annual-report-FY2021

352 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS 34. Significant changes in ownership a) Disposal of subsidiary Divine Solren Private Limited During the year ended 31 st March, 2021, Mahindra Renewables Private Limited, a step-down wholly owned subsidiary of the Company, has sold its 100% stake in the Divine Solren Private Limited, for an aggregate consideration amounting to Rs. 124.47 crores . Following the disposal, a gain aggregating to Rs. 41.13 crores is recognised in the consolidated statement of profit and loss. Mahindra First Choice Services Limited and Auto Digitech Private Limited During the year ended 31 st March, 2021, Mahindra Holdings Limited, a wholly-owned subsidiary of the Company, has sold its 100% stake in the Mahindra First Choice Services Limited and Auto Digitech Private Limited, for a consideration aggregating to Rs. 35.00 crores . Following the disposal, a gain aggregating to Rs. 95.05 crores is recognised in the consolidated statement of profit and loss. b) Change in status Mahindra Asset Management Company Private Limited and Mahindra Trustee Company Private Limited Mahindra & Mahindra Financial Services Limited (“MMFSL”), a subsidiary of the Company along with its subsidiaries Mahindra Asset Management Company Private Limited (“MAMCPL”) and Mahindra Trustee Company Private Limited (“MTCPL”) had entered into an agreement to form a Joint Venture with Manulife Asset Management (Singapore) Pte. Ltd. (“Manulife”). Pursuant to these agreements, Manulife has made an equity investment aggregating to USD 35.00 million to acquire 49% of the share capital of MAMCPL & MTCPL. Through a combination of stake sale and the capital infusion by Manulife, status of MAMCPL and MTCPL has changed from a subsidiary to joint venture with shareholding reduced to 51%. The gain on sale of stake and gain on fair valuation of retained stake aggregating to Rs. 228.54 crores is recognised in the consolidated statement of profit and loss. Ssangyong Motor Company (SYMC) SYMC, a material foreign subsidiary of the Company, filed an application before the Bankruptcy Court for commencement of rehabilitation proceedings on 21 st December, 2020 and also applied for the Autonomous Rehabilitation Support Program (“ARS”) to work on a possible deal with a potential investor. The Court approved the ARS and granted time until 28 th February, 2021 to the parties. However, the deal with the potential investor could not be concluded. Consequently, as per the process of rehabilitation, the Court appointed a Receiver to manage the affairs of SYMC. Pursuant to the admission in the Autonomous Rehabilitation Support Program (ARS) and following the guidance under Ind AS 110 – Consolidated Financial Statements, the Group has ceased control over SYMC and accordingly has ceased consolidating SYMC as a subsidiary w.e.f. 28 th December, 2020 and the equity investment in SYMC has been designated as Equity Investment measured at fair value. (Refer note 42)