annual-report-FY2020

355 MAHINDRA & MAHINDRA LTD. INTEGRATED ANNUAL REPORT 2019-20 Impact of acquisition on the results of the Group The revenue and loss for the year ended 31 st March, 2020 includes Rs. 31.51 crores and Rs. 9.74 crores respectively. If the acquisition had happened at the beginning of the year, the management estimates that, reported revenue would have been higher by Rs. 100.65 crores and loss would have been higher by Rs. 9.09 crores . Fifth Gear Ventures Limited (“FGVL”) On 17 th January, 2020, the Group has acquired 100% stake in Fifth Gear Ventures Limited (“FGVL”) for consideration in cash aggregating to Rs. 16.44 crores and deferred consideration aggregating to Rs. 14.01 crores . FGVL is into operation and maintenance of e-commerce marketplace platform which keeps its users updated with the latest information and reviews from the global automotive industry. It also provides its users platofrm to buy and sell used cars. The purchase price has been preliminary allocated based on estimates made by the management resulting into goodwill on consolidation of Rs. 30.45 crores . Impact of acquisition on the results of the Group The revenue and loss for the year ended 31 st March, 2020 includes Rs. 1.77 crores and Rs. 0.51 crores respectively. If the acquisition had happened at the beginning of the year, the management estimates that, reported revenue would have been higher by Rs. 6.34 crores and loss would have been higher by Rs. 3.44 crores . b) Acquisition of joint venture New Delhi Centre for Sight Limited (“NDCFS”) On 14 th May, 2019, the Group acquired 30.83% stake in New Delhi Centre for Sight Limited (“NDCFS”), a chain of eye specialty hospitals with presence in many parts of the country for cash consideration aggregating to Rs. 206.51 crores . NDCFS offers a comprehensive suite of diagnostic and surgical eye care procedures. c) Disposal of subsidiary Cleansolar Renewable Energy Private Limited During the year ended 31 st March, 2020, Mahindra Renewables Private Limited, a step-down wholly owned subsidiary of the Company, has sold its 100% stake in the Cleansolar Renewable Energy Private Limited, for an aggregate consideration amounting to Rs. 108.39 crores . Following the disposal, a gain aggregating to Rs. 39.46 crores is recognised in the statement of profit and loss. d) Change in status Orizonte Business Solutions Limited During the year ended 31 st March, 2020, the Orizonte Business Solutions Limited (“OBSL”), a wholly owned subsidiary was merged with Smartshift Logistics Solutions Private Limited (earlier known as Resfeber Labs Private Limited) (“Smartshift”), a joint venture of the Company for the consideration received in the form of equity shares of Smartshift. The arrangement is treated as transfer of assets and liabilities of OBSL outside the group i.e. it is not treated as a common control transaction and consequently, a gain aggregating to Rs. 88 crores is recognised in the statement of profit and loss. Consequent to the issue of shares as consideration, the Company’s effective shareholding in the Smartshift is 44.29%. Marvel Solren Private Limited During the year ended 31 st March, 2020, through a combination of partial stake sale of Marvel Solren Private Limited (“MSPL”) to certain investors and the capital infusion in MSPL by those investors, the status of MSPL has changed from a subsidiary to joint venture with the effective shareholding of 51%. The gain on sale of stake sold and gain on fair valuation of retained stake aggregating to Rs. 17.61 crores is recognised in the statement of profit and loss. Mahindra Summit Agrisciences Limited Mahindra Agri Solutions Limited (“MASL”), a subsidiary of Mahindra & Mahindra Limited, has entered into a business transfer agreement with Mahindra Summit Agrisciences Limited (“MSAL”). Pursuant to this arrangement a part of the business of MASL was sold to MSAL for an aggregate consideration of Rs. 128.10 crores . Subsequent to this transaction, MASL has transferred stake of 40% to an investor for aggregate consideration of Rs. 57.22 crores . As a result of these transactions, a gain aggregating to Rs. 55.08 crores has been recognised in the statement of profit and loss. 34. Significant changes in ownership (contd.) a) Acquisition of subsidiaries (contd.)