Mahindra Holidays & Resorts India Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018
1. The Statutory auditors of the Company have carried out a limited review of the unaudited financial results for the quarter and nine months ended December 31, 2018. These financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on January 30, 2019.
2. The standalone financial results of the Company have been prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder and the other accounting principles generally accepted in India, a) The Ministry of Corporate Affairs vide notification dated March 28, 2018 has made Ind-AS 115 "Revenue from Contracts with Customers" (Ind-AS 115) applicable wef April 1, 2018. The Company has applied the modified retrospective approach as per para C3(b) of Ind-AS 115 to contracts that were not completed as on April 1, 2018 and the cumulative effect of applying this standard is recognised at the date of initial application i.e. April 1, 2018 in accordance with para C7 of Ind-AS 115 as an adjustment to the opening balance of the Retained Earnings. The transitional adjustment of Rs. 121,044.68 lakhs (net of deferred tax) has been adjusted against opening retained earnings based on the requirements of the Ind-AS 115. b) Due to the application of Ind-AS 115, membership fees and incremental cost to obtain and/or fulfil a contract with a customer, as applicable, is recognised over the effective membership period. The previous standard permitted the upfront recognition of the non refundable admission fees on sale of membership. c)The information presented for the quarter and nine months ended December 31, 2017 (as per Ind-AS 18) and for the year ended March 31, 2018 (as per Ind-AS 18) have not been restated, hence the figures are not comparable to that extent.
3. As at September 30, 2018, the Company has changed its accounting policy with respect to measurement of freehold land. According to the revised policy, freehold land will be revalued and measured at fair value, based on periodic valuation done by external independent valuer using market approach. Any revaluation surplus will be recorded in OCI and credited to Land revaluation reserve in other equity. This revaluation surplus is not available for distribution to shareholders. (For Table, kindly refer Corporate Announcements on www.bseindia.com.)
4. The Company has a single reportable segment, namely sale of vacation ownership and other related services.
5. The Company has issued and allotted 50,000 and 60,000 equity shares of Rs. 10/- each on May 25, 2018 and July 11, 2018 respectively, pursuant to exercise of stock options in accordance with the Company’s Stock Option Scheme (ESOS 2014).
6. The Company, through Covington S.a.r.l, Luxembourg (Covington), its step down subsidiary, has increased its stake in Holiday Club Resorts Oy, Finland (HCR) by acquiring additional 0.18% stake in the share capital of HCR on November 12, 2018 and consequently, its stake in HCR has increased to 96.47%.
7. During the current quarter, Passeport Sante SL has become subsidiary of Holiday Club esorts Oy, Finland and in turn of the Company w.e.f. December 18
8. Figures for the previous periods have been re-grouped / re classified where necessary.
