annual-report-FY2020

302 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS (C) Other reserves Rupees crores Particulars Capital Redemption Reserve Capital Reserve Debenture Redemption Reserve General Reserve Statutory reserve Total As at 1 st April, 2018................................................................. 73.69 23.52 236.65 3,058.51 835.29 4,227.66 Transfer from retained earnings............................................. — — 115.04 80.08 194.37 389.49 Transfer to retained earnings.................................................. — — (80.62) — (0.86) (81.48) Allotment of shares by M&M ESOP trust to employees......... — — — (0.04) — (0.04) On account of employee stock options lapsed..................... — — — 0.13 — 0.13 As at 31 st March, 2019............................................................. 73.69 23.52 271.07 3,138.68 1,028.80 4,535.76 As at 1 st April, 2019................................................................. 73.69 23.52 271.07 3,138.68 1,028.80 4,535.76 Transfer from retained earnings............................................. — — 11.26 — 114.41 125.67 Transfer to retained earnings.................................................. — — (187.07) — — (187.07) On account of employee stock options lapsed..................... — — — 2.29 — 2.29 As at 31 st March, 2020............................................................. 73.69 23.52 95.26 3,140.97 1,143.21 4,476.65 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 M&M ESOP Trust pending transfer to the eligible employees. b) The Company has also reduced the share capital by Rs. 21.12 crores (2019: Rs. 25.92 crores) and retained earnings by Rs. 1,168.30 crores (2019: Rs. 1,433.85 crores) for 4,22,35,214 shares of Rs. 5 each (2019: 5,18,35,214 shares of Rs. 5 each) held by M&M Benefit Trust. c) The share capital of the Company has also been reduced and the securities premium increased by Rs. 33.66 crores (2019: Rs. 38.82 crores) for 2,50,76,433 bonus shares of Rs. 5 each (2019: 2,58,02,706 bonus shares of Rs. 5 each) issued by the Company to M&M ESOP Trust and for 4,22,35,214 bonus shares of Rs. 5 each (2019: 5,18,35,214 bonus shares of Rs. 5 each) issued by the Company to M&M Benefit Trust in December, 2017. (D) Description of the nature and purpose of reserves (i) Capital reserve Capital reserve represents receipt of Government grants from a package of incentive given by Maharashtra Government for setting up/extension of plants in specified areas. (ii) Capital reserve on consolidation Gain on bargain purchase, i.e., excess of fair value of net assets acquired over the fair value of consideration in a business combination or on acquisition of interest in associate is recognised as capital reserve on consolidation. (iii) 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. (iv) 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. (v) 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. (vi) Share option outstanding account The share option outstanding represents reserve in respect of equity settled share options granted to the Company’s employees in pursuance of the employee stock option plan. (vii) Statutory reserve Statutory reserve has been created pursuant to section 45- IC of the RBI Act,1934 and section 29C of the National Housing Act, 1987. (viii) Capital redemption reserve Capital redemption reserve was created against redemption of preference shares. The accompanying notes 1 to 44 are an integral part of the Consolidated Financial Statements Consolidated Statement of Changes in Equity | for the year ended 31 st March, 2020 (contd.) 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