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M&M 2006-2007

M&M 2006-2007

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COMMITTEES OF THE BOARD Audit Committee Deepak S.

Parekh
Chairman

Nadir B. Godrej M. M. Murugappan R. K. Kulkarni Share Transfer and Shareholders/ Investors Grievance Committee Keshub Mahindra
Chairman

Anand G. Mahindra Bharat Doshi A. K. Nanda R. K. Kulkarni Remuneration/Compensation Committee Narayanan Vaghul
Chairman

Keshub Mahindra Nadir B. Godrej M. M. Murugappan Loans & Investment Committee Keshub Mahindra
Chairman

BOARD OF DIRECTORS Keshub Mahindra
Chairman

Anand G. Mahindra Bharat Doshi A. K. Nanda R. K. Kulkarni Research & Development Committee A. S. Ganguly
Chairman

Anand G. Mahindra Deepak S. Parekh Nadir B. Godrej M. M. Murugappan Narayanan Vaghul A. S. Ganguly R. K. Kulkarni Anupam Puri Thomas Mathew T. Bharat Doshi A. K. Nanda

Vice-Chairman & Managing Director

Anand G. Mahindra Nadir B. Godrej M. M. Murugappan Bharat Doshi GROUP MANAGEMENT BOARD Anand G. Mahindra
Vice-Chairman & Managing Director

Bharat Doshi A. K. Nanda

Nominee of Life Insurance Corporation of India Executive Director Executive Director

President - Trade & Financial Services Sector President - Infrastructure Development Sector

Anjanikumar Choudhari Rajeev Dubey

President - Farm Equipment Sector President - Human Resources & Corporate Services

Pawan Goenka

Narayan Shankar

President - Automotive Sector

Hemant Luthra

Company Secretary

President - Systems & Technologies Sector

Raghunath Murti Uday Y. Phadke

Executive Vice Chairman - Mahindra Intertrade Limited President - Finance & Legal Affairs

Ulhas N. Yargop

President - Telecom & Software Sector

...... F................. Mumbai 400 001..................................................... Bombay Samachar Marg................ Apollo Bunder... First Floor... Pattulous Road.................................... 17/18................ New Delhi 110 066........ 2-A Bhikaji Cama Place................. 121 Bankers Bank of America N......... 19 Corporate Governance ........................ Kolkata 700 016.............. Meher Chambers............... Allahabad Bank Buildings............MAHINDRA & MAHINDRA LIMITED Contents Directors’ Report ................. 63 Statement pursuant to Section 212 ........... Mumbai 400 038.......... Dr.... First Floor............ 2 ........... Ferguson & Co.. 119 Consolidated Accounts ................................ Mahindra Towers................ Branches 7...... Mahindra Towers.......... Bangalore 560 001...... Raheja Chambers....... Ballard Estate.......A........... Advocates Khaitan & Co.............. 3 Management Discussion and Analysis . Bank of Baroda Bank of India Canara Bank Central Bank of India HDFC Bank Limited Standard Chartered Bank State Bank of India Union Bank of India Auditors A........... Registered Office Gateway Building.............. 37 Accounts .. Mumbai 400 001................................ Museum Road.. R K Marg.................... 12.................. Chennai 600 002.......................... Ishaque Road (Old KYD Street)....

in crores) 2007 Gross Income Less: Excise Duty on Sales Net Income Profit before Depreciation. Provision for Contingencies. Interest. 2007. Provision for Contingencies. Financial Highlights (Rs.DIRECTORS’ REPORT TO THE SHAREHOLDERS Your Directors present their Report together with the audited accounts of your Company for the year ended 31st March. Exceptional items and Taxation Less: Depreciation /Amortisation Profit before Interest. Exceptional items and Taxation Less: Provision for Contingencies Profit before Exceptional items and Taxation Add: Exceptional items Profit before Taxation Less: Provision for tax – Current tax (including Fringe Benefit Tax) Less: Provision for tax – Deferred tax (Net) Profit for the year before prior period adjustments Prior Period Adjustment (Net of Tax) Profit for the year Balance of profit for earlier years Add: Transfer from Debenture Redemption Reserve Profit available for appropriation Less: General Reserve Interim Dividend paid Income-tax on Interim Dividend paid Proposed Dividends Income-tax on Proposed Dividends Balance carried forward 3 2006 9451 1125 8326 11558 1313 10245 1458 209 1249 (67) 1316 1316 122 1438 366 (15) 1087 19 1068 1476 16 2560 110 184 26 98 17 2125 1072 200 872 (18) 890 1 889 210 1099 285 (43) 857 857 996 1 1854 100 244 34 1476 . Exceptional items and Taxation Less: Interest (Net) Profit before Provision for Contingencies.

These initiatives resulted in your Company exporting 8.307 Champion Alfas in the previous year.44. of France. cars and light commercial vehicles (LCVs) including 8. The all new Scorpio launched at the end of the previous year received the Business World National Institute of Design Award in 4 consecutive year of record growth in terms of vehicle production and sales.14. one among the top two Most Trusted Indian car companies.Performance Review Your Company’s subsidiary MIL. a record number of 1.54 crores) in the current year as compared to Rs. a joint venture of the Company with Renault s.00 crores (Exports Rs. multi utility vehicles (MUVs). Middle East.777 [including 1.84 crores) in the previous year.317 three-wheelers in the previous year.35.658 vehicles and three-wheelers was higher by 14% than the previous year’s volume of 1.833 sold by MIL] registering an increase of 28% against the industry (upto 4 MT payload LCVs segment) growth of 4%.12.652 as compared to the last year’s sales of st Automotive Sector: The financial year ended 31 March.25.892 threewheelers as compared to 1. your Company came first.s.61.534 vehicles [including 175 LCVs sourced from MIL].718 three-wheelers as compared to 1. sold 8. 2007 is the fifth 6.6% and 50% in vehicles sales and threewheelers sales respectively.601 vehicles [including 2.705 LCVs produced for MIL] and 22. Over all. The Company was also rated in a TNS study.856 MUVs were sold by the Company in the domestic market during the year under review as against the sale of 1. the Company’s sales volumes declined by 22% against a 28% decline for the industry as a whole.33 crores (Exports Rs. which the Company had entered in the previous year.694 MUVs in the previous year. The Company launched a pick-up version of the Scorpio in South Africa during the year. another subsidiary of the Company] and 34.27. The combined LCVs sales of the Company and MIL stood at 8.811 LCVs produced for Mahindra International Limited (MIL).057 vehicles and three-wheelers. a mid-sized sedan.021 vehicles [including 254 LCVs sourced from MIL] during the year under review which is an increase of 45% over the previous year’s exports of 5. your Company produced 1.550 LCVs during the year.090 vehicles [i. the Company introduced its vehicles in many new overseas markets including Europe.961 vehicles and 33. The Company’s domestic MUVs sales volumes grew by 11% as against the industry MUVs sales growth of 14%.e. In the smaller three-wheeler segment. in the last quarter of the year marked the entry of the Company into the passenger car segment through its subsidiary MRPL. becoming the first Indian automotive company to launch a product internationally.419 three-wheelers in the previous year registering a growth of 8. In the TNS study on Dealer Satisfaction released in 2007.28. During the year under review.42.23.a. . Over the last three years. South America and South-East Asia by adapting unique business models for each country.554 Champion Alfas against the sale of 4.236. a subsidiary of the Company and 614 cars produced for Mahindra Renault Private Limited (MRPL). Your Company recorded sales of 1. your Company during the year under review sold 19.307.172 vehicles and 22. The spare parts sales volume was Rs. In the large three-wheeler segment. The commencement of the manufacture of the Logan. The domestic total sales volume of 1. The Company’s performance also reflected a significantly improved level of customer satisfaction as demonstrated by its 2006-07 scores in independent syndicated customer satisfaction and sales satisfaction studies.

Satellite Plants were set up in Chad. market leadership for the 24th consecutive year in the domestic tractor market. a bullet proof vehicle to the Indian Army during the year under review. The Company sold 24. your Company also unveiled the bio-diesel Scorpio and Bolero DI vehicles for 100% real world usage trials. a Multi-Utility Tractor. the growth has tapered in the last quarter on account of the retail squeeze. . During the year under review. Some of the major export markets such as Sri Lanka and Bangladesh recorded highest ever sales growth with a market share of 22% and 27% respectively. the Company launched the ‘Mahindra Shaan’. The turnover of your Company’s Genset and Engine businesses also touched a new high of Rs. Shaan is a 25 HP innovative product designed to serve small and medium farmers in multiple ways. high mobility vehicles and underwater naval systems. However.531 tractors as against 85.847 tractors as against 87. These awards augur well for the future. to meet future domestic and export requirements.271 crores. It is the fourth consecutive year the industry saw growth which was due to a good monsoon. and Nissan Motor Company Ltd. to manufacture new generation personal segment Utility Vehicles and Sports Utility Vehicles for the Company as well as cars and other vehicles for Renault and Nissan. The plant near Chennai will be set up in partnership with Renault s.141 Engines and Gensets during the year under review as against 15.02. Both the plants should become operational over the next three years. the inbuilt trolley feature enables the customer to use Shaan for transportation of farm produce and other commercial loads.075 produced in the previous year recording a notable growth of 19%. Your Company continued with its export focus with volumes growing by 8%. The Company is also considering venturing into supply of light armoured vehicles. The Company has started manufacturing Gensets at Delhi and Pune and has added several corporate clients in the current year for supplying Gensets and Engines.s. Given the high growth expectations from the Indian automotive industry and given the Company’s participation in ever increasing areas of the industry.2%. Multi-Utility Vehicles and Sports Utility Vehicles besides design and development for prototyping special Military Vehicles and conversion of available vehicle platforms to special vehicles.029 tractors sold in the previous year registering a significant growth of 21% and produced 1.03. the tractor industry grew by 21. better availability of credit and focus on retail tractor financing by the Banking Sector. your Company sold 1. one near Pune and another near Chennai. being used as a regular tractor. Besides. The Company supplied 200 Rakshaks. The plant near Pune will specialize in commercial vehicles for the Company as well as for MIL. In the last quarter. The Company maintained its 5 Mahindra Defence Systems Division: Your Company provides world-class armouring solutions for Light Combat Vehicles. not only on the field but also on the road. Mali in Africa and there were strategic tie-ups with Al-Frat in Syria and ITMCO in Iran. your Company is planning to set up two greenfield plants. The Scorpio with indigenously developed CRDe technology is the first Asian vehicle in its class to run on 100% bio-diesel.a. During the year.776 sold during the previous year.the ‘Best Automobile Design – Four Wheeler’ category and was also awarded the coveted Golden Peacock Award for Innovative Products/Services in the Automobile segment. registering a phenomenal growth of 53%. another “first of its kind” in India. Farm Equipment Sector: During the year under review.

857. As already reported last year.4 per Equity Share.114.39 crores as against Rs. the conversion price being Rs.1. Profit after tax was Rs. Finance Your Company in May. modernisation and expansion of existing manufacturing facilities and expansion by internal growth as well as overseas acquisitions and in addition. Provision for Contingencies. would be Rs. . which forms part of this Annual Report. Management Discussion and Analysis Report A detailed analysis of the Company’s performance is discussed in the Management Discussion and Analysis Report. 6 Profits: The Profit for the year before Depreciation. During the period upto 28th May. the record date fixed for this purpose. payable to those Shareholders whose names appear in the Register of Members as on the Book Closure Date.84 crores. Retail.1.1.209.50 per Equity Share) aggregating Rs. which have resulted in significant savings by efficiency improvements through continued focus on optimisation of plant capacity utilisation.01%.83 crores as against Rs.04. for such purposes as may be permitted from time to time under applicable laws. inclusive of tax on distributed profits. Interest.278. This Division of your Company achieved revenues of Rs.73 crores (as against Rs. The issue carried a zero coupon rate and the tenure of the issue was five years with a yield to maturity of 5%.19 crores comprising a dividend of 75% and a special dividend of 25% paid for the previous year).20 million getting converted into Equity Shares/Global Depositary Receipts.1.2. 2007. Dividend An interim dividend of 75% (Rs. several Bondholders exercised their conversion option resulting into Bonds of value US$ 98.Mahindra Logistics Division: The Company offers differential and specialised end to end logistics solutions to select industries in the Automotive. 2004. market performance and controlling operating and financing costs and right sizing in almost all areas.068. Exceptional items and Taxation was Rs. The issue proceeds are earmarked for product development.071. 2007. The total equity dividend outgo for the financial year 2006-07. had made a US$ 100 million Foreign Currency Convertible Bond (FCCB) offering to international investors. the Company made a FCCB issue of US$ 200 million to the international investors.382 crores with a client base of more than 165 customers including various corporates and multinationals.50 per Equity Share) and a Special Dividend of 15% (Rs. Your Company continues with its rigorous cost restructuring exercises. 2006. in April.457.50 per Ordinary (Equity) Share) has been paid to the Shareholders whose names appeared in the Register of Members as on 26th March. The Special Dividend has been recommended in the light of the very successful listing of the Tech Mahindra Limited Equity Shares on the Stock Exchanges. your Directors recommend a final dividend of 25% (Rs.10 crores in the previous year recording an increase of 24. Keeping in mind the overall performance during the year and the positive outlook of the Company.324. The amount so distributed. BPO and ITES Segments by channelising internal and global capabilities and resources.89 crores.7. registering an impressive growth of 52% over the previous year. would absorb a sum of Rs.65%.88 crores in the previous year registering an increase of 36. inclusive of tax on distributed profits. including tax on distributed profits amounted to Rs. The final dividend.922.

in the year under review. plant and equipment.During the year. 2007. The Company strives to enrich the environment wherever possible by various . During the year under review.92. 1999 are set out in Annexure I to this Report. which enjoins upon the Company to sustain business growth with deep commitment to the environment. the Trustees of the Mahindra & Mahindra Employees’ Stock Option Trust have granted 9. thereby increasing its financial risk profile. The rating indicates strong capacity for timely payment of financial commitments and low expectation of credit risk. The Management Discussion and Analysis Report gives an overview of the developments in Human Resources/Industrial Relations during the year. Safety. The Company’s total Debt to Equity Ratio was 0.921 Stock Options to Eligible Employees during the year under review. Similarly. 7 Industrial Relations Industrial Relations generally remained cordial and harmonious throughout the year. This makes all the Tractor Division Plants OHSAS certified. ensuring compliance with all statutory rules and regulations on regular basis. During the year. CRISIL’s rating indicates High Safety on timely payment of interest and principal. In addition. the Tractor Division obtained certification for OHSAS 18001 for its Kandivli Plant and obtained OHSAS 18001 and ISO 14001 certification for its Rudrapur Plant. The Consortium of Bankers continue to rate the Company as a prime customer and extend facilities/services at prime rates. The Kandivli. The revision in outlook reflects CRISIL’s belief that the Company could leverage its Balance Sheet to finance its capital expenditure and inorganic growth plans.46 as at 31st March. imparting training to its employees as per Training Calendar. Nashik and Igatpuri Plants of the Automotive Sector have been certified with the amended standard for Environmental Management System ISO 14001:2004 and have also been certified for Occupational Health and Safety Management System (OHSAS 18001:1999). Similarly. employees. Occupational Health and Environment stems from its vision. The Company has a well-established Safety. carrying out statutory safety audits of its facilities as per legal requirement. the Automotive Sector’s Zaheerabad Plant also received this award. Details required to be provided under the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines. Occupational & Environmental Policy which inter alia ensures safety of public. Fitch Ratings India Private Limited (FITCH) reaffirmed the “AA+(Ind) with a Positive Outlook” rating assigned by it to the Company’s outstanding Debentures in the previous financial year. Health and Environmental Performance Your Company’s commitment and responsibility towards Safety. your Company’s oldest Automotive Plant at Kandivli achieved a remarkable feat by receiving the National Energy Conservation Award for the 4th year in a row. Stock Options On the recommendation of the Remuneration/Compensation Committee of your Company. Funds were raised for a three year period at highly competitive rates. the Company raised an External Commercial Borrowing of US$ 20 million for meeting part of funds required for modernization and expansion plans. The Automotive Sector’s Nashik Plant won the National Award for Excellence in water conservation. Your Company follows a prudent financial policy and aims to maintain optimum financial gearing at all times. CRISIL Limited (CRISIL) has reaffirmed the “AA+” rating but has revised its rating outlook to “Negative” from “Stable”. conducting regular medical check-up of its employees and promoting eco-friendly activities.

Supporting Nanhi Kalis Nanhi Kali. Mahindra Pride School in Chinchwad. the Government of Rajasthan partnered with KCMET to support the education of 10. Naandi Foundation. safety training. school bags. Safety Kaizens. The Group has made a commitment to support 6. The courses being offered are vocational in nature and are in line with market requirements in the region. with special emphasis on the girl child. etc. 8 Mahindra Pride Schools During its 60th year. as a result of which approximately 500 students belonging to the lower socioeconomic strata of society were provided with scholarships to pursue job oriented diploma courses at recognized polytechnic colleges. Support to Government Schools Continuing its commitment to make quality education accessible to all children. the Company had announced plans for providing youth from socially weaker sections of society with livelihood training to enable them to gain employment based on the skills learned. Solid Waste Management and Air Pollution Management. 3. Maths and language. Water and Waste Water Management. your Company has always recognised that the business has to be sensitive enough to perceive the needs of the Society in which the corporates operate. external audits of the Company’s safety practices and systems. the Mahindra Group (“the Group”) has redefined its Corporate Social Responsibility (CSR) in its 60 year and committed to pledge upto 1% of its Profit th government schools in Mumbai. The scholarships are given for a three year period. With this in view. etc. Occupational Health Examination. the Group hopes to improve learning outcomes of children attending these schools with an aim that they achieve grade specific learning competencies in Science. Corporate Social Responsibility As a Corporate Citizen. clothes. the Mahindra Group has chosen education as its prime focus area.000 disadvantaged girl children in the tribal area of Udaipur District through the Nanhi Kali project. the Group is supporting seven . The majority of the children attending these schools belong to socially and economically disadvantaged sections of society. Encouraged by the success of the programme. The Group has set up the first training institute. after Tax (PAT) to benefit the socially and economically disadvantaged sections of society. Recognizing the potential that education holds to transform lives.000 girls in rural and tribal areas in various parts of India by providing academic support as well as material support in the form of uniforms. near Pune. The Company therefore believes that the weaker sections of our Society need help and support for them to be self-reliant. shoes. a reputed NGO.252 students across the country have benefited from this scholarship. Over the years. With the help of the Group’s implementation partner. C. Some of the major social development programmes the Group has invested in are described below: Mahindra All India Talent Scholarships The Group has also doubled the number of Mahindra All India Talent Scholarships. which supports the education of the disadvantaged girl child has been the flagship programme of the K. Mahindra Education Trust (KCMET).initiatives such as Greenbelt Development. Surveys conducted amongst Mahindra All India Talent Scholarship awardees have revealed that the beneficiaries of this scholarship programme have secured jobs with reasonable starting monthly salaries. Your Company also strives for elimination of accidents in all its units by organizing Safety Patrol Rounds.

The major . Mid-Day Meal Kitchen A Memorandum of Understanding has been signed between the Government of Rajasthan. S. Directors Mr. The kitchen is expected to be set up in the coming year. Mr. Directors’ Responsibility Statement Pursuant to section 217(2AA) of the Companies Act. A. based on the representations received from the Operating Management. R. in the selection of the accounting policies. Anupam Puri. Kulkarni retire by rotation and. (ii) they have. your Directors. the applicable accounting standards have been followed.000 children studying in government schools. In the past two years. (iv) the annual accounts have been prepared on a going concern basis. the Group has agreed to donate 60 Cochlear Implants over a 3-year period to children below the age of 5 years. Each Cochlear Implant costs approximately Rs. These subsidiaries have created a niche for themselves by venturing into newer businesses and with their excellent performance are blazing ahead at a fast pace thereby continuing to add shareholder value. various business units of your Company carry out location specific community initiatives largely focused on health. consulted the Statutory Auditors and these have been applied consistently and reasonable and prudent judgments and estimates have been made so as to give a true and fair view of the state of affairs of the Company as at 31st March. belonging to the socially and economically weaker sections of society.Cochlear Implants To give a new lease of life to the hearing impaired. An unique initiative of your Company is it’s ESOPs Programme.5 lakhs. offer themselves for re-appointment. 1956. As a result of this. Dr. Keshub Mahindra. education and environment including water management and sanitation projects. (iii) proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act. K. 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. confirm that: (i) in the preparation of the annual accounts. Employee Social Options (ESOPs) Employee participation is a vital ingredient of the Mahindra way of doing CSR. 25 children have benefited from the Cochlear Implants donated through the Mahindra Foundation. being eligible. Ganguly and Mr. 2007 and of the profit of the Company for the year ended on that date. through which the entire workforce of the Mahindra Group is provided with an array of options for volunteering their time and resources in the CSR activities. Location Specific Community Initiatives Apart from the above activities. 9 Subsidiary Companies The subsidiary companies of your Company are moving on from strength to strength and contributing to the overall growth of the Company. Providing a nutritious mid-day meal helps in reduction of dropout rates besides adding to the general welfare of these children. and after due enquiry. the Company’s employees can be seen on any given day contributing directly to society in some part or other of the country. your Company and Naandi Foundation to set up a centralized mid-day meal kitchen in a backward area in Jaipur District of Rajasthan which will feed over 25.

Schöneweiss & Co.15 crores as against Rs.365 per Equity Share. etc.465.808 Equity Shares in Tech Mahindra Limited (TML) through an Offer for Sale as a part of the Initial Public Offering (IPO) of TML resulting in a gross cash realisation of Rs. The consolidated Group Profit for the year after exceptional items. GmbH.86. Mahindra & Mahindra Financial Services Limited.72 crores earned last year . CanvasM Falkenroth (Americas) Inc.1. MHRIL and Ashtamudi in turn have become subsidiaries of your Company.520 Equity Shares by the Company and its joint venture partner in TML. Mahindra Infrastructure Developers Limited. The Statement pursuant to section 212 of the Companies Act. Mahindra Forgings Overseas Limited.497. . 1956 containing details of the Company’s subsidiaries is attached. CanvasM Technologies Limited. Mahindra Integrated Township Limited and Mahindra World City (Maharashtra) Limited which had ceased to be subsidiaries of your Company during the year under review. Mahindra Forgings Mauritius Limited. registered a significantly improved performance. a subsidiary of Tech Mahindra Limited. The Consolidated Financial Statements of the Company and its subsidiaries. Tech Mahindra (R&D Services) Pte. at a price of Rs.1. the Company divested 38. KG and DGP Hinoday Industries Limited became subsidiaries of your Company. Mahindra Gesco Developers Limited and its subsidiaries. Your Directors are pleased to report that during the year under review.480 Equity Shares and an Offer for Sale of 95.91%.subsidiaries such as Tech Mahindra Limited.269. Mahindra Stokes Holding Company Limited. Gesenkschmiede Schneider GmbH. prepared in accordance with Accounting Standard AS21 prescribed by The Institute of Chartered Accountants of India. Mahindra World City Developers Limited. PT Tech Mahindra Indonesia. form part of the Annual Report and Accounts. Mahindra Forgings Global Limited. iPolicy Networks Limited. During the year under review.59 times. prior period adjustments and tax and after deducting minority interests is Rs.. Umformtechnik Falkenroth Grundstucksgesellschaft GmbH. Mahindra Forgings International Limited.23. Mahindra Forgings Limited ceased to be a subsidiary of the Company. again became subsidiaries of the Company. viz. has ceased to be a subsidiary of the Company.a growth of 17. Post IPO and post allotment of shares by TML under its ESOP Scheme(s).139. MHR Hotel Management GmbH. The IPO received an overwhelming response and was oversubscribed by 71. JECO GmbH. Mahindra Rural Housing Finance Limited (MRHFL) became a subsidiary of Mahindra & Mahindra Financial Services Limited and Mahindra Hotels and Residences India Limited (MHRIL) and Ashtamudi Resorts Private Limited (Ashtamudi) became wholly owned subsidiaries of Mahindra Holidays & Resorts (India) Limited. 2007 stands at 52. This divestment was made in line with the Company’s policy of promoting investments in appropriate businesses and monetizing the same at an opportune moment for creating wealth for the Company’s shareholders. TML got itself listed on 28th August. The IPO of TML was for a sum of Rs. Hunninghaus GmbH & Co. Mahindra Holidays & Resorts (India) Limited. Mahindra Gesco Developers Limited. Subsequent to the year-end. Mahindra World City (Jaipur) Limited. your Company’s shareholding alongwith the shareholding of its subsidiary. British Telecommunications plc.56%. 2006 on National Stock Exchange of India Limited and Bombay Stock Exchange Limited.22 crores comprising 10 a fresh issue of 31. Fried.57 crores. viz. Limited. Hunninghaus GmbH. Mahindra Automotive Limited has also become a wholly owned subsidiary of the Company. Holding AG. Mahindra-BT Investment Company (Mauritius) Limited in TML as on 31 st March. MRHFL.59. Fried. JECO-Jellinghaus GmbH.

F. copy of the Balance Sheet. However as directed by the Central Government. The particulars of loans/advances and investment in its own shares by listed companies. The Company Secretary will make these documents available upon receipt of request from any Member of the Company interested in obtaining the same.85 lakhs have been claimed. 2007. a wholly owned subsidiary of the Company. have not offered themselves for re-appointment at the ensuing Annual General Meeting. associates. Public Deposits and Loans/Advances Out of the total 2. Deloitte Haskins & Sells. your Company along with Mahindra Holdings & Finance Limited (MHFL). 1956. which had matured.21.010 tractors were produced and 16. Reports of the Board of Directors and Auditors of the subsidiaries have not been attached to the Balance Sheet of the Company. the existing Statutory Auditors are now part of Messrs. 21 of these deposits of the value of Rs. DHS have also expressed their willingness to act as Auditors of the Company. The Indian economy continues to maintain a healthy momentum with high accelerating economic growth averaging an impressive 8% in the previous three years.31 lakhs. Accordingly.. etc. 2007.680 vehicles were produced as against 20. if appointed. The Company has received a Special Notice from a Member of the Company.378 deposits of Rs. 28. the Company’s outlook for the rest of the year continues to remain positive.099 tractors despatched during the same period as against 16. Deloitte Haskins & Sells and it has been decided that Messrs. A. in terms of the provisions of the Companies Act. 1956. Profit and Loss Account. Chartered Accountants (DHS) would be appointed as the Statutory Auditors of the Company. their subsidiaries. 1956.3. Although volatility of exchange rates and input costs are a cause for concern.225 vehicles during the corresponding period in the last year. Current Year During the period 1st April. Auditors Messrs.247 vehicles were despatched as against 19. during working hours upto the date of the Annual General Meeting. These documents will also be available for inspection at the Head Office of the Company and the office of the respective subsidiary companies. had not been claimed as at the end of the financial year.381 tractors produced and 15. the financial data of the subsidiaries have been separately furnished forming part of the Annual Report. Messrs. Ferguson & Co. Acquisitions and other matters With a view to further consolidating its presence in the tractor industry. and have further confirmed that the said appointment would be in conformity with the provisions of section 224(1B) of the Companies Act. During the same period 16. signifying the intention to propose the appointment of DHS as the Statutory Auditors of the Company from the conclusion of the ensuing Annual General Meeting till the conclusion of the next Annual General Meeting. entered into a Share Purchase Agreement with Actis Group and the Burman Family to 11 . The current year should augur well for the Company in the light of the prevailing economic scenario.. 139 deposits st amounting to Rs.In terms of approval granted by the Central Government under section 212(8) of the Companies Act. Ferguson & Co. The acceleration was powered largely by a robust double digit expansion in both manufacturing and service sector activities.398. A.703 vehicles and 27. Since then.630 tractors despatched during the corresponding period in the previous year. F. 2007 to 27th May.94 lakhs from the public and Shareholders as at 31 March. required to be disclosed in the annual accounts of the Company pursuant to Clause 32 of the Listing Agreement are furnished separately.

24. hubs. Crank shafts. as per the provisions of section 219(1)(b)(iv) of the Companies Act. engine and axle parts. Its major products include gear boxes. 2007 or not less than Rs. During the year. In addition to this. It also has facilities to manufacture Ceramic Magnets for Automotive Electricals and Industrial DC Motors and Ferrite Cores for electronics. sourcing benefits and some amount of vendor rationalization. located at Pune in the State of Maharashtra. power train and engine parts. 1997. Technology Absorption and Foreign Exchange Earnings and Outgo Particulars required to be disclosed under the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules.47% voting power) in Schöneweiss & Co. For and on behalf of the Board KESHUB MAHINDRA Chairman Mumbai. Its Swaraj brand has a good reputation in the market for reliability and efficient working and PTL has significant unutilized capacity which the Company would be utilizing to ramp up not only sales of Swaraj tractors but also manufacture of Mahindra tractors.90% stake in JECO Holding AG (Jeco) and a 100% stake (90. PTL has certain products in the above 50 HP range which will add to the portfolio strengths of the Company. Jeco with 120 years of experience is primarily focused on the trucks. gears and piston heads.10% equity stake in DGP Hinoday Industries Limited (DHIL).000 per month during any part of the said year. 1956. is one of the top five axle beam manufacturers in the world and specializes in 12 suspension.00. Exhaust manifold.2. DHIL manufactures SG Iron castings for the Automotive Industry like Turbo Charger Housing. Its top customers include Daimler Chrysler Group. PTL is a strategic fit to your Company. etc. To add to these. Schöneweiss.00. Renault. 28th May. a leading company in the forgings sector in Germany with 140 years of experience in the forgings industr y. 2007 . Its core competency lies in products with complex geometric shapes. 1988 are set out in Annexure II to this Report. AGCO and Kolbenschmidt. Gear carrier Housings. bus and trailer market. Volvo. the Systems & Technologies Sector also made its foray into the Castings business through the acquisition of a 66. the Directors’ Report and Accounts are being sent to all the Shareholders of the Company excluding the Statement of particulars of employees. During the year. Energy Conservation. telecommunications and specialized applications. The Company will be in a unique position to leverage upon these opportunities coupled with other advantages such as economies of scale. GmbH (Schöneweiss).3% of the issued and fully paid-up equity capital of Punjab Tractors Limited (PTL). Particulars of Employees The Company had 173 employees who were in receipt of remuneration of not less than Rs.acquire 43. Any Shareholder interested in obtaining a copy of the Statement may write to the Company Secretary of the Company. your Company along with MHFL has made an open offer to acquire an additional stake of upto 20% in PTL and also for acquiring upto 20% stake in Swaraj Engines Limted and Swaraj Automotives Limited.000 during the year ended 31st March. However. Differential Cases. in accordance with Regulations 10 and 12 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations. the Systems & Technologies Sector of the Company strengthened its presence in the forgings business by acquiring a 67. ZF Group. as amended.

Average price preceding the specified date .63.240 Mr.920 Options granted during the year ended 31st March.000 Mr.14th September.30th May. the grant of Options 43.080 * The Options granted stand augmented by an equal number of Options and the Exercise Price stands reduced to half on account of the 1:1 Bonus Issue made in September.77.ANNEXURE I TO THE DIRECTORS’ REPORT FOR THE YEAR ENDED 31ST MARCH. Hemant Luthra Mr.160 Mr. 28.176 As per Statement attached Names Options granted Names during the year st ended 31 March.13% on the average price preceding the specified date .169 1st Tranche 2nd Tranche 3rd Tranche 4th Tranche 5th Tranche 6th Tranche 7th Tranche Average price preceding the specified date .31st May.360. Pranab Datta 15. 2001 Discount of 4. 2006 (c) Options vested (d) Options exercised (e) The total number of shares arising as a result of exercise of option (f) Options lapsed (g) Variation of terms of options (h) Money realised by exercise of options (i) Total number of options in force (j) Employee-wise details of options granted to: (i) Senior managerial personnel (ii) Any other employee who receives a grant in any one year of option amounting to 5% or more of option granted during that year 2.441 25. These were transferred from the Trust to the Eligible Employees.29th May. (iii) Identified employees who Nil were granted option.Average of the daily high and low of the prices for the Company’s Equity Shares quoted on Bombay Stock Exchange Limited during the 15 days preceding the specified date The specified date .12. 2005* Mr.13.Raghunath Murti Mr. Ramesh Iyer 15.10 each. 25. 2007 Information to be disclosed under the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines. 2005.441 Equity Shares of Rs. 2005 Discount of 5. equal to or exceeding 1% of the issued capital (excluding outstanding warrants and conversions) of the company at the time of grant 13 . 2004 Discount of 4.30th May.30. during any one year.552 Nil Rs. Prince M.Date on which the Remuneration/Compensation Committee decided to recommend to the Mahindra & Mahindra Employees’ Stock Option Trust (Trust).000 15.13th September. 2004* Mr.31.89% on the average price preceding the specified date .597 Options stand vested on 31st March. Augustin 5. Rajeev Dubey 15.27th September. Allen Sequeira 10. 1999: (a) Options granted (b) The pricing formula 55. This amount was received by the Trust.240 25. 2005 Average price preceding the specified date .79.02% on the average price preceding the specified date . 2003 Discount of 5.34. 2006 Average price . 2007.13.85% on the average price preceding the specified date .

000 5. Godrej 20. 2006 29th September.44 crores.44 crores and the basic and diluted earnings per share would have been lower by Re. the difference between the employee compensation cost so computed and the employee compensation cost that shall have been recognised if it had used the fair value of the options.33 respectively.62% 2. K. Bharat Doshi 1.66% Rs. the employee compensation cost would have been higher by Rs.(k) Diluted Earnings Per Share (EPS) pursuant to issue of shares on exercise of option calculated in accordance with Accounting Standard (AS) 20 ‘Earnings per Share’ (l) Where the company has calculated the employee compensation cost using the intrinsic value of the stock options. 2006 and 29th September. Nadir B.000 10. M.36 & Re.590.000 Nil Mr. 2005** September. in respect of stock options granted on or after 30th June.00 616.000 Nil Dr.66% Rs.56% 3. Deepak S. Profit after tax lower by Rs. The impact of this difference on profits and on EPS of the company shall also be disclosed.94 The Company has calculated the employee compensation cost using the intrinsic value of stock options.) 620.000 Nil Mr.41% 2.000 5. (m) Weighted-average exercise prices and weighted-average fair values of options shall be disclosed separately for options whose exercise price either equals or exceeds or is less than the market price of the stock. Ganguly 20. 7.10 (i) risk-free interest rate.40.345 Mr. Had the fair value method been used.0. (n) A description of the method and significant assumptions used during the year to estimate the fair values of options. 2006 Mr. 2001* June.8. K. A.680.00 years 35.000 Nil Mr.000 5. 2007 Name of Senior Managerial Persons to whom Options granted in Options granted in Options granted in Stock Options have been granted December. 2003.000 11.345 * All the above Options have been exercised.000 5. S. (iv) expected dividends.000 Nil Mr. A. ** The Options granted stand augmented by an equal number of Options and the Exercise Price stands reduced to half on account of the 1:1 Bonus Issue made in September. R. 2006 have been calculated using Black-Scholes Options pricing Formula and the significant assumptions made in this regard are as follows: 31st July.8. Narayanan Vaghul 20. Parekh 20. 2006 29 September. and (v) the price of the underlying share in market at the time of option grant. Options Grant Date 31st July.000 10.000 Nil Mr. Kulkarni 20.000 Nil Mr.57 The fair-value of the stock options granted on 31st July. Nanda 1. (iii) expected volatility.55% 2.000 5.) 138. 14 . 2005.00.00.000 11. Anupam Puri 20. M. including the following weighted-average information: Rs. Murugappan 20.10 STATEMENT ATTACHED TO ANNEXURE I TO THE DIRECTORS’ REPORT FOR THE YEAR ENDED 31ST MARCH. 2006 7.0. (ii) expected life.51 212.000 5. shall be disclosed.000 5.50 years 35. 2006 th Exercise price (Rs.00 Fair value (Rs.

e) Air line separation of Paint Kitchen by installing new air line from Compressor Room (Utility) to Paint Kitchen (Plant) and stopped unnecessary air circulation in plant during the night shift and on Sundays/holidays.ANNEXURE II TO THE DIRECTORS’ REPORT FOR THE YEAR ENDED 31ST MARCH. o) Installation of variable frequency drives for Paint Shop-primer booth and base coat booth at Zaheerabad. m) Automatic power factor controllers installed at all locations for improving the power factor to unity. l) Use of Flat belt instead of V belt at shot blasting machine in Foundry PU. Similarly. c) Energy alert system for air compressors at Zaheerabad. 15 f) Energy saving low voltage transformer installed for lighting in Administration Building and IDAM. . h) Solar water heating for eliminating use of electrical heaters in washing machine. 2007 A) Conservation of Energy During the year.98 to 1. Engineering Initiatives a) Installation of Sullair screw air compressors with latest spiral valve technology at Kandivli Plant. n) Electricity generation through Engine testing alternator at Igatpuri. d) Natural draft Turbine air ventilators instead of electrical driven exhaust fans at Kandivli. 2007 PARTICULARS AS PER THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES. centac type air compressors are installed at Nashik Plant and energy efficient Atlas Copco screw compressor installed at Igatpuri. energy efficient blowers. j) Solar water heating system for guest house and residential quarters at Zaheerabad. Igatpuri and Haridwar. i) Solar street lights. Igatpuri. air handling units and improved insulation. b) Unique development of super heat recovery from air conditioning units to eliminate use of conventional electrical heaters at washing machines in Engine & Gear carrier assembly.99 by adding Capacitor bank. the Company has taken the following initiatives for conservation of energy: g) Improvement of Power Factor from 0. Changeover relays for street lights at Kandivli. k) Revamping of Red primer oven with new fuel efficient burners. 0. Nashik and Zaheerabad. 1988 AND FORMING PART OF THE DIRECTORS’ REPORT FOR THE YEAR ENDED 31ST MARCH.

3. . vii) Energy efficient scroll compressor for Air conditioning. The Zaheerabad Plant of the Automotive Sector also received this Award for the year 2006. 2006 to promote energy saving and conservation of resources. The Automotive Sector.2. c) Optimization of air-fuel ratio for Furnaces and ovens at all locations. iv) Use of compact fluorescent Lamps (CFL). suppliers by various interactions and seminars. which was approximately 1. d) Reward and Recognition of power saving projects. v) Use of air blow guns and pressure regulators. eliminating complete Light Diesel Oil (LDO) utilization.P to lower H.170 crores on Research and Development work during the year. fans and lights. e) More than 1.46% of the total turnover. Government d) Usage of recycler for taking out the Paint sludge thereby avoiding in-house burning of HSD resulting into major savings. c) Made a cross functional Team for reducing the consumption of electricity during non-production time.000 ingenious ideas were implemented at all locations such as: i) Continuous to intermittent operation of motors. Through Process Improvement a) Recovering waste heat from Exhaust Flue gas at continuous Gas carburising Furnace in Heat Treatment to eliminate use of electrical heaters at post wash and dryer section. b) Conversion of thermopacs with efficient burners using Piped Natural Gas (PNG). 2006 to 21st December. Awareness for Energy Conservation a) Celebrated Energy Conservation Week from 14th December. iii) Higher H. Conducted slogan. vi) Rain water Harvesting. 16 of India. including expenditure on capital assets purchased for Research and Development. B) Technology Absorption The Company spent Rs.P motors. ii) Timers for blowers. e) Started red tag system to reduce the air leakages. poster and suggestion Competition on Energy Efficiency which received an overwhelming response from all the product units at Kandivli Plant. Kandivli Plant has received ‘National Energy Conservation Award’ for the fourth time in succession from Ministry of Power. b) Energy Conservation awareness has been created amongst vendors.

No. 5. 26. Chennai Sandwich material for noise absorption Development of Nano-technology for IP etc. 24. Climate control (Heated and Cooled) seats Bio-Diesel and Gas based engine Transmission Design of Compact Tractor Development of Integrated Cabin for Tractor Hydrophilic Nano coated Feature Automatic Transmission for SUV Transmission for new SUV New Generation system for Brakes for SUV New Electricals & Electronics Features CNG engines for LCV Common Rail Diesel on Light commercial vehicle Next generation Common rail adaptation Hydrogen ICE Fuel Cell Vehicle Development 2nd Generation Biofuels (Biomass to Liquid / Gas to Liquid) Year of Import 2002 2002 2003 2004 2004 2004 2004 2004 2004 2004 2004 2004 2005 2005 2005 2005 2005 2005 2005 2006 2006 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 2007 Status Technology Absorbed Technology Absorbed In the process of Absorption Technology Absorbed Technology Absorbed Technology Absorbed Technology Absorbed Technology Absorbed Technology Absorbed In the process of Absorption Technology Absorbed Technology Absorbed In the process of Absorption In the process of Absorption In the process of Absorption In the process of Absorption In the process of Absorption In the process of Absorption In the process of Absorption In the process of Absorption In the process of Absorption In the process of Absorption In the process of Absorption In the process of Absorption In the process of Absorption In the process of Absorption Technology Absorbed Technology Absorbed In the process of Absorption In the process of Absorption In the process of Absorption In the process of Absorption Foreign Exchange Earnings and Outgo The information on foreign exchange earnings and outgo is furnished in the Notes on Accounts. 29. 10. For and on behalf of the Board KESHUB MAHINDRA Chairman Mumbai. 18. 28. 31. 20. 7. 2. 21. MDI Engine upgradation Design of 4 Wheel Drive Power shift transmission for higher HP tractors NEF TCI NEF performance improvements MDI Engine upgradation Antilock Braking System on utility vehicle Common Rail Diesel on utility vehicle New CRDe Engine development Development of a new MPV Euro IV Emission development for exports Multi Link Suspension for utility vehicle Development of Air Bags on utility vehicle Development of Cruise control on Utility vehicle Fatigue Lab and track design for MRV. 23. 11. 3.C) Imported Technology for the last 5 years Sr. 9. 12. 25. 28th May. 13. 14. 8. 30. 27. 22. 2007 17 . 17. 32. 19. 15. Technology Imported 1. 16. 4. 6.

00 0.00 15.03 1.00 Maximum outstanding during the year 25. Investments by the Loanee in the shares of Subsidiary Company. Mahindra Forgings Overseas Limited Mahindra Forgings Mauritius Limited 3.00) 7.00 Mahindra & Mahindra Financial Services Limited Mahindra Holdings & Finance Limited (including loans where the repayment schedule is more than seven years and no interest) Mahindra Intertrade Limited (including loans where there is no interest) Bristlecone India Limited Mahindra Gujarat Tractor Limited Mahindra Ashtech Limited Mahindra Shubhlabh Services Limited Plexion Technologies (India) Private Limited Mahindra Ugine Steel Company Limited (formerly Pranay Sheetmetal Stampings Limited.50 0.03 1.00 25.80 119.75 2.00 0.Particulars of loans/advances and investment in its own shares by listed companies..00 Housing Development Finance Corporation Limited Infrastructure Development Finance Company Limited Except as indicated above.00 . 2007 4.00 2.13 (3.13 (7.37 118. associates.00 18 Mahindra Holdings & Finance Limited Maximum outstanding during the year 12.00 2.00 32. required to be disclosed in the Annual Accounts of the Company pursuant to Clause 32 of the Listing Agreement.00 15. 2007 0. 1956.00 0. their subsidiaries.87 Loans and advances in the nature of loans to firms/companies in which Directors are Interested: Rupees in crores Name of the Company Balances as on 31st March. since merged with Mahindra Ugine Steel Company Limited) Mahindra Overseas Investment Company (Mauritius) Ltd.00 1.01 115. Loans and advances in nature of loans to subsidiaries: Rupees in crores Name of the Company Balances as on 31st March.13) 8. when the Company has made loans or advances in the nature of loan: Investment in the shares of the Subsidiary Company Rupees in crores Name of the Company Balances as on 31st March.13) 8.15 0. the Company has not made any loans and advances in the nature of loans to associates or loans and advances in the nature of loans where there is no repayment schedule or repayment beyond seven years or no interest or interest below section 372A of the Companies Act.00 2.00 118. 2007 0. etc.00 Maximum outstanding during the year 4.00 (25.

088. The larger three wheeler segment. The Indian automotive industry achieved a turnover of Rs. Thus the Company accounted for 16.676 vehicles. The Company’s production was 178. There are six manufacturers of MUVs in India.909 three wheelers were sold in India in F-07 demonstrating a growth of 12% (Source: SIAM).MANAGEMENT DISCUSSION & ANALYSIS Industry Structure The Automotive Sector The automotive industry is one of the key components of the Indian manufacturing economy. (MIL). This is a growth of 25% over the previous year (Source: SIAM).982 vehicles. in terms of sales volumes. total vehicle production (including two wheelers) grew 14%. Government of India). a growth of 14% over F-06 (Source: Industry and internal). hard tops and pick-ups.4% of the Indian production of MUVs. However. since its entry in 2001. In F-07 43. LCVs and three wheelers in the year under review. The tractor market is segmented by horsepower into the low 25 HP segment. 403. The total production of Multi Utility Vehicles (MUVs).415 tractors were exported. three wheelers with a gross vehicle weight (GVW) of over 1 MT) accounts for roughly 13% of the three wheeler market in volume terms (Source: SIAM) The Company has established a very strong presence in this segment. LCVs carrying 2MT to 4 MT of payload are commercial vehicles (CVs) used mostly for intraThe Indian Tractor market is the largest in the world. (i. the mid segment of 35 HP and the higher segment of above 45 HP Most of the major players cater to all the .113 LCVs (upto 4 MT payload) were sold – a growth of 4% over F-06 (Source: Industr y and internal). The Farm Equipment Sector 19 .000 crores in 2005-06 and accounted for over 13 million direct and indirect jobs and 17% of the total indirect taxes. In the current year 3. In the year under review. There are six manufacturers in India in this specific LCV segment. three segments. MUVs are further categorized into soft tops. In F-06 the Company made an entry into the smaller three wheeler category with the launch of its small load carrying three wheeler Champion Alfa. their relative strengths and market positions differ from segment to state movement of goods. The Company competes in this category of LCVs through its subsidiary Mahindra International Ltd.1. The Company is the largest manufacturer of MUVs in India. offering a range of over 20 models.520 MUVs were sold in India in the year F-07.18.e. MUVs are a family of vehicles having versatile forms for various applications like passenger transport or goods transport or a combination of the two.65. (Source: Automotive Mission Plan 2016. India provides the largest market in the world for three wheelers.317 tractors were sold in India and 34. 274. Light Commercial Vehicles (LCVs) and three wheelers in India during the year under review was 1.

The domestic tractor industry is fragmented.7%. Increased credit to agriculture. The Government also announced higher Minimum Support Prices for various crops for both Rabi and Kharif periods. (Source: Industry and internal) Within MUVs. and a better 20 .000 Crores. estimated at Rs. the pick-up market bounced back to grow 20%. the SAARC countries like Nepal. Mahindra tractors are exported to U. saw volumes increase 16 % in the year under review. after a 7% decline last year.segment. The second monsoon was also good and resulted in a 2. It is estimated that the agricultural GDP of India will grow by 2.6% increase in Rabi sowing this year. Many factors affect tractor sales including the monsoon. The soft tops sub segment has been declining significantly over the last few years and declined a further 24 % in the year under review. is the largest manufacturer of tractors in India and has sustained its market leadership in the Indian tractor market for over 24 years. which is the largest sub segment in MUVs.194. The Farm Equipment Sector The first monsoon (between June and September) of FY 06-07 was 99% of the Long Period Average. pesticides and other costs) and the credit policy announced by RBI. M&M’s Farm Equipment Sector (FES).vehicle production (including two wheelers) increased by 14% over the previous year (Source: SIAM). Due to this and water availability during the year. African countries. and Australia. with about 14 major players and a couple of small local players. which designs. fuel. China. FES is going global at a rapid pace. crop production expenses (including seeds. This growth needs to be seen in the context of several adverse developments during the year. The total number of MUVs sold in India increased by 14%. develops. Bangladesh and Sri Lanka and Eastern European nations. The hard top sub segment. manufactures and markets tractors for Indian and overseas markets. fertilizer. This last factor is relevant since more than 90% of tractor sales are on credit. Industry Industry Developments The Automotive Sector The high growth of the Indian economy in the year under review fuelled the growth of the Indian automotive industry .. The large three wheeler segment witnessed a decline in volumes of 28% following the 20% decline last year. Clearly these adverse developments were overcome by the increased purchasing power of the Indian consumer as well as the economic boom in manufacturing and services sectors. Interest rates went up significantly during the year. High fuel prices and increase in commodity prices led to increased vehicle prices for all segments except small cars (as excise duty on small cars dropped from 24% to 16% in the 2006 Union Budget).A.4% higher than last year.S. where they are sold under the parent ‘Mahindra’ brand name. means of irrigation and reach of water. The LCV segment (2-4 MT of payload) increased by 4% in sales volumes. commodity prices. government declared support prices for crops. in this year. crop production (Rabi and Kharif combined) is estimated to be 1.

Per erformance M&M Performance The Automotive Sector The Automotive Sector (AS) of the Company has been a full participant in the robust growth of the automobile industry. the Company’s sales volumes declined by 22% against a 28% decline for industry as a whole. a growth of 7% and 50% respectively.focus on retail tractor financing by the banking sector.3% shareholding in Punjab Tractors Ltd. Over the last three years. The success of the refreshed Scorpio and the Bolero variants helped the Company grow by 11% in the hard top MUV sub segment. It is engaged in the MUV and three wheeler segments and in the LCV segment through its subsidiary MIL. the Company’s vehicle production and sales touched an alltime high during the year under review. pig iron.4% over last year.415 tractors in F07. A refreshed version of the Bolero was launched in March 2007.550 LCVs in the domestic market. In F-06 Tractor and Farm Equipment Ltd. compared to 2. The industry witnessed a growth of 21. Margins therefore continued to be under pressure. LCV sales volume of the Company and MIL taken together was 28% higher than last year against the industry growth of the 2-4 MT payload segment of 4%. Thus the Company and its subsidiary MIL together sold 170.958 vehicles and 33.892 three wheelers were produced. Ltd (MRPL). a growth of 12% and 56% respectively. 21 .856 MUVs were sold by M&M in the domestic market in the year under review as against the sale of 114. helped the growth of the tractor industry.18. 144.700 three wheelers were sold by the Company in the domestic market. A total of 127. The prices of crude oil increased significantly in the current year.317 tractors in F-07. against the industry MUV sales growth of 14%. leading to an improvement in market share. The industry is witnessing consolidation in the domestic market. (PTL).621 tractors in F-06. Overall.208 vehicles and three wheelers in the domestic market demonstrating a growth of 18% over the previous year. and rubber have continuously increased. a record number of 127.62.811 LCVs for MIL and 614 cars for MRPL] and 34. The industry had to bear the impact of hikes in the price of raw materials. Exports from India amounted to 34. The Company is now entering the passenger car segment through another subsidiary Mahindra Renault Pvt. This year. In the large three wheeler segment. Production of the Logan mid sized sedan commenced around the end of the fiscal year 2006-07. despite the upturn in the industry.090 vehicles [including 8. The Company manufactures LCVs for MIL and passenger cars for MRPL on contract basis and also markets these under distribution contract for a fee. MIL sold 8. M&M successfully bid for a 43. the prices of important input materials like steel.2% in domestic sales volumes over F-06. (TAFE) bought Eicher Tractors Ltd. For the fifth consecutive year. The Company’s domestic MUV sales volumes grew 11%.694 MUVs in the previous year. The domestic industry closed at 3. Sales commenced from April 2007. a growth of 13.

The subsidiary company is currently also working on developing products for the higher end of the LCV segment as well as larger CVs. M&M. The plant near Pune will specialize in commercial types of vehicles for the Company as well as CVs for MIL. This led to an increase in market share in the segment from 16. Over the last three years the Company introduced its vehicles into many new geographies including Europe. The plant near Chennai will be set up in partnership with Renault s. one near Pune and another near Chennai. and given the Company’s participation in ever increasing areas of the industry.146 large three wheelers against 18.554 Champion Alfas in the year under review against 4. this LCV sub segment witnessed a growth of 4% in the year under review. The Company launched a pick up version of the Scorpio in South Africa during 22 . Middle East. while the Company’s soft top sale volume declined 21 %. Due to these sub segment shifts and performances. which did very well in the market leading to the Company’s pick up volumes increasing 25% and hence also driving the industry sub segment growth of 20% which made this the fastest growing MUV sub segment once again.953 the year prior to that. Maxi Truck. France. In the declining large three wheeler segment. to manufacture new generation personal segment MUVs for the Company and cars and other vehicles for Renault and Nissan. The Company’s small goods carrying three wheeler.112 in the previous year and against 22. to meet future domestic and export capacity requirements. The Company has intensified its efforts to identify niche markets for its automotive products throughout the world. As mentioned earlier.s and Nissan Motor Company Ltd. It established a beachhead for Europe with a JV in Italy that sells the Scorpio (called the Goa in Europe) and the Bolero.307 sold in the previous year. distribution and marketing conditions as India. has a presence only in the lower GVW (< 4MT) segment of the market. during the year. the Company sold 14. the Company launched a new low priced model. Champion Alfa that was launched in select markets last year was introduced in all the major markets in the year under review.3% in the previous year to 20. In LCVs.In the pick up sub segment. The Company’s vehicles are now sold in Italy.6% in the previous year to 46.6% in the year under review. the Company is planning to set up two greenfield plants. South America and South-East Asia by adapting unique business models for each country. while the Company’s and its subsidiary’s LCV sales improved by 28% due to recent launches in the passenger segment as well as the repositioning of a load carrying model. One of the principal reasons for this very healthy growth was the increased focus on the business through its subsidiary. The Company sold 19. through its subsidiary MIL.a.1% in the year under review. The soft tops MUV sub segment declined 24 %. the Company’s MUV market share in India declined slightly from 47. Given the high growth expectations from the Indian automotive industry. especially geographical areas that have similar sales. Spain and Portugal as part of a plan to cover Europe gradually.

It had introduced the first Turbo tractor in India. a ramp up of its new Uttaranchal plant and on rigorous cost reduction.8% in the domestic tractor market. The Company has been a pioneer in the Indian tractor industry in many ways. The Farm Equipment Sector M&M became the first tractor company in India to sell more than one lakh tractors in a year. It also bagged a State level award for Energy Conservation. the cumulative sale of tractors till date crossed the 12. During the year. AS’ Nashik plant won the National Award for excellence in water conservation.the year. In recognition of the Company’s efforts at conserving energy.981 tractors exported last year. In Operations.525 tractors as against 6. It was the first tractor company in the world to win the prestigious Deming Award.029 tractors sold during F-06. Power. In the last quarter. the Company ranked first. the entry into all these new markets was under the “MAHINDRA” brand name. the Company also unveiled the bio-diesel Scorpio and Bolero DI vehicles for 100% real world usage trials. These awards augur well for the future. This includes export of 7. In line with the Company’s objective of promoting and establishing the Mahindra brand across the globe.02. In the TNS study on Dealer Satisfaction released in 2007. the Kandivli Plant and the Zaheerabad Plant were awarded the National Energy Conservation Award – with the Kandivli Plant being given the Award for the 4th consecutive year. The allnew Scorpio launched at the end of the previous year received the Business World National Institute of Design Award in the ‘Best Automobile Design – Four Wheeler’ category and was also awarded the coveted Golden Peacock Award for Innovative Products / Services in the Automobile segment. In the current year. It sustained its leadership position for the 24th consecutive year with a market share of 29. The Scorpio is the first Asian vehicle in its class to run on 100% bio-diesel. a unique feat. The Company significantly improved its ranking on customer and sales satisfaction in syndicated studies conducted by independent third party agencies like J. The Company crossed another milestone in F-07.D. The Company sold 1.000 tractors mark.531 tractors in F-07 as against 85. becoming the first Indian automotive company to launch a product internationally outside India for sale.534 [including 175 vehicles sourced from MIL] in the previous year to 8. These initiatives resulted in a continuation of the strong growth in the Company’s export volumes. The Company has also been making significant efforts to take customer satisfaction to even higher levels. the Company focused on increasing capacity at existing plants. The Company was also rated second in a TNS study on Most Trusted Indian car companies. 23 .00. the Company was granted a patent for an apparatus developed by AS for testing the decorative automotive components for combined effects of chemical and mechanical wiping.021 vehicles [including 254 vehicles sourced from MIL] in the year under review. Volumes grew 45% from 5.

which was launched in F-06 for the domestic market. a Multi Utility Tractor. it launched the ‘Mahindra Shaan’. It became the market leader in the telecom sector for Powerol gensets. another “first of its kind” in India. The Australia operations. The major reasons were fuel price increases. this JV offers M&M a faster entry into China and a complementary product range for China as well as for export markets. Apart from this. The Company also entered new markets in F-07 including the Middle East and South America. It is also using suppliers in China as an alternative source for some commodities. In F-07.was able to reach planned capacity by the end of its first year. The Arjun Ultra-1. a tractor that can run on 5% bio-diesel was displayed in New Delhi in the presence of the Union Minister for Petroleum and Natural Gas. It also rolled out two new product variants each for the 55 and 60 HP categories for the US markets. the Company has trained a special focus on Customer Centricity and rural technology development. The overall growth in exports for Rest of the World (ROW) tractor markets (excluding USA and China) in F-07 was an impressive 132%. In line with the growing demand for automobiles running on alternate fuels.another first in India from M&M. Mahindra USA slowed down at the lesser rate of 7%.Mahindra China Tractor Company Ltd. On 7th February 2007. Shaan is a 25 HP innovative product designed to serve small and medium farmers in multiple ways. A 24x7 toll free number has been introduced to address customer queries and complaints . (MCTCL) . In the USA. the Company had made an entry into the retail and nongenset segments. bricks and flowers. engine and genset sales put together increased by 53% in volume terms while the sales more than doubled in value terms. On the global front the Company’s strategic joint venture in China . was well received and has significantly contributed to growth in the higher HP segment in F-07. are doing well. styling and ergonomics of existing products. Australia and Africa were major contributors to this growth. This year it developed noise resistant canopies for gensets in accordance with the Central Pollution Control Board norms. The gensets are sold under the ‘Mahindra Powerol’ brand. This year. Besides being used as a regular tractor. The Company also sells engines and gensets to various industries. not only on the field but also on the road.F-07. Strategically. A few products of MCTCL are being tested in target markets. the inbuilt trolley feature enables the customer to use Shaan for transportation of farm produce and other commercial goods like sand. MCTCL aids this process. the Company continued to evolve new products and upgrade the aesthetics. a Bio-Diesel programme for tractors was initiated. The Company continued its journey towards excellence in business process improvements in 24 . softening of the housing market and higher energy costs. which began in F-06 with the setting up of an assembly plant at Brisbane. In F-06. the 0-70 HP tractor industry declined by 12% between April 2006 and March 2007.

The Company’s entry into the car market through a joint venture and its strong presence in the MUV segment will enable the leveraging of the full range of opportunities. TPM was launched at the Mumbai plant in November 2006. This makes all the four of the Company’s plants OHSAS certified. The Company was also granted a patent for a Self Air-bleeding fuel supply system with gravity-primed fuel feed pump developed by it for diesel engines. and its active search for overseas partners and markets. The proportion of MUVs in India is relatively low compared to corresponding figures in Asian countries that share a similar or more developed profile. In the long term. in terms of number of days. The ongoing WTO and Free Trade Area negotiations with Thailand. which could lead to further MUV growth. Involving suppliers in the process strengthened the ongoing focus on continuous improvement. With the Company’s enhanced presence in the Indian automotive industry through its joint ventures for CVs and cars as well with its entry into the smaller three wheeler category. The Company continues to improve its supply chain by reducing dealer stocks and outstandings. It believes that its dealer stocks and outstandings. A Lean Manufacturing initiative was started at all its plants. In the Automotive Sector. the Company believes that its core MUV market is likely to increase its share in the light vehicles category due to the inherent versatility of MUVs for a fast growing developing country. Opportunities The Indian economy has been growing at an annual average growth rate of well above 8% for the last three years making it one of the fastest growing large economies in the world. are much lower than other industry players. Automotive Mission Plan 2016 (AMP 2016). The AMP 2016 also states that fiscal benefits should be provided to MUVs. the Company is well poised to garner an increasing share of this fast growing segment of the Indian economy. This kind of growth focus combined with the Company’s diligent expansion of its technological and product development capabilities. ASEAN. India’s automotive sector is one of the fastest growing in the world. The Indian Government is also working on a plan to significantly increase the growth prospects of the Indian automobile industry. augurs well for the coming years. It has announced a new automotive policy. The Mumbai and Rudrapur plants were certified in F-07 for ‘Occupational Health & Safety Assessment Series’ (OHSAS.several ways. we believe that the light vehicle market will expand at a fast clip in India and that MUVs will take an increasing share of this market. With the Indian economy on a high growth path and with the consequently increased disposable incomes of the population at large. in partnership with the industry with the objective of doubling its contribution to the Indian economy over the next ten years. SAARC countries and the Mercosur countries are likely to lead to lowered tariffs across many target 25 . the Indian automotive industry is expected to have significant growth opportunities. viz.18001).

East and West Corridor project. Hence if the planned rate of GDP growth is achieved over the next decade. the demand for MUVs and CVs should increase commensurately. will launch a new range of medium and heavy CVs over the next few years and thus ensure the Company’s participation in this important segment of the Indian automotive industry. along with the huge increase in the working age population expected over the next 10 years. The adoption of these norms could lead to higher demand due to a surge in the replacement demand of the scrapped vehicles. The Government of India has given increased focus to agriculture in the budget for F-08. Thus. the Company’s subsidiary. the Company’s partnership with Renault to introduce Renault models suitable for India through its subsidiary MRPL will provide the Company incremental growth from participating in the other fast growing segment of the Indian auto industry. would maintain a high demand for CVs. compared to F-06. through these strategic initiatives.export markets. MUVs will continue to be the most appropriate and economical vehicles for transporting people in the interiors.6% this year. The Rabi crop sowing increased by 2. Regulatory measures on compulsory scrapping of vehicles beyond a particular vintage have been mooted in some States. South. which is an encouraging sign for the tractor industry. Given that over half the Indian market is accounted for by passenger cars. There are opportunities for the Farm Equipment Sector as well. The crop and water situation also appears satisfactor y.like the North South East West corridor which has a budget of tens of thousands of crores . A higher level of industrial development generally leads to a greater demand for MUVs and CVs.and the increased goods movement from a fast growing economy. This crop will be harvested in the first quarter of next year. providing a huge opportunity for growth. To capture a share of the growing medium and heavy CV segment. MIL. providing further opportunities for MUVs and LCVs. The burgeoning Indian middle class population. Rural public transportation is not as extensively developed as in the urban areas. as well as the extremely high cost required for improvement. The increased infrastructural investments required to maintain the high growth of the Indian economy . This could provide a significant opportunity to generate larger volumes from export sales and further the sector’s strategic emphasis on the development of exports. with fast growing disposable incomes. will drive high growth for passenger vehicles. the Company has put in place plans to increase its size of the addressable market of the Indian automotive industry from the current 17% to 75%. In India. Given the current state of road infrastructure in the interiors. MUVs and CVs are preferred vehicles for projects and construction sites like the Golden Quadrilateral road project and the North. 76 water reservoirs are identified as ‘major reservoirs’ since they contribute to 63% of the 26 . with an increasing propensity to spend.

The Company plans to continue its focus on these markets to become a global leader. Import tariffs have been progressively reduced and are expected to be reduced further in the future in line with India’s obligations under WTO and its bilateral free trade agreements with certain countries. 27 . China will also serve as a low cost sourcing base for its products. in turn. These capabilities have been strategically integrated into a single sector. This will increase competitive pressures on the Company. with the possible eventual elimination of import tariffs on imports from these countries. especially for sourcing. Threats For the Automotive Sector more stringent regulatory norms are being introduced. Facilities at the Nagpur and Rudrapur Plants will ensure low cost manufacturing bases for the Company. The pressing need of overseas automotive players to cut costs has created an outsourcing opportunity for India in the area of automotive systems/aggregate production. There are also certain states in India where penetration is low and these provide opportunities for growth. Mahindra Systech. they may result in an increase in manufacturing costs. This move is expected to result in further business growth and to establish the Mahindra brand in the global automotive arena. M&M is well positioned to grow sales in the Chinese market. Mahindra USA plans to introduce a new series of models in US markets that will open up new customer segments.total water capacity in the country. may affect margins or demand in a price sensitive situation. Current trends indicate that interest rates for vehicle and tractor loans given by NBFCs and Banks in India are likely to increase over the years and this may affect the Company’s sales volume leading to lower profitability.Es and Tier 1 suppliers. which. The USA and China are among the top three tractor markets in the world apart from India. India has a competitive edge due to its strong base of highly skilled (and relatively low cost) engineers. While these measures are welcome. The water level in these major reservoirs across India was higher than last year by 12%. It will also partially de-risk the cyclicality inherent in the Automotive and Farm Equipment businesses. products and services across the chain. M&M already has domain expertise in many of the required areas and can offer global O. creating stronger franchises. Apart from this. giving major opportunities for savings. MCTCL has started selling tractors in the domestic Chinese market. East Europe and the Middle East. M&M is also exploring various global tractor markets in Africa. the sectors will share synergies of resources. right from the sourcing of steel to the design of systems. a strong thrust area. In China. The Company’s exports. can be adversely affected if the Rupee continues to appreciate. restructuring dealers and the introduction of new products. The Company will leverage these opportunities by strong marketing initiatives like brand building.

Diesel constitutes over 60% of the running cost of a tractor. As for all exporters. the mandatory use of vehicles powered by alternative energy sources could lead to a demand for different types of tractors. However even after four years of fuel price decontrol. steel and rubber are likely to put pressure on prices and could affect 28 . If not compensated by a crop price increase. which minimizes this risk. a substantial differential has been maintained. For the Company. Any reduction in the price differential between petrol and diesel could increase demand for petrol MUVs at the expense of diesel MUVs. thus demonstrating its capabilities. any political. It also hopes to garner greater economies of scale from its entry into the car market with its joint venture with Renault. The Company has developed products powered by alternate energy like CNG and electricity to provide lower polluting products for a better environment. The Company is countering this threat by a stronger focus on reducing costs and increasing efficiency of operations. Hence the Company is well placed to move with the trend towards alternative energy vehicles. The Company continued to be amongst the most aggressive in passing on these costs to consumers. Such price hikes. the tractor demand. To minimise this risk. In F-07 it successfully tested a tractor powered by 5% bio diesel and will introduce it soon. Mandator y use of vehicles powered by alternative energy sources could lead to a demand for different types of vehicles. Almost all of the Company’s MUV models are diesel powered and an increase in preference for petrol vehicles could be a disadvantage to the Company. With M&M’s strong focus on globalisation. As mentioned earlier. in turn. High fuel prices increase the running costs. The impact could be felt on the auto sector bottom-line if not passed on to the customer. A major threat to both sectors lies in the escalation in raw material prices. and may therefore impact demand for automobiles. should it take place. but may not be able to always do so in the future. should it become a norm in future. and may directly impact the tractor industry. any form of tariff/non-tariff barriers imposed by any country where M&M has a significant presence or has plans to grow will be a threat. Consistently high fuel prices increase the running cost of vehicles. this can impact the availability of funds with farmers and. it also developed bio diesel powered Scorpio and Bolero in the year.The entry of new players has made the passenger car and MUV markets much more competitive affecting the margins of all participants. it is customising products powered by alternate energy like bio diesel. economic uncertainty or natural calamity in the countries of export would be a potential threat. The Company is well placed to move with the trend towards alternative energy tractors. Any further increase in the price of diesel may adversely impact input costs for farmers. especially for iron. The Company has also developed prototypes of a hybrid Scorpio and hydrogen powered three wheeler.

even if individually the Company’s volumes would account for only a part of the total. Banks have been increasing the interest rates. If for some reason. The jurisdictional Central Excise authorities. The Company has established two joint ventures during F-06. in his budget speech. Holding the price line could have an impact on profitability. which could impact the loan repayment ability of the farmers. Excise In 1991. Price increases on the other hand could impact volumes. the increased fixed costs would impact the Company’s profitability in the future. the Finance Minister. phase wise to protect it from this risk. The Company is planning to set up two new greenfield plants in association with global partners. 90% of whom buy tractors against loans. However. The Company has plans to bring in the incremental capacity from these new plants. growing NPAs of banks are a concern for the Company.margins or demand. approved the classification of these vehicles as ten-seaters which attracted a lower rate of excise duty under Tariff Entry 8702. Risks and Concerns Stringent legislation on pollution and emission requirements will increase the cost of the Company’s products for the Automotive Sector. and thus impact tractor demand. a steep increase in crude oil prices globally. the Excise Department subsequently disputed the classification on the ground that classification of the Commander under Tariff Entry 8702 as ten-seater did not meet certain parameters of the Motor Vehicles 29 . The Company successfully contested the subsequent challenge by the excise authorities. If these do not develop as per their business plan. For the Farm Equipment Sector a fluctuation in forex rates could be a risk. an excise dispute arose at the Nashik and Kandivili factories relating to the Commander range of ten-seater vehicles. the Company has tied up with other OEMs to jointly share the costs and bring in economies of scale for the full plant. The Excise Department accepted these decisions and the classification of the vehicle as a ten-seater was consistently approved by the authorities. Inspite of the above. Domestically. is taking appropriate steps to hedge currency exposure thus limiting the impact of risk. However. the returns from them may be lower than expected and this could have an impact on the Company’s margins and cash flows. after due inquiry. as a practice. M&M. has an inflationary impact on the overall economy. the demand for the Company’s products does not allow a significant utilization of these new capacities. It will continue to focus on cost cutting measures through value engineering. in two different fora. Apart from this. With the addition of the full capacity of these new plants. as this puts pressure on the credit availability to the farmers. the Company’s dedicated final capacity will significantly increase as compared to its current capacity. has talked about 2% subvention to support farmers for short-term crop loans. Additionally. Interest rates for tractor loans tend to be higher than for housing and car loans.

9 mn to 66. and demanded differential duty. which stayed the further proceedings unconditionally. 24. The Company does not expect any liability on 30 . During the current year. The High Court remanded these matters for adjudication before the Excise authorities.55 crores and imposed a penalty of Rs. The last five years have seen both the Indian economy and the Indian automotive industry growing at a fast clip. Over the same period. The Tribunal was pleased to grant an unconditional stay against this order as well. 20 lacs in respect of “Armada” range of vehicles manufactured by its Nashik Unit during the period 1992 to 1996. The final hearing in the matter is awaited. on the same basis as adopted for Commander range of vehicles. 88.2% p. High growth of the industry leads to accelerated growth of the economy. In fact the growth of production across March 2005 confirming the demand of Rs. 1988 and the Maharashtra Motor Vehicles Rules. the Commissioner of Central Excise. The matter is yet to be finally heard.3% p. a bench of the Tribunal passed an order (stay order) directing the Company to pay Rs. Between 1997 and 2005. The matter is yet to be heard. the Tribunal and various expert/statutory bodies holding the vehicle to be a ten-seater have accepted this stand.a. The Department has challenged this order by filing a Civil Appeal.08 crores. The Department’s stand was that the Commander should be classified under Tariff Entry 8703. Outlook There is a strong linkage between the strength of the automotive industry and the strength of the economy of a country. In another concurrent proceeding.Act. which was pleased to set aside this stay order and remand the matter back to the Tribunal for hearing on the stay application afresh. The Indian auto industry is one of the fastest growing automotive industries in the world. Initially.a. attracting a higher rate of excise duty. which has been admitted. before the Supreme Court.5 mn . vehicle production in India increased by an average 9. the global production of vehicles increased from 55. Nashik has also confirmed a demand of Rs. The Company challenged these demands by writ petitions before the Bombay High Court. 1989.216. 54 crores as pre-deposit. (Source: OICA). The Company has filed an appeal and a stay application in the Tribunal challenging this order. 54 crores and furnish bank guarantee of Rs. which in turn leads to a higher growth for the automotive industry in a virtuous cycle. The Excise Commissioners. The Company challenged this before the Bombay High Court.03 crores and imposed a penalty of Rs. Navi Mumbai passed an order dated 30 th this account as it has been advised that an extraneous legislation like the Motor Vehicles Act cannot be referred to for the purpose of excise classification.an average growth of 2. The Commissioner (Adjudication). the Tribunal passed an order in July 2005 holding that the vehicles were appropriately classifiable under Tariff Entr y 8702 as ten-seaters. (Source: SIAM).

Moreover. due to the high base and the upward bias on interest rates there is a also a possibility that the growth in F-08 may be relatively lower than F-07. A new agreement was signed at the Zaheerabad Plant that provides for increased productivity linked to increased wages.all categories of vehicles averaged 17% p. This year there was a major thrust to increase workman participation in improvements. value engineering. If the Indian economy continues to grow at a high rate. the Government of India has proposed to allocate Rs.400 crores has been announced for water related schemes. and exploiting synergies between its Sectors.37 lakh crores for agricultural credit. A major wage settlement was signed at the Nagpur Plant on 30th April 2006 aiming for 30% higher productivity. It is therefore estimated that the industry will witness a moderate growth path in F-08 depending on the monsoon.a. Manpower utilization is now at an effectiveness level of almost 100%. However. Continuous Improvement Teams have been 31 . Both sectors with their updated product portfolios and their exploration of global horizons. There is a focus on seeds production. 2. will strive to maintain their leadership position. over the last five years (Source: Automotive Mission Plan 2016. Industrial relations during the year for FES were cordial at all the plants and area offices of M&M. countr ywide connectivity of all its suppliers and dealers. given the high correlation of the automotive industry to GDP growth and the fact that the industry itself accounts for about 4. demand conditions for the short to medium term are expected to remain strong. This opens several possibilities for the FES and it is working on the development of a number of new products. Rainwater Harvesting. Material developments in human resources/ industrial relations Industrial relations during the year for AS were cordial at all the plants and area offices of M&M. which is an important factor for the tractor industry. improved efficiency measures like supply chain management. Moreover there is a strong focus on irrigation projects and investment for development of rainless areas. for small farmers.12. The government’s emphasis on rural economic development and supporting the agriculture sector provides longer-term opportunities for faster farm mechanisation. Rs. In the longer term. particularly value for money solutions. the Company will continue its focus on achieving cost leadership through focused cost optimization.a. Over the longer term AS will be increasing its participation in the growth of the Indian auto industry by entering into other segments like cars and medium and heavy commercial vehicles due to its JVs. auto industry on a GDP growth forecast of 78% p.5% of India’s GDP the outlook for the . Government of India). For F-08. is quite bright. The tractor industry saw a steep growth in F07 and has now reached a high base. as a means of improving the water table is also on the government’s agenda. Simultaneously.

Fixed Assets: As at 31st March 2007 the Gross Block of Fixed Assets and Capital Work in Progress increased to Rs.62 crores) March 31. among other things.59 crores (previous year Rs.52% 4. The Company has a strong and independent internal audit function.formed amongst workmen to get inputs for process improvements with a focus on total quality and cost effectiveness. Inventories: Companies Act.10% March 31. Professionally qualified technical and financial personnel of the internal audit function conduct periodic audits to ensure that the Company’s internal control systems are adequate and are complied with Discussion on Financial Performance with respect to Operational Performance Overview Over view The financial statements have been prepared in compliance with the requirements of the 2. The permanent employee strength of the Company as on 31st March 2007 was 13089. 2007 Raw materials and bought out components as a % of consumption Finished goods as a % of gross sales better planning and control.57 crores). 2006 5. Internal Control Systems The Company maintains adequate internal control systems. which enhances the internal control mechanism. 294. 4. 1956.70% There was an appreciable reduction in inventories due to focus on supply chain management and 32 . 3510. 36. 10. Financial Information Fixed 1. The Chief Internal Auditor reports directly to the Chairman of the Board.28 crores from Rs. This information appears along with the consolidated accounts. During the year. The Company uses an Enterprise Resource Planning (ERP) package. The Group’s consolidated financial statements have been prepared in compliance with the standard AS 21 on Consolidation of Accounts and presented in a separate section. 544. The major items of capital expenditure are for Capacity Enhancement. the Company incurred capital expenditure of Rs. The company has provided segment reporting on a consolidated basis as per standard AS 17 on segment reporting.71 crores as at 31st March 2006.62% 4. reasonable assurance of recording the transactions of its operations in all material respects and of providing protection against significant misuse or loss of company assets. which provide. 3064.95 crores (previous year Rs. New Product Development and Research & Development. and Generally Accepted Accounting Principles (GAAP) in India. This includes purchase of Intangible assets aggregating to Rs.

85 7437.01 989.79 28.77 6.45 266.68 103.06 100.79 10050. crores) F – 2006 Inc.) Amount % to Net % Income 69.92 20.70 22.86 crores earned in the previous year.34 8929.85 % in the current year.700. Finished and Semi-finished Products Personnel expenses Interest. 2007. 637.78 (0. 194. (Rs.00 1.26 194.56 16.57 1124. commitment and finance charges Depreciation Other expenses Provision for contingencies Total Expenditure (67. 2006.68 100./(Dec.Sundry Sundry Debtors: Sundry debtors amount to Rs. 2007.89 8222.40) 200. crores) Particulars F – 2007 Amount Gross Sales/Income from operations Less : Excise Duty on Sales Net Sales/Income from operations Other Income Other Income: Other income during F-2007 at Rs.23 87. It comprises mainly of dividends from subsidiaries/ other companies.01 90.72 Raw materials.89 crores as at March 31.63 551.73 11363.92 666.06 13.33 20.86 % 113.15 (Rs. Debtors as a percentage of gross sales and income from RESULTS OPERATIONS RESULTS OF OPERATIONS 1.68 13.63 (18.05 Though the total expenditure has increased in absolute amount.49 6.26 Inc.97 crores as at March 31.45) 209.11 0.) % 21.82 % for the previous year. Income : operations are 6.67) 2.43 12. income from surplus fund investments and other miscellaneous income./(Dec.00 1.05 1312.71 19.45 % last year to 88. This decrease in sundry debtors is due to judicious credit management and control. as compared to 6.08 12.22) 2.58 1269.54 (0. 33 .17 % for the year ended March 31. as compared with Rs.58 4. Expenditure: Particulars F – 2007 Amount % to Net Income 6851.97 crores was significantly higher than Rs 103.18 5713.03 0.07 68. it has declined as a percentage of Net sales / Income from Operations from 90.94 F – 2006 Amount 9347.97 % 113.78 88.

59 lakhs Gross arising from certain refinements in the actuarial assumptions. fringe benefit tax and deferred tax for the year ended March 31. Other Expenses : Other expenses as a percentage of net sales shows an increase over the previous year is mainly because of increase in variable expenses on account of higher volumes and increase in Advertising and Brand Building. 2007 is a net income of Rs. annual increments and the impact of wage settlements. 2007 is at Rs.01 crores in the previous year.60 lakhs.210.36 crores) the interest cost for the current period at Rs.Material Cost : For the year ended March 31. Interest (Net) : The interest expense (net of interest income) for the year ended March 31. The profit in the current year is mainly from profit on sale of shares of Tech Mahindra Limited offered as a part of that Company’s Initial Public Offering while in the previous year profit from Exceptional items included profit on sale of shares of MMFSL and profit arising out of the transfer of the right to carry on LCV business along with congeries of rights therein and intellectual property rights to the subsidiary Mahindra International Limited. Provision for taxation : The provision for current tax.58 crores as compared to Rs.66%. Period Prior Period Adjustments: Prior period adjustments (net of tax) Rs. 200.121.98 crores as against Rs.96 crores in the previous year due to more efficient funds management. Gross of interest income (CY: Rs.45 crores as against a net interest income of Rs 18. 209. Depreciation : The depreciation for the year ended March 31. material cost as a percentage of net sales shows a decrease over the previous year mainly due to efficiencies arising out of strategic sourcing and reengineering initiatives undertaken by the company. Personnel Cost : Personnel cost as a percentage of sales has decreased from 6.25 crores.80 crores during the current year being subjected to tax at the maximum marginal rate of 33. 2584. 26.63 %. 19. Material cost is also impacted by product-mix changes.01 crores last year. 973.80 crores was lower than Rs. Exceptional Items : The profit from Exceptional items during the year ended 31st March 2007 is Rs. 1918.85 lakhs Gross and the resultant tax credit on both the items of Rs.191. 67. 45. 307.71 % to 6. on account of the incremental profit of Rs. 2007 as a percentage to profit before tax is higher than the previous year. accrual of Post Retirement Medical Benefits on an actuarial basis Rs.84 lakhs (previous year nil) are on account of Provision for Gratuity Rs. 34 . PY Rs.40 crores in the previous year. Increase in personnel cost in absolute value is mainly due to increase in officers’ strength. 2007. 87.

156. Mahindra & Mahindra Financial Ser vices Limited (MMFSL). The total income grew by 53. The Group comprises of the flagship holding company.38 crores in the previous year – an increase of 160. The profit after tax before exceptional items for the year was Rs.81 crores as against Rs.27 %. 612. The profit before exceptional items and tax for the current year is Rs. Mahindra & Mahindra Financial Services Limited. the company has published the consolidated Profit and Loss Account and Balance Sheet for the M&M Group as a whole.73 crores in the current year. The Group’s net turnover grew by 41.54% from Rs.73 crores 35 . Mahindra Holidays and Resorts India Limited. This growth in profits could be achieved due to the excellent performance by some Group companies. 75 Subsidiaries. reversal of certain excess provisions for income tax of previous years. continued to grow towards dominance in the Holiday Segment with membership growing to 53113 nos. 108. 209. 1276. despite very stiff competition. prior period adjustments and tax and after deducting minority interests is Rs. a few of which are mentioned here. a profit of Rs.62% to Rs. This is due to the excellent performance of the parent company and group companies like Tech Mahindra Limited.28 crores in the current year from Rs.1497.61 crores on account of deemed divestiture of Mahindra Gesco Developers Ltd.72 crores earned last year – a growth of 17.62 % growth in its total income from Rs.03 % with total income increasing from Rs. The Gross turnover for the year ended 31st March 2007 of Consolidated Mahindra Group is Rs.2936.18 crores mainly due to.72%. During the year there was also a Prior period profit of Rs 15.62 crores as compared to Rs 235.29 crores arising mainly on account of an upfront payment of Rs. It is one of the leading NBFCs in financing of four wheelers and its profit after tax grew by 22. 844. achieved a 41.27 crores in the previous year to Rs. The consolidated group profit for the year after exceptional items..73 % from Rs.88 crores in the current year.68 crores last year to Rs. The Group’s Finance company. Mahindra Holidays and Resorts India Ltd. 19436.41 crores in F-2006. Mahindra Gesco Developers Limited and others. 4 Joint Ventures and 10 Associates engaged in various businesses. witnessed a Revenue growth of 130.91%. 1539.15 crores as against Rs.41 crores to Rs. 12648.37 crores for the previous year.53 crores arising from the Initial Public Offering of Tech Mahindra Ltd. Tech Mahindra Limited (Consolidated). 132. 524. 2319.11 crores in the previous year – a growth of 50.61 crores. During the year there was an exceptional charge of Rs 117.94 crores by Tech Mahindra to a customer. 13908. at the time of its successful Qualified Institutional Placement of shares and a profit of Rs 152. Mahindra & Mahindra Limited. during the year under review. 596.17912. The Group’s major IT subsidiary.1269.Position Consolidated Financial Position of the M&M Group As required by the Accounting Standards.69 crores as compared to Rs.

03 261. 5. The Company (through its Results Segment Results subsidiary.25 crores – a growth of 31.13 crores to Rs 163.38 % from Rs.76 Certain statements in the Management Discussion and Analysis describing the Company’s objectives. expectations or predictions may be “forward-looking statements” within the meaning of applicable securities laws and regulations.62 63.04 499. The Company’s total income increased from Rs.65 crores.76 crores in F-2007.19 48.23 165. Automotive Farm Equipment Financial Services Steel Processing & Trading Infrastructure Hospitality IT Services Systech F-2007 653.68 32.69 F-2006 538. Important factors that could make a difference to the Company’s operations include raw material availability and prices. 36 .03 18. 124. the Group’s subsidiary in the business of real estate and infrastructure development showed impressive growth during the year under review.46 310.84 crores in F-2006 to Rs. estimates. The profit after tax during the year increased by 28. cyclical demand and pricing in the Company’s principal markets. 7.17 crores.82% from Rs 11.41.28 9.95 161. economic developments within India and the countries in which the Company conducts business and other incidental factors.to Rs.54 164. 3. projections. 4.67 207. 240. Actual results could differ from those expressed or implied. Mahindra Gesco Developers Limited (MGDL). The profit after tax for the year registered a growth of 100. 2. Mahindra World City Developers Limited) has successfully operationalised the SEZ at Chennai and has formed a SPV Mahindra World City Jaipur Ltd along with the Government of Rajasthan for building a new SEZ at Jaipur. tax regimes. 8.66 98. 20.52%.56 49. The demand for housing is buoyant and is expected to remain so at least for the near medium term. changes in Government regulations.00 crores to Rs 14. crores) Segments 1. The results achieved by major business segments of the Group are given below: (Rs. 6.

its Directors. 1956 as Non-Executive Directors and the remuneration that some of the Directors may receive for professional services rendered to the Company either in individual capacity or through a firm in which one of them is a partner. The Board reviews and approves strategy and oversees the results of management to ensure that the long 37 .. Thomas Mathew T.CORPORATE GOVERNANCE Your Company is fully committed towards transparency in all its dealings. its Promoters. banking. the remuneration that these Directors would be entitled to under the Companies Act. Apart from reimbursements of expenses incurred in the discharge of their duties. nominated Mr. its Senior Management or its Subsidiaries and Associates which in their judgement would affect their independence. CRISIL Limited. Board of Directors The Company has a Non-Executive Chairman and the number of Independent Directors is more than 1/3 of the total number of Directors. Your Company promotes and practices a culture that is built on core values and ethics. A report on compliance with the Code of Corporate Governance as prescribed by the Securities and Exchange Board of India and incorporated in the Listing Agreement is given below. rd The number of Non-Executive Directors is more than 50% of the total number of Directors. insurance and other allied fields. It is committed to all its stakeholders including fulfilling its societal obligations. I. belong to the Company’s promoter group. though professional Directors in their individual capacities. adhering to the corporate values and leveraging the corporate resources in alignment with the benefits to the stakeholders. which was engaged to conduct a ‘Governance and Value Creation’ rating has assigned a ‘CRISIL GVC Level 1’ rating to your Company. with expertise and experience in general corporate management. 2006. The composition of the Board is in conformity with Clause 49 of the Listing Agreement. term objectives of enhancing stakeholders’ value are met. The Vice-Chairman & Managing Director and the two Executive Directors are Whole-time Directors. and professionals. The rating indicates that M&M’s capability with regard to Corporate Governance and Value Creation for all its stakeholders is the highest. The remaining eight Non-Executive Directors (including the Nominee Director) are Independent Directors. Life Insurance Corporation of India (LIC) had with effect from 29 th May. finance. Your Company has been practising the principles of good Corporate Governance and ethical business practices over the decades. its current Managing Director as its representative on the Board. The Chairman. none of these Directors has any other material pecuniary relationships or transactions with the Company. who is a NonExecutive Chairman and the Vice-Chairman & Managing Director.

Mahindra (Vice-Chairman & Managing Director) Mr.. K. Chairmanships and Directorships of public companies* as on 31st March. Composition of the Board The Company presently has twelve Directors. Murugappan Mr. Bharat Doshi (Executive Director) Mr. Godrej Mr. A. Deepak S. K. Anupam Puri Mr. The Senior Management have made disclosures to the Board confirming that there are no material. The names and categories of Directors. M.** EXECUTIVE Mr. companies registered under section 25 of the Companies Act. Directors Category A. financial and/or commercial transactions between them and the Company which could have potential conflict of interest with the Company at large. R. including that of Mahindra & Mahindra Limited Excludes Alternate Directorships but includes Additional Directorships and Directorship in Mahindra & Mahindra Limited ** Appointed as Nominee Director of LIC with effect from 29th May. M. S. Parekh Mr. across all the companies in which he is a Director. 2006 $ 38 . Total Number of Committee Memberships. K. Narayanan Vaghul Dr. Ganguly Mr. Advocates & Solicitors. N. Anand G. None of the Directors on the Board is a Member on more than 10 Committees and Chairman of more than 5 Committees (as specified in Clause 49 of the Listing Agreement).86. R. 2007 Committee Memberships+ NON-EXECUTIVE Mr. in which Mr. received professional fees of Rs. 1956 and government bodies Committees considered are Audit Committee and Shareholders/Investors Grievance Committee. foreign companies. Thomas Mathew T. the number of Directorships and Committee positions held by them in the companies are given below. Kulkarni Mr.Khaitan & Co. Non-Executive Director is a partner. Keshub Mahindra (Chairman) Mr. Nanda (Executive Director) * + Promoter 1 Promoter Independent Independent Independent Independent Independent Independent Independent Independent 1 6 6 5 4 1 7 2 - Committee Chairmanships+ 1 4 3 1 1 2 1 - Directorships $ 6 12 14 9 11 4 7 4 5 12 Non-independent Non-independent 4 9 2 4 9 14 Excludes private limited companies. Kulkarni. A.28 lakhs. B.

C. Mahindra Mr. B. T. 2006. the Vice-Chairman & Managing Director apprises the Board at every Meeting of the overall performance of the Company. followed by presentations by the Sector Presidents. Board Procedure A detailed Agenda folder is sent to each Director in advance of Board and Committee Meetings. K. S. Minutes of the Board Meetings of your Company’s unlisted subsidiary companies. Nanda Mr. 2007. K. Murugappan Mr. 21st November. Ganguly Mr. S. as well as steps taken by the Company to rectify instances of non-compliances. 5 th March. 2007. 2006 to 31st March. M. 31st January. Kulkarni Mr. These were well attended. Bharat Doshi Mr. adoption of quarterly/half-yearly/annual results. significant labour issues. 2006. including the Company Secretary and Compliance Officer. 26th July. investment and exposure limits. 2006. Vijayan resigned as Nominee Director of LIC with effect from 29th May. Attendance of the Directors at Meetings of the Board and at the Annual General Meeting (AGM) Eight Board Meetings were held during the period 1st April. S. M. Parekh Mr. significant transactions and arrangements entered into by the unlisted subsidiary companies. 26th October. review of major legal issues. A. Thomas Mathew T. The attendance of the Directors at these Meetings is as under: Number of Board Meetings Attended 8 7 6 6 5 8 8 6 6 8 5 6 Attendance at the AGM Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes - Appointed as Nominee Director of Life Insurance Corporation of India (LIC) with effect from 29th May. A detailed functional report is also placed at Board Meetings. Godrej Mr. 2007 and 26th March. A. Deepak S. 2006 @ Mr. The Sixtieth Annual General Meeting (AGM) was held on 26th July. 2006. Narayanan Vaghul Dr. and information on recruitment of Officers just below the Board level. 2007. Vijayan @ * accounting provisions and write-offs. * Mr. Anand G. transactions pertaining to purchase/disposal of property(ies). R. corporate restructuring. T. 2007 on the following dates – 29th May. Minutes of Meetings of the Audit and other Committees of the Board. N. 2006. annual operating and capital expenditure budgets. 21st March. Number of Board Meetings. The Board also inter alia reviews strategy and business plans.B. Keshub Mahindra Mr. 2006 39 . compliance reports of all laws applicable to the Company. To enable the Board to discharge its responsibilities effectively. Anupam Puri Mr. The gap between two Meetings did not exceed four months. major Directors Mr.

Mahindra is Chairman of the Board of Governors of Mahindra United World College of India. Vice-Chair man of Housing Development Finance Corporation Limited and Director of United World Colleges International Limited. He is a Director in Bombay Burmah Trading Corporation Limited. Mr. a Member of the Governing Board of Bombay First and President of the Governing Council of the University of Pennsylvania Institute for the Advanced Study of India.K. Mr. Anupam Puri. U.01. He was also the Chairman of Indian Institute of 40 . Keshub Mahindra has been the Chairman of the Board since 1963. and was appointed by the Government to serve on a number of high level Committees including the Sachar Commission on Company Law & MRTP and the Central Advisory Council of Industries. he joined the Company as a Director in 1948. Mr. A graduate from Wharton. R. Ahmedabad. He is Chairman of Mahindra Holdings & Finance Limited. Jamshedpur. Keshub Mahindra holds 2. Mr. The Sir Jehangir Ghandy Medal for Industrial Peace 1994 of XLRI. amongst other companies. Rodal Investments Private Limited and Pratham-India Education Initiative. S. Mahindra has received several national and international awards for his contribution to public life and industry. He is a Member of the Prime Minister’s Council on Trade & Industry. among others. Member of the Apex Advisory Council of ASSOCHAM. Dadabhai Naoroji International Award for Excellence & Lifetime Achievement. the Indo-American Society and the Employers’ Federation of India. the IMC Diamond Jubilee Endowment Trust Award in 1998. Kulkarni retire by rotation and. Keshub Mahindra Mr. ASSOCHAM. have offered themselves for re-appointment. being eligible.D. Mahindra was the President of the Bombay Chamber of Commerce and Industr y. University of Pennsylvania. All India Management Association Lifetime Achievement Award for Management in 2003 and the “Lakshya Business Visionary Award 2006” instituted by NITIE and Indian Business School (IBS) Kolkata Lifetime Achievement Award presented by The Institute of Chartered Financial Analysts of India (ICFAI) in 2007. Mahindra is associated with several committees. K. including the Chevalier De La Legion D’honneur. Directors seeking appointment/ Management. Tech Mahindra Foundation and Kema Services (International) Private Limited. Mr. Mr. the Businessman of the Year 1989 of Business India Award. Mr. Mahindra Ugine Steel Company Limited. Dr. A. New Delhi. The Bombay Dyeing & Manufacturing Company Limited. Keshub Mahindra. re-appointment Mr. Ganguly and Mr.148 Ordinary (Equity) Shares in the Company.

and served several governments and multilateral institutions on public policy. 3. 4. Phil in Economics from Nuffield College. he was with McKinsey & Company (“McKinsey”). India in 1965. He worked globally with corporate clients in several industries on strategy and organisational issues. Sr. Anupam Puri is a Member of the following Board Committees: Name of the Committee Audit Committee Compensation Committee Nomination Committee Strategy Committee Board Governance and Remuneration Committee Audit Sub-Committee Position held Member Member Chairman Member Member Chairman 41 . 3. Mr. Anupam Puri Mr. Oxford University in 1969. Name of the Company Mahindra & Mahindra Limited Name of the Committee Share Transfer and Shareholders/Investors Grievance Committee Loans & Investment Committee Remuneration/ Compensation Committee Compensation Committee Remuneration Committee Position held Chairman 2. Reddy’s Laboratories Limited Dr. 1. Name of the Companies/Bank 1. Oxford University in 1967 and a BA in Economics from Delhi University. Dr. Mr. Anupam Puri holds 40. and was an elected member of the Board. 5. No.Mr. Mahindra & Mahindra Limited Mahindra & Mahindra Limited Chairman Member 4. Puri also ser ves on the Boards of Dr. Reddy’s Laboratories Limited Dr. Puri spearheaded the development of McKinsey’s India practice.000 Ordinary (Equity) Shares in the Company. Reddy’s Laboratories Limited Dr. 6. Mr. Reddy’s Laboratories Limited. a MA in Economics from Balliol College. Housing Development Finance Corporation Limited The Bombay Dyeing & Manufacturing Company Limited Chairman Chairman Mr. Mr. Keshub Mahindra is a Member of the following Board Committees: Sr. Reddy’s Laboratories Limited ICICI Bank Limited Tech Mahindra Limited Mr. No. 2. Anupam Puri was appointed to the Board of the Company in 2001. oversaw the Asian and Latin American offices. 5. From 1970 to 2000. ICICI Bank Limited and Tech Mahindra Limited. He is currently a Special Adviser for General Atlantic Partners. Puri did an M.

3. USA.M. A. Wipro Limited. Ganguly’s principal professional career spanned 35 years with Unilever Plc/N. A. 7. Dr.Dr. since November. from the University of Illinois. An L. Dr. (Master of Laws) from the University of Bombay. R.S. degrees from the University of Illinois. 5. No.D. Kulkarni Mr. Ganguly graduated with distinction from the Bombay University and has obtained the M..L. Ganguly is currently the Chairman of Firstsource Solutions Limited and a Director on the Central Board of the Reserve Bank of India. Dr. R. 2. Over the years. Ganguly has been a member of several government committees. ABP Private Limited. A.000 Ordinary (Equity) Shares in the Company. Dr. Kulkarni has been a Director of the Company since 1997. Dr. S. K. Dr. S. S. Ganguly is a Member of the following Board Committees: Position held Chairman Chairman Member Chairman Chairman Member Name of the Committee Research & Development Committee Compensation and Board Governance Committee Audit Committee Remuneration Committee Corporate Governance Committee Audit Committee of BFS Board of Financial Supervision (BFS) Member Mr. 4. he is an Advocate and a Solicitor. Dr. Ganguly is Director of ICICI Knowledge Park Limited. 6. More recently. Ganguly is a Member of the Advisory Board of Microsoft Corporation (India) Private Limited and Advisory Director on Blackstone’s India Advisory Board. Ganguly holds 40. Name of the Companies/ Bank Mahindra & Mahindra Limited Firstsource Solutions Limited Tata AIG Life Insurance Company Limited Tata AIG Life Insurance Company Limited Wipro Limited Reserve Bank of India Reserve Bank of India been appointed a member of the National Knowledge Commission to the Prime Minister. Dr. Ganguly was awarded the CBE (Hon) by the United Kingdom. A. and is all India Partner in Khaitan & Co. Hemogenomics Private Limited and Tata AIG Life Insurance Company Limited. 2000. Ganguly is also the recipient of the International Alumni Award for Exceptional Achievement for the academic year 2003-04. 1. In 2006. S. Dr. including the Science Advisory Committee to the Prime Minister of India. Ganguly was appointed to the Board of the Company in 1997.V. Advocates & 42 . and Ph. Dr. K. He is presently a member of the Prime Minister’s Council on Trade and Industry as well as the Investment Commission. Ganguly Dr. he has Sr.

Revertex India Private Limited. was a partner of another leading firm for 26 years. 5. Mr. joint ventures. 6. Mr. Shamrao Vithal Co-operative Bank Limited and Entertainment Network (India) Limited. Mr.788 Ordinary (Equity) Shares in the Company. No. Kulkarni has been in legal practice for about 37 years and prior to joining Khaitan & Co. Kulkarni has vast and hands on experience in the legal field. Mumbai. He is also on the Advisory Board as also on the Faculty of the Post Graduate Diploma Course in Securities Law at the Government Law College. Kulkarni holds 38. capital markets and project finance for infrastructure projects. Kulkarni is a Member of the following Board Committees: Name of the Committee Audit Committee Position held Member Member Share Transfer and Shareholders/Investors Grievance Committee Loans & Investment Committee Audit Committee Shareholders’ / Investors Grievance Committee Audit Committee Shareholders’ / Investors Grievance Committee Remuneration Committee Audit Committee 3. Mr. R. 9. Mr. Mr. Associated Polymers Limited. 7. Beck India Limited. Mahindra & Mahindra Limited Beck India Limited Beck India Limited Caprihans India Limited Caprihans India Limited Caprihans India Limited Entertainment Network (India) Limited Member Chairman Member Chairman Member Member Member E. 8. K. K. 4. R. Name of the Companies Mahindra & Mahindra Limited Mahindra & Mahindra Limited in India. 2. Infrastructure privatisation and reforms. These Codes have been posted on the Company’s website 43 . Caprihans India Limited. Kulkarni has considerable experience in the fields of mergers and acquisitions. Mr. 1. Kulkarni is Director of Mahindra & Mahindra Contech Limited. one for Board Members and other for Senior Management and Employees of the Company. Kulkarni has participated in National & International conferences and seminars at which he has read papers on foreign direct investment Sr. with particular emphasis on Corporate and Commercial Laws.Solicitors since 2005. Codes of Conduct The Board has laid down two separate Codes of Conduct (Codes). Apart from his indepth knowledge of Companies and related legislation.

M. Remuneration to Non-Executive Directors for the year ended 31st March. 2006 # The Commission is payable to the Nominating Financial Institutions 44 . 2007 The eligible Non-Executive Directors are paid commission upto a maximum of 1% of the net profits of the Company as specifically computed for this purpose.42# * Resigned with effect from 22nd March. Vijayan (Nominee of LIC)** Commission for the year ended 31st March. 2006. S. The Directors are yet to determine the distribution of this amount between themselves on the basis of individual Director’s contribution.96 lakhs has been provided as payable to the eligible Non-Executive Directors in the accounts of the year under review. Anupam Puri Mr.com. B. A commission of Rs. K. distributed amongst the Directors as under: (Rs. etc. guidance.00 8.00 8.www. A. B. V. the qualification of the appointee(s).00 8. This Directors Mr. 2006). The Board/ Committee regularly keeps track of the market trends in terms of compensation levels and practices in relevant industries through participation in structured surveys. K. the current trends in the industry. Remuneration to Directors A.00 8.101. information is used to review the Company’s remuneration policies. their experience. N. M.00 5. paid during the year under review 32. Ganguly Mr. Narayanan Vaghul Dr. past performance and other relevant factors. Remuneration/ Compensation Committee (Committee) considers the performance of the Company. T. Remuneration Policy While deciding on the remuneration for Directors. the Board. Kulkarni Mr. 2005 as Nominee Director of Life Insurance Corporation of India and resigned with effect from 29th May. Keshub Mahindra Mr.22 lakhs (provided in the accounts for the year ended 31st March. Deepak S.00 8. 2006 ** Appointed with effect from 28th July. All Board Members and Senior Management Personnel have affirmed compliance with these Codes.mahindra. Godrej Mr. Murugappan Mr.00 7. R.80# 8.00 8. Parekh Mr. S. in lakhs) II. During the year under review. the Non-Executive Directors were paid a commission of Rs. Chanana (Nominee of UTI)* Mr. A declaration signed by the Vice-Chairman & Managing Director to this effect is enclosed at the end of this Report.

M. of Ordinary (Equity) Shares held as on 31st March.10. 2006 can be exercised in three tranches over a period of five years from the date of vesting at an Original Exercise Price of Rs.50 No. N. Narayanan Vaghul Dr.30 1.148 46. 2006. Anupam Puri * 2. 2007 Remuneration to Whole-time Directors is fixed by the Remuneration/ Compensation Committee and thereafter approved by Shareholders at a General Meeting. M.90 0. 2005 to the NonExecutive Directors which have vested in June.000 Stock Options granted in June.090 80. The Options granted stand augmented by an equal number of Options and the Exercise Price stands reduced to half on account of the 1:1 45 . C. 2007 Mr. (Nominee of LIC)* Mr. K. 2007 alongwith their shareholdings are as under: Directors Sitting Fees for Board and Committee Meetings paid during the year ended 31st March. in lakhs) 1. 35.30 0.788 40.000 for every Meeting of the Board or Committee attended. 1. 2007 (Rs. Sitting Fees for Board Meetings were paid to LIC.20 1.00 0.000 40.80 2.454 per share. The fees paid to Non-Executive Directors for the year ended 31st March.000 Nil 40. 2005. Deepak S. Thomas Mathew T. Keshub Mahindra Mr. R. Details of the Options granted to each of the Directors are given in the Statement attached to Annexure I to the Directors’ Report.60 0. Parekh Mr. A. Kulkarni Mr. Remuneration paid/payable to Managing/ Executive Director(s) (Whole-time Directors) for the year ended 31st March.000 38. S.Non-Executive Directors are also paid a sitting fee of Rs. Ganguly Mr.01. B.000 Appointed as Nominee Director of Life Insurance Corporation of India (LIC) with effect from 29th May. Bonus Issue made in September.000 Stock Options granted to NonExecutive Directors under the Company’s Stock Option Scheme on 6th December. Godrej Mr.000 40. 2001 have been fully exercised by them. Murugappan Mr.10 1.60.

Nanda 45. 2006 $$ Nil Mr. Provident Fund.and tion to allowances Funds* 53. 2007 to 3rd April.66 12. 2007.000 11. 2007 and has been renewed for a further period of five years with effect from 4th April. Your Company has established procedures to periodically place before the Board the risk assessment and minimisation procedures being followed by the Company and steps taken by it to mitigate these risks. * III. 46 .13 Total Contract Period No.19 14. 2012.06 28th August. Anand G. 2008. The Options granted stand augmented by an equal number of Options and the Exercise Price stands reduced to half on account of the 1:1 Bonus Issue made in September. 2002 to 3rd April. These Options can be exercised within five years from the date of vesting of the Options at an Exercise Price of Rs.77 28th August. of Options granted in September. (Rs.27 10. c) The remuneration payable to the Vice-Chairman & Managing Director and the Executive Directors is fixed by the Remuneration/Compensation Committee which is subsequently approved by the Board of Directors and Shareholders.60 107.36 17. K. 2002 to 27th August. 2009 and September. 2012. 2007 @ 144.36 17. Bharat Doshi 45. 2007. 2002 to 27th August. All other components are fixed. Gratuity Paid and Privilege Leave Encashment $ The Options vested in June.77 (Executive Director) 68.47 39. 2006 in each of the Executive Directors can be exercised in three tranches over a period of five years from the date of vesting at an Original Exercise Price of Rs.454 per share. of Options granted in June. 2010 respectively. The approval from the Shareholders is being sought for the same as mentioned in the Notice @@ The Contracts with the Executive Directors expire on 27th August. 2005 $$ These Options would vest in four equal instalments in September. A.66 12.Following is the remuneration paid/payable to the Whole-time Directors during the year ended 31st March.345 Mr. September. 2007 @@ Mr.77 (Executive Director) 68.in lakhs) Directors Salary ComCompany’s Perquisites mission Contribu. 2007 to 27th August. The approval from the Shareholders is being sought for the same as mentioned in the Notice Notes: a) Notice period applicable to each of the Whole-time Directors – six months.000 11. 2007 @@ 144. Risk Management Your Company has a well-defined risk management framework in place. 2007 and are being renewed for a further period of five years with effect from 28th August.98 10.345 Aggregate of the Company’s contributions to Superannuation Fund. September.39 4th April. b) Commission is the only component of remuneration that is performance-linked. 2005 $ Nil No. The risk management framework adopted by the Company is discussed in detail in the Management Discussion and Analysis Chapter of this Annual Report.616 per share @ The Contract with the Vice-Chairman & Managing Director expired on 3rd April. Mahindra (Vice-Chairman & Managing Director) 214.

Vaghul is the Chairman of the Committee. M. Kulkarni. Mr. 2006). It is also empowered to review Financial Statements and investments of unlisted subsidiary companies. the Committee can obtain external professional advice whenever required. Murugappan are the other Members of the Committee. N. The Committee acts as a link between the Statutory and the Internal Auditors and the Board of Directors of the Company. N. taking into account the individual’s performance as well as that of the Company. Keshub Mahindra Mr. N. The attendance at the Meetings is as follows: Members Number of Meetings attended 3 3 2 3 Mr. M. Mr. Keshub Mahindra. the Committee also decides on the commission of the Directors and/or other incentives payable. All the Members of the Committee possess strong accounting and financial management knowledge. Mr. The Committee comprises of 47 . M. B. Remuneration/Compensation Committee The role of the Remuneration/Compensation Committee is to review market practices and to decide on remuneration packages applicable to the Vice-Chairman & Managing Director. M. R. Godrej and Mr.IV. Murugappan B. Committees of the Board A. During the course of its review. The Committee has formulated and administers the Mahindra & Mahindra Limited Employees’ Stock Option Scheme and also attends to such other matters as may be prescribed from time to time. Mr. the Executive Directors and Senior Executives of the Company. Godrej and Mr. Godrej Mr. The Audit Committee This Committee comprises solely of Independent Directors. Deepak S. suggestions and other related matters. Three Meetings were held during the year. B. Management Discussion & Analysis. M. The Company Secretary is the Secretary to the Committee. Mr. Besides having access to all the required infor mation from within the Company. Murugappan (appointed with effect from 29th May. The Committee is empowered to inter alia review the remuneration payable to the Statutory Auditors and to recommend a change in Auditors. The terms of reference of this Committee are very wide. if felt necessary. M. N. K. N. Audit Committee basis. review reports of the Statutory and the Internal Auditors and meet with them to discuss their findings. It is authorised to select and establish accounting policies. B. material individual transactions with related parties not in normal course of business or which are not on an arm’s length Mr. Parekh (Chairman of the Committee). Generally all items listed in Clause 49 II D of the Listing Agreement are covered in the terms of reference. Vaghul (Chairman) Mr.

Mr. Mr. nonreceipt of dividends declared. Chairman of the Board and a NonExecutive Director. Mr. D. K. there are no pending share transfers pertaining to the year under review. R. Narayan Shankar. 2006. Compliance Officer has been appointed as Company Secretary with effect from 26th October. the Executive Directors of the Company. R. As of date. M. With a view to expediting the process of share transfers. N. Deepak S. the Statutory Auditors. Deepak S. which was constituted by the Board in 1998. Keshub Mahindra. Both the Meetings were attended by all its Members. 53 letters/complaints were received from the Shareholders. Parekh (Chairman) Mr. The Committee meets as and when required. Mahindra. A. all of which have been attended to/resolved to date. K. Mr. Godrej Mr.000 Ordinary (Equity) Shares per transfer. Anand G. Kulkarni. The Committee met five times during the year under review and the gap between two Meetings did not exceed four months. Research & Development Committee C. Narayan Shankar. K.has been granted powers as prescribed under Clause 49 II C. Company Secretary of the Company are severally authorised to approve the transfers of not more than 5. provides direction on the R&D mission and strategy and key R&D and technology issues. During the year. Kulkarni Mr. The Committee also reviews and makes recommendations on skills and competencies required and the structure and the process Shareholders/Investors Grievance Committee functions under the Chairmanship of Mr. to deal with matters relating to transfers/ transmissions of shares and monitors redressal of complaints from shareholders relating to transfers. M. K. Share Transfer and Shareholders/ Investors Grievance Committee The Company’s Share Transfer and (a voluntary initiative of the Company) The Research & Development (R&D) Committee. A. The Committee held two Meetings during the year under review. Mr. The attendance at the Meetings is as under: Members Mr. Nanda are also on the Committee. Bharat Doshi and 48 . 2006. The Meetings of the Audit Committee are also attended by the Vice-Chairman & Managing Director. etc. B. The Chairman of the Audit Committee. Chief Internal Auditor and the Company Secretary. Murugappan 5 3 4 Number of Meetings attended 5 Mr. Nanda. Mr. Executive Director as well as Mr. the President-Finance & Legal Affairs. non-receipt of balance-sheet. Parekh was present at the Annual General Meeting of the Company held on 26th July.

that may have potential conflict with the interests of the Company at large. which advises them on procedures to be followed and disclosures to be made. Mr. Subsidiary Companies The revised Clause 49 defines a “material non-listed Indian subsidiary” as an unlisted subsidiary. and cautioning them of the consequences of violations. 49 . M. B. Anand G. N. K. the Company has instituted a comprehensive Code of Conduct for prevention of Insider Trading for its designated employees. Disclosures A. Murugappan are the other Members of the Committee. Mr. V. Mr. Disclosure of transactions with Related Parties During the financial year 2006-07. VI. (a voluntary initiative of the Company) The Committee approves of the making of loans and investment. Mr. Directors or the management. there were no materially significant transactions entered into between the Company and its promoters. Ganguly is the Chairman of the Committee. S. M. E. Bharat Doshi and Mr. Keshub Mahindra is the Chairman of the Committee. The Committee held two Meetings during the year under review. B. Disclosure of Accounting Treatment in Preparation of Financial Statements The Company has followed the Accounting Standards laid down by The Institute of Chartered Accountants of India (ICAI) in preparation of its financial statements. subsidiaries or relatives. Further details of related party transactions are presented in Note Number “30” in Schedule XIV to Annual Accounts of the Annual Report. etc. R. whose turnover or net worth (i. K. Mr. Dr. Bharat Doshi and Mr. Kulkarni. The Code lays down Guidelines. the Company does not have any “material non-listed Indian subsidiary” during the year under review. Mr. borrowing moneys and related aspects of fund management in accordance with the Guidelines prescribed by the Board. Mahindra. of the listed holding company and its subsidiaries in the immediately preceding accounting year. incorporated in India. Code for Prevention of Insider Trading Practices In compliance with SEBI’s Regulations on prevention of insider trading. Anand G. A. Nanda are the other Members of the Committee. Loans & Investment Committee Under this definition. while dealing with shares of the Company. which were well attended.e. A. Mahindra. Mr. C.needed to ensure that the R&D initiatives result in products that are in keeping with the business needs. Godrej. paid up capital and free reser ves) exceeds 20% of the consolidated tur nover or net worth respectively. disinvestment.

2007. The US$ 100 million Zero Coupon Foreign Currency Convertible Bonds (FCCBs) due for redemption in 2009 and US$ 200 million Zero Coupon FCCBs due for redemption in 2011 are both listed at Singapore Exchange Securities Trading Limited. The Company has applied for approval for delisting its shares with The Calcutta Stock Exchange Association Limited and the approval for delisting of the Shares is awaited. 2007 to 30th July. 6.VII. Registered Office Gateway Building. 2007 Half-year ending 30 September. Financial Year of the Company The financial year covers the period from 1st April to 31st March. : Birla Matushri Sabhagar. 2007. Listing of Ordinary (Equity) Shares and Debentures on Stock Exchanges The Company’s Shares are listed on the Stock Exchanges at Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE). Shareholder Information 1.30 p. 2008 Year ending 31st March. 50 . 2008 . Apollo Bunder.400 020. 2007. 2.End July. Mumbai . Financial Reporting for: Quarter ending 30th June.m. and Date of payment of Final Dividend would be on or after 30th July. Date of Dividend Payment Date of payment of Interim Dividend was 29th March. 61st Annual General Meeting Date Time Venue : 30th July. . 2008 Note: The above schedules are indicative.End May. 19. 3.End January. and Dates of Book Closure for Final Dividend will be from 7th July.400 001. 2007. 2007 The Non-convertible Debentures of the Company are listed with NSE and the Company has paid the requisite listing fees in full. 2007 th th Quarter ending 31st December. Sir Vithaldas Thackersey Marg (New Marine Lines). 5. The requisite listing fees have been paid in full to all these Stock Exchanges.End October. Dates of Book Closure/Record Date Record Date for Interim Dividend was 26 March. Mumbai . The Global Depositary Receipts (GDRs) of the Company are listed on the Luxembourg Stock Exchange. 4. 2007 . 2007. both days inclusive. 2007 : 3.

Demat International Security Identification Number in NSDL and CDSL for Equity Shares ISIN .May.Sep.Feb.May.Mar06 06 06 06 06 07 07 07 Last Trading day of the month 0 700 600 500 400 300 200 100 0 51 .Mar06 06 06 06 06 07 07 07 Last Trading day of the month 10000 8000 6000 4000 2000 0 The performance of the Company’s shares relative to the NSE Sensitive Index (S&P CNX Nifty Index) is given in the chart below: M&M on NSE NSE Index 1000 900 800 M&M on NSE 4500 4000 3500 3000 2500 2000 1500 1000 500 Apr.Jan.Oct. Stock Performance The performance of the Company’s shares relative to the BSE Sensitive Index is given in the chart below: M&M on BSE BSE Index 1000 900 800 M&M on BSE 16000 14000 12000 BSE Index NSE Index 700 600 500 400 300 200 100 0 Apr.Feb.Jun06 06 06 Jul06 Aug.Jun06 06 06 Jul06 Aug.Nov.INE101A01018 8.Oct. Stock Code 1. National Stock Exchange of India Limited (NSE): M&M 3.Sep.Dec.7. Bombay Stock Exchange Limited (BSE): 500520 2.Dec.Jan.Nov.

400 099.30 14.00 National Stock Exchange of India Limited High Rs.10 873.400 021.85 17.00 674.98 12. 2007 March.00 635.00 795. Telephone No.10 757.95 1002.00 Low Rs. 2006 July.50 16.10 610.00 694.77 16.90 688.: +91-22-28215168 Fax: +91-22-28375646 email: sharepro@vsnl.11 19.89 18.80 11.65 494.66 14.00 682.00 872.00 1001.15 745. 665.75 806.00 638.50 14.85 631.40 852. Telephone No. 2006 August.78 12.19 11.05 643.90 530.60 556.07 12.25 13. 2007 February.30 GDRs Luxembourg Stock Exchange* High US $* 14.00 630.75 817.35 758.00 495.75 817.9.35 915.60 693.28 Low US $* 13. 2006 December.46 21.00 488.00 950.00 672.26 15. Registrar and Transfer Agents Sharepro Services (India) Private Limited Unit: Mahindra & Mahindra Limited Satam Estate.70 853. 2006 June.00 909.50 523.: +91-22-22881569 Fax: +91-22-22825484 665. Raheja Centre. 2006 January. 2007 * Based on closing prices 10. 3rd Floor. Mumbai . Mumbai . Free Press Journal Road. 2006 October.00 723.48 22. 2006 May. Chakala. 2006 September.65 456.00 954.57 13. Nariman Point. Cardinal Gracious Road. Andheri (East).00 Low Rs.54 16. April. 559.40 672.com The Registrar and Transfer Agents also have an office at: 912.90 52 .60 744.00 750.35 19. Above Bank of Baroda. 2006 November.00 609.00 719. Stock Price Data Equity Shares Bombay Stock Exchange Limited High Rs.72 15.80 19.00 806. 537.10 573.

8.21. 12.000 Equity Shares per transfer.26. 2007 Sr.28.10 3.425 1. Executive Director as well as Mr. 2007 Number of Shares held 1 to 500 501 to 1000 1001 to 5000 5001 to 10000 10001 and above Total Shareholding Pattern as on 31st March.00 Number of Shareholders 1. Nanda.05 2.84.902 27. 7. Financial Institutions.39 1. 1.71.78.368 61.71. Mr. 5.00 * FIIs/FFIs/FCs does not include shareholding aggregating 117.68.265 % of Shareholding 8.50 lakhs Shares representing 4. Distribution of shareholding as on 31st March.265 Percentage 22.969 391 326 85 205 1.26. 3. provided the documents are valid and complete in all respects.783 7. Insurance Companies.527 2.32.91 7.25 0.533 1.06. The Share Transfer and Shareholders/Investors Grievance Committee meets as and when required to consider the other transfer proposals and attend to shareholder grievances. Category of Shareholders Promoters and Promoter Group Mutual Funds Banks.61.75.406 24.50 84.40 10.71.57. 4. Shares sent for transfer in physical form are registered and returned within a period of thirty days from the date of receipt of the documents.796 74.51.51. State Government FIIs/FFIs/FCs* Private Corporate Bodies Indian Public NRIs/OCBs Bank of New York (for GDR holders) Grand Total Total Holdings 5.87.05. Narayan Shankar. A.79 32.11.596 24.93.39 15.35 5. No.90.717 3.01 100.73. Company Secretary of the Company are severally authorised to approve the transfers of not more than 5.793 20. 2.53.53.96 100.27. Share Transfer System Trading in Ordinary (Equity) Shares of the Company through recognized Stock Exchanges is permitted only in dematerialised form. With a view to expediting the process of share transfers.406 1.79% of the paid-up share capital of the Company held by a FII as the same is included under the category of Promoters and Promoter Group 53 . K.71.93.90 5.976 Number of Shares held 2.278 22. 6.32.

Outstanding GDRs/ADRs/Warrants or any Convertible Instruments.47.10% and the stock is highly liquid.05 per Share was adjusted to Rs.00. FCCBs amounting to US$ 27. Nagpur. were at the option of the Bondholders convertible into around 68. Till date. may at the option of the Bondholder.000 have been converted into 1. The market lot of the share is one share.00.035. 2009.323.516 Equity Shares/GDRs and as of date FCCBs amounting to US$ 18. Rudrapur. Since the underlying st initial conversion price of Rs. 2000 Zero Coupon Convertible Bonds (due 2011) of US$ 1.647.61. Consequent to the issue of Bonus Equity Shares by the Company in the ratio of 1:1 in September.37. no conversion of any Bonds have taken place.70.000 were converted into 44.596 GDRs were outstanding as at 31 March. Dematerialisation of Shares 97. 14. Nashik. 2007. 2004.922. Conversion date and likely impact on equity 1. be converted into around 96. 2005 resulting into an increase in the number of Equity Shares underlying FCCBs to around 1. as the trading in the Equity Shares of the Company is permitted only in dematerialized form. 2006 and 7th March.69.35. 1.00.24.52 per Share with effect from 3 rd September.913 Equity Shares/GDRs. Non-Promoters’ holding is 77. During the year. 15.911 Equity Shares/GDRs (each GDR representing one Equity Share of the Company) at an initial conversion price of Rs. FCCBs aggregating US$ 3.000 each aggregating US$ 200 million issued in April. As at 31st March.00. 2011.000 convertible into around 2. Ordinary (Equity) Shares represented by GDRs have been allotted in full. 2007.647.000 Zero Coupon Convertible Bonds (due 2009) of US$ 1000 each (FCCBs) aggregating US$ 100 million issued in May.548 Equity Shares/GDRs were outstanding.70.81% of the paid-up Equity Share Capital is held in a dematerialised form with National Securities Depository Limited and Central Depository Services (India) Limited as on 31 st March.04 at any time between 7 th May. 2006.13. Subsequent to 31st March. 2007. 2007. 2005.00.90. the outstanding GDRs have no impact on the Equity of the Company. the 54 .032 Equity Shares/GDRs are outstanding.05 per Share at any time between 7th June.156 Equity Shares/GDRs at an initial conversion price of Rs. Igatpuri. 2004 and 8th April. Plant Locations The Company’s manufacturing facilities are located at Kandivli. FCCBs aggregating US$ 9.25.71. Jaipur.000 convertible into around 3. Zaheerabad.23. Haridwar and Pune.

Bhosale Marg. Andheri (East). Chakala.shankar@mahindra. Telephone No.com The Company can also be visited at its website: http://www. 2.400 018.com on all matters relating to transfer/ dematerialisation of shares. Above Bank of Baroda. the Compliance Officer & Company Secretary can be contacted at : Mahindra Towers. 5th Floor.mahindra. Nanda. Mr.400 099. Special Resolutions passed Allotment of further shares to Mahindra & Mahindra Employees’ Stock Option Trust.16. 1.: +91-22-28215168 Fax: +91-22-28375646 email: sharepro@vsnl. 3rd Floor. For all investor related matters. Address for correspondence Shareholders may correspond with the Registrar and Transfer Agents at: Sharepro Services (India) Private Limited Unit : Mahindra & Mahindra Limited Satam Estate. payment of dividend and any other query relating to shares in or debentures of the Company. M.com as an email ID for the purpose of registering complaints and the same has been displayed on the Company’s website. Details of General Meetings and Special Resolutions passed Annual General Meetings held during the past 3 years and the Special Resolutions passed therein: Year 2004 2005 Date 28th July. +91-22-24975074 Fax: +91-22-24900833 email: investors@mahindra. K. Revision in the remuneration payable to Mr.30 p. Worli. OTHER DISCLOSURES 1. The Company has also designated investors@mahindra. Payment of Commission to Non-wholetime Directors including Non-Resident Directors.com VIII.com OR narayan.30 p. 3. A. Telephone No. G. Mumbai . 2004 28th July. Cardinal Gracious Road. Mumbai .m.: +91-22-24905624. Anand G. Vice-Chairman & Managing Director and the two Executive Directors of the Company viz. Shareholders would have to correspond with the respective Depositary Participants for Shares held in demateralised form. Bharat Doshi and Mr. 55 .m. 2005 Time 3. Mahindra. Dr.

in excess of the limits prescribed under section 372A of the Companies Act.Year Date Time Special Resolutions passed 3. No Special Resolution was passed at the AGM. All the Meetings were held at Birla Matushri Sabhagar. 2006 26th July. Approval for commencement of new businesses of the Company.51 56 . Mr. 19. B. 4. 1956 upto an amount of Rs. Approval for increase in limit for holdings by FIIs from 24% to 35% of the paid-up Equity Share Capital of the Company. 2006 Issue of Securities in International / Domestic markets for an amount not exceeding US$ 200 Million.m. Special Resolutions passed 1. etc.m. H. 2007 Time 11. 2006 3. Mumbai acted as a Scrutinizer for conducting the Postal Ballot in a fair and transparent manner. Special Resolution passed Making investments.00 a. Extraordinary General Meeting held during the past 3 years: Year 2004 Date 29th April. Advocate & Solicitor. Sir Vithaldas Thackersey Marg (New Marine Lines).00 a. Alteration of Article 3 in the Articles of Association of the Company.400 020.30 p.m. 5. Details of Special Resolutions passed through Postal Ballot: Date of passing the Special Resolution 5th April. Approval for increase in limit for holdings by FIIs from 35% to 49% of the paid-up Equity Share Capital of the Company. Issue of Securities in International/ Domestic markets for an amount not exceeding US$ 100 million with a right to retain 15% for additional allotment.1500 crores. 2004 Time 11. Mumbai . Wani. Extraordinary General Meeting held subsequent to the year end: Year 2007 Date 20th April. 2. Description % of Votes in favour of the Special Resolution 93.

1500 crores as specified in the Postal Ballot Notice dated 27th April. D. 2007 1. Dr. Practising Company Secretary. 2007. Israni. 2007 4th June. Rs. 2007 Date of Declaration of Result(s) 57 . and/or give guarantee(s). issue and allot Securities and/ or QIP Securities as specified in the Postal Ballot Notice dated 27th April.2000 crores as may be specified in the 12th July. Date of Board Meeting Description Last Date of receiving Postal Ballot Forms 20th April. 2007 Authorising the Board to make loan(s) and/or give guarantee(s) and/or provide security(ies) and/or make investment(s) in excess of the limits prescribed under section 372A of the Companies Act. Authorising the Board to make loan(s). 1956 upto an amount of Rs. Mumbai has been appointed as a Scrutinizer for conducting the above Postal Ballots in a fair and transparent manner. and/or provide security(ies) in excess of the limits prescribed under section 372A of the Companies Act. 1956 upto an amount of Postal Ballot Notice. 2007. 2. S.Subsequent to the year end. 2007 20th July. Authorising the Board to offer. the Board of Directors. The procedure for Postal Ballot is as per section 192A of the Companies Act. 1956 and Rules made thereunder namely Companies (Passing of the Resolution by Postal Ballot) Rules. 28th May. 2007 (proposed) 31st May. 2001. have proposed the following Special Resolutions to be passed through Postal Ballot.

on any matter related to the capital markets.com Presentations are also made to international and national institutional investors and analysts which are also put up on the website of the Company. During the last three years. Compliance requirements with Mandatory The Company has complied with all the mandatory requirements of Clause 49 of the Listing Agreement relating to Corporate Governance.sebiedifar. Audit Qualifications During the period under review. These are not sent individually to the Shareholders. Mumbai. the expenses of which are borne by the Company. The Company continues to adopt best practices to ensure regime of unqualified financial statements. 5.2.mahindra. 6.in 4. c. Remuneration Committee The Company has set up the Re m u n e r a t i o n / C o m p e n s a t i o n Committee long before application of Clause 49. Compliance requirements a. 28th May. there were no instances of non-compliance by the Company and no penalty or strictures were imposed on the Company by the Stock Exchanges or SEBI or any statutory authority.nic. half-yearly and yearly results are published in Business Standard and Sakal which are national and local dailies. there is no audit qualification in the Company’s financial statements. Details of non-compliance etc. 2007 with Non-mandatory 58 . The Company has complied with all the requirements of regulatory authorities. The Chairman is reimbursed all expenses incurred in the performance of his duties. The Management Discussion and Analysis Report The Management Discussion and Analysis Report (MDA) has been attached to the Directors’ Report and forms part of this Annual Report. The Company has not adopted the other nonmandatory requirements as specified in Annexure I D of the Clause 49. Means of Communication The quarterly. The Company also regularly posts information relating to its financial results and shareholding pattern on the SEBI EDIFAR Website at www. 3. The Company’s results and official news releases are displayed on the Company’s website http://www. Office of the Chairman The Company has provided the Chairman (Non-Executive) with a fullfledged office. b.

2007. We state that such compliance is neither an assurance as to the future viability of the company nor the efficiency or effectiveness with which the management has conducted the affairs of the company. The compliance of conditions of Corporate Governance is the responsibility of the management. for the year ended on 31st March. For A. adopted by the company for ensuring the compliance of the conditions of the Corporate Governance. we certify that the company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement. Chartered Accountants R. Mahindra Vice-Chairman & Managing Director Mumbai. 2007 59 . A. Vice-Chairman & Managing Director of Mahindra & Mahindra Limited declare that all the Members of the Board of Directors and Senior Management Personnel have affirmed compliance with the Codes of Conduct for the year ended 31st March. Anand G. Mahindra. 2007. F. It is neither an audit nor an expression of opinion on the financial statements of the company.DECLARATION BY THE MANAGING DIRECTOR UNDER CLAUSE 49 OF THE LISTING AGREEMENT To The Members of Mahindra & Mahindra Limited I. 2007 CERTIFICATE To The Members of Mahindra & Mahindra Limited We have examined the compliance of conditions of Corporate Governance by Mahindra & Mahindra Limited. Ferguson & Co. Our examination was limited to procedures and implementation thereof. as stipulated in Clause 49 of the Listing Agreement of the said company with stock exchanges in India. 28th May. Anand G. In our opinion and to the best of our information and according to the explanations given to us. Banga (Partner) Membership Number: 37915 Mumbai. 28th May.

2005 Book value per share is calculated after reducing Miscellaneous Expenditure not written off and Revaluation Reserve from Net worth.89 6794 109478 17710 11601 145382 156983 130.98 * Book value per share is shown after giving effect to a 1:1 bonus issue in September.29 351028 187117 223746 87848 70089 216880 1755 155810 2006 306471 155445 166909 87874 63797 123235 1805 83718 2005 281044 147488 118979 75983 51153 102820 2438 94140 2004 255927 139160 111115 49970 40048 62476 964 65203 2003 248913 146609 86227 45675 51708 63964 3972 107190 2002 241677 153723 80013 46904 64778 61554 – 119180 2001 223148 148252 71000 55253 63201 52911 22361 79088 2000 185892 123199 82299 51554 46158 68373 15516 84481 1999 161464 109861 81030 43697 59207 80381 9684 133457 1998 142653 101741 65596 51485 51657 72998 5988 115147 Current Liabilities and Provisions 266564 Deferred Tax Liability (Net) Equity Capital Reserves Net Worth 1979 23803 331488 355291 Book Value Per Share (Rupees) *147.46 7778 132924 20325 11601 165902 177503 150.29 11122 175971 18975 11165 187488 198653 174.50 10886 90021 – 11049 190662 201711 166.26 34304 92704 – 11049 195833 206882 165. Expenditure not written off Long-term Borrowings Short-term 7791 4621 205164 14675 23340 267547 290887 *123.56 18526 105074 13790 11601 138801 150402 128. 60 .14 18363 81623 – 10337 123995 134332 122.90 13162 87027 – 10337 139877 150214 134.Financial Position at a Glance (Rupees in lakhs) 2007 Gross Fixed Assets Net Fixed Assets Investments Inventories Debtors Other Current Assets Misc.

61 .04 148025 145024 67115 65390 3582 2004 600123 335287 4323 95543 42087 5159 16520 60333 (2948) – 43819 6350 2615 – 34854 +11779 90. 9820 lakhs Including Income tax on Proposed Dividend/Dividends.00 10.17 77510 76954 71468 67780 7530 Including Proposed Dividend @40% : Rs.93 70639 70548 66211 69362 5802 1998 405265 215135 4906 63983 38344 4758 9929 34858 405 – 32947 7800 – – 25147 +6254 55.Summary of Operations (Rupees in lakhs) 2007 Income @ Materials Direct Indirect Excise Duty (Net) Personnel Interest (Net) @ Depreciation (Net) Other Expenses Exceptional items Extra-ordinary items Profit before tax for the year Tax for the year .93 76983 76437 73222 70571 6682 1999 416697 222739 4307 65364 37729 9384 11198 37163 805 – 28008 5150 – 267 22591 +6311 55.02 117670 117399 50102 49576 2535 2003 459679 250022 3939 78501 38516 8690 16544 49529 (5765) – 19703 1230 3920 – 14553 + 7198 55.00 45.00 12.00 38.28 87088 86890 45183 47028 2900 2002 399675 211723 3173 67644 37471 8267 13938 47621 1729 – 8109 360 (2520) 578 9691 5621 50.31 66256 65338 54524 58006 3297 2001 435290 235858 4893 75537 40063 6216 14009 44337 1522 – 12855 800 – – 12055 +6697 55.00 6.07 148213 147591 87075 85029 4536 2005 780409 460264 5987 105482 46459 (558) 18405 74308 (1355) – 71417 21500 (1350) – 51267 +17196 130.Current Deferred Tax Liability / (Asset) Adj.00 5.00 11. Including CKD packs.00 15. Years Balance profit Dividends Equity Dividend (%) Earnings per Share (Rupees) Vehicles produced ** (Units) Vehicles sold ** (Units) Tractors produced (Units) Tractors sold (Units) @ Interest income netted off in interest expense # + ** 1155802 685192 7884 131065 66615 (6745) 20959 119263 (12198) – 143767 36573 (1564) 1919 106839 #+32473 #115.00 23. pertaining to Prev.46 63146 62927 80261 79237 5057 2000 440918 221023 4550 77324 39683 7463 12327 42606 1252 (358) 35048 8700 – – 26348 +6745 55.15 169557 169679 103847 102531 8725 2006 945143 571377 6824 113650 55257 (1840) 20001 90925 (21001) – 109950 28540 (4300) – 85710 +27819 100.00 4.

02 500 3811 349 4000 250 146 2000 10 6.31 0.3 0.42 0.6 0.75 Debt Equity Ratio 0.04 20 15.) 60 12000 10245 1250 1068 10000 50 45.2 Automotive 60.) 750 5057 513 6000 30 23.0% Others 2.28 0 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 0 0 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 Net Income Profit After Tax Net Segment Revenue F-2007 0.4% 0.1 0.46 0.6% 0.4 0.0 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 62 .15 8327 1000 8000 40 38.7 Farm Equipment 37.5 0.8 0.53 Percentage 0.07 Net Income PAT 6769 857 EPS (Rs.Financial Highlights PAT and Net Income (Rupees Crores) 1500 Earnings Per Share (Rs.

MAHINDRA & MAHINDRA LIMITED ACCOUNTS 63 .

of the profit for the year ended on that date. 2. as well as evaluating the overall financial statement presentation. in our opinion. An audit also includes assessing the accounting principles used and significant estimates made by management. These financial statements are the responsibility of the Company’s management. 3. 1956. 2007 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act. iv. We believe that our audit provides a reasonable basis for our opinion. on the basis of the written representations received from the directors. proper books of account as required by law have been kept by the company so far as appears from our examination of those books. evidence supporting the amounts and disclosures in the financial statements. 2003 (hereinafter referred to as ‘the Order’) issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act. 2007. the balance sheet and the profit and loss account dealt with by this report are in agreement with the books of account. For A. 1956. Our responsibility is to express an opinion on these financial statements based on our audit. As required by the Companies (Auditor’s Report) Order. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. the balance sheet and the profit and loss account dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Companies Act. a statement on the matters specified in paragraphs 4 and 5 of the said Order. We conducted our audit in accordance with the auditing standards generally accepted in India. and (c) in the case of the cash flow statement. 2007 64 . Further to our comments in the Annexure referred to in paragraph 3 above. 1956. 2007. on a test basis. the profit and loss account and also the cash flow statement for the year ended on that date annexed thereto. We have audited the attached balance sheet of Mahindra & Mahindra Limited as at 31st March. of the state of affairs of the company as at 31st March. we report that: i. (b) in the case of the profit and loss account. A. Chartered Accountants ii. in our opinion and to the best of our information and according to the explanations given to us. 2007. Ferguson & Co. vi. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. 1956. R. and taken on record by the Board of Directors. as on 31st March. in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (a) in the case of the balance sheet. v. Banga (Partner) Membership Number: 37915 Mumbai. we enclose in the Annexure. 28th May. of the cash flows for the year ended on that date. the said accounts give the information required by the Companies Act. An audit includes examining. we report that none of the directors is disqualified as on 31st March.MAHINDRA & MAHINDRA LIMITED Auditors’ Report to the members of Mahindra & Mahindra Limited 1. 4. iii. in our opinion. F.

(iv) In our opinion and according to the information and explanations given to us. the parties are repaying the principal amount and paying the interest as stipulated or as rescheduled except in respect of a loan of Rs. firms or other parties covered in the register maintained under Section 301 of the Companies Act.77 lakhs (including loans aggregating Rs. As a matter of prudence. having regard to the explanation that many of the items are of a special nature and their prices cannot be compared with alternative quotations. 772. (c) In respect of loans granted where stipulations have been made. (c) During the year. The maximum amount of loans during the year was Rs. the frequency of verification is at reasonable intervals.77 lakhs which were at call) and the year end balance of loans granted to such companies/parties was Rs. the company has not taken any loan secured or unsecured from companies/parties covered in the register maintained under section 301 of the Companies Act. which are reasonable having regard to the prevailing market prices at the relevant time. In our opinion the frequency of verification is reasonable. 1975. No material discrepancies between book records and the physical inventory were noticed. the company has maintained proper records of inventory and the discrepancies noticed on physical verification between the physical stocks and the book records were not material in relation to the operations of the company. (c) On the basis of our examination of records of inventory. 2. (iii) (a) In our opinion and according to the information and explanations given to us. (b) Physical verification of fixed assets was carried out during the year in accordance with the company’s policy of verifying the assets once in three years. (v) (a) In our opinion and according to the information and explanations given to us. the procedures of physical verification of inventory followed by the management were found reasonable and adequate in relation to the size of the company and the nature of its business. 459. in our opinion. as applicable. According to the information and explanations given to us. the particulars of contracts or arrangements referred to in section 301 of the Companies Act. (d) In our opinion and according to the information and explanations given to us. 4. 1956 and accordingly paragraph 4 (iii) (f) and (g) of the said Order are not applicable. 1956. 1956 and the Companies (Acceptance of Deposits) Rules. the company has granted unsecured loans to five companies/parties covered in the register maintained under section 301 of the Companies Act. prejudicial to the interest of the company. 58AA and any other relevant provisions of the Companies Act. on the company. 1956 have been entered in the register required to be maintained under that section. In our opinion. (e) In our opinion and according to the information and explanations given to us.MAHINDRA & MAHINDRA LIMITED Annexure to the Auditors’ Report (Referred to in paragraph 3 of the Auditors’ Report of even date to the members of Mahindra & Mahindra Limited) (i) (a) The company is maintaining proper records showing full particulars. the company has complied with the provisions of Section 58A. (b) In our opinion and according to the information and explanations given to us. (vii) In our opinion. In respect of stocks lying with third parties. Further. we have neither come across nor have we been informed of any instance of major weaknesses in the aforesaid internal control system. the transactions made in pursuance of such contracts or arrangements and exceeding the value of rupees five lakhs in respect of any party during the year have been made at prices. on the basis of our examination and according to the information and explanations given to us. .712.212. prima facie. with regard to the deposits accepted from the public. there is an adequate internal control system commensurate with the size of the company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. (ii) (a) The inventory of the company has been physically verified by the management during the year and at or after the year end. including quantitative details and unit wise situation of fixed assets. (b) In our opinion and according to the information and explanations given to us. in our opinion. were at call. (b) In our opinion and according to the information and explanations given to us. a substantial portion was physically verified or has been confirmed by third parties during the year or at the year end. a substantial part of fixed assets has not been disposed off by the company.42 lakhs which is at call and has been fully provided for in 65 an earlier year. the company has an internal audit system commensurate with its size and the nature of its business. which. (vi) In our opinion and according to the information and explanations given to us. other than the item referred to in (c) above. interest on the same is not recognised during the year. no order under the aforesaid sections has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal. the rates of interest and other terms and conditions on which loans have been granted to companies. there is no overdue amount of more than rupees one lakh. having regard to the comments in (iv) above.92 lakhs. 1956 are not.

57 1987-2007 1995-2006 66 . 2007 for a period of more than six months from the date they became payable.82 37.upto Commissioner (Appeals) level 3. According to the information and explanations given to us. made a detailed examination of the records with a view to determining whether they are accurate or complete.upto Commissioner level High Court Appellate Authority .upto Commissioner of Income-tax (Appeals) Appellate Authority . the undisputed statutory dues including provident fund.00 1998-1999 Sales .19 18.Tax 80.45 Appellate Authority . the Central Government has not prescribed the maintenance of cost records under Section 209 (1) (d) of the Companies Act. cess and other material statutory dues as applicable have generally been regularly deposited by the company during the year with the appropriate authorities. (b) As at 31st March. sales-tax. employees’ state insurance.Tribunal level Appellate Authority . income-tax.46 2001-2003 2001-2002 Excise Duty Laws Excise Duty 36863.upto Commissioner level Appellate Authority upto Commissioner of Income-tax (Appeals) level Appellate Authority .Tax Laws Income .78 3620.Tribunal level Appellate Authority .MAHINDRA & MAHINDRA LIMITED (viii) We have broadly reviewed the books of account maintained by the company relating to the manufacture of motor vehicles and tractors pursuant to the rules made by the Central Government for the maintenance of cost records under Section 209 (1) (d) of the Companies Act.48 1985-2003 1986-2002 2007 707. 1956 and we are of the opinion that prima facie the prescribed accounts and records have been maintained and are being made up.Tribunal level Appellate Authority .77 1998-2000 Service Tax Laws Service Tax 34. wealth tax. wealth tax. the following are the particulars of dues on account of income-tax.Tax 234.upto Commissioner (Appeals) level Appellate Authority . customs duty. (ix) (a) According to the information and explanations given to us and according to the books and records as produced and examined by us. however. 2007 according to the records of the company and the information and explanations given to us. excise duty. sales-tax.upto Commissioner (Appeals) level Appellate Authority . customs duty. service tax. for any other products of the company.51 1988-2005 Wealth Tax Laws Wealth Tax 30. To the best of our knowledge and according to the information given to us. in our opinion. service tax.Tribunal level Appellate Authority . there are no arrears of outstanding statutory dues as mentioned above as at 31st March. 1956. investor education and protection fund.47 80. excise duty and cess matters that have not been deposited on account of any dispute: Name of the statute Nature Nature of the dues Amount Rs.Tax Laws Sales . We have not.38 266. in lakhs Period to which relates the amount relates Various years covering the period 1997-1999 2003-2004 where Forum where pending Income .

debentures and other securities. (xi) In our opinion and according to the information and explanations given to us. Rs. we have neither come across any instance of significant fraud on or by the company. Ferguson & Co. carried out in accordance with the generally accepted auditing practices in India. (xiii) The provisions of any special statute as specified under paragraph 4 (xiii) of the Order are not applicable to the company. paragraph 4 (xix) of the Order is not applicable to the company. 2007 67 . (xx) The company has not raised any money by public issue during the year. are prejudicial to the interest of the company. F. (xviii) The company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act. the company has not granted any loans and advances on the basis of security by way of pledge of shares. noticed or reported during the year nor have we been informed of such case by the management. in our opinion. the term loans were applied for the purpose for which the loans were obtained. (xiv) In our opinion. the provisions of paragraph 4 (xiv) of the Order are not applicable to the company. the terms and conditions. (xv) According to the information and explanations given to us. securities. as the company has not issued any debentures during the year. 5. (xvi) In our opinion and according to the information and explanations given to us.88 lakhs. (x) The company does not have accumulated losses as at 31st March. (xxi) During the course of our examination of the books and records of the company. debentures and other investments. Chartered Accountants R. the company is not dealing in or trading in shares. (xii) In our opinion and according to the information and explanations given to us. the company has not given any guarantees for loans taken by others from banks or financial institutions. 1956. A.200.MAHINDRA & MAHINDRA LIMITED Out of the above amounts aggregating Rs. 2007 and has not incurred cash losses during the financial year ended on that date and in the immediately preceding financial year. (xvii) Based on the information and explanations given to us and on an overall examination of the balance sheet of the company. (xix) In our opinion and according to the information and explanations given to us. Banga (Partner) Membership Number: 37915 Mumbai. bank or debenture holders during the year. Accordingly.977.09 lakhs have been stayed for recovery by the relevant authorities. 28th May. during the year. the company has not defaulted in repayment of dues to a financial institution. whereof. 41. in our opinion. and according to the information and explanations given to us. there are no funds raised on short term basis which have been used for long term investments. For A.

93 179.......23 233.............22 146.........12 3.. Reserves and Surplus ......................950....85 280... Net Block .31............89.. N...25 5................12 530.............529.44......38.665.......... APPLICATION OF FUNDS : FIXED ASSETS : Gross Block ..19 3....62 883................73 2............082..78.... (d) Other Current Assets .......60 3.96 1.... (b) Provisions ..... LOAN FUNDS : (a) Secured Loans.... DEFERRED TAX LIABILITY (Net) ..67 1....00.......58..........31 Rupees lakhs 2007 Rupees lakhs 2006 Rupees lakhs II.32 1........37 637.69...42......885..520..........14....................... (c) Cash and Bank Balances .......12 498...43 1.....08......48 3.... P.. SOURCES OF FUNDS : SHAREHOLDERS’ FUNDS : Capital ...237..56............... M. CURRENT ASSETS........... I II 238..39.............52 2.................................... 2007 Schedule I..89 730... (e) Loans and Advances ......16..... 28th May...............16..95 III A III B 106.... 2007 } Narayan Shankar Mumbai.................... Chartered Accountants M...............61 1..... Mahindra Directors Bharat Doshi A............54 1.............83 2....37 700........ 2007 68 . Total..........639....11.... K..................74..95 VII A VII B 1.............64..........00 3.............33 697.................62 5....669......510..90........... Banga Partner } Keshub Mahindra Anand G.52.............................749.00..64.34 1.......75.70.. Kulkarni A....56 3........68. MISCELLANEOUS EXPENDITURE (TO THE EXTENT NOT WRITTEN OFF OR ADJUSTED) .... INVESTMENTS ........ Godrej R..52...91 715....88.... (b) Unsecured Loans..65.......60 666...........051.......46 3........................ Puri Thomas Mathew T......208.....07.......96............. S....87.........53 1....27 3..........30.................18. 28th May........62 1....636.. Total..70 878... Vaghul R......35.375......26.76 2............................ .00.......673..... Employee Stock Options Outstanding ..326.40 2.....88....55.59.........60 1.................05... LOANS AND ADVANCES : (a) Inventories .......25.........590..................48.. VIII IV 3.24 839...66 19...........18... K..311........48 18.....09 216......47 1... NET CURRENT ASSETS .....45.67.....84..... Nanda Chairman Vice Chairman & Managing Director Executive Directors Company Secretary Mumbai.. Ferguson & Co.. Less : Depreciation ...... B..21 2.... CAPITAL WORK-IN-PROGRESS .................41..........552................554.........................................748... A.......................................... (b) Sundry Debtors ....52 17................... F..908. .. Murugappan N......................................80.41....05....84 878.........70..23 XIV 2.................. CURRENT LIABILITIES AND PROVISIONS : (a) Current Liabilities ..........229..........03..91 1.....81 1.......939.............. Ganguly A...................70.......31 V VI VI VI VI VI A B C D E NOTES ON ACCOUNTS .208.....939.............. Per our report attached For A.871.............21..MAHINDRA & MAHINDRA LIMITED Balance Sheet as at 31st March..

......41....68............. Vaghul R...15 1.............45 2006 Rupees lakhs 9...80) 666......76...................245...91....988....................76..........20 1............94 XIV 38.....................40 6.................41 34..31 210..........10 365......09 617.....53.. K....22......087.....13 1......................940.....18 890....03... A..... Net Sales ......976......................................49........ 10/.............71 47...853...........47 1.......90 16......50......16) 200....39 (18................................79...........72.......... Profit before taxation .53 1............124.... Chartered Accountants M......53.00............66......14 9............15........... S........49 19.74 43.......................00.. 28th May.... P........................ Deduct : General Reserve ..27........ Diluted ...47 45..65 1......07 34..............................38...... M.....65 1................713..15 8...............00 (43.....929.. Banga Partner } Keshub Mahindra Anand G.......... Ganguly A............18 1.... Personnel ... Balance for 2006-2007 and earlier years carried to Balance Sheet ..83...113.53.................. EARNINGS PER SHARE [Note 26] : (Face value Rs..20 7..............63 121.475...... Profit for the year before prior period adjustments ............................94 5... Other Expenses ......................39 996....84 1...........................77............................ 2007 69 ...............................32 110.............. : Proposed Dividends .....71.40 7.............................. Ferguson & Co....74...............49 285.........................67 2..........79 337..................63 — 1..........68.................... — Deferred tax (Net) [Note 25] .67......27 8........ Mahindra Directors Bharat Doshi A....436.....326.... Net Income .................................50. Godrej X XI XII XIII IX 2007 Rupees lakhs 10........................... K....... Less : Provision for Tax — Current tax (including Fringe Benefit Tax) .................00.......49 996...............10........................07......57...........315...33 (67...........31 10.... N.51....................................49 — 857.10............ B.......315................... Less : Provision for contingencies [Note 10 (b) & (c)] ............... Profit before exceptional items and taxation ..............MAHINDRA & MAHINDRA LIMITED Profit and Loss Account for the year ended 31st March................67........see Directors’ Report .. Profit before provision for contingencies..851.......................00 — — 243.............312...77 1............... Total of Profit and Loss Account balances shown above .............559........36 7....................................87 (15......69 (2....................89..........26..74......................57......................................Traded and Manufactured Goods [Note 11(a)] ..........45 889............00) 857...61.....47 15.........................................................068......03 98..18... Finished and Semi-finished Products . Less : Cost of Manufactured Products capitalised .........74 1.........62 100.....57 11..........58............23 1.......437.09................................... Excise Duty . Depreciation/Amortisation [Note 5(e)(i)] ............ Interest.....462...... Per our report attached For A.....13................099.58 26............. Add : Transferred from Debenture redemption reserve (Net) ........... Murugappan N.......93............... 28th May........................ EXPENDITURE : Raw Materials.................004............................... Income from Operations and Other Income ..........68................40.................... Puri Thomas Mathew T..........94 8...............97..... : Interim Dividend Paid ........15 40....... NOTES ON ACCOUNTS ... Commitment and Finance Charges (Net) .627....21.......491...00 184.....26) 1.................... : Income tax on Interim Dividend Paid .45...................... F............ Add : Exceptional Items [Note 24] ..... Less : Excise Duty on Sales (Net) .........................03.63.......... Balance of Profit for earlier years ............... 2007 } Narayan Shankar Mumbai.....98..........19.............................................05 551.....................318.. 2007 Schedule SALES ................... Prior Period Adjustment (Net of Tax) : [Note 17] ....... exceptional items and taxation ...............475......................05 25..................00....79..... : Income tax on Proposed Dividends .............80.......43) 209...125............. Kulkarni A..93 R........................81...78... Profit for the year ....63.. Nanda Chairman Vice Chairman & Managing Director Executive Directors Company Secretary Mumbai...per share) (Rupees) Basic ....76 78...89 2...........40...................39.............01.......

.....................46............................55 (22.....78) 68.............. Profit on sale of Investments (Net) ..... Unrealised Profit on Exchange (Net) .....31.... CASH FLOW FROM OPERATING ACTIVITIES : Net Profit before exceptional items and taxation .............09 (5............89........01.41) 27......36..61 (8.........................17........................34 (234.......81) (94.......................10........... Investment and Interest Income .......53 (4.......65 Miscellaneous Expenditure (to the extent not written off or adjusted) incurred during the year .........................168.... Cash generated from operations ...................67...65 6..............02.....40......18) 1.49) 1...02) (118..00 365...........27...56) 26.73. Amortisation of Expenses ..62........................ (164.... Trade and other payables ...36..87.81) 972..........58. 2007 Rupees lakhs A............38.......95...... Provision for diminution in the value of long term investments (Net) 209.........49......94...................................817............26 70 .................51 200......91) 26..65 977..... Changes in : Trade and other receivables ....00) (17....06.35.................. Adjustments for : Depreciation/Amortisation ........... Commitment and Finance charges .... NET CASH FROM OPERATING ACTIVITIES .25 (5....... Excess of cost over fair value of current investments (Net) ............. (168.62................... (Profit)/Loss on fixed assets sold/scrapped/written off (Net) .91........71) 686....MAHINDRA & MAHINDRA LIMITED Cash Flow Statement for the year ended 31st March..............315...76................16.........09 — 1..........61 7............63 2............27...................20........31 2007 Rupees lakhs 2006 Rupees lakhs (2........ Inventories ........90........................ Interest....50) 88.....512..................88 Operating Profit before Working Capital changes .......97 (285.....................57.96 1........ Income taxes paid (Net of refunds) ..10) 1........................68......56 197..79..............00) 1............72.....317.63 889..00....64.........57 (75............06 (343.60 2.............52) 19..

... Murugappan N...................93......... Exceptional Items : Sales Proceeds (Net) on sale of Long Term Investments . Puri Thomas Mathew T........44... CASH FLOW FROM INVESTING ACTIVITIES : Purchase of fixed assets .... 28th May......78) 94.......................67) 418......... CASH FLOW FROM FINANCING ACTIVITIES : Proceeds from borrowings .. Commitment and Finance charges paid .........................80..32 (196.........59... F...56... K.............................25..... Inter corporate deposits (Net) .......18 lakhs)] ............... K.....82 (502..............15) 249......... NET CASH USED IN INVESTING ACTIVITIES ................ Repayments of borrowings (including premium on prepayments) .......................... Ganguly A.............................86 (140....... Kulkarni A...............99 (27......46 (4...................................15....................................... Nanda Chairman Vice Chairman & Managing Director Executive Directors Company Secretary Mumbai............................85 636.39........ Banga Partner } Keshub Mahindra Anand G......... Closing Balance ...07....... NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS ...... Interest received ...... Mahindra Directors Bharat Doshi A...29.68 R.... S....64 (171........57 725.73) (27............................ Vaghul R....................75.48.63....70) 2006 Rupees lakhs (483..15...... NET CASH FROM/(USED IN) FINANCING ACTIVITIES .20) 4.......361...............25 1..... A....77 lakhs (2006 : Rs.20) (294....... CASH AND CASH EQUIVALENTS [Note 1] : Opening Balance ..... 2115... Per our report attached For A............... Ferguson & Co..62..09...38 (9.........49.......... Interest. 2007 71 ..26....78) 187.... Godrej 725...........07....................... See Notes attached.......80 80.....10) 142. 2007 } Narayan Shankar Mumbai....21) 19.......35.. Dividends received .......078.........47.MAHINDRA & MAHINDRA LIMITED Cash Flow Statement (Contd.68........... M.....46....80) (504.....01 37.87................ Purchase of investments .. P..) 2007 Rupees lakhs B..................62..........65........... B...........25 1.....77.....267..74 (149...................78.......07) (27..........38.....16................. C................... 6002.......19..790.......55. N.............. 28th May......................32 (950.. Chartered Accountants M....24 120...... Sale of fixed assets ............ Sale of investments ....................652.13) 8.81) (89.....51) 22...46...........89 630.. Dividends paid [including income tax on dividends Rs...............................03 55...........309....22...........

.70 1...25 2 During the year. 9584..... 2007 2007 Rupees lakhs 1 Cash and bank balances ......00 3 During the year...07....... * lakh.....71.15..................30..............78... the Company has consolidated its business interest in Stokes Group Limited by swapping the shares held by the Company in Stokes Group Limited for shares of Mahindra Stokes Holding Company Limited..15.. 5... 500.. Mahindra Forging Overseas Limited Rs.19 35..........35) 725...00 lakhs............ has acquired the following subsidiaries a) b) c) d) DGP Hinoday Industries Limited Rs.32 lakhs.. 4 72 ..60 (5.....361......... 1.... Previous year’s figures have been regrouped/restated wherever necessary.... * denotes amounts less than Rs...... * lakh.....89 2006 Rupees lakhs 730... This being a non cash transaction does not form part of Cash Flow.MAHINDRA & MAHINDRA LIMITED Notes to the Cash Flow Statement for the year ended 31st March.......326.. Mahindra Forging Mauritius Limited Rs... Unrealised (Gain)/Loss on foreign currency cash and cash equivalents Total cash and cash equivalents .. Mahindra Stokes Holding Company Rs.. the Company.....

......100 each ..45.....47.000 Ordinary (Equity) Shares of Rs..08 lakhs (2006 : Rs.96 2007 Rupees lakhs 11.00...90.....50..MAHINDRA & MAHINDRA LIMITED SCHEDULE I Share Capital [Note 2] : Authorised : 27..14 7....24.....86 238.. 11000..........14 240.52 604...93 876...52 347..........46 633.12..558 (2006 ....66.34 129........43..12..71.........68.09 — — — — 258.. Refer Note 17.......93 lakhs).........85 — — 148....06 98..98 2..768) Ordinary (Equity) Shares of Rs. Add : Bonus shares issued to ESOP Trust but not alloted to employees [Note 3(b)] ...88.....82..37...12..... Adjusted : Issued and Subscribed Share Capital ..50.. Total.00 300..89 15......21 18.08....00 2006 Rupees lakhs 275..98 12.27 Deductions Rupees lakhs — — 163.. 5 6 Debenture Redemption Reserve ....09....00 lakhs (2006 : Rs..50..89+ 8.33.10 each fully paid up ..52 450...00..75.......40 13.......94 3 4 Revaluation Reserve [Note 3(a)(ii)] ..64....13 240.....98...50..61 lakhs) 73 .39.......20...18 1...03 1....22.35• 116.85 — — 110.48 13..........57 2......16 — 80...03 1..186......82...75......97. 10 each fully paid up issued to ESOP Trust but not allotted to employees ..... Utilised for issue of Bonus Shares Transfer to Profit and Loss Account net of charge created during the year Rs....78....93 484..01.....00.00 245....57.45 1... Less : 73..20* * 43.87 39.36. 25..... 22......57.........94.00! — 3.. General Reserve ........... ! • + * Additions Rupees lakhs — — 148.....82.37. Investment Fluctuation Reserve [Note 28] ...38.22...........50....08 11....10........51 116....07. 331..37.98 16........24 497.33.21...50..11 1.000 Unclassified Shares of Rs.311.75.80 162...37.......19 516...93 2.....98) 47.....53.......82 39.......24 17.00.93 21.33.22..06 80.86....74..........97.42.98........20..67..18 233.00 25.. 10000..198.. Issued and Subscribed : 24.....62.....13 245.....00....94......35 7 Balance for 2006-2007 and earlier years as per Profit and Loss Account ....82.....00 270........67 16...........73 497.. 2006 Rupees lakhs 11........00! 100... Securities Premium Account [Note 3(a)(i)] ......08 502.03 62....198...09 — 608..04.....30..78.59 (50...475.....75.00.......... 4104.74 604..125.........36 7.....00.09 637.26 50......08 516..13....00..75.13..08 11...82.. 10 each ..........03..........05 50.91..........37....90.18 620.....00..673.00 103.00 300...52 347..93 3....94... Less : Premium on shares issued to ESOP Trust but not allotted to employees [Note 3(b)] .90.....87 17..47 3..67 608........58.40 SCHEDULE II Reserves and Surplus : 1 2 Capital Reserve .........24 171.....95 18........00......46... Total.....11....00.....09 110......352) Ordinary (Equity) Shares of Rs..39* * 10.46 14.01..00.00 25.98 3..31 150.... Transfer from Profit and Loss Account Rs.56 2.09 3..265 (2006 .......31.00 lakhs) Adjustment on adoption of Accounting Standard 15 (revised 2005) ‘Employee Benefits’ (Net of Tax of Rs..69.......00.82. 2007 Rupees lakhs 275.09 620.....31 12..

MAHINDRA & MAHINDRA LIMITED

SCHEDULE III
Rupees lakhs Loan Funds [Note 4] : (A) Secured : (1) Debentures/Bonds ............................................................................. (2) Foreign Currency Loans from Banks ................................................. (3) Loans and Advances on cash credit account from Banks ............... 5,50.67 35,25.36 65,89.31 106,65.34 90,50.67 92,40.48 33,76.45 216,67.60 2007 Rupees lakhs 2006 Rupees lakhs

(B) Unsecured : (1) Fixed Deposits ................................................................................... (2) Short-term Loans : From Banks ....................................................................................... From Companies ............................................................................... 8,02.87 — 8,02.87 (3) Other Loans : (a) From Financial Institutions .......................................................... (b) Foreign Currency Loan from Banks ............................................ (c) Zero Coupon Convertible Bonds ................................................ (d) From Others [including interest accrued and due Rs. 2.03 lakhs (2006 : Rs. 2.03 lakhs)] .............................................................. 326,66.85 262,62.91 879,41.40 270,32.99 175,85.91 157,41.00 3,96.15 5.00 4,01.15 3,98.94 8,43.06

48,62.35 1,517,33.51 1,529,35.32

50,66.51 654,26.41 666,70.62 883,38.22

Total........

1,636,00.66

74

MAHINDRA & MAHINDRA LIMITED

SCHEDULE IV
Fixed Assets [Note 5] :
Description of Assets Cost/ Professional valuation as at 31st March, 2006 Additions and adjustments during the year Deductions and adjustments during the year Cost/Professional valuation as at 31st March, 2007 Depreciation/Amortisation to 31st March, 2006 Deprecia- Deductions tion/ and Amoradjusttisation ments for 2006- of Depre2007 ciation/ Amortisation Rupees lakhs Rupees lakhs Depreciation/ Amortisation to 31st March, 2007 Net Balance as at 31st March, 2007 Net Balance as at 31st March, 2006

Rupees lakhs

Rupees lakhs

Rupees lakhs

Rupees lakhs

Rupees lakhs

Rupees lakhs

Rupees lakhs

Rupees lakhs

Land - Freehold ........................

40,61.28

3,16.37

5.08

43,72.57

43,72.57

40,61.28

Land - Leasehold ......................

55,36.30

10,83.92

66,20.22

1,04.13

68.08

1,72.21

64,48.01

54,32.17

Buildings ....................................

375,41.23

94,04.85

4,25.36

465,20.72

96,13.10

11,03.83

1,32.31

105,84.62

359,36.10

279,28.13

Plant and Machinery .................

2,236,41.51

262,60.61

80,73.76 2,418,28.36 1,336,52.41

170,10.90

70,38.32

1,436,24.99

982,03.37

899,89.10

Furniture and Fittings ................

71,52.25

12,37.43

3,23.06

80,66.62

32,79.26

5,02.38

2,20.10

35,61.54

45,05.08

38,72.99

Vehicles, Cycles, etc. ................

74,60.46

23,19.81

10,74.48

87,05.79

30,46.55

10,90.72

7,28.84

34,08.43

52,97.36

44,13.91

Development Expenditure .........

26,27.63

22,84.21

49,11.84

9,95.89

6,16.07

16,11.96

32,99.88

16,31.74

Software Expenditure ................

5,31.88

14,10.47

19,42.35

3,35.27

6,12.60

9,47.87

9,94.48

1,96.61

Total........ 2,885,52.54 2,699,71.62

443,17.67 226,10.07

99,01.74 3,229,68.47 1,510,26.61 40,29.15 2,885,52.54 1,335,56.39

210,04.58 200,46.91

81,19.57 25,76.69

1,639,11.62 1,590,56.85 1,375,25.93 1,510,26.61 1,375,25.93

75

MAHINDRA & MAHINDRA LIMITED

SCHEDULE V
Investments (At Cost, unless otherwise specified) :
Note Face Value Per Unit Rupees Shares (Non-trade and fully paid-up unless otherwise specified) : Unquoted : (a) In Subsidiary Companies : (i) Equity Shares : Mahindra Engineering & Chemical Products Limited .......................... Mahindra Intertrade Limited [including 1,50,00,000 shares partly paid-up Rs. 3 per share] ........................................................... Mahindra Steel Service Centre Limited ............................................... Mahindra Holdings & Finance Limited ................................................. Mahindra USA Incorporated ................................................................ Mahindra Gujarat Tractor Limited ........................................................ Mahindra Shubhlabh Services Limited ................................................ Tech Mahindra Limited (transferred to Quoted during the year) ........ Automartindia Limited .......................................................................... Mahindra Logisoft Business Solutions Limited ................................... Mahindra Ashtech Limited ................................................................... Bristlecone Limited ............................................................................... Mahindra & Mahindra South Africa (Proprietary) Limited ................... Mahindra Engineering Design & Development Company Limited .......... Mahindra Overseas Investment Company (Mauritius) Limited ............ Mahindra SAR Transmission Private Limited ...................................... Mahindra Forgings Limited (formerly known as Mahindra Automotive Steels Limited) (transferred to Quoted Others during the year) ........................................................... Mahindra Renault Private Limited ........................................................ Mahindra International Limited ............................................................ Stokes Group Limited .......................................................................... Plexion Technologies (India) Private Limited ....................................... Mahindra Forgings Overseas Limited .................................................. Mahindra Forgings Mauritius Limited .................................................. DGP Hinoday Industries Limited ......................................................... Mahindra Stokes Holding Company Limited ...................................... (ii) 7.25% Cumulative Redeemable Preference Shares : Mahindra Intertrade Limited ................................................................. (iii) 8.50% Cumulative Redeemable Preference Shares : Mahindra Ashtech Limited ................................................................... (iv) 13.10% Non-Cumulative Redeemable Preference Shares : Mahindra Gesco Developers Limited .................................................. (v) Series’A’ Preference Shares: Bristlecone Limited ............................... (vi) Series’B’ Preference Shares: Bristlecone Limited .............................. (vii) 8.00% Non-Cumulative Redeemable Preference Shares : DGP Hinoday Industries Limited ......................................................... 2007 Long Term Rupees lakhs Current Rupees lakhs 2006 Long Term Rupees lakhs Current Rupees lakhs

Number

53,78,235 2,71,00,006 37,23,874 14,66,00,593 4,50,00,000 16,83,218 1,48,33,793 — 2,26,25,348 63,49,500 79,05,000 42,22,250 35,70,000 70,50,000 88,10,000 31,25,739 —

10 10 10 10 US $ 0.10 10 10 2 10 10 10 US $ 0.001 ZAR 1 10 US $ 1 10 10

5,63.88 16,60.00 6,38.38 146,60.06 19,37.89 3,55.00 15,87.31 — 29,21.33 5,77.83 7,90.50 19,26.19 2,49.20 7,05.01 38,45.98 14,62.85

— — — — — — — — — — — — — — — —

5,63.88 16,60.00 6,38.38 121,60.06 19,37.89 19,36.39 19,21.52 205,45.15 14,03.46 11,33.00 10,00.00 19,26.19 2,49.20 7,05.01 2,26.32 14,62.85

— — — — — — — — — — — — — — — —

(c) (1) (c) (2) (b)(c)(3) (c)(17)(18) (b)(c)(4) (c) (5) (c) (6) (b) (c) (7)

8,69,79,225 5,03,75,600 — 45,03,011 4,88,88,001 1,32,30,001 1,49,38,258 82,21,107 18,75,000 11,00,000 — 70,00,000 69,20,000 80,00,000

10 10 GBP£ 0.10 10 EURO 1 EURO 1 10 10 100 100 100 US $ 0.001 US $ 0.001 10

(b)(c)(8) (c) (9) (b) (c) (10) (c) (11) (c) (12) (c)(13)(14)

— 129,47.92 52,34.11 — 37,27.85 286,50.11 78,15.97 95,84.32 40,90.55 18,75.00 11,00.00

— — — — — — — — — — — — — — — —

80,01.01 26,26.50 52,34.11 29,09.77 37,27.85 — — — — 18,75.00 11,00.00 55,00.00 31,71.84 15,12.40 — 851,27.78

— — — — — — — — — — — — — — — —

(c) (15)

— 31,71.84 15,12.40 8,41.73 1,144,33.21

(c) (12)

(b) 312 8,55,646 1,00,000 35,000 75,000 1 7,49,997 50,000 20,000 2,85,000 5,000 2,296 1,78,000 100 10 10 10 10 10 10 10 10 10 10 100 100

In Other Companies : (i) Equity Shares : Montreal Engineering International Limited ......................................... Machinery Manufacturers Corporation Limited ................................... Judricks (India) Private Limited ............................................................ Mahindra & Mahindra Contech Limited ............................................... NTTF Industries Limited ....................................................................... Jayem Automotives Limited ................................................................. Officemartindia.com Limited ................................................................ Indian NGOs.com Private Limited ....................................................... Sixth Sense Studios Private Limited ................................................... Utility Engineers (India) Limited ............................................................ Mahindra Renault Automotive Private Limited .................................... Others ................................................................................................... (ii) 4.00% Tax-free Cumulative Preference Shares : Machinery Manufacturers Corporation Limited ................................... (iii) 11.00% Redeemable Preference Shares : Sixth Sense Studios Private Limited ...................................................

(b)

(c) (16) (a) (b)

0.11 94.25 10.00 3.50 15.00 — 22.52 6.19 2.00 28.50 0.50 — 2.25 1,78.00 3,62.82

— — — — — — — — — — — — — — —

0.11 94.25 10.00 3.50 15.00 — 22.52 6.19 2.00 28.50 — — 2.25 1,78.00 3,62.32

— — — — — — — — — — — — — — —

76

.......000 10.37..28 25..00..09........36 — — 2........370 10 10 In Non-Subsidiary Companies : (i) Equity Shares : + Fairfield Atlas Limited .............51 — Other Investments : Government Securities : Unquoted : 36........01........................36 1...51 — — 20.......000 100 10..29 — — 0.....500 100 1......76...) Investments (At Cost....................000 § Government of India Securities .. 7...31 (3......25 0....36 + § Trade Investment Total face value 77 ....... 9.22..........00.70...51 — 10......00 — 29..39..00.....252 216...................01) 48.......... (b)(c)(15) 10 Mahindra & Mahindra Financial Services Limited ...95 — 218........ 1..................09.............95......... (b) 10 Tech Mahindra Limited (transferred from Unquoted during the year) .........00% Jayem Automotives Limited ..........05.56 2....................24 — — — — (b) 13...51 19.... — — 0..............01. 11.01.....860 1.00.00 4..22.........51..........85.....51 — 42............19% Mahindra & Mahindra Financial Services Limited ..01 129.............000 18 150 1..00 — 0...13.01....75% Tax Free US-64 Bonds .....03 55.MAHINDRA & MAHINDRA LIMITED SCHEDULE V (Contd...00...... 7...72 (1.......... (b) In Other Companies : 0......92.....29 0........39............28 — — 20..28 — 100 7......01....... — 0... Mahindra Forgings Limited (formerly known as Mahindra Automotive Steels Limited transferred from Unquoted Subsidiary during the year) ........36 Less : Excess of cost over fair value of current investments of Government Securities ........ (d) (1) — 4..91.......39 150..... 7.20.....50 17..18 — (c) (19) 128.....56 2............00 15.........50% The East India Clinic Limited ..........31) 1.................79 — — — — — — 42....80.........................................21....01........51 — — 20....22...... (d) (2) (d) (3) — — — — — — 17.....50 42......18 — 1......00........12.......... (e) (1) 0.......000 10................91..........81...01............41.........90..18 — — — 4 200 13 13...........91...........................21..532 5.00...............32................... (b) In Other Companies : 6.........52) 51...29 150..........00...........21..................01..00...56 2.71 (d) (4) Less : Excess of cost over fair value of current investments of Debentures/Bonds .....90% Mahindra & Mahindra Financial Services Limited ...126 5..........56 2.....44 50....36 0.........56 (9......19 — — — 1..........75.25 559......36 1...00....00% Power Finance Corporation Limited (2011) Series XXII ..83 Quoted : — 1..39....29 — — 2...67 8.....00 34..00........ 8......95 191...00. (b)(c)(17)(18) 2007 Long Term Rupees lakhs Current Rupees lakhs 2006 Long Term Rupees lakhs Current Rupees lakhs Number 1.....99% Infrastructure Development Finance Company Limited ..08 — 8. — 17.....59 — — — — 67..21...86...000 100 100 Debentures/Bonds (Non-trade & fully paid-up) : Unquoted : (a) In Subsidiary Companies : 0% Mahindra Holdings & Finance Limited .. unless otherwise specified) : Note Face Value Per Unit Rupees Quoted : (a) In Subsidiary Companies : (i) Equity Shares : 10 Mahindra Gesco Developers Limited .........01 13.........50% Mahindra & Mahindra Financial Services Limited .80.00 — 0...60% Mahindra & Mahindra Financial Services Limited ..54......49.......82....00...33...56 (16..........000 10..21.............................21....21.01 13..73) 1....000 § 6 Years National Savings Certificates ...21.63...........84.21.90.......21...000 Quoted : (a) In Subsidiary Companies : 6.....29 — 0........90.22..06.....28 — — 20..

...000 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 1.13... Kotak Mahindra Mutual Fund .02..... 2007 Long Term Rupees lakhs Current Rupees lakhs 2006 Long Term Rupees lakhs Current Rupees lakhs Number — — — 50.........44.............................00...95 5.....00........02..... Prudential ICICI Mutual Fund ..............Liquidity Manager Plus Daily Dividend .Fixed Maturity Plan 91 Days Series I .......216 — — — — 1..........Plan 2005 Growth .....00 5.........00...... Standard Chartered Mutual Fund .. SBI Mutual Fund .64..00.....19 5...Sweep Cash Option Daily Dividend ......Dual Advantage Fund Plan A Series 1 Institutional Growth . Prudential ICICI Mutual Fund ....... HSBC Mutual Fund .Fixed Maturity 3rd Plan Dividend .....00 5...00.00................Fixed Maturity 2nd Plan Dividend .00............ Standard Chartered Mutual Fund ..........16 5..Fixed Maturity Plan Series 2 (Qtrly Plan -I) Dividend ....25......00 10. Deutsche Mutual Fund ..00 5...................... Principal Mutual Fund .Fixed Maturity Plan Quarterly Series 2 Dividend Payout .........89.00 5.... Principal Mutual Fund ....FMP Yearly Series XXV Dividend ....00 13.......Cash Fund Institutional Premium Daily Dividend ................00.....000 41. Standard Chartered Mutual Fund .149 50. ABN AMRO Mutual Fund ................ Deutsche Mutual Fund .......... SBI Mutual Fund ..Insta Cash Plus Institutional Plan Daily Dividend ....71.. unless otherwise specified) : Note Face Value Per Unit Rupees Units : Unquoted : ABN AMRO Mutual Fund ....00 — 5..00......Fixed Maturity Plan Series 3 (Qtrly Plan -I) Dividend .....92..............83.............00 — 5.....000 1.00...........47 — 15..91 5..................00 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — 15....00...............Fixed Term Series -7-Dividend .... ABN AMRO Mutual Fund ..04...... HDFC Mutual Fund ...........21...00 — 10........... Prudential ICICI Mutual Fund ..Cash Management Fund Call Plan Daily Dividend ........00 5..Super Institutional Daily Dividend ..........................Fixed Maturity Fund ......00 10...Magnum Institutional Income Savings Dividend.00 10.00.. HDFC Mutual Fund .......................000 — — — — — 40.Grindlays Fixed Maturity 19th Plan Dividend .. Reliance Fixed Maturity Fund Quarterly Plan III ...Liquid Institutional Premium Plan Daily Dividend .12..000 — — — 2. Chola Mutual Fund .....02..04 10. Standard Chartered Mutual Fund ...00...00...FMP Monthly Plan Dividend XXVII ..........Cash Fund Institutional Plus Daily Dividend ........... Principal Mutual Fund .....Liquid Plus Institutional Plan Daily Dividend .....11................76 — — — — 10....Cash Management Fund Liquid Option Institutional Premium Plan Daily Dividend ....90........Growth ..06....03 5................07.99 5.. Standard Chartered Mutual Fund ............. Prudential ICICI Mutual Fund ............MAHINDRA & MAHINDRA LIMITED SCHEDULE V (Contd.........00 — 23.....00...........Cash Management Fund Savings Plan Daily Dividend ..Income Fund Growth Plan ...........09 4........00 — — — 21.254 1.49....77 5.00....00......Fixed Maturity Plan 91 Days Dividend Payout ...00 8......Fixed Term Series -8-Dividend ..55 5.....00 9. Principal Mutual Fund ................................856 — — — — — — — 50...........00...Fixed Maturity Plan 91 Days Series III ...26.....57.00.................Money Plus Dividend Option ...... Principal Mutual Fund ...........00 — — — 22...02.....00 10.00...Fixed Term Plan Series 2 Quarterly Plan A Dividend .57 5... HDFC Mutual Fund .............. HSBC Mutual Fund ..89..22...........000 — 10 10 10 10 10 10 10 10 10 10 10 1.....04... HSBC Mutual Fund ...50......... Kotak Mahindra Mutual Fund .......48 — 8....587 — 1.......00.66 5.... DSP Merrill Lynch Mutual Fund .......00...00 8.....00.00 1.000 99.000 10 10 (f) (1) (f) (2) (f) (3) (f) (4) (f) (14) (f) (16) (f) (21) (f) (22) (f) (23) (f) (f) (f) (f) (25) (29) (30) (33) — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — 5.... Sundaram Mutual Fund ....00...........00 — — — — — 4..Fixed Maturity Plan Series 23 Dividend ........ Deutsche Mutual Fund ..30....00 — 14.000 1. JM Financial Mutual Fund ..00..Liquid Plus Institutional Plan Daily Dividend ................00....76........04........03.. HSBC Mutual Fund ...00.02... Birla Mutual Fund ..00....00 10.04 7.......Fixed Maturity Plan Series 19 Dividend .....00 — 5.. Franklin Templeton Fixed Tenure Fund Series V 13 Months Plan Growth .00 10..00.........007 50..........43 (f) (38) (f) (f) (f) (f) (f) (f) (f) (f) (f) (f) (f) (f) (f) (f) (40) (45) (46) (47) (48) (49) (50) (52) (54) (56) (60) (66) (67) (68) (f) (69) (f) (70) (f) (72) (f) (73) (f) (75) (f) (76) (f) (79) (f) (81) (f) (82) (f) (86) (f) (105) (f) (111) (f) (112) (f) (116) (f) (117) (f) (118) (f) (119) (f) (120) (f) (121) (f) (126) 78 ......Fixed Term Plan Series IC Dividend ..Money Fund Super Institutional Daily Dividend .00.........00 9...48..........Multiple Yield Fund .Cash Fund Institutional Plus Daily Dividend ...........00 1..00..............92 5....07 — 2....................00..Fixed Term Plan Series IB Dividend ..02.... Birla Mutual Fund .....57 10.......Fixed Term Series 9 Growth Option ..48 5....00 19.Magnum Debt Fund Series 13 Months Growth Option .......00 13... HDFC Mutual Fund . Standard Chartered Mutual Fund ..Liquid Fund Growth Plan .. Kotak Mahindra Mutual Fund .34.389 — 23......39 5... Standard Chartered Mutual Fund ...00...... HDFC Mutual Fund .....) Investments (At Cost..29 — — — — — — — 5...........89.... Prudential ICICI Mutual Fund ........05 — 5...........39....00...00....00.......00.............FMP 3M March 2006(1) Institutional Plan Dividend .Liquidity Manager Daily Dividend ......81... HDFC Mutual Fund ..... DSP Merrill Lynch Mutual Fund ......038 — — — — — — — — 1...00....FMP 13M March 2006(1) Institutional Plan Growth .... Chola Mutual Fund ...000 — 50.Series II Qtrly Plan QSA Dividend ........ ABN AMRO Mutual Fund ...03....Blended Plan B Institutional Dividend ..........Fixed Maturity Plus Plan III B Growth ..00 5..... DSP Merrill Lynch Mutual Fund .. Kotak Mahindra Mutual Fund . .57 5...00......Grindlays Fixed Maturity 21st Plan Dividend ...Multiple Yield Fund .........50 — — — — — — — — 20.000 — — — 2............ JM Financial Mutual Fund ..00..Series II Dividend Option ...................00 5..............86 24....Flexi Debt Regular Daily Dividend ........00......50 10..........Fixed Maturity Plan Series XVIII –Dividend ..............

00..........00 — 5..............45...58 (1................237.........27 14.............31 9................... § Total Face Value Notes : Face Value Per Unit Rupees (a) 21 74 100 16..............................................00.........47 14..................00.............16 725...........37 2..........116.00......................000 Tata Mutual Fund .............. Less : Excess of cost over fair value of Current Investments (Net) ....Fixed Horizon Fund Series 3 Scheme A – Dividend ......70 165.......00.................68 23.....000 § 15..83.....00 5.... 2 2 (b) 79 ........ 10 Tata Mutual Fund ...........237...00............... State Bank of Hyderabad ...................000 § 35.... Current Rupees lakhs — — — — 5..............241...........669.000 (g) (1) — — — — — — 19..00..60.....52 1......00..............37.49 — 423...............................00.00..................875 — — — 1.....00........................45........51............. 10 UTI Mutual Fund ...70 1..........000 § 10......................................Liquid Super High Investment Fund Daily Dividend ........... * Written off to Re........69..285...............515...000 § —§ 10....00.20 — 9........000 § 25..........12..Money Market Fund Daily Dividend Option .63..............61.......00.... Market Value of Quoted Investments .00.....01.......... 10 UTI Mutual Fund ......83.. 1......... (f) (f) (f) (f) (f) (f) (f) (f) (f) (127) (128) (134) (135) (136) (139) (142) (143) (144) 2007 Long Term Rupees lakhs — — — — — — — — — — Others : Commercial Paper Unquoted : — Export Import Bank of India .........01 Number — — — — 44..............................09 9......83 2006 Long Term Rupees lakhs — — — — — — — — — — Current Rupees lakhs 5.......... State Bank of Patialia ......00......419...... 1.......33.87 4.......................MAHINDRA & MAHINDRA LIMITED SCHEDULE V (Contd................ State Bank of Bikanner & Jaipur ...70.......... 2007 Long Term Rupees 1 1 2006 Long Term Rupees 1 1 Number Total....................... 10 Tata Mutual Fund ............................................00....669..............00........00....854... * Engineering & Metal Works.................................Fixed Maturity Plan QFMP Growth Plan ...030........32......97 552......00...............42 1................02 1...........91 14...................53 18................................45..11...53 (3...............Liquidity Management Fund Daily Dividend ..................08......00.........000 § 30.............70 10........18 33.........32 15... ICICI Bank Limited .... Kotak Mahindra Bank Limited ........37 9................03 28................................................................................88.....13........84.....47......22 Total Cost (Net of amounts written off) of Unquoted Investments ........... ABN AMRO Bank .000 Tata Mutual Fund ............. Tehran .....000 § 10.00...65.......Fixed Horizon Fund Series 5 Scheme A – Dividend ..... (h) (1) (h) (2) (h) (3) (h) (4) (h) (5) (h) (6) (h) (10) (h) (11) (h) (12) (h) (13) — — — — — — — — — — — 1.50.........................00 25..................02.....................30....07 5.................................................000 § Certificate of Deposit Unquoted : State Bank of Travancore ....00 19....667 (Rials) Shares (unquoted) in other companies comprise : * The United Spices Importers Limited (Equity “B” Shares) .... HDFC Bank .........74) 1.................84 9....16 251...........48...............00........670..89...89 383..................15 13..00.................00 164........ unless otherwise specified) : Note Face Value Per Unit Rupees 10 Sundaram Mutual Fund .1 Equity investments in these companies carry certain restrictions on transfer of shares in terms of funds raised by these companies from financial institutions/banks..... Cost of Quoted Investments ...Fixed Maturity Plan YFMP Growth Plan ............00...........00.............83) 2.) Investments (At Cost...84 2..Fixed Term Plan Series 1Feb 06 (100 Days) Dividend Plan ...01...... State Bank of Mysore ...70.......08..20.89....00..27 23..38........................14 — — — 10........94.000 § 15............47......46 — — — — 58..29.....84 1........ Allahabad Bank .........15 — — — — — — — — — — — 4...............77... 10 UTI Mutual Fund ...00 5.....Fixed Maturity Plan QFMP 106/11 Dividend Plan ........25.32 2......23..82......................00......... 10 UTI Mutual Fund ...

.....02 lakhs) were purchased and of face value Rs..60......00 5..41..Dual Advantage Fund Plan A Series 1 Institutional Growth .00 15.052 — 50.... ABN AMRO Mutual Fund .708 57.....00....98.....50.49.09.00.FMP Series 4.........018 96.... Matured Nos.......00....81 15..00....... 10 per share Bonus Shares The following are the movements in Debentures/Bonds during the year : Nos..Fixed Term Plan Series 3 Quarterly Plan G Dividend .000 50...........Cash Manager IP Daily Dividend Reinvestment ........ Rs.51.645* 76....116 1. ABN AMRO Mutual Fund ..116 1.00 Sold Nos...00.970 48.....Fixed Term Plan Series 2 Quarterly Plan B Dividend ....99% — — 100 150 Rs.....000) — — — — (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) (18) (19) * # $ £ € (d) Mahindra Holdings & Finance Limited Mahindra Gujarat Tractor Limited Mahindra Shubhlabh Services Limited Automartindia Limited Mahindra Logisoft Business Solutions Limited Mahindra Ashtech Limited Mahindra Overseas Investment Company (Mauritius) Limited Mahindra Renault Private Limited Stokes Group Limited Mahindra Forgings Overseas Limited Mahindra Forgings Mauritius Limited DGP Hinoday Industries Limited Mahindra Stokes Holding Company Limited Mahindra Stokes Holding Company Limited Mahindra Gesco Developers Limited Mahindra Renault Automotive Private Limited Tech Mahindra Limited Tech Mahindra Limited Mahindra Forgings Limited Subscribed to on a rights basis Consideration other than Cash Conversion of Debentures into Equity Due to Consolidation from Rs........000$ — — 74.00..98..90..........439 50........000 2...... lakhs 14...00..............01 lakhs (2006 : Rs. Nos.07..) Investments (At Cost.. ABN AMRO Mutual Fund .048£ 4...........00..000 24..94....107# — 28...... Birla Mutual Fund .23..54....95..00.....00......36 lakhs (2006 : Rs..00 10.00.....60% 7.....Fixed Term Plan Series 3 Quarterly Plan A Dividend Pay Out ......79.00....12.049 50...01..17.116 1.71.35.00. Birla Mutual Fund .. Nil (2006 : Rs.116 1..00.......44 5.. ABN AMRO Mutual Fund ..... Face value of Rs.Institutional Plus Daily Dividend ........84..88.... Mahindra & Mahindra Financial Services Limited ..... Chola Mutual Fund ......94.. ....47.......... Infrastructure Development Finance Company Limited ..50.....50..000 — 6.000 1... ABN AMRO Mutual Fund .00............41 10...21 20.54....41..09.04..50.37 565...84..08 lakhs (2006 : Rs.........112 2...88..98..98.60.... ABN AMRO Mutual Fund ...98.00.98...00. 2 per share to Rs.14....116 1..80............97.Short Term Fund ... The following are the movements in Units during the year : Acquired Nos....18... 0..808 49...09.... 2..00.. unless otherwise specified) : (c) The following are the movements in Shares during the year : Equity Shares Acquired Sold Preference Shares Acquired/ (Redeemed/Sold) Nos.00.....Cash Fund ...Fixed Term Plan Series 2 Quarterly Plan D Dividend Payout .905 2.000 1.99.. — — — — — — — — — — — 80.....000 80 .....00.000 (f) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17) ABN AMRO Mutual Fund ..80.00 5..000 — 81........40.Dividend Reinvestment .. 3...00% 6.....001 — 1....00.. (Quarterly Plan III) Dividend Payout .......00...000$ — 20 10.............116 1..00 20.MAHINDRA & MAHINDRA LIMITED SCHEDULE V (Contd.144 50.....000 50...05 5..358 50.000 50. ABN AMRO Mutual Fund . ABN AMRO Mutual Fund .......38......000 2......500 — 20..048€ 38. Birla Mutual Fund ...000 — 5..98....444 — Acquired Nos.310# 4.....00.151 96..000 — — 4..80...19..........00. ABN AMRO Mutual Fund ...049 — 50....Flexi Debt Regular Daily Dividend ...67 — 15...........517 1... 0..........225* — 10...708 56......32...00.39................Fixed Maturity Plan Quarterly Series 2 Dividend Payout ..00.30..65.690* — — 61..258 — 50..00.Fixed Term Plan Series 3 Quarterly Plan E Dividend Pay Out ..00... 2.. ABN AMRO Mutual Fund ..00 — Government Securities : (1) Of face value Rs.17... (1) (2) (3) (4) $ (e) Mahindra Holdings & Finance Limited ..00.000 50.39.22...01.00..78....001 — 1.... Birla Mutual Fund .....78...........81 10.. 193 lakhs) were purchased during the year..Long Term Floating Rate Fund Weekly Dividend ..000 1. Mahindra & Mahindra Financial Services Limited .... 0...00..000 1. 0...00 — 5.Cash Fund Institutional Premium Daily Dividend...000 82. — — — — — 25... ABN AMRO Mutual Fund .........53...... 0....06 5..90% 8.Fixed Term Plan Series 2 Quarterly Plan A Dividend .....276 54.. (2) Government of India Securities of the face value Rs..52.Fixed Term Plan Series 3 Quarterly Plan D Dividend Pay Out .00... 1..00.439 50...........81 10.00 lakhs) matured during the year.29 lakhs) were lodged as security deposit..Cash Fund Institutional Plus Daily Dividend ...000 — — (55....... Conversion of Debentures into Equity 0... lakhs Sold Nos.00.44....

.............. HSBC Mutual Fund ...00..60..........40..000 14.... Kotak Mahindra Mutual Fund ..........123 46..00 — — — 368.......................156 70... DSP Merrill Lynch Mutual Fund .14....129 1...98....00..03.....65..........700 16....968 11..........20..........28....00.....935 1..871 45.....07................08.... Principal Mutual Fund .......61 10.000 1.00.91 10..00.. Kotak Mahindra Mutual Fund .. HDFC Mutual Fund ..01..Monthly Dividend ....000 1........65..................000 12......00.......596 1....Fixed Term Series -8-Dividend .51......... HSBC Mutual Fund ...91.....022 1...............02 Sold Nos......FMP 3M Series 5 Dividend Payout ............81 5..14.000 51..24......................73 10.79.342 1........ Kotak Mahindra Mutual Fund .FMP 13M March 2006(1) Institutional Plan Growth .15.84 67.......78. Kotak Mahindra Mutual Fund .Cash Management Fund Liquid Option Institutional Premium Plan Daily Dividend.....830 9..................................420 2.00.848 80....Growth .......97..00...000 1..645 1.............29..00....23...000 1..263 1.57 8..269 1......00..13 10...48 8.Money Plus Fund Institutional Plan Dividend Option .33....00.........00......000 1...07....MAHINDRA & MAHINDRA LIMITED SCHEDULE V (Contd.........601 66....) Investments (At Cost...50.........Cash Management Fund Call Plan Daily Dividend .........79........02.....789 1.05...........................Fixed Maturity Series II Quarterly Plan QSA Dividend ....00.......................47..........FMP Series 4 (Quarterly Plan -I ) Dividend .... Franklin Templeton Short Term Income Plan Weekly Dividend Reinvestment ....Cash Management Fund Savings Plus Plan Dividend ....50..........01..... Principal Mutual Fund ....................Flexi Debt Scheme ...... DSP Merrill Lynch Mutual Fund ..... JM Financial Mutual Fund ........109 54..........45...00.. unless otherwise specified) : Acquired Nos.....03.00 10.......238 Rs....78 5..00...00.09.40...03...Manager Fund Super Plus Plan Daily Dividend ........50.....Fixed Maturity Plan 91 Days Dividend Payout .01....00..... Kotak Mahindra Mutual Fund .17 174....103 7....00..24.00..17..529 1.... Chola Mutual Fund ........23..........01.392 4..........197 1.......Fixed Maturity Series III Quarterly Plan FMP Q2 Dividend Plan .84 — 10....407 50.....52.. 1..00..91......... HDFC Mutual Fund ....................13..75.........197 — — 13.28... HDFC Mutual Fund .....64......11..29... Kotak Mahindra Mutual Fund ...66.....Fixed Maturity Plan Series 23 Dividend ........39 637................................00.....012 6.................00....695 86.......14.Liquid Institutional Dividend Reinvestment Plan ......22..078 1.......00..83 — 5...72 10. DSP Merrill Lynch Mutual Fund .. HSBC Mutual Fund .....Fixed Maturity Plan Series 2 (Quarterly Plan -I) Dividend ....46.54.....97.....000 1...00.50.00.00......23........28......06.............595 51.....FMP 3M August 2006 (I) Institutional Plan Dividend ................78...........FMP 3M September 2006 (I) Institutional Plan Dividend Payout .47..848 50...490 — 50........ Chola Mutual Fund .......47....00..36 100..........17....22..00 52....000 5. Kotak Mahindra Mutual Fund ....63.43.46 62........... Deutsche Mutual Fund .......700 17............Floater Long Term Weekly Dividend ..00. Franklin Templeton Treasury Management Account Super Institutional Plan Daily Dividend Reinvestment ...... Kotak Mahindra Mutual Fund .000 50...........85....12... Franklin Templeton Floating Rate Income Fund Long Term Institutional Option .. (18) (19) (20) (21) (22) (23) (24) (25) (26) (27) (28) (29) (30) (31) (32) (33) (34) (35) (36) (37) (38) (39) (40) (41) (42) (43) (44) (45) (46) (47) (48) (49) (50) (51) (52) (53) (54) (55) (56) (57) (58) (59) (60) (61) (62) (63) (64) (65) (66) (67) (68) (69) (70) (71) (72) (73) Chola Mutual Fund ............75......84 13...... Deutsche Mutual Fund ..62..00...27....407 584 1..97.Dividend Plan ..Liquid Fund Premium Plan Dividend Daily Reinvestment ..........000 12. JM Financial Mutual Fund .Short Term Floating Rate Fund Daily Dividend Reinvestment Plan ..00 10....041 1.55..75....03...........84.....................00.696 50.82.......00....Series 13 .....06 40.408 1..... HDFC Mutual Fund .238 81 ....31.43..01.. HDFC Mutual Fund ...............Cash Management Fund Savings Plan Daily Dividend .....Multiple Yield Fund...Income Fund Short Term Institutional Dividend .FMP 3M Series 2 Dividend Payout ...............00........00....... JM Financial Mutual Fund .....FMP 3M Series 3 Dividend Payout .89.51.....00.420 2......000 5..078 1.00........05 15...22..511 4..........Fixed Term Fund Series 12 Dividend Payout .......... lakhs 10.00....... DSP Merrill Lynch Mutual Fund ...Liquid Plus Institutional Plan Daily Dividend ...... HSBC Mutual Fund ..71.......700 1..44.....70...00.40....00... DSP Merrill Lynch Mutual Fund ....22.010 70............254 1... 1...00..103 7........00............Insta Cash Plus Fund -Institutional Plan Daily Dividend Plan ..33.00 10...000 1......68 117...19..78......Liquid Plus Institutional Plan Daily Dividend . HDFC Mutual Fund .00 10...00 6....00...........67 4....... Franklin Templeton Short Term Income Institutional Plan Weekly Dividend Reinvestment .109 52..596 1....................03.Fixed Maturity Plan 91 Days Series III .78...57 15...700 1............... HSBC Mutual Fund .24 22..... Kotak Mahindra Mutual Fund ...00.23..18..........63......... .Bond (Short Term) ..65 5..529 1...................00........00......61.........829 — 1.934 1...............00 10..... Chola Mutual Fund ....20.000 50.............Daily Dividend .935 1.....49 5........ HDFC Mutual Fund ...678 1.......50...... HDFC Mutual Fund ..00...Cash Fund Institutional Plus Daily Dividend .... Deutsche Mutual Fund ....22........000 — — — 36.............Fixed Maturity Plan Series 19 Dividend .00..72............. JM Financial Mutual Fund ......04 — — 130..00..........36 666.................64...Fixed Term Plan Series ID Dividend ..................272 46....Liquid Fund Growth Plan .Manager Fund Super Plan Daily Dividend .14.Liquidity Fund Institutional Daily Dividend ....86..00....874 50....FMP 3M March 2006(1) Institutional Plan Dividend ......419 1...601 66...65...305 70...205 50.850 50.............600 8........44....... Deutsche Mutual Fund .00.000 1..Fixed Maturity Plan Series XVIII Dividend .........High Liquidity Super Institutional Plan Daily Dividend ..60.....446 1..00.00.........24....53......92 7.... Chola Mutual Fund ...................00......000 69.FMP 3M June 2006 (I) Institutional Plan Dividend Pay Out ...00...........788 72..00.....129 1....47.........Fixed Maturity Plan 91 Days Series I ....17 10...000 45......885 50.00....30 10..69........ Kotak Mahindra Mutual Fund .26............600 8.56 75......338 50.. HDFC Mutual Fund ....Liquid Institutional Premium Plan Daily Dividend .63...........00.Fixed Maturity Plan Series 3 (Quarterly Plan -I) Dividend ..830 41.00.... JM Financial Mutual Fund .000 37....968 11..25......77 5.00 127....73.......... Principal Mutual Fund ......00.Money Plus Dividend Option ........041 1.......05 7.........00.18....680 36.........01.68 10....72..00.392 6...511 4..678 1............652 4.00.680 35.........652 4..46 380.098 1...39....52.............52....27.76........80...25 15....098 1.......Fixed Term Plan Series IC Dividend .....Insta Cash Plus Institutional Daily Dividend Plan ... Principal Mutual Fund .............000 46...14..81.47....05..47.....01.17.....37...000 1.....03..012 4.. HDFC Mutual Fund .........Fixed Term Fund .....Fixed Term Plan Series IB Dividend ....80.........94 40...01..00......Deposit Fund (FMP30) 91 Days September 06 Plan Dividend Payout Principal Mutual Fund ......00.................206 51....00 455...... Deutsche Mutual Fund . Deutsche Mutual Fund .......88. JM Financial Mutual Fund ......71....................68 15.....Fixed Term Series -7-Dividend ........00....419 1......................52.....

00.91 602... Reliance Mutual Fund ..Medium Term Monthly Dividend Option ...02......Fixed Horizon Quarterly Plan I Series I Dividend Option .. Prudential ICICI Mutual Fund .00 20..... Principal Mutual Fund ....00....03.....54 70....000 1....337 15.....14.......05.........Liquidity Daily Dividend Reinvestment .....00....60.39.06......572 1...... Sundaram Mutual Fund ...Grindlays Fixed Maturity 19th Plan Dividend ......57 — 5..24.............80............00.......00...26 6..........89 173..26 10.00........88 4...00.....000 1...68..51...... Reliance Mutual Fund ...88.53..658 91..53........00...490 1..Fixed Term Plan Series 1Feb 06(100 days) Dividend Plan ...00........50...........00 10..63.....45 15...541 60. Reliance Mutual Fund ... 92..89 16..34 8..400 5.........40........00......492 50............00..832 50.Magnum Debt Series 90 Days (May 06) Dividend Option ..........00.....78........400 4.....76 96..298 1.00.. Prudential ICICI Mutual Fund ...000 50.........58..01........Institutional Short Term Plan DR Fortnightly ..61....FMP Series 32 Three Months Plan A Retail Dividend .000 1..000 99....43 10....43 5........00.....00...529 96...771 9....000 50....MAHINDRA & MAHINDRA LIMITED SCHEDULE V (Contd.....000 50..........67...... Standard Chartered Mutual Fund ...173 1..Floating Rate Daily Dividend ..00.......68...00..... SBI Mutual Fund ............Fixed Horizon Fund Series 3 Scheme A Dividend ..................195 50......54 10.00..28..........000 1.FMP Series 32 Three Months Plan D Retail Dividend ..298 50...05.79 — 3......100 1. Reliance Mutual Fund .Magnum Debt Series 180 Days (August 06) Dividend Option .Income Fund Growth Plan .00 5....00......53 2.244 96.00...94.173 1......40.00 10....42..Fixed Term Plan Series VIII (30 Days) Dividend Plan . Reliance Mutual Fund .....400 1....81.250 20.....00....46..00.98..337 15.... Tata Mutual Fund .....FMP Monthly Plan Dividend Monthly ..06.24..Fixed Horizon Monthly Plan A Series II Dividend Option ......000 50.16...60 2........Liquidity Manager Daily Dividend ... SBI Mutual Fund .00 15.....000 1....00....14....01....46.........99..Fixed Horizon Quarterly Plan B Series II Dividend Option .989 27.00..490 1.......05.01......Fixed Maturity Plus Plan III B Growth .. Prudential ICICI Mutual Fund .18 10...50..46...00..88......00........Super Institutional Daily Dividend .02...920 1.15..63........000 20.Magnum Debt Fund Series 13 Months Growth Option . Standard Chartered Mutual Fund ....771 9...60.. Reliance Mutual Fund ..Fixed Horizon Quarterly Plan B Series IV Dividend Option .. Standard Chartered Mutual Fund .66 5......658 91.00.....13..........00......77...00 10..00........46..........00..000 1..00... Sundaram Mutual Fund .. Reliance Mutual Fund ............32.. Standard Chartered Mutual Fund ........85..500 96.....00 10..........Magnum Institutional Income Savings Dividend .438 1.98..17... Reliance Mutual Fund ....01......54......58..BNP FTP Series VI June 06 (100 Days) Dividend Payout ....Sweep Cash Option Daily Dividend ..66.14.63 5..000 1.............38..Magnum Debt Series 90 Days (August 06) Dividend Option ..400 7...00..Magnum Debt Series 90 Days (October 06) Dividend Option .50.........000 1... Tata Mutual Fund ....00.Fixed Horizon Monthly Plan A Series V Dividend Option .....05..423 50.....Fixed Horizon Series 5 Scheme D Dividend ............47.54...00 10..............50...00.10.......90 10....... Reliance Mutual Fund .....00 10..00....00.31 16........607 68..92 10.....184 50..00..00 10....000 50...00......01............... Sundaram Mutual Fund ..00.........00....47...533 — 1...... Prudential ICICI Mutual Fund .000 1..15.....83 5...000 18.............12 Sold Nos...... Reliance Mutual Fund ........298 50.........00.00 189.........00...935 53.........00.000 1......63 — 10..........00.00. Standard Chartered Mutual Fund ..100 52.50....Fixed Maturity 3rd Plan Dividend ................80..38....000 1...02........00..............419 1.....000 1..00 5......24.) Investments (At Cost.00 10.....27....02. SBI Mutual Fund . Standard Chartered Mutual Fund .03.54...42...00....05..Flexible Income Plan Dividend Fortnightly ..325 61..00..........02 10.......Fixed Horizon Fund Monthly Plan A Series IV Dividend Option ...572 1..01.......000 50.........281 — 1.00.36.......597 1..00...00....00........ Reliance Mutual Fund ........................... Sundaram Mutual Fund ..78 10.... Reliance Mutual Fund .......03 10..Magnum Debt Series 60 Days (September 06) Dividend Option ..........00..00.000 1.37..........84 15.......... Prudential ICICI Mutual Fund ....... SBI Mutual Fund ....000 50. Sundaram Mutual Fund ....00.Fixed Term Plan Series IX (90 Days) Dividend Plan ...00 5.551 53...136 4...57.......14 55..Fixed Horizon Monthly Plan Series I Dividend Plan ..50..56....... Prudential ICICI Mutual Fund ......51.......00.............50....10.............914 — 50......Fixed Term Plan Series X (30 Days) Dividend Plan .......281 50..................45 10.Money Fund Super Institutional Daily Dividend .438 1... SBI Mutual Fund ..01....... SBI Mutual Fund ..400 1..00...36.00 15...........61...54...00.....00......00..00..50....... Reliance Mutual Fund .00....46 50...250 20...00.02.......500 97..597 1..........00...121 1....384 85....50.....00.000 1. Standard Chartered Mutual Fund .67........Fixed Maturity Quarterly Plan III Series II Dividend Option . Prudential ICICI Mutual Fund ... Prudential ICICI Mutual Fund ... Reliance Mutual Fund ...000 2......000 1.....88.........Fixed Horizon Quarterly Plan B Series III Dividend Option .000 1..........Fixed Horizon Fund Dividend Option .00....75 971...29 10..71 0...000 51.........00........50....00.Fixed Horizon Quarterly Plan B Series I Dividend Option . (74) (75) (76) (77) (78) (79) (80) (81) (82) (83) (84) (85) (86) (87) (88) (89) (90) (91) (92) (93) (94) (95) (96) (97) (98) (99) (100) (101) (102) (103) (104) (105) (106) (107) (108) (109) (110) (111) (112) (113) (114) (115) (116) (117) (118) (119) (120) (121) (122) (123) (124) (125) (126) (127) (128) (129) (130) (131) Principal Mutual Fund ...........59.FMP Series 32 One Month Plan A Retail Dividend .Fixed Horizon Series 6 Scheme G Dividend .00 5.....05.............00....... Prudential ICICI Mutual Fund ...........81..920 1...00..000 50.....00.... SBI Mutual Fund .. Prudential ICICI Mutual Fund ....400 6.....000 1.Fixed Horizon Series 5 Scheme C Dividend . Reliance Mutual Fund .Income Fund Short Term Plan Institutional Plan Dividend Weekly ...00.00....833 1.00..490 1.........100 13...Blended Plan B Institutional Dividend ..27.490 1...........298 1.05.100 5....000 1.24.......ST Plan C Fortnightly Dividend .. Prudential ICICI Mutual Fund .. lakhs 10....419 1.18...11......Fixed Horizon Monthly Plan A Series VI Dividend Option .000 50.61.. Tata Mutual Fund .044 1.119 82 .......00.......00...00..304 50..279 50...........FMP Monthly Plan Dividend XXVII . Reliance Mutual Fund ...000 1........00 15.....832 47....000 1.60..Liquidity Manager Plus Daily Dividend ....67.Grindlays Fixed Maturity 21st Plan Dividend .....00...Fixed Horizon Monthly Plan Series II Dividend Plan ....00... Reliance Mutual Fund .30..912 1...00.....000 1......00.000 1.......04.01................. 92..00...Fixed Horizon 11 Monthly Plan Series 1 Institutional Dividend Plan ...05.Liquid Cash Plan Daily Dividend Option ....686 — 37..81..136 2.. Reliance Mutual Fund ........78.......39....44....Fixed Horizon Quarterly Plan B Series V Dividend Option .....98...01.FMP Yearly Series XXV Dividend .000 2......00.65.00.Magnum Debt Series 90 Days (June 06) Dividend Option ....24...02...88....000 99......05..09.. Standard Chartered Mutual Fund .00 10.00............00.60 10.00.. Reliance Mutual Fund ... unless otherwise specified) : Acquired Nos..... Sundaram Mutual Fund ..........25.......00..Fixed Horizon Monthly Plan A Series III Dividend Option ....833 1..00....607 50.67.00.....00.......119 Rs..044 1..761 1.. Tata Mutual Fund ... SBI Mutual Fund .........

..... UTI Mutual Fund ...000 1.18 57.15 13.00 Total Value Rs................................00...00....50 Sold Face Value Rs.000 40.......00..05.00......................00 20.......00.........00.......17 — 5........ lakhs 10...33..Fixed Maturity Plan QFMP Growth Plan ........ UTI Mutual Fund ...00 — 15..........060 — The following are the movements in Certificate of Deposits during the year : Acquired Face Value Rs..........00.....648 2.......00 35.........00 25..... unless otherwise specified) : Acquired Nos....................00 — 134.78...31 9...................00..00 25..................Fixed Maturity Plan YFMP Growth Plan ........00.Fixed Maturity Plan QFMP 106/11 Dividend Plan ...............922 — 40....Fixed Maturity Plan QFMP/0506/1 Dividend Option ..84 9.......00 15........00 10..000 1.......00........24..........95...............679 1. UTI Mutual Fund ....00 15....00...00........00 15..... The following are the movements in Commercial Paper during the year : Acquired Face Value Rs.... — 10...........47....00 10....61 10.............. UTI Mutual Fund ...... Tata Mutual Fund ........00............00 — 40.....00 5........00 83 .00..........90.......00...Liquid Super High Investment Fund Daily Dividend .....00 10..00 10...24.00.84 23.....Liquid Cash Plan Institutional Daily Income Option ..00.00..00 — — — — — — — — — Matured Face Value Rs.83..82 28.49........302 50.......95.....00...................... HSBC Bank .80. State Bank of Hyderabad ..........00.00...00......00.....Fixed Maturity Plan Quarterly Series QFMP/0806/11 Dividend Plan Payout UTI Mutual Fund ........................................50............... HDFC Bank .....00.... Allahabad Bank ....50...........................00.00....000 50.00 10..51.00 — Matured Face Value Rs... 50........ State Bank of Bikaner & Jaipur .............. Tata Mutual Fund ..... lakhs (1) (2) (h) Export Import Bank of India ..54. 1........ (132) (133) (134) (135) (136) (137) (138) (139) (140) (141) (142) (143) (144) (g) Tata Mutual Fund .....000 35...00 30...............MAHINDRA & MAHINDRA LIMITED SCHEDULE V (Contd....00...00. State Bank of Mysore . ICICI Bank Limited ...92 9..250 8...................00.81.. UTI Mutual Fund ....00.................00.....84 9......76......00.00.00..00.....) Investments (At Cost.000 35.00 60..........01...............00 25...111 50......00..06.76 — 456..Fixed Horizon Series 8 Scheme B Dividend Institutional Plan ....... Tata Mutual Fund .....00.......70 Sold Face Value Rs.....Fixed Horizon Fund Series 5 Scheme A Dividend ..00 — — — — (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) State Bank of Travancore ....47 14............18 10...97 — 38........... lakhs — 9.............53 24.21....................00.00 10. UTI Mutual Fund ....... Punjab National Bank ..........000 1........Money Market Fund Daily Dividend Option ......25.. State Bank of Indore ...71.00 10.. lakhs 48.00..........00...00..........00....81.........................58.000 Rs.......... lakhs 15...00 15.000 50.00.............. lakhs Total Value Rs...........00 359........ lakhs 30..........166 1..000 1..........................Fixed Horizon Series 8 Scheme C Dividend Institutional Plan .......00........ UTI Mutual Fund ......648 3.....00.............48...00 1.........00.......000 — 7............ ABN AMRO Bank ............56 20...00 15....041 1.....00..........00 Sold Nos... Kotak Mahindra Bank Limited .63...00... Housing Development Finance Corporation Limited ... Tata Mutual Fund ............Liquidity Management Fund Daily Dividend ....92.. lakhs 10.......24......00........00 10.89...111 — 50...54.......... lakhs — 5.71................13. State Bank of Patiala ....Fixed Maturity Plan QFMP/1006/11 Dividend Plan Payout ..61......

.... (ii) On Fixed Deposit Account * ..31.........73 582......................76 Less : Provision for Doubtful Debts ...61.02... Nil)) Balances with Non-Scheduled Banks [Note 7] : (i) On Current Account .......................26 878... (B) Sundry Debtors [Note 6] : Unsecured unless otherwise stated : Outstanding over six months : Considered good ..Work-in-Progress [including completed flats and premises Rs...47..01 lakhs (2006 : Rs..........79 2006 Rupees lakhs 427..... Bills of exchange...................748.70 — 4..............27......70 1.........27.....99 274......04 448..14 14......42 991.44. Excise..........18 308......................... Less : Provision for Doubtful Advances ....88.. (iv) Raw Materials and Bought-out Components .61 576.........04 1...........................15 62..........62......78 41.....52..........18 53.............44........20 7.....23......45 35.................10 3..................74........01 124........02 14....55.99 327......... Considered doubtful ...38 8.................... Other Debts : : Considered good ..........55..03.................32..............17..Customs.89 182...... ...................14..84 50.75 7......................05..10.......83 2........... (iii) Manufactured Components ........... Plant and Machinery and other assets held for sale(at cost or net realisable value whichever is lower) . (iii) On Margin Account ..38...........59......89. Balances with Scheduled Banks : (i) On Current Account ............ etc............02 5..92 7..............................................04 — 274.96...20 — 124.........55............ Total........24 290........03.......88......................41....59......38 753......37 85..................12 50............ : Considered doubtful . (ii) Contracts and Work-in-Progress ....................75 1......23...77 131......13 305...17 679..........75 498..78........76...12 100..............16..30.19 3........18 100.... * (includes balance of unutilised monies raised by issue : Rs..........................85....... Rupees lakhs 2007 Rupees lakhs 448...........27.....67.....................18...18 615....................................................54...... Advances recoverable in cash or in kind or for value to be received : Considered good .. 3........... Payments towards Income tax and Surtax [Note 21(d)] ...................48...............79..95......33.MAHINDRA & MAHINDRA LIMITED SCHEDULE VI Current Assets...16 97...00.......... (E) Loans and Advances [Note 8] : (Unsecured..326..........24.......60 3.89 700.......26 6..78.84 17...02......10 3....... (ii) On Fixed Deposit Account ....95 910.... cheques and stamps on hand .................46.......48 3...41.......85 18....................12.........95 290......79 18.... Balances ... Considered doubtful ..42 543..........70 4............27........... Less : Provision for doubtful bills .... (v) Property Development Activity ... 632...04 1.33 5...............99.......... (C) Cash and Bank Balances : Cash....94........22 lakhs (2006 : Rs.56 52.........38..........69 49......15 6....42...............80...53 38....................05. Loans and Advances : (A) Inventories (at cost or net realisable value whichever is lower) : (i) Finished Products produced and purchased for sale ...... (vi) Stores and Spares ...44 5......42......31.............31....56 72..................95.........................749... Less : Provision for doubtful Advances and Loans .......37 61.......28 44.......12 621..............07.....21.58......32 471...76 7............12 (D) Other Current Assets : Interest accrued on investments .....89................726..14..55................ considered doubtful .....14 lakhs)] [Note 11(b)] ............ Considered doubtful ...67 329...................58 3..44..72 1....06.......88 839..........14............12 878.....21....03.... considered good unless otherwise stated) : Advances and Loans to subsidiaries : Considered good ............... (vii) Tools .72 498.......31..28 730..72 448..............95..41 45..09.......89 637... 81...........32 17..............02.............71..... Port Trust...17 53..........00..........70 15.01 131...........28 33................ 85836....81 84 .......................22 47.......02......44.....94.72 297...............

813....43 243...........................44 31...........86 12......................38 15..............07........... Provision for contingencies [Note 10 (b) & (c)] .19...............63 1.. Sundry Creditors : (i) (ii) Total outstanding dues of small scale industrial undertakings [Note 9 (a)] .......99 10...74 70..57....................88......... Provision for compensated absences ..................58 1.........63...08.......... Total....... Provision : Others [Note 10 (a) & (c)] ...... Provision for taxation ...370........15 2...............45 56......31 23...68..950.52 Total........25 2......50 12....55..............64.....24..........33 SCHEDULE VIII Miscellaneous Expenditure (to the extent not written off or adjusted) : (a) Finance Charges ...... 2. Provision for diminution in value of long term investments ..........58 715..... (B) Provisions : Proposed Dividends ....................75..21 2...............................64.68...17 83..............80 103........................... Total outstanding dues of creditors other than small scale industrial undertakings [including Rs....75 17..50 1.................... Provision for premium payable on redemption of convertible bonds .........52 78...72..............15 1................. 89.04 2..52 2007 Rupees lakhs 2006 Rupees lakhs 121...........22 132...................... 2007 Rupees lakhs 2006 Rupees lakhs 5.............94.. 7770......33.............99 2....288.......................49 530...12 28.........91..95.................29 — 169..40 lakhs (2006 : Rs.... Interest accrued but not due on loans .12 (iii) Dues to Subsidiaries ............58.89 52......97........... 98............67.....98...............................85................21..19....27 1......23 1... Provision for tax on Proposed Dividend ........................15 29. Dividend payable ..... (b) Separation and Other Costs .....051........81.....21..........08 18....81...33.......45 lakhs) being advance payments for which value has still to be given] .....91 244. 7......90 16..02...42...86......see Directors’ Report ........91 * There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund....41 34......... Balances on Directors’ Current Accounts ..........84.MAHINDRA & MAHINDRA LIMITED SCHEDULE VII Rupees lakhs Current Liabilities and Provisions : (A) Current Liabilities * : Acceptances ..............80.........05..........77 4.......15............93.........56.........85.........................695............ 4630..00 57................21....46 85 ...............520.665..........21.........45....................

...........39...50.22 47....................63 — 5..15 SCHEDULE X Rupees lakhs Raw Materials...77 6.......37.....29...95............. 2007 Rupees lakhs 285..............99........588.............58 36.........57 5......22 47..83 5.16...........32 7.....52..51...27....91.69 49.........94 525..................................19....31....................20...... 305........................... .89........... Total........18 531..............55...20 lakhs (2006 : Rs............95.........67..... Add : Purchases [including outside processing charges Rs.....................76.09 (103.................713..............44.......... Decrease/(Increase) in Stock ...........09 421....83 6....................40..........46.............39 5.............. 427.....21 Less : Closing Stock . Total..................... Rent received ..........851........06 5....608....... Miscellaneous Income .......... Less : Closing Stock : (i) (ii) Finished Products produced and purchased for sale .....58 228......66.......85) 295.914..............57 (C) Purchases of Finished Products for sale ............03..601...04.........00 617.69 49......18) (iii) Manufactured Components ....896...................89....27..69 33......... 23205..... 24147..................77...........96 308..38 6...24........92 41.....00 166.....56...29...09..............49....33.............. (B) Consumption of Raw Materials and Bought-out Components : Opening Stock ............50... 448.52.....78 8..... Dividends on Investments in subsidiaries-Gross...... Finished and Semi-Finished Products : (A) Decrease/(Increase) in Stock of Finished Goods........13 (iii) Manufactured Components ........ 308... Property Development Activity-Property .....00 17....17 525........... Profit on sale of Investments (Net) [Note 12(d)] ........................89.....18 2007 Rupees lakhs 2006 Rupees lakhs 333.91 427...........62.......41 12.. Contracts and Work-in-Progress ....27.......48 6.....39....38 3.82 47.93.................39 114....80....28 44.........76............................ 249..............................39.....605...........45 lakhs)] .... Dividends on other Investments-Gross [Note 12(a)] ............. Profit on sale of Fixed Assets sold/scrapped/written off (Net) [Note 15] ..68 99..31......... Contracts and Work-in-Progress .................17 5...........15 (6...............69 86 ..76..47..MAHINDRA & MAHINDRA LIMITED SCHEDULE IX Income from Operations and Other Income : Income from services rendered ...............................31 2006 Rupees lakhs 152..00 337.... Work-in-Progress and Manufactured Components : Opening Stock : (i) (ii) Finished Products produced and purchased for sale ...95.........................16..............53 38..38 6.

..... Debentures and Bonds ....28..39 SCHEDULE XII Interest........40.....Others ........................37.35....06 4...... Contribution to Provident and other funds ....... 2007 Rupees lakhs 2006 Rupees lakhs 554...............43) 87 .38.............95..61 4...............33 446........................................................ Wages.................................... etc..63 24.... Total......81.34 56.................21 87...85 82...77 (18....................15........90 2...26 65........Gross [Note 12(c)] ...96 26....85.............................45....MAHINDRA & MAHINDRA LIMITED SCHEDULE XI Personnel : Salaries............................62 38............ Commitment and Finance Charges : On Term Loans and Debentures ...........49.59........... Less : Interest Income : (i) (ii) Interest on Government Securities.....95............. 2007 Rupees lakhs 2006 Rupees lakhs 17.95.... Bonus..............16) Total.....65 1......32 31...............................08 45.....................79............................99....Gross [Note 12(b)] ... On Others (Net) .........................72 666.......................73 7.78.. Welfare ..... Interest ...........69 40........05.....................................95..........29.73 19..12 16.....43........ ................25..61 551................... (67......... Gratuity .85......98......

...............................65 54........... Insurance .........54 357..........................87...43 83......87 33.........84 54....................27.........................02........................41 27.09....... Commission on sales/contracts (Net) .......19............72.........55 81...................... Freight outward ........17 130.............. Repairs and Maintenance [Note 13] : Buildings ....36 18...36 2007 Rupees lakhs 2006 Rupees lakhs 64..70.. Provision for doubtful debts/advances (Net) [Note 27] .........05 260.................57.............................. 82.........27 88 .....43.004...64.....................00..........86 108..56 — 68.... Excess of cost over fair value of Current Investments (Net) ....................49 65... Total...................22 21................................................12......07..........07 54........................36..04 52.........80...........................................21 17..........86.........84.....MAHINDRA & MAHINDRA LIMITED SCHEDULE XIII Rupees lakhs Other Expenses : Stores consumed ..........................46......................................04.....06....................................................08 68...............60 2... Others .. Sales Promotion Expenses .............60 2.................99 9.........................53.............20 Advertisement .........76 88....68.....09 7................ Rent including lease rentals ...........................03.....11 (22..............................42 12..................... Rates and Taxes ........50) 1..72 16........318........................60...32 21..........19 9..82 57...............................71... Donations and contributions ..10.01 366............. Loss on Fixed Assets sold/scrapped/written off (Net) [Note 15] . 18...........................90 22...................................................67................66.......................................................97 1.....30..... Tools consumed ..........06 294.......................................80 5..................... Miscellaneous Expenses [Note 14] ..... Discount allowed ........42 14... Machinery .................................63 57........26.........................04................ Directors’ fees ........... Power and Fuel .........40................................25.....17...................................48.....................14..............36 1.............. Amortisation of Expenses [Note 1(E)(a)] .............................71 9.............................89.............................86..22............................................................41............................ Provision for diminution in value of Long term investments (Net) [Note 28] ............69 24..........31 14.................44 — 1.................70 6..

3 years. Leasehold land is amortised over the period of the lease. not exceeding six years commencing with the year of purchase of the technology. In case of borrowed funds and liabilities in foreign currencies for the acquisition of fixed assets from a country outside India. 5. transferred from the Revaluation Reserve.over their useful lives (2 years. 2007 1. (c) Software Expenditure : The expenditure incurred is amortised over three financial years equally commencing from the year in which the expenditure is incurred. the exchange differences are adjusted to the cost of such asset. When an asset is scrapped or otherwise disposed off. Cars and Vehicles . Cost is arrived at on a weighted average method and includes. 1984 at depreciated replacement values on the basis of a valuation made by a firm of Chartered Surveyors & Valuers. 89 . The indices. conversion or repayment of borrowings.000 . (C) Investments : All long term investments are valued at cost. However.at 15% of cost. is reflected in the Profit and Loss Account. Significant Accounting Policies : (A) Fixed Assets : (a) (i) All Fixed Assets are carried at cost less depreciation except as stated in (ii) below. where appropriate. manufacturing overheads and excise duty. (b) Development Expenditure : The expenditure incurred on technical services and other project/product related expenses are amortised over the estimated period of benefit. if any. except for : (1) certain items of Plant & Machinery individually costing more than Rs.MAHINDRA & MAHINDRA LIMITED SCHEDULE XIV Notes on Accounts for the year ended 31st March. the cost and related depreciation are removed from the books of account and resultant profit (including capital profit) or loss. determined by category of investment. (ii) Land and Buildings. Cost includes financing cost relating to borrowed funds attributable to the construction or acquisition of qualifying fixed assets upto the date the asset is ready for use. 5 years or 7 years. provision for diminution in value is made to recognise a decline other than temporary in the value of investments. if any. (b) (i) (ii) (2) (iii) Depreciation charge for each year is after deducting the amount representing the depreciation on the increase due to revaluation of Land and Buildings. On early buyback. (B) Intangible Assets : All Intangible Assets are initially measured at cost and amortised so as to reflect the pattern in which the asset’s economic benefits are consumed. (D) Inventories : Inventories are stated at cost or net realisable value. not exceeding five years. (a) Technical Knowhow : The expenditure incurred is amortised over the estimated period of benefit. 1956. as the case may be) as determined by the Company. Current investments are valued at the lower of cost and fair value. Depreciation on assets is calculated on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act. any unamortised expenditure is fully written off in that year. Long term contracts in progress are valued at cost. (E) Miscellaneous Expenditure (to the extent not written off or adjusted) : Expenditure carried forward under this head is being amortised as follows : (a) Finance Charges : The expenditure incurred in raising long term borrowings is amortised over the period of the borrowings. whichever is lower. had been revalued as at 31st October. used are not stated in the valuation.

ESIC. godowns. In case of monetary items (other than those for acquisition of fixed assets from a country outside India) the exchange differences are recognised in the Profit and Loss Account.). Dividend from investments are recognised in the Profit and Loss Account when the right to receive payment is established.MAHINDRA & MAHINDRA LIMITED (b) Separation and Other Costs : Special Payments/Pensions under Voluntary Retirement Schemes. such as grants by way of refund of octroi duty paid by the Company for its manufacturing unit located in a developing region. the Company accounts for the income on the percentage of completion basis. (H) Property Development Activity : The Company accounts for income on the percentage of completion basis which necessarily involves technical estimates of the percentage of completion. have been relied upon by them. The estimates for accounting of warranties are reviewed and revisions are made as required. the exchange differences are adjusted to the cost of such assets. (M) Leases : The Company’s significant leasing arrangements are in respect of operating leases for premises (residential. (J) Employee Benefits : i) Defined Contribution Plan Company’s contributions paid/payable during the year to Provident Fund. compensated absences and post retirement medical benefit schemes are determined by independent actuaries. using the projected unit credit method. (F) Foreign Exchange Transactions : All foreign currency monetary items are translated at the relevant rates of exchange prevailing at the year end. In the case of monetary items incurred for the acquisition of fixed assets and technical know-how from a country outside India. Past services are recognised on a straight line basis over the average period until the benefits become vested. In respect of forward exchange contracts the premium or discount arising at the inception of such a contract is amortised as expense or income over the life of the contract. and costs to completion of the activity. In respect of sale of property (concerning property development activity). The leasing arrangements. (L) Product Warranty : In respect of warranties given by the Company on sale of certain products. the estimated costs of these warranties are accrued at the time of sale. Obligation is measured at the present value of estimated future cash flows using a discounted rate that is determined by reference to the market yields at the Balance Sheet date on Government Bonds where the currency and terms of the Government Bonds are consistent with the currency and estimated terms of the defined benefit obligation. The liability is amortised over a period of five years from the month in which the liability is incurred. Such estimates. and are usually renewable by mutual consent on agreed terms. (I) Government Grants : The Company is entitled to various incentives from a State Government. The aggregate lease rentals payable are charged as rent including lease rentals. as these are of a technical nature. [Refer paragraph (H) below]. office. Actuarial gains and losses are recognised immediately in the statement of Profit and Loss Account as income or expense. In view of the uncertainty in respect of the collection of these grants. stores. made by the Company and certified to the auditors. and Labour Welfare Fund are recognised in the Profit and Loss Account. (K) Redemption Premium : Premium payable on redemption of Bonds/Debentures is fully provided and charged to Securities Premium Account (net of tax) in the year of issue. computer hardware etc. 90 . Superannuation Fund. on the basis of which profits/losses are accounted. range between eleven months and three years generally. which are not non-cancellable. (G) Revenue Recognition : Sales of products and services are recognised when the products are shipped or services rendered. ii) Defined Benefit Plan/Long term compensated absences Company’s liability towards gratuity. such grants are accounted for as and when the disbursements are received.

166 Ordinary Shares issued consequent to the Scheme of Amalgamation with Mahindra Spicer Limited without payment having been received in cash. Share Capital : Issued and Subscribed Capital include : (i) (ii) 1...737 Ordinary Shares were issued on conversion of 41.27.....83 2006 Rupees lakhs 91 . Nil)) ...... Of these..22..... Premium on conversion of Debentures and Bonds ..... 8.. Excise duty in respect of Finished Goods manufactured is shown separately as an item of expense and included in valuation of finished goods produced...06....87 4....94 148... Reversal of premium on redemption of Zero Coupon Convertible Bonds pursuant to conversion ..28 54..................52 2.31.. in accordance with Section 78 of the Companies Act............ 47..94............ Nil)) ..52 Applied........06 20.67..........51..07 347..73 66..200 Ordinary Shares issued consequent to the Scheme of Amalgamation with Mahindra Nissan Allwyn Limited without payment having been received in cash...... 12...66 lakhs (2006 : Rs.............03.......66........47.....98.78 98. (iii) (iv) (v) (vi) 3..... 9...82 1......211 8% Bonds..504 Ordinary Shares allotted as fully paid-up by way of Bonus Shares by capitalisation of Securities Premium Account and Reserves....07 2.56....... (O) Excise duty recovered on sales is included in “Sales – Traded and Manufactured Goods”... arising out of exercise of options ......... 2.. 17....05 163.68 lakhs (2006 : Rs.....06 43.. 161.73.. subject to consideration of prudence. Premium on redemption/buyback of debentures and Zero Coupon Convertible Bonds (net of tax of Rs...88.......202 Ordinary Shares issued consequent to the Scheme of Amalgamation with International Tractor Company of India Limited without payment having been received in cash. Deferred tax is recognised. being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.....85 13.14..... 13.57 (ii) Revaluation Reserve : Adjusted against depreciation for the year [Note 1 (A)(b) (iii)] Adjusted in respect of revalued Land and Buildings sold/demolished 42. 12.... Deferred tax assets arising on account of unabsorbed depreciation or carry forward of tax losses are recognised only to the extent that there is virtual certainty supported by convincing evidence that sufficient future tax income will be available against which such deferred tax assets can be realised.04.07.19 47......... on timing differences....562 Ordinary Shares issued consequent to the Scheme of Amalgamation with the Union Bank of India Limited.........MAHINDRA & MAHINDRA LIMITED (N) Taxes on Income : Current tax is determined as the amount of tax payable in respect of taxable income for the year. 8186...09 2..95 278.51 140....809 Ordinary Shares allotted as fully paid-up pursuant to a contract without payment having been received in cash... 1956... 1. Reserves and Surplus : 2007 Rupees lakhs (a) Movements during the year : (i) Securities Premium Account : Additions....73.66.. towards : Writing-off of share and bonds/debenture issue expenses (net of tax of Rs..

redeemed or purchased and cancelled.... 1837... 45 per share and Rs. Subsequent to the year end.. 2011..16 lakhs) (d) The Company had issued during the year ended 31st March. 2011 at 128.. 1991 and 18th July...... 342.... the Company has reduced the Share Capital by Rs. receivables.36 lakhs are secured by a paripassu charge on immovable properties of the Company both present and future. 2008. Accordingly.. Upto 31st March.......... outstanding monies... Loans : (a) Debentures are redeemable at par as follows – (i) (ii) (iii) (b) (i) Rs...... at par...... 92 ...93 lakhs (2006 : Rs.00 lakhs) (2006 : Rs. Bonds aggregating US $ 0. the bonds fall due for redemption on 14th April... 3525.. The Bonds 2011 may be redeemed... Consequent to the conversion premium aggregating Rs... 1175...... The following amounts are repayable by 31st March...... claims etc. 158... The balance amount of Rs.. 35 per share respectively on 1st April. Out of these upto 31st March. 1992.. 110 each and Zero Interest Bonds of the face value of Rs.. 366........ into appropriate number of equity shares.. Nil Rs..90 million have been converted into equity shares/ GDRs.93 lakhs) for the 36.. both present and future. : Foreign currency loans from Banks .. Rs... 2008 subject to satisfaction of certain conditions.12 lakhs) (2006 : Rs. The Share Capital of the Company has also been reduced and the General Reserve increased by Rs.09 lakhs)..........67 lakhs (2006 : Rs. Also refer Note 4 (c) below.... on receipt of the balance amount due on allotment........03 per cent of their principal amount.MAHINDRA & MAHINDRA LIMITED (b) The Guidance Note on Accounting for Employee Share-based Payments issued by The Institute of Chartered Accountants of India requires that shares allotted to a trust but not transferred to employees be reduced from Share Capital and Reserves...42 = US $ 1...... 44..... Loans and Advances from the Company’s Bankers are secured by a first charge on a pari-passu basis on the whole of the current assets of the Company namely inventories......... All Debentures of Rs. 500 lakhs on 16th July... ....10 each at a premium of Rs. 2007..279 shares (2006 : 37.10 lakhs) (2006 : Rs.. tools and accessories......... 0.... 1st October..69.04 per share with fixed exchange rate of conversion of Rs.... is included under current liabilities..93 lakhs (2006 : Rs.... 2007... The bond holders have an option to convert these bonds into Equity Shares with full voting rights or Global Depository Receipts (GDRs) determined at an initial conversion price of Rs.. machinery spares.30 million have been converted into equity shares/GDRs... 922.. 2005. Zero Coupon Foreign Currency Convertible Bonds (Bonds 2009) aggregating US $ 100 million... 550........ 375.. 375.... : Rupee Loans .. at par... 204.... both present and future.884 shares) held by the trust pending transfer to the eligible employees........94 lakhs no longer payable on bonds converted into equity shares/GDRs has been credited back to SPA during the year... 5715.... subject to certain exclusions and are also secured by pari-passu charge on the movable properties of the Company including movable machinery...50......09 lakhs) for the bonus shares issued by the Company in September 2005 to the trust but not yet transferred by the trust to the employees...58 lakhs Rs. 4.. : Rs.. 2008 : (i) (ii) (iii) (iv) Debentures/Bonds..... 1797.67 lakhs will be converted.. 1991. Unless previously converted. the Company issued Zero Coupon Foreign Currency Convertible Bonds (Bonds 2011) aggregating US $ 200 million.....95 lakhs (2006 : Rs. 516.. none of the Bonds 2011 have been converted into equity shares/GDRs.. During the year... at the option of the Company at any time on or after 13th April... 90 each were both compulsorily and automatically fully converted into two equity shares of Rs. certain book debts.. The above monies which is treated as advance received from it.. 8500............ 2011.from others ......12 lakhs Rs.. : Fixed deposit holders ........... Premium payable on redemption of Bonds 2009 had been fully provided in the previous year by debiting the same to Securities Premium Account (SPA)........... 2006 upto 7th March.. 366.. Bonds aggregating US $ 97. at any time on or after 7th May. 866.67 lakhs and certain Foreign Currency Loans from Banks of Rs. 50 lakhs on 22nd May.... Securities Premium by Rs.. in whole but not in part. (ii) (c) Debentures of the face value of Rs.

29 1. 8186. 2006 Maximum balance during the year Maximum balance during the previous year (b) In Deposit Account Rupees lakhs Bank of Australia Balance as at 31st March. (iii) 6. 5.06 0. (a) Land includes a sum of Rs. (b) (c) (d) (e) (b) (ii) The Revaluation Reserve is also adjusted for an amount of Rs. Sundry Debtors others include Rs. which was hitherto being debited gross of tax. Tehran Balance as at 31st March. As a result the Securities Premium Account as at 31st March. This expenditure is transferred to Development Expenditure and is appropriately amortised.28 7.54.05 lakhs (2006 : Rs.MAHINDRA & MAHINDRA LIMITED The net proceeds of Rs.21 lakhs. 0. Buildings include Rs. representing depreciation on assets used for development work.46 lakhs).24. 6761.06 lakhs (2006 : Rs.86 lakhs (credit) (Net)] on account of foreign exchange fluctuation.43.10 lakhs). Bank Ltd 2. 2007. 2007 Balance as at 31st March.51 62. 47. The net credit to the Profit and Loss Account consequent to the above adjustments to the Revaluation Reserve is Rs. 2007 is higher by Rs.81.94 7.35. 3.25 5. Deferred Tax Asset is higher by Rs.58 15.06 lakhs).19 lakhs (2006 : Rs.06 Bank of Australia Bank of China The Municipal Co-op. The Company has filed the necessary return under Section 6 of the Urban Land (Ceiling and Regulation) Act. (i) The depreciation charge for the year excludes : (a) An amount of Rs. 2007 Balance as at 31st March.37. 129. 4.28 lakhs).58 15. 1425.54 3. in respect of vacant land held by it and has also applied to the Government of Maharashtra under Section 20 of the said Act requesting for exemption of the said vacant land from the ceiling restrictions of the Act.94 lakhs debit (Net) [2006 : Rs. 1425.66 lakhs.07 2.98 lakhs (2006 : Rs. in accordance with the terms of the contracts.98 lakhs) for which the conveyance is pending receipt of approval from the appropriate authorities.87 lakhs (2006 : Rs. 16. is disclosed under Cash and Bank balances.06 0.06 lakhs (2006 : Rs.78 lakhs) in respect of revalued Land and Buildings sold/demolished during the year. representing depreciation on the increase due to revaluation of Land and Buildings transferred from the Revaluation Reserve. 2007. An amount of Rs.94 lakhs (2006 : Rs.06 0. 1976.84 77. Additions to Plant and Machinery include Rs. in accordance with the Announcement “Tax effect of expenses/income adjusted directly against the reserves and/or Securities Premium Account” issued by The Institute of Chartered Accountants of India. 21. tax expense for the year is higher by Rs. 0. 43. 1561.21 lakhs and consequently the profit for the year is lower by Rs.04 lakhs) being the value of shares in co-operative housing societies. 129.32 2. Cash and Bank Balances include balances lying with non-scheduled banks : (a) In Current Account Rupees lakhs Bank Tejarat.01 lakhs. 2006 Maximum balance during the year Maximum balance during the previous year – 15.45 lakhs. 737. 3. 54. unutilised as at 31st March.26 6. which. 98.32.41 93 . The Company has during the year debited the provision for premium payable on redemption of convertible bonds to the Securities Premium Account net of tax. 1. were not due for payment as at 31st March.58 0. 42.16.52 19. 85836.

MAHINDRA & MAHINDRA LIMITED

8.

Loans and Advances include : (i) (ii) (iii) (iv) Fixed/Call deposits with/loans to limited companies Rs. 25906.05 lakhs (2006 : Rs. 7551.96 lakhs) including Rs. 25239.21 lakhs (2006 : Rs. 2876.26 lakhs) with/to subsidiaries. Amounts paid towards joint development of property Rs. 154.05 lakhs (2006 : Rs. 154.05 lakhs). Share Application money pending allotment Rs. 1571.94 lakhs (2006 : Rs. 8469.66 lakhs) to subsidiaries. Amount held in escrow account towards acquisition of shares in companies Rs. 9972.13 lakhs (2006 : Rs. Nil). The identification of suppliers as Small Scale Industrial undertaking (SSIs) has been done on the basis of the information to the extent provided by the suppliers to the Company. On this basis, the disclosure of total outstanding dues of SSIs and the names of SSIs shown in Schedule XVII has been made. Micro, Small and Medium enterprises have been identified by the Company on the basis of the information available. Total outstanding dues of Micro and Small enterprises, which are outstanding for more than the stipulated period are given below : Rupees lakhs (i) Dues remaining unpaid as at 31st March, 2007 Principal ............................................................................................................................................................ Interest .............................................................................................................................................................. (ii) (iii) (iv) Interest paid in terms of Section 18 of the Act ............................................................................................... Amount of interest due and payable for the period of delay on payments made beyond the appointed day during the year ........................................................................................... Amount of interest accrued and remaining unpaid as at 31 March, 2007 ...................................................
st

9.

(a)

(b)

1,49.93 0.22 – 0.76 0.98

10. (a)

Provision – Others Rs. 10381.58 lakhs (2006 : Rs. 8302.49 lakhs) includes provision for warranty Rs. 8532.18 lakhs (2006 : Rs. 6321.48 lakhs). This, relates to warranty provision made in respect of sale of certain products, the estimated costs of which is accrued at the time of sale. The products are generally covered under a free warranty period ranging from 6 months to 3 years. Provision for Contingencies Rs. Nil (2006 : Rs. 78.45 lakhs) is in respect of labour demands under negotiations at certain locations of the Company. The movement in above provisions is as follows : Warranty Rupees lakhs Provisions Balance as at 1st April, ........................................... Add : Provision made during the year ................... Less : Utilisation during the year ............................ Balance as at 31st March, ................................... 2007 63,21.48 81,54.59 59,43.89 85,32.18 2006 47,02.40 44,20.09 28,01.01 63,21.48 Contingency Rupees lakhs 2007 78.45 – 78.45 – 2006 33.99 78.45 33.99 78.45

(b) (c)

11. (a)

Sales include : (i) (ii) Export benefits Rs. 4848.98 lakhs (2006 : Rs. 3135.78 lakhs). Cost of items given for sales promotion/as donations Rs. 34.39 lakhs (2006 : Rs. 18.35 lakhs).

(b) 12. (a) (b)

Stock-in-Trade, Property Development Activity, includes completed premises Rs. 313.10 lakhs (2006 : Rs. 407.03 lakhs), which, pending sale, have been given out on leave and licence basis for which fresh agreement is under negotiation. Dividends on other investments Rs. 3329.77 lakhs (2006 : Rs. 1266.38 lakhs) is in respect of current investments. Interest on Government Securities, Debentures and Bonds includes tax deducted at source Rs. 93.52 lakhs (2006 : Rs. 88.59 lakhs) and comprise Rs. 133.24 lakhs (2006 : Rs. 158.53 lakhs) and Rs. 348.61 lakhs (2006 : Rs. 279.16 lakhs) in respect of long term and current investments respectively. Interest received - others includes tax deducted at source Rs. 544.17 lakhs (2006 : Rs. 474.80 lakhs). Profit on sale of investments (net) includes profit on disposal of current investments (net) Rs. 562.00 lakhs (2006 : Rs. 569.96 lakhs), and profit on disposal of long term investments (net) Rs. Nil (2006 : Rs. 257.04 lakhs). 94

(c) (d)

MAHINDRA & MAHINDRA LIMITED

13. Repairs and Maintenance includes machinery spares consumed Rs. 2110.08 lakhs (2006 : Rs. 1905.59 lakhs) but does not include items included under Consumption of Raw Materials and Bought-out Components and amounts charged to salaries and wages (amounts not ascertained). 14. Miscellaneous Expenses include : (a) Amounts paid/payable to Auditors (net of service tax where applicable) : Statutory Auditors Rupees lakhs (i) Audit Fees .................................................................................................. 76.00 65.00 (ii) Company Law matters ............................................................................... 0.20 0.20 (iii) Other Services ............................................................................................ 47.05 22.56* (iv) Reimbursement of expenses : As auditor ................................................................................................... 1.13 1.34 1,24.38 89.10 * Net of service tax of Rs. 8.41 lakhs pertaining to an earlier year. The above amounts exclude Rs. 35.00 lakhs (2006 : Rs. Nil) paid to the Statutory Auditors which is being adjusted against Securities Premium Account being FCCB issue expenses. (b) (c) An amount of Rs. 96.00 lakhs (2006 : Rs. 101.22 lakhs) payable as commission to non-wholetime Directors – Note 16 and Schedule XV. The cost of property sold including movement in work-in-progress in respect of property development activity are as under : Rupees lakhs 2007 Opening balance as on 1st April, ....................................................................................... Add : Construction Cost .................................................................................................... 1,68.66 11.34 1,80.00 Less : Flats Capitalised ...................................................................................................... Less : Cost of Property Development Activity – Work-in-Progress as at 31st March, ..... 1,68.15 0.10 1,68.25 11.75 2006 5,76.55 57.95 6,34.50 – 1,68.66 1,68.66 4,65.84 0.07 0.22 3.53 2.02 Cost Auditors Rupees lakhs 1.99 1.80 – – 1.47 –

15. Profit/Loss on fixed assets sold/scrapped/written off (net) includes an aggregate capital profit of Rs. 799.18 lakhs (2006 : Rs. 2356.64 lakhs). 16. Managerial remuneration for Directors included in the Profit and Loss Account is Rs. 615.14 lakhs (2006 : Rs. 688.79 lakhs) including Directors’ fees of Rs. 9.70 lakhs (2006 : Rs. 9.80 lakhs), perquisites Rs. 119.79 lakhs (2006 : Rs. 193.03 lakhs) and commission Rs. 340.51 lakhs (2006 : Rs. 341.97 lakhs) (See Schedule XV) and excluding charge for gratuity, provision for leave encashment and post retirement medical benefits as separate actuarial valuation figures are not available. The above perquisites include amortisation of Employees Stock Options amounting to Rs. 10.96 lakhs (2006 : Rs. 16.30 lakhs). 95

MAHINDRA & MAHINDRA LIMITED

17. Employee Defined Benefits : Defined benefit plans – as per Actuarial valuation on 31st March, 2007 Rupees lakhs Gratuity (Funded) I. Expense recognised in the Statement of Profit and Loss Account for the year ended 31st March, 2007 1. 2. 3. 4. 5. 6. II. Current Service Cost Interest Expected Return on plan assets Actuarial (Gain)/Loss Payments on account of employees transferred Total expense 13,38.60 13,24.04 (10,80.70) (8,63.66) 66.98 7,85.26 19.66 23.03 – (12.69) – 30.00 Post Retirement Medical Benefits (Unfunded)

Net Asset/(Liability) recognised in the Balance Sheet as at 31st March, 2007 1. 2. 3. 4. 1. 2. 3. 4. 5. 6. 1. 2. 3. 4. 5. 6. Present Value of Defined Benefit Obligation as at 31st March, 2007 Fair Value of plan assets as at 31st March, 2007 Funded status [Surplus/(Deficit)] Net Asset/(Liability) as at 31st March, 2007 Present Value of Defined Benefit Obligation at the beginning of the year Current Service Cost Interest Cost Actuarial (Gain)/Loss Benefit payments Present Value of Defined Benefit Obligation at the end of the year Fair Value of plan assets at the beginning of the year Expected return on plan assets Contributions by employer Actual benefits paid Fair Value of plan assets at the end of the year Actual return on plan assets Funded with LIC 184,42.82 127,03.59 (57,39.23) (57,39.23) 173,07.75 13,38.60 13,24.04 (8,63.66) (6,63.91) 184,42.82 109,65.85 10,80.70 13,20.95 (6,63.91) 127,03.59 10,80.70 100% As at 31 March, 2007 8.20% 9.20% Indian Assured Lives Mortality (1994-96) Modified ultimate Age 21 to 44 - 2.00% Age 45 to 60 - 1.00% 3.00% One percentage point increase in medical inflation rates 9.05 41.55 One percentage point in decrease medical inflation rates (5.80) (39.52)
st

3,21.71 – (3,21.71) (3,21.71) 3,07.85 19.66 23.03 (12.69) (16.14) 3,21.71 – – 16.14 (16.14) – – –

III. Change in the obligation during the year ended 31st March, 2007

IV. Change in Fair Value of Assets during the year ended 31st March, 2007

V.

The major categories of plan assets as a percentage of total plan

VI. Actuarial assumptions 1. 2. 3. 4. 5. Discount Rate Expected rate of return on plan assets In-service Mortality Turnover Rate Medical premium inflation

VII. Effect of one percentage point change in the assumed medical inflation rate 1. 2. Effect on the aggregate service and interest cost of Post Employment Medical Benefits Effect on the accumulated Post Employment Medical Benefits obligations

96

The Company had allotted 55. The options may be exercised on the date of vesting and on specified dates within 5 years from the date of vesting.) 616. of stock options Weighted average exercise price (Rs. 2007 Options vested but not exercised on 31st March. such as supply and demand in the employment market. 24 Months.65 100.59 lakhs Gross (2006 : Rs. In respect of options granted prior to 29th September.85 lakhs Gross (2006 : Rs.MAHINDRA & MAHINDRA LIMITED Basis used to determine expected rate of return on assets : Based on expectation of the average long term rate of return expected on investment of the fund. except in case of the last date of exercise. where the employee can exercise all the options vested but not exercised till that date. Options granted on or after 29th September. Nil) arising from certain refinements in the actuarial assumptions and accrual of Post Retirement Medical Benefits on an actuarial basis Rs.63. 2007 Average share price on the date of exercise of the options are as under Date of exercise 30th May. the Company has (i) (ii) Accounted for Rs. Read with the Accounting Standard Board Guidance on implementing AS 15. 2006 97 20. During the year the Company has adopted Accounting Standard (AS) 15 (revised 2005) Employee Benefits. 2006 10th June. to the Mahindra & Mahindra Employees’ Stock Option Trust set up by the Company. 2006 5th December. 2006 Options granted during the year Options forfeited/lapsed during the year Options exercised during the year Options outstanding on 31st March. where the employee can exercise all the options vested but not exercised till that date. 307.219 ordinary (equity) shares in the year ended 31st March.06 345. 2006 vest in 4 equal instalments on the expiry of 12 Months.921 48. The trust holds these shares for the benefit of the employees and issues them to the eligible employees as per the recommendation of the Compensation Committee.210 28. 2002. The estimate of future salary increase.93 lakhs) as a reduction from Revenue Reserves. except in case of the last date of exercise. 973.) 196. Summary of Stock Options No.156 Average share price (Rs.78 421. 36 Months and 48 Months from the date of grant. considered in actuarial valuation.176 18. Number of vested options exercisable on each specified date is subject to a minimum of 50 or number of options vested whichever is lower. during the estimated term of obligation.84 lakhs being on account of Provision for Gratuity Rs.00 850.33 304.31.60 lakhs. 18.735 1. Nil) and the resultant tax credit thereon is Rs. The number of options exercisable in each tranche is between the minimum of 100 and a maximum of 1/3rd of the options vested. Employee Benefits (revised 2005) issued by The Institute of Chartered Accountants of India in May 2007.03 . 2006. the equity settled options vest one year from the date of the grant and are exercisable on specified dates in 3 tranches within a period of 5 years from the date of vesting. 1918.64. Accounted as prior period adjustment (net of tax) Rs.92.35 lakhs (Net of Tax of Rs. 8090. 4104. take account of inflation. 2584.52 Options outstanding on 1st April.16 616. promotion and other relevant factors.50. The compensation costs of stock options granted to employees are accounted by the Company using the intrinsic value method.24.200 9.88 544. seniority.

the accounting value of the options is accounted as deferred employee compensation.90 lakhs (2006 : Rs 151.12 yrs 4.55% 2. 138. The estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March. after adjusting for reversals on account of options lapsed. before the CESTAT.00 Rs.87 lakhs and the basic and diluted earning per share would have been lower by Rs. bonus. In earlier proceedings. 0.50 . Similarly.00 590. The Company is confident that it would succeed in the case and the Company’s stand that the Commander and Armada Vehicles are 10-seater vehicles would be upheld. Excise and Service Tax Appellate Tribunal (CESTAT) has also by its order dated 19th July. Navi Mumbai. Had the Company adopted fair value method in respect of options granted on or after 1st April. the Company does not expect any liability on this account.41% 2. Mumbai as also the Collector Central Excise (Appeals).51 and Rs. 2005 upheld this classification.57 per share respectively. along with stay application. 616. Profit after tax lower by Rs. which is amortised on a straight line basis over the period between the date of grant of options and eligible dates for conversion into equity shares. 61. 20. 29.50 Years 35.66% 616. 2005. 2007 is Rs.Rs. has held that these vehicles could not be classified as 10-seaters and as such attracted a higher rate of excise duty.00 680.Rs.62 lakhs) being the amortisation of deferred employee compensation.020 The fair value of options granted during the year on 31st July.00 lakhs in connection with the classification of Company’s Commander range of vehicles. 22616.87 lakhs. the employee compensation cost would have been higher by Rs.10 Grant dated 29-Sep-06 7. 215. salaries. Range of exercise price Number of options Weighted average remaining life 1. 2005. 361.66% 620. The Commissioner of Central Excise (Adjudication). 36391. Mumbai had upheld the classification of these vehicles as 10-seaters.10 In respect of Options granted under the Employee Stock Option plan. confirming the demand made on the Company for payment of differential excise duty (including penalty) of Rs. passed an order on 30th March. 2006 is Rs.62% 2.Rs.748 34. 824. which was received by the Company on 4th April. certain statutory/expert bodies have also confirmed the concerned vehicles to be 10-seater vehicles. in accordance with guidelines issued by SEBI. 30411.56% 3. 2007. 2005 passed by the Commissioner is unsustainable in law and has filed an appeal against this order.40. The department’s Statutory Appeal against this order has been admitted by the Supreme Court.296 15.00 Rs.67. Whilst the Company had classified the Commander range of vehicles as 10-seater attracting a lower rate of excise duty. As such.00 . 212.00 2. Navi Mumbai. 2006 & 29th September.112 9.00 Years 35. during the years 1991-1996. 824.32 respectively. 2005. etc. The Customs. 172. the Collector of Central Excise. 98 .35 & Rs. 227. The Company has been legally advised that the order dated 30th March.67 yrs Rs.53 lakhs). wages.50 lakhs (2006 : Rs.57 yrs 6.50 Rs.MAHINDRA & MAHINDRA LIMITED Information in respect of options outstanding as at 31st March.89. 620.00 . the Commissioner of Central Excise (Adjudication). includes Rs. 0.16 yrs 4. Consequently. 19. The fair value has been calculated using the Black Scholes Options Pricing Model and the significant assumptions made in this regard are as follows : Grant dated 31-Jul-06 Risk free interest rate Expected life Expected volatility Expected dividend yield Exercise price Stock Price 7.

The final hearing in the matter is awaited. (ii) (iii) (c) (d) Uncalled liability on equity shares partly paid Rs.. 11317..20 lakhs (2006 : Rs...00 lakhs).55 crores and imposed a penalty of Rs. Claims on capital account : Rs..83 lakhs) [excluding depreciation Rs.05..43 lakhs (2006 : Rs. the Commissioner of Central Excise.91 lakhs).49 lakhs (Net of Tax : Rs.00 lakhs (2006 : Rs.11 lakhs) [2006 : Rs.. 2427.. The Tribunal has in this case too granted an unconditional stay against the order. relating to issues of deductibility and taxability in respect of which the Company is in appeal and exclusive of the effect of similar matters in respect of assessments remaining to be completed : — Income tax (ii) : Rs.00 2007 Rupees lakhs 0.00 50.26 lakhs (2006 : Rs.23 lakhs) [2006 : Rs.. 23.00 lakhs (2006 : Rs.18 lakhs (Net of Tax : Rs.80 lakhs (2006 : Rs.... Other Matters (excluding claims where amounts are not ascertainable) : Rs... The credit on account of exchange differences in respect of forward exchange contracts. but the Income tax Department is pursuing/likely to pursue in appeal/reference and exclusive of the effect of similar matters in respect of assessments remaining to be completed : — Income tax matters : — Surtax matters : Rs.62 lakhs (Net of Tax : Rs. 12. (b) 1..80 lakhs). 4962.. 1050..20 lakhs).23 lakhs). 1050.. 14053. aggregate Rs. 21.MAHINDRA & MAHINDRA LIMITED During the current year..... 118..90 lakhs debit)..51 lakhs)].05. 52. 171.35 46. 13387....35 lakhs). 20. Items in respect of which the Company has succeeded in appeal. 341.17..00 lakhs in respect of Company’s Armada range of vehicles manufactured during the years 1992 – 1996. 8696. on the same grounds as adopted for Commander range of vehicles... 733. Nasik confirmed a demand of Rs..38 lakhs (Net of Tax : Rs..70.00 52. 1026..07 lakhs).95 lakhs (2006 : Rs. 22. 99 .. 514.. Taxation matters : (i) Demands against the Company not acknowledged as debts and not provided for.. 5237.. 12. 14587.23 lakhs (2006 : Rs.. The net difference in foreign exchange credited to the Profit and Loss Account is Rs...35 27.. 9942..00 2007 Rupees lakhs For employees . 4012.. to be recognised in the Profit and Loss Account or capitalised in subsequent accounting periods is Rs. 3796..00 2006 Rupees lakhs 0..94... (e) Bills discounted not matured Rs. 40. 24. including certain expenditure based on allocations made by the Company.45 lakhs (2006 : Rs. Contingent Liability : (a) Guarantees given by the Company : Amount of guarantees Outstanding amounts against the guarantees 2006 Rupees lakhs 1. 277.. Rs.. 118..63 lakhs (2006 : Rs.. 6266.. For other companies .00 Claims against the Company not acknowledged as debts comprise of : (i) Excise Duty.24 lakhs)]..53 lakhs)].95.. Sales Tax and Service Tax claims disputed by the Company relating to issues of applicability and classification aggregating Rs.. 11535.. Research and Development expenditure debited to the Profit and Loss Account. 2097.

...........08...............32 188.294 38....... (b) (c) 25.. Nil (2006 : Rs...............55......75............57......... Amount used as the numerator for diluted earnings per share (Rupees lakhs) ........) ....15) 1...... Amortisation of liability and other retirement benefits made under Voluntary Retirement Schemes aggregating to Rs..... Earnings per Share : 2007 Amount used as the numerator – Balance of profit for 2006-2007 (Rupees lakhs) .............51..156 25....00 2006 Rupees lakhs Net Deferred tax liability .....90...43 lakhs (2006 : Rs...78..............07..........84 21.......................00 lakhs).........529 24.......33........58.....279 45.....78 168..00 17...29 9......................65 lakhs)....61..00 – – – 7.90 lakhs (2006 : Rs.... 2007 are as under : 2007 Rupees lakhs Deferred tax liability : (i) (ii) On fiscal allowances on fixed assets ...............................18 lakhs) comprise of : (a) Profit on sale of certain long term investments Rs.95.................. 56. Basic Earnings per share (Rs...18..........44.00 2.....00 190........38............. 2936... Exceptional items of Rs.... 182......11..... 4840...123 1............... Nil)...................90 18................. The components of Deferred tax liability and assets as at 31st March.....01..52...93 100 ........... 1..64.......... Provision for Doubtful debts/Advances ... Others .39.....20 5..............................MAHINDRA & MAHINDRA LIMITED 24.50..) (Face value of Rs..... A profit of Rs Nil (2006 : Rs........96.............49 1...044.........32......... Provision for Post Retirement Medical Benefits ................. 12835.....65..... 596... 16757..52..51..................50 23............................................068....66.......... 12198.........86 1..........47 lakhs (2006 : Rs.......... Weighted average number of equity shares used in computing diluted earnings per share .62 146......... Diluted Earnings per share (Rs....... 637......00 lakhs) arising out of the transfer of the right to carry on LCV business along with the congeries of rights therein and intellectual property rights to its subsidiary Mahindra International Limited for a consideration of Rs................................ 10 per share) ...........94 2006 857...................765 206.. 4840..........93 858.......... 21001........00 187..76....... 19.30............ Premium on redemption of Zero Coupon Convertible Bonds ..84.......16............ Effect of potential ordinary (equity) shares on conversion of bonds/debentures ......45 13..07 34.....44..............................29............83 lakhs) after considering a write back of provision for diminution in value of investment and other assets Rs.......................10...08.................................00 26.......................68 67.........65 (24...42 22............. Weighted average number of equity shares used in computing basic earnings per share ...18... (Gain)/Loss on difference in exchange on bonds (Rupees lakhs) ..............15 40.................52 Deferred tax assets : (i) (ii) (iii) (iv) (v) (vi) Provision for Compensated absences ... Others ..... Provision for Gratuity ................................06 lakhs (2006 : Rs...00 43.............

. The borrowing of JPY 53904 lakhs (2006 : JPY 56864 lakhs and US$ 100 lakhs) has been completely hedged using a currency swap structure converting the liability into a full fledged Rupee liability.. ......26 lakhs............... CHF 0........... The Foreign Currency Exposures not hedged by a derivative instrument or otherwise as on 31st March......56 lakhs.17....... The Company has made an issue of US$ 1000 lakhs in the form of Foreign Currency Convertible Bonds in May....... .............68..... DKK 0...... made during the year (Net) (including provision of Rs... AUD 0..50) 29................... SGD 0..... SAR 1........23 lakhs.............. 2006......42 lakhs and Payables of USD 135.... 2003)... USD 1381.. 2003)......44 lakhs.......14 lakhs............. AUD 14. Such outstanding forward contracts have been booked for fixing of exchange rates between cross currencies like Euro/JPY and the USD. Bonds of value US$ 2027.....................98 lakhs (2006 : Rs.......70 lakhs) are outstanding and have not been hedged.MAHINDRA & MAHINDRA LIMITED 27.14 lakhs.. SEK 3...................... ZAR 57...80 lakhs.. 1230.....................52 lakhs. SEK 1........00 lakhs (2006 : US$ 352...... (2006 : Receivables of EURO 4........... Nil) pursuant to the Scheme of Arrangement approved by the Hon’ble High Court of Bombay on 12th December..11 2006 Rupees lakhs 7....... Nil (2006 : Rs. 2007 are – Receivables of EURO 402....98 – 12.00 lakhs) pursuant to the Scheme of Arrangement approved by the Hon’ble High Court of Bombay on 12th December........ Provision for doubtful debts and advances for the year comprises : 2007 Rupees lakhs Provision for doubtful debts and advances made during the year (Net) (including Rs......14 lakhs........ 2004 & US$ 2000 lakhs in the form of Foreign Currency Convertible Bonds in April..........87 lakhs......50) 2006 Rupees lakhs 10.... RMB 1....... 101 .30... Provision for diminution in the value of long term investments for the year comprises : 2007 Rupees lakhs Provision for diminution in value of investments....................... GBP 8.......... JPY 220...........87 lakhs.. The amounts hedged are JPY 3500 lakhs and Euro 20 lakhs (2006 : JPY 2500 lakhs and Euro 35 lakhs) The Exports receivables of the Company have been hedged in part by forward contracts US$ 272...... The borrowing of US$ 200 lakhs (2006 : US$ Nil) has not been hedged............. The outstanding derivative instruments as on 31st March.......44 81. Total ......73 lakhs (2006 : US$ 305 lakhs) and partly US$ Nil (2006 : US$ 120 lakhs) by a derivative structure in the form of “Range Forward”........................... 2007 : The Company has taken forward contracts to hedge exposures arising out of trade payables in foreign currency..............43 lakhs and SGD 0.. Less: Transfer from Investment Fluctuation Reserve pursuant to the above Scheme of Arrangement .. Total ....87...........01 lakhs and Payables of CHF 0.........................68....11 28....40 lakhs.....71............... – 7...98 (9. The Company has outstanding borrowings of JPY 53904 lakhs and US$ 200 lakhs (2006 : JPY 56864 lakhs and US$ 100 lakhs) under the External Commercial Borrowing facility.00 (22.. AUD 12.......42 lakhs. Out of these issues..94 lakhs...09 lakhs.. Less : Transfer from Investment Fluctuation Reserve pursuant to the above Scheme of Arrangement ......................44 – 81...71... GBP 1.........16 lakhs......15 lakhs). 1068........... 10.....

Related Party Transactions : (a) (i) Related parties where control exist : Subsidiaries : Sl. 2007) Mahindra Infrastructure Developers Limited (upto 10th October. 43. 57. 30th March. 49.f. Mahindra Engineering & Chemical Products Limited Mahindra Ashtech Limited Mahindra Logisoft Business Solutions Limited Automartindia Limited Mahindra USA Incorporated Mahindra Gujarat Tractor Limited Mahindra (China) Tractor Company Limited Mahindra Shubhlabh Services Limited Mahindra & Mahindra South Africa (Pty) Limited Mahindra Europe s. 2006) Schöneweiss & Co.e.e.e. 61. 14. 2007) PT Tech Mahindra Indonesia (w. Limited Bristlecone Limited Bristlecone Incorporated Bristlecone UK Limited Bristlecone India Limited Bristlecone (Singapore) Pte. 9.e. 30th March. 29th November. 65. 75. 56. 2007) Mahindra World City (Maharashtra) Limited (upto 10th October. 2006) Mahindra Forgings Mauritius Limited (w. 1st January. 2. 22nd January. 3. 36. 27th September. 22.e. 2007) Mahindra World City (Jaipur) Limited (upto 10th October.r.e. 68.f.f. 17. 6th January. 2007) MHR Hotel Management GmbH (w. Hunninghaus GmbH & Co. 7th December. 63. 41. 2007) Fried. 2006 & w.e. 2006) Falkenroth Grundstucksgesellschaft GmbH (w. 64. 31. 2006) Mahindra Forgings Overseas Limited (w. 30th March. No. 72. 54. 5th December. 58.e.f. Name of the Company Stokes Group Limited Jensand Limited Stokes Forgings Limited Stokes Forgings Dudley Limited Plexion Technologies (India) Private Limited Plexion Technologies (UK) Limited Plexion Technologies GmbH Plexion Technologies Incorporated Mahindra Gesco Developers Limited (upto 10th October.f. 5th October.f.e. 71. 28. 2006) CanvasM Technologies Limited (w. 30th March.MAHINDRA & MAHINDRA LIMITED 30. 2006 & w.f. 5th October. 2006 & w. 52. 50. Hunninghaus GmbH (w. 30th March. 2007) Mahindra Forgings Limited (upto 21st May.e. 45.e. 2006) (formerly known as Mahindra Automotive Steels Limited) Sl.e. 7. 24. 28th April. 76.e. 53.f. 35.e. 38. 39. 62.f. 59. 51. 18. Name of the Company 1. Mahindra-BT Investment Company (Mauritius) Limited Mahindra Intertrade Limited Mahindra Steel Service Centre Limited Mahindra Middleeast Electrical Steel Service Centre (FZC) Mahindra Holdings & Finance Limited Mahindra Consulting Engineers Limited (formerly known as Mahindra Acres Consulting Engineers Limited) Mahindra Holidays & Resorts India Limited Mahindra Holidays and Resorts USA Incorporated NBS International Limited Mahindra Ugine Steel Company Limited Mahindra & Mahindra Financial Services Limited Mahindra Insurance Brokers Limited Tech Mahindra Limited Tech Mahindra (Americas) Incorporated Tech Mahindra GmbH Tech Mahindra (Singapore) Pte. (w.e.e.f. 2007) Fried.f. GmbH (w. 2006 & w.f. 20. Mahindra Engineering Design & Development Company Limited Mahindra SAR Transmission Private Limited Mahindra Overseas Investment Company (Mauritius) Ltd. 1st January.f. 30. 1 st January. 67.e. 6. 2006) Mahindra Forgings International Limited (w.f. 19. 48. 2007) Mahindra World City Developers Limited (upto 10 th October. 30th March. 29th November. 8. 29th November. 5.e.e. 74. 2006 & w. 16. 10. 21.e. 2006) JECO Holdings AG (w. 15. Limited Tech Mahindra (Thailand) Limited Tech Mahindra Foundation Tech Mahindra (R & D Services) Limited Tech Mahindra (R & D Services) Incorporated Tech Mahindra (R & D Services) Pte. 2006) Mahindra Forgings Global Limited (w.e.f.f.f. 69. 12th March. KG (w. 33. 4.e. 60. 2007) DGP Hinoday Industries Limited (w. 2007) Mahindra Integrated Township Limited ( from 4th May. 2006) Gesenkschmiede Schneider GmbH (w.f. 11. No.e. 2006) JECO-Jellinghaus GmbH (w.f. 47.f. 26. 2007) iPolicy Networks Limited (w.f. 29th November. 27. 2006 to 10th October.f. 40. 23.l.f. 2006) CanvasM (Americas) Inc. 37. 2006 & w. 25. 70. 44. Limited Bristlecone GmbH Mahindra Renault Private Limited Mahindra International Limited 102 . 2006) Falkenroth Umformtechnik GmbH (w. 21st March. 34. 29. 29th November. 73.f.f. 55. 42. 13. 12.e. 46. 11th August.e. 66. 2007) Mahindra Stokes Holding Company Limited (w. 32.

...13....K.......12) 55......... 47...........55) Services ...... Mahindra Composite Limited (formerly known as Siroplast Limited) Mahindra Construction Company Limited Owens Cornings (India) Limited Mahindra Water Utilities Limited (ii) Joint Ventures : Sl............. 125.... 226.82......84..............27......... 22nd May.. Anand Mahindra Mr...76) 182.... 1.....01 (439. 2007) Sl. 61.. 4..........89 (68........28....... Mr..........70) (25..............66) 0....71. No..20 (16..24) (-) (-) 5.............28 (45.69) (-) 39..........64 (41.... 609......... Name of the Company 1.............08.. No...MAHINDRA & MAHINDRA LIMITED (b) (i) Other parties with whom transactions have taken place during the year................ Nanda (c) The related party transactions are as under : Rupees lakhs Nature of Transactions Subsidiaries Associate Companies Joint Ventures Key Management Personnel Sl............14) Sales/Redemption ......83..... Investments : Purchase .. Executive Directors ............ 3..50 (253......89) Services ....25. Name of the Company Mahindra Forgings Limited (w................. No..64 (13..39) (-) 2........ 6.............52..........02 (-) (-) (-) (-) (-) 2......36..86....e......62) Fixed Assets .....00 (244.... B............. 2006) (formerly known as Mahindra Automotive Steels Limited) Mahindra Gesco Developers Limited (from 11th October....69 (5.. A.....86........ 2.....04 (-) (0.. 2..................... Name of the Company 1.............70.......................49......40 (0.. 602......... Doshi Mr...... (iii) Mahindra Sona Limited Key Management Personnel : Vice Chairman and Managing Director ........ Associates : Sl.... Purchases : Goods ......55.46.40 (29. 30.13..........N................ 5....28....15) (-) (-) (-) 3.. Sales : Goods ...................89) Fixed Assets .......61........89 (-) (-) (-) (-) (-) (-) 103 .......................65....f........ 2006 to 29th March. No.........................

..66) (-) (-) (-) (-) 6................41) Dividend distributed .. Finance : Inter Corporate Deposits given ...00) Interest received ......60 (6..............79 (5..... 40...... Deputation of Personnel : From Related Parties ....44.86........ 5......02 (3....79...... 9........67 (4.......25................04........ 2.... No......... 25.......29...... 32.71.......................35 (3........22 (-) 4. Share Application Money (Net) ..16.............10 (-) (-) (-) 104 ........83.................46 (2.............. 3...51) 6.... 114....... 38.................60) (-) 5......... 15..........02..........17) (-) (-) (-) (-) 8..00) Inter Corporate Deposits refunded by parties ......... …… (3...94 (42........01... 4.....00) (31... Provision for diminution in value of other assets written back .....11) Other Expenses ..........00) (-) (-) 7...09...................85 (1.69 (36.. 29.MAHINDRA & MAHINDRA LIMITED (c) The related party transactions are as under : (Contd.....75.......90....) Rupees lakhs Nature of Transactions Subsidiaries Associate Companies (-) Joint Ventures Key Management Personnel (-) Sl..00) 9...39) Dividend received .......... Other Transactions : Other Income ..............20) 1.....70..........................61......10 (68....................60 (9...27) (-) (2....35. (1......28 (5..00 (8.........43) (-) (45....47......00.......32) 0.............70) To Related Parties ....81....29) (45.......11..25) Security Deposits Accepted .......... Guarantees & Collaterals given ......63) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (1...73............

.............61..........67......38) (80....59..... .... 28...63...........66) 16. 17....47) 76.63 (23.00 (6...37..32....... (-) 12...68........28..........16....61.......66) 15...00.............94 (84.. 24....80 (-) 2...00) 10...68) (-) (-) (-) Reimbursements made to parties .....00) Joint Ventures Key Management Personnel (-) (-) (-) (-) Sl... Outstandings : Payable ......42 (4.00) 11......43) (-) (2......................98.............. No..................82 (33..... The previous year figures are suitably regrouped...... 105 ....25) (-) (-) (-) (-) (-) (-) (-) (-) (-) 2..94............74 (8................58) Receivable ..... Provision for diminution in value of other assets ........53.... 237...06 (5.59...46 (2......73 (0.00) 3...59 (2.00....66 (1....20) 1.. 5....... Stock Options .. 1.79 (2...61) 4........ Loan Refunded by Key Management Personnel ..35...) Rupees lakhs Nature of Transactions Subsidiaries Associate Companies 34.........42) (-) (-) (-) 6..........07 (2...56............... Share Application Money......43) 14.........08...47 (5.......33.......85 (11..........15..89 (8.76) Guarantees & Collaterals given .................. (-) Previous year’s figures are given in brackets......17 (1.32) (-) (-) (-) 9...74) Advance given .. Provision for doubtful debts/advances .. Dividends .......50...........22........86) (-) (-) (-) 4..94......75 (3.....17........65....... 351.MAHINDRA & MAHINDRA LIMITED (c) The related party transactions are as under : (Contd.45..71.71 (6........76 (18..62......08) (-) (-) (-) 4.......00) Advance refunded . 15... (-) 13..................96......20................69........... Managerial Remuneration ... 19..... 9.61...96 (187... (-) 17......45) Inter Corporate Deposits given .00 (27.71) (8..41) 2.20 (47.39.68.....31) 18...98. 46.. Reimbursements received from parties ..16..............

MAHINDRA & MAHINDRA LIMITED

The significant related party transactions are as under Rupees lakhs S.No. Nature of Transactions 1. Purchase – Goods Subsidiaries Mahindra Intertrade Ltd. Mahindra SAR Transmission Pvt. Ltd. Amount 159,05.22 (167,26.85) 29,19.07 (31,65,52) Associate Companies Mahindra Ugine Steel Company Ltd. Mahindra Composite Ltd. Amount (4,16.07) (1,49.63) Joint Ventures Mahindra Sona Ltd. Amount 39,27.28 (45,86.66)

Mahindra Forgings 53,61.81 Ltd. (36,57.22)

2.

Sale – Goods

Mahindra USA Inc. Mahindra International Ltd. Mahindra & Mahindra South Africa (Pty) Ltd.

175,68.74 (194,00.72) 114,92.36 (44,62.63) 196,18.64 (119,56.10)

Mahindra Sona Ltd.

(0.39)

3.

Investment – Purchase

Mahindra International Limited Mahindra Renault Private Limited Stokes Group Limited

(52,33.12) 103,21.42 (26,25.50) (28,96.55) (32,61.61) 286,50.11 (-) 78,15.97 (-) 25,00.00 (-)

Mahindra Forgings 48,50.00 Limited (80,00.00) Mahindra Gesco 134,20.89 Developers Ltd. (-)

Plexion Technologies (India) Private Limited Mahindra Forgings Overseas Ltd. Mahindra Forgings Mauritus Ltd. Mahindra Holdings & Finance Ltd.

4.

Investments – Sales

Mahindra Holdings & Finance Ltd. Mahindra Stokes Holding Company Limited

4,96.65 (-) 40,85.55 (-)

5.

Investments – Redemption

Mahindra Ugine Steel Company Limited Mahindra Gesco Developers Limited Mahindra Holdings & Finance Ltd.

(16,61.76) 55,00.00 (-) 25,00.00 (-)

6.

Share Application Money(Net)

Mahindra Overseas Investment Company (Mauritius) Limited

15,71.94 (1,32.82)

Mahindra Forgings Limited (48,50.00)

106

MAHINDRA & MAHINDRA LIMITED

The significant related party transactions are as under (Contd.) Rupees lakhs S.No. Nature of Transactions 7. Advances Given Subsidiaries Mahindra Forgings Overseas Limited Mahindra Forgings Mauritius Limited 8. Inter Corporate Deposits given Mahindra Shubhlabh Services Limited Mahindra International Limited Mahindra Engineering Design& Development Company Limited Plexion Technologies (India) Private Limited Mahindra Overseas Investment Company (Mauritius) Ltd. 9. Inter Corporate Deposits refunded by parties Mahindra Intertrade Limited Mahindra Holdings & Finance Limited Mahindra Shubhlabh Services Limited Mahindra International Limited Mahindra Engineering Design & Development Company Limited Mahindra Overseas Investment Company (Mauritius) Ltd. 10. Guarantees given Mahindra Overseas Investment Company (Mauritius) Limited Amount 119,37.55 (-) 118,15.52 (-) (2,50.00) (1,25.00) (2,40.00) Associate Companies Amount Joint Ventures Amount

(75.00) 32,79.60 (-)

(1,50.00) (2,10.00) (2,50.00) (1,25.00) (2,40.00)

Mahindra Construction Company Limited

(45.00)

32,79.60 (-)

32,25.00 (8,70.00)

Previous year’s figures are given in brackets. 31. Joint Venture Disclosure i) Jointly Controlled Entities by the Company : Name of the Entity a) b) Mahindra Sona Limited * ............................................................................ PSL Erickson Limited* ................................................................................ Country of Incorporation India India % Holding 29.77 % 18.06 %

* Shareholding is through a subsidiary, Mahindra Holdings & Finance Limited.

107

MAHINDRA & MAHINDRA LIMITED

ii)

Interests in the Assets, Liabilities, Income and Expenses with respect to Jointly Controlled Entities. 2007 Rupees lakhs I ASSETS 1 2 3 Fixed Assets ............................................................................................................. Investment ................................................................................................................ Current Assets, Loans and Advances a b c d 4 II Inventories ........................................................................................................ Sundry Debtors ................................................................................................ Cash and Bank Balances ................................................................................ Loans and Advances ....................................................................................... 4,05.76 11,91.10 2,41.53 1,15.21 40.74 3,86.71 10,58.97 1,67.32 1,25.73 23.84 4,86.98 3.38 4,78.32 3.38 2006 Rupees lakhs

Deferred Tax – Net ...................................................................................................

LIABILITIES 1 Loan Funds a b 2 Secured Loans ................................................................................................. Unsecured Loans ............................................................................................. 2,23.34 50.48 3,19.63 50.48

Current Liabilities and Provisions a b Liabilities ........................................................................................................... Provisions ......................................................................................................... 6,08.68 2,68.20 6,14.99 2,51.47

III

INCOME 1 2 Sales ......................................................................................................................... Other Income ........................................................................................................... 49,92.15 1,13.89 41,39.19 1,20.68

IV

EXPENSES 1 2 3 4 5 Raw Materials, Finished and Semi Finished Products ............................................ Excise Duties ............................................................................................................ Manufacturing, Selling Expenses, etc. ..................................................................... Depreciation/Amortisation ........................................................................................ Provision for Taxation ............................................................................................... 28,55.01 4,11.43 10,50.58 56.71 2,39.80 24,57.74 3,38.88 8,39.14 52.23 1,94.83

V

OTHER MATTERS 1 2 Contingent Liabilities ................................................................................................ Capital Commitments ............................................................................................... 3,01.79 11.60 2,82.09 1.56

32. Additional information pursuant to the provisions of paragraphs 3(i)(a) and (ii), 4C and 4D of Part II of Schedule VI to the Companies Act, 1956 - See Schedule XVI. Previous year’s figures are indicated below the current year’s figures. 33. Additional information pursuant to the provisions of Part IV of Schedule VI to the Companies Act, 1956 - See Schedule XVIII. 34. Previous year’s figures have been regrouped/restated wherever necessary.

108

etc...........83 — 17..55 5.65 6...........................................332...........................90 28.....78 1......65 (22.53 6........39 Total..97.............................01.................................17.....11 — — 68......10 2006 Rupees lakhs 1..62 171.............99 876..60 2... Commission payable to the non-wholetime Directors restricted to . 1......... of Fixed Assets (Net) . Profit on sale.............22 109 .... 1956 for the year ended 31st March..89........ 1956 (Net) Loss on sale.......92..........................58.....37... Commission payable to the wholetime Directors restricted to .......09 6...291..42 1.....75 1.00 415...... 209.............40.............51 96................00 2007 Rupees lakhs 1.....43 — 233.........40.. Net reduction in the fair value of current investments ......36....671.. Provision for diminution in value of long term investments (Net) ....67....90.71...............72....... 2007 Rupees lakhs Profit before Taxation as per Profit and Loss Account ............................099.........44. Voluntary Retirement Schemes amortisation included in Exceptional Item ................. 1956 (Net) Profit on sale of LCV business together with congeries of rights .....................88......13 1.437................15....05 133...........13 2................07 1......62.... Profit on sale of Investments (Net) .........52 Less : : : : : : Depreciation under Section 350 of the Companies Act.. Add : : : : : : : : Depreciation/Amortisation charged in the Accounts .........40 48. etc.MAHINDRA & MAHINDRA LIMITED SCHEDULE XV Computation of Net Profit in accordance with Section 309(5) of the Companies Act.. Loss on sale of Fixed Assets as per Section 349 (3)(d) of the Companies Act...84....50....96. Provision for doubtful debts and advances (Net) ........ Directors’ Remuneration including Directors’ fees ...................... Prior Period Adjustments Gross of Tax [Refer Note 17] ........82.50..50) 192........... of Fixed Assets (Net) ..................14 7..80........49 200......95..63 2.............79 81........18..00........... Profit on sale of Fixed Assets as per Sec 349 (3)(d) of the Companies Act.....68............ 175..........................98 175...44 4............68.....17..........44 — — — 338...................34............. 1956 .............................

..... Petrol/Diesel Engines 15 HP to 80 HP [Note (i)(c) below] Industrial Petrol Engines ......... Nos............. Nos.. 190 (2006 : 172) vehicles were produced and sold using such third party facilities and are included in item (A) 1(a)................................ 2............... The information given against item 5 is in respect of such petrol/diesel engines transferred to the Marketing Unit for sale......21.. Sets ..........02.......000 1....000 54........ 1956.....202 83....10...... Agricultural Tractors [Note (vi) below] ... Nos.000 1........ 11 12 D.... Nos.278 8........34.. G.05.... 10 Internal Combustion Piston Engines .01.............. b..10..973 27...000 1.......... [Also see note (vi) below].....000 80...... 1...... Nos................000 50. Nos.00...76.896 34....600 1. Export benefits ... G... Tractor Skids .000 5....141 1.......971 1.......25....... 9...000 1.. Nos... (A) PARTICULARS IN RESPECT OF GOODS MANUFACTURED : Unit of Measurement Licensed Capacity per annum [Note (i)] Installed Capacity per annum [Note (i)] Actual Production [Notes (ii) & (iii)(a)] Sl....708 2..000 500 500 2......10...38.......... 5....... Within the overall licensed capacity in item 1 above.. The installed capacity mentioned against item no.. 2. 1..000 39..877 1....000 36.....317 1.....MAHINDRA & MAHINDRA LIMITED SCHEDULE XVI Additional Information pursuant to the Provisions of Paragraphs 3 (i)(a) and (ii)..........000 500 500 1. Nos....000 1...000 1.38..000 Assembly at 3rd Party Locations 24.. Nos...........000 1. 4.....35.......56..25...000 petrol/diesel engines and 4000 tonnes grey iron castings.............. (d) (e) (ii) Actual Production includes production for captive consumption..645 3.. Three Wheelers ..69..... as the case may be.000 5.... On Road Automobiles having four or more wheels such as light...................92.000 50...... jeep type vehicles and passenger cars covered under sub heading (5) of Heading (7) of First Schedule [Note (iv) below] ................... the Government pursuant to the schemes of de-licensing. The licensed capacities include/represent........00.. a.....000 33... a.... Class of Goods No.........000 - 1...378 36.25..000 2.. for sale [Notes (iii)(a) and (b) below] ...449 2.... Agricultural Implements . of Part II of Schedule VI to the Companies Act.. Nos.000 2...58..00... medium and heavy commercial vehicles. the Company is permitted to manufacture for outside sale 10............. registrations granted and Industrial Entrepreneur Memorandum filed with..892 22.... Nos.......665 1..... Internal Combustion Engine .... 4C and 4D............69..085 - - * Used for Captive Consumption Notes : (i) (a) (b) (c) The installed capacity has been certified by Presidents... 8.. Sets ......... 6.....265 438 1...................367 3........ 7......... (A) 1(a) above includes 42000 (2006 : 18000) for production of vehicles for third parties....000 1.............076 92...... Nos..10...000 80..87.. which the auditors have relied on without verification as this is a technical matter............ Parts and accessories of motor vehicles ... Bullet proof work and fabrication on base vehicles has been carried out at third party facilities..............500 These are manufactured against spare capacity under 2(a) These are manufactured against spare capacity under 1 and 2 above 1............ b.............04... Manufactured and Purchased Parts and Accessories .... and duly acknowledged by..... D.............000 1..... 110 ..

10.39 106.91.000 to 60.76 Total..89 20. in respect of the property development activity.646.1956.11 2.74.302 5. (b) and (c) thereof.797 81.72.58.473 5.448.59.186 1.637 3. the Company is of the view that.87 (iii) (a) (b) The actual production disclosed against manufactured components/sub-assemblies/steel blanks is the number of such components transferred during the year to the Marketing Unit/Spare Parts Stores for sale or sold otherwise. an Industrial License will be issued on fulfillment of the conditions mentioned in the Letter of Intent.95 4.43 1.03 318.19.94 16.65 3. The bifurcation of stocks/sales into manufactured and bought-out parts is not practicable.093.80.35.59.01 16.17.57. With regard to clause 3(ii) of Part II of Schedule VI to the Companies Act.21.53.21 175.19.556 6. but it is an ‘other’ company falling under sub-clause (e) thereof.43 85.10 137.312 1.44 379 335 28 6 290 66 179 1 - 62.48.67.157 7.12 2.00.75.38.16.44 3.98 132.02.997 33..901.163 5..411 281 2. the Company is not a ‘manufacturing’. 111 (vi) .38. a ‘trading’ or a ‘service’ company falling under sub-clause (a).869 2.25 15.63.12 2.354 8.81.73.32.846 3.52 9.58.18 5.21 62.98 31.94 164.24.23.707 1.869 5.53 26. Closing stocks include 1 (2006 : 14) vehicles valued at Rs.67.70.781 1.27 lakhs) on which body-building work was in progress as at the year end. (iv) (v) Production figures include “jeep type vehicles” at a stage without body.00 120 63 5.74.084 - 575.373. and light commercial vehicles at cowl & chassis stage.97 119 120 4.35.18 45.93.093. The Opening and Closing Stocks and Sales of goods shown under item 3 above consist of manufactured and purchased parts.53 178.419 99. Licensed capacity in respect of Agricultural Tractor includes a Letter of Intent from the Government of India for expansion of the manufacturing capacity from 25.86 3.42 405.48 3.000 tractors at Mumbai subject to fulfillment of conditions mentioned therein.718 22.66 132.12 9.16 lakhs (2006 : Rs.47 0.157 1.79.52 -* 1.11 3.48.22.81.00 522.720 204.532 2.39 5.79.29 - 11.29 - 917 379 70 6 90 66 97 1 - 64.81 -* 1.22.64 1.60 9.72.93 2.846 179.31 48..MAHINDRA & MAHINDRA LIMITED SCHEDULE XVI (Contd.48.39.18 2.306 120.24 2.54. 31. 3.94 3.34 0.) Opening Stock Quantity Value Rupees lakhs Quantity Closing Stock Value Rupees lakhs Quantity Sales Value Rupees lakhs 5.80.48.415.11 15.

87.07.....759 6.72..........74...54 48........) .22 6....61 8.00 34. 109 194 6.936 86..................16..25..20....Feet Metric Tonnes 77....... Sq...099 17.63 69....40 1..82.17 41 15 1...50........32... Nos.18. Nos.. Nos.. 1..13 17..........99...........006 1.............98 249.11 20.. Tubes............ Tractors ............03 3.006 - 1.01...53 2......) .847 254 175 3...75 5..56.......70 5.. Litres } 58...48 228.03...16 4....74..... Steel Items (Sheets.....) (B) PARTICULARS IN RESPECT OF GOODS TRADED : Purchases Sl. etc.83...... No. Metric Tonnes Kgs.645 1......24.23. Class of Goods Unit of Measurement Opening Stock Closing Stock Sales Quantity Value Rupees lakhs Quantity Value Quantity Rupees lakhs Value Quantity Rupees lakhs Value Rupees lakhs 1......909 1.........45 54.........55 167 6..........56 112 ..........825 13 512 88.............10 97 4.....212 16.. (C) PARTICULARS OF RAW MATERIALS AND COMPONENTS CONSUMED : Sl... Kgs....51 2.28 5.....67...........56........25.97 254 10.........61..... Lead....... Aluminium Sections and Other Aluminium Items ..25.........994 25........003 - 1.................73 5...13 1......98 38.54....39.....54 3....60 1...47.16 175 6......... etc.........860 22.86........10 2.. Description Unit of Measurement Value Rupees lakhs Quantity 1.83.......87......... No..........MAHINDRA & MAHINDRA LIMITED SCHEDULE XVI (Contd. Paints .34.18 33 41 1......723 26..................947 4.67 1....80....92 70.47..............75 217...........944 52.......398 5..... 2....44...82......63 22...56 1.. Others . Bought-out Spares for Resale [Note (iii)(b) to item “A”] .. Nos.533 66. Nos........................ Other Metals (Steel Shots. Metric Tonnes 26.....42 5................... Metric Tonnes 7.80.......... Note (v) to item (A).....60..93....80 3.... Steel Scrap .....56 4........ Agricultural Implements ........050 76 56.. Light Commercial Vehicles .. Total........ 3 4..10 5..38.....88 2.................60 2.......588 3..62.. Tin.....413 } } 213.35 204.......94...39 9..12.56 2.44....90 210.

.......87...... Spare Parts.34 lakhs (2006: Rs................. Oils.. 13058.39 173........ (ii) The value of imports shown above includes : (a) (b) Imports on C&F basis as per suppliers’ invoices Rs................. 2.............17........ Other Materials (Direct Stores. Total...............01..72 *43.............. Items imported for Resale ....................71 3.07 5...........16 8........27.....96..............37... 10...094 12.56.733 1.86......... Metric Tonnes Litres } 4...... ...17..16 9.F.................. Pig Iron .... are not considered......................965 2...714 13.96 9.....................94 *5....99.. 283... Nos.........67 3.................47 lakhs (2006 : Rs. etc.................................33 2006 Rupees lakhs 36........... amounts not ascertained..... Raw Materials (including CKD Components for Light Commercial Vehicles) . The consumption in value shown against item 11 is a balancing figure based on the total consumption shown in the Profit and Loss Account.....28 *264........74 lakhs) Imports on ‘cost’ basis Rs...... CKD Components for Light Commercial Vehicles .03....................052 1......42..49...............73.......00..............21......608.....07................. Material handling and transportation charges.....66 *22....85...839 2... Metric Tonnes 1. incurred on the above items not separately allocable .................66 97.... etc.... Not practicable to give quantitative details *57...15 1. Description Unit of Measurement Value Rupees lakhs Quantity 6...... 11.....52..70 244.... Components.......................... Components other than Tyres and Tubes (including processing charges) . No.....94 29..) .14 216.750.763 *20...14...72... 12.37 8....97 lakhs) 113 .....921 6..16 *4.10..... Nos..........): Sl. Capital Goods ..82......... etc..) (C) PARTICULARS OF RAW MATERIALS AND COMPONENTS CONSUMED (Contd........... Miscellaneous Foundry Materials .............. 2269. 12197........ etc.... Notes : (i) Credits...... 3. (D) VALUE OF IMPORTS ON C...194 2................06 5...58 * Includes items used for other than production.......MAHINDRA & MAHINDRA LIMITED SCHEDULE XVI (Contd.......................... BASIS ACCOUNTED FOR DURING THE YEAR : 2007 Rupees lakhs 17.....20....................909 *357......... Total…...........55..23 107................ recoverable in respect of short landings.......21 7.. if any....05................588..56 6.............. Patterns.73.........I......24.45............ 1601.59 82..... Nos......... Tyres and Tubes ...622..90............ 4.......678 7...... Notes : (i) (ii) The consumption in value has been ascertained on the basis of opening stock plus purchases less closing stock and includes the adjustment of excesses and shortages as ascertained on physical count and write-off of obsolete and unserviceable raw materials and components..40....

..00 * Includes items used for other than production.65....... Interest .....44 89.... 2.MAHINDRA & MAHINDRA LIMITED SCHEDULE XVI (Contd..........17 712........ Professional and Consultancy Fees [including Rs......09 103................. 265......36 lakhs)....51...... See Note (i) to item (C). 114 ..........78.....26 11.86 98.........02 98.................... 5............ 2..42 lakhs) capitalised] ..41 lakhs (2006 : Rs....... Royalty ........) .............. and (b) amount remitted during the year Rs..........21 25........86.............51 2006 Rupees lakhs 5........... Export of goods on F..07.............25 lakhs (2006 : Rs......75 31.86... Total............... Notes : (1) (2) (3) Items purchased through canalising agencies have been considered as imported.. 11......43..............69...24 lakhs (2006 : Rs.........14 13..96..................49.......... 40.......04.... amount not ascertained............................11 6.. 15......43 lakhs) net of tax deducted at source Rs..... Others . Others (freight.....73 Notes : (1) Fee for use of technology..............O..484.31 lakhs (2006 : Rs..... 3..63.................... 1845.... Notes : F..00 100..............41 14.......O...98........53.984 2.58 % 1...........................19......85 6......... development expenditure and software expenditure [refer to in Note 1 (B)] : (a) written off during the year Rs........23 15.608..........49.81................98... etc.... 2005 Amount remitted Dividend relating to 1. 18........12 lakhs) are not included in the above figures..52.. In giving the above information the Company has taken the view that spares and components as referred to in paragraph 4 (D)(c) of Part II of Schedule VI covers only such items as go directly into production....66 2006 Rupees lakhs 465...........................80 31...... 2...00 1........ (F) REMITTANCE IN FOREIGN CURRENCY ON ACCOUNT OF DIVIDENDS TO NON-RESIDENT SHAREHOLDERS : Number of Shareholders Equity shares Rupees lakhs 2007 : 5 2006 : 2 (G) EARNINGS IN FOREIGN EXCHANGE : 2007 Rupees lakhs 614............. 3.......... Imported Indigenously obtained Total..................97 59............10..................... Interest ..... Total......46.. 4......................15......97 5.............. Commission on Exports ... 2006 Year ended 31st March....) (E) EXPENDITURE IN FOREIGN CURRENCIES (SUBJECT TO DEDUCTION OF TAX WHERE APPLICABLE) : 2007 Rupees lakhs 1.................B....... Rupees lakhs 130.................................47 6.393 48.............477.59...41 46.64 Year ended 31st March........71 508...B.. basis ........72 4...14 100...588.......... 182........81....06 5..... 428....87. value of exports includes local sales which qualify for export benefits and for which payment is receivable in foreign currency and local/ export sales under rupee credit which qualify for export benefits.............70 15..29 39.............98 1...........08 51.. (H) VALUE OF IMPORTED AND INDIGENOUS CONSUMPTION : *Raw Materials and Components 1.....82........52......

PRABHA ENGINEERING PVT. LTD. MAHARASHTRA UDYOG MALATI FOUNDERS PRIVATE LIMITED MALHAR AUTO INDUSTRIES MANABAR INDUSTRIES MANGIRISH PLASTIC WORKS MANGLA UDYOG PVT LTD MANJUL LAMINATES (P) LTD. MAS ALUMINIUM PVT. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 Name of the SSIs AMETEEP MACHINE TOOLS PRIVATE LTD. No. ELECTRO-AUTO PVT LTD PADMINI ENGG PVT LTD PANCHAL ROLL FORMING PANETRICAL ENGINEERS PVT. LTD. LTD. LTD CHAMP ENGINEERING WORKS CHANDAN ENTERPRISE. LTD. BALA INDUSTRIES BHARAT KUMAR & CO BUI PRIVATE LIMITED A. BABA ENTERPRISES BEHZAD ENGINEERING PVT LTD BEMCO INDIA BENARA UDYOG PRIVATE LTD BERU DIESEL START SYSTEMS PVT LTD BHAGYASHRI HOME APPL P LTD BILL INDUSTRIES BLOW RUBBER INDUSTRIES BOBSON ENGINEERS AND CONTRACTORS BOMBAY COMMERCIAL SYNDICATE BOMBAY TRPT ELECT COMPONENT PVT LTD BRYTAX AUTO INDUSTRIES LTD. A J INDUSTRIES AMBUJA INDUSTRIES ATAI FILTERS PVT LTD AUTO SHELL FOUNDRY AEROCOM AUTOMOTIVES PVT. KSHITIJ ENTERPRISES LALIT METAL INDUSTRIES LAXMI NARASIMHA RUBBER INDUSTRIES LUMAX INDUSTRIES LTD M B AUTO INDUSTRIES M.D. A. NEOLITE INDUSTRIES NETALKAR ENGG WORKS NETALKAR POWER TRANSMISSION. ALF ENGINEERING PVT LTD ALLIED SPARES AND AUTO ALMATS PRINT PACK PVT LTD ALPUMP PVT LTD AMAR AUTO AGENCY AMARDEEP ENGINEERS AMTEK AMUL INDUSTRIES LTD ANIL WELDMESH FAB STEEL & WIRE ANITHA ENTERPRISES ATIT ENGINEERING COMPANY ATOP PRODUCTS PRIVATE LIMITED AUTOSILENCERS INDIA AUTO TURN INDUSTRIES AUTO WINDOW AUTOFORMS AUTO MECH AUTOMOTIVE INDUSTRIES AUXI AUTO AVANTI COMPONENTS AVDEL INDIA LTD. J B INDUSTRIES J M INDUSTRIES J. 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 Name of the SSIs CAMATA ENTERPRISES CARLINE PRESSINGS PVT. LTD. LTD. Sr.LTD.LTD CASTALL INDUSTRIES CASTWEL AUTOPARTS PVT.MAHINDRA & MAHINDRA LIMITED SCHEDULE XVII Following are the names of Small Scale Industrial Undertakings (SSIs) to whom the Company owes and which are outstanding for more than 30 days as on 31st March. LTD. LTD.AUTO PVT.R.IND. AAKASH ENGINEERS ASHRA CONSULTANTS (P) LTD AUTOMOTIVE ENGG WORKS AYTIDA TOOLS PVT. LTD FORMATIC ENGINEERING WORKS FORTUNA ENG (NASIK) P LTD FREE FIELD ENGINEER FRIENDS AUTO INDUSTRIES FRIENDS INDUSTRIAL WORKS F TOOL TECH FABOMECH ENGINEERS FIBREGLASS FABRICATIONS GANESH ENGINEERING. LTD PANORAMA AUTOMOTIVE PVT LTD PARTH ENGINEERS. ASIA AUTOMOTIVE LTD AUTOLEC INDUSTRIES LTD VIREN SALES CORPORATION ARMATECH ASSOCIATES ANTHIA MACHINE TOOLS APT PNEUMATICS PVT LTD. MAYURESH ENGINEERING WORKS MEENA ELASTOMERS MEENAKSHI POLYMERS MICRO TURNERS MITTER FASTENERS MODEL FASTENERS P LTD MONARCH ENGG WORKS MOONLIGHT AUTO PVT LTD. CIRCLIPS INDIA (P) LTD.LTD. NEW KRISHNA METAL ARTS NIPA RUBBER PRODUCTS NIPPON AUDIOTRONIX LTD OMEGA LINING INDUSTRIES OSWAL POLY RUBBERS P. HINDUSTAN ENGINEERS. Sr. No. GAUTAM CASTING INDS.RAI INDIA LTD. INDUSTRIES M G AUTOMOTIVES PVT LTD M G INDUSTRIES MAC STEEL PRIVATE LIMITED MUNGI BROTHERS MACK SPRINGS PVT LTD MAGNA INDUSTRIES MAHABAL METALS PVT. PAUL COMPONENTS P LTD PAULSON INDUSTRIES PEARL PLASTIC PRODUCTS PERFECT ALLOY COMP P LTD PHIROZE SETHNA P LTD PIONEER AUTOMOTIVE & TOOLS INDUSTRIES PLASTMOULD AUTO ANCILLARIES P LTD POLAR AUTO & ENGG. CHEMETALL . LTD.P. 2007. HINDUSTAN FASTENERS PVT LTD HODEK VIBRATION TECHNOLOGIES P LTD HEM ENGG WORKS HERALD ENGINEERS IMPRESSIVE IMPRESSIONS INDIAN ENGINEERING CO INDU ENGINEERS INDUSTRIAL ENGG SYNDICATE INDUSTRIAL RUBBER PRODUCTS INTERFACE MICROSYSTEMS INNOVA RUBBERS PVT. MOREX INDUSTRIAL CORPORATION MADANLAL AND BROS MEHNAT PRODUCT ENGINEERS NARASIPUR PRECISON PVT LTD NATESAN PRECISION COMPONENTS(P) LTD NATIONAL INDUSTRIES. D G CORPORATION DELITE PLASTICS DELTA ENTERPRISE DELUX ENGINEERING DESHPANDE AUTOMECH PVT LTD DEVI ENTERPRISES DHAM FASTENERS DIN ENGG CORPORATION DURANO PROCESS (HYDERABAD) DEEPJYOTE PAINT INDUSTRIES DEEPNSHO INDUSTRIES DWARAKA INDUSTRIES EASTMAN CAST & FORGE LIMITED EHARA ENGINEERING PVT LTD EHARA INDUSTRIES ELECTROMAGS AUTOMOTIVE PRODUCTS EXCEL AUTO INDUSTRIES EXCEL PACKAGING EATA PLAST FABRICS EKVIRA COATS EAGLE ENTERPRISES FIBRE FOAM (BOMBAY) PVT LTD SR FIBREGLASS AUTO PVT. M. HIND AUTO CRANKS PVT.INDUS HIND AUTO CENTURY ALLOY INDUSTRIES CONSOLIDATED HOISTS PRIVATE LIMITED HEMANT TOOLS PVT LTD KRAMPE HYDRAULIC PVT LTD TRISTAR ENGINEERS D M CORPORATION A. No.LTD. PVT LTD GAUTAM TECHNOCAST GEAR MASTER ENGINEERING CORPORATION GENEVA ENGINEERING WORKS GUJARAT STEEL INDUSTRIES GAINMAX FERRO CAST PVT LTD H N ENTERPRISES HIMSONS STEEL PVT.J. NEEMA FORGE PRESS P.TOOLS & COMPONENTS JAI INDUSTRIES JAY INDUSTRIES JAY USHIN LTD JITESH ENTERPRISES 115 Sr.R. . 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 Name of the SSIs JYOTI PRODUCTS PRIVATE LIMITED K V ENTERPRISES KAY KAY FLUID SEALS LTD KAYGEE FOAM PVT LTD KISHORE ENGINEERING WORKS KLIPCO PRIVATE LTD KYM ASSEMBLERS & MANUFACTURERS K P TOOLS PVT LTD KELVIN ENGINEERS KIRAN MECHANICAL INDUSTRIES.CORPORATION A-1 PRODUCTS ABS RUBBER PRODUCTS ACCURATE SPRINGS ACME ENGINEERS (P) LTD ADITYA AUTO PARTS PVT LTD AERONA INDUSTRIAL SPRINGS AJANTA AGENCIES. AVESTA ENTERPRISES PVT LTD. CASPRO METAL INDUSTRIES PVT LTD CAST METAL INDUSTRIES P.PVT.

D D ENTERPRISES PEST CONTROL (INDIA) LIMITED TIDKE PRINTING PRESS TOOL CONCEPT TOOLS CRAFT TRIJAMA FILTERALL PVT. LTD. SIKANDS LIMITED SOUND CASTINGS PVT LTD Sr. LTD. LTD PRESS COMPONENTS PRESSTO FORMS (P) LTD. LTD SHAREEN AUTO PVT LTD SHEAR BEND MECHANICAL WORKS SHILP ENTERPRISES SHILPA INDUSTRIES SHIVSHAKTI INDUSTRIES SHIVAM PAINTS PVT LTD SHRADDHA INDUSTRIES SHREE ENGG WORKS SHREE SAINATH INDUSTRIES SHRI GAJANAN AUTO ENGG PVT LTD SIDDHIVINAYAK FOUNDERS & ENGINEERING WORKS SHROFF TEXTILES LIMITED SIDDHI FORGE PVT. TOYO METALLURGICAL LTD TRIMWELL ENTERPRISES TUSHAR INDUSTRY TUSHAR AUTO PARTS PVT. VIJAY ENGINEERING VASU CHEMICALS VORA INDUSTRIES WELLPACK ENTERPRISES PERFECT DIES WORKS UNIVERSAL AUTO & DAIRY PRODUCTS .MAHINDRA & MAHINDRA LIMITED SCHEDULE XVII (Contd. Sr. STAR INDUSTRIES STAR SPRINGS STEERWELS STERLING INDUSTRIES SUJAN INDUSTRIES SUJATA STEEL WORKS PVT LTD.S. 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 Name of the SSIs SOUTHERN AUTO CASTINGS PVT LTD SPRING FASTNERS SPRING INDIA SRI GURUKRUPA ENTERPRISES STANDARD ENGG. PRECISION AUTO INDUSTRIES PRECISION AUTOWARES (P) LTD PRECISION FORGING & STAMPING PRECISION INDUSTRIAL CORPN PREMIER SEALS INDIA PVT.LTD. 2007.ENGINEERING WORKS. VERSATILE EQUIPMENTS PVT LTD VICO FORGE PRIVATE LIMITED VICTORY LUMINAIRES VIDARBHA GAS VESSELS PVT. P. S N INDUSTRIES SHARADA TIMBER DEPOT & SAW MILL SHREE ENGINEERING WORKS SHREE PLASTIC INDUSTRIES SLIDEWELL SPARLEX ENGINEERING PVT. RELIABLE AUTOTECH PVT LTD. LTD. SAMEER AUTO PVT LTD SAMEER LINKAGES PRIVATE LIMITED SANDEEP PLASTIC INDUSTRIES SANE STEEL WORKS SANJYOT METAL INDUSTRIES SARNA AUTOTEX PVT LTD SATISH INDUSTRIAL PLASTICS SATPUDA ENGG PVT LTD SATYAY INDUSTRY (INDIA) SAVERA PLASTICS SAVITA AUTO INDUSTRIES SEACO ENGINEERING WORKS SHAH AUTO INDUSTRIES SHAH CONCABS PVT. VIJAY ENTERPRISES VIJAY ROLLING MILLS VIKAS AUTOMATIC FASTENERS PVT LTD. 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 Name of the SSIs PRAMOD PLASTIC INDUSTRIES PRATAP ENTERPRISE PRAVIN ANCILLARY PRODUCTS PVT LTD PRAVIN AUTO ENGG PVT. HYDERABAD GENERAL ENGG. SUNAX AUTOMOTIVE PLASTIC P LTD TAJ AUTO ACCESSORIES TAYSONS INDUSTRIES TECHNOCRATS INDIA THAKKARSONS AUTO TOSHIRA AUTO INDUSTRIES PVT LTD.LTD. SAKI AUTO PRODUCTS PVT. LTD. ESOOFALI ESMAILJI KARACHIWALLA & CO EDWARD ENGG CORPORATION ENSONS INDUSTRIES 116 Sr.ENGINEERS PVT LTD POLYMECH COMPONENTS PVT LTD R ENGINEERING R S FASTENERS RADHEYA MACHINING LIMITED RAGHUVAMSHI ASSOCIATE ENG RAINA ENGINEERING RAMKRISHNA IRON WORKS PVT LTD RATHOD INDUSTRIES RAVI & CO RAVI INDUSTRIES PVT. No.LTD. VIRAL ENGINEERS VI-SON CABLES PVT. LTD. LTD.) Following are the names of Small Scale Industrial Undertakings (SSIs) to whom the Company owes and which are outstanding for more than 30 days as on 31st March. PRAVIN WIPERS & ANCILLARIES PVT. LTD UCAL PRODUCTS P LTD UKAY METAL INDUSTRIES PVT LTD UNI AUTO PARTS UNITED ENGG WORKS UNITED RUBBER INDUSTRIES UNITY INDUSTRIES UNIQUE RUBBER WORKS VELTECH FORGING PVT.PRODUCTS STANDARD ENGINEERING INDUSTRIES STANDARD SPRINGS & METAL PRESS WORK STAR AUTO INDUSTRIES PVT.WORKS HYDERABAD INDUSTRIAL PRODUCT HYDERABAD PRESS PRODUCTS INSULATION & ELECTRICAL PROD PVT LTD INDMECH INDUSTRIAL CORPN INDUSTRIAL ENTERPRENEURS INNOVATIVE INDUSTRIES HIPRO TOOLS PVT LTD KISHOR ENGINEERING COMPANY KARISHMA ENGG WORKS LUNAR ELECTRICAL INDUSTRIES MAGNUM ENGINEERS MAHESH ENTERPRISES MAYURI ENTERPRISES MEERA ENGINEERING WORKS MEHTA FASTNERS NASIK SUPER TOOLS PVT LTD NASH ROBOTICS & AUTOMATION PVT LTD NIRMAL ENGINEERING WORKS NATIONAL RUBBER PRODUCTS PREMIER FREIGHT SYSTEM PROGRESSIVE STEEL PROCESSORS PRECISION PRESS-O-FAB INDUSTRIES PRANAV INDUSTRIES PRAMOD INDUSTRIES QUICK TOOLS CORPORATION RADIX SENSORS PVT LTD RAJA TOOLS R M INDUSTRIES STEEL SMITH SHAH AGENCIES SRIATO SUSHIL TRADERS SIZE CONTROL GAUGES & TOOLS SHRIPAD AGENCIES SHREE SERVICES SEAM ENGINEERS SEVEN SEAS FORGINGS PVT LTD SHEEL METAL INDUSTRIES SWAN REFRIGERATION S S INDUSTRIES SOUBHAGYA PACKER SYLEA AUTOMOTIVE INDIA LTD. VIBRANT AUTO COMPONENTS PVT LTD VIJAY ENGINEERING WORKS WESTERN AUTO SPARES WIMSON ELECTRONICS PRIVATE LIMITED ZODIAC POWDER COATERS ZOROASTRIAN AUTOMOBILES PVT LTD. VIDHARBHA AGRO INDUSTRIES PVT.LTD. PRINCE METAL WORKS PROGRESSIVE ENGINEERING WORKS PUSHKAR ALLOY CASTINGS PVT.G. FINE ENGINEERING TOOLS P LTD FOURESS ENTERPRISES GAURAV ELECTRONICS GOLE PRECISION TOOLS PVT LTD GRAMOS CHEMICALS INDIA PVT LTD GANESH PATTERNS GAMMA INDUSTRIES H J CORPORATION HARKO METAL PVT LTD. No. 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 Name of the SSIs EL-DIGI SYSTEMS PVT LTD ELECTRO TECH ELECTRICALS ELFAB INDUSTRIES FUJI AIR TOOLS (INDIA) PVT LTD. LTD. RELIABLE TECHNOCRATS P LTD RIGHT-TIGHT FASTENERS PVT LTD RITVIJ PLASTICS PVT LTD RUKMINI ENTERPRISES R K ENGINEERING WORKS RAINBOW INDUSTRIES RELIANCE MOTORS R I POLYMERS S & M INDUCTION S B INDUSTRIES S K METAL WORKS S.LTD. SUMO AUTO-TECH PVT LTD SUSHMI ENGINEERING SUSIRA INDUSTRIES LTD SUVIDH ENGINEERING INDUSTRIES SUYOG RUBBER (INDIA) PVT LTD SWASTIK METAL WORKS PVT.LTD PRECISE INDUSTRIES. VIKMAN STEEL BALL INDUSTRIES VIKRANT AUTO INDUSTRIES VIKRANT AUTO SUSPENSIONS VINAYA ENTERPRISES VIRAJ ENGINEERING CO. LTD. No.

Performance of Company (Amount in Rs.94 Dividend Rate % 1 1 5 (Refer Note 26) 117 .Profit/Loss Before Tax 1 0 3 3 5 9 5 4 0 + Profit/Loss After Tax ! 1 4 3 7 6 7 1 0 (Please tick appropriate box + for Profit . Balance Sheet Date 4 5 5 8 3 1 Date 0 3 Month 2 0 0 7 Year State Code 1 1 II. 45. Capital Raised during the Year (Amount in Rs. Registration Details : Registration No. Thousands) : Public Issue Rights Issue N I L Bonus Issue Private Placement N I L N I L III. Position of Mobilisation and Deployment of Funds (Amount in Rs. 1956. Thousands) : Turnover (Sales & Other Income)★ Total Expenditure ◆ N I L 1 1 7 7 3 6 2 5 0 + . Balance Sheet Abstract & Company’s General Business Profile : I.MAHINDRA & MAHINDRA LIMITED SCHEDULE XVIII ADDITIONAL INFORMATION PURSUANT TO THE PROVISIONS OF PART IV OF SCHEDULE VI TO THE COMPANIES ACT.for Loss) ▲ ! 1 0 6 8 3 8 6 5 Earnings per Share in Rupees Basic Rs. 40.15 Diluted Rs. Thousands) : Total Liabilities including Shareholders’ Funds Total Assets N I L 8 0 4 3 1 1 5 6 Sources of Funds : Paid-up Capital 8 0 4 3 1 1 5 6 Reserves & Surplus 2 3 8 0 3 2 7 Secured Loans 3 3 1 4 8 7 6 8 Unsecured Loans 1 0 6 6 5 3 4 Deferred Tax Liability (Net) 1 5 2 9 3 5 3 2 1 9 7 8 6 2 Application of Funds : Net Fixed Assets 1 8 7 1 1 6 7 6 Investments Net Current Assets 1 0 8 2 5 2 5 2 2 2 3 7 4 5 7 0 Miscellaneous Expenditure Accumulated Losses 1 7 5 5 2 5 IV.

P. Nanda Chairman Vice Chairman & Managing Director Executive Directors Company Secretary Mumbai. 2007 } Narayan Shankar 118 . (ITC Code) Product Description ◆ 8 7 0 3 Other motor vehicles principally designed for the transport of persons after considering the provision for contingencies and exceptional items. (ITC Code) Product Description Tractors 8 7 0 1 Item Code No. 28th May. K. (ITC Code) Product Description 8 7 0 2 Motor Vehicles for the transport of more than six persons. Puri Thomas Mathew T. S. Kulkarni A. Ganguly A. Generic Names of Three Principal Products/Services of Company (as per monetary terms) : Item Code No. computed on the basis of the weighted average number of shares outstanding during the year. Signatures to Schedules I to XVIII ★ ▲ M. Mahindra Directors Bharat Doshi A. K. Murugappan N. Vaghul R. after considering exceptional items. B. N. Godrej } Keshub Mahindra Anand G. M. excluding the driver Item Code No.MAHINDRA & MAHINDRA LIMITED V.

.....09..00% 119 ..00% 100... $ Bristlecone India Limited .....................348 4...22... Mahindra Intertrade Limited .....20% 82........03% 40...52....15 40. ...............56....55...............14 17..27% 49...40..........31...37.............23.....MAHINDRA & MAHINDRA LIMITED Statement pursuant to Section 212 of the Companies Act.85) (20.64....03% 49...70 (0... Mahindra Ashtech Limited .64 100.60) 7...00% 100. relating to subsidiary companies Number of Shares in the Subsidiary Company held by Mahindra & Mahindra Limited at the financial year ending date The net aggregate of profits/(losses) of the Subsidiary Companies so far as they concern the members of Mahindra & Mahindra Limited For Current Financial Year For Previous Financial Years Not dealt with in the accounts of Mahindra & Mahindra Limited for the year ended 31st March... Mahindra Engineering & Chemical Products Limited .00% #96.........47 (2......67....90) (1.42) 8...99% #72... o Tech Mahindra (R&D Services) Incorporated .70... # Tech Mahindra GmbH ...... Mahindra Overseas Investment Company (Mauritius) Limited ....00..................19) 18.....03% #67........09) (0.....25) (18........... # Tech Mahindra (Thailand) Limited ...00% 100..27% 39.... Mahindra Gesco Developers Limited ........41 (16...................................03% 49.00 11....03% 49........01 41...83 (5.500 2........................76............................55 (1....593 79...........77 4......70.....07.........13 (82.......36.......70 10.. $ Bristlecone Inc ...79.20% 82..01........16) (0..68..92 31....42 76........ Mahindra & Mahindra South Africa (Proprietary) Ltd.... Limited ...............................99% 100.......49.........78 22.... o Tech Mahindra (R&D Services) Pte..... # Tech Mahindra Singapore Pte...23 4.........76.....83) (7. .......99...... Bristlecone Limited ........39 0...71 67..50..17....61 3.00% 75....78..28) 8..03% 49.25.....66 11..........00% 51...... ! Mahindra Integrated Township Limited .....16 64...12 17..88..532 5... 2007 March......90 3......05 24...82....... Mahindra Engineering Design & Development Company Limited ....00% 50.51..........88........... " Mahindra Holidays & Resorts India Limited .84) 76...14 10. # Bristlecone (Singapore) Pte.... ! Mahindra World City (Maharashtra) Limited ........... 2007 holding % Not dealt Dealt with in with in the the accounts accounts of of Mahindra & Mahindra & Mahindra Mahindra Limited for Limited for the year the year ended 31st ended 31st March.03% 39.01..17) 4.....76 35...42 174.....35) 3....000 70. + MHR Hotel Management GmbH ..000 1...... # Tech Mahindra Foundation .......006 37.00% 60.......17..... Mahindra Steel Service Centre Limited ..00% 90....793 35... ♣ CanvasM (Americas) Incorporated ..32 21....01.....252 42..89% 100....72 32....17 2.30 (46..........33.36 (1.. 2007 Nos...05.03) (10........ # CanvasM Technologies India Limited ..... " Mahindra Ugine Steel Company Limited ...83 50....81 64....02 12.75) (0............19) 158....59..37 99........66....03% 49...83 34.......36..87) (2..... # Bristlecone GmbH .250 63.......42..........00....... Mahindra Gujarat Tractor Limited .99 47.... Tech Mahindra Limited ....76 20.........68..17............21.08.......03% 82...93.... ! Mahindra Infrastructure Developers Limited .96 14.........69..... 2007 Name of the Subsidiary Companies Equity Dealt with in the accounts of Mahindra & Mahindra Limited for the year Extent ended 31st of March.....26..91 0.........20% 82.......71....874 14.....08...... 1956.72% #67. Limited ..85) 2...85) (18......82.....02% 41.......49........72 (26............. Limited . + Mahindra Holidays & Resorts USA Inc..........12 68..21 (7....07 2...35 49.35 (1.....52) 18....83.20 65......000 Rupees lakhs Rupees lakhs 2.. Mahindra USA Inc. Mahindra Holdings & Finance Limited ...21 24..16) (7... .............82...235 2. " NBS International Limited ..31% 51...20% 100..51 19.. Mahindra & Mahindra Financial Services Limited " Mahindra Insurance Brokers Limited ..................74% #96............... Mahindra Shubhlabh Services Limited .........50......80.....11 4.....10........33% 37......126 5............00% 100..85........20) (1............87 (2.......03% 49........00......98) 5..61 13...... $ Bristlecone UK Limited ....82) 5......11.....000 16.........74.22..77% 50....60 6.......41...24 1............62.96......48...72% 49............08) 82. " Mahindra Consulting Engineers Limited (formerly known as Mahindra Acres Consulting Engineers Limited) ....... # Tech Mahindra (Americas) Incorporated . 53.............42..44 1.........03% 49..69 317..41...54....81 64.91 4...... ! Mahindra World City (Jaipur) Limited .79) 38........33 49........02% 47.....42......08) Rupees lakhs Rupees lakhs 2........83 12. Automartindia Limited ..00% 61.....76..65 1......78....03% 49...00% 50.000 88......69% 100...........23 23..... Mahindra Logisoft Business Solutions Limited ......81 (92.........64.40.67.53 2...01.81 (21..03% 49...14..........42.... # Tech Mahindra (R&D Services) Limited . # PT Tech Mahindra Indonesia ..20% 82...... @ Mahindra Middleeast Electrical Steel Service Centre (FZC) .92.....25....... # iPolicy Network Limited ..00% 77......08.....53......14... ! Mahindra World City Developers Limited ...........20% 82....88.......54 (9.........84) (24....218 1.......

..............41..14) 1.. £ Stokes Group Limited .....54) 4...89.90% 100...16) 1..........68..00% 100......90% 67..52% 99..... Vaghul R.. relating to subsidiary companies Number of Shares in the Subsidiary Company held by Mahindra & Mahindra Limited at the financial year ending date The net aggregate of profits/(losses) of the Subsidiary Companies so far as they concern the members of Mahindra & Mahindra Limited For Current Financial Year For Previous Financial Years Not dealt with in the accounts of Mahindra & Mahindra Limited for the year ended 31st March........64 93. P... # Fried...75.30....... 45.. Puri Bharat Doshi Executive Directors Thomas Mathew T..........21) (5........63) (16......52% 51... ✡ Plexion Technologies Incorporated .00% 100...... • Falkenroth Umformtechnik GmbH ..91 63..........37...00% 80...13 (1.....67) (32...77) 3.13 (15.... M.......38 1...................86) 16.03.....00% 100........90% 67............l ........ Hunninghaus GmbH & Co.. 1...47.....00% 100.. K......107 Mahindra Stokes Holding Company Limited . Mahindra SAR Transmission Private Limited .95) 0.79... 28th May....27....... GmbH Note : The financial year of all subsidiaries ended on 31st March.....21.... 82....... Mahindra Forgings Mauritius Limited .....38......09 Rupees lakhs Rupees lakhs (9............45 (9..97......22 2...50) (2.....011 ✡ Plexion Technologies (UK) Limited ................48..... Hunninghaus GmbH ..MAHINDRA & MAHINDRA LIMITED Statement pursuant to Section 212 of the Companies Act......... 31....57......... 2007 Nos.... 2008..00% 100..99) (2. 8......82) - ✠ ✠ Mahindra (China) Tractor Company Limited ......90% 67......r.. Limited ..739 Plexion Technologies (India) Pvt..39 (36.....00% 100. $ Stokes Forgings Dudley Limited .....00% 99.. % Stokes Forgings Limited ... S...........35) (1.. 2007 to 31st March.....00% 67................... $ Jensand Limited ... 5................................90% 67.....00% 51............39) (44... K.........00% 100.72 (1..04 (3...... Ganguly Directors A..52% 99...00% 57. • JECO-Jellinghaus GmbH ......86) (2............ 2007 holding % Not dealt Dealt with in with in the the accounts accounts of of Mahindra & Mahindra & Mahindra Mahindra Limited for Limited for the year the year ended 31st ended 31st March... • Falkenroth Grundstucksgesellschaft GmbH ..34.90% 67.21 11....23) (1.......88............... Rupees lakhs Rupees lakhs of of of of of of of of of of (15. Kulkarni Anand G............57) 49......... # Fried..........11......00% 51....11 1................ GmbH ......17 9... M. @ a subsidiary of Mahindra Intertrade Limited " a subsidiary of Mahindra Holdings & Finance Limited + a subsidiary of Mahindra Holidays & Resorts India Limited ! a subsidiary of Mahindra Gesco Developers Limited " a subsidiary of Mahindra & Mahindra Financial Services Limited # a subsidiary of Tech Mahindra Limited o a subsidiary of Tech Mahindra (R&D Services ) Limited ♣ a subsidiary of CanvasM Technologies India Limited $ a subsidiary of Bristlecone Limited # a subsidiary of Bristlecone India Limited ✠ a subsidiary of Mahindra Overseas Investment Company (Mauritius) Limited ✡ a subsidiary £ a subsidiary $ a subsidiary % a subsidiary § a subsidiary ! a subsidiary • a subsidiary " a subsidiary $ a subsidiary # a subsidiary Plexion Technologies (India ) Pvt Limited Mahindra Stokes Holding Company Limited Stokes Group Limited Jensand Limited Mahindra Forgings Overseas Limited Mahindra Forgings International Limited JECO Holdings AG Mahindra Forgings Mauritius Limited Mahindra Forgings Global Limited Schöneweiss & Co.......60) (18..14 (25. Mahindra-BT Investment Company (Mauritius) Limited ... DGP Hinoday Industries Limited .................... Mahindra Renault Pvt Limited ......10% to its employees........ Mahindra Vice Chairman & Managing Director A.38) 16......001 § Mahindra Forgings International Limited……. 4.90% 67.....58....80) 26. $ Schöneweiss & Co....97..........258 # after considering shares issued to its ESOP Trust but not allotted 80...34........ 2007 except for MHR Hotel Management GmbH whose first financial year would be from 16th February..225 Mahindra International Limited .37 (45...... 1956........81. !JECO Holdings AG .001 " Mahindra Forgings Global Limited ....71 1....... ✡ Plexion Technologies GmbH .......02) 1. ✠ Mahindra Europe s................. B. Nanda N.49. 2007 120 ......... ....... Murugappan Keshub Mahindra Chairman N.32.....600 Mahindra Forgings Overseas Limited .38...........69...98) (5...88...25....43) (8... 1.85 (47.. 2007 Name of the Subsidiary Companies Equity Dealt with in the accounts of Mahindra & Mahindra Limited for the year Extent ended 31st of March.. Godrej Narayan Shankar Company Secretary } } Mumbai.. • Gesenkschmiede Schneider GmbH .00% 100. A........52% 99.............. 2007 March....00% #66...03....00% 100........... KG .......

68 lakhs for the year ended on that date and Group’s share of net cash inflow of Rs. and in the case of the consolidated cash flow statement. Banga (Partner) Membership Number: 37915 Mumbai. 1631. We have audited the attached consolidated balance sheet of Mahindra & Mahindra Limited and its subsidiaries (the Group) as at 31st March. We believe that our audit provides a reasonable basis for our opinion. and our opinion in so far as it relates to the amounts included in respect of these subsidiaries. Based on our audit and on consideration of the reports of other auditors on separate financial statements and on the other financial information of the components.41 lakhs and the Group’s share of profit (net) of Rs. An audit also includes assessing the accounting principles used and significant estimates made by management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. 2007 121 . An audit includes examining on a test basis. F. 3. in the case of the consolidated profit and loss account. Accounting for Investments in Associates in Consolidated Financial Statements and Accounting Standard 27. of the state of affairs of Mahindra & Mahindra Limited Group as at 31st March. joint ventures and associates. These consolidated financial statements are the responsibility of Mahindra & Mahindra Limited’s management and have been prepared by the management on the basis of separate financial statements and other financial information regarding components. 2007.00 lakhs as at 31st March. Financial Reporting of Interests in Joint Ventures. A. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We did not audit the financial statements of certain subsidiaries and joint ventures. as well as evaluating the overall financial statement presentation. Ferguson & Co. and also the consolidated profit and loss account and the consolidated cash flow statement for the year ended on that date. 5. 1242955. 2007 and Group’s share of total revenues of Rs. 2. Accounting Standard 23. 27799. 684215. 206. Consolidated Financial Statements. 4. issued by the Institute of Chartered Accountants of India.83 lakhs for the year ended on that date and associates whose financial statements reflect the Group’s share of profit (net) upto 31st March.39 lakhs for the year ended on that date as considered in the consolidated financial statements. Chartered Accountants R. 28th May. of the cash flows for the year ended on that date. the attached consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India: a) in the case of the consolidated balance sheet. of the profit for the year ended on that date. evidence supporting the amounts and disclosures in the financial statements. These financial statements and other financial information have been audited by other auditors whose reports have been furnished to us. 2007. whose financial statements reflect Group’s share of total assets of Rs. b) c) For A. We report that the consolidated financial statements have been prepared by Mahindra & Mahindra Limited’s management in accordance with the requirements of Accounting Standard 21. annexed thereto. 2007 of Rs. is based solely on the report of the other auditors. We conducted our audit in accordance with the auditing standards generally accepted in India. in our opinion and to the best of our information and according to the explanations given to us.MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) Report of the Auditors to the Board of Directors of Mahindra & Mahindra Limited 1.

. INVESTMENTS .........352..... NOTES ON ACCOUNTS ............................851.96 2............83 2...54 2..............70 222......52.........28...60 1.........04 14.... K...... Ferguson & Co.702...44............90 10.......................48... B........41 2..69 7..62..78 5............372....67 2............... Vaghul R..69 4.........42 310...........34..... K.....36.................44.......................96 4........................... DEFERRED TAX ASSETS (Net) .042...... LOAN FUNDS : (a) Secured Loans ..187....71 – 1........23...721......... F..00 14...............79 923............................11............................ Reserves and Surplus .05 7............486..................MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) Consolidated Balance Sheet as at 31st March..................... LOANS AND ADVANCES : (a) Inventories ..........62 2....65 1............07........ N...89 5.............21 9.......... CAPITAL WORK-IN-PROGRESS .32........01 III A III B 5.......30..613.....18 4.61...........591.............860.... NET CURRENT ASSETS .......... MISCELLANEOUS EXPENDITURE (TO THE EXTENT NOT WRITTEN OFF OR ADJUSTED) ......... Total .......13......62 1....60.... 28th May.... CURRENT ASSETS... DEFERRED INCOME : Advance towards Club Mahindra members’ facilities ...............25.......605.........74 1.................78 2....45....................040................... (c) Cash and Bank Balances ..................................18. Banga Partner } Keshub Mahindra Anand G.......36................ MINORITY INTEREST ..40 4...20 14.29 14.786..............61 6.............71.........16 4... Kulkarni A.................663.......... LESS : CURRENT LIABILITIES AND PROVISIONS : (a) Current Liabilities ..335................ P.. Chartered Accountants M......70............209...09 1... 28th May..............84 3..725.............27....42 559.180................................199.... II............. Godrej IV 2007 Rupees lakhs 2006 Rupees lakhs I II 238............92 2.......................03................51.............045......42 4.............. APPLICATION OF FUNDS : FIXED ASSETS : Gross Block .................227.......229...50..294..................08.34....................................183... Total ........ (b) Unsecured Loans . Less : Depreciation ... Ganguly A.54..............49 559............58 3.............65.. S....428.................20....................003...... (b) Provisions ....................659.........79 3..............83 2..............13.. M.............63.......183.09......01 V VI VI VI VI VI A B C D E VII A VII B R. 2007 Schedule I.........96.... A.......40 115..............60..92.......792.039......17 233...56 2................................82..........27 4.....856....271....24..59 852..... 2007 } Narayan Shankar Mumbai....12 3....23..............619... Employee Stock Options Outstanding ..84.. Nanda Chairman Vice Chairman & Managing Director Executive Directors Company Secretary Mumbai......16...........68 4............44 5.........31 24........74..........68.......43.............92.......62. Murugappan N.......................02. Net Block ......88 2..54 1..53.....11............. (d) Other Current Assets ......94 6.............840.......... Mahindra Directors Bharat Doshi A.829................... DEFERRED TAX LIABILITY (Net) ......71.........275..39.............................818......... Puri Thomas Mathew T......... Per our report attached For A... (b) Sundry Debtors ....................... SOURCES OF FUNDS : SHAREHOLDERS’ FUNDS : Capital ............67 – 319................. (e) Loans and Advances ..........23 8...........00.... 2007 122 ..664.17 VIII XIV 19..020...........30..34.56........09.......664...........64 10..11.................

....................321......................................28.. Balance of profit for 2006-2007 before share of profit/loss of Associates and Minority Interests .....24......98) 1................................. exceptional item and taxation ............99.......................................... Kulkarni A........................399..........40 51..10 11.....................16 1. B.....64.........40..53 (15.... Less : Charge on adoption of Accounting Standard ........ 2007 123 ..83 2006 Rupees lakhs 11........... Personnel ......40.......71 15........10.....269....997.... K.......74 12..........202..399.57...............75 1....24 1.....33...........96 6...........68........05 1.........95......21 4.940...............12 2.58 34..........02 3..............................34 11.497..........319.................39................................ Income from Operations & Other Income .. Depreciation/Amortisation [Notes 6 and 23] .....................85.... Mahindra Directors Bharat Doshi A...89 2........940.....................539... Less : Provision for contingencies .......75 141.......... Less : Provision for Tax ..22 299.....912.06 (117....................................61 24.............................. Per our report attached For A.................56.........03 624......... Ganguly A.....067............841.......137.........................18.................20................621...........73....03................78......96 9.....69 1.137.......74 1..............75 XIV 56......................... Ferguson & Co........................52.......40........64 263.......08 16..98 8....71..........66 1.....807............58.......84..66............17) 1........ Other Expenses ...41 3.24 379... Profit for the year before prior year adjustments ................00...... Vaghul R......... : General Reserve (Net) ...........29..... Banga Partner M......... F........21.......11 78...... Chartered Accountants R.86.....34..12 15.06 439...................................................................................14.................... Add : Exceptional Item [Note 16] ......25 1..... : Income tax on Dividends ......27......................... Deduct : Statutory Reserve .....29......59 1...............75 1................................15 (revised) ...............94.......97.. K...................... EARNINGS PER SHARE : [Note 21] (Face value Rs.........................52 2.........77 17.95 1...07.........86 69.....638. : Income tax on Proposed Dividends ........... S................24 23.............47 219..48 283..68....................23.......................................................61......................86 (36.. Net Sales ........945...........166........................648........................ Commitment and Finance Charges (Net) ....................407......802................ 2007 } Narayan Shankar Mumbai.................16 1...75................40 2...............40.......12........95 184.............399.....11 1.................Deferred tax (Net) [Notes 15 and 23] ......67 61................................ Less : Adjustments pertaining to previous years [Note 17] .......... N........67 – 55......................................69 1.... Balance for 2006-2007 and earlier years carried to Balance Sheet ........................ Profit before Minority Interests ........... : Interim Dividends Paid .453..48 (28..985.........95......... M..........543...03....39 4...51.......................08 243.......70 16............ Less : Cost of Manufactured/Purchased Products capitalised ...............29..............72 } Keshub Mahindra Anand G......................388.....57 1........41 34............. Minority Share in Profits for 2006-2007 .............. A................ Profit before exceptional item and taxation ............ .per share) (Rupees) Basic .....58 1.......05 44.........27.........19....28 57........82 134......669......... Total of Profit and Loss Account balances shown above .........79 2................30...........912........ Godrej 2007 Rupees lakhs 14...75 140....90 16.................................................04) 1...41.........10/.....17 12.. Nanda Chairman Vice Chairman & Managing Director Executive Directors Company Secretary Mumbai........15.........69............606...24 98......................69 2.......... Add : Share of Profit of Associates for the year ..........956.... Add : Transfer from Debenture Redemption Reserve (Net) .............................29...59... Profit before taxation ... Profit before provision for contingencies.....03) 2.............54...................77 146.38........ Puri Thomas Mathew T................... Diluted ...259.................95..................................15...........37. NOTES ON ACCOUNTS ........... EXPENDITURE : Raw Materials.590.......439.. 28th May..Current tax including Fringe Benefit Tax [Note 23] .....104.86...10............... 2007 Schedule SALES [Note 23] ..MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) Consolidated Profit and Loss Account for the year ended 31st March.34.. Finished and Semi-finished Products .....96...914....... Less: Excise Duty on Sales [Note 23] .. : Proposed Dividends on Equity Shares ..........42.13 4.51......92 2......... Murugappan N... Balance of profit for earlier years ....86...616..72 – 6............. P..............42 1......86 IX X XI XII XIII 63.................................................................73..... Interest..........................524........404............... 28th May...... Net Profit .........................352..00...............................86..43.....08.............................62.......38.

... 784........05............319....09 9.....41..........................75.......24........ Sale of investments .......19............. Trade and other receivables ......66 109....38) (39....752.....MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) Consolidated Cash Flow Statement for the year ended 31st March.69 322...........41) (524.......53....702.72 16.......771....48) (4.........13) 9...................539............. (Profit)/Loss on fixed assets sold/scrapped/written off (Net) .03...376.........05 lakhs) in respect of financial enterprises consolidated)... 21082................................... Cash generated/(used) from operations ...71.....48...81........................65....... Unrealised Profit on Exchange (Net) .............30..52) (525..19 2.............78...78...51...........121.......08) (1... B...............14) (162.....11) (1...........62 (5...... 2..................... taxation and adjustments pertaining to previous years ......19) (419.... NET CASH (USED IN)/FROM OPERATING ACTIVITIES ......56.......36.................................711....70) (1.54.....45.............80) (15.................19...........17.....501......42.00 (105..50.....72 (570.... Exceptional Item: Sale of a Business undertaking ..........73) 73........................57) (248................44 (552.......... Interest received . Trade and other payables ............33 32..... Inventories .....42........ Sale of fixed assets .32.....80. 31438..... 2007 Rupees lakhs A..............60 (12.....41.......................................29..............81....................17..........94 (119........28...63 (1..... 2007 Rupees lakhs 2006 Rupees lakhs 2... Miscellaneous Expenditure (to the extent not written off or adjusted) incurred during the year ... NET CASH (USED IN)/FROM INVESTING ACTIVITIES ........24........17) 433........63 (9.396.....62 2.....74 lakhs (2006 : Rs..642.....77.11 11....88.........14...........................86 61.........................................40...........61) 95...98 (936....39......................... Inter corporate deposits (Net) ...27 52...........60... Interest..........................37) Operating Profit before Working Capital changes .......56 (997..135.......02. Adjustments for: Depreciation/Amortisation ........07................... Purchase of investments .................58........18) (458..................12.....74.....05) 3.........69. Changes in : Stock on hire ...........16..13. Investment and Interest Income (Excluding Rs....42............................87..............................39........ Purchase consideration paid on acquisition of interest in subsidiary .............57...............25) (86....80 1....22 (1. Commitment and Finance charges (Excluding Rs...39....... CASH FLOW FROM INVESTING ACTIVITIES : Purchase of fixed assets .40.77) (290....................80) 4....50 (1.07) 543..30) (446......................................39 97.... Deferred income – advances towards membership fees ...................... Loans against Assets * ..............86..........57 (881.....62) 390.53....10............68 64.21) 58...44 1..........23 163........69 (6.......................94) (87.........................12) 71............................. Income taxes paid (net of refunds including for prior years) ..28.........91) (25...23..............97......64 283.......10.66) 124 ...02...........................06 379............. Provision for diminution in value of long term investments (Net) ........... Exceptional Items : Upfront payment to a customer .....84............... Dividends received .... CASH FLOW FROM OPERATING ACTIVITIES : Net Profit before exceptional item...39) 727.....741....14) 17..... * In respect of financial enterprises consolidated..............929............21 1............26.......59 lakhs) in respect of financial enterprises consolidated) Amortisation of Expenses .........................54...............................36 lakhs (2006 : Rs................ (Profit)/Loss on sale of Investments (Net) .................. 365..........................................48) 1.................374.........................26 67.. Sales Proceeds (Net) received on divesture of interest in subsidiaries .73) (154.....93....... Excess of cost over fair value of current investments (Net) ............06 9..........41 (3................................

013............ 2007 } Narayan Shankar Mumbai....... See Notes attached.............. NET CASH (USED IN)/FROM FINANCING ACTIVITIES ........... Repayments of borrowings [including premium on repayment] ..........16.25 R...60 2006 Rupees lakhs 1.............................119..54 (7........... 2007 2007 Rupees lakhs (a) Cash and Bank Balances ......69) (502..... K...20.................. 28th May..71 7...............621.. Kulkarni A....... 2007 Notes to the Consolidated Cash Flow Statement for the year ended 31st March..80) (178... A.... NET INCREASE IN CASH AND CASH EQUIVALENTS (A + B + C) ......... Unrealised (Net) translation (Gain)/Loss on foreign currency cash and cash equivalents .......44 2006 Rupees lakhs 1...........72........18.......25 69..............82..180...................944... CASH AND CASH EQUIVALENTS [Note (a)] Opening Balance ..................... Per our report attached For A...98.28) (67...... Vaghul R....15.... Total cash and cash equivalent ..085.............. Interest.... B..... S....... This being a non cash transaction does not form part of Cash Flow.................12 1.93) 1................................180. K....... Dividends paid ........25 (b) During the year.......319.......83 40....03.. Puri Thomas Mathew T..............17 (5. Ganguly A..... M........81) (51.......03.........93 835......................085... Commitment and Finance charges paid .....53.53 38... Cash & Bank Balance Acquired on Acquisition of Subsidiaries ..... CASH FLOW FROM FINANCING ACTIVITIES : Proceeds from borrowings ....86......... N........24.....95..... 28th May...... Ferguson & Co.....79...03. F.............187............... 125 ............51........44 1..180.....29) 1.............15....15....... the Company has consolidated its business interest in Stokes Group Limited by swapping the shares held by the Company in Stokes Group Limited for shares of Mahindra Stokes Holding Company Limited. P.. Chartered Accountants M.........07....79.............. Mahindra Directors Bharat Doshi A....48 2................. Nanda Chairman Vice Chairman & Managing Director Executive Directors Company Secretary Mumbai. (c) Previous year’s figures have been regrouped/restated wherever necessary............. Godrej 16................03.MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) Consolidated Cash Flow Statement (Contd....045.........07....63 127.................61 2.11... Murugappan N.....) 2007 Rupees lakhs C....................633..... 2.... Closing Balance ......... Banga Partner } Keshub Mahindra Anand G.468....18 (13..41...........28) 2...

1068..50...09 150.....87 23. 10 Foreign Exchange Fluctuation Reserve ..00 245........00.......00.98 #12....16 148..31.. Issued and Subscribed : 24...98...88 (16..00 25...928......46.........91.88........29...18 233..... Capital Reserve on consolidation ..48 413.....40....36.....27 Deductions Rupees lakhs – – 64.24...00 lakhs (2006 : Rs.....38............68.....45.....46 742.08.93 SCHEDULE II Reserves and Surplus : 1 2 3 Capital Reserve ............96 2007 Rupees lakhs 23.....37........19.13 1.....00..100 each .41......... Special Reserve (As per Section 45 IC of the RBI Act) ...12) *1...94. Total ..24 1.93 21......12) 1.00...........88 85.27 12.......32 40...93 536.......87 138.......37.....00..25 #10..00.........486.91 4 5 Revaluation Reserve ..64 – – 120..........97 17...62 41....39. # transfer of Rs.MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) SCHEDULE I Share Capital : Authorised : 27. Less: 73..08...90.77..19.......45....01......46 14....72....37.12........43 12..06 98.......72.....20.92 18..97.......... Investment Fluctuation Reserve .92.......75) (3..00..06 **134.86 – – @150.......09 746.80 174.89 8.....75..... General Reserve [Note 4] .. 2006 Rupees lakhs 23....60........ 2007 Rupees lakhs 275... Capital Redemption Reserve ...49 (43.. 2...46 41.1230.....12...22...13 245.........41..03...59..............14 7......98.......04....00...............75 34.. *** transfer of Rs..34 726.....42 39.......20....00...00..........265 (2006 ..60... 6 7 8 9 Debenture Redemption Reserve ....38) 47.40......11........28 546.....00 – 145..00 lakhs (2006 : Rs....65...24 55.53..87 23..12.....36..37...00..64 50..53.00 300......613.32 17....... ** includes transfer of Rs. 25.......37..19...63 5....00 – – – 12.....11 (3.53...21 30..56...31 161.....10 each ....93 @159..........78 – 174..............26.00..86.21 17.64 53...02.93 1..00 – 24..71...............36 234...74 **116...22.52 726.545.....30 2006 Rupees lakhs 275.....29...95 18....00 300..42......00 240...66 41...............558 (2006 ....82....52 347...52...56 1..36....42......09.94..92.668............36 1.60.00 lakhs) from Investment Fluctuation Reserve per contra pursuant to the Scheme of Arrangement approved by the Hon’ble High Court of Bombay on 12th December..86...93 163.768) Ordinary (Equity) Shares of Rs....01....76 16.27..................08......75.....40 13..................86....66.....98 lakhs (2006 : Rs...75.15 683.63 120...47 2...........33...42.35............16 – 134......13 7..000 Ordinary (Equity) Shares of Rs.08 134.........39.46 561......72.......96 3...... 2003.72 – 3.....50..98...41 579.........01......90.72..........98 2....46............86 238..928...32 3.77 – – 536....33... Adjusted : Issued and Subscribed Share Capital .. Nil) from General Reserve.66........ 287.....32 554.....08 48..10 each fully paid up issued to ESOP Trust but not allotted to employees .32 *(including Group Share in Joint Ventures Rs.....75.52 347.......85....545.1230.79 includes transfer of Rs......42.. Group Share in Joint Ventures .00 lakhs) to General Reserve per contra pursuant to the above Scheme of Arrangement [Note 3].........71. Nil) to Capital Redemption Reserve and Adjustment on adoption of Accounting Standard -15 (revised 2005) Employee benefits [Refer Note 9].73 561.81 – – – – ***50..... 126 ...16 579........19 13.98 lakhs (2006 : Rs.. Add : Bonus shares issued to ESOP Trust but not allotted to employees [Note 4] ....37.250.55..27 730. Securities Premium Account [Note 4] .09 – 730...... Less : Premium on shares issued to ESOP Trust but not allotted to employees [Note 4] ...89 16....56 41.....90 116..133..15 3.93 3.....30...........43 213.47....000 Unclassified Shares of Rs.........73... Total @ Additions Rupees lakhs – 34...62...14 240.352) Ordinary (Equity) Shares of Rs.36 17...37 lakhs)) 11 Balance for 2006-2007 and earlier years as per Profit and Loss Account ......24 683.86 – – 148..........1068...10 4..33....55... 5000... 5000..00..98 lakhs (2006 : Rs..00 25.10 each fully paid up ...........85.

.......................29 50.................................43 35....23.....50.......57 Group Share in Joint Ventures ... Total ......287.................031.02.......95 781.......59 416................................... (2) Short-term Loans : (a) From Banks ....................690...32 157............MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) SCHEDULE III Rupees lakhs Loan Funds : (A) Secured : [Note 5] (1) Debentures/Bonds .........................................12................41.19..91 50......34...................228................. . (2) Foreign Currency Loans from Banks ........067..68..14 2...67 269.20 1..10 11...........................25........40..............30............................32... (e) From Banks ..95 3......80.....73..............02 26....................61 2.................17...........83 675.......................... (c) Debentures/Bonds ....................08....91.617.....................17..11...............72...... Total ...........85...............................................48 2.....44..00 9.85 879.05 7....04 166.619..67 4......56.............................41......04 986..67 149....39.99........................ (b) From Others ....... (b) From Banks .....04 5....61..67 322..............60............. (b) Zero Coupon Convertible Bonds ..............62 53......................209....... 50.....20..43.94 (3) Other Loans: (a) From Financial Institutions ..........28 125.....209............................................00 215.87..00........................................00 261...58......271......90..........34. 2........... 107.......... (f) From Others ......40 291....................90 58......04......81 105........................ Total ........ 957....................50...26.................. – 1..48.....26 4.......63...............78 5.........34 5...00 1..............................48...............34...43 2007 Rupees lakhs 2006 Rupees lakhs (B) Unsecured : (1) Fixed Deposits ..........28 Group Share in Joint Ventures .... (c) From Others ...........62 3.............63 185.......09..........66 359..............10 2.99 127 ....................322..................................89.............. (3) Rupee Loans : (a) From Financial Institutions ......30 8.................49 1......................13....229......40 213...............42 2.039....................829.....042....43 (4) Loans and Advances on cash credit account from Banks ...... 367............... (d) From Government of Gujarat .....................................41..

654..53........335.10 285.. ..57 61..00..72. B : Owned Assets Land .36 29...20 773..98.71 348..19 77......84 1.74....99...... Vehicles.06 3.96 101.08 1.......61.67...44 10..... 2006 Additions and adjustments during the year Deductions and adjustments during the year Cost/Professional valuation as at 31st March. Websites .MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) SCHEDULE IV Fixed Assets : Description of Assets Cost/ Professional valuation as at 31st March..58 6.25......60.....294.....42..04 12.81 3.73.65 86..80 16. Buildings ...15..67 98....78...20.95 0......63..44..03.25.12 2.08.70 468..21.32 2..46 15.....44 15....591.. Non-Compete Fees .41 177..335..48 172. C : Group Share in Joint Ventures TOTAL (A+B+C) ..657..54.70 4.32....45.213..91 40...88 23.37 67..16 6..20..23 6...39....62 8.........92.53 27.....07 1.77 4....74 24.48 101......82.07.67 3..446...67....56 3.78 1...65 305...36..77 99.26..92 2.. 2007 Net Balance as at 31st March.79 32.61..72.03 1. Vehicles .47 0.31 169...55 3..39 2..14 4...94..81 5.912.74....92 5....25 31...02 2.....71. + Goodwill arising on consolidation...47 7.54..818.34 32..21.15 6.39.. for 20062006 2007 Deductions and adjustments of Depreciation/ Amortisation Depreciation/ Amortisation to 31st March....04 3..45.........80 217.. Time share weeks ....99.17.99 - 2.70 1. 2006 Rupees lakhs A : Assets on Lease Plant and Machinery .83 3...16.92 9.99 7..43 8..16 2.13 1...73.33..84 3.94.06 170..54...05 57.60 6...74 23...70 3.07...........32...51 20.....44..56.76.040..121.03 521. Cycles.82..85 9...27.04 105.. etc..40 7.79.......41 1.45.25....96.09.77. Technical Knowhow ..60 128 ....Freehold .........35 3.74 31.90 3.42 1. Plant and Machinery .......42 124.26...97...Leasehold ...07 10..32 11..........86 34..58. Refer Note 6 (b) 125....23.....72 3.19 8.73 198..74 58.35 54..93.68 3......98.22 62.46...48....28 38...00 2........846.27.91......67 26.... Furniture and Fittings ..00.70..57 5.93 39.24 1...48 6.........68 81.....57 780..51.....40..54.....294...13..61.77 1..83 1..91 1.06 93. 2007 Net Balance as at 31st March.....50 2. Sub Total B ...48 9.46..49 31..48 12.13 9.......Freehold ..56 35...Depreciation/Amortion/ tisation Amorto 31st tisation March.38 31.......19.70 3.16.278....77 16.18....62 7..80. Sub Total A .27 64....17.29 3....07..16 3.99.63... Goodwill + ..73 55.28 1...73.25....44.699.56....845....58 4.06.63...37 13.92 6...25 62.....35.72 3.14.69...........87.03 47..56 16..54 37...35 17.40 180...............60 183..08 1.36 21.25 37..91 1...56.. Land .32....654.80....63 6..96.....25...86...42 2... Development Expenditure ..41..199.26 610....42 2....Leasehold ..74 930.61.10 64.10 16.......15.05 95.793...91 12.63.39..92 3.34 346....14..91 52.040......20 91.....96 940.14 7.28 16..31.25.01 93...08 1.73.49..13 1..580.656.68 7.37......89 65...06.655.90...61.69.31...87 7..... Software Expenditure .........93 0.83 23.550....58 38.80 1..47 48.91.21..21..812..35...15..81..38 24.74 23.46 930.86.84 1....05....49 4.26.88..41.00 5..25 62.47...146....95.40.19 9.94..57 179.72.309.90..11.23...69..78.28 32.18 10...10 1.93 748.86 171..47...84 14.62 4..42 Rupees lakhs Rupees lakhs Rupees lakhs Rupees lakhs Rupees lakhs Rupees lakhs Rupees lakhs Rupees lakhs Rupees lakhs 12........31.49. Trademarks .50 4...53 217...22 1.29.. Buildings .01 1..40 104.. 2007 Deprecia....030.20..10 51..51 23..15 18.....46 18........71.73....88.....227.55 65.43 143.....74.. Computers ...40 4.28.31 31.26........33...21 80.63.

............13 2.90 22....41 Others : (a) Unquoted .40.......22..................68 174.......30.....83 3..22 1.......14 0........00.30 3... (b) Equity Shares .........78.......159..42 116...........89......99......36 30... 409...54...........84...........58 0...........................66 145..66.........00........14 0........... 23....83 3.....78 25. 13.181...57............51 33.98 2.05 3.69 129 ........63....86 322..........75 5...............................180..Associates [Note 1(c) & Note 22] ....97 1......70 716.98 4.44......76... 25.89.99.....26 Units : (a) Unquoted ......32.15..21...51 33.181............58 78......46....... (b) Quoted ...............85 3....75.......66 1..........16........ Less : Excess of cost over fair value of Current Investments (Net) Market value of Quoted Investments ....76 122..14 0..94...68 1....70........ Cost (net of amounts written off ) of Unquoted Investments Cost/Carrying Value of Quoted Investments .....68 5............. 2007 Current Rupees lakhs 2006 Long Term Rupees lakhs 2006 Current Rupees lakhs 35......77 4.....58 997..08 42....76.........Associates [Note 1(c) & Note 22] ... (d) Preference Shares .85 156.........41 4....89............89 1.57.......................................14 0........58....38 1...007...........33..... (b) Equity Shares ....42 904.66 3.... 4.85 101....003.35.39 Total .Associates .86 365....33............................ Total ..91..21......04......38 1....21.......46......36 24..........38...........74 Other Investments : Government Securities (including Treasury Bills) : (a) Unquoted ..........30................... 23......53......66...53 1.............MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) SCHEDULE V 2007 Long Term Rupees lakhs Investments (At Cost unless otherwise specified) : Shares (Non-trade and fully paid-up unless otherwise specified): Unquoted : (a) Equity Shares ....21...48 13................57.66 832...............03 904..33.22 3... 1..14 24....38.....35................................03 184.......49..21.....006............97.. Group Share in Investments of Joint Ventures ...........03 0........21..63.....83 365...42 4.........41 0.007.................91...03 78...66..78 Investment in the Capital of Partnership (a) Unquoted .... (b) Quoted ........70 322..................00 1..97 17............24...33.........24 23...18..24 290...98 1.....71 62...61.................41 4..89..78 1.....46..36 9.36 Quoted : (a) Equity Shares ..70..21............ (c) Preference Shares .....00 Debentures/Bonds (Non-trade & fully paid-up) : (a) Unquoted ......54.........21...28 3...63 163..13 1..181.......42 246..23 13.68 1....58 7..........47......74 0....63..........49...23 13.14 9.......

.........................83..............42........32.54 2006 Rupees lakhs 392................................91 297.........13 279......184...................80 4......92.........64 1..........53 487...... Total ............39........05....16.... (iii) On Margin Account ...30.......71............... (ii) Contracts and Work-in-Progress .85 1.............78.45 2..90 2....05.............78 128. Group Share in Inventories of Joint Ventures .........83 226..08 14.80 3............................. cheques and stamps on hand ........................70 2................74...07.702...........317.11........09... (iii) Manufactured Components ...58 25..611....428..74 1...........33 6...........17....................19.........05........18 1...10 1.........24 86.......688......65 82.............94.....................663.....045.........56...58 474.97 428...... (ii) On Fixed Deposit Account .60.............. Beverages..........659................. (vi) Food......84..55 1...721................70............ (v) Work-in-Progress – Property Development Activity and Long Term Contracts .. Balances with Scheduled Banks : (i) On Current Account ...35 2.......................313............. Balances with Non-Scheduled Banks : On Current Account & Fixed Deposit Account ....... (iv) Raw Materials and Bought-out Components ........50...15 87............800......64............64.........38 115...80 64...........34 675.....59......60.................97 2....46 54.86. (vii) Stores and Spares .......24. Loans and Advances : (A) Inventories (at cost or net realisable value whichever is lower) : (i) Finished Products produced and purchased for sale ....72 1...............65......44.. Group Share in Debtors of Joint Ventures ........ 384..23 44...............75 255.........92 193........325..45 8........................ Less : Provision for Doubtful Debts .....64.....59.......89 13.....79 21............15..............00 6...56 670.........921. : Considered doubtful .. Total ........851.........57.. (B) Sundry Debtors : Unsecured unless otherwise stated : Outstanding over six months : Considered good ....54 130 ...............17....90 11.. Other Debts : Considered good .47.................43...46 33....038.....46.......... (viii) Tools ....................93....MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) SCHEDULE VI 2007 Rupees lakhs Current Assets.........86....43 1......29...71 28.......36......91 71......78 60.............99.........08 1.06 937.....00 45...................54....838......... Group Share in Cash and Bank Balances of Joint Ventures ......74 Less : Unmatured Finance Charges .32 261.....35..424....18..97 42.........................98.......37.........39 6.. : Considered doubtful ......57 1...........25.86...... Total .......................44 49....74 2......50 2.......................................44....23 2......45....187.............. (C) Cash and Bank Balances : Cash.18....727...................47...........96 793....... Smokes and Operating Supplies ......57......72..91...................76 2.05..14........04 1...............26 2.... 787..63.18 1.....................

MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED)

SCHEDULE VI (Contd.)
Rupees lakhs (D) Other Current Assets : Interest accrued on investments ....................................................... Plant & Machinery and other assets held for sale ............................ (at cost or estimated net realisable value, whichever is lower) Stock on Hire .................................................................................... Less : Unmatured Finance Charges ................................................. Less : Provision for Non Performing Assets & Doubtful Debts ........ Total .................................................................................... (E) Loans and Advances : (Unsecured, considered good unless otherwise stated) : Bills of exchange, considered good .................................................. Bills of exchange, considered doubtful ............................................. 4,91.05 2,05.04 6,96.09 Less: Provision for doubtful debts .................................................... 2,05.04 4,91.05 Advances recoverable in cash or in kind or for value to be received : Considered good .............................................................................. Considered doubtful .......................................................................... 1,197,72.01 83,31.78 1,281,03.79 Less : Provision for Doubtful Advances ............................................ 83,31.78 1,197,72.01 Loans against assets/Retained Interest in Securitised Assets (Secured) : Considered good .............................................................................. Considered doubtful .......................................................................... 5,428,26.87 345,41.87 5,773,68.74 Less : Provision for Doubtful Advances ............................................ 149,10.61 5,624,58.13 Payments towards Income tax and Surtax (net of provisions) ......... Balances - Customs, Port Trust, Excise, etc. ................................... 15,12.65 16,77.77 6,859,11.61 Group Share in Loans and Advances of Joint Ventures ................... Total .................................................................................... Total .................................................................................... 1,22.68 6,860,34.29 14,039,60.40 3,984,22.61 225,73.26 4,209,95.87 86,45.04 4,123,50.83 28,46.52 3,93.04 5,019,62.67 82.54 5,020,45.21 9,725,28.92 859,09.35 90,68.03 949,77.38 90,68.03 859,09.35 4,62.93 2,13.09 6,76.02 2,13.09 4,62.93 2,82.84 14.10 – – – – – 2,96.94 2,14.35 18.15 84.34 17.55 66.79 14.40 52.39 2,84.89 2007 Rupees lakhs 2006 Rupees lakhs

131

MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED)

SCHEDULE VII
Rupees lakhs Current Liabilities and Provisions : (A) Current Liabilities : Acceptances .................................................................................... Sundry Creditors : (i) (ii) Total outstanding dues of small scale industrial undertakings ... Total outstanding dues of creditors other than small scale industrial undertakings ............................................................... 118,42.43 3,257,66.08

2007 Rupees lakhs

2006 Rupees lakhs

340,83.88

304,45.81 60,36.82 2,079,48.58

3,376,08.51 Dividend payable ............................................................................... Balances on Directors’ Current Accounts ......................................... Interest accrued but not due on loans ............................................. Deposits/Advances received against hire purchase/lease agreements ....................................................................................... Other current liabilities ....................................................................... 7,33.15 2,45.77 123,26.16 34,40.81 383,18.56 4,267,56.84 Group Share in Current Liabilities of Joint Ventures ......................... Total ........................................................................................... (B) Provisions : Proposed Dividends .......................................................................... Provision for Tax on Proposed Dividend ........................................... Provision for diminution in value of long term investments ............... Provision for premium payable on redemption of convertible bonds Provision for Contingencies [Note 12 (b)] ......................................... Provision for compensated absences ............................................... Provision for Estimated Loss/Expenses on Securitisation ................ Provision : Others [Note 12 (a)] ......................................................... Group Share in Provisions of Joint Ventures .................................... Total ........................................................................................... Total ........................................................................................... 98,19.90 16,68.89 23,22.57 244,58.29 3,46.20 271,82.81 67,43.13 196,98.36 922,40.15 1,22.29 923,62.44 5,199,24.23 8,04.95 4,275,61.79

2,139,85.40 2,75.99 2,15.86 94,66.04 49,05.53 192,56.32 2,785,50.95 7,41.54 2,792,92.49 243,97.41 34,21.74 19,64.00 10,07.53 4,43.75 91,41.40 47,17.93 107,84.97 558,78.73 65.39 559,44.12 3,352,36.61

SCHEDULE VIII

2007 Rupees lakhs

2006 Rupees lakhs

Miscellaneous Expenditure (to the extent not written off or adjusted) : (a) Finance Charges ........................................................................ (b) Separation and other costs ....................................................... (c) Others ........................................................................................ Total ........................................................................................... 5,33.50 13,20.47 46.07 19,00.04 2,19.38 21,76.60 47.92 24,43.90

132

MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED)

SCHEDULE IX
Income from Operations and Other Income : Income from services rendered ........................................................ Income from long term contracts ..................................................... Income from Project Management, etc. ........................................... Hire Purchase income, Lease income and other rentals .................. Income from Loan, Retained Interest in securitised assets & securitisation ..................................................................................... Commission ...................................................................................... Dividends on other Investments [Note 18 (a)] ................................... Rent received .................................................................................... Miscellaneous Income . ..................................................................... Profit on sale of Investments [Note 18 (c)] ....................................... Profit on sale of Fixed Assets ...........................................................

2007 Rupees lakhs 3,685,19.05 135,81.17 2,02.45 54,22.71 821,05.96 7,41.45 51,30.14 4,61.92 217,46.32 12,80.05 – 4,991,91.22 5,37.55 4,997,28.77 2007 Rupees lakhs 2007 Rupees lakhs

2006 Rupees lakhs 1,715,24.31 164,64.00 13,50.40 58,67.60 568,40.93 8,62.16 26,51.61 3,52.19 163,60.60 105,60.48 4,03.91 2,832,38.19 8,68.98 2,841,07.17 2006 Rupees lakhs

Group Share in Joint Ventures .......................................................... Total........

SCHEDULE X
Raw Materials, Finished and Semi-Finished Products : (A) (Increase)/Decrease in Stock of Finished Goods, Work-in-Progress and Manufactured Components : Opening Stock : (i) Finished Products produced and purchased for sale ................ (ii) Contracts and Work-in-Progress ............................................... (iii) Manufactured Components ....................................................... Add : Stock taken over on acquisition : Finished Products produced and purchased for sale ................ Contracts and Work-in-Progress ...............................................

670,32.38 115,59.44 49,91.53 835,83.35

503,30.39 58,19.59 41,20.89 602,70.87 1,15.00 40,62.84 221,40.29 41,77.84 670,32.38 115,59.44 49,91.53 1,112,57.09 835,83.35 (191,34.64) 397,09.19 6,164,35.80 6,561,44.99 43,35.03 487,98.32 6,116,81.70 962,10.63 6,887,57.69 24,58.00 6,912,15.69 (55,33.45) 487,98.32 8,158,61.58 8,646,59.90 75,65.83 793,47.97 7,928,77.76 1,083,23.80 8,956,68.11 28,55.01 8,985,23.12

(i) (ii)

64,40.72 156,99.57

Less : Closing Stock : (i) Finished Products produced and purchased for sale ................ (ii) Contracts and Work-in-Progress ............................................... (iii) Manufactured Components ....................................................... (Increase)/Decrease in Stock ............................................................ (B) Consumption of Raw Materials and Bought-out Components : Opening Stock .................................................................................. Add : Purchases ............................................................................... Add: Stock taken over on acquisition ............................................... Less : Closing Stock ......................................................................... (C) Purchases of Finished Products for sale ..................................... Group Share in Joint Ventures .......................................................... Total........

787,57.13 279,94.00 45,05.96

133

.. 340...........31 2006 Rupees lakhs 1.......47....22 SCHEDULE XII 2007 Rupees lakhs 2006 Rupees lakhs Interest.97 110................77..77...........38.......13 64..19..31 1............388.........218..... 9.......58..............17 219. Commitment and Finance Charges : On Term Loans and Debentures ........383.........35......... 5..............04 5.53...............99................47 Group Share in Joint Ventures ....01.........................76......... 2007 Rupees lakhs 2........77.. Total....15 125......93..21 98.60.........98 284.98..........30 409...........91 2.....20..................43 284........71 52.....................62 127.......................................................... On Others (Net) .........33 77.. Debentures and Bonds Gross [Note 18(b)] ..56..........40......57.....85 4.48 27....36..........................................21 299..... Welfare ..75...51...03.......01 409.............27 64...................394.129.. Wages..................72........ Bonus. .....31..........37.. 2.MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) SCHEDULE XI Personnel : Salaries............. Total..53......24 Group Share in Joint Ventures ........84 7..........40 39..50.... Total..77 62. Interest ............... Contribution to Provident and other funds . Less : Interest Income : Interest on Government Securities.45 236.............................44 Group Share in Joint Ventures ....................................... etc...54 2.... Finance charges ..........................55 110.95...........88........399...67 33.93.....Others ..43 16..Gross .....62 1...........69 107..65 134 .....53......24 1........

....33 (25.........94.......02........................08..........41......... Provision for doubtful debts/advances (Net) .87 119...51...12) 71.......................57 50........42.......34.......67....... Rent including lease rentals .................................................................14.....................................12 7.27 20................................05............05..23 32..................37.........10......04......................... Travelling Expenses ..00 194..............48 30............................. Donations and contributions .........07.......34. Subcontracting Charges ...61......... Amortisation of expenses ..48 92..... Machinery ...................... Tools consumed ...................01 97......................80 21..............12 28...........................41 41......616.... Sales Promotion Expenses ..72....... Total........... Excess of cost over fair value of Current investments(Net) ........50 36. Freight outward .................18 117..........88............................17........ Directors’ fees ... Provision for diminution in value of Long term investments .......83..........22.78 3.... Commission on sales/contracts (Net) ...43......70...09 Advertisement ................42...... Loss on Fixed Assets sold/scrapped/written off ...............77...............62.........................................04 1..............12 1..................352.............06 25....95 108............09...69 72.22........39.63 3..19...............62 2..............43 252.......39.............08 190.... Insurance ............88 957......94...................70 14. etc..............................83 2.........27 48............27......04...................04..89 13..................MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) SCHEDULE XIII Rupees lakhs Other Expenses : Stores consumed .....................................................61 109........88... Others ...82................................................................91 9................................................................81............33 362............................36....................................................71..34 120.......................26...610. Discount allowed .......... 148...........................................................91 2.64............................... ... 6...................91..84............46 300.31 402....................07.00..84 127........68 125..................................19 2...............07..78....48... Power and Fuel ......24.....51 7....... Repairs & Maintenance : Buildings .37 57...............................................82 266...30 473................................... Miscellaneous Expenses .........74 655............70 18..... Rates and Taxes .............. Property..58 9...........14 145................63 3....69 69.........................12 86......63 2007 Rupees lakhs 2006 Rupees lakhs 135 .344...34 Group Share in Joint Ventures ........... Cost of Projects................ 28.18 50.......65........................23 145..61........

20% 82. the parent. 2007 1. The Consolidated Financial Statements have been prepared in accordance with Accounting Standard 21 (AS 21) “Consolidated Financial Statements”.00% 100. intra group transactions and unrealised profits or losses have been fully eliminated.54% 100.e.89% Proportion of Voting Power where different as at 31-03-2007 as at 31-03-2006 - Name of the Subsidiary Company Country of Incorporation Automartindia Limited Mahindra Gesco Developers Limited (upto 10th October. the Company) and its subsidiary companies. The Consolidated Financial Statements relate to Mahindra & Mahindra Limited (M&M.00% 100.26% 86.03% 49. The Consolidated Financial Statements have been prepared on the following basis : (a) Investments in Subsidiaries : i) The Financial Statements of the Company and its subsidiary companies have been combined on a line by line basis by adding together the book values of like items of assets.03% 82.03% 49.00% 100. The subsidiaries (which along with Mahindra & Mahindra Limited.00% 56.06% 100. Accounting Standard 23 (AS 23) “Accounting for Investment in Associates in Consolidated Financial Statements” and Accounting Standard 27 (AS 27) “Financial Reporting of Interests in Joint Ventures” issued by The Institute of Chartered Accountants of India. Intra group balances.00% 100.00% 100.00% - - India India India Germany U.00% 100. 2007.89% as at 31-03-2006 75.00% 100. Singapore India Singapore Germany India India India India 51.00% 100.00% - 60.20% 82.00% 100.A.S.00% 49.99% 52. ii) iii) iv) The Financial Statements of the subsidiaries are drawn upto 31st March.54% 86.00% 100. constitute the group) considered in the presentation of these consolidated financial statements are : Proportion of ownership interest as at 31-03-2007 75. The difference between the costs of investment in the subsidiaries over the Company’s portion of equity of the subsidiary is recognised in the financial statements as Goodwill or Capital Reserve.00% 100.MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) SCHEDULE XlV Notes on the Consolidated Accounts for the year ended 31st March.20% 100.03% 49.00% 100.00% 99. 2006 & w.54% 86.56% 100.00% 60.00% 100. 30th March. 2007) Mahindra Consulting Engineers Limited (formerly known as Mahindra Acres Consulting Engineers Limited) Mahindra Ashtech Limited Tech Mahindra Limited Tech Mahindra GmbH Tech Mahindra (Americas) Incorporated Tech Mahindra (Singapore) Pte. Limited Bristlecone India Limited Bristlecone (Singapore) Pte. The difference between the proceeds from disposal of investment in a subsidiary and the carrying amount of its assets less liabilities as of date of disposal is recognised in the Profit and Loss Account as profit or loss on disposal of investment in subsidiary. Minority Interest in the net assets of consolidated subsidiaries consist of : a) b) v) the amount of equity attributable to minorities at the date on which investment in a subsidiary is made and the minorities’ share of movements in equity since the date the parent subsidiary relationship comes into existence.f.00% - 136 . income and expenses.03% 55.00% 99.00% 100. liabilities.00% 60.26% 56.26% 56. Limited Bristlecone GmbH Mahindra Engineering & Chemical Products Limited Mahindra Gujarat Tractor Limited Mahindra Holdings & Finance Limited Mahindra Holidays & Resorts India Limited * India India 50.26% 56.99% 51.

f.00% 86.00% 56.54% 86.38% 51.l. 37.20% 100.00% 137 .99% 80.62% 100.00% 56.00% 100.32% 61.25% 80.00% 100. 2006 & w.00% 100.00% India India India 50. 2006 & w. India South Africa India Sharjah Mauritius U.00% 82.24% 56.32% 51.00% 100.33% 51.69% 100.00% 51.00% 86.00% 72.00% India India U.f.K.00% 99.54% 100.02% 100.00% 77.00% 82. Mahindra International Limited Mahindra World City (Maharashtra) Limited (upto 10th October. 2007) Tech Mahindra (R & D Services) Limited Tech Mahindra (R & D Services) Incorporated Tech Mahindra (R & D Services) Pte.03% 51. 30th March.02% 49.r.00% 99.20% 82.00% 82. 2007) Mahindra Intertrade Limited Bristlecone UK Limited Mahindra Logisoft Business Solutions Limited Mahindra & Mahindra Financial Services Limited * Mahindra Steel Service Centre Limited Mahindra Shubhlabh Services Limited Mahindra USA Incorporated NBS International Limited Bristlecone Limited Bristlecone Incorporated Mahindra Insurance Brokers Limited * Mahindra & Mahindra South Africa (Pty) Limited Mahindra Engineering Design & Development Company Limited Mahindra Middleeast Electrical Steel Service Centre (FZC) Mahindra Overseas Investment Company (Mauritius) Limited Mahindra Holidays & Resorts USA Incorporated * Mahindra World City Developers Limited (upto 10th October.A.e.00% 90.S. 2006 & w.S. Singapore U.00% 100.03% 80.e.00% 99.91% 51.00% 100.54% 69.e.00% 100.00% 100.00% 100.03% 49.A.99% 100.MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) Name of the Subsidiary Company Country of Incorporation Proportion of ownership interest as at 31-03-2007 as at 31-03-2006 Proportion of Voting Power where different as at 31-03-2007 as at 31-03-2006 Mahindra Infrastructure Developers Limited (upto 10th October. 30th March.00% 100.00% 57. 40. 2007) Mahindra Renault Private Limited Mahindra Ugine Steel Company Limited Mahindra World City (Jaipur) Limited (upto 10th October.00% 100.99% 100. India India India India U.31% 100.24% 99.91% 61. Limited Stokes Group Limited India India U.00% 99.99% 44.00% 69. 2007) Mahindra SAR Transmission Private Limited Mahindra-BT Investment Company (Mauritius) Limited Tech Mahindra (Thailand) Limited Mahindra (China) Tractor Company Limited Mahindra Europe s.00% 51.00% 80.00% 100.00% 100.52% 55.00% India India Mauritius Thailand China Italy India 41.00% 82.00% 100.00% 49. India Cayman Islands U.00% 50.f. 2006 & w.00% 100.K.00% 100.00% 50.00% 80.e.S.f.00% 69.03% 49.00% 90.00% 57.84% 51.62% 100.A.20% 74.00% 100. 30th March.S.24% 56.69% 54.A.03% 99.00% 100.00% 80. 30th March.77% 100.00% 54.00% 100.20% 69.

00% 100. 2007) * Mahindra Stokes Holding Company Limited (w.f.e. Mauritius Mauritius Germany Germany Germany Germany Germany Indonesia India U.00% 100. 2006 & w.00% 100. 27 September.e.e. 29 November. 22 nd th th th th th th th th th U.90% 67. KG (w. 2007) MHR Hotel Management GmbH (w.00% 100. (w.f.e.f.f.f.f.f. U.S. ** Note : Tech Mahindra Foundation is not consolidated as a subsidiary as it can apply its income for charitable objects only and cannot pay dividend or transfer funds to its parent. 6 January.20% 99.e. Hunninghaus GmbH (w. 2006) CanvasM (Americas) Inc.f.2006) Mahindra Forgings International Limited (w.00% 100.03% 39.f. GmbH (w.00% 67.e.f.f. India U.00% 100.K.00% - Stokes Forgings Dudley Limited Jensand Limited Stokes Forgings Limited Plexion Technologies (India) Private Limited Plexion Technologies (UK) Limited Plexion Technologies GmbH Plexion Technologies Incorporated Mahindra Forgings Overseas Limited (w.A.00% 100.A.e.e.f.99% - 100.00% 100. U. 5 October.S. Germany U.e. 2007) th Mahindra Forgings Mauritius Limited (w. 21st March. 29th November.f.e.03% 100. 12 March.27% 49. 2007)** Fried. India Mauritius Mauritius Germany Germany Germany India 67. 2006) Gesenkschmiede Schneider GmbH (w.00% 90.00% 100.f. 1 January.36% - 100. 2006) iPolicy Networks Limited (w. 29 November.e.00% 100. 2006) JECO Holdings AG (w.f.00% 100.e.e.00% - excluding shares issued to ESOP Trust but not allotted to employees as per the Guidance Note on Accounting for Employee Share-based Payments issued by The Institute of Chartered Accountants of India. 138 .K. 5 October. Hunninghaus GmbH & Co.00% 100.00% 100.90% 67. 2006) Falkenroth Umformtechnik GmbH (w. 2007) DGP Hinoday Industries Limited (w. 1 January. 1 January.90% as at 31-03-2006 99.00% 100.52% 99.K.e.00% 100.90% 49. 2006) CanvasM Technologies Limited (w.f.00% 80.00% 100.K. 5 December.90% 67. 30th March. 29 November. 2007) * * th th th st st st th India 100. 2006) Schöneweiss & Co.e.77% 74. 2006) JECO-Jellinghaus GmbH (w.00% 66. 28 April.f.00% 100.00% - - - India Germany 47.f.e.00% 100. 2006) Falkenroth Grundstucksgesellschaft GmbH (w.52% 99.20% 99.e.00% as at 31-03-2006 100. includes fundamental economic rights and administrative rights (including but not limited to voting rights.20% 100.00% 100. 2007) Fried. 11 August.10% 100.MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) Name of the Subsidiary Company Country of Incorporation Proportion of ownership interest as at 31-03-2007 99. 2006 to 10th October.90% 67.27% 39.47% - - January.53% shares.e. 7 December.00% - Proportion of Voting Power where different as at 31-03-2007 100.f.00% 100.00% 100.90% 67.00% 75.e. 2006) Mahindra Forgings Global Limited (w.e.f. 29 November.52% 100. information rights and right to participate in shareholders meetings) in respect of 9. 2007) Mahindra Integrated Township Limited (from 4 May. 2006) PT Tech Mahindra Indonesia (w.

00% 50.74% 32.49% 50. 2.77% 18.00% 32. of the parent company had been re-valued as at 31st October. 2007.01% 34.00% 22. Cost includes financing cost relating to borrowed funds attributable to the construction or acquisition of qualifying fixed assets upto the date the asset is ready for use.74% 32. The indices.77% 18. $ Shareholding is through a subsidiary. the cost and related depreciation are removed from the books of account and resultant profit (including capital profit) or loss. 2007. 2007) The financial statements of all the Associates are drawn up to 31st March.79% Percentage of ownership interest as at 31-03-2006 21.00% (a) Mahindra Sona Limited * (b) PSL Erickson Limited * (c) Mahindra Water Utilities Limited $ (d) Mahindra Inframan Water Utilities Private Limited $ India India India India Interest in Joint Ventures are accounted for using Proportionate Consolidation Method. (ii) Land and Buildings.11% 30. is reflected in the Profit and Loss Account.79% 34.11% 30.com Limited Rathna Bhoomi Enterprises Private Limited Kota Farm Services Limited Mriyalguda Farm Solution Limited Mega One Stop Farm Services Limited Mahindra Forgings Limited (formerly known as Mahindra Automotive Steels Limited ) Mahindra Composites Limited (formerly known as Siroplast Limited) Mahindra Gesco Developers Limited (from 11th October. Mahindra Holdings & Finance Limited.e.74% Owens Corning (India) Limited Mahindra Construction Company Limited Officemartindia.49% 50. Mahindra Infrastructure Developers Limited. * Shareholding is through a subsidiary. if any. (c) Investment in Associates The Group’s Associates are : Name of the Entity Country of Incorporation Percentage of ownership interest as at 31-03-2007 21. 1984 at depreciated replacement values on the basis of a valuation made by a firm of Chartered Surveyors & Valuers. 2007) Mahindra Renault Automotive Private Limited (w. 139 .09% 50.79% 34.06 % 50. Accounting Policies : (A) Fixed Assets : (a) (i) rd India India India India India India India India India India India 47.00% 50. The financial statements of all the Joint Ventures are drawn upto 31st March. 23 February.00% Percentage of ownership interest as at 31-03-2006 29.56% 46.06% 50. if any. In case of borrowed funds and liabilities in foreign currencies for the acquisition of fixed assets from a country outside India.MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) (b) Interests in Joint Ventures The Group’s interests in jointly controlled entities of the Group are : Name of the Entity Country of Incorporation Percentage of ownership interest as at 31-03-2007 29.63% 37.50% 37. the exchange differences are adjusted to the cost of such asset.00% 20.f. 2006 to 29th March.56% - All Fixed Assets are carried at cost less depreciation except as stated in (ii) below. used are not stated in the valuation. When an asset is scrapped or otherwise disposed off.00% 47.

33 % : at 10.00 % to 100. (d) Websites : The expenditure incurred is amortised over the estimated period of benefit.00 % (iii) Depreciation charge for each year is after deducting the amount representing the depreciation on the increase due to revaluation of Land and Buildings. not exceeding ten years. are carried at cost. On early buyback. (e) Time Share Weeks : Intangible assets representing ‘time share weeks’ are amortised over a period of ten years. where appropriate.56 % to 6. Investments in Associates are accounted using the equity method. (b) Development Expenditure : The expenditure incurred on technical services and other project related expenses are amortised on the completion of the development work over the estimated period of benefit not exceeding five years.MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) (b) (i) (ii) Leasehold land is amortised over the period of the lease. determined by category of investment.29 % to 33. (f) Trademarks : The expenditure incurred is amortised over the estimated period of benefit.69 % to 33. Depreciation on assets is calculated on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act. manufacturing overheads and excise duty. not exceeding six years commencing with the year of purchase of the technology. (B) Intangible Assets : All Intangible Assets are initially measured at cost and amortised so as to reflect the pattern in which the asset’s economic benefits are consumed : (a) Technical Knowhow : The expenditure incurred is amortised over the estimated period of benefit. any unamortised expenditure is fully written off in that year. (D) Inventories : Inventories are stated at cost or net realisable value. transferred from the Revaluation Reserve. (c) Software Expenditure : The expenditure incurred is amortised over three financial years equally commencing from the year in which the expenditure is incurred. Current investments are valued at the lower of cost and fair value.33 % : at 7. 1956 : Building (at sites) Building (others) Plant & Machinery Furniture & Fixture Vehicles : at 25. whichever is lower. where appropriate. Cost is arrived at on a weighted average method and includes. However. (g) Non Compete Fees : Non compete payments are amortised equally over the estimated period of benefit. in the value of investments. based on useful life of the assets. provision for diminution in value is made to recognise a decline other than temporary. 140 .00 % : at 2. not exceeding ten years. conversion or repayment of borrowings. includes interest. other than in Associates. Cost of the inventory. which are in no case lower than the rates specified in Schedule XIV to the Companies Act. (C) Investments : All long term investments.00 % to 50. (E) Miscellaneous Expenditure (to the extent not written off or adjusted) : Expenditure carried forward under this head is amortised as follows : (a) Finance Charges : The expenditure incurred in raising long term borrowings is amortised over the period of the borrowings. except : For the following class of assets where depreciation is calculated at rates. for long term projects. not exceeding five years.67 % : at 14. 1956.

(G) Revenue Recognition : (a) Sales of products and services are recognised when the products are shipped or services rendered. (b) (H) Long term contracts and Property Development Activity : Income on long term contracts and property development activity is accounted on the percentage of completion basis which necessarily involves technical estimates of the percentage of completion of each contract/activity. In the case of monetary items incurred for the acquisition of fixed assets and technical know-how from a country outside India. or on a deferred payment basis. accounted for on percentage of completion basis. as these are of a technical nature. With effect from 1st October. 2001 is accounted for on equated basis in accordance with the terms of the contract (except in some cases in which it is accounted for by applying the interest rate implicit in such contracts). revenue is recognised as a proportion of the work completed based on progress claim submitted. which entitles the Timeshare member for the Timeshare facilities over the membership usage period. such as grants by way of refund of octroi duty paid by the Company for its manufacturing unit located in a developing region. have been relied upon by them. Income from long term contracts and sale of property (concerning property development activity) is. In the case of monetary items (other than those for acquisition of fixed assets from a country outside India). Where the management fee is linked to the input costs. Income from hire purchase contracts entered prior to 1st April. the exchange differences are recognised in the Profit and Loss Account. 2001 the income is accounted for by applying the interest rate implicit in such contracts. is recognised as Timeshare income in the year in which the purchaser of Timeshare becomes a member and the balance representing ‘Advance towards members’ facilities’ is being recognised as Timeshare income equally over a period for which holiday facilities are provided commencing from the year in which the member is entitled to benefits of membership under the scheme. For hire purchase transactions entered on or after 1st April. admission fee. Upto 30th September. which is non-refundable. the exchange differences are adjusted to the cost of such assets.MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) (b) Separation and Other Costs : Special Payments/Pensions under Voluntary Retirement Schemes. [Refer paragraph (H) below]. Such estimates. In respect of forward exchange contracts the premium or discount arising at the inception of such a contract is amortised as expense or income over the life of the contract. Where the management fees are linked to the revenue generation from the project. is recognised as income equally over the usage period. made by the management and certified to the auditors. relevant portion reasonably attributable towards cost required to market Timeshare. the assets and liabilities. Project management fees receivable on fixed period contracts is accounted over the tenure of the contract/agreement. Foreign Exchange Transactions : All foreign currency monetary items are translated at the relevant rates of exchange prevailing at the year end. In view of the uncertainty in respect to the collection of these grants. Entitlement fee. as reduced by the net present value of the lease instalments falling due. which is assessed and revised periodically. 141 . (c) (F) Preliminary expenses are written off over a period of five years from the date of incurring such expenditure. and costs to completion of the contract/activity. for which membership fee is collected either in full up front. revenue is recognised on the percentage of completion basis. on the basis of which profits/losses are accounted. is recognised as income on admission of a member. such grants are accounted for as and when the disbursements are received. (K) Time Share Business : The activity of selling Timeshare and providing holiday facilities to members for a specified period each year. Dividends from investments are recognised in the Profit and Loss Account when the right to receive payment is established. over a number of years. (J) Government Grants : The Company is entitled to various incentives from a State Government. In respect of non-integral foreign operations. 2005 in accordance with the new membership rules. (I) Income from Lease/Hire Purchase : Finance earnings on lease transactions are calculated by applying the interest rate implicit in the lease. The liability is amortised over a period of five years from the month in which the liability is incurred. to the investment in the leased assets. 2005 out of the total membership fee. both monetary and non-monetary are translated at the closing rates and income and expenses are translated at exchange rates at the dates of transaction and all the resulting exchange differences are accumulated in foreign exchange fluctuation reserve until the disposal of the net investment.

(N) Leases : The Group’s significant leasing arrangements are in respect of operating leases for premises (residential. compensated absences and post retirement medical benefit schemes are determined by independent actuaries. and are usually renewable by mutual consent on agreed terms. Obligation is measured at the present value of estimated future cash flows using a discounted rate that is determined by reference to the market yields at the Balance Sheet date on Government Bonds where the currency and terms of the Government Bonds are consistent with the currency and estimated terms of the defined benefit obligation. Deferred tax assets arising on account of unabsorbed depreciation or carry forward of tax losses are recognised only to the extent that there is virtual certainty supported by convincing evidence that sufficient future tax income will be available against which such deferred tax assets can be realised. office.279 shares (2006 : 37. Accordingly the Company has reduced the Share Capital by Rs. 366. Superannuation Fund. 2003. godowns.00 lakhs) utilised for provision for investment in subsidiaries in the standalone accounts of the Company.MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) (L) Employee Benefits : i) Defined Contribution Plan Group’s contributions paid/payable during the year to Provident Fund. Deferred tax is recognised. ii) Defined Benefit Plan/Long term compensated absences Group’s liability towards gratuity. The estimates for accounting of warranties are reviewed and revisions are made as required. Income/Expenses relating to the enterprise as a whole and not allocable on a reasonable basis to business segments are reflected as unallocated corporate income/expenses.09 lakhs) for the bonus shares issued by the company in September. Securities Premium by Rs. the difference between book value of the receivables assigned and consideration received as reduced by the estimated provision for loss/expenses & incidental expenses related to the transaction is recognised as gain or loss arising on assignment. is included under current liabilities. On derecognising. an amount of Rs.).98 lakhs (2006 : Rs. The Share Capital of the company has also been reduced and the General Reserve increased by Rs. future receivables & interest thereof are assigned to the purchaser. 1837. Segments are identified having regard to the dominant source and nature of risks and returns and internal organisation and management structure. (M) Product Warranty : In respect of warranties on sale of certain products. 3. The aggregate lease rentals payable are charged as Rent including lease rentals. On derecognition. 1230. Actuarial gains and losses are recognised immediately in the statement of Profit and Loss Account as income or expense.50.884 shares) held by the trust pending transfer to the eligible employees. has been transferred from Investment Fluctuation Reserve to General Reserve. (P) Taxes on Income : Current tax is determined as the amount of tax payable in respect of taxable income for the year. on timing differences. 375.69. In the Consolidated Accounts. 1068. etc. The leasing arrangements which are not non-cancellable range between 11 months and three years generally. In case of assignment of receivables the assets are derecognised as all the rights. Inter-segment transfers are at prices which are generally market led. ESIC and Labour Welfare Fund are recognised in the Profit and Loss Account.09 lakhs). In accordance with the Scheme of Arrangement approved by the Hon’ble High Court of Bombay on 12th December. the Investment Fluctuation Reserve account is reflected with a corresponding adjustment to ‘General Reserve’. 142 4. Accordingly. the Investment Fluctuation Reserve has been utilised against diminution in value of certain investments in the accounts of the Company.93 lakhs (2006 : Rs. . 1797. Past services are recognised on a straight line basis over the average period until the benefits become vested. 366. (O) Segment Reporting : The accounting policies adopted for segment reporting are in line with the accounting policies of the Group. the estimated costs of these warranties are accrued at the time of sale. 375. titles.93 lakhs (2006 : Rs. being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. stores. The Guidance Note on Accounting for Employee Share-based Payments issued by The Institute of Chartered Accountants of India requires that shares allotted to a trust but not transferred to employees be reduced from Share Capital and Reserves.95 lakhs (2006 : Rs. and not set up in the consolidated accounts.93 lakhs) for the 36. the difference between book value of the securitised asset and consideration received as reduced by the estimated provision for loss/expense and incidental expenses related to the transaction is recognised as gain or loss arising on securitisation. subject to consideration of prudence. (Q) Income from Securitisation and Assignment : Securitised assets are derecognised as the contractual rights therein are transferred to the special purpose vehicle or buyers as the case may be. using the projected unit credit method. The above monies which is treated as advance received from it. 2005 to the trust but not yet transferred by the trust to the employees. Revenues and expenses have been identified to the segments based on their relationship to the business activity of the segment.

..............276..... 2007.....43 60........... at any time on or after 7th May.36.............. at par.......00 lakhs (2006 : Rs.... at par.................. representing depreciation on assets used for development work..... The depreciation charge for the year excludes : (i) (ii) (b) An amount of Rs............ *The depreciation charge for the year includes an amount of Rs............... (a) During the year ended 31st March............................ 2011........ Loans : (a) Secured borrowings are secured by a pari-passu charge on immovable properties of the entities both present and future.....................63 130...............................58 lakhs) (including future interest receivable) for a consideration of Rs... subject to certain exclusions......... The Company had issued during the year ended 31st March.......................... subject to certain exclusions and are also secured by pari-passu charge on the movable properties of the entities including movable Machinery..... 55630........................... 60996.........59.........51..........50 lakhs) representing lease terminal adjustment for the year........ Furniture & Fittings .............. Mahindra Holidays & Resorts India Limited has with recourse securitised receivables of Rs... 2005...... Excludes transactions where a company ceased to be a subsidiary and again became a subsidiary.....................06 lakhs (2006 : Rs.. 2622.....................28 lakhs)..... Out of these upto 31st March...... 143 .713......... (b) 8............. An amount of Rs..................86......00 lakhs) and provision for estimated loss/expenses is Rs... Premium payable on redemption of Bonds 2009 had been fully provided in the previous year by debiting the same to Securities Premium Account (SPA)..........68 171.......... Zero Coupon Foreign Currency Convertible Bonds (Bonds 2009) aggregating US $ 100 million......... Mahindra & Mahindra Financial Services Limited has without recourse securitised/assigned loan receivables of Rs............................... Loans and Advances from Banks are secured by a first charge on whole of the current assets namely inventories...63 247........... Nil (2006 : Rs..................14...........28 lakhs).........................................28 lakhs (2006 : Rs............................17.........15 24.... Property – Leasehold ........ 2006 upto 7th March........... 6136............................. 44.............. 7409............31 1....... Consequent to the conversion premium aggregating Rs..... 43...... 55431.17. etc......57 15. Development Expenditure ...................... the company issued Zero Coupon Foreign Currency Convertible Bonds (Bonds 2011) aggregating US $ 200 million............03 Depreciation/ Amortisation 17.... Rupees lakhs Description of Assets * Cost/Professional Valuation 21....................81 47.......10 lakhs).... Cycles.... During the year.. Tools and Accessories............ etc.....62 lakhs (2006 : Rs........42 = US $ 1....05...94 lakhs no longer payable on bonds converted into equity shares/ GDRs has been credited back to SPA during the year. both present and future....04 per share with fixed exchange rate of conversion of Rs....... representing depreciation on the increase due to revaluation of Land and Buildings transferred from the Revaluation Reserve.......... 922........ Bonds aggregating US $ 0......... 2082................36 951....... Subsequent to the year end.....00 lakhs) contracts amounting to Rs.. Machinery Spares............... Total .............38... The income booked on securitisation/assignment of receivables during the year is Rs.......92 20.....30 19..57 6... The bond holders have an option to convert these bonds into Equity Shares with full voting rights or Global Depository Receipts (GDRs) determined at an initial conversion price of Rs. 866........................... 51468. claims....................... certain book debts..66 lakhs)........ 3....... Technical Know-how ............. During the year ended 31st March.................. 2735.........................33 11........ 7...68...... ..06.19 5.... 42...30 million have been converted into equity shares/ GDRs.. (a) Additions to assets include assets taken over due to acquisition of subsidiaries : Land .......... 0....................56....... 3..190..... 5718..... Trademarks ...............MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) 5.....22 lakhs (2006 : Rs........15 7..... This expenditure is transferred to Development Expenditure and is appropriately amortised....25 1............. both present and future............ a matching amount has been provided for................13 lakhs (2006 : Rs.....51........... receivables................... 2007... Plant & Machinery ....... Vehicles................. Building .. outstanding monies... 2007...............87 lakhs (2006 : Rs................. As the income booked in respect of securitisation/assignment of receivables include certain amount towards cost of future servicing of the securitised/assigned pool.............22 lakhs)..........................34 35........79 (b) 6...79 225.. 21837.. Bonds aggregating US $ 97...... 22644.....Leasehold .....90 million have been converted into equity shares/GDRs....................................................41 1...45 lakhs (2006 : Rs.... Land ..

94.05. 4. 8186. 2007.60 12. 7. 2007 204.22) (59.05. 2007 1. 2007 Rupees lakhs Gratuity (Funded) I.76 20.16 3.03.02. Expense recognised in the Statement of Profit and Loss account for the year ended 31st March. Upto 31st March.05.45 lakhs. is disclosed under Cash and Bank balances.30 16. 6761.05.30.98 1. the tax expense for the year is higher by Rs.30.08 (1.94.20) (16.MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) The Bonds 2011 may be redeemed. redeemed or purchased and cancelled. Change in the obligation during the year ended 31st March. The net proceeds of Rs.14 23. 2.96. Employee Defined Benefits : Defined benefit plans – as per Actuarial valuation on 31st March.79.33 144. 2.67. 5. which was hitherto being debited gross of tax.06 10.52.13) (8.16) 3.22) 32.06 (3.61.87. 2.07. 9. 4.41) - The major categories of plan assets as a percentage of total plan Funded with LIC 144 . 6.23 100% 16.41 (16.53 20.83 14. 2011 at 128.17 (33. II. the bonds fall due for redemption on 14th April. the company has during the year debited the provision for premium payable on redemption of convertible bonds to the Securities Premium Account net of tax.67. 2007 1.17. 5. Present Value of Defined Benefit Obligation as at 31st March.01 lakhs.87.71 Gratuity (Unfunded) Post Retirement Medical Benefits (Unfunded) Net Asset/(Liability) recognised in the Balance Sheet as at 31st March. 5. 1425.03. 2008 subject to satisfaction of certain conditions.14 23. 2007 Funded status [Surplus/(Deficit)] Net Asset/(Liability) as at 31st March.41) 3.03 per cent of their principal amount.31) 144.46.79.02.16) (32. 2007 is higher by Rs.97) (8.21 lakhs.64 (12.17. at the option of the Company at any time on or after 13th April.16) 66.06) (3.33 22.62 15. In accordance with the announcement “Tax effect of expenses/income adjusted directly against the reserves and/or Securities Premium Account” issued by The Institute of Chartered Accountants of India. 3.11 12.39 10. unutilised as at 31st March.66 lakhs. 3.16 (32.05.06) III.61.11 (59.30.30. Change in Fair Value of Assets during the year ended 31st March.77 (15.44.39.53) 11. Deferred Tax Asset is higher by Rs. 6. 2007 Fair Value of plan assets as at 31st March.11.53. Unless previously converted.29.77 (15.98 11. none of the Bonds 2011 have been converted into equity shares/GDRs. Fair Value of plan assets at the beginning of the year Expected return on plan assets Contributions by employer Actuarial Gain/(Loss) Actual benefits paid Fair Value of plan assets at the end of the year Actual return on plan assets 125. 6.98 1. 4. Present Value of Defined Benefit Obligation at the beginning of the year Current Service Cost Interest Cost Actuarial (Gain)/Loss Benefit payments Present Value of Defined Benefit Obligation at the end of the year 190. 3.08 (1.83 14. 4.20. 1425. as a result the Securities Premium Account as at 31st March. Current Service Cost Interest Expected Return on plan assets Actuarial (Gain)/Loss Payments on account of employees transferred Total expense 16.31) 204. 85836.52.64 (8. in whole but not in part.20) 28. V. 2007.53) (2. 2.76) 32.95.21 lakhs and consequently the profit for the year after tax is lower by Rs.46.23) (7.17. 2007 1. 2007 1. 3.06 IV.

8. the Company has (i) (ii) Accounted for (net of tax) Rs. as at 31st March. Accounted as prior period adjustment (net of tax) Rs. considered in actuarial valuation. Nasik confirmed a demand of Rs. Further. The estimate of future salary increase. 2. Nil) and the resultant tax credit thereon is Rs. 2005 passed by the Commissioner is unsustainable in law and has filed an appeal against this order. 1918.00% .66 lakhs in respect of foreign subsidiaries acquied during the later part of the year. 2584. Mumbai as also the Collector Central Excise (Appeals). such as supply and demand in the employment market. 973.20% - Indian Assured Lives Mortality (1994-96) Modified ultimate Age 21 to 44 .MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) Rupees lakhs Gratuity (Funded) Gratuity (Unfunded) Post Retirement Medical Benefits (Unfunded) VI.1. along with stay application. before the CESTAT. Current Liabilities and Provisions include Pension liability of Rs. take account of inflation.00 lakhs in respect of Company’s Armada range of vehicles manufactured during the years 1992 – 1996. certain statutory/expert bodies have also confirmed the concerned vehicles to be 10-seater vehicles. During the year the Company has adopted Accounting Standard (AS) 15 (revised 2005) Employee Benefits.74 lakhs as a reduction from General Reserve and Rs 69. Navi Mumbai. 9525.60 lakhs. 10. 145 . 307. During the current year. Mumbai had upheld the classification of these vehicles as 10-seaters. 3. the Company does not expect any liability on this account. The Commissioner of Central Excise (Adjudication).55 crores and imposed a penalty of Rs. Similarly. 20.85 lakhs Gross (2006 : Rs.35% 8.2. which was received by the Parent Company on 4th April.84 lakhs being on account of Provision for Gratuity Rs.39) Based on expectation of the average long term rate of return expected on investment of the fund. 2007. the Commissioner of Central Excise (Adjudication). Nil) arising from certain refinements in the actuarial assumptions and accrual of Post Retirement Medical Benefits on an actuarial basis Rs.35% 6.00% 3.50% .8.9.00% Age 45 to 60 . As such. 2005 upheld this classification. seniority.20 42. promotion and other relevant factors.57 (5.08 lakhs as a reduction from Profit and Loss account. Employee Benefits (revised 2005) issued by the Institute of Chartered Accountants of India in May 2007.00% VII. The Customs. Excise and Service Tax Appellate Tribunal (CESTAT) has also by its order dated 19th July. during the estimated term of obligation. confirming the demand made on the Company for payment of differential excise duty (including penalty) of Rs. 30411. The department’s Statutory Appeal against this order has been admitted by the Supreme Court. passed an order on 30th March. In earlier proceedings.93) (40. during the years 1991-1996.50% . 2005.20% As at 31st March. 5. 24. the Collector of Central Excise. The Company has been legally advised that the order dated 30th March.00 lakhs in connection with the classification of Company’s Commander range of vehicles. 2007 7. Navi Mumbai. The final hearing in the matter is awaited. 4. Whilst the Company had classified the Commander range of vehicles as 10-seater attracting a lower rate of excise duty.59 lakhs Gross (2006 : Rs. 8419. Effect of one percentage point change in the assumed medical inflation rate One percentage point increase in medical inflation rates One percentage point decrease in medical inflation rates Effect on the aggregate service and interest cost of Post Employment Medical Benefits Effect on the accumulated Post Employment Medical Benefits obligations Basis used to determine expected rate of return on assets: 9. The Tribunal has in this case too granted an unconditional stay against the order. the Commissioner of Central Excise. has held that these vehicles could not be classified as 10-seaters and as such attracted a higher rate of excise duty. Read with the Accounting Standard Board Guidance on implementing AS 15. on the same grounds as adopted for Commander range of vehicles. 2005. Actuarial assumptions 1. The Company is confident that it would succeed in the case and the Company’s stand that the Commander and Armada Vehicles are 10-seater vehicles would be upheld. Discount Rate Expected rate of return on plan assets In-service Mortality Turnover Rate Medical premium inflation 7.

1011.... Sales tax and Service tax claims disputed by the Company relating to issues of applicability and classification aggregating to Rs...11 lakhs (Net of Tax : Rs........29 lakhs) has been accounted for as at the year end...87 lakhs (2006 : Rs.... During the year the Company has acquired additional 1600 shares at total consideration of Rs..64 lakhs).. The ultimate settlement is contingent on the conclusion of negotiations..77 lakhs (2006 : Rs. payable over three years and calculated based on achievement of specific targets... 12686.88 lakhs).... 0. relating to issues of deductibility and taxability in respect of which the matters are in appeal and exclusive of the effect of similar matters in respect of assessments remaining to be completed : — — (ii) Income tax : Rs..98...........06 28.... 2005... 12.........68 (ii) (iii) (iv) (c) Taxation matters : (i) Demands not acknowledged as debts and not provided for.......... 17550......... 668... The products are generally covered under a free warranty period ranging from 6 months to 3 years. 19698. 4706.. 15126.. 3439.... supply.. manufacture. as additional cost of acquisition... The Company had acquired Tech Mahindra (R&D services) Limited vide Share Purchase Agreement dated 15th November.. 784. 6407. On Capital account : Rs.40 lakhs)).. strictly in terms of the relative contracts...... Provision for Contingencies Rs..... 10784. 346......... 6321....... (f) 12.... This relates to warranty provision made in respect of sale of certain products.Net of Tax Rs... 443....25 lakhs (2006 : Rs.....43.. Group Share in Joint Ventures Rs....10 lakhs and the same has been accounted as additional cost of acquisition.09 lakhs) Group Share in Joint Ventures : Rs.. 118.. for a initial consideration of Rs.... the amount of which is estimated at a ceiling of Rs.....86 lakhs) (2006 : Rs.36 lakhs (2006 : Rs... (a) Provision . 5123......... the estimated costs of which is accrued at the time of sale.. 118........ 12.24 lakhs (Net of Tax : Rs... 10342.54 lakhs) Surtax matters : Rs..69 lakhs (2006 : Rs.60 lakhs (including stamp duty).20 lakhs)..56 lakhs (2006 : Rs. 3.00 lakhs (Net of Tax : Rs.. 6285. hence..40 2.. 6. 1491......... Accordingly Rs.............20 lakhs (2006 : Rs.........05 2006 Rupees lakhs 10... 0....88 lakhs) Items which have succeeded in appeal......... 14242..20 lakhs (2006 : Rs. For other companies ....... 5. Other Matters (excluding claims where amounts are not ascertainable) : Rs... TMRDL and its two wholly owned subsidiaries have become subsidiary/step subsidiaries of the Company with effect from the date of acquisition i.MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) 11......05 lakhs).. erection and commissioning of plant and equipment placed by various customers.80 lakhs.. (b) Claims against the Companies not acknowledged as debts comprise of : (i) Excise Duty.......... The consideration so payable would be accounted in the books of account in the year of achieving the milestones under the Agreement...97 lakhs) includes provision for warranty Rs.13 lakhs (2006 : Rs...00 14.88 lakhs (2006 : Rs........ as in the past. In respect of contracts for design... the liability for liquidated damages/ penalties... 20527. 328....... 5186..48 lakhs)...80 lakhs) (d) (e) Bills discounted not matured Rs.......77 lakhs (Net of Tax : Rs. Others . The contingent consideration is payable in cash and cannot exceed Rs....75 lakhs) is in respect of labour demands under negotiations at certain locations of the Company........... However..... but the Income tax Department is pursuing/likely to pursue in appeal/reference and exclusive of the effect of similar matters in respect of assessments remaining to be completed : — — Income tax matters : Rs.. 0.... Contingent Liability : (a) Guarantees given : Outstanding amounts against the guarantees 2007 Rupees lakhs For employees ...71 lakhs) .... 628........... it is expected to have the liquidated damages/penalties waived... 146 (b) ... 2342.......60 lakhs)).. 10503.19 lakhs) (2006 : Rs....... 28th November...e. 946... 1008.. 8422.80 lakhs (2006 : Rs.. 2005.. As a result.......32 lakhs (2006 : Rs....00......50 lakhs (2006 : Rs.. the committed dates of completion had expired and.....Others Rs... The terms of purchase also provide for payment of contingent consideration to all the selling shareholders......

.. 60977.88) 2006 212.............................43...........21.........27 Net Deferred tax liability/(assets) (14.. 260...........67.................97.................... 60....................12............... The components of Deferred tax liability and assets as at 31st March..57........... 3...... including certain expenditure based on allocations made aggregate Rs...................... Add : Provision made during the year ..........89.............11 lakhs (2006 : Rs....75 33...........................................45 13......88......83.......05... 2007 are as under : Rupees lakhs 2007 Deferred tax liability : (i) On fiscal allowances on fixed assets ................... Group Share in Joint Ventures: Rs...............00 * 3................70........ Unabsorbed depreciation carried forward # ........58 31.21................99 4........................... * includes utilisation during the year Rs......97 306... Less : Utilisation/Reversal during the year ....23...29 36........................20 2006 33...........43.....................90....08.................39 Deferred tax assets : (i) Provision for Compensated absences .. Research and Development expenditure debited to the Profit and Loss Account....... 33............. (ii) (iii) (iv) (v) (vi) Provision for Doubtful debts/Advances .........02........ Add : Other entities ....48 (vii) Others Group Share in Joint Ventures………………………………………………………………….................................. Premium on Redemption of Zero Coupon Convertible Bonds .............................91....................45 3..... ......14 lakhs)....... Balance as at 31st March..........................70 st Contingency 2006 2007 4............MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) The movement in above provisions is as follows : Rupees lakhs Warranty Provisions Balance as at 1 April.20.... 2007 is Rs...............78 292...................03 42.56 lakhs).46.01 63.................. 11584.......52 lakhs) 15..................... 1................27 2........68..48 11........ Group Share in Joint Ventures: Rs.............................52 53..............27 27....... # (considered............ Group Share in Joint Ventures ............................. 147 .............75..99 lakhs) 13..............................39 115..20...52..............45 118........93.........................10 96............09 28...65...06..99 * 4.81 66...09 20..............16 30.... Provision for Post Retirement Medical Expenses ..01.....21.......73 69...59 78.29......... 4....61.... Provision for Gratuity ....81 233.02.. 14936......88 lakhs (2006 : Rs..07 lakhs (2006 : Rs...........29 103....... 271.... The estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March....29 67....77 47.........86 1.........02........ 11................40 44..... 64818.. (ii) Others .....................75 lakhs (2006 : Rs..........72 lakhs)...............75 2.................97..........15 95.........85 98. .......75 2007 63.42...................60 lakhs (2006 : Rs....43........76 21.. 14.. will result in sufficient future taxable income against which this can be realised).... as there are compensatory timing differences the reversal of which...

....85 lakhs (2006 : Rs............ Work-in-progress – Property Development Activity and Long Term Contracts and Advances recoverable in cash or kind or for value to be received includes Group’s share of Rs. Profit on divesture of Long Term Investments . No......31 (15......17) 2006 Rupees lakhs 20.79........................... (Excess)/Short provision of Income Tax in respect of previous years................ 52493............96 lakhs (2006 : Rs......... Exceptional items of Rs................03 lakhs (Debit) [2006 : Rs..................06 (524.......32) 19................... Upfront Payment to a customer* ......... irrevocable and non-refundable..................... 9............. 5...11 20......................MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) 16..................................11 Dividends on other investments Rs..... Other Adjustments ..... 5130....... 1....... 9854..02... this payment has been disclosed as an exceptional item in the Profit and Loss Account........ a group subsidiary has entered into Global Sourcing Agreement relating to the development of a global sourcing model for strategic outsourcing services.....06 (8..... Figures in brackets signify charge to Profit and Loss Account...... Name of the Company Mriyalguda Farm Solution Limited Mega One Stop Farm Services Limited Mahindra Construction Company Limited Mahindra Gesco Developers Limited (from 11th October.. Name of the Company Mahindra Forgings Limited (formerly known as Mahindra Automotive Steels Limited) Owens Corning (India) Limited Rathna Bhoomi Enterprises Private Limited Mahindra Composites Limited (formerly known as Siroplast Limited) Kota Farm Services Limited Sl......... 7................................ 2006 to 29th March........ 90......................... Premium on redemption of preference shares .........08...... 2007) Name of the Company Tech Mahindra Foundation 148 ...... 395...32 lakhs (2006 : Rs....... Amortisation of liability and other retirement benefits made under Voluntary Retirement Schemes ... Debentures and Bonds comprise Rs... the commencement of which has been delayed pending resolution of certain matters including receipt of approvals and outcome of court cases..... 8. Total .. comprise of the following : 2007 Rupees lakhs 1... 2....... (a) (b) (34. Profit on sale of investments (net) includes profit on disposal of current investments (net) Rs. Adjustments pertaining to previous years........ 5.............29..... and profit on disposal of long term investments (net) Rs................04... 3........ Interest on Government Securities...... No..... 784.............. .. Related Party Transactions : (a) Names of related parties where transactions have taken place during the year : Subsidiaries : Sl..................59 2............. Gratuity and post retirement medical benefit (net of tax of Rs.. 1...35............ Total ................80) (8............................................... 3...03) 2006 Rupees lakhs 275................................. 706...........84 3... 973....34. Profit on Discontinuation of Operation in a subsidiary ......80 lakhs to the customer which is unconditional. net of current and deferred tax.................57) 263. As per the terms of agreement........ No................... comprise of the following : 2007 Rupees lakhs 1....................39 lakhs)...................42 * During the year....40........41) 36.......93... 4331........18... 151......... a group subsidiary has made an upfront payment of Rs.....................................07) (4... 6... Others .... 6..... 109.......40..52 23.............. Accordingly. (c) 19...................... 2...............14 lakhs (2006 : Rs... 4...73 lakhs (2006 : Rs. 99............ 495.............15 lakhs) and Rs... 2............18. 11729.. with a customer for a term of five years............01 (117.....09 lakhs)....73 lakhs (2006 : Rs...61 lakhs) is in respect of current investments.... 3.... Associates : Sl.42 lakhs (credit)]....... 18....... 17... 26340..... 2651.. 20........62 lakhs) in respect of long term and current investments respectively............18 lakhs) on account of certain projects......60 lakhs) ................. 4762.... 4.....

Anand Mahindra Mr.................................................................. 149 ...19) 1..12 (-) (0........49) 0.................... (80...64 (29...41 (19.................................. 1........N.. Executive Directors .00................................... A.........00) (6............25...............57...... Name of the Company Mahindra Sona Limited Mahindra Water Utilities Limited Sl.........50.......11 (25.......................................................... 6........................................51......................28...............16 (42.............80) 7...........42 (1.......................18... 7..00......... Diminution in value of other assets written back .. Fixed Assets .............. Mr..............05) (-) (-) (6.................10) 13.......00.....00) (-) (1.....92..........35 (91.........00) (21.....00) (48............................ Interest received ..... Share Application Money paid ............ Nature of Transactions Subsidiary Companies Associate Companies Joint Ventures Key Management Personnel 1............22) (-) (-) (16............92.. Cash discount received ...18...16. Sales Goods .......... Services .80 (90................. To Related Parties ..... Deputation of Personnel From Related Parties ............00 (2.................................80) 71.....70) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (1.................. Inter Corporate Deposits refunded by parties ..............28) (-) (-) 4..............45) (-) (-) (-) (-) (-) (-) (-) (-) (-) 1....... Doshi Mr... No................. Fixed Assets ............ (36....................................................30) 64..................................................90.... Provisions for : Doubtful Advances during the year ...00) (-) (40................ Finance Inter Corporate Deposits given .....69) 39....14) 0................. 5..... Dividend received .....80 (20.......... Name of the Company Mahindra Inframan Water Utilities Private Limited Key Management Personnel : Vice Chairman and Managing Director ...45 (2...11.10....K...............70.................89 (-) (-) 3....39) (-) 49. Investments Purchase ..................11 (-) 6...MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) Joint Ventures : Sl.66) 37....................17) (-) (-) 2...39 (45.....03) 6............................... No. No............... 2.................... Nanda (b) The related party transactions are as under : Rupees lakhs Sl.................... 3...............25) 28....... 3....56) 182.55 (-) 42.....81 (3...........................89) (39......04.. Purchases Goods ..............40 (46.... B.............

............... (1............74... No............64............. Stock Options .....18) 74. Provision for Diminution in value of other related assets ............70 (20........... (48.......00.................56...............72.........77 (33................ 5........21) 12.............34.....68..............14 (5...... Nature of Transactions Subsidiary Companies Associate Companies Joint Ventures Key Management Personnel Other Transactions Other Income ...05) 18..... Dividends ............... (-) 7...................60 $ (15...................................................... (-) Advance refunded by group company ....... (-) 5..........60 (8...............................................15...51.......................48) 5.40........00) (-) (-) (-) (-) (-) (-) (-) 2..........00) $ Reimbursements received from parties ...86) (-) (-) (-) (-) (-) (-) 4...... (-) 14.10 (-) 2...72.....................................29.....00... .........54) Receivable ..................06........98...........00) 12.....51....05 (64......................... (-) 11...........47) 78......00) 4....73 (59.08) 4........72..........................49... 8..00) 10..........34 (3.. (-) Guarantees and Collaterals given .80 (5..12 (-) 34.........00....82) Inter Corporate Deposits given .......38) (80... Managerial Remuneration .46 (2...................... Share Application Money......67 (4.73 (-) 30.... (-) Previous year’s figures are in brackets..32) 0...41) (-) (9..... (2...............90 (6........ (1...............59 (3........ (-) 13............. 150 .45.. Outstandings Payable ..................74... (-) Provision for Doubtful debts /advances ........MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) Rupees lakhs Sl....................71) (-) (-) (-) (-) (-) 9........87...89 (19...50................................80) (-) 7... $ Amount pertains to Tech Mahindra Foundation............................03) (2.......22) (-) (-) (-) (-) (-) (-) (-) (-) (-) 9..23..95 (1....74 (8...........64) Reimbursements made to parties ..61...........71) 5..... Loan Refunded by Key Management Personnel .............04........47 (5.......15) 1.............. (-) 15........... (-) Other Expenses ................ (-) Advance given by group company ........................................84...............

................66...........................10...70 (19..............) ............44 23.......294 56.....06..........90.............17) 25............80 (-) 64...269..40 (-) Mahindra Sona Limited Mahindra Sona Limited 0.......14........... Basic Earnings per share (Rs...................58..........08.279 63.....19) (45.......06..........270.03...43 (-) 48......20 (-) 0....156 25..........00) Mahindra Water Utilities Limited 47.............MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) Significant related party transactions are as under : Rupees lakhs Nature of Transactions Associate Companies Amount (27..........15) 1. Weighted average number of equity shares used in computing diluted earnings per share ...00 (-) Mahindra Gesco Developers Limited 6.20....90) 39............93 1.. Investment – Purchase ... Kota Farm Services Limited 69... Sale – Goods ................... Mega One Stop Farm Services Limited Mriyalguda Farm Solution Limited Kota Farm Services Limited 134.........75 2006 1........59 22..84.................765 2............40 51....529 24................... Earnings per Share : 2007 Amount used as the numerator – Net Profit (Rupees lakhs) ..10 (-) (0...51............473.123 1...72 (80... 1......) (Face value of Rs.........11........57.................. Mahindra Forgings Limited Mahindra Forgings Limited 6.50.....51...........................47... (Gain)/Loss on difference in exchange on bonds ..89 (-) 12..10 (-) 7.....11 (-) Mahindra Inframan Water Utilities Private Limited 3.....11 (-) Sale – Services 5...... Purchase – Fixed Assets . 21.. Mahindra Ugine Steel Company Limited 151 .... Mahindra Forgings Limited (42.18........07..71.92.........59 (24.02 (-) 0.... 10 per share) ...49) 1.............. Sale – Fixed Assets ....32.28 57.........66 1................ Inter Corporate Deposit refunded by parties .14........ Mahindra Ugine Steel Company Limited Mahindra Construction Company Limited Previous year’s figures are in brackets.... Mahindra Ugine Steel Company Limited Mahindra Forgings Limited 4......... Effect of potential ordinary (equity) shares on conversion of bonds/debentures ....71.51.............. Purchase – Goods……………… .497. Weighted average number of equity shares used in computing basic earnings per share ..............44. Diluted Earnings per share (Rs.......39) Joint Ventures Mahindra Sona Limited Amount 42....... Amount used as the numerator for diluted earnings per share (Rupees lakhs) ......... Provision for Doubtful Advance .............86) (0...40 (46.....95) Mahindra Forgings Limited 2.......50......

.79% 32...12................63......... .......49% 50...01..88 122........12.....00.......... 23..40.............55) (3..52 2............................68 2006 Rupees Lakhs 41........37...........39.00 0......46 (96.88 22...00% 50..000 3.....52 - (Rupees lakhs) 14...........10) 42...97 40......15 (4.99 Figures in brackets signify charge to Profit and Loss Account................81......34) (27........43 75................41....43) (60...........00) (22.92) (61. 7........ Depreciation/Amortisation ...81..79..49% 37.............72.11...........97 Rathna Bhoomi Enterprises Private Limited .. 500 500 Kota Farm Services Limited .24.....420 Mriyalguda Farm Solution Limited ...37.....203 30............10) (35..................05) (27.....24.....47 40..........00% 20......MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) 22.23 3.......10 1..............78) 2.13 290....52) 20...00..............58 1................21......... 3......936 47....................78..39...........10 0............00% 34...370 82......11.......66 79....203 13... Provision for Current Tax including FBT . 5......... 152 .....38............50 (7.........62) 12....... of Equity shares held % of Holding Cost of Investments (Equity Shares) Goodwill/ Capital reserve Share in accumulated Profit/(Loss)/ Reserves Carrying Cost (Nos.......01% 22...........01........74% 34..34 27....51..72...........92 54.48 96.............91...................10 35.........499.....00..46.) Unquoted : Owens Corning (India) Limited ........51..44 43....51....00) (0..62 (3..34) (3......34 33...73...........73..22...88 96..................46 Total .......33........46) (4....00 43..................89 80. 21.56% 290.....499.41..11% 47...................75 33..500 3.63% 21...................04....12...75) (33............. 9.48 28....99 12..........00 22....32....74% 50........12) 118..22...........56% 30........92 1....794 Mahindra Construction Company Limited .. Excise Duty ..05 27.....50% 37..00% 28............ Provision for Deferred Tax (Net) ............79% 32....44 (10...000 Total .............75) (35............78) (7.... 2. 2..45 4...13 54.500 Mega One Stop Farm Services Limited ...000 Mahindra Renault Automotive Private Limited .... Joint Ventures Disclosure : Group’s Share in Joint Ventures with respect to other items : 2007 Rupees Lakhs a) b) c) d) e) Sales ..........05 0......46.......63. 13...794 2......... Investment in Associates No......34) (33..... Mahindra Forgings Limited (formerly known as Mahindra Automotive Steels Limited) (transferred from unquoted to quoted during the year) ...........26...88) (22........73..79% 32.... 3....95 0...88) (96..........91.............94......75 35..000 Officemartindia.......50 42...95 Quoted : Mahindra Composites Limited (formerly known as Siroplast Limited) .............420 2..92..................11% 128.....05) (0....................74% 34...97 7.............000 9.. 49.......com Limited.................................

73.40.258.76) 30.94.96 584.18.91 3.708.49 2.88 726.82 (2.01.34 232.75.338.22 612. .17.00.48 439.34.784.26 2.20 675.360.79.36 1.426.64 1.56.86 (28.71 164.586.97 116.471.74 Segment result after exceptional items Unallocable Corporate expenses (net of income) 653.23.13.70.25.18.06 Less : Income Taxes – Current Tax including Fringe benefit tax – Deferred Tax 624.15) (8.73 538.07.85 63.22.59 48.42) 49.61 49.75.59.53 1.26.34 234.25.70 501.23.27.404.69 98.53 839.14 43.68.79 113.72.03.25.62.34. Rupees lakhs Primary Segment Disclosure .99 518.55.00 232.61+ 49.72.399.372.53.47 136.99.07.93.72.40.606.46 19.59 48.94.00.70 576.14 (524.02 599.10.83.57 13.74) - 655.04 152.96 7.65.22.77.08 1.87.04 50.81.72.38 787.17 67.38 538.28.82 72.34 (3.83 1.14 207.84 261.202.859.344.94.524.318.67.27 1.38 24.05 4.71+ 164.798.74.77 133.61. 2007.41 15.34.86.89 (513.74 1.621.68.29 17.58.64.52.184.63 (95.76.54.68 3.388.82 Balance of Profit for the year before Share of Profit of Associates Share of Profit of Associates Profit for the year before Minority Interests MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) + In line with Accounting Standard 17 on Segment Reporting.12 271.40.450.09.21) (569.60.71.51.96 564.27.03.21 165.11.57.26 9.03.69 6.59 18.52.01 477.787.93 3.37.03.16.95.63 1.91.29 RESULT Segment result before exceptional items Exceptional item allocated to Segments 503.807.42.09. 2006 to 10th October.45.66.36 1.05 310. Note: Segment Revenue and Segment Result in respect of Infrastructure Segment is for a period of 1st April.68 5.42 1.330.93 839.47 6.30.16.142.60.480.24 (15.21 134.11 1.17.57 15.37.86.50.258.57 599.34 2.27 18.66.17.68 Total Revenue 6.Business Segment Automotive Farm Equipment IT Services Financial Services Steel Processing & Trading Infrastructure Hospitality SYSTECH Others Eliminations Consolidated Total REVENUE Gross External Revenue 4.83 1.04 152.50 176.22.45 161.51.59 18.24 98. results of “Financial Services” segment are computed after charge of interest cost as segment expense.594.89) 499. Segment Information : Segment Report for the year ended 31st March.802.61 112.14.72.46 846.61.80) 207.848.26 9.18.63 686.70.99 5.41 - 1.70.52.41 3.66.26.77) 1.04 - 2.70 1.50 10.77) (453.55.117.98) (36.15 247.586.366.05 Net External Revenue Inter Segment Revenue 4.406.62 131.25 1.15.45.61.27.34. 2006.69 587.82.98.62 32.259.70 1.69 587.26.05 (2.23 1.07.61.535.784.59 131.37.41.67.44 104.54.81 3.96.19 550.94 588.73.399.490.72.76 29.64.46.69.68 1.99.373.41.51.62 3.90 (453.807.81 44.72.50.94.72.53 25.68.08.19 63.27 Add: Exceptional Item Unallocable to segments Profit before Tax 395.60 20.70 313.92.23.25 - 7.65.78) (2.29 153 Operating Profit Less : Interest expense not allocable to segments Add : Interest Income not allocable to segments 85.16 541.44 122.34.87.96 Less : Excise Duty on Sales 1.18.42.96.86.95.638.13 16.184.29.55 19.45 152.79 4.65.66.21 166.50 176.71.446.95.51.91.43 179.38.03.75.66.04) Profit for the year before prior year adjustments Less : Adjustments pertaining to previous years 1.62 32.75 1.111.74.04.117.04 261.24.42 539.16.69 1.24.07) 1.388.03 1.67 5.26 1.51.69.46 11.50 98.92.23.65) (3.699.26 1.15 3.18 224.53.21) (569.17) 23.13.19 63.42.

47 8.438.50 11.54.57 16.43 75.40.42 1.18 155.42.045.53.19 16.23.77 2.38.39.39 548.040.00 257.78 385.41.48.48 60.08 4.31.639.31 3.76.42.64 52.03 6.54.78 2.35 346.11 723.30 134.22.69 12.35.927.81 814.00.97.418.02.72.19 8.66.28 Depreciation/Amortisation 150.75 53.55 20.05.83 2.99.50.62.83.14.984.85.506.73.39 359.27 13.43 1.63 574.59.65 3.712.43.402.79 4.89 854.70 2.25 2.13.47 337.45 60.03 91.87.62 3.88.58 110.93 7.38.99 694.47 47.52.39.94.51 461.85 Unallocable Corporate Assets Total Assets Segment Liabilities 1.26 3.70.84 12.09.662.31 154 2.54.44.68.00.741.50.65 3.78 2.42.65.17 1.36 Non cash expenditure other than depreciation * In line with Accounting Standard 17 on Segment Reporting.44.94.96.17 10.34 40.605.74.74.06.76 134.24 75.91 61.71.424.72.16.83 201.217.34 2.28. .145.Information (Contd.88 21.99 Unallocable Corporate Liabilities MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) Total Liabilities Capital Expenditure 864.97.177.373.80 449.82 5.41.415.80.94.42.49 9.82.79 9.): Rupees lakhs Automotive Farm Equipment IT Services Financial Services Steel Processing & Trading Infrastructure Hospitality SYSTECH Others Eliminations Consolidated Total OTHER INFORMATION 1.29 2.93.07.79 13.98.17.38.13 * 152.44.636.66 7.086.85. segment liabilities of “Financial Services” segment include the related interest bearing liabilities.64.763.62 3.87.77 2.43 114.40.26 44.153.26 * 230.44.79 7.63 1.20 3.43.68.27.69 818.33 471.63 256.11.33.68.85.44 146.51 483.39 659.98 62.88 44.27 5.136.11.59 243.47.90.17 Segment Assets 3.14.89 41.61.96.37.17.

....248...................77 13..........047.27 2....... leasing and hire purchase of automobiles and tractors...81.. 14...067.......22............. Business Segments The Group has considered business segments as the primary segment for disclosure......... …………………………… Income from Loan..42 729... 2.............. Total .67..967.64 16......189.....68 Segment Revenue comprises of : 2007 Rupees lakhs Sales .29...........54..............76 135....95 3..52 2.65. Retained Interest in securitised Asset & Securitisation……………… Other allocable income * ...51....08 Capital Expenditure ................ 14.........13 559.......02.... …………………………… Income from project management ..25 Segment Assets ...22. Others comprise of Investment...... Overseas segment includes sales and services rendered to customers located outside India....03....366. Automotive Segment comprises of sales of automobiles....64 155 ................ spare parts and related services......143.66 48...........................39..75....MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) Secondary Segment Disclosure . …………………………… Hire purchase and lease income .........01 Notes : 1....506..............599. IT Services comprises of services rendered for IT and Telecom...40 58......12.............439...97...... Secondary Segments The geographical segments are considered for disclosure as secondary segment..67 Total 19...318....235.....33..71 821....60.......96 224.........33................ 14..29.57 13.....82.08 10..37.Geographical Segment Rupees lakhs Domestic Revenue from External Customers ..... 2..15.763... Farm Equipment Segment comprises of sales of Tractors.37...........848.366...60 568........93 254.72...............40.....03....79 608...46 13.30 11...........75........689..17 2.........73 172..46.............44 46.................. Infrastructure comprise of operating of Commercial complexes..... Financial Services comprise of services relating to financing.......795.57 19......57 2006 Rupees lakhs 11..........848.... …………………………… Income from long term contracts .79. The segments have been identified taking into account the organisational structure as well as the differing risks and returns of these segments..45 54........... Project management and Development.........54......... spare parts and related services....713.... …………………………… Income from Services rendered .... Domestic segment includes sales to customers located in India and service income accrued in India.. SYSTECH comprises of Automotive components and other related products and services... Transport solutions group etc.........94..50........75 1...... Overseas 5....19.... Hospitality comprises of sale of Time share...50 11..........05..88.......39 1.

...62 82... Dividend .........73................................................69 55.........................................MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) 2007 Rupees lakhs *Other allocable income includes : Interest Income ..........................39 224.41....................................17 87.......91 6............79 2..................................................... 5......82....................................73...............................02................. Scrap Sales ................................39 7..............................77 25....45 6.....21.....13...................22...............26................67.......39..................09..............................62 115.........53 254....11. Total .................... Previous year’s figures have been regrouped/restated wherever necessary.................. Commission ...............58....68 98........................................... Others ........... 156 ........... Profit on Sale of Long Term Investments .......10 7....................................57 2006 Rupees lakhs 5......................................................

37 40621.17 37306.47 185.11 63.59) (1472.25 7251.50 51.04 181.10 (1209.56 5000.45 (1946.04 0.16 16324.71 9413.67 12705.42 3623.52 562.22 7825.30 368.95 1154.65 29.91 601.72 7556. Limited# Bristlecone UK Limited# CanvasM (Americas) Inc.94 5716.53 (52.20) 459.20 3748.60 2030.20 14660.45 21.92 (1050.23) (364.14 (189.01 213.98 10.60 1.92 43.82 (756.90 472.08 43.52 1981.02 0.00 15395.44 1194.99 79.05 580.76 21.98 4617.58 1417.15 - Details of Investments (excluding Investments in subsidiaries) Automartindia Limited Bristlecone Limited# Bristlecone GmbH# Bristlecone India Limited Bristlecone Incorporated# Bristlecone (Singapore) Pte.54 98.60) 333.75 25975.60 15289.96 2623.02) 19532.45 17.02) (364.52 562.00 1245.05 448.66 368.15 181.08 (5062.21 6109.37 (416.72 41722.70 19.16) 197.94 (45.59 43714.49 539.40 28364.02 47.69 2901.12 (5.35 418.32 3256.51) 0.65) 1336.55) (47.36 938.63 98.19 0.61 (1.50) (780.45 87041.03 6057.89) 3593.32 27.45 (1.24 4175.64 217.20 3437.05 376.17 (1946.99 2472.86 1190.13) 2648.40) 17.00 6216. # CanvasM Technologies Limited DGP Hinoday Industries Limited Falkenroth Grundstucksgesellschaft GmbH# Fried.03 (25.41 590.95 2753.00 509.52 647.10 4935.83 7781.23 217.Details of Subsidiary Companies (Rupees Lakhs) Name of Subsidiary Company 2981.58 3111.83 5499.30 5447.21 71628.98 3659.77 1.16) 239.68 2140.17 37306.70 (4250.98 276.00 3535.07 169.46 3586.23) (4.00) 14.33 1465.43 313.35) 57.40 0.03 2061.73 23436.41 10.56 (47.08 16338.83 8093.06 5476.61 5.20 78192.43 1465.02 55.62 24064.33 0.90 46.24 2743.43 50.69 104.59 37796.51 4.00 8631.15 22.24 3277.82) Capital (including Preference Capital) Reserves & Surplus Total Assets Total Liabilities Gross Turnover Profit before Tax Provision for Tax Profit after Tax Proposed Dividend & Tax thereon 202.23) (4.00 14.57 6889.63 7120.47 (45.59 (56.27) 6864.32) 42.92 670.70 1154.07 4632.53 (19.56 2432.29) 21.91 383.82 84.84 445.24 46.60 3593.68 2140.67 46.67 1659.48 (174.84 44.83 9058.48 0.85 2077.19 28364.70 3060.92 16338.17 (30.03 774.25 98.01 (115.20 59546.92 5478.20) 273.68 26.61 18445.26 19889.62) 2400.23 6864.46 (181.20 7102.# Mahindra Forgings Global Limited# Mahindra Forgings International Limited# Mahindra Forgings Mauritius Limited# Mahindra Forgings Overseas Limited# Mahindra Gujarat Tractor Limited Mahindra Holdings & Finance Limited Mahindra Holidays & Resorts India Limited Mahindra Holidays & Resorts USA Incorporated# Mahindra Insurance Brokers Limited Mahindra Infrastructure Developers Limited Mahindra Intertrade Limited Mahindra International Limited Mahindra Integrated Township Limited Mahindra Logisoft Business Solutions Limited MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) Mahindra Middleeast Electrical Steel Service Centre (FZC)# .70 (3062.22 5.22 2976.67 3.07 601.18 349.75 (185.52 1981.88 2302.86 6130.57 11001.66) 135.28 375.58 43714.82 4.59) (189.43 0.47 5271.94 100.77 4632.55 (331.04 1151.44 43.25 58352.98 1231.98 3586.01 2006.45) 1.00 9877.07 256.10) (47.60 (2485.32) 5997.57 2648.46 47736.29) 10.30 (337.74 7677.81 457.70 (181.58 19.03 3437.19) (56.l.80 42.41 823.40) 17.24 6130.59 37796.53 212.51 14.89 1016.50) 242.07 3277.33) 58352.62) 2775.07 19465.40) (3.45 169.33 140.38) 376.26) 145.90 359.00 237.86 1713.45 16063.08 1336.15 12705.03) 21.18 1531.24 (181.31) 130.73 (742.10 0.75 25975.03 22.40 0.26 142.41 322.22 (0.57 494.99 2472.33) (3.07 19465.98 (1204.49 6057.00 3100.19) 343.40 622.57 494.96 2623.81 106.75 (6.49) 5499.75 688.02 1104.43 36. Hunninghaus GmbH & Co.44 5997.08 3664.68 6647.r.92 87041.83 11.41 4231.23 0.41 17.20 0.37 41781. Hunninghaus GmbH# Fried.71 9413.85 705.85 19532.77) (4.50) 243.63 62.59) 0.54 135.14 1711.00 1800.48 2302.36 4657.83 385.78 2105. KG# Falkenroth Umformtechnik GmbH# Mahindra Gesco Developers Limited Gesenkschmiede Schneider GmbH# iPolicy Networks Limited JECO Holdings AG# Jensand Limited# 157 JECO-Jellinghaus GmbH# Mahindra Consulting Engineers Limited Mahindra Ashtech Limited Mahindra-BT Investment Company (Mauritius) Limited# Mahindra (China) Tractor Company Limited# Mahindra Engineering & Chemical Products Limited Mahindra Engineering Design & Development Company Limited Mahindra Europe s.91 15289.44 115.00 136.30 720.03 3636.03 1416.20 59546.33) (3.44 2472.73 11.46 47736.86 5557.00 7677.83 84.11 0.35 79.02) (364.88 1895.16 2840.

69 17054.04 203.83) 18.08 75676.34 Capital (including Preference Capital) Reserves & Surplus Total Assets Total Liabilities Gross Turnover Profit before Tax Provision for Tax Profit after Tax Proposed Dividend & Tax thereon 2012.93) 40.59 612.00 40.22 (241.55 (32.50 51.26) 7389.13 (243.74 29553.44 9720.78 (9.04 368.78 13449.65 1302.40 101.45 (32.58 2.83 64.72) 1302.) (Rupees Lakhs) Name of Subsidiary Company 8401.88 419.74 156889.30 5307.81 (243.56 628088.33 6645.13 84.15 10772.44 (60.10 930.38 1213.13 84.80) 26.55 12327.91 2526.22 6338.75 822.70 12557.05 58685.60 2636.11 610.09 (5.64 321.75) 482.85 (121.74 (9.61 14175.89 1956.24 450.97 203.35 12135.34 114.10 268.33 54.75 12327.00 2278.76) (228.63 94.42 (1002.00 4.40 156.75 2199.38 277.39 3568.08) (199.53 (142.67) 3568.00 14360.96) 1168.04 31620.09 6817.37 275968.85 1052.73 2756.55 4090.95) 50.49 3928.89 (3585.58 3242.71 47.31 9918.30) 2733.95 29553. Limited# Tech Mahindra (R & D Services) Incorporated# Tech Mahindra (Singapore) Pte.21 2283.55 950.68 2327.48 10620. 2007 exchange rate.23 31620.76) 21.67 59499.00 5.04) (2232.82) (5.25 8500.80 730.20 682.75 50.08 684.71 2733.20 156889.39 9720.41 (47.Details of Subsidiary Companies (contd.02) (5.15 20274.43) 497.47 13449.05 86.20 0.07 578.50 2512.57) 380.48 26.15 (12.39 2156.96) 10620.43 117.29 (6.34 368.29 16937.71 0.82 277.15 3248.42 1108.04 12674.54 (199.93 171.69 3941.45 84461.95) 3466.21) 686. Limited# Tech Mahindra (Thailand) Limited# Tech Mahindra Foundation # The financial statements of the Foreign Subsidiaries have been converted into Indian Rupees at the 31st March.50 5.35 391.96 19.01 6985.20 539.31 2673.10 12688.88 2965.36 22062.65 1218.43 (21.85 0.70 472.68 2673.21 2283.49 4090.47 2901.01 333.49 256.80 578.75 19.42 7389.58) 684.46 768.62) (544.10 367.88 2301.08 (114.87 14.30 55.43 - Details of Investments (excluding Investments in subsidiaries) Mahindra & Mahindra Financial Services Limited Mahindra & Mahindra South Africa (Pty) Limited# Mahindra Overseas Investment Company (Mauritius) Limited# Mahindra Renault Private Limited Mahindra Stokes Holding Company Limited Mahindra Steel Service Centre Limited Mahindra Shubhlabh Services Limited Mahindra SAR Transmission Private Limited Mahindra USA Incorporated# Mahindra Ugine Steel Company Limited Mahindra World City Developers Limited Mahindra World City (Jaipur) Limited MAHINDRA & MAHINDRA LIMITED (CONSOLIDATED) Mahindra World City (Maharashtra) Limited NBS International Limited Plexion Technologies GmbH# Plexion Technologies (India) Private Limited Plexion Technologies (UK) Limited# Plexion Technologies Incorporated# 158 Schöneweiss & Co.65 13.07 1565.10 3928.38 1162.33 67.33 128.68 2526.75 122.09) (686.21 58685.75 69421.76 10361.47) 286.75 (3604.95 2965.80 3950.43) 765.60 628088.81 1075.81 (131.86 1508.88 7273.74 584.95) 452.54) 353. . GmbH# Stokes Forgings Dudley Limited# Stokes Forgings Limited# Stokes Group Limited# Tech Mahindra (Americas) Incorporated# Tech Mahindra GmbH# PT Tech Mahindra Indonesia# Tech Mahindra Limited Tech Mahindra (R & D Services) Limited Tech Mahindra (R & D Services) Pte.65 4981.58) (8.30) 280.54 (84.30 481.75 3900.02) 2301.47 30577.83 280.41 1.85 29.18 14.85 47.42 12688.20 367.58 13788.55 (8.05 667.67 217.24 195.95 43.41 (29.70 4490.05 34.00 18.74) (71.46 768.75) 37.60 821.90 460.76 (612.34 (323.56 2791.82 43.23 (202.81 1075.01 15.57 3259.76) (248.10 1804.40 1412.86 86286.74 61762.75 0.34 5295.00 35.71 6649.59) 10.24 59499.21 6189.47 2908.00 3500.08 0.67 13288.49 163.22 211.08) 1953.34 6189.15) 29.60 2606.

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