Investor Presentaiton

Note 1 - Significant Accounting Policies under IND AS A) B) General Information MRF Limited (the "Company") is a limited company, incorporated on 5th November, 1960 in India, whose shares are publicly traded. The Company is India's largest tyre manufacturer and ranked amongst the top 20 Global Manufacturers, with 10 state-of-the- art factories across India with an expansive tyre range from two- wheelers to fighter aircrafts. The Registered Office is located at No. 114, Greams Road, Chennai - 600 006. The Company is the ultimate parent of MRF Group. Basis of preparation of Financial Statements The principal accounting policies applied in the preparation of these Financial Statements are set out in Para C below. These policies have been consistently applied to all the years presented. i. ii. Statement of Compliance These separate Financial Statements (also known as Standalone Financial Statements) have been prepared in accordance with IND AS as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and subsequent amendments thereto. Basis of Preparation and Presentation The Financial Statements have been prepared on historical cost basis considering the applicable provisions of Companies Act, 2013, except for the following material item that has been measured at fair value as required by relevant IND AS. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. a) b) Certain financial assets/liabilities measured at fair value (Refer Note 1 (C 20)) and Any other item as specifically stated in the accounting policy. (Refer Note 28 (g)) The Financial Statement are presented in INR and all values are rounded off to Rupees Crores unless otherwise stated. iii. The Company reclassifies comparative amounts, unless impracticable and whenever the Company changes the presentation or classification of items in its Financial Statements materially. No such material reclassification has been made during the year. The Financial Statements of the Company for the year ended 31st March, 2023 were authorised for issue in accordance with a resolution of the directors on 03rd May, 2023. Major Sources of Estimation Uncertainty In the application of accounting policy which are described in note (C) below, the management is required to make judgment, estimates and assumptions about the carrying amount of assets and liabilities, income and expenses, contingent liabilities and the accompanying disclosures that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant and are prudent and reasonable. Actual results may differ from those estimates. The estimates and underlying assumptions are reviewed on ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised if the revision affects only that period or in the period of revision and future periods if the revision affects both current and future period. The few critical estimations and judgments made in applying accounting policies are: Property, Plant and Equipment: Useful life of Property, Plant and Equipment and Intangible Assets are as specified in Schedule II to the Companies Act, 2013 and on certain assets based on technical advice which considered the nature of the asset, the usage of the asset, expected physical wear and tear, the operating conditions of the asset, anticipated technological changes, manufacturers warranties and maintenance support. The Company reviews the useful life of Property, Plant and Equipment at the end of each reporting period. This reassessment may result in change in depreciation charge in future periods. (Refer Note 1 (C 1)) Impairment of Non-financial Assets: For calculating the recoverable amount of non-financial assets, the Company is required to estimate the value-in-use of the asset or the 102

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