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

298 MAHINDRA & MAHINDRA LTD. Integrated Annual Report 2022-23 (B) (i) The Scheme of Merger by Absorption of a subsidiary, Mahindra Electric Mobility Limited (‘MEML’) with the Company and their respective Shareholders (‘the Scheme’) has been approved by the Mumbai Bench of National Company Law Tribunal on 13 th January, 2023. The Scheme has taken effect from the appointed date i.e., 1 st April, 2021. (ii) The above scheme of merger have been accounted under ‘the pooling of interests method’ i.e. in accordance with Appendix C of Ind AS 103 – Business Combinations and comparatives have been restated for the merger from the beginning of previous year i.e., 1 st April, 2021. Accordingly, the impact of MEML has been included in the standalone financial statements for the previous period presented. The effect of the merger on the amounts of Revenue and Profit published in the respective period are as shown in the below table. Rupees crores Particulars 2022 Revenue from operations: As published in previous year....................................................................................................................................................................................................................... 57,445.97 As restated for the effect of merger...................................................................................................................................................................................................... 57,786.94 Profit/(loss) after tax: As published in previous year....................................................................................................................................................................................................................... 6,235.46 As restated for the effect of merger...................................................................................................................................................................................................... 6,147.98 45. Additional Regulatory Information: a. Ratios: Rupees crores Particulars 2023 2022 Debt-Equity Ratio (times) (Long term Borrowings + Short term Borrowings (including current maturities of long term borrowings)/(Total Equity)............................................................................................................................................................................... 0.11 0.17 Debt Service Coverage Ratio (times) (Profit before interest, tax, depreciation, amortisation, impairments and exceptional items)/(Gross interest for the period + Principal repayments within a year).............................................................................................. 4.69 10.85 Return on Equity (Net Profit for the period/Average Total Equity for the period).......................................................................................... 16.06% 13.31% Inventory Turnover (times) (Cost of materials consumed/Average Inventories for the period).................................................................................... 8.69 7.92 Trade Receivables Turnover (times) (Revenue from sale of goods and services)/(Average Trade Receivable for the period)................................... 23.52 21.63 Trade Payables Turnover (times) (Purchase of goods and services + Other Expenses)/(Average Trade Payable for the period)..................... 4.91 4.12 Net Capital Turnover (times) (Revenue from operations)/[Average working capital (Current assets less Current liabilities) for the period]............................................................................................................................................................................................................................ 10.72 9.74 Net Profit margin (%) (Net Profit for the period/Revenue from operations)................................................................................................................. 7.71% 8.43% Return on Capital Employed (%) (Profit before interest and tax/(Average Total Equity + Average Total Debt for the period).......................... 18.13% 14.64% Return on Investment (%) (Income earned on investments/Average Investment for the period)............................................................................. 5.75% 4.62% Explanatory notes: (i) Cost of materials consumed for the purpose of Inventory turnover ratio includes Purchases of stock-in-trade and Changes in inventories of finished goods, stock-in-trade and work-in-progress. (ii) Investments includes current and non-current investments including Fixed deposits, Mutual funds, Corporate deposits, Inter corporate deposits excluding investments in Equity instruments. 44. Other information: (contd.)