annual-report-FY2020

337 MAHINDRA & MAHINDRA LTD. INTEGRATED ANNUAL REPORT 2019-20 29. Exceptional items (net) Exceptional items (net) recognised in the statement of profit and loss Rupees crores Particulars 2020 2019 Gain on change in ownership interests in subsidiaries (resulting in loss of control), associates and joint ventures and change of relationships............................................................................................................ 274.76 569.28 Impairments: - Property, plant and equipments and other Intangible assets (including impairment of Capital work-in- progress and Intangible under development of Rs. 97.37 crores)........................................................................ (1,222.34) — Goodwill..................................................................................................................................................................... (663.42) (49.86) Investment accounted using equity method.......................................................................................................... (362.89) (135.10) Debt Instruments measured at FVTOCI................................................................................................................... — (160.00) Total ............................................................................................................................................................................ (1,973.89) 224.32 As described in note 2(h), the Group reviews for indication of asset impairment at the end of reporting date in addition to any impairment indicators that may arise in between the two reporting periods. If there is any indication of asset impairment, the Group estimates the recoverable amount of the asset to determine the amount of the impairment loss. During the year ended 31 st March, 2020, the internal and external sources of information including the effect of COVID-19 on the economic environment in which these entities operate, provided indicators of asset impairment for certain international subsidiaries. Consequently, impairment has been recognised for property, plant and equipment, capital work-in-progress, intangible assets under development and other intangible assets of certain CGUs amounting to Rs. 1,222.34 crores during the year ended 31 st March, 2020 (2019 – Nil) based on the fair value less costs to sell. As detailed in note 5, impairment of goodwill amounting to Rs. 663.42 crores has been recognised during the year ended 31 st March, 2020 (2019 – Rs. 49.86 crores). Further, as described in the note 2(c), the investments in associates and joint ventures are accounted using equity method as per Ind AS 28 – Investments in Associates and Joint Ventures. As required by Ind AS 28, after application of the equity method, the Group assesses if there is any objective evidence based on observable data that its net investment in the associate or joint venture is impaired. Based on the observable evidence, certain investments in associate and joint ventures were tested for recoverable amounts and impairment amounting to Rs. 362.89 crores has been recognised during the year ended 31 st March, 2020 (2019 – Rs. 135.10 crores). Additionally, impairment of debt instruments measured at FVTOCI amounting to Rs. 160.00 crores has been recognised during the year ended 31 st  March, 2019. 30. Earnings Per Share (EPS) Particulars 2020 2019 Profit for the year for basic EPS (Rupees crores)..................................................................................................... 127.04 5,315.46 Profit for the year for diluted EPS (Rupees crores)................................................................................................. 114.97 5,315.46 Weighted average number of Ordinary (Equity) Shares used in computing basic EPS......................................... 1,10,44,52,959 1,08,68,05,987 Effect of dilutive potential Ordinary (Equity) Shares............................................................................................... 45,90,921 47,60,035 Weighted average number of Ordinary (Equity) Shares used in computing diluted EPS..................................... 1,10,90,43,880 1,09,15,66,022 Basic Earnings per share (Rs.) (Face value of Rs. 5 per share)................................................................................. 1.15 48.91 Diluted Earnings per share (Rs.)................................................................................................................................ 1.04 48.70 31. Employee Benefits General description of defined benefit plans Gratuity Some of the group entities operate a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount calculated as per the Payment of Gratuity Act or the Company scheme applicable to the employee. The benefit vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. Some entities makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through its Gratuity Trust Fund. A Group company provides certain severance benefit to employees on leaving service. The benefit is payable after one year of service and is one months salary for every completed year of service. Additionally based on number of years of service an additional benefit is provided on normal retirement.