MAHINDRA & MAHINDRA LTD. | Integrated Annual Report 2022-23

240 MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2022-23 (B) Other Equity (contd.) Rupees crores Reserves and Surplus Items of other comprehensive income Total Share Pending Issuance Capital Reserve Securities Premium (refer note a) General Reserve (refer note b) Debenture Redemption Reserve Share Option Outstanding Account Retained Earnings Debt instrument through Other Comprehensive Income Equity instrument through Other Comprehensive Income Effective portion of Cash Flow Hedges [Note 34.1.(c)] As at 1 st April, 2021 ........................................................... — 346.10 2,513.99 1,739.26 50.64 254.88 29,463.69 0.30 (5.40) (9.85) 34,353.61 Acquisitions through business combinations [Refer note 44 (B)] ............................................................... 0.06 182.20 4.83 — — 9.91 (847.27) — — — (650.27) Profit for the year................................................................... — — — — — — 4,869.89 — — — 4,869.89 Other Comprehensive Income/(Loss).......................... — — — — — — 102.88 (0.76) (30.44) 4.56 76.24 Total Comprehensive Income for the year ..... — — — — — — 4,972.77 (0.76) (30.44) 4.56 4,946.13 Dividend paid on Equity Shares (including tax thereon) ....................................................................................... — — — — — — (1,087.79) — — — (1,087.79) Transfer to retained earning ........................................ — — — — — (50.76) — 0.09 — (50.67) Exercise of employee stock options........................... 0.03 — 119.87 — — (117.20) — — — — 2.71 Allotment of bonus shares by M&M ESOP Trust to Employees ............................................................. — — (0.45) — — — — — — — (0.45) On account of employee stock options lapsed... — — — 3.10 — (3.10) — — — — — Share based payment to employees........................ — — — — — 86.48 — — — — 86.48 As at 31 st March, 2022 .................................................... 0.09 528.30 2,638.24 1,742.36 50.64 230.98 32,450.64 (0.46) (35.75) (5.29) 37,599.75 Remeasurement loss (net) on defined benefit plans Rs. 92.85 crores (2022 : Gain of Rs. 102.88 crores) has been recognised during the year as part of retained earnings. (C) Description of the nature and purpose of Other Equity: (i) Capital reserve: Capital reserve mainly represents the amount of net assets acquired over and above consideration paid consequent to the scheme of arrangement. (ii) Securities premium: Securities premium reserve is used to record the premium on issue of shares. The fair value of employee stock options is recognised in Securities Premium once the shares have been allotted on exercise of the options. (iii) General reserve: General reserve comprises of transfer of profits from retained earnings for appropriation purposes. The reserve can be distributed/utilised by the Company in accordance with the Companies Act, 2013. (iv) Retained earnings: Retained earnings comprises of accumulated balance of profits/(losses) of current and prior years including transfers made to / from other reserves from time to time. The reserve can be utilized or distributed by the Company in accordance with the provisions of the Companies Act, 2013. (v) Debenture redemption reserve: Debenture redemption reserve is a statutory reserve (as per Companies Act, 2013) created out of profits of the Company available for payment of dividend for the purpose of redemption of Debentures issued by the Company. On completion of redemption, the reserve is transferred to retained earnings. (vi) Share option outstanding account: Share option outstanding account represents reserve in respect of equity settled share options granted to the Company’s employees in pursuance of the Employee Stock Option Plan. Notes: (a) Th e Company has reduced the share capital by Rs. 11.36 crores (2022: Rs. 11.65 crores) and securities premium by Rs. 182.94 crores (2022: Rs. 182.94 crores) for the 2,27,05,304 shares of Rs. 5 each (2022: 2,32,95,651 shares of Rs. 5 each) held by the M&M ESOP Trust pending transfer to the eligible employees. (b) Th e share capital of the Company has also been reduced and the securities premium increased by Rs. 11.36 crores (2022: Rs. 11.65 crores) for the 2,27,05,303 bonus shares of Rs. 5 each (2022: 2,32,95,650 bonus shares of Rs. 5 each) issued by the Company in December, 2017 to the M&M ESOP Trust but not yet transferred by the M&M ESOP Trust to the employees. The accompanying notes 1 to 46 are an integral part of the Financial Statements. Directors: Vikram Singh Mehta Vishakha N. Desai T. N. Manoharan Haigreve Khaitan Shikha Sharma Nisaba Godrej Muthiah Murugappan Vijay Kumar Sharma CP Gurnani (DIN - 00041197) (DIN - 05292671) (DIN - 01186248) (DIN - 00005290) (DIN - 00043265) (DIN - 00591503) (DIN - 07858587) (DIN - 02449088) (DIN - 00018234) In terms of our report attached. For B S R & Co. LLP Chartered Accountants Firm’s Registration No : 101248W/W-100022 Venkataramanan Vishwanath Partner Membership No : 113156 Mumbai, 26 th May, 2023 Anand G. Mahindra Chairman (DIN - 00004695) Anish Shah Managing Director and CEO (DIN - 02719429) Rajesh Jejurikar Executive Director and CEO (Auto and Farm Sector) (DIN - 00046823) Manoj Bhat Group Chief Financial Officer Narayan Shankar Company Secretary (ACS No. 8666) Mumbai, 26 th May, 2023 For Mahindra & Mahindra Limited