annual-report-FY2020

287 MAHINDRA & MAHINDRA LTD. INTEGRATED ANNUAL REPORT 2019-20 Revenue from type of products and services The operating segments are primarily based on nature of products and services and hence the Revenue from external customers of each segment is representative of revenue based on products and services. Geographical Information: Rupees crores Particulars 2020 2019 Domestic Overseas Total Domestic Overseas Total Revenue from External Customers 42,930.58 2,557.20 45,487.78 50,237.54 3,376.46 53,614.00 comprising of: – Revenue from contracts with customers 42,737.56 2,557.20 45,294.76 49,973.98 3,371.12 53,345.10 – Revenue from other sources 193.02 — 193.02 263.56 5.34 268.90 Non-Current Assets 16,986.85 — 16,986.85 15,062.20 — 15,062.20 Domestic includes sales to customers located in India and service income accrued in India. Overseas includes sales and services rendered to customers located outside India. Information about major customers During the years ended 31 st March, 2020 and 31 st March, 2019 no revenues from transactions with a single external customer amount to 10% or more of the Company’s revenues from external customers. 38. Adoption of Ind AS 116 - Leases (a) Effective 1 st April 2019, the Company has adopted Ind AS 116 - Leases using a modified retrospective approach. Accordingly, on initial application of Ind AS 116, in respect of leases previously classified as operating leases, lease liability is measured at the present value of remaining lease payments discounted using the incremental borrowing rate at the date of initial application and the Right-of-use asset has been measured at the amount equal to lease liability, adjusted for any prepaid or accrued lease payments recognised in the balance sheet immediately before the date of initial application. (b) Effect of initial application of Ind AS 116 on transition date is disclosed below. (i) Lease liabilities recognised on the date of initial application: Rupees crores Operating lease commitments as per Ind AS 17 as at 31 st March, 2019....................................................................... 217.01 Weighted average incremental borrowing rate (% p.a.) as at 1 st April, 2019............................................................. 6.50%- 8.47% Present value of lease commitments using incremental borrowing rate..................................................................... 192.25 Adjustments Practical expedient for leases with remaining lease term less than 12 months.......................................................... (74.83) Lease liabilities recognised on initial application............................................................................................................ 117.42 (ii) Right of use asset recognised on the date of initial application: Rupees crores Lease liability amount recognised.................................................................................................................................... 117.42 Prepaid or accrued lease amounts recognised in the balance sheet............................................................................ 115.78 Amounts recognised as net investment in sub-lease...................................................................................................... (1.92) Right of use asset recognised on initial application....................................................................................................... 231.28 39. Contingent Liability & Commitments: (A) Contingent Liability: (a) Claims against the Company not acknowledged as debts comprise of: (i) Excise Duty, Sales Tax and Service Tax claims disputed by the Company relating to issues of applicability and classification aggregating Rs. 1,993.91 crores (2019: Rs. 2,006.90 crores) before tax. (ii) Other matters (excluding claims where amounts are not ascertainable): Rs. 33.09 crores (2019: Rs. 27.46 crores) before tax. (b) Taxation matters: (i) Demands against the Company not acknowledged as debts and not provided for, in respect of which the Company is in appeal and exclusive of the effect of similar matters in respect of assessments remaining to be completed. – Income-tax: Rs. 1,265.65 crores (2019: Rs. 1,128.52 crores). 37. Segment information (contd.)