INTRODUC

TION:-
The past decade has seen several exciting change in India’s
economic thinking. The liberalized business and legal
environment privatisation of the public sector, the
globalization of the economy and the resulting freedom and
challenges have resulted in a dramatic growth in business and
business opportunities and in the way business is conducted.
In this environment it is a imperative to maintain the highest
standards of corporate conduct and business principles; we
should be concerned not just with maximizing profit and share
holder value, but we equally conscious of responsibilities to
each of the stockholders – employees, business associates and
partners, financiers, society and the state. In its pursuit
towards this goals, we, at Mahindra automotive steels Limited
(MASL), have always laid emphasis on practice that reaffirm
the fundamentals of effective governance; practices that
maintain a balance between individual aspirations and
corporate goals; practices that underline our core values; and,
above all, practices that would result in delivering excellent
products and services whilst, at the same time, striving to
make the world a better place.
MASL recognise that there are many aspects of corporate
governance, each as important as the other, ensuring an
adequate return to share holders is one of them. Being a
transparent in the conduct of business affair and maintaining

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the trust and confidence of stack holders is another facet of
corporate governance. Corporate governance is also concern
with the empowerment of employee and the ethics, values and
moral of a company and its employees. Developing
capabilities, identifying opportunities and integrating
corporate social responsibility with operations is yet another
area that adds to value creation…… the list could go on. It is
for us to ensure that all these are carefully woven together to
produce a tapestry of myriad hues that symbolizes strong
business relationship, shareholder trust, employee loyalty,
respect in the community and excellence in all that we do.
This document is a reminder to each of us of the underlying
principles governing the conduct of our businesses. These are,
in a manner of speaking, a reaffirmation of the same principle
upon which the founding of the fathers of the Mahindra
companies built the edifice that we are all so proud of. It must,
however, be borne in mind that this can neither be considered
a panacea for all situations, nor an answer to every question.
We believe that adherence to this code will be yet another
journey of a thousand miles that has begun with this one step.

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Mahindra and Mahindra Financial Services Limited is one
of India’s leading non-banking finance companies. Through a
vast network of branches, we provide personalised finance for
the widest range of utility vehicles, tractors and cars, focusing
on the rural and semi-urban sector. MMFSL’s rural financing
is considered as the cornerstone of poverty reduction, rural
development and inclusive growth in many parts of the
country. With a majority of our country’s population living in
rural India, our loans to over 10,00,000 customers belonging
to the low income groups have proved to be a catalyst in
helping rural India surge ahead in a big way.
Who are at the bottom of the income or social pyramids to
grow by providing them loans based on their future earning
capacities? It is also our continuous endeavour to develop
skill sets at the local level. We currently provide employment
to over 6200 people who belong to the areas in which we
serve, ensuring that our employees truly understand their
customers.
Since 1945, we, at the Mahindra Group, have remained and
will continue to remain partners in the progress of rural India,
through both growth and turbulence. We salute the spirit of
every Indian living off the land and move ahead, trying to
understand the financial needs of rural India and tapping into
this vast market of unbounded opportunities.
Our goal is to be the preferred provider of retail financing
services in the rural and semi-urban areas of India, while our
strategy is to provide a range of financial products and
services to our customers through our nationwide distribution
network.

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Mahindra Insurance Brokers Ltd. is one of the few insurance
broking companies in India who have been awarded the
prestigious ISO 9001:2000 Certification for Quality
Management Systems. MIBL’s aim is to play a predominant
role in the insurance broking industry in India while focusing
on providing innovative solutions, greater value to customers,
superior quality of service and professional manpower
keeping in mind the spirit of social responsibility.

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Committed to maintaining a high standard of excellence,
MIBL has empanelled itself with various public and private
insurance companies to offer highly customised solutions to
its customers. A determined, dynamic and highly competitive
insurance broking company, MIBL’s core asset is the delivery
of timely and cost-effective insurance solutions.
MIBL was granted a Direct Broker License by the Insurance
Regulatory and Development Authority (IRDA) on May 2004
for undertaking direct insurance broking in Life and Non-Life
businesses.
MIBL undertakes direct insurance broking business, both in
the Life and Non-Life insurance segments with a focus on
Retail and Commercial lines of businesses.

Corporate Social Responsibility:-

Companies still thinking about the environment as a social
responsibility rather than a business imperative are living
behind the times. Corporate Social Responsibility is a
voluntary decision that the entrepreneurial leadership of every
company must make on its own.
At Mahindra Finance we sincerely believe that the actions of
the organisation and its community are highly interdependent.
As our Corporate Social Responsibility we actively
implement programs and initiatives for the betterment of
society, communities, and the environment.

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Both on its own and as part of the Mahindra Group, through
constant and collaborative interactions with our external
stakeholders, MMFSL strives to become an asset in the
communities where it operates. We are deeply committed to
education, the environment, and setting up and maintaining
infrastructure for urban beautification, pollution reduction and
healthcare; waste management in the office environment, tree
plantation and water treatment.
We encourage and recognise our employees for volunteering
with the spirit of serving and sharing with the community.
We’ve partnered with the government, NGO’s and other
business partners to contribute positively towards the
economic and human development of the society, and
especially, the underprivileged sections of society. Here are
some of the projects that we’ve undertaken:

 ESOPs

Employee Social Options are designed to instil the spirit

of social volunteering in the employees of the Mahindra
group. This unique initiative provides our employees
with an opportunity to contribute to society by
participating in our wide-ranging social activities.
Mahindra has seen its volunteers grow from a few
hundred to more than 14,000 today, which prompted

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 Anand Mahindra, the group Vice Chairman and
Managing Director to say, “With the implementation of
ESOPs we are proud to announce that on any given day
in the year, somewhere in India, you will find a
Mahindra employee contributing to Society”.

 Mahindra Hariyali:-

Mahindra Hariyali is a mass tree plantation initiative

undertaken by each and every Mahindra location, be it a
Plant/factory setting or a corporate office. ‘Shramdaan’
by Mahindra employees, their families and even
Mahindra dealers, is a major driver of the initiative.
Along with strong and meaningful partnerships with
various stakeholders in the civil society such as schools,
colleges, trusts, and the Government (Forest
Departments, etc.), the Mahindra Hariyali model ensures
plantation and nurturing of these trees in the society at
large.

 Nanhi Kali

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 Project Nanhi Kali was initiated in 1996 by K C
Mahindra Education Trust (KCMET) with an objective
to provide primary education to underprivileged girl
children in India. In 2005 KCMET entered into a
partnership with Naandi Foundation, a reputed NGO, to
jointly manage the programme. Through this partnership
we aim to extend 10 years of quality education and
material support to underprivileged girl children. This
hugely successful participatory project is supported by
individuals, groups and corporates who are encouraged
to sponsor the education of a girl child for a minimum
period of one year. Sponsors receive a profile of the girl
along with her photograph followed by regular ‘Progress
Reports’ so that they can track the academic records of
their sponsored child. The project currently supports the
education of over 49,203 underprivileged girl children.

 Lifeline Express

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 Life Line Express, a free of cost hospital-on-wheels, is a
joint undertaking of Mahindra & Mahindra Automotive
and Mahindra Finance to sponsor the Lifeline Express
project at Rangia, Assam. Our sense of Corporate Social
Responsibility, coupled with the highest volunteering
spirits by ESOPS (Employee Social Options) Volunteers
from M&M Auto Sector and Mahindra Finance in
Guwahati, makes the project a huge success. 21,000
voluntary man hours through community participation by
surgeons, anaesthetists, doctors, technicians, paramedics
and NSS Volunteers and 15,000 ESOPS man hours by 94
dedicated employees of the Rudrapur Plant were
dedicated to this project. Economically marginalized
patients, with cleft lips, ear deafness related disorders,
corrective polio and cataracts were operated upon.

 Blood Donation

Mahindra Finance has also been conducting Nationwide

Blood Donation Camps and Annual Blood Donation
Drives to commemorate its pledge to our society under

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 the banner of Employee Social Options (ESOPS), along
with various other social projects
.

 Ambulance Donation

Mahindra Finance has forever stood by its vision of

developing the entire community in which it operates. In
keeping with that spirit, the Mahindra Finance Group has
donated ambulances to Echo, Voice of India, Sevak
Mental Hospital, Mukth Jeevan and other hospitals.

With our ‘Auto Refinance’ option we provide fast and easy

loans for the purchase of used cars, utility vehicles, used
commercial vehicles and used tractors. Also, if you have an
existing four wheeler which is upto 10 years old and is not
ABOUT MMFSL-HISTORY &MILESTONES

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The history of Mahindra Finance has been a history of
continuous ascent. Listed below are the important events and
milestones in the story of Mahindra Finance.
We were incorporated on January 1, 1991 as Maxi Motors
Financial Services Limited and received certificate of
commencement of business on February 19, 1991. Our name
was changed to Mahindra & Mahindra Financial Services
Limited on November 3, 1992. We are registered with the
Reserve Bank of India as an NBFC. The Company is having a
valid Certificate of Registration No. 13.00996 issued by the
Reserve Bank of India under section 45-IA of the Reserve
Bank of India Act, 1934 classifying it as an ‘Asset Finance
Company – Deposit Taking’.
Our Milestones:
1993

 Commenced financing of Mahindra and Mahindra Utility

Vehicles.
1995

 Opened our first branch outside Mumbai, at Jaipur.

1996

 Commenced financing M&M dealers for purchase of

tractors.

1998

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  Launched a pilot project for retail tractor financing.

1999

 Commenced tractor retail financing in rural and semi-

urban areas
2001

 Total Assets crossed the 10 billion mark.

2002

 Commenced financing of non-Mahindra & Mahindra

vehicles.
 Received Tier II debt from International Finance
Corporation.
 Made our first securitisation transaction of Rs
438.8Million.
2004

 Opened a branch in Port Blair.

 Received a long-term credit rating of AA+/Stable.
 Commenced Insurance Broking through our subsidiary
MIBL.
 Securitisation of tractor assets of Rs.256.6 million.
 Listing of non convertible debentures on BSE on the
wholesale
debt market segment.
2005
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  Tied up with HPCL Made Mahindra Insurance Brokers
Ltd our wholly owned subsidiary.

2006

 Issued our IPO.

 Tied up with Maruti Udyog Limited.
2007

 Reach extended to over 400 branches.

2008

 Commenced the home loan business through our

subsidiary, Mahindra Rural Housing Finance Limited
(MRHFL)
2009

 Recommenced Fixed Deposit programme.

 Received 12.5% equity participation from NHB for our
Subsidiary Mahindra Rural Housing Finance Ltd.
2010

 Loan against Gold launched in Kerala.

 Assets Under Management crosses Rs. 10000 crores.
 PBT crosses Rs. 500 crores.
 Branch network crosses 450 branches.

Overview of Mahindra Group

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The US$ 6.3 billion Mahindra Group is among the top 10
industrial houses in India. Mahindra & Mahindra is the only
Indian company among the top three tractor manufacturers in
the world. Mahindra's Farm Equipment Sector has recently
won the Japan Quality Medal, the only tractor company
worldwide to be bestowed this honour. It also holds the
distinction of being the only tractor company worldwide to
win the Deming Prize. Mahindra is the market leader in multi-
utility vehicles in India. It made a milestone entry into the
passenger car segment with Logan.

 The Group has a leading presence in key sectors of the

Indian economy, including the financial services, trade
and logistics, automotive components, information
technology, infrastructure development and After-
Market.

 With over 62 years of manufacturing experience, the

Mahindra Group has built a strong base in technology,
engineering, marketing and distribution which are key to
its evolution as a customer-centric organization. The
Group employs over 50,000 people and has several state-
of-the-art facilities in India and overseas.

 The Mahindra Group has ambitious global aspirations

and has a presence on five continents. Mahindra products
are today available on every continent except Antarctica.
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 M&M has one tractor manufacturing plant in China,
three assembly plants in the United States and one at
Brisbane, Australia. It has made strategic acquisitions
across the globe including Stokes Forgings (UK), Jeco
Holding AG (Germany) and Schoneweiss & Co GmbH
(Germany). Its global subsidiaries include Mahindra
Europe Srl. based in Italy, Mahindra USA Inc. and
Mahindra South Africa.

 M&M has entered into partnerships with international

companies like Renault SA, France, and International
Truck and Engine Corporation, USA. Forbes has ranked
the Mahindra Group in its Top 200 list of the World's
Most Reputable Companies and in the Top 10 list of
Most Reputable Indian companies. Mahindra has
recently been honoured with the Bombay Chamber Good
Corporate Citizen Award for 2006-07.

Core purpose

We don't have a group-wide mission statement. Our Core

Purpose is what makes all of us want to get up and come to
work in the morning.'

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- Anand G. Mahindra

Indians are second to none in the world. The Founders of our

nation and of our Company passionately believed this. We
will prove them right by believing in ourselves and by making
Mahindra & Mahindra Limited known world-wide for the
quality of its products and service.

Core Values:-
Mahindra’s Core Values are influenced by our past, tempered
by our present, and will shape our future. They are an
amalgam of what we have been, what we are and what we
want to be.
Good Corporate Citizenship As in the past, we will continue
to seek long term success, which is in alignment with our

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country's needs. We will do this without compromising ethical
business standards. Professionalism We have always sought
the best people for the job and given them the freedom and the
opportunity to grow. We will continue to do so. We will
support innovation and well reasoned risk taking, but will
demand performance. Customer First We exist and prosper
only because of the customer. We will respond to the
changing needs and expectations of our customers speedily,
courteously and effectively. Quality Focus Quality is the key
to delivering value for money to our customers. We will make
quality a driving value in our work, in our products and in our
interactions with others. We will do it 'First Time Right'.
Dignity of the Individual

We will value individual dignity, uphold the right to express

disagreement and respect the time and efforts of others.
Through our actions, we will nurture fairness, trust and
transparency.
These values are the compass that will guide our actions, both
personal and corporat

 
Vision

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Mahindra Finance vision is to be the leading Rural Finance
Company and continue to retain the leadership position for
Mahindra Products.
 Mission
 Mahindra finance is recognised as the premier
provider of financial services on the basis of
contribution to sale of Mahindra range of vehicles,
tractors, services and help .M&M protect its sale
through availability of finance.
 Mahindra finance will specialize in financing
products based on applications and build on the
competence developed in its focus area. Mahindra
finance is targeting all segments of vehicle financing
and deploys the skills acquired through an in-depth
understanding of the chosen product market.
 Mahindra finance provides product and services
tailored to the need of M&M, our most favored
customer, and always meet their needs. In case of
demand-supply mismatch of funds, Mahindra finance
will do everything to find a solution.
 My first hand research and development will help
M&M to develop better products by providing first-
hand information received from the target market.

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 ORGANISATIONAL GOALS

Mahindra Finance's main goals are to

(a) Develop close relationships with individual

customer,

(b) Maintain its position as the premier finance

institution in the country,

(c) Transform ideas into viable and creative

solutions,

(d) Provide consistently high returns to shareholders,

and

(e) To grow through diversification by leveraging off

the existing client base.

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SLOGAN

“Dhan ki suracha aur tarkki dono pakki”

Sectors:-

Automotive Sector
 Domestic Operations
 International Operations
 Mahindra Renault Private Limited (MRPL)
 Mahindra Navistar Automotives Limited (MNAL)
 Mahindra Navistar Engines Private Limited (MNEPL)

After-Market Sector
 Mahindra Spares Business
 Mahindra First Choice
 Mahindra First Choice Wheels Ltd.

Farm Equipment Sector

 Domestic Operations
 International Operations
 Mahindra Gujarat Tractor
 Mahindra Agribusiness
 Mahindra Power
 Mahindra USA
 Mahindra Australia
 Mahindra China Tractors

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Financial Services Sector:-
 Mahindra & Mahindra Financial Services Ltd (Mahindra
Finance)
 Mahindra Insurance Brokers Ltd.
 Mahindra Rural Housing Finance Ltd (MRHFL)

Infrastructure Development Sector

 Mahindra Holidays & Resorts
 Mahindra Life spaces Developers Limited
 Mahindra World City
 Mahindra Infrastructure Developers
 Acres Consulting Engineers
Information Technology Sector

 Tech Mahindra
 Bristlecone
Mahindra Systech  
 Forgings
 Mahindra Forgings Limited - India
 Mahindra Forgings Europe – Ag
*GSA
*Schonoweiss & Co GMBH
*JECO
*Stokes UK

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 *Falkenroth

 Engineering Services
 Mahindra Engineering
 Engines Engineering Italy
 Mahindra Aerospace

 Stampings
 Steel
 Ferrites
 Contract Sourcing
 Telematics
 Composites
 Gears
 Mahindra Sar Transmissions
 Metalcastello Italy

Mahindra Partners

Mahindra Odyssea

Mahindra Intertrade

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 Mahindra Steel Service Center

Mahindra Middle East Electrical Steel Service Centre

(MMESSC)

Mahindra Logistics Ltd.

Mahindra Retail

BRANCH LOCATION

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MANAGEMENT –BOARD OF DIRECTORS
At Mahindra Finance we have nine noted directors vested
with the charge of general supervision, direction and
management of the operations of our company.

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The primary responsibility of the Board of Directors includes:

 Overseeing high standards of corporate governance and

compliance with various laws
 Overseeing our financial management and approving
various lines of business
 Shaping our policies and procedures
 Monitoring our performance and evolving the growth
strategy
 Setting up counter-party and other prudential risk
management limits
 Setting up counter-party and other prudential risk
management limits

Board of Directors Designation

Mr. Bharat N. Doshi Chairman
Mr. U. Y. Phadke Vice Chairman
Managing
Mr. Ramesh Iyer
Director
Mr. Dhananjay Mungale Director
Dr. Pawan Kumar
Director
Goenka
Mr. M. G. Bhide Director
Mr. Piyush Mankad Director
Mrs. Rama Bijapurkar Director

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 Mr. M. B. N. Rao Director

 
Mr. Bharat N. Doshi

Mr. Bharat Doshi is a fellow member of both, the

Institute of Chartered Accountants of India and the Institute of
Company Secretaries of India and has a Master’s Degree in
Law from the University of Bombay. He has participated in
the Program for Management Development at the Harvard
Business School.
Mr. Bharat joined Mahindra & Mahindra Limited (M&M) in
the year 1973. He is presently designated as Executive
Director and Group Chief Financial Officer (Group CFO),
M&M. Mr. Bharat Doshi is very actively involved with the
work of several Chambers of Commerce and Industry in India
and is a member of various Expert Committees, which
influence economic and business policies of the Government.
He was a member of the High Powered Expert Committee
constituted by the Ministry of Finance, Government of India,
on Making Mumbai an International Financial Centre and is a
member of the SEBI (Securities and Exchange Board of
India) Committee on Disclosures and Accounting Standards
(SCODA).
Mr. Bharat Doshi was the Chairman of Expert Committee on
Economic Affairs of Bombay Chamber of Commerce and

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Industry (BCCI) during 1996-97. He was a member of the
Managing Committee of Bombay Chamber of Commerce &
Industry from May 2005 to May 2007. Mr. Bharat Doshi has
been elected as Vice President of Bombay Chamber of
Commerce & Industry (BCCI) for the year 2008-09.
Mr. Bharat Doshi was adjudged ‘India’s Best CFO’ by the
leading business fortnightly ‘Business Today’ (India Today
Group Publication) in April 2005. He was also conferred the
'CFO of the Year' Award, honouring financial excellence,
instituted by IMA India, an associate of The Economist
Group, in December 2005. In November 2007, Bharat Doshi
was honoured with the prestigious CNBC CFO of the Year
2007 award.
Mr. U. Y. Phadke

Mr. U. Y. Phadke is a member of the Institute of

Chartered Accountants of India and the Institute of Company
Secretaries of India and has a Bachelor's degree in Commerce
and Law.

Mr. Phadke joined Mahindra & Mahindra in 1973. He is

presently designated as President - Finance, Legal and
Financial Services Sector and Member of Group Management
Board.

Mr. Phadke is the Vice-Chairman of Mahindra & Mahindra

Financial Services Limited. Mr. Phadke has been Chairman of

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the Direct Taxes Committee of the Bombay Chamber of
Commerce and Industry and on the Accounting Standards of
Board of the Institute of Chartered Accountants of India. He is
a Member on the `National Committee on Professional
Services' of CII & he is on the Governing Council of Indian
Association of Corporate CFOs and Treasurers. He is a
Member of the Working Group on ‘Employee Benefits’
constituted by the International Accounting Standards Board.
He is also a Special Invitee to the meetings of National
Advisory Committee on Accounting Standards constituted
under the Companies Act.
Mr. Ramesh Iyer

Mr. Ramesh Iyer has been the Managing Director of

the Company since 2001 and is associated with the Company
since its inception. Mr. Iyer, a commerce graduate and an
MBA from Mumbai University was working with Ashok
Leyland Finance Limited prior to joining the Company. He is
also a member of core committee of Finance Industry
Development Council. Mr. Ramesh Iyer has been awarded
with the Udyog Rattan from The Institute of Economic
Studies, New Delhi and has also been presented with
‘Rashtriya Udyog Pratibha Award’ from the Council for
Economic Growth & Research, Pune in December, 2007.
Presently he is the Chairman of Banking & Finance
Committee of Bombay Chamber of Commerce & Industry.
Mr. Dhananjay Mungale

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 Mr. Dhananjay Mungale is a Chartered Accountant
and a Law graduate. He has spent a major part of his career in
corporate and investment banking in India and Europe with
Bank of America and DSP Merrill Lynch Ltd. He is presently
acting as advisor to various corporations in India and Europe.
He is on the Board of various public and private limited
companies.
 Dr. Pawan Kumar Goenka

Dr. Pawan Kumar Goenka is a Mechanical Engineer

with a B. Tech from the Indian Institute of Technology,
Kanpur, and a Ph.D. from Cornell University, USA. He has
also done an Advanced Management Programme (AMP) at
the Harvard Business School.

Dr. Pawan Goenka joined the Mahindra Group in October

1993 as General Manager – Research & Development, after a
successful career spanning 14 years with General Motors,
USA. Under his leadership, Mahindra & Mahindra launched a
slew of new products such as Pick-Up, Marshal, Armada 98,
Bolero and Loadking. His best acknowledged contribution is
his leadership of the Scorpio project, which brought laurels to
Mahindra & Mahindra, both in India and abroad. He became
Executive Vice President – Product Development in
September 2001, and was promoted to Chief Operating

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Officer of the Automotive Sector in April 2003. Dr. Goenka
took over as President of the Automotive Sector on 26th
September 2005. Among other achievements, he has also
played a key role in the formation of both the Renault and
International Truck joint ventures.

Dr. Goenka is an internationally acknowledged scientist –

manager with several citations to his credit. He received the
Distinguished Alumni Award from the Indian Institute of
Technology, Kanpur in 2004 and is a Fellow of the Society of
Automotive Engineers (SAE) and of the Indian National
Academy of Engineers. He has been honored by General
Motors through the Charles L McCuen Achievement Award
twice and the Extraordinary Accomplishment Award. Dr.
Goenka is the Vice President of SIAM Executive Council and
Chairman of the Technical Committee. He holds the position
of President of the ARAI Governing Council and is a past-
President of SAE India.

Mr. M. G. Bhide

Mr. M. G. Bhide is a M.A., CAIIB. He was the

Chairman & Managing Director of Bank of India. He was also
the Managing Director & Group Executive (National

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Banking) of State Bank of India. He has also served on
various Committees constituted by the Reserve Bank of India.
 Mr. Piyush Mankad

Mr. Piyush Mankad did his post graduation in

History from St. Stephen’s College, University of Delhi, and
obtained a post graduation diploma in Development Studies
with Distinction from Cambridge, U. K.

Mr. Mankad is a retired civil servant. He was the Managing

Director, State Industrial Development and Investment
Corporation and ex-officio Secretary to the State Government.
He has also held important positions including those of
Counsellor Economic, Embassy of India – Tokyo, Controller
of Capital Issues – Ministry of Finance, Director General –
National Productivity Council of India, Secretary –
Departments of Industrial Development and Public
Enterprises, Secretary – Industrial Policy and Planning,
Chairman – Foreign Investment Promotion Board, Secretary
Information and Broadcasting, Finance Secretary –
Government of India and Executive Director (India) and
Board Member – Asian Development Bank, Manila. He was
also a member of Telecom Commission, Space Commission
and Atomic Energy Commission and is on the Board of IIM
Ahmedabad, IIM Calcutta and IIM Bangalore. He was a
Member of the Investment Advisory Committee of the Army
Group Insurance Fund, India. He also served on the Asia
Pacific Advisory Committee of Barclays Capital U.K. He is a

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Trustee of the Vodafone India Foundation. He is also a
Member of the Governing Body - Lady Shriram College for
Women, New Delhi and Association of Indian Diplomats.

Mrs. Rama Bijapurkar

Ms. Rama Bijapurkar graduated with a B.Sc. (Hons.)

degree in Physics from Miranda House, Delhi University and
a Post Graduate Diploma in Management from Indian
Institute of Management, Ahmedabad. She is an independent
market strategy consultant and also a visiting faculty and
member, Board of Governors of the Indian Institute of
Management, Ahmedabad. She has over 30 years of
experience in industries such as advertising, marketing and
consultancy. She has previous work experience with
McKinsey & Company, MARG (now AC Nielsen India), and
been a full time consultant with Hindustan Unilever Ltd.

Mrs. Rama Bijapurkar has published extensively on emerging

market and consumer related issues and is the author of the
book titled “Winning in the Indian Market – Understanding
the Transformation of Consumer India”. She serves as an
Independent Director on the Boards of various reputed
Companies.

Mr. M. B. N. Rao

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 Mr. M. B. N. Rao, former Chairman and Managing
Director of Canara Bank and Indian Bank, has graduated with
a B. Sc degree in Agriculture and is an Associate of the
Chartered Institute of Bankers, London and a fellow of the
Indian Institute of Banking and Finance. He is a member of
the Singapore Institute of Management and has done his
Diploma in Computer Studies from University of Cambridge
and National Computing Center, London.
Mr. M.B.N. Rao has extensive in-depth knowledge and over
38 years of varied experience in Banking and Finance,
Economics, Foreign Exchange, Money and Capital Markets,
Risk Management, Treasury and Funds Management, Asset
and Liability Management, Advisory Services, Accountancy,
Information Technology and Technology in Banking, Credit
Management, Project Finance, Industrial and Infrastructure
Finance, International Trade Finance, Priority Sector Lending,
Social Banking, Entrepreneurial Development, Lending to
Agriculture and SMEs, Financial Inclusion, Retail Banking,
NPA Management, Human Resource Management,
Marketing, Internal Control, Inspection & Audit, Vigilance,
Taxation and Administration.
Mr. Rao is a Director on the Boards of various reputed
Companies. Mr. Rao is also a Member of Committees
constituted by the Ministry of Finance, SEBI and National
Institute of Bank Management.

33 | P a g e
Our products

With an extensive range of products and services, we at

Mahindra Finance, make sure that there’s something that suits
everyone’s needs. Our products and services are considered
instrumental in the rapid development of rural as well as semi-
urban India.
Here’s a list of products and services offered by MMFSL:

34 | P a g e
Utility Vehicles:
Our attractive schemes for multi-utility vehicles have helped
many entrepreneurs to transform their dreams into reality. We
provide finance for the entire range of Mahindra Utility
Vehicles and also provide trade advance facilities for dealers.

Tractor Loans:
With the majority of our country’s population engaged in
farming and agriculture, our farm equipment loans have
proven to be a major catalyst in helping rural India surge
ahead. The widest range of tractors of the Mahindra, Swaraj &
Shaktiman brands is financed by our highly customised loans.
Car Loans:
We are the preferred financier for M&M as well as all other
small car manufactures in the country— Hindustan Motors,
Hyundai, General Motors, Maruti Udyog Limited. The loan
obtaining process ensures maximum flexibility, minimum
paperwork and highly customised loans to suit our customers’
needs.

35 | P a g e
Two-Wheeler Loans:
For a wide range of two-wheelers which include motorbikes,
mopeds, scooters or scooterettes, we make sure that our
customers are offered speedy loans with flexible repayment
options. We also provide loans to women customers at special
rates and offer fast approvals for the same.

Three-Wheeler Loans:
Our customised financial options and quick process of
sanctioning a loan makes acquiring a new three-wheeler easier
than ever before. A wide range of Mahindra three-wheelers
are financed with flexible repayment options and minimal
documentation.

Refinance:
We provide fast and easy financial options to purchase used
cars, utility vehicles, commercial vehicles and tractors. We

36 | P a g e
also provide expedient loans against an existing car, utility
vehicle and other commercial vehicles.

Commercial Vehicle Loans:

At Mahindra Finance, we also provide commercial vehicles
and construction equipment loans. Commercial vehicles
include trucks, buses, tippers, excavators, light commercial
vehicles and more. We fund new vehicles as well as old ones
and even top-up existing loans.

Construction Equipments:
Customers in need of construction equipments can avail of
our range of flexible loans, and simple loan process. We also
extend financial assistance for buying second hand
commercial vehicles.

Home Loans:
Mahindra Rural Housing Finance, a subsidiary of MMFSL,
provides cost effective and flexible home loans to a wide base

37 | P a g e
of customers and semi-urban India. Loans are provided for
home construction, purchase, extension and improvement.

You can now avail of our personal loans for any of your
personal needs. Your needs may range from expenditures
during festivals, medical needs, educational needs, etc. With
our minimal documentation and superior flexibility, now
make sure all your requirements are met securely
FEATURE OF PERSONAL LOANS.

 Quick local disbursements of loans

 Maximum tenure of loans between 12 – 24 months
 Loan available for MMFSL Existing customers & M&M
Group employees only
 Hassle-free documentation process offering maximum
flexibility
 Attractive rates of Interest between 9.5% - 18.50% based
on customer profile and scheme opted
 Nominal and competitive processing charges

38 | P a g e
Investment Advisory Services - Mutual Fund Distribution
Our investment advisory services help customers invest their
money in equity through different Mutual Fund Schemes. We
assure our client’s high returns by identifying products
compatible with their appetite for risk and best suited for their
needs.

Personal Loans:
Now customers will never have to worry about that extra
amount needed to fulfil all their needs. Be it Marriage related
expenses, Children’s higher education, Medical treatment,
Agricultural needs or just a temporary requirement of money.

Insurance:
Mahindra Insurance Brokers Ltd., a subsidiary of MMFSL,
provides comprehensive Insurance solutions that are highly
BUSINESS FOCUS
The loan products designed by us, both in terms of
amount and tenure, are based on usage and the economic
life of the vehicle Commercially, UVs are used both for
passenger as well as goods transport. Tractors are used for
both farm and haulage applications.

Mahindra finance innovative and flexible repayment

39 | P a g e
schedule is designed on a case to case basis and suits the
need of every borrower, with convenient and comfortable
repayment schedules and methods. Mahindra finance offer
quarterly, monthly, half-yearly repayment schedules and one
can repay via post-dated cheques, demand drafts and cash.

Mahindra finance customers for retail loans are small

entrepreneurs or self-employed individuals such as
transport operators, taxi operators and agriculturists.
Mahindra finance also provide trade finance to automobile
and tractor dealers, which following the sale of a vehicle, are
converted into direct retail customer loans. Our customers
usually provide part of the amount and the balance of the
vehicle’s price is financed by us.

Mahindra finance is in believed that to operate effectively in

rural and semi-urban areas, it is necessary to be familiar with
the local culture, practices and environment. Accordingly,
mahindra finance Endeavour to recruit local employees
into our branches and provide them training on our tailor-
made training programmes. Mahindra finance conducts
most of our business through our own field executives and
branch personnel, which is believed preferable to relying on
outsourced marketing agents and sales agents.

Mahindra finance business has grown extensively since the

40 | P a g e
time it was established. Our loan assets, total income and
profit after tax have all grown considerably over the last few
years.

BRANCH: Mahindra Finance started ours business on 1

January 1991. In 2003 Total Number of Branch was 196, in
2003 were 224, in 2004 were 256, in 2005 were 305, in 2006
were 403, and in 2007 were 437.

41 | P a g e
 Branch Networks
437

403

305

2003
224
2008 2004
2007 2005
2006 2006
2005
2007
2004
2008
2003 Years

No. of Branches

INVEST ZONE

Investor Info 

Registered Gateway Building, Apollo Bunder,

office Mumbai 400 001.
Tel: 22021031; Fax: 22875485
Website: www.mahindrafinance.com

42 | P a g e
Key officials Name - Bharat Doshi
Designation - Chairman

Name - Uday Y. Phadke

Designation - Vice Chairman

Name - Ramesh Iyer

Designation - Managing Director

Name - V. Ravi
Designation - Chief Financial Officer

Name - Arnavaz M.Pardiwala

Designation - Company Secretary &
Compliance Officer
Industry Financial Services
Listings BSE, NSE
BSE code 532720
NSE code M&MFIN

ISIN INE774D01016

43 | P a g e
SUSTAINBILITY
Sustainability Development is meeting the needs of the
present without compromising the ability of future
generations to meet their needs.’
The problems we face today demand a creative resolution, the
path less taken, in an indirect and unconventional direction.
This is where the Mahindra Group presents its unique and
socially inclusive business model, or in other words, the
‘alternative’ business model.
Mahindra is an organisation that is in a continuous state of
flux, a constant evolution in order to stay ahead of the
demands of its dynamic market environments. An active
sustainability council comprising of the senior management
works with unflagging resolve to institutionalise the principles
of sustainability, to reduce the ecological impacts of its
operations and to re-strategize businesses to achieve
sustainable growth.
In all its sustainability reports the main focus is essentially on
the following three points:
‘People’ refers to fair and beneficial business practices with
respect to labour, the community and the region in which a
corporation conducts its business.
‘Planet’ refers to sustainable environmental practices. It is a
TBL company that endeavours to benefit the natural order as
much as possible or, at the least, do no harm and curtail
environmental impact.
44 | P a g e
‘Profit’ is the bottom line shared by all commerce,
conscientious or not. In the original concept, within a
sustainability framework, the profit aspect needs to be seen as
the economic benefit enjoyed by the host society.

Today, as we and our world grapple with

emerging issues such as climate change, energy, food and
water shortages, accelerated loss of biodiversity, persistent
poverty and an ever-widening gap between the have and the
have-nots, the need of Alternative Thinking is vital. We at
MMFSL have been practicing Alternative Thinking across
various disciplines and it has been an active endeavour to
integrate it into our ethos.
From the year 2008 – 09, we’re a part of the sustainability
report released by Mahindra & Mahindra annually. The
initiatives taken up by us were as follows:

 Alternative Culture
Awareness among employees: In the first phase of this
program, we covered all on-roll employees across India
from offices covered under the sustainability report,
generating awareness about the issue of sustainability
through numerous presentations. These presentations
were delivered to regional offices as well as the head
office. In the second phase the presentation was passed
on to all branches and employees at the branch level.

45 | P a g e
 The awareness information is now been included in our
induction programme – ‘DRONA’.
Sustainability Corner: At the Head Office in Mumbai
we have started a special sustainability corner where we
display updates on the various initiatives mentioned here.
SPANDAN: On 2nd March 2009, our internal magazine
SPANDAN was created around the theme
‘Sustainability’. The magazine was made available to all
employees and the senior management.

 Alternative Care
Lifeline Express: Lifeline Express is a Mahindra &
Mahindra initiative which was held at Guwahati where
medical services were provided without a cost. Along
with Mahindra Auto, Mahindra Finance is a major
contributor to this cause having devoted two full time
resources from our company towards this project.
Blood Donation: Mahindra Finance has also been
conducting Nationwide Blood Donation Camps and
Annual Blood Donation Drives to commemorate its
pledge to our society under the banner of Employee
Social Options (ESOPS) along with various other social
projects.

 Alternative Growth
Monday Greens: Every Monday, the HR department
sends out creative ideas on the concept of ‘Sustainability’

46 | P a g e
 to all our employees to ensure that these values are
deeply instilled in them.
Mahindra Hariyali: The Mahindra Group has taken on
an endeavour to plant 1 million trees across the country.
This initiative was formally launched in Patna in 2007 by
planting trees at the Eco Garden at AN College, Patna.
Mahindra Hariyali as part of our Corporate Social
Responsibility (CSR) initiative is aimed at sustainability
focusing on the environment. Mahindra Finance has now
planted 35,425 trees during this financial year.

 Alternative Reality
Nanhi Kali - Managed by the K.C. Mahindra Education
trust, Nanhi Kali is a focused approach to provide
primary education to the underprivileged girl child. It is a
participatory project and any individual or corporate can
sponsor a Nanhi Kali Education. The highly successful
project currently supports over 44,000 girls of which
MMFSL has sponsored 201 children.
Along with this we also have had certain initiatives like
saving paper and reducing electricity consumption,
which helps re-enforce awareness and also spreads
awareness.
 

Strength of MMFSL

47 | P a g e
As one of India’s leading non-banking finance companies
Mahindra Finance enjoys certain exclusive strengths:

 Fast loan processing:

One of the most important assets of Mahindra Finance is
our fast loan disbursement process. With minimal
documentation and utmost flexibility, our loans are
usually disbursed within a period of 2 days.

 Wide network:
Our extensive network of over 450+ branches spanning
the country makes sure that you can always find a
Mahindra Finance branch near you.

 Customised repayment schedules

Keeping in mind the needs of our customers, our
convenient, customised repayment schedules are
designed to guarantee maximum flexibility when it
comes to the repayment of our loans.

 In-depth knowledge:
Over the years, we have gathered an in-depth knowledge
of rural and semi-urban markets, which enables us to
devise products according to their specific needs. With
this asset, we’re able to provide our loans to many
deserving customers based on future repayment
capabilities rather than their current status.

 Relationship with Mahindra & Mahindra

48 | P a g e
 The parentage of the awe-inspiring Mahindra &
Mahindra Group and the close association with dealers
through out the country gives us an additional, exclusive
advantage.

 Socially inclusive business model

It is our constant endeavour is to develop skill sets at
grass-root levels. In keeping with that spirit, we provide
employment to more than 6,200 people from the bottom
of the income or social pyramids and help them grow.
This ensures that our employees are more empathetic
towards the customers we cater to.

 Large base of customers

And lastly, our greatest strength lies in our large and ever
growing base of over 10,00,000 satisfied customers.

Branches divided by area wise. There are 437 branches in

all over India, in which only 4 branches in Metro city, 89
branches in Urban & Semi urban and 334 branches in rural
areas.

49 | P a g e
 4
89

Metro Urban/Semiurban

334
Rural

Year-2009

Account features Fixed Deposit

50 | P a g e
Fixed Deposit

Savings & Loans’ Fixed Deposit accounts give the control

over the term of investment and provide a guaranteed
fixed interest rate good for both short and long term
investment purposes.
Fixed terms of Mahindra Finance have minimum time period
of 12 months, and maximum time period of 3 years with a
wide range of interest payment options.
Additional benefits:

 Security of a fixed interest rate

 Great interest rates
 Any individual can start with an investment of Rs.
10000.
 Choice of interest payment options
 Interest is calculated daily

The Mahindra Finance has started to accept fixed deposit

from public from 1st January 2009.

There are two scheme of Fixed Deposit of Mahindra

Finance.

 Non Cumulative (Half-Yearly Scheme)

51 | P a g e
Interest of principal amount will be providing as half-yearly
(after six months from deposited amount.)

 Cumulative Scheme
Interest of principal amount will be providing after maturity
date with principal amount.

The details of the Fixed Deposit scheme of Mahindra Finance

are given below.
1. Non Cumulative Half-Yearly Scheme:

Minimum Interest *#
Period (Months)
Amount p.a.

12 8.75%

Rs. 25,000 24 9.25%

36 9.75%

Cumulative Scheme:

Minimum Period Amount Interest* Effective

Amount (Months) Payable p.a. Yield p. a.**

Rs. 10,000 12 Rs. 10,900 9.00% 9.00%

52 | P a g e
 18 Rs. 11,430 9.25% 9.53%

24 Rs. 11,990 9.50% 9.95%

36 Rs. 13,310 10.00% 11.03%

 Senior Citizens / Shareholders / Employees will get an

additional rate of 0.25% per annum, Interest Compounded
Annually.
 Interest payment half yearly on 30th September and 31st
March only through ECS.

53 | P a g e
54 | P a g e
Corporate Fixed Deposit (FD)

The year 2008 took with it lot of uncertainty, losses, anguish

and frustration. It turned out to be the most turbulent and
eventful year in the history of Indian as well as global capital
markets. The year busted a few myths – such as Indian
markets being decoupled from the global ones, FIIs Inflows
are permanent and India will always grow at 9% Plus GDP
every year. Globally Risk, Innovation and Leverage went out
of the window and were replaced by safety and simplicity in
products.

The frontrunner of 2008 as far as different asset classes go

were, Government Bonds (10Yrs) and Gold which returned

55 | P a g e
around 21% and 27% respectively. And the losers were the
Stock Market and Crude Oil which shed almost 52% and 58%
respectively. The Rupee also shed more than 20% of its value
vis-à-vis the US Dollar. Real Estate prices across the country
in general, were lower by 15-20%. Bearish sentiments and
lack of investor’s confidence due to wild volatility, has
decreased the participation of investors in the primary and
secondary market.

This lead to a change in the India Incorporation’s fund raising

plans. In such a situation, India Inc is now approaching the
potential investors through fixed deposit (FD) schemes. This,
in turn, has changed investment avenues for retail investors.

In fact, Fixed Deposit Schemes are not new to India Inc.

Earlier, every major company had a FD scheme and it was
considered to be one of the main sources of fund raising.
However, this way of fund raising perished slowly as it
became easier for companies to raise funds through capital
market and also interest on FDs is a fixed rate and that has to
be paid in all circumstances.

Now the situation has totally changed. All the newspapers are
flooded with the advertisements by corporate houses inviting
public to entrust their savings with them. To make the deal
attractive, most of them are offering interest rates that are
significantly higher than bank deposits.

56 | P a g e
But, how attractive are these Corporate Fixed Deposit
schemes? Do them
Score over bank deposits? For many investors corporate FDs
can be lucrative substitutes for bank deposits. They not only
offer higher returns, but many of them also have facilities,
such as premature withdrawal, cumulative accrual of interest,
no TDS cut up to an interest income of Rs 5000 a year etc.

However, investors should know that bank deposits are

insured up to a maximum of Rs 1 lacs per customer per
branch and the way banks are regulated in India, it is difficult
for retail customers to lose their money. In contrast, corporate
deposits have no such insurance and the investor is solely at
the mercy of the company and its financial fate. Given this, it
makes sense to invest in corporate FDs that have high credit
ratings and are known for their financial soundness and
credible past performance. Though corporate FDs look riskier,
they carry higher interestrates.

Is equity investment the preferred option or the corporate

FDs?

FDs are relatively risk free as compared to the equity

investment and, in most cases, post-tax returns from FDs are
much higher than the tax-free dividend yields. The risk here,
however, is that of creditworthiness of a company. But, in

57 | P a g e
such cases, default applies to both debt and equity investment.

Investors are thus advised to go for well known companies

that have a strong and credible standing in the market. Unlike
a bank FD, where high interest rates usually dominate the
investment decision over the choice of bank, the integrity of
the company should be given the highest priority in case of
corporate FD.

Let us compare few Corporate FD’s with their Dividend

Yields

58 | P a g e
 Div.
Fixed Deposit Cumulative Share
Yiel
Rates (%) Yield (%) Price
d
1
Company 2 3 1 2 3
Yea (Rs) (%)
Name Year Year Year Year Year
r
HDFC 10.1 10.6
9.65 9.65 9.65 9.65 1505 2.1
Deposits 2 1
ICICI
10.2 11.3
Home 9.75 10 9.75 10.5 408 0.75
5 3
Finance
Mahindr 12.1
11 11.5 12 11 13.5 197 1.3
a Finance 6
TATA
10.3 11.5 12.8
Motors 10 10.5 11 147 1.7
8 2 3
Ltd
CNBC 11.4 12.7 14.1
11 11.5 12 71 -
TV 18 6 3 9
Inference:
From the above table we can easily interpret that there is a
huge difference between the dividend yields in Equity and
cumulative yields on the Fixed Deposit’s of the same
corporate. Still the choice for any investment should depend

59 | P a g e
 10000
12000
14000

0
2000
4000
6000
8000
0
50000
100000
150000
200000
250000
300000
350000

60 | P a g e
Apr-05 6154 Apr-05 120516
May-05 6715 May-05 130146
J un-05 7194 Jun-05 169857
Jul-05 7635 Jul-05 184882
Aug-05 7805 Aug-05 221636
Considerations etc

Sep-05 8634 Sep-05 226661

O ct-05 7892 Oct-05 179890
Nov-05 8789 Nov-05 162253
Dec-05 9398 Dec-05 227238
J an-06 9920 Jan-06 228734
Feb-06 10370 Feb-06 205424
Mar-06 11280 Mar-06
328126
Apr-06 12043 Apr-06 264827
May-06 10399 May-06
Robust CM Market Growth

297213
Jun-06 10609 Jun-06

Surge in F&O Market Volumes

223048
Jul-06

SENSEX – Hitting the all time high

10744 Jul-06 173385
Aug-06 11699 Aug-06
193871
Sep-06
12454
on the Individuals Risk Profile, Liquidity requirement, Tax
 0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000

61 | P a g e
Apr.05 195,962
May.05 208,375
Jun.05 271,242
Jul.05 308,160

Aug.05 372,301
Sep.05 399,750
Oct.05 433,651
Nov.05 395,845
Dec.05 523,803
Jan.06 487,580
Feb.06 492,664
Mar.06
734,842
Apr.06
737,832
May.06
742,390
Jun.06
556,797
Jul.06
477,255
Aug.06
469,665

OBJECTIVE OF SUMMER TRAINING:-

 IMPORTANCE AND EFFICIENT ROLE OFFINANCIAL
ADVISOR IN MODERN ERA IN THE LIGHT OF ILF&S
AND CFP.
People enlist the help of a financial planner because of the
complexity of performing the following:

 To finding direction and meaning in one's financial

decisions;
 To understanding how each financial decision affects
other areas of finance; and
 To adapting to life changes in order to feel more
financially secure.
The best results of working with a comprehensive
financial planner, from an individual client or family's
perspective are:

 To create the greatest probability that all financial goals

(anything requiring both money and planning to achieve)
are accomplished by the target date, and
 To have a frequently-updated sensible plan that is
proactive enough to accommodate any major unexpected
financial event which could negatively affect the plan,
and
 To make intelligent financial choices along the way
(whether to "buy or lease" whether to "refinance or pay-
off" etc.).
 Indian Capital & Financial
 Market Summary

62 | P a g e
  Just to sum it up, India has had a dream year as far
as capital markets are concerned, and of course we
believe, the best is yet to come !!!
 Rising Markets Driven by :
o Continued Surge in FII flows
o Increased primary mobilization by Mutual Funds
 Increased retail participation
 Primary market issuances continue to attract heavy
flows

63 | P a g e
 RESEARCH METHODOLOGY
RESEARCH DESIGN

The purpose of the methodology is the design the

research procedure this includes the overall design.
SAMPLING

SAMPLE SIZE: - 100

SELECTED AREA FOR SAMPLING: - under 10 km. away

from branch
SAMPLING PROCEDURE:-
Marketing research is the systematic gathering recording
and analyzing of data about problem relating to the
marketing of goods and services . . There researches are as
follows:-
Exploratory Research Design
It is also known as qualitative research, it seeks to
discover new relationship it aims a defining the main
problem and including the identification of the relevant
variables and the possible alternative solutions it can
further be divided into three parts.

64 | P a g e
Conclusive Research Report :-

It is also known as quantities research, it is designed

to help executives of action that is to make decision.

1. Data Collection Method

The most important and necessary thing is collection

accurate data to achieve useful reseals.
1. Sampling
2. Questioning

SAMPLING:-

UNIVERSE: CHANDIGARH
SAMPLE SIZE: - 100
SELECTED AREA FOR SAMPLING: - under 10 km. away
from branch.
SAMPLING PROCEDURE:-
Marketing research is the systematic gathering , recording
and analyzing of data about problem relating to the
marketing of goods and services
Method Of Communication Under Questionnaire Studies

65 | P a g e
 Their different methods of communication are
available:-
(a) Personal Interviews
Under this the interviews obtains information’s from
respondent in face to face meeting.

(b) Telephonic Interview

It is similar to that of personal interviews, but the

communication bit been interviewer and respondents is
via telephone instead of face to face meeting or direct
personal contact

(c) E-Mail
Under this method the questionnaire are e-mailed to the
respondent who also return them by e-mail some time.
Unstructured questions and difficult the customer are not
very well aware are more effectively handless by personal
interviews.

(d ) Personal interviews It is most versatile and flexible of

the three communication methods. Unstructured questions
and long and difficult questionnaire or the questions

66 | P a g e
about which the customer are not very well aware are
effectively handled by of personal interviews. During the
interview itself he presence of interviewer permits flexibility
in procedure. The questioning can be adapted to saturation
further explanation or clarification can be given to the
respondent for sorting another greatest advantage of using
personal interview in that projects an be stopped or altered
at any point during the study which is not possible with
mail study.

2. Information’s Obtained
Both quality and quantity of information obtained are
important most commercial research organization operate on
the assumption that questions can be handled best, by
personal interviews, next best by mail least by telephone.
3. Influence Of Interviews
The presence of the interviewer undoable has some effect on
accuracy of the data obtained the effect may be good or bad
or both the interaction between interviewer and respondent
may bias the respondent replies and the personal interest and

67 | P a g e
 attitude of the interviewer will cause them to interpretative
the responses differently.
3. Control Of Sample
The largest difference among the three method of
communication is in the about control they permit over the
sample from which information are collected. A method is
weak If it doesn’t permit objective designation of their
individual from whom data are obtained . Every type of
customer is to be located and interviewed

68 | P a g e
69 | P a g e
 GRPHICAL

PRESENTATION

OF DATA

70 | P a g e
 Product
Portfolio
Distribution
Distribution of
of Investment
Investment Banking
Banking
Financial
Financial Products
Products

Portfolio
Portfolio Management
Management Loan
Loan Syndication
Syndication

IIL
Institutional
Institutional Business
Business Retail
Retail Broking
Broking

Commodity
Commodity Trading
Trading Online
Online Trading
Trading

Insurance
Insurance Broking
Broking

71 | P a g e
 Indian Capital & Financial
Market Summary
FII Investments

12 10.7
9.6
10
8.1

8 6.8
FII Investments ($

4 3

2 0.8
bn)

0
CY 2001 CY 2002 CY 2003 CY 2004 CY 2005 CY 2006

Mutual Fund Industry

60 52

50

40 32
Total AUM ($

23.1
30
18.2

20
bn)

10

0
FY 02-03 FY 03-04 FY 04-05 FY 05-06

72 | P a g e
 IL&FS Investsmart

An Introduction
One of the leading financial services companies in India
Focused on retail broking (including margin financing), distribution of financial
products and IPO financing
Significant growing presence in Merchant Banking, & Institutional Brokerage
Businesses

Pan India presence with a network of 259 outlets (including business

associates) spread across 124 major cities in India
Total Income in FY 06 of Rs. 2170 mn. and net profit of Rs. 691 mn.
Share holding pattern

IL&FS
FIIs & Public
30%
33%

SAIF
10%
E*TRADE
27%

73 | P a g e
 Promoter History -
IL&FS
Promoted by Infrastructure Leasing and Financial Services
Ltd
Shareholders of IL&FS include SBI, ORIX-Japan, IFC-
Washington, Credit Commercial de France, Indivest Pte
Ltd(an Affiliate of Govt. of Singapore)
Business operations of the promoter
Infrastructure and Development Services : Sectors such as Surface
Transport and Transportation Systems,Water Supply, Hydro Power,
Special Economic Zone, Port and Environment & Social Management
Group.
Investment Banking : Strategy, Asset Financing, Corporate Advisory,
Capital Markets, Project Financing
Made contributions to the following trusts: IL&FS Infrastructure Equity
Fund, IL&FS Investment Trust –I, II, IV
The Indian Innovation Award-2005: Awarded to IL&FS by
President of India

Strategic
Partner
74 | P a g e
 E*TRADE

Pioneer in the field of Internet Broking

Global Leader

Covers 3.5 million customers and 2.7 million households

worldwide

Presence in over 12 countries

Superior Technology Platform

Delivering a diversified and integrated portfolio of innovative,

customer-focused brokerage and banking products and
services to Retail, Corporate and Institutional Clients

Key Milestones

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 Acquired
Acquired
Apeejay
Apeejay
Securities
Securities
Completed
Completed
business
business
restructuring
restructuring
Received
Receivedthethe
Best
Best
Performing
Performing
National
National
Financial
Financial
Advisor
AdvisorAward
Award
ETM
ETM as Strategic for 2006by
as Strategic for 2006 by
Investor
Investorand CNBC
and CNBC
Commenced
Commencedequity
equity SAIF
SAIFas
asfinancial
financial Crossed
broking on BSE partner Crossedover
over
broking on BSE Merchant partner 250 retail
Merchant 250 retail
ORIX & K Raheja Banking and Commenced outlets
ORIX & K Raheja Banking and Commenced outlets
joined
joinedas
asnew Debt
new Debton
onNet
Net commodity
commodity spanning
spanning125125
shareholders merges with IIL broking Indian cities
shareholders merges with IIL broking Indian cities

1998-99 2000-01 2003-04

2005-06

1999-2000 2001-02 2004-05

2006-07

Commenced
First
Firstfull
fullyear Commenced
year derivative
ofofequity derivative
equity broking
broking brokingononNSE
brokingon NSE
on
NSE Launched
NSE Launched
Acquired
Commenced investment
investment Acquired44 Completed IPO
Commenced branches
retail advisory
advisory branchesofofTata
Tata Completed IPO
retail TD
operations products TDWaterhouse
Waterhouse Completed
CompletedGDR
GDR
operationsat products
at
Bangalore, Registered Acquired Strategic
Bangalore, Registeredas
as Acquired Strategic
Insurance investment
Chennai
Chennai&& Portfolio
Portfolio Insurance investmentinin
Training
Training Business ESOPDirect
Kolkata Manager Business ESOP
Kolkata Manager Direct

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 Business Model
Universal Broker
Client category

Portfolio
Managemen
t Services
Investment
Counseling
Portfolio
Advisory
Transaction
and

Distribution
Transaction
Products
and
Distribution
Products

IIL uses the above Model to acquire and service clients

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 Our Retail

Offerings
ü     Full Service offering across asset class

Investment
Investment
Equities
Equities Advisory
Advisory

Portfolio
Portfolio
Derivatives
Derivatives Management
Management

IIL
Distribution
Distribution of
of
Commodities
Commodities Financial Products
Financial Products

Depository
Depository Training
Training Services
Services
Services
Services

Insurance
Insurance Broking
Broking

AAComplete
Completesuite
suiteof
ofproducts,
products,offering
offering
wholesome
wholesomeinvestment
investmentSolutions
Solutions

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 Chosen as
The Best Performing
National Financial
Advisor – Retail Segment
at the CNBC TV 18
National Financial
Advisor Award 2006

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 Product Offering
Institutional Business
Investment
Investment
Banking
Banking

Institutional
Institutional IIL Institutional
Institutional
Debt
Equity
Equity DebtBroking
Broking

Institutional
Institutional Business
Business
has a significant growing presence in the institutional capital markets in In

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 Investment
Banking
Performance
Parameters
Raised over Rs 14 bn from capital market through IPOs and
follow-on offerings
Mobilised around 1 mn IPO applications
Acted as Advisors to 9 ESOP mandates
Executed transactions across a spectrum of industries
including Logistics, Auto Ancillary, Construction, Food
Processing, Media, Software, Paper, Textiles, Steel, Sugars
and Shipping to name a few.
Ranked 5th in the league of Investment Bankers in No. of
Book Built IPO’s executed for the year
Product reach extended with successful completion of a few
M&A transactions, GDR advisory mandates and Private
Equity transactions

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 Investment
Banking
Execution Capabilities
Initial public
Offerings

ESOP
Certifications Buybacks

Management
of

Private Equity Rights Issues

Syndications

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 Advisory
Assignments

ANALYSIS
OF
FINDING
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LIST OF PROJECTS ASSIGNED WITH A BRIEF
DISCRIPTION
1. KNOWLEDGE OF THE VARIOUS DEPARTMENTS
IN THE COMPANY.
The first project is to know the no. of departments
functioning in the company. The various divisions have
their specific functioning in the run of the company. We
visited each and every department personally and got
familiar with the working environment, culture, style, etc
of that department.
2. KNOWLEDGE OF THE PLANT LAYOUT OF THE
DIVISION.
In MMFSL all the functioning departments are
interlinked with each other in such a way that each
department is in the easy reach of the other.
3. KNOWLEDGE OF THE FUNCTIONS /ROLE OF
THE VARIOUS DEPARTMENTS IN THE
COMPANY.
There are seven departments in the company and they are
having very important role in the company when
function in the coordination.

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 4. KNOWLEDGE OF THE VARIOUS SECTIONS OF
FINANCE DEPARTMENT.
There are six sections in the Finance department of
MMFSL. These are explained in detail above.
5. KNOWLEDGE OF THE FUNCTIONING OF THE
VARIOUS SECTIONS OF HUMAN RESOURCE.
Functions of various departments are explained in detail
above.

PARTITIONING THE PROBLEM INTO TASK AND

SUBTASKS
1. HAVING THE THEORETICAL KNOWLEDGE OF
THE PROBLEM.
A.Take an overview of the various related literatures.
B.Search the various magazines containing the
literatures related to the problem.
C.Search on various websites.
2. HAVING THE PROBLEM DISCUSSED WITH
ADVISOR.
A.Discuss the problems theories with advisor.
B.Discuss the ways to overcome the problem.
C.Find out the root cause of the problem.
3. KNOWING THE WAYS TO COLLECT DATA TO
SOLVE THE PROBLEM.
A.Select the appropriate method to collect the data.

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 B.Decide the cost and time to be spent on the methods
to collect the data.
C.Decide the area from where data have to be
collected.
4. DECIEDING THE TOOLS TO BE APPLIED TO
COLLECT THE DATA.
A.Search the appropriate tool for collecting the data.
B.Prepare the tool for collecting the data.
C.Testing the tool.
D.Discussing the appropriateness of the tool with
advisor.
5. DATA COLLECTION FROM DIFFERENT
DEPARTMENTS.
A.Visit the market and collect the data according to the
method decided and apply the tool prepared.
B.Visit the some of the customers and collect the data as
above.
C.Short out the data collected.
D.Discuss the data collected with the advisor.
6. DATA ANALYSIS BY VARIOUS METHODS OF
NUMERICS.
A.Analyze the data by using various methods of
statistics.
B.Apply the SPSS to the data collected.
C.Prepare the graph for visual analysis.
D. Prepare the pie charts for the visual analysis of the
collected data.

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SHEDULE OF THE TASKS OVER THE TRAINING
PERIOD
HAVING THE THEORETICAL KNOWLEDGE OF
THE PROBLEM. (12th to 20th June)
a. Take an overview of the various related
literatures.
b. Search the various magazines containing the
literatures related to the problem.
c. Search on various websites.
HAVING THE PROBLEM DISCUSSED WITH
ADVISOR. (21st June to 29th June)
a. Discuss the problems theories with advisor.
b. Discuss the ways to overcome the problem.
c. Find out the root cause of the problem.
KNOWING THE WAYS TO COLLECT DATA TO
SOLVE THE PROBLEM.(30th June to 8th July)
a. Select the appropriate method to collect the
data.
b. Decide the cost and time to be spent on the
methods to collect the data.
c. Decide the area from where data have to be
collected.
DECIEDING THE TOOLS TO BE APPLIED
TOCOLLECT THE DATA. (9th to 17th July)
a. Search the appropriate tool for collecting the data.
b. Prepare the tool for collecting the data.
c. Testing the tool.

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 d. Discussing the appropriateness of the tool with
advisor.
DATA COLLECTION FROM DIFFERENT
DEPARTMENTS. (18th to 22th July)
a. Visit the Russian department and collect the data
according to the method decided and apply the tool
prepared.
b. Visit the jaguar department and collect the data as
above.
c. Short out the data collected.
d. Discuss the data collected with the advisor.
DATA ANALYSIS BY VARIOUS METHODS OF
NUMERICS. (23rd to 27th July)
a. Analyze the data by using various methods of
statistics.
b. Apply the SPSS to the data collected.
c. Prepare the graph for visual analysis.
d. Prepare the pie charts for the visual analysis of the
collected data.

NEEDED TOOLS AND EQUIPMENTS

Questionnaire:-
The questionnaire is a list of questions to be asked from the
respondents. It also contains a suitable space where the
answers can be recorded.

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The term questionnaire usually refers to a self administered
process where by the respondent himself reads the questions
and records his answers without the assistance of an
interviewer.

Schedules:-
Schedule is that name usually applied to a set of questions
which are asked and filled in by an interviewer in a face to
face situation with another person.

Projective techniques:-
Projective techniques (or whatare sometimes called as indirect
interviewing techniques) for the collection of data have been
developed by psychologists to use projections of respondents
for inferring about underlying motives, urges, or intentions
which are such that the respondent either resists to reveal
them or is unable to figure out himself.

Content analysis:-
Content analysis consist of analyzing the content of
documentry materials such as books, magazines, newspapers
and the contents of all other verbal materials, which can be
either spoken or printed.

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 VARIOUS METHODS OF ANALYSIS/STATISTISTICAL
TOOLS
1. MEAN
2. MEAN DAVIATION
3. STANDARD DAVIATION
4. GRAPHICAL ANALYSIS
5. PIE CHART ANALYSIS
Methods of quantification of skill levels:-
1. Untrained- No experience of skills/ tasks/ work
instruction/package.
2. Learner- Being taught skills/tasks/work
instruction/package.
3. Practitioner- can carry out the skills/ tasks :-

A. Safely
B. To correct quality standards first time.
C. Without assistance.
D.To 1.5 times the standard cycle time i.e. skill not
upto speed.
4. Developer- Can improve the skill/ tasks:-
A. Safely
B. To correct quality standards first time.
C.Work to the standard cycle time

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Analysis of results
12th June to 20th 21th June to 29th
June June

Task Accomplished Accomplished

accomplishment

Degree of 75% 60%

accomplishment of
task
Unexpected Unavailability of Busy schedule of
difficulties data in newspapers. the advisor

Attempted solutions Collected data from Taken schedule

other sources like from advisor
web.
Deviations from the 25% 40%
planned schedule

Experience gained New information Known the various

about loaning organizations
strategies providing
certification for
financial planner or
financial advisor.
Techniques learned Collection of Control technique.
primary data.

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 30th June to 8th 9th July to 17th July
July

Accomplishment Accomplished Accomplished

Degree of 50% 50%

accomplishment of
task
Unexpected Time lack, money Time lack, money
difficulties lack. lack.

Attempted solutions Used precise and Used cheaper tools.

concise methods.

Deviations from the 50% 50%

planned schedule

Experience gained Knowledge of Knowledge of

various methods of various tools of data
data collection. collection.
Techniques learned Practical Application of
knowledge of questionnaires and
survey method. schedules.

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 18th July to 22nd 23rd July to 27th
July July

Task Accomplished Accomplished

accomplishment

Degree of 80% 70%

accomplishment of
task
Unexpected Departments Unavailability of
difficulties unknown SPSS

Attempted solutions Requested for the Searched the

guide. software from web
and collected the
knowledge to
operate it.
Deviations from the 20% 30%
planned schedule

Experience gained Collected the Knowledge of

knowledge of various numeric
various departments. techniques.

Techniques learned Notification and SPSS

observation

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CONCLUSION:-

More here in this project need huge

investment than any other organization and
confidentially factor is also there too much
extended. Although extent for the betterment
of the office in finance sector its executives
are working hard and trying to serve in the
best possible manor with their colleges. They
all are very qualified and experienced.

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LIMITATION

METHODOLOGY AND PROBLEMS DURING THE

TRAINING

Methods for collecting data were:

 Face to face questioning from the head of the department

and the subordinates working over there.

 From the written matter available in the organization and

the past records.

Problems
 The time given for the training was too short to

undertake the project thoroughly.

 Few of the technical words being used were difficult to

understand.

 Confusion in the selection of matters because of too vast

data and information’s.

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  BIBLOGRAPHY:-

BOOKS AUTHOR

1. Financial Management I.M. Pandey

2. Research Methodology C.R.Kothari

3. Consumer behaviour Shujan naiyyar

INTERNET SITES

1. www.mahindrafinance.com

2. www.google.com

3. www.mahindra&mahindraltd.com

NEWS PAPER

1. Hindustan times

2. Dainik Jagran

3. Times of India

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Financial Advisor Questionnaire

Firm Name:______________________________

Date:______________

1. Are you held to a fiduciary standard in all dealings with

me and my financial

affairs? In other words, are you bound to always act in my

best interest?

Yes _____ No_____

2. Do you forego any type of commission based

compensation in favour of receiving

All compensation from fees that are fully disclosed up

front in dollar terms?

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Yes _____ No_____

3. Do you provide full service, comprehensive financial

planning services as well as

investment advisory services?

Yes _____ No_____

4. If you provide full service comprehensive financial

planning services, is this

performed by individuals that have obtained the Certified

Financial Planner

(CFP®) certification?

Yes _____ No_____

5. Can you provide me with a written disclosure detailing

any disciplinary history

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for you and your firm?Yes _____ No_____

6. Do you disclose all conflicts of interest, both actual and

potential that exist or may

exist in my relationship with you?

Yes _____ No_____

7. If yes to number six, how do you disclose actual and

potential conflicts of interest?

To me?

__________________________________________________

__________

I affirm that each of these questions has been answered

honestly and truthfully.

Name of designated company representative:

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Title: Date

Projected by Sunil Kumar giri

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