annual-report-FY2020

65 MAHINDRA & MAHINDRA LTD. INTEGRATED ANNUAL REPORT 2019-20 in Porter taken on a fully diluted basis is 26.6% for the Company, 2.1% for Mahindra & Mahindra Financial Services Limited and 4.8% for Mahindra Trucks and Buses Limited. Investment in Zoomcar Your Company has been keen to invest in the shared mobility space as part of its strategy to promote and participate in sustainable mobility solutions, including multi modal urban mobility, with the objective of enabling improved livelihoods and lifestyles of people enabling them to RISE. As a part of this, in Financial Year 2017-18, your Company invested in Zoomcar India Private Limited (Zoomcar India) which is a leading self-drive car rental company based out of Bengaluru, India and had been 100% owned by Zoomcar Inc. a holding company incorporated in the USA. Your Company subscribed to Compulsory Convertible Preference Shares (CCPS) of Zoomcar India which are ultimately convertible into Preferred Stock of Zoomcar Inc. Besides this, Mahindra Overseas Investment Company (Mauritius) Limited (MOICML), a wholly owned subsidiary of your Company invested in Zoomcar Inc. The effect of this investment, by your Company and MOICML, on an aggregate as-converted to common stock of Zoomcar Inc. basis resulted in your Company and MOICML together holding 16.8% of the Common Stock of Zoomcar Inc. on a fully diluted basis. Further to the above, during the year under review, your Company invested Rs. 18.8 crores and subscribed to Optionally Convertible Debentures of Zoomcar India, which are ultimately convertible into Preferred Stock of Zoomcar Inc. In the interim and during this period, other existing and external investors have been participating in Zoomcar India and Zoomcar Inc. Post this investment, on an aggregate as-converted to common stock of Zoomcar Inc., your Company and MOICML together hold 16.1% of the Common Stock of Zoomcar Inc. on a fully diluted basis for an aggregate investment of around Rs. 196.8 crores. Investment in Gamaya SA, Switzerland Your Company acquired 11.25% stake (on a fully diluted basis) in Gamaya SA by subscribing to equity and preferred shares in June, 2019 for an investment of CHF 4.3 million (Rs. 30.2 crores). Gamaya SA is a start-up based in Switzerland focused on precision agriculture solutions. This investment in Gamaya SA is expected to support the Company’s businesses by developing precision agriculture technology and solutions for its customers. Investment in MITRA Agro Equipments Private Limited During the year, your Company increased its shareholding in MITRA Agro Equipments Private Limited (“MITRA”), from 27% to 40%, for an aggregate consideration of Rs. 7.1 crores. MITRA is engaged in the business of designing, developing, manufacturing, assembling, and selling orchard sprayers. The purchase of additional equity shares in MITRA would support the Company’s Farm Equipment Sector’s growth in the horticulture sector. Acquisition of balance 49% stake in Peugeot Motocycles During the year, your Company increased its shareholding in Peugeot Motocycles (PMTC), from 51% to 100%, by acquiring 49% equity stake in PMTC from Groupe PSA in November, 2019. PMTC is the oldest brand in the two-wheeler space in the world and is head-quartered in Mandeure, France. Transfer of assets of MyAgriGuru and Samriddhi from Mahindra Agri Solutions Limited (MASL) to Mahindra and Mahindra Limited (M&M) During the year, the Company acquired certain tangible and intangible assets pertaining to MyAgriGuru and Samriddhi from Mahindra Agri Solutions Limited (MASL), its subsidiary company for an aggregate consideration of Rs. 17.7 crores. This transfer helped to integrate the precision agriculture and farming-as-a-service (FaaS) businesses under a single umbrella. D. INTERNAL FINANCIAL CONTROLS The Corporate Governance Policies guide the conduct of affairs of your Company and clearly delineates the roles, responsibilities and authorities at each level of its governance structure and key functionaries involved in governance. The Code of Conduct for Senior Management and Employees of your Company (the Code of Conduct) commits Management to nancial and accounting policies, systems and processes. The Corporate Governance Policies and the Code of Conduct stand widely communicated across your Company at all times. Your Company’s Financial Statements are prepared on the basis of the Signi cant Accounting Policies that are carefully selected by Management and approved by the Audit Committee and the Board. These Accounting policies are reviewed and updated from time to time.