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

317 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS (C) Other reserves Rupees crores Particulars Capital Redemption Reserve Capital Reserve Debenture Redemption Reserve General Reserve Statutory Reserve Total As at 1 st April, 2022........................................................................... 73.69 23.52 76.02 3,146.36 1,312.71 4,632.30 Transfer from retained earnings......................................................................... — — — — 210.76 210.76 On disposal of subsidiaries during the year............................................... — — (2.23) — — (2.23) On account of employee stock options lapsed........................................ — — — 4.04 — 4.04 As at 31 st March, 2023...................................................................... 73.69 23.52 73.79 3,150.40 1,523.47 4,844.87 As at 1 st April, 2021........................................................................... 73.69 23.52 76.02 3,143.26 1,194.93 4,511.42 Transfer from retained earnings......................................................................... — — — — 117.78 117.78 On account of employee stock options lapsed........................................ — — — 3.10 — 3.10 As at 31 st March, 2022...................................................................... 73.69 23.52 76.02 3,146.36 1,312.71 4,632.30 (D) 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 Company has also reduced the share capital by Rs. 21.12 crores (2022: Rs. 21.12 crores) and retained earnings by Rs. 1,168.20 crores (2022: Rs. 1,168.20 crores) for 4,22,35,214 shares of Rs. 5 each (2022: 4,22,35,214 shares of Rs. 5 each) held by M&M Benefit Trust. c) Th e share capital of the Company has also been reduced and the securities premium increased by Rs. 32.47 crores (2022: Rs. 32.77 crores) for 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 to M&M ESOP Trust and for 4,22,35,214 bonus shares of Rs. 5 each (2022: 4,22,35,214 bonus shares of Rs. 5 each) issued by the Company to M&M Benefit Trust in December, 2017. (E) Description of the nature and purpose of reserves (i) Capital reserve C apital reserve represents receipt of Government grants from a package of incentive given by Maharashtra Government for setting up /extension of plants in specified areas. (ii) Capital reserve on consolidation G ain on bargain purchase, i.e., excess of fair value of net assets acquired over the fair value of consideration in a business combination or on acquisition of interest in associate is recognised as capital reserve on consolidation. (iii) Securities premium S ecurities premium 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. (iv) General reserve Th e 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. (v) Retained earnings R etained 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 utilised or distributed by the Company in accordance with the provisions of the Companies Act, 2013 (vi) Debenture redemption reserve D ebenture 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. (vii) Share option outstanding account Th e 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. (viii) Statutory reserve Statutory reserve has been created pursuant to section 45- IC of the RBI Act, 1934 and section 29C of the National Housing Act, 1987. (ix) Capital redemption reserve C apital redemption reserve was created against redemption of preference shares. The accompanying notes 1 to 49 are an integral part of the Consolidated Financial Statements Consolidated Statement of Changes in Equity | for the year ended 31 st March, 2023 (contd.) 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