Mahindra & Mahindra Financial Services Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

1. The financial results of the Company have been prepared in accordance with Indian Accounting Standards ('Ind AS') notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) Rules, 2016. The Company has adopted Ind AS from 1 April 2018 with effective transition date of 1 April 2017 and accordingly, these financial results together with the results for the comparative reporting period have been prepared in accordance with the recognition and measurement principles as laid down in Ind AS 34 - Interim Financial Reporting, prescribed under section 133 of the Companies Act 2013 ('the Act') read with relevant rules issued thereunder and the other accounting principles generally accepted in India.

This transition to Ind AS has been carried out from the erstwhile Accounting Standards notified under the Act, read with rule 7 of Companies (Accounts) Rules 2014 (as amended), guidelines issued by the Reserve Bank of India ('the RBI') and other generally accepted accounting principles in India (collectively referred to as 'the Previous GAAP'), Accordingly, the impact of transition has been recorded in the opening reserves as at 1 April 2017 and the corresponding adjustments pertaining to comparative previous period / quarter as presented in these financial results have been restated / reclassified in order to conform to current period presentation.

These financial results have been drawn up on the basis of Ind AS that are applicable to the Company effective from April 2018 based on the Press Release issued by the Ministry of Corporate Affairs ("MCA") on 18 January 2016. Any application guidance/ clarifications/ directions issued by RBI or other regulators are implemented as and when they are issued/ applicable,

2. In compliance with Regulation 33 of the Securities Exchange Board of India ("SEBI") (Listing Obligations and Disclosure Requirements) Regulations, 2015, a limited review of financial results for the quarter and nine months ended 31 December 2018 has been carried out by the Statutory Auditors.
As permitted under circular no. CIR/CFD/FAC/62/2016 dated 5 July 2016 issued by SEBI, the Company has opted to avail exemption for submission of Ind AS compliant financial results for the previous year ended 31 March 2018.

3. As required by paragraph 32 of Ind AS 101, the profit reconciliation between the figures previously reported under Previous GAAP and restated as per Ind AS is as under: For Table, kindly refer Corporate Announcements on www.bseindia.com.

4. The Company has opted to publish only Standalone financial results, pursuant to option made available as per Regulation 33 (3) (b) (i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,

5. The above financial results for the quarter and nine months ended 31 December 2018 along with restated financial results for the quarter and nine months ended 31 December 2017 have been reviewed by the Audit Committee and subsequently approved by the Board of Directors of the Company at its meeting held on 25 January 2019.

6. The financial results for the the quarter and nine months ended 31 December 2017 have been reviewed by the Statutory Auditors.

7. There is no separate reportable segment as per Ind AS 108 on 'Operating Segments' in respect of the Company.

8. All secured NCD's issued by the Company are secured by pari-passu charges on Aurangabad office and exclusive charge on receivables under loan contracts, owned assets and book debts to the extent of 100% of outstanding secured NCD's.

9. During the nine months ended 31 December 2018, the Company has made following additional investments:

i. In Mahindra Finance USA LLC, a Joint Venture company (with 49% ownership) formed jointly with De Lage Landen Financial Services Inc. in the United States - During the quarter ended 30 June 2018, the Company has invested Rs. 963.21 lakhs equivalent to US $ 1.44 million, There is no consequent change in the Company's shareholding pattern.

ii. In Mahindra Asset Management Company Private Limited, its wholly owned subsidiary -
During the quarter ended 30 June 2018 and 31 December 2018, the Company has subscribed to 200.00,000 and 1,00,00,000 Equity shares of Face Value of Rs.10/- each for cash at par fully paid up on a rights basis, respectively. There is no consequent change in the Company's shareholding pattern.

iii. In Mahindra Rural Housing Finance Limited (MRHFL), its subsidiary -
During the quarter ended 31 December 2018, the Company has invested Rs. 15,000,00 lakhs by subscribing to 1,28,20,512 Equity shares of Face Value of Rs. 10/- each for cash at Rs. 117.00 per share, including premium of Rs.107.00 per equity share on a rights basis, fully paid up. The shareholding percentage of the Company stands at 88,75% as on 31 December 2018.

10. During the quarter ended 31 December 2017, the Company has sold 1,28,866 equity shares of face value of Rs. 10/- each representing 5% of holding in subsidiary company, Mahindra Insurance Brokers Ltd., at Rs. 5044,00 per share for a consideration aggregating to Rs. 6500,00 lakhs. This transaction has resulted in profit of Rs. 6497.18 lakhs. Consequent to the said sale transaction, the shareholding p enrage of the Company stands reduced from 85% to 80%.

Ramesh Iyer
Vice Chairman & Managing Director