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

375 COMPANY OVERVIEW BOARD’S REPORT MANAGEMENT DISCUSSION AND ANALYSIS CORPORATE GOVERNANCE BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT STANDALONE ACCOUNTS CONSOLIDATED ACCOUNTS The fair values of assets and liabilities acquired in respect of the above business combination are as under: Rupees crores Particulars 2023 Property, Plant and Equipment................................................................................................................................................................................................................... 59.08 Intangible Assets.................................................................................................................................................................................................................................................... 16.02 Investments............................................................................................................................................................................................................................................................... 30.00 Cash and cash equivalents............................................................................................................................................................................................................................. 4.28 Other current and non-current assets/(liabilities), net............................................................................................................................................................... 48.59 Borrowings.................................................................................................................................................................................................................................................................. 167.47 Fair value of net asset/(liabilities) acquired ............................................................................................................................................................................... (9.49) (iii) Mahindra Aerospace Private Limited On 29 th March, 2023, Mahindra & Mahindra Limited (the Company) acquired additional 8.41% of voting shares of Mahindra Aerospace Private Limited (MAPL). MAPL is engaged in the business of inter alia , research, design, manufacture, operation, assembly, and maintenance of various kinds of aircrafts and aircraft components and aerostructures, directly /through its subsidiaries. Consequent to this investment, the shareholding and voting rights of the Company in MAPL increased from 91.59% to 100% and the status of MAPL changed from a joint venture to a subsidiary effective 29 th March, 2023. In the consolidated financial statements, the pre-existing shares of MAPL have been remeasured at acquisition date fair value in accordance with Ind AS 103- ‘Business Combinations’. The gain on remeasurement of existing shares at fair value have been recognised as exceptional items in consolidated statement of profit & loss. Consequent to gaining of control, the results of MAPL have been consolidated by the Group from 29 th March, 2023 on a line-by-line basis. The consideration transferred and goodwill on acquisition is as below: Rupees crores Particulars 2023 Purchase consideration..................................................................................................................................................................................................................................... 31.47 Fair value of previously held interest..................................................................................................................................................................................................... 342.64 374.11 Less: Fair value of net assets/(liabilities) acquired......................................................................................................................................................................... 201.54 Goodwill on acquisition ................................................................................................................................................................................................................................. 172.57 The goodwill has been allocated to ‘Others’ segment. The provisional fair values of assets and liabilities acquired in respect of the above business combination are as under: Rupees crores Particulars 2023 Property, Plant and Equipment................................................................................................................................................................................................................... 115.39 Intangible Assets.................................................................................................................................................................................................................................................... 1.48 Cash and cash equivalents............................................................................................................................................................................................................................. 2.61 Other current and non-current assets/(liabilities), net............................................................................................................................................................... 138.25 Borrowings.................................................................................................................................................................................................................................................................. 56.03 Fair value of net asset/(liabilities) acquired ............................................................................................................................................................................... 201.70 (iv) Acquisition of B2B Express business of Rivigo Services Private Limited During the year ended 31 st March, 2023, MLL Express Services Private Limited, a wholly-owned subsidiary of Mahindra Logistics Limited, a subsidiary of the Company, acquired the B2B express business of Rivigo Services Private Limited, as a going concern, on slump sale basis, for a consideration of Rs. 218.51 crores (post adjustments as per the terms of the Business Transfer Agreement). A Goodwill of Rs. 174.41 crores has been recognised in books pertaining to this acquisition. (v) M.I.T.R.A Agro Equipments Private Limited During the year, the Company has acquired 52.67% of the paid up capital of M.I.T.R.A Agro Equipments Private Limited (MITRA) for a consideration of Rs. 61.71 crores . MITRA is an Indian Company which manufactures and sells agricultural sprayers. Following the acquisition, the shareholding of the Company in MITRA stands increased to 100% from the existing 47.33%. Consequently, the status of MITRA changed from joint venture to a wholly owned subsidiary of the Company. A Goodwill of Rs. 86.19 crores has been recognised in books pertaining to this acquisition. 37. Significant acquisitions and changes in ownership (contd.) (a) Acquisition of Subsidiaries /Business (contd.)