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M.COM SEMESTER – I ROLL NO.

41

PROJECT REPORT

COLLEGE
JAI HIND COLLEGE
‘A’ ROAD, CHRUCHGATE, MUMBAI – 400020, MAHARSHTRA

TITLE OF THE PROJECT
A REPORT ON ANALYSIS OF FINANCIAL STATEMENT OF MAHINDRA
AND MAHINDRA LIMITED.

ADVANCED FINANCIAL MANAGEMENT
M.COM Part II
SEMESTER – III 2016

PROJECT UNDERTAKEN BY:
HARSH TANWANI
MASTERS OF COMMERCE – ADVANCED ACCOUNTANCY
SEMESTER – III
ACADEMIC YEAR 2016-17
JAI HIND COLLEGE, MUMBAI.

UNDER SUPERVISION OF:
PROF. SANTOSH GHAG

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M.COM SEMESTER – I ROLL NO. 41

CERTIFICATE
This is to certify that MR. Harsh Tanwani of M.Com (Advanced Accountancy) Semester –
III (Academic year 2016 – 17) has successfully completed the project titles “A REPORT ON
ANALYSIS OF FINANCIAL STATEMENT OF MAHINDRA AND MAHINDRA
LIMITED.” under the guidance of PROF. SANTOSH GAGH

DR. ASHOK WADIA PROF. SANTOSH GHAG
(PRINCIPAL) (COORDINATOR)
DATE: 20th October 2016 DATE: 20th October 2016
PLACE: MUMBAI PLACE: MUMBAI

Signature of External PROF. SANTOSH GHAG
Examiner (SUPERVISOR)
DATE: 20th October 2016 DATE: 20th October 2016
PLACE: MUMBAI PLACE: MUMBAI

COLLEGE SEAL

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M.COM SEMESTER – I ROLL NO. 41

DECLARATION

I, Mr. Harsh Tanwani, hereby declare that I have successfully completed the project titles
“A REPORT ON ANALYSIS OF FINANCIAL STATEMENT OF MAHINDRA AND
MAHINDRA LIMITED.” is an original work and is being submitted in partial fulfilment
for the award of Master’s Degree in Commerce (M.Com) from the University of Mumbai.

Signature of External PROF. SANTOSH GHAG
Examiner (SUPERVISOR)
DATE: 20th October 2016 DATE: 20th October 2016
PLACE: MUMBAI PLACE: MUMBAI

HARSH TANWANI
(STUDENT)
DATE: 20th October 2016
PLACE: MUMBAI

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M.COM SEMESTER – I ROLL NO. 41

ACKNOWLEGDEMENT

In the course of writing this project as partial fulfillment of the requirements for the award
of the Degree of Master of Commerce from the University of Mumbai, I am indebted to a
few, those who have helped me tremendously to complete this work.

First and foremost, I am thankful to my research guide (PROF) SANTOSH GHAG,
without whom this work would not have taken shape. I am truly thankful to him, for his
inspiration and co-operation to take up such a study, persuade me to continue with the
work and provided me most effective guidance.

Further, I would like to thank the faculty of Jai hind College, without their cooperation I
would not have ventured into such a study.

I express my deep gratitude to my entire college friends and my family members whose
efforts and creativity helped me in giving the final structure to this project work.

I am also thankful to all those seen and unseen hands and heads, which have been of help in
the completion of this project work.

Date: 20th October 2016 HARSH TANWANI
Place: Mumbai (Signature of student)

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2 REVIEW OF LITERATURE 15 2. 1 INTRODUCTION TO MAHINDRA & MAHINDRA LIMITED 8 1.3 Balance Sheet 34 3. no Title Page no.2 Articles 16 2.4 Key Personnel 13 1. 41 Table of Contents Sr.3 Visions Missions and Values 12 1. M.5 SWOT Analysis 14 Ch.2 History 10 1.2 Financial Statement 29 3. Executive Summary 7 Ch. 3 ANNUAL REPORT OF MAHINDRA AND MAHINDRA LIMITED 22 3.1 Introduction 9 1.3 Articles on Mergers and Acquisitions 19 Ch.COM SEMESTER – I ROLL NO.1 Director’s Report 23 3.4 Profit and Loss 35 P a g e 5 | 40 .1 Introduction 16 2.

11 Return on Proprietor’s fund 40 4.2 Operating ratio 38 4. 41 36 Ch.5 Net Profit ratio 39 4.13 Debtor Turnover Ratio 41 4.14 Earnings per Share 41 4.8 Proprietary Ratio 40 4.10 Return on Capital Employed 40 4. 5 CONCLUSION 42 P a g e 6 | 40 .COM SEMESTER – I ROLL NO.7 Liquid Ratio 39 4.6 Current Ratio 39 4.9 Debt Equity Ratio 40 4.1 Gross Profit Ratio 38 4.4 Net Operating Profit Ratio 39 4.15 Dividend Payout Ratio 41 Ch. M. 4 RATIOS OF MAHINDRA AND MAHINDRA LIMITED 37 4.3 Expenses Ratio 38 4.12 Stock Turnover Ratio 41 4.

23. they sold 1.53.975 three-wheelers registering a decline of 3.COM SEMESTER – I ROLL NO. Cr Mahindra & Mahindra 75.086 vehicles and 57. they sold 54.850 vehicles in the previous year. Automotive Division: Company’s Automotive Sector recorded total sales of 4.307 vehicles which is a growth of 5.175 tractors dispatched during the corresponding period in the previous year.3% in vehicle sales. In the Passenger Vehicle segment.027 vehicles were produced as against 65.382 tractors produced and 38.956 vehicles during the corresponding period in the last year. recording a decline of 8. In the commercial vehicle segment.36.5% over the previous year’s volume of 2.196 Tech Mahindra 45.668 vehicles were dispatched as against 59.778 tractors dispatched as against 38. Farm Division: Farm Division: Your Company’s Farm Division (including Swaraj Division) recorded sales of 2. Market Cap (31st March 2016) Rs.065 vehicles as compared to 4.34. they sold 2.64.966 Mahindra Financial Services 13. 41 BIBLIOGRAPHY 43 Executive Summary During the period 1st April.4% over the previous year’s volume of 1.654 vehicles in the previous year registering a growth of 5.968 vehicles. 2016 to 29th May. 2016.8%.4%.94. 60. registering a growth of 6.432 Mahindra Lifespaces 1.2% over the previous year’s volume of 56.096 vehicles as against a total of 4.729 P a g e 7 | 40 .58.66. In the three-wheeler segment.M.783 vehicles registering a growth of 8.922 commercial vehicles. On the domestic sales front.881 Ssangyong 6. they sold a total of 4.14.173 tractors as against 2. During the same period 44.564 Mahindra Holidays 3.766 tractors sold in the previous year.764 three-wheelers.34.730 tractors were produced and 44.

41 Swaraj Engines 1.343 EPC Industrié 335 Total 1.COM SEMESTER – I ROLL NO.510 (US$ 23.3 bn) P a g e 8 | 40 .M.54.064 Mahindra CIE 6.

M.5 SWOT Analysis P a g e 9 | 40 .4 Key Personnel 1. 41 1 INTRODUCTION TO MAHINDRA & MAHINDRA LIMITED 1.COM SEMESTER – I ROLL NO.2 History of Mahindra & Mahindra 1.1 Introduction to Mahindra & Mahindra 1.3 Visions Missions and Values 1.

Maharashtra. spare parts and related services and Farm Equipment Segment. Hyundai.1 Introduction to Mahindra & Mahindra Mahindra and Mahindra is an Indian multinational automobile manufacturing corporation headquartered in Mumbai. and Mahindra Investments (International) Private Limited etc. It is a part of Mahindra Group. Mahindra & Mahindra Financial Services Limited. spare parts and related services. 41 1 INTRODUCTION TO MAHINDRA & MAHINDRA LIMITED 1. Mahindra Investments (India) Private Limited. It is one of the largest vehicle manufacturers by production in India and the largest manufacturer of tractors across the world. It was ranked as the 10th most trusted brand in India. Toyota. an Indian conglomerate.M. India Study 2014. which includes sale of tractors. Ashok Leyland. The Company’s business segments include Automotive Segment that comprises of sale of automobiles. Its major competitors in the Indian market include Maruti Suzuki. Tata Motors. India. Its subsidiaries include Tech Mahindra Limited. P a g e 10 | 40 . by The Brand Trust Report. It was ranked 21st in the list of top companies of India in Fortune India 500 in 2011. Mercedes-Benz (Merc) and others.COM SEMESTER – I ROLL NO.

And. These manufacturing plants keep abreast with the latest technology to meet the growing market expectations. Mahindra International is into P a g e 11 | 40 . inventor of the rugged 'general purpose vehicle' or Jeep and had a flash of inspiration: wouldn't a vehicle that had proved its invincibility on the battlefields of World War II be ideal for India's rugged terrain and its kutcha rural roads. Swift action followed thought. Champion and many more. Mahindra & Mohammed was set up as a franchise for assembling jeeps from Willys. Ghulam Mohammed migrated to Pakistan post–partition and became the first Finance Minister of Pakistan. South Asia and the Middle East.000 people and has several state–of–the–art facilities in India and overseas. light commercial vehicles that includes three wheeler vehicles.2 History of Mahindra & Mahindra Mahindra & Mahindra was established on October 2. The Group employs over 50. 1945 when K. These manufacturing facilities have some of the best technologies and equipment in India and provide for a very challenging and satisfying work environment. USA. Mahindra & Mahindra has comprehensive manufacturing facilities with high level of vertical integration. South America. defense requirements and luxurious urban utility vehicles or SUVs. India became an independent nation and Mahindra & Mohammed changed its name to Mahindra & Mahindra.COM SEMESTER – I ROLL NO. He met Barney Roos. Catering to the Sector's diverse customer base spanning rural and semi urban customers. Light commercial vehicles and 3 wheelers are manufactured at the Zaheerabad plant in Andhra Pradesh and three–wheelers at the Haridwar plant. Two years later. Utility Vehicles. The Mahindra brothers joined hands with a distinguished gentleman called Ghulam Mohammed.M. namely. M&M has a tie up with Renault for production & marketing of Logan. Scorpio. Bolero. Africa. Its plants in Mumbai and Nasik manufacture multi–utility vehicles and engines are produced at the Igatpuri plant. 41 1. The Group has a leading presence in key sectors of the Indian economy. The business area of the company spreads to: Automotive sector The company manufactures & markets utility vehicles. The company also exports its products to several countries in Europe. Mahindra visited the United States of America as Chairman of the India Supply Mission.C. Mahindra & Mahindra is the only Indian company among the top three tractor manufacturers in the world.

USA. Mahindra Life spaces & Mahindra World City. among others. gears and composites.M.50. Mattel and others. Farm equipment M&M's farm equipment segment has presence in six continents and has a worldwide network of 800 dealers . Mahindra Retails is into distribution business and has tie up with big names like Lego.000 tractors a year from countries like India. 1. hospitality. It produces forged and forged / machined components. Under this it has created Mahindra Holiday & Resorts. It offers steel raw materials. 41 producing trucks and buses. engaged in manufacturing defense related vehicles & Mahindra Ashtech. SEZs. Infrastructure M&M has also entered Infrastructure development that operates in real estates. Ericsson and O2.COM SEMESTER – I ROLL NO. The company is also into agriculture business. metals. ferro alloys. project engineering and design. Retail & Finance Mahindra’s Inter-trade Division provides steel & steel related services. etc. Convergys.Its total combined production capacity is 1. Information Technology Tech Mahindra provides solutions & services to tele-communication majors namely Alcatel. China and Australia. Systech It is into supply of automotive components. BT. Disney. It also processes Cold Rolled Grain Oriented (CRGO) and Cold Rolled Non Grain Oriented (CRNGO) steels that are required for transformers & compressors. AT&T. Specialty Business Under this division it has companies like Mahindra Defense. It is also into business process and technology consulting services through Bristle. Trade. Mahindra Finance is into financing of tractors and other vehicles and is also into Insurance broking.3 Visions Missions and Values P a g e 12 | 40 . The company has entered into a joint venture with Navistar for production of diesel engines & trucks.

We will make quality a driving value in our work.' P a g e 13 | 40 . This we wish to achieve through a two pronged approach of developing a portfolio of products thereby being able to provide a differentiated product offering to our customers and extensive focus on operational excellence thereby improving internal efficiencies in the system. They are:  Good Corporate Citizenship: We will continue to seek long term success in alignment with the needs of the communities we serve. Values We are governed by the Core values of the Mahindra Group. in our products and in our interactions with others. They are an amalgamation of what we have been.  Professionalism: We have always sought the best people for the job and given them the freedom and the opportunity to grow.  Customer first: We exist and prosper only because of the customer. what we are and what we want to be. Mission Our Core purpose is derived from the Mahindra Group’s purpose: We will challenge conventional thinking and innovatively use all our resources to drive positive change in the lives of our stakeholders and communities across the world. We will do it 'First Time Right.COM SEMESTER – I ROLL NO. both personal and corporate. We will continue to do so. to enable them to Rise. These values are the compass that guides our actions. but will demand performance. We will support innovation and well-reasoned risk taking. courteously and effectively. 41 Vision The vision of the company is to be the ‘Leading independent player in the global Gears & Transmissions Space’.M. We will do this without compromising on ethical business standards.  Quality focus: Quality is the key to delivering value for money to our customers. We will respond to the changing needs and expectations of our customers speedily.

No Name Designation 1 Anand G Mahindra Chairman 2 Anand G Mahindra Managing Director 3 Pawan Goenka Executive Director 4 Deepak S Parekh Non-Executive Independent Director 5 Nadir B Godrej Non-Executive Independent Director 6 M M Murugappan Non-Executive Independent Director 7 R K Kulkarni Non-Executive Independent Director 8 Anupam Puri Non-Executive Independent Director 9 Vishakha N Desai Non-Executive Independent Director 10 Vikram Singh Mehta Non-Executive Independent Director 11 S B Mainak Nominee Director – LIC 12 Narayan Shankar Company Secretary 1. we will nurture fairness.M. 41  Dignity of the individual: We will value individual dignity. uphold the right to express disagreement and respect the time and efforts of others.COM SEMESTER – I ROLL NO. Through our actions.4 Key Personnel 1.5 SWOT Analysis P a g e 14 | 40 . and transparency S. trust.

COM SEMESTER – I . and low after sales service cosy Sturdy SUV's good for Indian roads and of-road terrain ROLL NO. P a g e 15 | 40 wheeler segment stake) and entry into two- THREATS electric car REVA (controlling Growing in the market through Government policies for the automobile sector across the market world Fast growing automobile Ever increasing fuel prices a global brand across the world and building Intense competition from global Tapping emerging markets automobile brands future Substitute modes of public fuel efficient cars for the transport like buses.000 Mahindra's partnership with employees WEAKNESS Excellent branding and advertising. OPPORTUNITIES SWOT STRENGTHS Mahindra has been one of the strongest brands in the Indian through their brand Logan automobile market international quality standards Mahindra group gives Renault did not live up to employment to over 110. 41 M. metro Developing hybrid cars and trains etc.

3 Articles on Mergers and Acquisitions of Mahindra and Mahindra P a g e 16 | 40 .2 Articles on Mahindra and Mahindra limited 2.1 Introduction 2. 41 2 REVIEW OF LITERATURE 2.M.COM SEMESTER – I ROLL NO.

He had just returned from Detroit to India after a 14-year stint with P a g e 17 | 40 . It was October 13. Maharashtra. 2.COM SEMESTER – I ROLL NO. profit ndtv. his first day on the job as general manager (R&D). google scholar.2 Articles on Mahindra and Mahindra 1) How Mahindra & Mahindra came to dominate the Indian automotive industry by N Madhavan (Forbes India) By focusing on product development and taking unprecedented risks. 1993. trade forum. 41 2 REVIEW OF LITERATURE 2. reuters.M. but is also ready to take on the world. what have I done?” wondered Pawan Goenka as he stood in front of Mahindra & Mahindra’s research and development (R&D) facility in Nashik. research and markets. Oh God. Pawan Goenka has ensured that Mahindra & Mahindra not only survives competition and dominates the Indian market.1 Introduction Keyword search on “Mahindra and Mahindra” “Mergers and Acquisitions of Mahindra and Mahindra” in various databases like Emerald insights. found me the following articles and case studies. and mcm growing global.

838 crore from Rs 1. had determined his journey. And his meeting with Anand Mahindra.” says Goenka. Just give me a product in a reasonable time. M&M’s revenue has risen 25 times to Rs 43. then deputy managing director of M&M.) Also. could have predicted this outcome at the time. M&M has managed to launch several successful products during this period. P a g e 18 | 40 . Twenty-one years on. “I must admit that the starting point was a lot less than what I had imagined. had an annual budget of $1 billion as well as a team of 20. who is now executive director and president (automotive & farm equipment sectors) of the Mahindra group. I am looking for somebody to undertake this big task. He had not expected M&M’s R&D infrastructure to match that of General Motors which. “We have chosen to develop our own products and compete with the world. then 38.000 engineers spread across multiple locations. (The automotive and farm equipment business accounts for close to 66 percent of its overall revenues. He was making his comeback to India with the broad plan of helping build a homegrown company. profits have gone up 55 times to Rs 3.758 crore from Rs 68 crore at the time. But neither was Goenka prepared for the ground reality in Nashik.COM SEMESTER – I ROLL NO. with three options: Exit the automotive sector.M. Not that Goenka. a maker of pick-up trucks and jeeps for the rural market. Mahindra told him how the country’s economic liberalisation and potential competition from global players had left M&M.” Mahindra had told him. 41 General Motors. Consider that the research facility was merely a shed and had only 50 engineers. become a licenced manufacturer for another company or develop own products. the company has become the largest tractor manufacturer in the world apart from dominating the Indian SUV market in which almost every major global carmaker is fighting for a share. where he was managing the world’s then-largest carmaker’s engine design and development.715 crore. in the early 1990s. The most significant change has been this: Riding on strong product development abilities. You will have all the freedom.

135 units as compared to 19.23 per cent to 11. Exports were up 40. it said in a statement. "The auto industry has been showing signs of recovery and it is important that factors like an interest rate cut if considered.370 units in the same period a year ago.M. would accelerate growth. Sales of passenger vehicles. "At Mahindra we hope to see improved sentiments with higher level of economic activities. including Scorpio. down 6.869 units in the same month last year.COM SEMESTER – I ROLL NO. Xylo.407 units last month against 12. stood at 18." M&M chief executive (automotive division) Pravin Shah said. its sales were down 6 per cent at 33. P a g e 19 | 40 .297 units in the year-ago period. XUV 500. Bolero and Verito.499 units in the same month of last year.8 per cent at 3.85 per cent. M&M said. 41 2) Mahindra and Mahindra may sales down 3% (NDTV) New Delhi: Mahindra & Mahindra on Monday reported a 3 per cent decline in total sales at 36.337 vehicles as against 2. In the domestic market. Commercial vehicle sales were down 7.369 units last month as against 35. The auto maker company had sold 37.706 units in May.470 units in May 2014." he added.

From now on. Bhatt said change at signage in ING Vysya branches had already begun and the process would be completed within a month. all ING branches will function as Kotak branches. said there would be a total of 30. while at the group level. Bhatt said.000 employees. For ATMs. too. the same has started. and a combined market capitalisation of close to Rs 1.25 lakh crore.M.000 employees in the bank after the merger. The acquisition will make Kotak Mahindra Bank the fourth largest private sector lender in the country.25 lakh crore. “We will keep growing and would first utilise our combined employee strength before hiring from external sources. as on December 2014. On restructuring the existing branch network. Kotak Mahindra. On employee rationalisation. they were in a growth phase and would need people for branch expansion. With respect to the branches.200 branches and a total business of Rs 2.3 Articles on Mergers and Acquisitions of Mahindra and Mahindra 1) RBI approves ING Vysya-Kotak Mahindra merger BS Reporter | Mumbai Apr 02. 41 2. there would be 40. Jaimin Bhatt. In November 2014. he said the company would look into it. the bank would expand its branch P a g e 20 | 40 . Delhi. said the central bank. will have about 1. president & group chief financial officer. Kotak Mahindra had announced it was acquiring Bengaluru- headquartered ING Vysya in an all-stock deal.” he added.COM SEMESTER – I ROLL NO. Bengaluru and Chennai. In Mumbai. 2015 The Reserve Bank of India (RBI) on Wednesday approved the merger of Kotak Mahindra Bank and ING Vysya Bank.

the ING Group. India’s leading manufacturer of utility vehicles. the merger. which would create the country’s fourth largest private sector lender.) India's Mahindra & Mahindra Ltd. completes acquisition of majority stake in SsangYong Motor Company Mahindra & Mahindra Ltd. through their strategic partnership. he said. (M&M). That was a 16 per cent premium to a like measure of ING Vysya market price. P a g e 21 | 40 . the proposed Rs 15. was “not likely to have an appreciable adverse effect on competition in India”. 41 network. with a 6.COM SEMESTER – I ROLL NO. In February. if necessary. today announced that it has completed all formalities related to the acquisition of a majority stake in SsangYong Motor Company (SYMC) and that the company is no longer in Court Receivership. After the merger.4 per cent stake. 2. Mahindra had emerged as the preferred bidder for SsangYong in August 2010.M. It would also look at shifting branches to new locations.000-crore merger deal between Kotak Mahindra Bank and ING Vysya Bank got the Competition Commission of India’s approval. RBI’s approval is required for an entity other than the promoter to have more than five per cent stake in a bank. According to the fair trade regulator. valuing the deal at about Rs 15. Kotak Bank had stated. This marks the beginning of a new journey for SYMC and will also pave the way for both Mahindra and SYMC to emerge as a strong force allied together in the global passenger vehicle industry. will become the second-largest shareholder in the bank. The deal implies a price of Rs 790 for each ING Vysya share.000 crore. According to regulations. based on the average closing price of Kotak shares during the month to November 19.

a Synergy Council comprising of senior management from both companies will be established to ensure focus and delivery of synergies between the two companies. and Dr. Pawan Goenka who is President of Mahindra’s Automotive and Farm Equipment Sectors. Mahindra Ltd. For Mahindra. Also under discussion are opportunities for joint product and technology development and synergy in global operations and purchase. while protecting their respective brand identities and ensuring quality. Towards this end. Key officials from the Mahindra Group and SYMC were also present. Executive Director &amp. The Council will focus on various aspects such as global procurement. new car development and business strategy to penetrate international markets. 41 Present on the occasion were Mr.COM SEMESTER – I ROLL NO. Mahindra has a strong IT system that is being reviewed for suitability for SsangYong. Bharat Doshi. Strategic plans such as the India project which involves launching the Rexton and Korando-C in India have already been kicked off. P a g e 22 | 40 . Mahindra &amp. the biggest benefit from this partnership will be the opportunity to harness synergies between the two companies. Group CFO. The company is also considering the possibility of Mahindra Finance setting up operations in Korea to enhance the sales of SsangYong vehicles.M.

3 Balance Sheet 3.2 Financial Statement 3.4 Profit and Loss P a g e 23 | 40 .COM SEMESTER – I ROLL NO.1 Director’s Report 3.M. 41 3 ANNUAL REPORT OF MAHINDRA AND MAHINDRA LIMITED 3.

26.37.837 UVs.705 HCVs (Heavy Commercial Vehicles)] registering a growth of 8.654 vehicles in the previous year registering a growth of 5.64. 1.COM SEMESTER – I ROLL NO.947 Vans and 3. Performance Review Automotive Division: Company’s Automotive Sector recorded total sales of 4. registering a growth of 6.850 vehicles (4.185 three wheelers) as against a total of 4. 58.06.22. 1.1 Director’s Report Your Company continues with its rigorous cost restructuring exercises and efficiency improvements which have resulted in significant savings through continued focus on cost controls and process efficiencies.834 vehicles < 2T GVW.096 vehicles (4.404 three-wheelers) in the previous year.446 four wheelers and 59.36.3% in vehicle sales.065 vehicles as compared to 4. your Company sold 1.307 vehicles [including 2.588 Vans and 3.783 vehicles [including 27. 13. your Company sold a total of 4.53. In the commercial vehicle segment.255 vehicles < 2T GVW. In the Passenger Vehicle segment. which would affect the financial position of your Company.4% over the previous year’s volume of 1.819 vehicles between 2-3. No material changes and commitments have occurred after the closure of the Financial Year 2014-15 till the date of this Report.23.05.5T segment and 5.968 vehicles [including 2.324 Utility Vehicles (UVs).5T GVW.425 LCVs in the LCV > 3.922 commercial vehicles [including 15.5% over the previous year’s volume of 2.4%. your Company sold 2.755 P a g e 24 | 40 . 6.911 four-wheelers and 56.94.29.34.M.184 Cars]. 10.395 Cars] which is a growth of 5. On the domestic sales front. 41 3 ANNUAL REPORT OF MAHINDRA AND MAHINDRA LIMITED 3.66.

COM SEMESTER – I ROLL NO. Within the commercial vehicles. On back of success of Jeeto. the UV volume growth for your Company in the second half of the Financial Year 2015-16 was 19.2% over the previous year’s volume of 56.M. with its Aggressive Design with Imposing SUV Stance.9%. In Financial Year 2015-16. the TUV300 is stylish and extremely comfortable on the inside and comes loaded with a host of technology and safety features.1% and all segments of the industry (except LCV < 2T and 3W Goods) posted growth. ’true-blue SUV’ character.9% as against 11.5%.5T segment and 3. your Company launched the all new small commercial vehicle Jeeto. The KUV100 which was launched in January. 2016.7% as against decline of 5.both in Car and UV segments. Powered by the all new mFALCON family of petrol and diesel engines. In the LCV < 2T segment. bold and stylish. For the year under review. In the P a g e 25 | 40 . 5. The highlight for the year under review was the launch of two all new UVs.499 HCVs].413 LCVs in the LCV > 3.6% in the previous year.5% in the first half of the Financial Year 2015- 16. In the three-wheeler segment. A key highlight for the year under review was the launch of fourteen new products by your Company. the Passenger vehicle segment reported a growth of 7.5T GVW. Your Company’s UV sales volume grew by 7. your Company’s market share for this segment stood at 23. Launched in September. the KUV100 marks Mahindra’s entry into the petrol space. and the XUV500 continued to be the customer’s choice in the premium UV segment with over 36. Bolero retained the title of India’s largest selling SUV for the 10th consecutive year.2% which was largely driven by new launches . Jeeto is the first ever product in its category with a modular range of eight mini-trucks to cater to the varied needs of the sub 1 tonne load segment customers.5% after three consecutive years of decline. your Company sold 54. where many segments continued to be in the negative after the low of Financial Year 2013-14. These product launches were across product categories and have helped strengthen your Company’s presence across industry segments. the TUV300 and KUV100 in the compact UV segment.5T GVW segment continued to face difficult times due to slowdown in Agri incomes and finance availability. This growth is much more broad-based as compared to the patchy growth in the Financial Year 2014-15. the TUV300 is inspired by the design of a battle tank that lends it a tough.764 three- wheelers. 2015. Despite the tough appearance of a true blue SUV on the outside.975 three-wheelers registering a decline of 3. The commercial vehicle segment grew 11.000 sales in the year. Driven by the new launches. the Indian automotive industry (except 2W) grew 7. is designed to appeal to the cool and trendy. 41 vehicles between 2-3. During this year. and your Company continued leadership of the domestic UV market by posting a market share of 37. the < 3.

helps them P a g e 26 | 40 .5 crores) as compared to Rs. a new age. 1.02.031 vehicles as against previous year export of 30. This was the second consecutive year of steep decline. the Indian tractor industry declined by 10.1%.766 tractors sold in the previous year. two successive years of deficient monsoon. 41 PIK-UP segment of commercial vehicles (LCV 2 to 3. 111.9%. your Company launched Imperio. As a result of decline in these two consecutive years.34.93.569. With a vision to offer class leading tractors to the Indian farmer.020 tractors in the previous year.M. In the Financial Year 2015-16. Your Company continued to grow its presence in the neighbouring markets of Sri Lanka.14. With continued efforts of building brand in key markets like South Africa and Chile.50.9% market share with a gain of 0.963 tractors in the previous year. a growth of 19.5T). In February. Farm Division: Your Company’s Farm Division (including Swaraj Division) recorded sales of 2. recording a decline of 8. superior technology. In January. 1. the industry volume for Financial Year 2015-16 was 22. Your Company continues to be the market leader with a 40. with the Financial Year 2014-15 decline being 13. recording a decline of 8. 104.497 tractors as compared to 5. Nepal. your Company in the first week of April.4%. range of tractors in the 30-45 HP category. 2016 launched Mahindra YUVO. the premium. your Company reported a volume growth of 5% and 20% respectively.COM SEMESTER – I ROLL NO. 2016. Spare parts sales for the year stood at Rs.3%.1%. Your Company’s sales in the domestic market stood at 2. registering a growth of 12.3%.8 crores (including Exports of Rs. your Company launched Blazo series heavy commercial trucks with Fuelsmart technology. During the year under review.8%. which have impacted the crop production and rural sentiment at large. Bangladesh and Bhutan. 2016. The key reason behind this decline is. aspirational PIK-UP.9%.5 crores (including Exports of Rs.196 vehicles. where volumes grew by 29%.0 crores) in the previous year.772. your Company maintained its leadership position with a market share of 69.628 tractors as compared to 2. your Company posted the highest ever export volume of 36. The advanced technology of the YUVO range helps serve the diverse needs of farmers – from land preparation to harvesting as well as post-harvesting requirements.173 tractors as against 2. The domestic tractor industry recorded sales of 4.21.1% below the alltime high of Financial Year 2013-14. The Blazo series of trucks are backed by a guarantee of superior mileage and a 48 hours service guarantee.

As a first. Slowdown of growth in China (the slowest pace in 25 years) and resultant measures taken by the Chinese authorities. Other major advanced economies such as the Eurozone and Japan struggled to revive growth and continued with their quantitative easing. the slowdown in the African market due to the oil crisis. recording a growth of 16.4%. 48. 2015.3 crores (including Exports of Rs. As advanced economies struggled. registering growth of 2. In Financial Year 2015-16 this business saw a growth of 13. their economic outlook has deteriorated more rapidly than expected. 34. The focus of this business is to provide quality inputs and help improve farm productivity. Beyond tractors.COM SEMESTER – I ROLL NO. In the power generation space. 540.7%.9 crores in the current financial year as against Rs. 955. your Company has presence in crop care solutions and distribution of seeds. the region still has a lot of potential for economic expansion in the medium to long run. the first rate hike in nine years. In addition. your Company exported 11.3% in terms of revenue. Finance The world is in a churn and uncertainty and subdued global economic activity were the key themes for Financial Year 2015-16. faster and better.3 crores (including Exports of Rs. both Eurozone and Japan resorted to the unorthodox measure of adopting negative interest rate policy in order to kick-start consumption and pull their respective economies out of deflation. which led to the US Federal Reserve to announce an interest rate hike of 0. The US Federal Reserve was also caught in the churn as the slow growth rate across geographies has led to it stalling any further rate hikes. During the year under review. both in case of Brazil and Russia.109. your Company has improved its presence in the retail segment and made good progress in the ‘Energy Management Solutions’ space. even the emerging economies were hit by the fall in energy and other commodity prices. In case of Africa. impacted the overall export volumes.545 tractors which is a decline of 16.8 crores) as compared to Rs. under the Mahindra Powerol Brand. US economy showed signs of steady recovery with improvement seen in consumer spending and labour market. 1. mainly due to its demographic dividend but several political and institutional P a g e 27 | 40 . Along with the revenue growth. While the exports grew to the neighbouring countries.25% in December. fueled volatility in financial markets across the world. your Company continues to be amongst the leaders in the industry.8 crores) in the previous year. 41 do more.0% over the previous year. 526. Spare parts sales for the year stood at Rs.M. Your Company earned a revenue of Rs.5 crores in the previous year.

The latest World Economic Outlook by IMF projects the world economy to grow at an increasingly fragile pace due to global asset market volatility. With the CPI inflation firmly in control. Investor Relations (IR) Your Company continuously strives for excellence in its Investor Relations (“IR”) engagement with International and domestic investors through structured conference-calls and periodic investor/analyst interactions like P a g e 28 | 40 . prospects of interest rate hikes by US Fed and falling oil prices kept the currency markets volatile.298.13 as at 31st March. RBI continued to nudge Banks to ensure that effective transmission of rate cut in the system takes place. While the global slowdown continued to weigh on exports.41 crores of borrowings from internal accruals.M. Your Company continued to focus on managing cash efficiently and ensured that it had adequate liquidity and back up lines of credit. 315 crores under the interest equalisation Scheme of Government of India. your Company repaid Rs. which benefitted from lower energy prices. Indian Rupee displayed relative outperformance as compared to other emerging market currencies. refinements in the liquidity management framework and the introduction of the marginal cost of funds based lending rate to improve transmission and magnify the effects of the current policy rate cut in the economy. Amidst all the churn across the globe. led to surge of Foreign Direct investment (“FDI”). your Company availed Export finance amounting to Rs. The sudden currency devaluation by China. FDI in Financial Year 2015-16 touched a record high of USD 56 billion. India was one of the few bright spots in the world. 2016. Your Company follows a prudent financial policy and aims not to exceed an optimum financial gearing at any time. During the course of the year.COM SEMESTER – I ROLL NO. The Reserve Bank of India (“RBI”) through various measures augmented its forex reserves to counter any volatility in outflows amidst slowing growth in China and prospects that the Federal Reserve will consider raising US interest rates. which declined 16% and were at a 5-year low. The Company’s total Debt to Equity Ratio was 0. the Government’s commitment towards fiscal prudence and progressive economic policies. 1. loss of growth momentum in the advanced economies and continuing headwinds for emerging market economies. RBI reduced repo rate by cumulative of 75 bps in the first half of the financial year. talks about Grexit. Both the Government and RBI took several measures such as reduction in small savings rates. 41 constraints offer significant uncertainty. During the year. Financial Year 2015-16 was full of surprises for the currency markets. The Company’s Bankers continue to rate your Company as a prime customer and extend facilities/services at prime rates.

846. a publishing house based in UK. 5 each. Your Company interacted with around 635 Indian and overseas investors and analysts (excluding quarterly earnings calls and specific event related calls) during the year. In crores P a g e 29 | 40 . 5 each and tax thereon paid for the previous year]. 41 individual Meetings. 12 per Ordinary (Equity) Share of the face value of Rs. the Board of your Company decided not to transfer any amount to the General Reserve for the year under review.68 crores [as against Rs.36 crores on the dividends receivable from the subsidiaries during the current Financial Year) would absorb a sum of Rs. Further. 3.2 Financial Statement Rs. Telepresence Meetings. FinanceAsia is a magazine founded in 1996 to cover investment banking. The equity dividend outgo for the Financial Year 2015-16. your Company also organises annual conference call with investors/ analysts on key Environment. inclusive of tax on distributed profits (after reducing the tax on distributed profits of Rs. Your Company has created a ‘Group Investor Relations Council’ to share best practices across all the listed group companies and learn from each other. In order to engage with investors beyond financial numbers. Your Company always believes in leading from the front with emerging best practices in IR and building a relationship of mutual understanding with investor/analysts. capital markets and strategic corporate finance in Asia Pacific and is owned by Haymarket Media. Social and Corporate Governance (ESG) initiatives of the Company. Dividend Your Directors are pleased to recommend a dividend of Rs.M.COM SEMESTER – I ROLL NO. Your Company ensures that critical information about the Company is available to all the investors by uploading all such information at the Company’s website. 841. Your Company’s IR function was voted as one of the top 2 companies under the category ‘Best at Investor Relations in India’ for the year in the 16th Annual survey conducted by FinanceAsia magazine. Executive Director and Business Heads. payable to those Shareholders whose names appear in the Register of Members as on the Book Closure Date. 55. Hong Kong. 12 per Ordinary (Equity) Share of the face value of Rs. quarterly earnings calls and annual analyst meet with the Chairman & Managing Director. participation in investor conferences.95 crores comprising the dividend of Rs.

3 Balance Sheet as at 31st March.750 12. 2 Income Tax paid on dividend . 2016 Rupees crores Notes 2016 2015 P a g e 30 | 40 . 400 Less: Proposed Dividend 745 862 Less: Income-tax on Proposed Dividend 102 104 Less: Depreciation as per transition provision specified in 35 - schedule II of companies act.952 Less: Transfer to Debenture Redemption Reserve 17 17 Profits available for appropriation 15.629 13. 41 2016 2015 Gross Income 41. M.325 9.169 4.693 Add: Reversal of income tax on dividend paid for 2013-14 3 - Less: Transfer to General Reserve .226 Profit before Depreciation.982 43. Exceptional items 5.576 Less: Finance Cost 214 259 Profit before Exceptional items and Taxation 3.439 and Taxation Less: Depreciation 975 863 Profit before Finance Cost. Finance Cost. 2013 Less: Dividend for 2012-13 paid on shares issued on june.838 Less: Excise Duty on Sales 2.188 2.369 Less: Provision for Tax – Current Tax 743 350 Less : Provision for Tax – Deferred Tax 105 261 Profit for the year 3. * Balance carried forward 14.022 4.047 4.317 Add: Exceptional items 336 52 Profit before Taxation 4.325 *denotes amounts less than Rs. 2013 .COM SEMESTER – I ROLL NO.612 Net income 39. 50 lakhs 3.321 3.758 Balance of profit for earlier years 12.833 4.794 41. Exceptional items and Taxation 4.

...............372................ 6 614...33 4.....67 394...................................................................65 II....744...............12 (b) Inventories ...63 P a g e 31 | 40 ....34 586.......09 833....................67 CURRENT LIABILITIES: (a) Short Term Borrowings .........44 5.. 15 103.......................................... 8 106..............018..............................30 Intangible Assets............974...........461.......39 (b) Non-Current Investments ...........86 Intangible Assets under Development.27 8.............................795........................................ 3 18........................563......592...44 1............. 13 (B) 1...69 8.......................80 (c) Other Current Liabilities.65 (c) Other Long Term Liabilities .....133..255......66 19.....944..........................232.............803...............42 (b) Deferred Tax Liabilities (Net) .........39 16.........70 295...........766..........365....791........27 (d) Long Term Provisions ................ 10 2.............959..........73 (c) Long Term Loans and Advances .49 22.........108....................787.........74 9.................... EQUITY AND LIABILITIES SHAREHOLDERS’ FUNDS: (a) Share Capital ....... 13 (A) 11...............45 6.....496......02 170.... 14 3.....42 1......COM SEMESTER – I ROLL NO..............19 NON CURRENT LIABILITIES: (a) Long Term Borrowings.........34 510......26 3........................87 31................730........... 16 2...22 7. 41 I........ 4 2.288.13 1..... 7 607............. 12 (A) 5...............................715.....765............09 16........... 32............................816..............437......999...44 88..58 8............16 (b) Reserves and Surplus.......................................................................... 5 979...................................... 755.............041.....57 2...........12 (d) Other Non-Current Assets.....73 CURRENT ASSETS: (a) Current Investments ... 2 295...........105........56 (d) Short Term Provisions .... 12 (B) 134.. 11 1...................65 Capital Work-in-Progress .......514............................................ 1..............25 0.........70 889..... ASSETS NON CURRENT ASSETS: (a) Fixed Assets Tangible Assets.........................74 (b) Trade Payables .................................423...........068.........03 19.M.............79 Total .......706...................... 9 5..................51 5................13 3.....................

. 17 2..................................32 487.............04 Less: Excise Duty ..................794.10 945..............92 Changes in Inventories of Finished Goods..39 (e) Short Term Loans and Advances ...................288....22 Depreciation and Amortization Expense ...........69 2............................4 Profit and Loss for the year ended 31st March..... 20 529............................................391............................................08 Purchases of Stock-in-Trade..............21 11.............37 8..............................945...........................57 4.........68 Net Revenue from Sale of Products and Services..............................076..579....288...... 39.............................50 Other Income ..294.........558.316............ 23 20..........064..............83 (f) Other Current Assets...630.....11 10................... 21 38.......................84 (d) Cash and Bank Balances..14 Revenue from Operations (Net) ........................ 24 7..........67) Employee Benefits Expense.....28 P a g e 32 | 40 .............................48 21............... 41 (c) Trade Receivables ............ 25 323............COM SEMESTER – I ROLL NO...92 Total ..............................................................................90 863...65 3.508..............81 545.............950. 26 2.. 27 214.. 28 974...........72 Finance Costs ............................................ 22 848........... Stock-in-Trade and Manufactured Components .............93 2..... 38..................61 39................................................... 19 773......128.....................611....... 32............................................... 18 2.................509.........575.........................30 259.........94 717....03 2.600..............M........... 2........36 41... 21 40.....................163..49 EXPENSES: Cost of Materials Consumed ........63 (274.........................................272........42 40...................... 21 553............ Work-in-Progress......944................. 2016 Rupees crores Notes 2016 2015 Gross Revenue from Sale of Products and Services..........................87 31.....................77 2.............226...36 Other Operating Revenue .............................963....187.... 29 4.......359.....................30 42................99 Total Revenue ..................34 Other Expenses .................................

.............. 35.. 56.........23 63.......369.........................................................................961........ 3.72 488.............................99 103...............................92 837.................................168...................................................67 Diluted ..........58 261.........72 52.............. 5/...19 36.......................833................ 3.........07 4 P a g e 33 | 40 ......M............316..............95 Less: MAT Credit Entitlement ......................................... 4....................85 Profit before Exceptional Item and Tax ..43 Less: Tax Expense Current Tax...................... 41 335..........................04 Total Expenses........................17 4.......................15 Net Current Tax ..................................................................... 743........................ 41 36.............062....................................89 Less: Cost of Manufactured Products Capitalized...........66 61............909..........................78 611.............11 3................COM SEMESTER – I ROLL NO...................79 Profit before Tax....... 53..35 Earnings per equity share 42 (Face value Rs...........08 Profit for the year...... 92........012.18 37.........................................20 349.........80 Deferred Tax (Net)... 835......................64 Add: Exceptional Items ........................................................758..89 4.......................................28 847...............321............ 104..................................per share) (Rupees) Basic ... 100.......

41 RATIOS OF MAHINDRA AND MAHINDRA LIMITED 4.14 Earnings per Share 4.1 Gross Profit Ratio 4.8 Proprietary Ratio 4.10 Return on Capital Employed 4.13 Debtor Turnover Ratio 4.6 Current Ratio 4.M.12 Stock Turnover Ratio 4.9 Debt Equity Ratio 4.COM SEMESTER – I ROLL NO.4 Net Operating Profit Ratio 4.11 Return on Proprietor’s fund 4.7 Liquid Ratio 4.3 Expenses Ratio 4.5 Net Profit ratio 4.15 Dividend Payout Ratio P a g e 34 | 40 .2 Operating ratio 4.

41 4 RATIOS OF MAHINDRA AND MAHINDRA LIMITED 4.61 4.3 Expenses Ratio Expenses Considered X 100 Net Sales Expenses Ratio (%) of Mahindra is 5.86 4.COM SEMESTER – I ROLL NO.99 4.1 Gross Profit Ratio Gross Profit X 100 Net Sales Gross Profit Ratio (%) of Mahindra is 66.4 Net Operating Profit per Share Operating Profit X 100 P a g e 35 | 40 .2 Operating Ratio Cost of goods sold + Operating Expenses X 100 Net Sales Operating Profit Ratio (%) of Mahindra is 67.M.

8 Proprietary Ratio Proprietor’s Funds X 100 P a g e 36 | 40 .05 4.6 Current Ratio Current Assets Current Liabilities Current Ratio of Mahindra is 1.05 4.5 Net Profit Ratio Net Profit X 100 Net Sales Net Profit Ratio (%) of Mahindra is 8.84 4. 41 Net Sales Net Operating Profit Ratio (%) of Mahindra is 627.COM SEMESTER – I ROLL NO.7 Liquid Ratio Quick Assets Quick Liabilities Liquid Ratio of Mahindra is 0.M.52 4.

10 Return on Capital Employed Net Profit before tax and interest X 100 Total Assets Return on Capital Employed (%) of Mahindra is 14.12 Stock Turnover Ratio P a g e 37 | 40 . 41 Total Assets Proprietary Ratio (%) of Mahindra is 0.33 4.13 4.80 4.COM SEMESTER – I ROLL NO.14 4.11 Return on Proprietor’s fund Net Profit after tax and interest X 100 Proprietor’s Funds Return on Proprietor’s fund (%) of Mahindra is 18.9 Debt Equity Ratio Long Term Debts X 100 Total Funds Debt Equity Ratio (%) of Mahindra is 0.M.

M. of Equity Shares E.S of Mahindra is 48.37 4.13 Debtor Turnover Ratio Net Credit Sales Average Accounts Receivables Debtor Turnover Ratio (%) of Mahindra is 15.COM SEMESTER – I ROLL NO.44 P a g e 38 | 40 .14 Earnings per Share Net Profit after Tax & preference Dividend No.P. 41 Cost of Sales Average Stock Stock Turnover Ratio (%) of Mahindra is 16.15 Dividend Payout Ratio Dividend per Equity Share Earnings per Equity Share Dividend payout ratio of Mahindra is 22.07 4.87 4.

Majority of the customer are satisfied with the design of the vehicle.COM SEMESTER – I ROLL NO. Mahindra & Mahindra motors are providing better facilities as compared to other brands. As 67% of the respondents are satisfied that they are happy with the products. As 80% of the respondents are happy with the space availability in Mahindra vehicles. thus it will lead to more good word of mouth publicity. which is reflected on the satisfaction of the customer. A 20% of the respondents who have answered negatively may be comparing with the vehicle in the same category launched very recently. If the company were to identify the pitfalls in their product and undertake remedial measure. P a g e 39 | 40 . 41 5 CONCLUSION Mahindra & Mahindra motors have a very good market share in the vehicle segment specifically SUV. around 20% are not satisfied which may be because of comparison with the newly launched competing brands coming with even lower maintenance cost. The company is offering good services. it satisfies that the customer satisfaction levels are very high. Though majority of the customer are satisfied that the maintenance cost of Mahindra vehicles is less. it can be conducted that the company has undertaken proper R&D in this aspect.M.

wikipedia.com/financials/mahindramahindra/ratios/M M 4.moneycontrol.M.com/news-room/press-release/1300159661 P a g e 40 | 40 .aspx 5.com/pdf/MF_AR_2014-15.pdf 6.php? cc=MTA1MjAwMDMuMDA=&companyname=Mahindra--Mahindra- Ltd&i=ratios 3.org/wiki/Mahindra_%26_Mahindra 8.mahindra. Advanced Financial Accounting 2.mahindrafinance. http://www. www.mahindrafinance. http://www. 41 BIBLIOGRAPHY 1. http://www. http://forbesindia.com/article/boardroom/how-manhindra-mahindra- came-to-dominate-the-indian-automotive-industry/39141/1 7. www.COM SEMESTER – I ROLL NO.com/annual-reports.com/research-analysis/company/company- financial. https://en.indianotes.