The consolidated financial statements have been brpared in accordance with generally accepted accounting principles in India (Indian GAAP). The Group has brpared these financial statements to comply in all material respects with the Accounting Standards (AS), notified under section 133 of the Companies Act, 2013 ("the Act"),read together with Companies (Accounting Standards) Rules, 2006 (as amended) and the Companies (Accounts) Rules, 2014. The consolidated financial statements have been brpared on an accrual basis and under the historical cost convention except in case of assets for which provision for impairment is made and revaluation is carried out, if any. The accounting policies adopted in the brparation of consolidated financial statements have been consistently applied by the Group and are consistent with those of brvious year.

 The financial statements of its subsidiary and associates have been drawn upto the same reporting date as that of the Company i.e. March 31, 2020.

 All material inter-company transactions and balances between the entities included in the consolidated financial statements have been eliminated. The excess of purchase price over the proportionate share of the book value of the net assets of the acquired subsidiary company is recognised in the consolidated financial statements as goodwill and disclosed under intangible assets.

Associates are accounted under equity method whereby the investment is initially recorded as cost, identifying any goodwill/capital reserve arising at the time of acquisition. The carrying amount of the investment is adjusted thereafter for the post acquisition change in the investor's share of net assets of the investee. The consolidated statement of profit and loss reflects the investor's share of the results of operation of the associates.

MTR Foods Private Limited ("the Company" or "MTR") was incorporated at Bangalore in 1996.In 2012, MTR acquired 100% of the equity shares of Rasoi Magic Foods (India) Private Limited ("Rasoi") and resultantly, Rasoi became the subsidiary of MTR.

MTR and its subsidiary ("the Group") are engaged in the manufacture and sale of ready-to-eat food products, instant food mixes, spices and masalas, vermicelli, snacks, confectionery, milk-based products and beverages. The Group also undertakes trading of certain food products and oral care products.

In September 2017, MTR acquired 43% equity shares of Firmroots Private Limited ["Firmroots"] for Rs. 35,002,100 and resultantly, Firmroots became the associate of MTR.

In December 2018, MTR acquired 10% equity shares in Pot Ful India Private Limited ["PotFul"] for Rs. 22,000,920 and in July 2019 MTR acquired 252 equity shares from the promoters of Pot Ful for Rs. 9,442,440 and subscribed to 2,150equity shares at Rs. 37,470 per share amounting to Rs. 80,560,500. Subsequent to such additional share purchase in PotFul, effective from July 15, 2019, Pot Fulbecame an associate of MTR.

Statement of significant accounting policies

(a) Use of estimates

The brparation of consolidated financial statements in conformity with the Indian GAAP requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

(b) Property, plant and equipment

Property, plant and equipment, capital work in progress are stated at their historical cost, net of accumulated debrciation and impairment losses if any. Cost comprises the purchase price and directly attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition of property, plant and equipment which takes substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready

to be put to use. Any trade discounts and rebates are deducted in arriving at the purchase price. Such cost includes the cost of replacing part of the plant and equipment. When significant parts of plant and equipment are required to be replaced at intervals, the Group debrciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred.

Items of stores and spares that meet the definition of property, plant and equipment are capitalized at cost and debrciated over their useful life. Otherwise, such items are classified as inventories.

Gains or losses arising from de-recognition of property, plant and equipment assets are measured as the difference between the net disposal proceeds/ net realisable value and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

The Group identifies and determines cost of a component whose cost is significant to the total cost of the asset having useful life that is materially different from that of the main asset.

Property, plant and equipment held for sale is valued at lower of their carrying amount and net realizable value. Any write-down is recognized in the statement of profit and loss.

(c) Debrciation on tangible assets

 Debrciation is provided on straight line method based on the estimated useful lives of assets as specified below. The identified components are debrciated over their useful lives; the remaining asset is debrciated over the life of the principal asset.

Nature of Asset	Useful life (in years)
Factory Buildings	30
Plant & machinery	5-12
Office equipment	3-5
Computers	3
Electrical fittings	10
Furniture & fixtures	10
Vehicles	6

Leasehold improvements are debrciated over the primary period of lease, or useful life, whichever is lower, on a straight-line basis.

 Management believes that debrciation rates currently used fairly reflect its estimate of the useful lives and residual values of property, plant and equipment assets, though these rates in certain cases are different from lives brscribed under Schedule II.

 Where the estimated useful lives are different from lives brscribed under Schedule II, management has estimated these useful lives after taking into consideration technical assessment, prior asset usage experience (including number of shifts) and the risk of technological obsolescence. 

The residual values, useful lives and methods of debrciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

(d) Intangible assets

Trademark/ Brand/Patents/Technical knowhow

Intangible assets comprising trademark/ brand/ patents/ technical knowhow acquired are stated at its purchase cost and are amortised over a period of four to ten years from the date of acquisition.

Computer software held for use in business/administrative purposes. Computer software is amortized over an estimated useful life of three years.

 The amortization period and the amortization method are reviewed at least at each financial year end. If the expected useful life of the asset is significantly different from brvious estimates, the amortization period is changed accordingly. If there has been a significant change in the expected pattern of economic benefits from the asset, the amortization method is changed to reflect the changed pattern. Such changes are accounted for in accordance with AS 5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies.

Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds/net realisable value and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.

Goodwill

Goodwill rebrsents the excess of the purchase price over the book value of the net assets of the acquired subsidiary/increase in shareholding in subsidiary company on the date of investment. Goodwill is not amortised but is tested for impairment on a yearly basis.

(e) Impairment of property, plant and equipment and intangible assets 

i) The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their brsent value using a br-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.

ii) The Group bases its impairment calculation on detailed budgets and forecast calculations which are brpared separately for each of the Group's cash-generating units to which the individual assets are allocated. These budgets and forecast calculations are generally covering a period of five years. For longer periods, a long-term growth rate is calculated and applied to project future cash flows after the fifth year.

iii) After impairment, debrciation is provided on the revised carrying amount of the asset over its remaining useful life. 

iv) An assessment is made at each reporting date as to whether there is any indication that brviously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Group estimates the asset's or cash-generating unit's recoverable amount. A brviously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset's recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of debrciation, had no impairment loss been recognized for the asset in prior years.

(f) Inventories

Inventories are valued as follows: 

Raw materials, packing materials and stores, spares and consumables	Lower of cost and net realizable value. However, materials and other items held for use in the production of inventories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. Cost is determined on a weighted average basis. Stores and spares which do not meet the definition of PPE are accounted as inventories.
Work in progress& finished goods including traded goods	Lower of cost and net realizable value. Cost of Work in progress and finished goods includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Cost of traded goods includes cost of purchase and other costs incurred in bringing the inventories to their brsent location and condition.Cost is determined on a weighted average basis.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

(g) Investments

Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

(h) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

 Sale of goods

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyer. Revenue is stated net of discounts, trade schemesand goods and services tax.

Interest

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. Interest income is included under the head "other income" in the statement of profit and loss.

Dividends

Revenue is recognised when the shareholders' right to receive payment is established by the balance sheet date.

(i) Retirement and other employee benefits

Provident Fund

Retirement benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the consolidated statement of profit and loss for the year when the employee renders the related service and the contributions to the government funds are due. The Group has no obligation other than the contribution payable to provident fund authorities.

Gratuity

Gratuity liability is a defined benefit obligation. The Group contributes to a gratuity fund maintained by the Life Insurance Corporation of India. The amount of contribution is determined based upon actuarial valuation as at the year end. Such contributions are charged off to the statement of profit and loss. Provision is made for the shortfall between the actuarial valuation as per Projected Unit Credit Method and the funded balance with the insurance company as at the Balance Sheet date.

Leave Encashment / compensated absences

As per Group policy, employees are eligible to encash part of the leave standing to the credit of employees every year and the balance accumulated leave standing to the credit at the time of resignation/retirement subject to terms and conditions. Provision for short-term compensated absences is made on the basis of an estimate of availment of the leave balance to the credit of the employees as at the Balance Sheet date. Long-term compensated absences are provided for based on an actuarial valuation as at Balance Sheet date. The actuarial valuation is done as per the projected unit credit method. The Group brsents entire leave as a current liability in the balance sheet, since it doesn't have an unconditional right to defer its settlement for 12 months after the reporting date.

All actuarial gains/losses are immediately taken to consolidated statement of profit and loss and are not deferred.

(j) Foreign Currency Transactions

 Foreign Currency transactions and balances

a. Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

b. Conversion

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

c. Exchange differences

Exchange differences arising on the settlement of monetary items or on reporting of such monetary items of the Group at rates different from those at which they were initially recorded during the year, or reported in the brvious financial statements, are recognised as income or as expenses in the year in which they arise.

d. Forward exchange contracts not intended for trading or speculation purposes

The Group uses forward exchange contracts to hedge its exposure to movements in foreign exchange rates and not for trading or speculation purposes.

(k) Government grant and subsidies

Grants and subsidies from the government are recognized when there is reasonable assurance that the grant/subsidy will be received and all attached conditions will be complied with.

When the grant or subsidy relates to an expense item, it is recognized as income over the periods necessary to match them on a systematic basis to the costs, which it is intended to compensate. Where the grant or subsidy relates to a debrciable asset, such grants are treated as deferred income which is recognized in the statement of profit and loss on a systematic basis over the useful life of the asset. The allocation to income is made over the periods and in the proportion in which debrciation on the related assets is charged.

(l) Income Taxes

Tax expense comprises of current and deferred tax.

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961. Current tax measurement is based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Where there is unabsorbed debrciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each balance sheet date, the Group re-assesses unrecognized deferred tax assets. It recognizesunrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The Group writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.

Minimum Alternative Tax (MAT)paid in a year (as applicable to components in the Group) is charged to the Consolidated Statement of Profit and Loss as current tax. MAT credit is recognized as an asset only when and to the extent there is convincing evidence that the Group will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward.In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss account and shown as MAT Credit Entitlement. The Group reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Group will pay normal Income Tax during the specified period.

(m) Accounting for Leases

Where the Group is the lessee

i. Finance Leases:

Finance leases, which effectively transfer to the Group substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the lower of the fair value and brsent value of the minimum lease payments at the inception of the lease term and disclosed as leased assets. Lease payments are apportioned between the finance charges and reduction of the lease liability based on the implicit rate of return. Finance charges are charged directly against income. Lease management fees, legal charges and other initial direct costs are capitalised.

ii. Operating leases:

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.

(n) Earnings Per Share

Basic Earnings per Share is calculated by dividing the net Profit or Loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net Profit or Loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

(o) Segment reporting policies

 Identification of segments:

The Group's operating businesses are organized and managed separately according to the nature of products and services provided. The analysis of geographical segments is based on the areas in which major operating divisions of the Group operate.

Inter segment transfers:

The Group generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties at current market prices.

Allocation of common costs:

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

Unallocated items:

General corporate income and expense items which are not allocated to any business segment.

(p) Contingent liabilities

A contingent liability is possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Group or a brsent obligation that is not recognised because it is not probable that an outflow or resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Group does not recognise a contingent liability but discloses its existence in the financial statements.

(q) Provisions

A provision is recognized when the Group has a brsent obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its brsent value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

(r) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

Gratuity :

The Group has a defined benefit gratuity plan. Every employee in India who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the consolidated statement of profit and loss and the funded status and amounts recognized in the consolidated balance sheet for the gratuity plan.

		March 31, 2020	March 31, 2019
		Rs.	Rs.
	Consolidated Statement of profit and loss
a	Net employee benefit expense recognized in the employee benefit expense
	Current service cost	1,28,11,209	1,15,45,824
	Recognised past service cost (Refer Note (i) below)	11,075	11,075
	Interest cost on benefit obligation	1,22,49,323	1,04,15,224
	Expected return on plan assets	(1,07,44,022)	(1,02,49,273)
	Net actuarial( gain) / loss recognized in the year	33,86,296	90,81,552
	Net benefit expense	1,77,13,881	2,08,04,402
	Actual return on plan assets	1,02,07,985	1,00,63,619

Note (i) The past service cost for the year ended March 31, 2020 and March 31, 2019 pertains to increase in benefit cost due to increase in limit of gratuity benefits from Rs. 1,000,000 to Rs. 2,000,000.

		March 31, 2020	March 31, 2019
		Rs.	Rs.
	Consolidated Balance sheet
b	Benefit asset/ liability
	Present value of defined benefit obligation	(18,37,00,795)	(16,28,86,867)
	Fair value of plan assets	16,74,88,915	14,28,56,626
	Unrecognised past service cost	10,983	22,058
	Plan asset / (liability)	(1,62,00,897)	(2,00,08,183)
c	Changes in the brsent value of the defined benefit obligation are as follows:
	Opening defined benefit obligation	16,28,86,867	13,89,68,257
	Current service cost	1,28,11,209	1,15,45,824
	Interest cost	1,22,49,323	1,04,15,224
	Benefits paid	(70,96,863)	(69,38,336)
	Actuarial (gains) / losses on obligation	28,50,259	88,95,898
	Closing defined benefit obligation	18,37,00,795	16,28,86,867
d	Changes in the fair value of plan assets are as follows:
	Opening fair value of plan assets	14,28,56,626	13,31,74,359
	Expected return	1,07,44,022	1,02,49,273
	Contributions by employer	2,15,21,167	65,56,984
	Benefits paid	(70,96,863)	(69,38,336)
	Actuarial gains / (losses)	(5,36,037)	(1,85,654)
	Closing fair value of plan assets	16,74,88,915	14,28,56,626
	The Group expects to contribute Rs. 16,200,897 to gratuity in the next year (March 31, 2019: Rs 20,090,454).
	The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:
	Investments with insurer	100%	100%
e	The principal assumptions used in determining benefit obligations:	March 31, 2020	March 31, 2019
	Discount rate	6.7% - 6.85%	7.50% - 7.70%
	Attrition Rate	2% - 7%	2% -7%
	Salary escalation rate	6.5% for first year and 8% thereafter	8.00%
	Expected rate of return on assets	6.7% - 6.85%	7.50% - 7.70%

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices brvailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to change in the market scenario.

f. Experience adjustment for the current period and brvious four periods are as follows:

	March 31, 2020	March 31, 2019	March 31, 2018	March 31, 2017	March 31, 2016
	Rs.	Rs.	Rs.	Rs.	Rs.
Defined benefit obligation	18,37,00,795	16,28,86,867	13,89,68,257	12,91,05,435	10,34,10,144
Plan assets	16,74,88,915	14,28,56,626	13,31,74,359	10,83,61,791	8,81,94,433
Surplus / (deficit)	(1,62,11,880)	(2,00,30,241)	(57,93,898)	(2,07,43,644)	(1,52,15,023)
Experience adjustments on plan liabilities	(68,80,726)	23,45,633	(15,46,020)	(3,15,730)	(36,03,811)
Experience adjustments on plan assets	(5,36,037)	(1,85,654)	6,74,049	6,91,455	7,82,974

Identification of segments:
Business segment:
The Group is engaged in manufacture and sale of food products, confectionery and beverages, which in the view of the management falls within a single business segment. Hence, there are no additional disclosures to be provided under AS17 - 'Segment Reporting' as notified under Companies Accounting Standards Rules 2006 (as amended) other than those provided in financial statements.