRAM

• 1. We have audited the accompanying Statement of Standalone Financial Results of MRF Limited ("the Company") for the year ended 31st March, 2019 ("the Statement"), being submitted by the Company pursuant to the requirements of Regulation 33 and Regulation 52 of the SEBl [Listing Obligations and Disclosure Requirements) Regulations, 2015, as modified by Circular No.CiR/CFD/FAC/62/2016 dated July 5, 2016.
  • 1. This Statement is the responsibility of the Company's Management and is approved by the Board of Directors. The statement, as it relates to the quarter ended 315' March, 2019, has been compiled from the related standalone financial statements prepared in accordance with lndian Accounting Standard 34 interim Financial Reporting" and are the derived figures between the audited figures in respect ofthe full financial year and year-to-date figures up to the third quarter of the financial year, subjected to Limited Review and as it relates to the year ended 31" March, 2019 has been compiled from the related annual standalone financial statements prepared in accordance with the lndian Accounting Standards prescribed under Section 133 of the Companies Act, 2013 read with relevant Rules issued there under and other accounting principles generally accepted in India. Our responsibility is to express an opinion on these standalone financial results based on our audit of such standalone financial statements for the year ended 31st March, 2019 and our review ofstandalone financial results for the quarter ended 31st March, 2019.
  • 1. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of lndia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Statement is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the statement. The procedures selected depend on the auditor's judgment, including the assessment ofthe risks of material misstatement of the statement, whether due to fraud or error.

In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation and fair presentation of the statement in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors, as well as evaluating the overall presentation ofthe statement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

1. In our opinion and to the best ofour information and according to the explanations given to us, the standalone financial results:

• it is presented in accordance with the requirements of Regulation 33 and Regulation 52 ofthe SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as modified by Circular No.CIR/CFD/FAC/62/2016 dated July 5, 2016; and
• ii. gives a true and fair view in conformity with the aforesaid Indian Accounting Standards and other accounting principles generally accepted in India, of the profit and total Comprehensive Income and other financial information of the Company for the year ended 31st March, 2019.

Chartered Accountants Chartered Accountants

Shivratan Partner Partner

Place: Chennai Date ZHdMay, 2019

Chartered Accountants, Chartered Accountants. 501-D. 5th Floor BADHE HOUSE Poonam Chambers A Wing 6-3-788/36 & 37/A Dr. Annie Besant Road, Worli Durga Nagar, Ameerpet, MUMBAI-400 O18 HYDERABAD-500 016

SCA AND ASSOCIATES MAHESH, VIRENDER & SRIRAM

• 1. We have audited the accompanying Statement of Consolidated Financial Results of MRF Limited (hereinafter referred to as "the Holding Company") and its subsidiaries (the Holding Company and its subsidiaries together referred to as "the Group"), for the year ended 31st March, 2019 ("the Statement"). being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as modified by Circular No.CIR/CFD/FAC/62/2016 dated July 5, 2016.
• 1. This Statement is the responsibility of the Holding Company's Management and is approved by the Board of Directors. This statement, as it relates to the year ended 31st March, 2019 has been compiled from the related consolidated financial statements which has been prepared in accordance with the Indian Accounting Standards prescribed under Section 133 of the Companies Act, 2013 read with relevant Rules issued there under and other accounting principles generally accepted in India. Our responsibility is to express an opinion on the Statement based on our audit ofsuch consolidated financial statements.
• 1. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Statement is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the statement. The procedures selected depend on the auditor's judgment. including the assessment of the risks of material misstatement of the statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation and fair presentation of the statement in order to design audit procedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on whether the company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating appropriateness ofthe accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors. as well as evaluating the overall presentation of the statement.

• In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of the reports of the other auditors on separate financial statements and the other information of subsidiaries as referred to in Paragraph 5 below, the Statement;
  • i. includes the results of entities as given below:

MRF Corp Limited MRF International Limited MRF Lanka (Private) Limited MRF SG Pte Ltd.

• ii. is presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements] Regulations, 2015, as modified by Circular No.ClR/CFD/FAC/62/2016 dated July 5, 2016; and
• iii. gives a true and fair view in conformity with the aforesaid Indian Accounting Standards and other accounting principles generally accepted in India, of the profit, total comprehensive income and other financial information of the Group for the year ended 31st March, 2019.
• We did not audit the financial statements of certain subsidiaries included in the consolidated financial results, whose financial statements reflect total assets of Rs.894.79 Crores as at 31st March, 2019, total revenues of Rs.1816.70 Crores, total net profit after tax of Rs.29.87 Crores and total comprehensive income of Rs.29.95 Crores for the year ended on that date, as considered in the consolidated financial results. These financial statements have been audited by other auditors whose reports have been furnished to us by the Management and our opinion, on the Statement, insofar as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on the reports of the other auditors. 1p B R Mahe /

Chartered Accountants Chartered Accountants Firm Reg.No.101174-W \

Shivratan Partner Partner Mem.No.104180 Mem.No.18628

Place: Chennai Date 2ND May, 2019

For SCA AND ASSOCIATES For MAHESl—l, VIRENDER & SRlRAM Firm Reg.No.001939S