annual-report-FY2021

371 MAHINDRA & MAHINDRA LTD. INTEGRATED ANNUAL REPORT 2020-21 41. Research and Development expenditure In recognised Research and Development units : Debited to the consolidated statement of profit and loss, including certain expenditure based on allocations made by the Group, aggregate Rs. 868.40 crores (2020: Rs. 836.37 crores). 42. Discontinued operations Ssangyong Motor Company (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 ARS program and following the guidance under Ind AS 110 – Consolidated Financial Statements, the Company has ceased consolidating SYMC as a subsidiary from 28 th December, 2020 and has classified the investment to be measured at fair value as per Ind AS 109 – Financial instruments. Consequently, operation of SYMC has been presented as ‘discontinued operations’ in accordance with Ind AS 105 – Non-current assets held for sale and discontinued operations. Accordingly, the losses from operations, resultant gain on deconsolidation of SYMC and impairments/provisions for the exposures of the Company to SYMC have been recognised and presented under ‘Profit/(loss) before tax from discontinued operation’ in the consolidated statement of profit and loss. The comparative periods in the consolidated statement of profit and loss has been restated to reflect the discontinued operations. a) Results of discontinued operations Rupees crores Particulars 2021 2020 Total Income ................................................................................................................................................... 14,748.98 20,120.41 Total Expenses including exceptional items . ............................................................................................... 18,006.72 23,169.53 Profit / (loss) before tax from discontinued operation before share of associates and joint ventures .......................................................................................................................................................... (3,257.74) (3,049.12) Share of associates and joint ventures ......................................................................................................... 5.29 15.30 Profit / (loss) before tax from discontinued operation . ............................................................................ (3,252.45) (3,033.82) Income tax on discontinued operation ........................................................................................................ — — Profit / (loss) after tax from discontinued operation before gain on deconsolidation . ........................ (3,252.45) (3,033.82) Gain on deconsolidation . .............................................................................................................................. 1,062.92 — Profit / (loss) after tax from discontinued operation after gain on deconsolidation . ........................... (2,189.53) (3,033.82) Non-controlling interest ................................................................................................................................ (654.61) (769.07) Profit / (loss) after tax from discontinued operation after non-controlling interests ............................ (1,534.92) (2,264.75) Earnings per equity share (for discontinued operations) .......................................................................... Basic EPS .......................................................................................................................................................... (13.84) (20.51) Diluted EPS . .................................................................................................................................................... (13.77) (20.42) Based on the management judgement and best estimate assumptions of the realisable value of the assets of SYMC, the Company has recognised impairment/provision aggregating to Rs. 671.56 crores during the year ended 31 st March, 2021 for its exposures to SYMC. b) Cash flows from discontinued operations Rupees crores Particulars 2021 2020 Cash flows generated/(used in) from operating activities . ........................................................................ 1,245.30 (2,157.65) Cash flows generated/(used in) from investing activities ........................................................................... 652.05 (754.01) Cash flows generated/(used in) from financing activities .......................................................................... (1,037.07) 1,053.29 Net Cash flows generated/(used) .................................................................................................................. 860.28 (1,858.37)