1. Gross Sales / Income from operations includes a Government grant in the form of an octroi refund Rs 1795 lakhs (net of tax Rs 1185 lakhs) received by the Company during the quarter, for earlier years.

2. Other Income includes dividend received from subsidiaries for the Year ended March 31, 2009 is 13183 lakhs

3. Interest Expense (Net) is after adjusting interest income for the Year ended March 31, 2009 is Rs 8886 lakhs

4. The scheme of amalgamation of Punjab Tractor Ltd (PTL) a wholly owned subsidiary of the Company, with the Company was sanctioned by the High Court of Bombay on January 09, 2009 and by the High Court of Punjab and Haryana on January 16, 2009. The scheme became effective on February 16, 2009 and is operative from the Appointed date of August 01 2008. PTL ports for the period January 01, 2009 to March 31, 2009 are included in the profits of the Company for the quarter and year ended March 31, 2009. Profit after tax of Rs 6228 lakhs earned by PTL during the period August 01, 2008 to December 31, 2008 is included in the profits of the Company for the year ended March 31, 2009.

Profit after tax of Rs 3401 lakhs on sale of shares of Swaraj Mazda Ltd by PTL during the quarter ended March 31, 2009 has been reported by the Company under other income. The accounting of this amalgamation was done as per the scheme approved by both the High Court.

Under the scheme, the Company transferred, its total holding of 3,92,70,165 shares in PTL as on August 01, 2008 to a trust, to hold the shares and any additional or accretions thereto exclusively for the benefit of the Company.

The Company has under the scheme issued one equity share of Rs 10 each for every three equity shares of Rs 10 each held in PTL to the shareholder, of PTL.

The excess of the value of the net assets of PTL over the face value of the shares allotted, amounting to Rs 67700 lakhs was credited to the existing investment Fluctuation Reserve Account in accordance with the Scheme.

5. During the quarter the Company has provided Rs 17390 lakhs towards diminution in the value of certain long term investment, and advance, from out of its Investment Fluctuation Reserve.

6. In line with the notification dated March 31, 2009 issued by the Ministry of Company Affairs, amending Accounting Standard AS 11 Effects of Changes in Foreign Exchange Rates, the Company has chosen to exercise the option under Para 46 inserted in the standard by the notification.

Accordingly with retrospective effect from April 01, 2007 exchange difference, on all long term monetary items are:

(a) to the extent such items are used for financing fixed assets, added to / Subtracted from the cost of those fixed assets and depreciated over the balance useful ifs of the asset 

(b) in other cases accumulated in the Foreign Currency Monetary Item Translation Difference Account and amortised over the balance period of such long term monetary item but not beyond March 31, 2011.

Arising from the above the Company has

(c) charged to the opening General Reserve Rs 6055 lakhs (net of tax Rs 3997 Lakhs) which was recognized in the Profit & Loss account in previous financial year ended March 31, 2008.

(d) added to fixed asset / capital work-In-progress Rs 17297 Lakhs being the exchange differences on long term monetary items relatable to the acquisition of fixed assets. 

(e) charged to the Profit & Loss account Rs 2461 Lakhs.

(f) carried forward Rs 1811 Lakhs in the Foreign Currency Monetary item Translation Difference Account being the amount remaining to be amortised as at March 31, 2009.

As result of the above change in Accounting Policy the net profit before tax for the quarter and the year is higher by Rs 25163 laths (net of tax Rs 16610 Lakhs) out of which Rs 20532 Lakhs (net of tax Rs 13553 lakhs) pertains to the period April 2008 to December 2008.

After giving effect to the above, there was for the year, a net charge of Rs 23720 Lakhs (net of tax Rs 15658 lakhs) an account of difference in exchange.

7. During the current quarter Mahindra Defence Land Systems Pvt Ltd and Venturbay Consultants Pvt Ltd have become subsidiaries of the Company and Punjab Tractors Ltd and Mahindra Retail Pvt Ltd have ceased to be a subsidiaries of the Company.

8. Other Segments include Defence Services, Special Services Group etc.

9. Previous period’s / years figures have been regrouped wherever necessary, in order to make them comparable.

10. The above results were approved by the Board of Directors of the Company at the Board Meeting held on May 28, 2009.

Anand G Mahindra
Vice Chairman & Managing Director