annual-report-FY2020

MAHINDRA & MAHINDRA LIMITED 21 The following additional information as required by Schedule V to the Companies Act, 2013 is given below: I. General Information: (i) Nature of Industry: The Company is, inter alia, in the business of manufacture of different range of automotive vehicles, agricultural tractors, implements, industrial engines, etc. (ii) Date or expected date of commencement of commercial production: The Company was incorporated on 2 nd October, 1945 and started assembly of jeep type vehicles in the year 1949. (iii) In case of new companies, expected date of commencement of activities as per project approved by financial institutions appearing in the prospectus: Not Applicable. (iv) Financial performance based on given indicators – as per audited financial results for the year ended 31 st March, 2020: Particulars Rs. in crores Gross Turnover & Other Income 47,155.59 Net profit as per Statement of Profit & Loss (After Tax) 1,330.55 Computation of Net Profit in accordance with section 198 of the Companies Act, 2013 5,081.82 Net Worth 34,467.84 (v) Foreign investments or collaborators, if any: Not Applicable. II. Information about the appointee: (i) Background details: Refer profile Section as stated above (ii) Past remuneration during the financial year ended 31 st March, 2020: Rs. 574.40 lakhs (as President – Farm Equipment Sector) (iii) Recognition or awards: Refer profile Section stated above (iv) Job Profile and his suitability: Mr. Jejurikar has diverse experience across Packaged Goods, Advertising, Media, Automotive and Farm Equipment. He joined the Company in the year 2000 as Vice President – Marketing for Automotive Sector. In 2003, he was appointed as Executive Vice President – Sales & Marketing. In 2005, he was given additional responsibility as the Managing Director of Mahindra Renault in India. In 2008, he became Chief of Operations of the Automotive Sector and when Automotive & Farm Equipment Sector (AFS) was formed in 2010, he was appointed Chief Executive for the Automotive Division and Member of the Group Executive Board. In 2013, Mr. Jejurikar joined the Farm Equipment Sector as Chief Executive – Tractor & Farm Mechanisation and became the Sector President in 2015. The Company has witnessed intrinsic growth under his leadership in his past assignments in the Automotive and Farm Equipment Sectors. Taking into consideration his qualifications and expertise in relevant fields, Mr. Jejurikar is best suited for the responsibilities currently assigned to him. (v) Remuneration proposed: Scale of Salary: Basic Salary of Rs. 16,97,345 per month in the scale of Rs. 12,00,000 to Rs. 26,00,000 per month, for a period of 5 years with effect from 1 st April, 2020 to 31 st March, 2025. Perquisites and Performance Pay: As stated in Resolution No. 10. Mr. Jejurikar is also entitled to grant of Stock Options as may be decided by the Governance, Nomination and Remuneration Committee of the Company, from time to time. The number of Stock Options granted and outstanding as on 31 st March, 2020, are 36,001, of which 12.58% have vested and are unexercised and the balance 87.42% would vest during the period of his appointment. Based on certain eligibility criteria including number of years’ service, grade and performance rating, and basis the market price of equity shares of the Company as on 31 st March, 2020, the expected perquisite value of options to be granted to Mr. Jejurikar during his period of appointment could be around Rs. 20 crores. The exact perquisite value of the ESOPs to be granted during his period of appointment, would depend on the actual number of options that may be granted by Governance, Nomination and Remuneration Committee, number of options exercised by Mr. Jejurikar and the market price of the shares on the date of exercise of options granted. It is proposed to authorise the Board (which term shall be deemed to include any duly authorised Committee thereof, for the time being exercising the powers conferred on the Board by this Resolution) to revise the basic salary payable to Mr. Jejurikar, within the abovementioned scale of salary. Notice period applicable to a Whole-time Director of the Company is six months. (vi) Comparative remuneration profile with respect to industry, size of the company, profile of the position and person (in case of expatriates the relevant details would be with respect to the country of his origin): Taking into consideration the size of the Company, the profile of Mr. Jejurikar, the responsibilities shouldered by him and the industry benchmarks, the remuneration proposed to be paid is commensurate with the remuneration packages paid to similar senior level counterpart(s) in other companies.