annual-report-FY2020

239 MAHINDRA & MAHINDRA LTD. INTEGRATED ANNUAL REPORT 2019-20 (B) Other Equity (contd.) Rupees crores Reserves and Surplus Items of other comprehensive income Total Capital Reserve Securities Premium (refer note a) General Reserve (refer note b) Debenture Redemption Reserve Share Option Outstanding Account Retained Earnings Debt instrument through Other Comprehensive Income Equity instrument through Other Comprehensive Income Effective portion of Cash Flow Hedges [Note 35.1.(c)] As at 1 st April, 2019 ........................................ 346.00 2,274.15 1,730.54 50.64 233.92 28,966.71 0.43 (5.17) 16.21 33,613.43 Profit for the year........................................... — — — — — 1,330.55 — — — 1,330.55 Other Comprehensive Income/(Loss)............. — — — — — (7.93) 0.57 (0.78) (23.96) (32.10) Total Comprehensive Income for the year ... — — — — — 1,322.62 0.57 (0.78) (23.96) 1,298.45 Dividend paid on Equity Shares (including tax thereon)................................................... — — — — — (1,187.33) — — — (1,187.33) Exercise of employee stock options.............. — 87.87 — — (87.87) — — — — — Allotment of shares by ESOP Trust to Employees....................................................... — 25.93 — — — — — — — 25.93 Allotment of bonus shares by ESOP Trust to Employees....................................................... — (0.36) — — — — — — — (0.36) On account of employee stock options lapsed.............................................................. — — 2.29 — (2.29) — — — — — Share based payment to employees............. — — — — 121.20 — — — — 121.20 As at 31 st March, 2020 .................................... 346.00 2,387.59 1,732.83 50.64 264.96 29,102.00 1.00 (5.95) (7.75) 33,871.32 Remeasurement loss (net) on defined benefit plans Rs. 7.93 crores (2019: Rs. 8.85 crores) has been recognised during the year as part of retained earnings. (C) Description of the nature and purpose of Other Equity: (i) Capital reserve: Capital reserve mainly represents the amount of net assets acquired over and above consideration paid consequent to the Scheme of Arrangement. (ii) Securities premium: Securities premium reserve is used to record the premium on issue of shares. The fair value of employee stock options is recognised in Securities Premium once the shares have been allotted on exercise of the options. (iii) General reserve: The General reserve comprises of transfer of profits from retained earnings for appropriation purposes. The reserve can be distributed/utilised by the Company in accordance with the Companies Act, 2013. (iv) Debenture redemption reserve: Debenture redemption reserve is a statutory reserve (as per Companies Act, 2013) created out of profits of the Company available for payment of dividend for the purpose of redemption of Debentures issued by the Company. On completion of redemption, the reserve is transferred to retained earnings. (v) Share option outstanding account: Share option outstanding account represents reserve in respect of equity settled share options granted to the Company’s employees in pursuance of the Employee Stock Option Plan. Notes: (a) The Company has reduced the share capital by Rs. 12.54 crores (2019: Rs. 12.90 crores) and securities premium by Rs. 204.78 crores (2019: Rs. 230.71 crores) for the 2,50,76,433 shares of Rs. 5 each (2019: 2,58,02,706 shares of Rs. 5 each) held by the ESOP Trust pending transfer to the eligible employees. (b) The share capital of the Company has also been reduced and the securities premium increased by Rs. 12.54 crores (2019: Rs. 12.90 crores) for the 2,50,76,432 bonus shares of Rs. 5 each (2019: 2,58,02,706 bonus shares of Rs. 5 each) issued by the Company in December, 2017 to the ESOP Trust but not yet transferred by the ESOP Trust to the employees. The accompanying notes 1 to 41 are an integral part of the Financial Statements. Nadir B. Godrej M. M. Murugappan Dr. Vishakha N. Desai Vikram Singh Mehta T. N. Manoharan Vijay Kumar Sharma Haigreve Khaitan Shikha Sharma CP Gurnani } Directors In terms of our report attached. For B S R & Co. LLP Chartered Accountants Firm’s Registration No : 101248W/W-100022 Jamil Khatri Partner Membership No : 102527 Mumbai, 12 th June, 2020 Anand G. Mahindra Executive Chairman Dr. Pawan Goenka Managing Director and CEO Dr. Anish Shah Deputy Managing Director and Group CFO Rajesh Jejurikar Executive Director (Auto and Farm Sectors) Narayan Shankar Company Secretary Mumbai, 12 th June, 2020