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

MAHINDRA & MAHINDRA LIMITED 24 1) For Item No. 11 Details of the Material Related Party Transactions entered / to be entered between the Company and its Subsidiaries/ Associate: Sr. No. Name of the Related Party Nature of relationship with the Company, including nature of its concern or interest (financial or otherwise) Monetary Value per Related Party 1. a. Mahindra and Mahindra Financial Services Limited Subsidiary Not exceeding 4% of the Annual Consolidated Turnover of the Company # or Rs. 4,000 Crores, whichever is higher, per annum b. Mahindra Electric Automobile Limited* Subsidiary Not exceeding 9.5% of the Annual Consolidated Turnover of the Company # or Rs. 9,500 Crores, whichever is higher, per annum c. Mahindra Last Mile Mobility Limited** Subsidiary Not exceeding 6% of the Annual Consolidated Turnover of the Company # or Rs. 6,000 Crores, whichever is higher, per annum d. Mahindra Susten Private Limited*** Subsidiary Not exceeding 1.5% of the Annual Consolidated Turnover of the Company # or Rs. 1,500 Crores, whichever is higher, per annum e. Sustainable Energy Infra Trust @ Associate Not exceeding 2% of the Annual Consolidated Turnover of the Company # or Rs. 2,000 Crores, whichever is higher, per annum * Will cease to be a wholly owned subsidiary upon investment by British International Investment PLC ("BII") in equity shares of Mahindra Electric Automobile Limited ("MEAL"). The above mentioned monetary value per annum covers transactions with MEAL as a non wholly-owned subsidiary. ** Mahindra Last Mile Mobility Limited or such other name as may be approved by the Registrar of Companies ("MLMML"), is in the process of being incorporated. MLMML will cease to be a wholly owned subsidiary upon investment by International Finance Corporation ("IFC") in Compulsorily Convertible Preference Shares of MLMML. The above mentioned monetary value per annum covers transactions with MLMML as a non wholly-owned subsidiary. *** Mahindra Susten Private Limited ("MSPL") is a subsidiary of Mahindra Holdings Limited ("MHL"). MHL is wholly-owned subsidiary of the Company and thus, MSPL is a subsidiary of the Company. @ Sustainable Energy Infra Trust (“SEIT”), is a proposed Infrastructure Investment Trust ("InvIT") with MSPL and Ontario Teachers' as Sponsors, which is under the process of being registered with Securities and Exchange Board of India ("SEBI"). The Company directly is expected to hold up to 26% of the total unit holding of SEIT, after the primary and secondary transactions are completed, as part of listing of SEIT. # The Annual Consolidated Turnover shall be as per the last audited financial statements of the Company. 2. Type, Nature, material terms and particulars of the contract or arrangements 2a. Mahindra and Mahindra Financial Services Limited ("MMFSL"): Maximum Amount in any Financial Year Higher of (A) and (B) Monetary values p.a. Rs. in crores (A) % of Consolidated Turnover as per the last audited financial statements of the Company for the relevant financial year (B) a) Providing fund based and non-fund based support including equity/ debt/ Inter-corporate deposits (ICD), convertible/ non-convertible instruments/ Guarantee/ security etc., in connection with loans provided and Interest, commission and other related income / expenses; 2,000 2.0% b) Purchase / sale / transfer / exchange / lease of vehicles, including passenger and commercial vehicles, electric vehicles, tractors, implements, farm machinery etc., business assets including property, plant and equipment, Intangible assets, transfer of technology to meet the business objectives and requirements; 1,000 1.0% c) Financial services income/expenses relating to vehicle financing, leasing & associated services, bill discounting, subvention, arrangement fees etc. 600 0.60% d) Sharing or usage of each other’s resources like employees, infrastructure including IT assets, cloud, IOT and digital engineering, digital transformation, analytics, cyber security, receipt of royalty / brand usage, manpower, management and management support services, owned / third party services and reimbursements; 200 0.20% e) Any transfer of resources, services or obligations to meet its objectives/requirements. 200 0.20% Note: The value of corporate actions, if any, from MMFSL including receipt of dividends, tendering securities as a part of buyback offer, receipt of bonus securities, subscribing to rights issue, etc. by the Company that are uniformly offered/applicable to all shareholders in proportion to their shareholding, would be as approved by the Board of Directors / Shareholders of MMFSL. However, the total value of transactions between the Company and MMFSL including dividend received will not breach the overall limit for each of the financial years from 2023-24 to 2027-28 which is the higher of the monetary value of Rs. 4,000 crores and an amount which is 4% of the annual consolidated turnover as per the last audited financial statements of the Company.