Mahindra & Mahindra has reportedly entered into a Business Transfer Agreement to transfer the Company's Naval Systems Business forming part of the Company's Mahindra Defence Systems Division together with congeries of rights of the Company in such Business to Mahindra Defence Naval Systems Private Limited, a wholly owned subsidiary of the Company with effect from l9t June, 2012 for a consideration based on the Net Asset Value of the assets being transferred as on 31st May, 2012.