annual-report-FY2020

61 MAHINDRA & MAHINDRA LTD. INTEGRATED ANNUAL REPORT 2019-20 and back up lines of credit. It shored up additional lines of liquidity. During the year, your Company availed short term working capital and export finance. As on 31 st March, 2020, Rs. 900 crores of short term working capital and trade finance, was outstanding. During the year, your Company repaid Rs. 91.01 crores of long term borrowings from internal accruals. The Company’s Bankers continue to rate your Company as a prime customer and extend facilities / services at prime rates. Your Company follows a prudent financial policy and aims not to exceed an optimum financial gearing at any time. The Company’s total Debt to Equity Ratio was 0.09 as at 31 st March, 2020. Your Company has been rated by CRISIL Limited (“CRISIL”), ICRA Limited (“ICRA”), India Ratings and Research Private Limited (“India Ratings”) and CARE Ratings Limited (“CARE”) for its Banking facilities. All have re-affirmed the highest credit rating for your Company’s Short Term facilities. For Long Term facilities and Non-Convertible Debenture (“NCD”) programme, CRISIL, ICRA and India Ratings have re-affirmed their credit ratings of CRISIL AAA/Stable, [ICRA]AAA (stable) and IND AAA/Stable for the respective facilities rated by them. With the above rating affirmations, your Company continues to enjoy the highest level of rating from all major rating agencies at the same time. The AAA ratings indicate highest degree of safety regarding timely servicing of financial obligations and is also a vote of confidence reposed in your Company’s Management by the rating agencies. It is an acknowledgement of the strong credit profile of your Company over the years, resilience in earnings despite cyclical upturns/downturns, robust financial flexibility arising from the significant market value of its holdings and prudent management. Your Company is a “Large Corporate” as per the criteria under SEBI Circular No. SEBI/HO/DDHS/CIR/P/2018/144 dated 26 th November, 2018. Investor Relations (IR) Your Company continuously strives for excellence in its IR engagement with International and Domestic investors. Structured conference calls and periodic investor/analyst interactions including one-on-one meetings, participation in investor conferences, quarterly earnings calls, video conferencing across various key geographies and annual analyst meet with the Executive Chairman, Managing Director and Business Heads were organised during the year. During the year, your Company had organised an event called ‘BS6 knowledge sharing session’, which was to showcase the Company’s preparedness for BS6 transition. Your Company interacted with around 631 Indian and overseas investors and analysts (excluding quarterly earnings calls and specific event related calls) during the year. Your Company always believes in leading from the front with emerging best practices in IR and building a relationship of mutual understanding with investor/analysts. Your Company also engages with investors on Environment, Social and Corporate Governance (ESG), which has received excellent feedback from investors and ESG analysts. Your Company ensures that critical information about the Company is available to all the investors by uploading all such information on the Company’s website. Your Company was awarded as ‘Best Financial Reporting (Large Cap)’ by IR Magazine Awards – 2019, Mumbai and your Company’s Annual Integrated Report won the Gold at the 2019 MARCOM Awards, USA. Dividend Your Directors are pleased to recommend a dividend of Rs. 2.35 per Ordinary (Equity) Share of the face value of Rs. 5 each on the Share Capital, payable to those Shareholders whose names appear in the Register of Members as on the Book Closure Date. Dividend is subject to approval of members at the ensuing Annual General Meeting and shall be subject to deduction of tax at source. The equity dividend outgo for the Financial Year 2019-20 would absorb a sum of Rs. 292.15 crores [as against Rs. 1,187.35 crores comprising the dividend of Rs. 8.50 per Ordinary (Equity) Share of the face value of Rs. 5 each on the enhanced share capital and tax thereon paid for the previous year]. Further, the Board of your Company decided not to transfer any amount to the General Reserve for the year under review. The dividend pay-out is in accordance with the Company’s Dividend Distribution Policy. Dividend Distribution Policy The Dividend Distribution Policy containing the requirements mentioned in Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 is attached as Annexure I and forms part of this Annual Report. B. CONSOLIDATED FINANCIAL STATEMENTS The Consolidated Financial Statements of the Company, its subsidiaries, associates and joint ventures prepared in accordance with the Companies Act, 2013 and applicable