Investor Presentaiton
Dividend
Two interim dividends of 3/- each per share (30% each) for the financial
year ended 31st March, 2023 were declared by the Board of Directors on
8th November, 2022 and on 9th February, 2023. The Board of Directors
is pleased to recommend a final dividend of 169/- (1690%) per share
of 10 each on the paid up equity share capital of the Company, for
consideration and approval of the shareholders at the forthcoming Annual
General Meeting which shall be subject to deduction of applicable
income tax at source. The total dividend for the financial year ended
31st March, 2023 works out to 175/- (1750%) per share of 10 each.
The above dividend declared by the Company is in accordance with
dividend distribution policy of the Company.
The Directors recommend that after considering provision for taxation
and the dividend paid during the year, an amount of 753 crores be
transferred to general reserve. With this, the Company's Reserves and
Surplus stands at 14505 crores.
Industrial Relations
Overall, the industrial relations in all our manufacturing units have been
harmonious and cordial. Long term wage settlements have been concluded
in our factories at Thiruvottiyur in Tamil Nadu, Goa and Ankenpally in
Telangana. Both production and productivity were maintained at the
desired levels throughout the year in all Plants.
Consolidated Financial Results and Performance of Subsidiaries
The consolidated financial statements of the Company prepared in accordance
with the Companies Act, 2013 and applicable accounting standards form part
of the Annual Report. The consolidated total income for 2022-23 was 23261
Crores and consolidated profit before tax was 1070 Crores.
Pursuant to the provisions of section 136 of the Companies Act, 2013,
the financial statements, consolidated financial statements along with the
relevant documents and audited accounts of subsidiaries are available on
the website of the Company.
The Company has four subsidiaries viz. MRF Corp Limited,
MRF International Limited, MRF Lanka (P) Ltd. and MRF SG PTE. LTD.
The aggregate turnover of all four subsidiaries in equivalent Indian Rupees
during the financial year ended 31st March, 2023 was 2326 crores and
the aggregate Loss for the year was 48 crores. This is due to MRF SG
PTE. LTD, paying a sum of 82 crores, being the price adjustment under
Bilateral Advance Pricing Arrangement (BAPA) payable to MRF Limited for
the financial year 2015-16 to 2023-24.
A statement in Form AOC-1, containing the salient features of the financial
statements of the Company's subsidiaries is attached with the financial
statements. The statement provides details of performance and financial
position of each of the subsidiaries.
The contribution of the subsidiaries to the overall performance of the
company is given in note 25d of the consolidated financial statements.
During the year under review, your Company has entered into transactions
with MRF SG PTE. LTD, a wholly owned subsidiary of your Company for
purchase of raw materials and the total value of transactions executed
during financial year 2022-2023, exceeded the materiality threshold
adopted by the Company. These transactions were in the ordinary course
of business and were on an arms length basis, details of which are provided
in Annexure IV of the Board's Report as required under Section 134(3)
(h) of the Companies Act, 2013 read with Rule 8(2) of the Companies
(Accounts) Rules, 2014.
Directors' Responsibility Statement
As required under section 134(3)(c) of the Companies Act, 2013, your
Directors state that:
a)
b)
c)
In the preparation of the annual accounts, the applicable Accounting
Standards have been followed and that there are no material
departures;
They have, in selection of the accounting policies, consulted the
statutory auditors and applied them consistently, making judgments
and estimates that are reasonable and prudent so as to give a true
and fair view of the state of affairs of the Company at the end of the
financial year and of the profit of the Company for the year ended
31st March, 2023;
Proper and sufficient care has been taken for the maintenance of
adequate accounting records in accordance with the provisions
of the Companies Act, 2013 for safeguarding the assets of the
Company and for preventing and detecting fraud and other
irregularities;
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