M.R.F. Ltd. — Annual Report 2020

Jun 29, 2020

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

071/SH/SE/BOARD/JUNE-2020/KGG/1 29 June,2020 /

National Stock Exchange of India Ltd Exchange Plaza 5'" FloorPlot No.C/1G Block Bandra-KurlaComplex Bandra (E) Mumbai 400 051	Bombay Stock Exchange LtdFloor 24 P J TowersDalal Street Mumbai 400 001axel:
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[AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH, 2020 | 7

Dear Sir,

Please refer to our letter dated 18th June,2020.

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 31% March,2020°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 31** March,2020.
• 1. The Board of Directors have recommended a final dividend of Rs.94/- 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 31% March,2020/ With the recommendation of final dividend of Rs. 94/-" per share, the total dividend for the above period works out to Rs.100/- per equity share of Rs 10/- each.

In accordance with the Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/79 dated 12" May 2020 granting relaxation from the provisions of Regulation 47 of the the SEB! (Listing Obligations and Disclosure Requirements) Regulations, 2015, the above financials results will not be advertised in the newspapers. However, the same will be available on Company's website.

The meeting of the Board of Directors of the Company commenced at 11.00 am and concluded at.\2:.2a%.P:0a°

Kindly take the same on record. v

Thanking you. Yours faithfully For MRF LIMITED ee

S DHANVANTH KUI \GY-COMPANY SECRETARY

SCA AND ASSOCIATES MAHESH, VIRENDER & SRIRAM. 501 D, POONAM CHAMBERS, A WING "BADHE HOUSE" 6-3-788/36437A, Dr, ANNIE BESANT ROAD, WORLI DURGANAGAR COLONY MUMBAI ~ 400 018. AMEBERPET HYDERABAD - 500 016

INDEPENDENT AUDITOR'S REPORT To 'The Board of Directors, MRF LTD.

Report on the Audit of Standalone Annual Financial Results

• ae: ' 1. We have audited the accompanying Standalone annual financial results ("the Statement") of MRF Ltd ("the Company") for the year ended 31* March, 2020 ("the Statement"), attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended.
• 1. Inour opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone annual financial results:
  • a) are presented in accordance with the requirements of Regulation 33 of the Listing Regulations in this regard; and
  • ) give true and fair view in conformity with the recognition and measurement principles laid down in the applicable Indian Accounting Standards, and other accounting. principles generally In India, of the net profit and other comprehensive income and other financial information for the year ended 31 March 2020

Basis for opinion

1. We conducted our audit in accordance with the Standards on Auditing ("SAS") specified under section 'the Companies Act, 2013 ("the Act'). Our responsibilities under those SAs are further 'in the Auditor's Responsibilities for the Audit of the Standalone Annual Financial Results section of our report. We are independent of the Company, in accordance with the Code of issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act, and the Rules thereunder, and we have fulfilled our other ethical in accordance with these requirements and the Code of Bthics. We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our 'opinion on the Standalone annual financial results,

Emphasis of Matter

4 We draw your attention to note 12 to the Statement of Standalone Annual Financial Results for the year ended March 31, 2020, which describes the impact of the outbreak of Coronavirus (COVID-19) on the business operations of the Company. In view of the highly uncertain economic environment, a definitive assessment of the impact an the subsequent periods is highly dependent upon circumstances as they evolve.

(Our conclusion is not modified in respect of this matter.

Management's and Board of Directors' Responsibilities for the Standalone Annual Financial

• 1. These standalone annual financial results have been prepared on the basis of the standalone annual financial statements,
• 6The Company's Management and the Board of Directors are responsible for the preparation and resentation of these standalone annual financial results that give a true and fair view of the net profit and other comprehensive income and other financial information in accordance with the recognition and measurement principles laid down in Indian Standards under Seton 153 ofthe Act and oer eccounting principles goncaly seecied i vent one
• 1. Inpreparing the standalone annual financial results, the Management and the Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concer and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, of 'has no realistie alternative but to do so,
• 1. The Board of Directors is responsible for overseeing the Company's financial reporting process

Auditor's Responsibilities for the Audit of the Standalone Annual Financial Results

• 1. Our objectives are to obtain réasonable assurance about whether the standalone annual financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are 4f, individually or in the aggregate, they could reasonably be expected to influence the esonomic decisions of users taken on the basis of these standalone annual financial results.
• 1. As part of ann audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
  • * Identify and assess the risks of material misstatement of the standalone annual financial sesults, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for 'our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional 'omissions, misrepresentations, or the override of internal control.
  • * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, Under Section 143(3Y() of the Act, we are also responsible for expressing our opinion through a separate report on the complete set of financial statements on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.

• +Evaluate the appropriateness of accounting policies used and the reasonableness of accounting 'estimates and related disclosures in the standalone financial results made by the Management and Board of Directors.
• 'Conclude on tie appropriateness of the Management and Board of Directors use of the going concer basis of accounting and, based on the audit evidence obtained, whether a material inty exists related to events or conditions that may cast significant doubt on the appropriateness of this assumption. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the standalone annual financial results of, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going, concern.
• • Evaluate the overall presentation, structure and content of the standalone annual financial results, including the disclosures, and whether the standalone annual financial results represent the underlying transactions and events in 2 manner that achieves fair presentation,

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and ather matters that may reasonably be thought to bear on our independence, and 'where applicable, related safeguards.

(Other Matters

1. The standalone annual financial results include the results for the quarter ended 31 March 2020 being the balancing figure between the audited figures in respect of the full financial year and the 'unaudited year to date figures up to the third quarter of the current financial year which were subject to limited review by us.

ATESFor SCA AND.Chartered.e]FRN 101176Ws(SHIVRATAN AGARWAL)Partner M.No. 104180'UDIN: a 201041 BOAAAAGY 926!298 June, 2020	For MAHESH, VIRENDER & SRIRAMUDIN: ae 200\86 28BAAKAAM AAAAA 2790*29% June, 2020

	MRF LIMITED
	Regd.Office: 114, Greams Road, Chennai - 600 006CIN: L25111TN1960PLC004306; Website: www.mrftyres.com; Email: mrfshare@mrfmail.com; Ph: 044-28292777 FAX: 28295087
	Rs.CroresStatement of Standalone Audited Financial Results for the Quarter and Year ended 31st March,2020
			Quarter ended		Year ended
	PARTICULARS	31.03.2020Audited(	31.12.2019	31.03.2019Audited(	31.03.2020	31.03.2019
		Refer Note 2)	Unaudited	Refer Note 2)	Audited	Audited
I	Revenue from Operations	3,625.18	4,008.89	4,073.45	15,991.14	15,837.00
II	Other Income	57.48	73.34	109.47	330.50	417.47
III	Total Income( I + II )	3,682.66	4,082.23	4,182.92	16,321.64	16,254.47
IV	Expenses
	a) Cost of materials consumed	2,137.89	2,312.82	2,588.21	9,461.73	10,220.40
	b) Purchase of stock-in-trade	6.67	4.25	2.80	22.30	29.86
	c) Changes in inventories of finished goods, Stock-in-trade and work-in-progress	(72.14)	76.19	(109.33)	24.88	(608.60)
	d) Employee benefits expense	344.09	337.95	286.37	1,320.51	1,144.28
	e) Finance costs	69.15	70.44	57.31	274.26	247.79
	f) Depreciation and amortisation expense	266.45	248.97	214.56	980.62	806.27
	g) Other expenses	638.74	667.48	734.17	2,838.02	2,805.58
	Total expenses(IV)	3,390.85	3,718.10	3,774.09	14,922.32	14,645.58
V	Profit before Exceptional Items and Tax ( III-IV)	291.81	364.13	408.83	1,399.32	1,608.89
VI	Exceptional Items	-	-	-	-	-
VII	Profit before Tax	291.81	364.13	408.83	1,399.32	1,608.89
VIII	Tax expense (Refer Note 11) :
	(1) Current Tax	73.80	101.00	56.00	401.80	330.00
	(2) Deferred Tax	(451.46)	26.50	59.00	(397.46)	182.02
IX	Profit for the period from Continuing Operations ( VII - VIII)	669.47	236.63	293.83	1,394.98	1,096.87
X	Other Comprehensive Income( OCI)
	A(i) Items that will not be reclassified to profit or loss	(2.92)	(8.22)	(6.74)	(26.82)	(9.74)
	(ii) Incometax relating to items that will not be reclassified to profit or loss	(1.60)	2.87	2.35	6.75	3.40
	B(i) Items that will be reclassified to profit or loss	9.34	(0.87)	(10.94)	13.98	(16.56)
	(ii) Incometax relating to items that will be reclassified to profit or loss	(1.90)	0.31	3.82	(3.52)	5.79
XI	Total Comprehensive Income for the Period/Year	672.39	230.72	282.32	1,385.37	1,079.76
XII	Paid up Equity Share Capital ( Face Value of Rs.10/- each)	4.24	4.24	4.24	4.24	4.24
XIII	Paid up Debt Capital *	340.00	340.00	500.00	340.00	500.00
XIV	Earnings Per Share for Continuing Operations (of Rs.10/- each) (not annualised):
	Basic (Rs. Per Share)	1,578.51	557.94	692.82	3,289.16	2,586.26
	Diluted (Rs. Per Share)	1,578.51	557.94	692.82	3,289.16	2,586.26
XV	Other Equity excluding Revaluation Reserve	-	-	-	12,000.11	10,649.06
XVI	Debenture Redemption Reserve	-	75.53	115.53	-	115.53
	XVII Net Worth				12,004.35	10,653.30
	XVIII Debt-Equity Ratio **				0.10	0.14
XIX	Debt service coverage Ratio ***				4.03	6.43
XX	Interest service coverage Ratio ****				10.62	10.65
	See accompanying Notes to the financial results

Standalone Statement of Assets and Liabilities		Rs.Crores
	StandaloneAs at	As at
Particulars	31.03.2020Audited	31.03.2019Audited
ASSETS
(1) Non-Current Assets
(a) Property, Plant and Equipment	8,820.72	6,751.32
(b) Capital Work-in-Progress	1,734.56	1,403.19
(c) Other Intangible Assets	28.46	16.20
(d) Financial Assets
(i) Investments	26.53	1,078.00
(ii) Loans	12.22	0.31
(iii) Other financial assets	18.22	16.03
(e) Non Current Tax Asset(Net)	232.22	207.44
(f) Deferred Tax Asset(Net)	-	-
(g) Other non-current assets(2) Current Assets	323.37	434.69
(a) Inventories	2,852.69	2,950.93
(b) Financial Assets
(i) Investments	1,513.65	2,770.39
(ii) Trade Receivables	2,257.03	2,361.62
(iii) Cash and cash Equivalents	1,104.23	57.52
(iv)Bank balances other than Cash and Cash Equivalents	2.62	2.55
(v) Loans	2.89	0.61
(vi) Other financial assets	50.75	33.91
(c) Other current assets	173.95	142.77
(d) Assets Classified as held for Sale	-	0.20
TOTAL ASSETS	19,154.11	18,227.68
EQUITY AND LIABILITIESEquity
(a) Equity Share Capital	4.24	4.24
(b) Other Equity	12,000.11	10,649.06
Total EquityLiabilities(1) Non-Current Liabilities	12,004.35	10,653.30
(a) Financial Liabilities
(i) Borrowings	779.03	1,054.73
(ii) Other Financial Liabilities	327.48	-
(b) Provisions	189.16	167.80
(c) Deferred Tax Liabilities (Net)	427.83	839.20
(d) Other non-current liabilities(2) Current Liabilities	250.64	76.29
(a) Financial Liabilities
(i) Borrowings	241.99	408.86
(ii) Trade Payables:
(A) total outstanding dues of micro enterprises and Small enterprises and	17.02	21.25
(B) total outstanding dues of creditors other than micro enterprises and Small enterprises	2,323.12	2,306.39
(iii) Other Financial Liabilities	730.63	761.65
(b) Other Current Liabilities	1,709.78	1,781.13
(c) Provisions	153.08	149.23
(d) Current Tax Liabilities (Net)	-	7.85
Total Liabilities	7,149.76	7,574.38
TOTAL EQUITY AND LIABILITIES	19,154.11	18,227.68

MRF LIMITED
AUDITED STANDALONE CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2020				(Rupees Crores)
			Year ended
	31st March 2020		31st March 2019
A. CASH FLOW FROM OPERATING ACTIVITIES :
NET PROFIT BEFORE TAX		1,399.32		1,608.89
Adjustment for :
Depreciation	980.62		806.27
Reversal of Impairment of Assets / Financial Assets	(0.09)		(0.10)
Unrealised Exchange (Gain) / Loss	(7.27)		1.61
Government Grant Accrued	(0.02)		-
Impairment of Financial Assets	0.14		-
Finance CostInterest Income	274.26(15.27)		247.79(10.39)
Dividend Income	(0.12)		(0.13)
Loss / (Gain) on Sale / Disposal of Property Plant and Equipment	(0.54)		5.90
Fair Value changes in Investments	(239.43)		(294.86)
Fair Value changes in Financial Instruments	59.62		41.96
Loss / (Gain) on Sale of Investments	(13.28)		(9.13)
Bad Debts written off	0.02	1,038.64	0.25	789.17
OPERATING PROFIT/(LOSS) BEFORE WORKING CAPITAL CHANGES		2,437.96		2,398.06
Trade receivables	118.73		(230.46)
Other receivables	(56.36)		13.28
Inventories	98.24		(778.86)
Trade Payable and Provisions	3.94		343.40
Other liabilities	(89.04)	75.51	39.50	(613.14)
CASH GENERATED FROM OPERATIONS		2,513.47		1,784.92
Direct Taxes paid		(434.43)		(404.70)
NET CASH FROM OPERATING ACTIVITIES		2,079.04		1,380.22
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Property Plant and Equipment	(2,732.29)		(1,960.32)
Proceeds from sale of Property Plant and Equipment	2.39		0.42
Purchase of Investments	(2,064.74)		(2,116.46)
Proceeds from sale of Investments	4,625.66		2,718.50
Fixed Deposits with Banks matured	0.78		38.39
Loans (Financial assets) given	(12.88)		0.89
Interest Income	12.65		8.62
Dividend income	0.12		0.13
NET CASH USED IN INVESTING ACTIVITIES		(168.31)		(1,309.83)
C. CASH FLOW FROM FINANCING ACTIVITIES
(Repayments) / Proceeds from Working Capital Facilities (Net)	(166.47)		178.68
Proceeds from Term Loans	-		150.00
Proceeds from SIPCOT Loan	80.92		-
Repayment of Term Loans	(242.57)		(150.42)
Repayment of Debentures	(160.00)		-
Government Grant Accrued	0.02		-
Repayment of Fixed Deposits	-		(3.57)
Sales Tax Deferral	-		(8.79)
Deferred payment Credit	(0.54)		(0.48)
Payment of Lease Liability	(85.58)		-
Interest paid	(259.14)		(246.42)
Dividend and Dividend Distribution Tax	(30.66)		(30.66)
NET CASH FROM FINANCING ACTIVITIES		(864.02)		(111.66)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS		1,046.71		(41.27)
OPENING BALANCE OF CASH AND CASH EQUIVALENTS		57.52		98.79
CLOSING BALANCE OF CASH AND CASH EQUIVALENTS		1,104.23		57.52
Note:
The above Cash Flow Statement has been prepared under the "Indirect Method" as set out in the Indian Accounting Standard (Ind AS-7) - Statement of Cash
Flow.

Notes:

**(1)**The above standalone financial results for the Quarter and Year ended 31st March,2020 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 29th June, 2020.

(2) The auditors have issued audit report for standalone financial results with unmodified opinion for the year ended 31st March 2020 in terms of SEBI Circular CIR/CFD/CMD/56/2016 dated 27th May, 2016.

**(3)**The figures for the Quarter ended 31st March, 2020 and 31st March,2019 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.

**(4)**These financial results have been prepared in accordance with the recognition and measurement principles laid down in the Ind AS prescribed under Section 133 of the Companies Act, 2013 read with the rules thereunder and in terms of SEBI Circular dated 5th July,2016.

**(5)**The Company is dealing mainly in rubber products and has no other reportable segment.

**(6)**The Board of Directors has recommended a final dividend of Rs.94 /- per share which along with two interim dividends of Rs.3 each already paid works out to Rs.100/- per share for the year ended 31st March,2020.

**(7)**The Company's rating agencies,i.e.CARE and ICRA has reaffirmed its rating of "CARE AAA" / " [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.

**(8)**The Company has adopted Ind AS 116 effective from 1st April, 2019 using modified retrospective method , and recognising the cumulative impact on the date of initial application i.e. 1st April, 2019. Accordingly, the comparative figures relating to the previous periods / year have not been restated.The net impact of adoption of this standard on the Profit After Tax for the Current Quarter and Year ended 31st March, 2020 is not material.

**(9)**The Listed Secured Redeemable Non Convertible Debentures of the Company aggregating to Rs.340 Crore as on 31st March,2020 are secured by way of legal mortgage of Company's Land at Taluka Kadi,District Mehsana,Gujarat, India and hypothecation by way of first charge on Plant & Machinery at the Company's Plants at Perambalur, Trichy, Tamilnadu, equivalent to the outstanding amount.

		Previous Due Date(Paid on Due date)		Next Due Date
Sl No	Particulars	Principal	Interest	Principal(Part redemption)	Interest
	1 10.09% Non-Convertible Debentures - 340 Crs	27th May 2019	27th May 2019	27th May 2020	27th May 2020

**(10)**Details of Secured Non-Convertible Debentures as on 31st March, 2020 are as follows:

(11) The Company elected to exercise the option permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Company has recognized provision for Income Tax for the year ended 31st March, 2020 and re-measured the Deferred Tax Liabilities / Assets on the rates prescribed in the said section.

(12) COVID 19 pandemic has severely affected the business environment and the economy. In order to reduce the impact of the pandemic, a nationwide lockdown was announced by the Government on 24th March 2020 and consequently, the Company's Plants, offices and godowns were closed. On account of the lockdown, March '20 Quarter has witnessed a drop in Total Income of Rs. 399.57 Cr as against the December '19 Quarter and a drop of Rs. 500.26 Cr as compared to the March '19 Quarter. Post lifting of lockdown most of the Company's operations have resumed. As on the date of the approval of the financial statements, the Company has a strong Net Worth and has serviced all its debt obligations in a timely manner. It does not foresee any incremental risk regarding recoverability of assets and ability to service financial obligations.

**(13)**The figures for the previous periods/year have been regrouped/restated wherever necessary.

• * Paid up Debt Capital represents Secured Redeemable Non-Convertible Debentures.
• ** Debt to Equity Ratio : Long Term Debts/(Total Net Worth Debenture Redemption Reserve)
• *** Debt Service Coverage Ratio : EBDIT/(Interest + Principal Repayment during the period)
• **** Interest Service Coverage Ratio : EBDIT/Interest Expenses

Date: 29th June, 2020 Managing Director

For MRF LIMITED

Place: Chennai RAHUL MAMMEN MAPPILLAI

SCA AND ASSOCIATES MAHESH, VIRENDER & SRIRAM. 501 D, POONAM CHAMBERS, A WING Dr. ANNIE BESANT ROAD, "BADHE HOUSE" 6-3-788/36&37A WORLI DURGANAGAR COLONY MUMBAT - 400 018, AMEERPET HYDERABAD - 500 016 INDEPENDENT AUDITOR'S To REPORT The Board of Directors, MRF LTD,

Opinion ' 1 We have audited the accompanying Consolidated annual financial results of MRE Ltd (hereinafter ferred to as the "Holding Company") and its subsidiaries Golding Company and its subsidiaries together referred to as "the Group"), for the year ended 31 March, 2020 (the Statement"), attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,

Name of the EntityMRF Corp Limited	Relationship
MRF Lanka (Private) Limited	Wholly Owned Subsidiary
MRF SG PTE Ltd.	Wholly Owned Subsidiary
MRF International Limited	Wholly Owned Subsidiary
	Subsidiary

++ We conducted our audit in accordance with the Standards on Auditing ('SAs*) specified under Aegon 143(10) of the Companies Act, 2013 (the Act). Our responsibilities under those SAs are further described in the Auditor's Responsibilities for the Audit of the Consolidated Annual

Emphasis of Matter

* We draw attention to note 11 to the Statement of Standalone Annual Financial Results for the

Our conclusion is not modified in respect of this matter.

Management's and Board of Directors! Responsibilities for the Consolidated Annual Financial Results

• 5These consolidated annual financial results have been Prepared on the basis of the consolidated
• 7In preparing Ditectors of the the consolidated companies annual included financial results, the Management and the respective Board in the Group are responsible for assessing the ability of cach company to continue as a going concern, disclosing, ae applicable, matters related to going crrauin and using the going concern basis of accounting unless the respective Board of Directors suns intends to liquidate the company or to cease operations, or hae no realistic alternative but

• • Our opinion. The risk of not detecting a material 'misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional 'omissions, misrepresentations, or the override of internal contsal
• * Evaluate the overall presentation, structure and content of the consolidated annual financial results, ineluding the disclosures, and whether the consolidated annual financial results tepresent the underlying transactions and events ina manner that achieves fair Presentation
• the destich has been audited by other auditor, such other andinn remain responsible for the direction, supervision anxl performance of the audit carried out by them. We remain Solely responsible for our audit opinion, Our Tesponsibilities in this regard are further stescribed in para (a) of the section titled "Other Matters' this audit report.

auditors regarding, ri amy among other matters, significant audit findings, including any. s identify during our audit.

1. The consolidated annual financial results include

(SHIVRATAN AGARWAL) Partner i M. No. 104180 UDIN: 20104 1BOAAAAGZ Mumbai, S097 June, 2020

M. No. 18628, UDIN: 200, Hyderabad, June, 2020 AAAAAN 3747

	MRF LIMITED
	Regd.Office: 114, Greams Road, Chennai - 600 006CIN: L25111TN1960PLC004306; Website: www.mrftyres.com; Email: mrfshare@mrfmail.com; Ph: 044-28292777 FAX: 28295087
	Rs.Crores
	Statement of Consolidated Financial Results for the Quarter and Year ended 31st March,2020		Quarter ended		Year ended
	PARTICULARS	31.03.2020	31.12.2019	31.03.2019	31.03.2020	31.03.2019
		Audited(Refer Note 2)	Unaudited	Audited(Refer Note 2)	Audited	Audited
I	Revenue from Operations	3,685.16	4,075.75	4,137.67	16,239.36	16,062.46
II	Other Income	60.05	74.01	111.79	335.38	421.73
III	Total Income( I + II )	3,745.21	4,149.76	4,249.46	16,574.74	16,484.19
IV	Expenses
	a) Cost of materials consumed	2,177.69	2,340.39	2,622.85	9,577.04	10,292.57
	b) Purchase of stock-in-trade	6.67	4.34	2.80	22.59	30.60
	c) Changes in inventories of finished goods, Stock-in-trade and work-in-progress	(76.27)	76.52	(124.03)	17.40	(613.83)
	d) Employee benefits expense	349.24	344.86	291.11	1,344.93	1,165.28
	e) Finance costs	72.48	76.58	61.71	292.82	267.31
	f) Depreciation and amortisation expense	267.00	249.33	214.90	982.32	807.60
	g) Other expenses	644.58	687.43	761.62	2,903.39	2,882.48
	Total expenses(IV)	3,441.39	3,779.45	3,830.96	15,140.49	14,832.01
V	Profit before Exceptional Items and Tax ( III-IV)	303.82	370.31	418.50	1,434.25	1,652.18
VI	Exceptional Items	-	-	-	-	-
VII	Profit before Tax	303.82	370.31	418.50	1,434.25	1,652.18
VIII	Tax expense (Refer Note 10) :
	(1) Current Tax	76.16	102.49	65.19	409.07	339.17
	(2) Deferred Tax	(451.36)	26.50	59.38	(397.39)	182.40
IX	Profit for the period from Continuing Operations ( VII - VIII)	679.02	241.32	293.93	1,422.57	1,130.61
X	Other Comprehensive Income( OCI)
	A(i) Items that will not be reclassified to profit or loss	(2.85)	(8.22)	(6.63)	(26.75)	(9.63)
	(ii) Incometax relating to items that will not be reclassified to profit or loss	(1.62)	2.87	2.32	6.73	3.37
	B(i) Items that will be reclassified to profit or loss	17.04	8.70	(10.97)	13.88	(0.30)
	(ii) Incometax relating to items that will be reclassified to profit or loss	(1.90)	0.31	3.85	(3.52)	5.79
XI	Total Comprehensive Income for the year attributable to:
	Owners of the Company	689.68	244.98	282.49	1,412.90	1,129.83
	Non Controlling Interest	0.01	-	0.01	0.01	0.01
XII	Paid up Equity Share Capital ( Face Value of Rs.10/- each)	4.24	4.24	4.24	4.24	4.24
XIII	Paid up Debt Capital *	340.00	340.00	500.00	340.00	500.00
XIV	Earnings Per Share for Continuing Operations (of Rs.10/- each) (not annualised):
	Basic (Rs. Per Share)	1,601.03	569.00	693.05	3,354.20	2,665.82
	Diluted (Rs. Per Share)	1,601.03	569.00	693.05	3,354.20	2,665.82
XV	Other Equity excluding Revaluation Reserve	-	-	-	12,210.47	10,833.11
XVI	Debenture Redemption Reserve	-	75.53	115.53	-	115.53
	XVII Net Worth				12,214.84	10,837.47
	XVIII Debt-Equity Ratio **				0.09	0.14
XIX	Debt service coverage Ratio ***				4.00	6.29
XX	Interest service coverage Ratio ****				10.08	10.11
	See accompanying Notes to the financial results

Consolidated Statement of Assets and Liabilities	Consolidated	Rs.Crores
Particulars	As at31.03.2020	As at31.03.2019
ASSETS(1) Non-Current Assets	Audited	Audited
(a) Property, Plant and Equipment	8,841.27	6,769.77
(b) Capital Work-in-Progress	1,740.94	1,403.47
(c) Other Intangible Assets	28.49	16.23
(d) Financial Assets
(i) Investments	5.58	1,057.00
(ii) Loans	12.25	0.36
(iii) Other financial assets	96.67	88.05
(e) Non Current Tax Asset(Net)	232.22	207.44
(f) Deferred Tax Asset(Net)	-	0.06
(g) Other non-current assets	333.88	435.08
(2) Current Assets
(a) Inventories	2,905.18	2,993.20
(b) Financial Assets
(i) Investments	1,513.75	2,797.68
(ii) Trade Receivables	2,299.40	2,382.71
(iii) Cash and cash Equivalents	1,178.52	101.95
(iv)Bank balances other than Cash and Cash Equivalents	2.62	2.55
(v) Loans	2.89	0.61
(vi) Other financial assets	52.58	34.92
(c) Other current assets	196.10	149.98
(d) Assets Classified as held for Sale	-	0.20
TOTAL ASSETSEQUITY AND LIABILITIESEquity	19,442.34	18,441.26
(a) Equity Share Capital	4.24	4.24
(b) Other Equity	12,210.47	10,833.11
Non Controlling Interest	0.13	0.12
Total Equity	12,214.84	10,837.47
Liabilities(1) Non-Current Liabilities
(a) Financial Liabilities
(i) Borrowings	779.03	1,054.73
(ii) Other Financial Liabilities	327.48	-
(b) Provisions	189.72	168.11
(c) Deferred Tax Liabilities (Net)	428.86	840.20
(d) Other non-current liabilities(2) Current Liabilities	250.17	76.32
(a) Financial Liabilities
(i) Borrowings	731.03	1,047.66
(ii) Trade Payables:
(A) total outstanding dues of micro enterprises and Small enterprises and	17.02	21.25
(B) total outstanding dues of creditors other than micro enterprises and Small enterprises	1,888.32	1,688.13
(iii) Other Financial Liabilities	732.39	763.32
(b) Other Current Liabilities	1,727.14	1,783.82
(c) Provisions	153.53	149.48
(d) Current Tax Liabilities (Net)	2.81	10.77
Total Liabilities	7,227.50	7,603.79
TOTAL EQUITY AND LIABILITIES	19,442.34	18,441.26

MRF LIMITED
AUDITED CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2020
		Year ended		(Rupees Crores)
	31st March 2020		31st March 2019
A. CASH FLOW FROM OPERATING ACTIVITIES :
NET PROFIT BEFORE TAX		1,434.25		1,652.18
Adjustment for :
Depreciation	982.32		807.60
Reversal of Impairment of Assets / Financial Assets	(0.09)		(0.10)
Unrealised Exchange (Gain) / LossGovernment Grant Accrued	(7.27)(0.02)		16.26-
Impairment of Financial Assets	0.20		0.07
Finance Cost	292.82		267.31
Interest Income	(21.92)		(13.09)
Dividend Income	(0.03)		(0.03)
Loss / (Gain) on Sale / Disposal of Property Plant and Equipment	(0.54)		5.90
Fair Value changes in Investments	(237.74)		(296.58)
Fair Value changes in Financial Instruments	57.09		41.96
Loss / (Gain) on Sale of Investments	(13.28)		(9.13)
Bad Debts written off	0.05	1,051.59	0.29	820.46
OPERATING PROFIT/(LOSS) BEFORE WORKING CAPITAL CHANGES		2,485.84		2,472.64
Trade receivables	97.38		(237.65)
Other receivables	(72.37)		29.52
InventoriesTrade Payable and Provisions	88.02187.92		(795.87)117.35
Other liabilities	(72.37)	228.58	82.49	(804.16)
CASH GENERATED FROM OPERATIONS		2,714.42		1,668.48
Direct Taxes paid		(441.81)		(415.63)
NET CASH FROM OPERATING ACTIVITIES		2,272.61		1,252.85
B. CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Property Plant and Equipment	(2,752.36)		(1,963.76)
Proceeds from sale of Property Plant and Equipment	2.47		0.42
Purchase of Investments	(2,065.74)		(2,122.46)
Proceeds from sale of Investments	4,650.90		2,718.50
Fixed Deposits with Banks matured	(5.71)		(30.82)
Loans (Financial assets) given	(12.86)		0.90
Interest Income	19.58		11.04
Dividend income	0.03		0.03
NET CASH USED IN INVESTING ACTIVITIES		(163.69)		(1,386.15)
C. CASH FLOW FROM FINANCING ACTIVITIES
(Repayments) / Proceeds from Working Capital Facilities (Net)	(313.02)		356.30
Proceeds from Term Loans	-		150.00
Proceeds from SIPCOT Loan	80.92		-
Repayment of Term LoansRepayment of Debentures	(242.56)(160.00)		(150.42)-
Government Grant Accrued	0.02		-
Repayment of Fixed Deposits	-		(3.57)
Sales Tax Deferral	-		(8.79)
Deferred payment Credit	(0.54)		(0.48)
Payment of Lease Liability	(85.58)		-
Interest paid	(280.91)		(270.17)
Dividend and Dividend Distribution Tax	(30.68)		(30.68)
NET CASH FROM FINANCING ACTIVITIES		(1,032.35)		42.19
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS		1,076.57		(91.11)
OPENING BALANCE OF CASH AND CASH EQUIVALENTS		101.95		193.06
CLOSING BALANCE OF CASH AND CASH EQUIVALENTS		1,178.52		101.95
Note:
The above Cash Flow Statement has been prepared under the "Indirect Method" as set out in the Indian Accounting Standard (Ind AS-7) - Statement of Cash Flow.

Notes:

**(1)**The above consolidated financial results for the Quarter and Year ended 31st March,2020 were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 29th June, 2020.

(2) The auditors have issued audit report for consolidated financial results with unmodified opinion for the year ended 31st March 2020 in terms of SEBI Circular CIR/CFD/CMD/56/2016 dated 27th May, 2016.

**(3)**The figures for the Quarter ended 31st March, 2020 and 31st March,2019 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.

**(4)**These financial results have been prepared in accordance with the recognition and measurement principles laid down in the Ind AS prescribed under Section 133 of the Companies Act, 2013 read with the rules thereunder and in terms of SEBI Circular dated 5th July,2016.

(5) The group except for MRF Corp Ltd, is engaged in the manufacture of rubber products such as Tyre, Tubes, Flaps, Tread Rubber and / or Trading in Rubber and Rubber Chemicals. In the context of IND-AS 108 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.

**(6)**The Holding Company's rating agencies,i.e.CARE and ICRA has reaffirmed its rating of "CARE AAA" / " [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.

**(7)**The Group has adopted Ind AS 116 effective from 1st April, 2019 using modified retrospective method , and recognising the cumulative impact on the date of initial application i.e. 1st April, 2019. Accordingly, the comparative figures relating to the previous periods / year have not been restated.The net impact of adoption of this standard on the Profit After Tax for the current quarter and year ended 31st March, 2020 is not material.

**(8)**The Listed Secured Redeemable Non Convertible Debentures of the Holding Company aggregating to Rs.340 Crore as on 31st March,2020 are secured by way of legal mortgage of Holding Company's Land at Taluka Kadi,District Mehsana,Gujarat, India and hypothecation by way of first charge on Plant & Machinery at the Holding Company's Plants at Perambalur, Trichy, Tamilnadu, equivalent to the outstanding amount.

			Previous Due Date(Paid on Due date)	Next Due Date
Sl No	Particulars	Principal	Interest	Principal(Part redemption)	Interest
	1 10.09% Non-Convertible Debentures - 340 Crs	27th May 2019	27th May 2019	27th May 2020	27th May 2020

**(9)**Details of Secured Non-Convertible Debentures as on 31st March, 2020 are as follows:

**(10)**The Group (except for Foreign Subsidiaries) elected to exercise the option permitted under Section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Group has recognized provision for Income Tax for the year ended 31st March, 2020 and re-measured the Deferred Tax Liabilities / Assets on the rates prescribed in the said section.

(11) COVID 19 pandemic has severely affected the business environment and the economy. In order to reduce the impact of the pandemic, a nationwide lockdown was announced by the Government on 24th March 2020 and consequently, the Group's Plants, offices and godowns were closed. On account of the lockdown, March '20 Quarter has witnessed a drop in Total Income of Rs. 404.55 Cr as against the December '19 Quarter and a drop of Rs. 504.25 Cr as compared to the March '19 Quarter. Post lifting of lockdown most of the Group's operations have resumed. As on the date of the approval of the financial statements, the Group has a strong Net Worth and has serviced all its debt obligations in a timely manner. It does not foresee any incremental risk regarding recoverability of assets and ability to service financial obligations.

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

• * Paid up Debt Capital represents Secured Redeemable Non-Convertible Debentures.
• ** Debt to Equity Ratio : Long Term Debts/(Total Net Worth Debenture Redemption Reserve)
• *** Debt Service Coverage Ratio : EBDIT/(Interest + Principal Repayment during the period)
• **** Interest Service Coverage Ratio : EBDIT/Interest Expenses

For MRF LIMITED

Date: 29th June, 2020 Managing Director

Place: Chennai RAHUL MAMMEN MAPPILLAI