MAHINDRA & MAHINDRA LIMITED 27 2. Basis of determination of Price The Company will ensure that the proposed RPTs are done on arms’ length basis which are established taking into account various factors including comparable with unrelated parties or on cost plus reasonable margin basis or market price basis, or transaction net margin method, where available, or certified by any independent agency. Compliance with arms’ length principles is ensured based on the applicable transfer pricing regulations. 3. In case of Trade advance (of upto 365 days or such period for which such advances are extended as per normal trade practice), if any, proposed to be extended to the related party in relation to the transaction, specify the following: a. Amount of trade advance: b. Tenure: c. Whether same is self-liquidating? Not Applicable B(3) and C(2): Disclosure only in case of transactions relating to Investment made by the listed entity or its subsidiary 1. Source of funds in connection with the proposed transaction. The investment would be from own funds/ internal accruals of the Company. The Company would not be incurring indebtedness solely for the purpose of making investment. 2. Where any financial indebtedness is incurred to make investment, specify the following: a. Nature of indebtedness b. Total cost of borrowing c. Tenure d. Other details Not applicable, since the Company would not be incurring financial indebtedness specially for making investments. 3. Purpose for which funds shall be utilized by the investee company The funds shall be used for operational activities and other business requirements of MEAL. 4. Material terms of the proposed transaction Not applicable 5. Latest credit rating of the Related Party: Note: a) Standalone rating to be provided while option to provide Structured Obligation Rating (“SO rating”) and Credit Enhancement rating (“CE rating”), if any b) This shall be applicable in case of investment in debt securities Not Applicable 6. Whether any regulatory approval is required. If yes, whether the same has been obtained. Not Applicable B(7) and C(6): Disclosure only in case of transactions relating to payment of royalty 1. Purpose for which royalty is proposed to be paid to the related party in the current financial year: a. For use of brand name / trademark The proposed royalty is for usage of technology licensing/ intellectual property rights. b. For transfer of technology know-how c. For professional fee, corporate management fee or any other fee d. Any other use (specify)
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