MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2021-22

COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS 202 The status of pending complaints/cases as on 31 st March, 2022 is as follows: 2021-22 Automotive Division Farm Division (Including Swaraj) Total Percentage of Consumer Cases pending against the Company as on 31 st March 2022 of cumulative cases pending or filed since 1 st April 2009. 32.23% 40.02% 33.81% Auto Division – Customer Complaints Receiving Period Total Complaints registered in this period Open Closed Open % Closed % F22 29,827 738 29,089 2.47% 97.53% F12-F22 3,55,344 738 3,54,606 0.21% 99.79% Farm Division – Customer Complaints Receiving Period Total Complaints registered in this period Open Closed Open % Closed % FY 22 18,579 297 18,282 1.60% 98.40% F11-22 1,82,755 297 1,82,458 0.16% 99.84% F22 Swaraj Division 2,745 26 2,719 0.95% 99.05% F11-F22 Swaraj Division 9,030 26 9,004 0.29% 99.71% 2. D oes the Company display product information on the product label, over and above what is mandated as per local laws? Yes/No/N.A. /Remarks (additional information) Y es. The Company provides appropriate service and safety labels in addition to mandatory requirements. For example, product fuel economy data is displayed for each variant at dealerships where the products are sold. 3. I s there any case filed by any stakeholder against the Company regarding unfair trade practices, irresponsible advertising and/or anti-competitive behaviour during the last five years and pending as on end of financial year? If so, provide details thereof, in about 50 words or so. Y es. The Company has been impleaded in the below listed proceedings that allege unfair competition/ trade practices. The Company believes that the allegations are untrue and without merit and is vigorously defending itself in these proceedings. Description of the matters pending under the Competition Act, 2002: Case No. 3/2011: B ased on the information given by the Informant ‘Shamsher Kataria’ against 3 car manufacturers about non-availability of spare parts in the open market, the Competition Commission of India (CCI) commenced investigation of 17 car manufacturers. On August 25, 2014 CCI passed an order (“Order”) against fourteen companies including Mahindra & Mahindra Limited (M&M). By this Order, the CCI imposed a penalty of Rs. 292.25 crores amounting to 2% of the average annual turnover for the years 2007-08, 2008-09 and 2009-10. M&M vide a Writ Petition W.P.(C) 6610/2014 (“W.P”) filed before the Delhi High Court challenged the constitutional validity of certain sections of the Competition Act, 2002 based on which the order and penalty was decided by the CCI. On 10 th April 2019, the Delhi High Court pronounced its order (HC order) and held certain sections of the Competition Act as unconstitutional. The HC order requires that in view of its directions, new guidelines be framed by CCI, in regard to the manner in which the CCI conducts its proceedings. M&M challenged the aforesaid Order of Delhi HC by filing a SLP before the Supreme Court. The Hon’ble Supreme Court was pleased to issue notice to Respondents and further granted stay on Impugned CCI Order till the next date of hearing. U nion of India (“UOI”) had also filed SLP against the Judgement dated 10.04.2019, along with an Application for Condonation of Delay, as the SLP filed by them is barred by limitation. The matter came up for hearing on 17.08.2021 when the court condoned the delay in filing of SLP by the UOI. M&M has filed its reply to the SLP filed by the UOI. Thereafter, the matter has not yet come up for hearing.