Ch.No.

Introduction

Mahindra and Mahindra Limited (M&M)

Is an Indian multinational automobile manufacturing corporation headquartered in
Mumbai, Maharashtra, India. It is one of the largest vehicle manufacturers by production
in India and the largest manufacturer of tractors across the world. It is a part of Mahindra
Group, an Indian conglomerate.

It was ranked as the 10th most trusted brand in India, by The Brand Trust Report, India
Study 2014.  It was ranked 21st in the list of top companies of India in Fortune India
500 in 2011.

Its major competitors in the Indian market include Maruti Suzuki, Tata Motors, Ashok

Leyland, Toyota, Hyundai, Mercedes-Benz and others.

The US $ 7.1 billion Mahindra group is among the top 10 industrial houses in India.
The company was set up in 1945 by K.C. Mahindra and Guam Mohammad return
Pakistan as a manufacturer under license of the famous willys jeep USA in Ludhiana as
Mahindra and Mohammed. Later, after the partition of India, Malik Ghulam Mohammad
returns to Pakistan and become first finance minister of Pakistan. Hence, the name was
change from “Mahindra & Mohammad” to “Mahindra & Mahindra “in 1948.

The Mahindra group is a large industrial conglomerate in India, with operations in the
automotive, farm equipment, financial services, trade and logistics, auto ancillary, after
market, IT and infrastructure sectors. It employs over 1, 00,000 people across the globe.
It is considered to be one of the most reputable Indian industrial houses, with the market
leadership in utility vehicles as well as tractors in India. Mahindra has recently made an
entry in the two-wheeler segment which will see the company emerge as a full range
player with a presence in almost every segment of the automotive industry.

Mahindra and Mahindra ltd is a flagship company of the Mahindra group. It was
set up in 1945 to make general purpose utility vehicles for the Indian market and soon to
start manufacturing agricultural tractors and light commercial vehicles (LCV). Mahindra
[1]
and Mahindra ltd. operates through two main operation division, the automotive division
for the manufacturing of utility vehicles, LCV and three wheeler and the farm equipment
division manufacturing. 3g farm equipment and tractors. All other business is controlled
through various subsidiaries. JV’s and other group companies.

Its product are Scorpio range, Xylem range, bolero range, commander range,
alternative fuel range (electric, CNG and bio-fuel), LCV, army range, export range, maxx
range, three wheelers and tractors.

Mahindra & Mahindra ltd is Flagship Company of the Mahindra group. It was
setup in 1945 as ‘Mahindra and Mohammed’ and started its operation in Ludhiana.
Initially it focused on manufacturing general purpose utility vehicle for the Indian
market. Then it got into manufacturing agricultural tractors and light commercial vehicles
(LCV). At present, M&M is the leader in the utility vehicle (UV) segment in India with
its flagship UV, SCORPIO. Mahindra and Mahindra operate through two main operating
divisions.

1. Automotive division for the manufacturing of utility vehicles, LCV and three
wheelers.
2. Farm equipment division for the manufacturing of tractors and other farm
equipment.

M&M automotive divisions manufacturers a wide range of vehicles including

MUV, LCVs and three wheelers. It offers around 20 models including new generation
utility vehicle like Scorpio and bolero. Its product consists of bolero range pick-up range,
CL range MM range, commander range, hard top range, voyager range, LCV, alternative
fuel range, army range export range, maxx range, three wheelers, tractors.

[2]
 Ratio Analysis:-
Introduction

Fundamental analysis has a very broad scope. One aspect looks at the general
(qualitative) factors of a company. The other side considers tangible and measurable
factors (quantitative). This means crunching and analyzing numbers from the financial
statements. If used in conjunction with other methods, quantitative analysis can produce
excellent results.

Ratio analysis isn't just comparing different numbers from the balance sheet, income
statement and cash flow statement. It's comparing the number against previous years,
other companies, the industry or even the economy in general. Ratios look at the
relationships between individual values and relate them to how a company has performed
in the past, and how it might perform in the future.

For example, current assets alone don't tell us a whole lot, but when we divide them
by current liabilities we are able to determine whether the company has enough money to
cover short-term debts.

In this tutorial, we'll show you how to use ratio analysis to analyze financial reports.
Comparing these ratios against numbers from previous years, other companies, industry
averages and the economy in general can tell you a lot about where a company might be
headed. Valuing a company is no easy task. This tutorial will shed some light on how it
can be done and, ultimately, help you to make more informed choices as an investor.

Problems of organization-

Highly under-productive, militantly unionized, and bloated workforces. The company

had over the years been rather lenient towards running the plants and had the pressure of
union demands. The work culture was also reportedly very unhealthy and corruption was
widespread in various departments.
[3]
Alarmed at the plant's dismal condition, Chairman Keshub Mahindra tried to address the
problem by sacking people who allegedly indulged in corrupt practices. M&M also tried
to implement various voluntary retirement schemes (VRS), but the unions refused to
cooperate and the company was unable to reduce the labor force.

During this period, M&M was in the process of considering the implementation of a
Business Process Reengineering (BPR) program throughout the organization including
the manufacturing units. Because of the problems at the Igatpuri and Kandivili plants,
M&M decided to implement the program speedily at its manufacturing units. 

Need of Ratio Analysis

Effective planning and financial management are the keys to running a financially
successful small business. Ratio analysis is critical for helping you understand financial
statements, for identifying trends over time and for measuring the overall financial state
of your business. In addition, lenders and potential investors often rely on ratio analysis
when making lending and investing decisions.

Versatility and Usefulness

Ratios are critical quantitative analysis tools. One of their most important functions lies in
their capacity to act as lagging indicators in identifying positive and negative financial
trends. The information a trend analysis provides allows to you to make and implement
ongoing financial plans and, when necessary, make course corrections to short-term
financial plans. Ratio analysis also provides ways for you to compare the financial state
of your business against other businesses within your industry or between your business
and businesses in other industries. The sheer numbers of available financial ratios makes
it important to research and choose ratios most applicable to your business.

Common Size Comparison Ratios

Balance sheet common size ratios are important for making comparisons of assets and
liabilities. These financial ratios focus on calculating each asset on the balance sheet as a
percentage of total assets and each liability as a percentage of total liabilities plus owner’s
equity. Calculating and comparing common size ratios for corresponding reporting

[4]
periods in two consecutive years helps you identify trends such as decreasing cash and
increasing accounts receivable balances. Financial planning goals might then include
strengthening your accounts receivable collection policy and tightening credit-granting
guidelines.

Turnover and Efficiency

Operating expense and turnover ratios are critical for helping you assess how efficiently
your business is utilizing assets and managing liabilities. An operating expense ratio
compares operating expenses such as rent, inventory purchases and advertising to sales
revenue. While a low ratio indicates your business is managing expenses successfully, a
high ratio signals a need to course-correct ongoing financial plans. Turnover ratios
typically need deeper analysis, with both extraordinarily high and low ratios indicating a
cause for concern. For example, a high inventory turnover ratio indicates a need to review
the inventory budget, because your business could be losing sales due to frequent stock-
outs.

Cash and Liquidity

Cash and liquidity ratios help determine whether you can afford to invest in capital assets
or long-term business growth. A current and working capital ratio both are useful for
assessing whether your business has enough liquidity to pay for daily operating and
short-term debt expenses. For instance, a current ratio compares current assets to current
liabilities. A ratio of 3 to1 indicates your business is sufficiently liquid. At this point, you
can begin incorporating capital or market investments into your financial plan.

[5]
 Ch.No.2

OBJECTIVES

The objectives of the project “Ratio Analysis” at Mahindra and Mahindra

ltd. Are as follows;

1. To study the profitability of M&M with help of profitability ratio.

2. To study the turnover of M&M with help of turnover ratio.
3. To study comparative analysis of Ratio in five year.
4. To analyze Ratio position of M&M ltd.

[6]
 Ch.No.3

INDUSTRY PROFILE:-

TOP 5 COMPANIES IN INDIA

1. Tata Motors:-

Established in the year 1945, Tata Motors is Asia's largest and

world's 17th largest automobile manufacturing company. Headquartered in
Mumbai, they have their state of the art manufacturing units and assembly units
spread across in 6 locations in India and 4 countries worldwide. With 70 years of
experience, they manufacture cars, vans, trucks, buses, coaches, construction
equipments and military trucks and other vehicles. They are the leaders in almost
every vehicle segment in domestic market. They have international presence in
UK, Thailand, South Africa, Indonesia, South Korea etc through their
subsidiaries, associate companies and acquired automobile brands.
2. Mahindra & Mahindra Ltd

M&M was founded in pre-independence era in the year 1945 at

Ludhiana, Punjab. They are the world’s largest tractor manufacturer and India’s
second largest vehicle manufacturer. They are India’s top UV manufacturer with
a variety of cars in this segment. Their other products are commercial vehicles,
Trucks, Tempo, Pickups, Bus, Two wheelers, Military vehicles, tractors and other
farm equipments. They have annual turnover of more than 40 billion and have
its presence in almost every part of India, both villages and cities. Apart from
domestic market, they have tied up with many international companies and sell
their products in many countries worldwide.
3. MarutiSuzuki
Maruti started its journey in the year 1982 in Gurgaon with
manufacturing of its iconic car - Maruti 800. They have been evolved in
technology in creating cars for Indian conditions with international standards.
Their popular passenger cars are Alto, WagonR, Omni, Estilo, Ertiga, Ritz, Eeco,
A-star, Swift, Swift DZire, SX4 and recently launched Celerio. They have two
manufacturing facilities, one in Gurgaon and one in Manesar with total annual
production capacity of 14,50,000 vehicles.
4. Hero Moto Corp Ltd
Hero was established in the year 1982 as a joint venture between
Hero Cycles, India and Honda Motors, Japan. They are India's largest two
[7]
 wheeler manufacturer. They sell more than one million units of their most trusted
bike -“Splender” per year. They have four manufacturing units equipped with
all type of advanced machineries spread across in Haryana and Gurgaon. They
have received many awards for their quality work in automobile industry
5. Bajaj Auto Limited

Founded in the year 1930, Bajaj is a leading brand of two-wheelers and three-
wheelers vehicles in India. Their flagship product “Bajaj Chetak Scooter” had ruled Indian
Market for over a decade. They are the leaders in India three-wheelers (Auto - Rickshaw). They
ventured into bike segment in the year 2001 with launch of its bike - “Pulsar”. They are
constantly upgrading their bikes with latest technology and engines, making them stand apart in
the competition. They have three manufacturing plants, two in Maharashtra and one in
Uttaranchal which are equipped with latest machineries and skilled workforce.

[8]
 Company Profile:-

Mahindra & Mahindra Limited

Type Public

Traded as BSE: 500520
BSE SENSEX Constituent

Industry Automotive

Founded 1945 (Ludhiana)

Headquarters Mumbai, Maharashtra, India

Area served Worldwide

Key people Anand Mahindra (MD)

Products Automobiles, commercial vehicles, two-wheelers

Revenue  ₹691 billion (US$10 billion) (2014)

Net income  ₹41 billion (US$620 million) (2014)

Total assets  ₹712 billion (US$11 billion) (2014)

Number of 34,612 (Mar-2015)

employees

Parent Mahindra Group

Website www.mahindra.com

Founder The two brothers, J.C Mahindra and C.K Mahindra and
Guam Mohammed.

[9]
Country India

Year of establishment October 2, 1945

Listing and its code NSE;M&M;BSE;500520

Plants Mumbai

Akruli road, kundivli(east)

Mumbai 400 101

Tel.:+(91)-(22)-28874601

Nasik

89,MIDC road no.17

Satpur, Nasik 422 007

Tel.:+(91)-(253)-2351496

Mouje Talegaon

Taluka-Igatpuri

Nasik 422 403

Andhra Pradesh

Near bidder, “T” junction

Zaheerabad 502 220

Andhra Pradesh

Tel.:+(91)-(8451)-282285/223

Website www.mahindra.com

Mahindra & Mahindra ltd.

[10]
 M&Ms automotive division is in the business of manufacturing and marketing
utility vehicle and LCVs with total sale turnover of around 4600 Crores is the leader in
this segment, with a market share in excess of 50 percent. M&M automotive division has
four manufacturing plants.

Scorpio is M&Ms first indigenously developed sports utility vehicle launched in

June 2002 has been universally acclaimed. Scorpio is declared ‘car of the year’ by
CNBC auto car BBC wheels and business standard motoring in the year 2003. The
company’s automotive division also exports its products to several countries in Africa,
Asia, European & Latin American countries.

In Maharashtra, its plant in Nasik and Mumbai manufacturing multi-utility vehicles,

and IC engines are produced at the Igatpuri plant. Light commercial vehicles and three
wheelers are manufactured at the company’s plant at zaheerabad in Andhra Pradesh. At
Igatpuri, having 400000 sq, mtr. Land with 46700 sq,mtr. Build up area, following types
of the IC basic engines with 78 variants, are manufactured with total 871 employees.

History-

Mahindra & Mahindra was set up as a steel trading company in 1945 in Ludhiana as
Mahindra & Mohammed by brothers K.C. Mahindra and J.C. Mahindra and Malik
Ghulam Mohammed. After India gained independence and Pakistan was formed,
Mohammed immigrated to Pakistan. The company changed its name to Mahindra &
Mahindra in 1948. It eventually saw business opportunity in expanding into
manufacturing and selling larger MUVs, starting with assembly under license of
the Willys Jeep in India. Soon established as the Jeep manufacturers of India, the
company later commenced manufacturing light commercial vehicles (LCVs) and
agricultural tractors. Today, Mahindra & Mahindra is a key player in the utility vehicle
manufacturing and branding sectors in the Indian automobile industry with its
flagship Mahindra XUV500 and uses India's growing global market presence in both the
automotive and farming industries to push its products in other countries.

Over the past few years, the company has taken interest in new industries and in foreign
markets. They entered the two-wheelerindustry by taking over Kinetic Motors in

[11]
India. M&M also has controlling stake in REVA Electric Car Company and acquired
South Korea's SsangYong Motor Company in 2011. In the 2010-11 M&M entered in
micro drip irrigation with the takeover of EPC Industries Ltd, Nashik.

Opration-

Mahindra & Mahindra, branded on its products usually as 'Mahindra',

produces SUVs, saloon cars, pickups, commercial vehicles, and two wheeled motorcycles
and tractors. It owns assembly plants in India, Mainland China (PRC), the United
Kingdom, and has three assembly plants in the United States. Mahindra maintains
business relations with foreign companies like Renault SA, France.

M&M has a global presence and its products are exported to several countries. Its global
subsidiaries include Mahindra Europe based in Italy, Mahindra USA Inc., Mahindra
South Africa and Mahindra (China) Tractor Co. Ltd.

Mahindra started making passenger vehicles firstly with the Logan in April 2007 under
the Mahindra Renault joint venture. M&M will make its maiden entry into the heavy
trucks segment with the Mahindra Truck and Bus Division, the joint venture
with International Truck, USA.

Mahindra produces a wide range of vehicles including MUVs, LCVs and three wheelers.
It manufactures over 20 models of cars including larger, multi-utility vehicles like
the Scorpio and the Bolero. It formerly had a joint venture with Ford called Ford India
Private Limited to build passenger cars.

At the 2008 Delhi Auto Show, Mahindra executives said the company is pursuing an
aggressive product expansion program that would see the launch of several new
platforms and vehicles over the next three years, including an entry-level SUV designed
to seat five passengers and powered by a small turbodiesel engine. True to their word,
Mahindra & Mahindra launched the Mahindra Xylo in January 2009, and as of June
2009, the Xylo has sold over 15000 units.

Also in early 2008, Mahindra commenced its first overseas CKD operations with the
launch of the Mahindra Scorpio in Egypt, in partnership with the Bavarian Auto Group.
This was soon followed by assembly facilities in Brazil. Vehicles assembled at the plant

[12]
in Bramont, Manaus, include Scorpio Pik Ups in single and double cab pick-up body
styles as well as SUVs.

Mahindra planned to sell the diesel SUVs and pickup trucks starting in late 2010 in North
America through an independent distributor, Global Vehicles USA, based in Alpharetta,
Georgia. Mahindra announced it will import pickup trucks from India in knockdown kit
(CKD)form to circumvent the Chicken tax. CKDs are complete vehicles that will be
assembled in the U.S. from kits of parts shipped in crates. On 18 October 2010, however,
it was reported that Mahindra had indefinitely delayed the launch of vehicles into the
North American market, citing legal issues between it and Global Vehicles after
Mahindra retracted its contract with Global Vehicles earlier in 2010, due to a decision to
sell the vehicles directly to consumers instead of through Global Vehicles. However, a
November 2010 report quoted John Perez, the CEO of Global Vehicles USA, as
estimating that he expects Mahindra’s small diesel pickups to go on sale in the U.S. by
spring 2011, although legal complications remain, and Perez, while hopeful, admits that
arbitration could take more than a year. Later reports suggest that the delays may be due
to a Mahindra scrapping the original model of the truck and replacing it with an upgraded
one before selling them to Americans In June 2012, a mass tort lawsuit was filed against
Mahindra by its American dealers, alleging the company of conspiracy and fraud.

Mahindra & Mahindra has a controlling stake in Mahindra Reva Electric Vehicles. In
2011, it also gained a controlling stake in South Korea's SangYong Motor Company.

Mahindra has launched its relatively heavily publicised SUV, XUV 500, code named as
W201 in September 2011. The new SUV by Mahindra has been designed in-house and it
is developed on the first global SUV platform that could be used for developing more
SUVs. In India, the new Mahindra XUV 500 comes in a price range between Rs 11.40
lakh to Rs 15 lakh. The company is expected to launch 3 products in CY'15 (2 SUVs and
1 CV) and an XUV 500 hybrid. M&M’s two wheeler segment will launch a new scooter
in Q1FY'15. Besides India, the company also targets Europe, Africa, Australia and Latin
America for this model. Mahindra President Mr. Pawan Goenka stated that the company
plans to launch six new models this fiscal. The company launched CNG version of its
mini truck Maxximo on 29 June 2012. A new version of Verito in diesel and petrol

[13]
options was launched by the company on 26 July 2012 to compete with Maruti's Dzire
and Toyota Kirloskar Motor's Etios.

On 30 July Mahindra released sketches of a brand new compact SUV called the TUV300
(pronounced: TUV three double o) slated to be launched on September 10, 2015. The
TUV300 design takes cues from a battle tank and uses a downsized version of the
mHawk engine found on the XUV500, Scorpio and some models of the Xylo. This new
engine has been christened as the mHawk80.

VISION & MISSION :-

VISION:

To create a fully collaborative environment in which suppliers can deliver

exactly what the company needs it, and at a competitive cost.

MISSION:

To create India’s largest automobile and automobile –related products

distribution network by providing dealers and customers with the largest choice of
unique world –class products and services .

Ch.No.4

Theoretical Background

[14]
Ratio Analysis
Meaning of Ratio: - A ratio is simple arithmetical expression of the relationship of one
number to another. It may be defined as the indicated quotient of two mathematical
expressions.
Ratio Analysis: - Ratio analysis is the process of determining and presenting the
relationship of items and group of items in the statements. Ratio can assist management
in its basic functions of forecasting, planning coordination, control and communication

It is helpful to know about the liquidity, solvency, capital structure and profitability of an
organization. It is helpful tool to aid in applying judgment, otherwise complex situations.

ADVANTAGE OF RATIO ANALYSIS 

 Helpful in analysis of Financial Statements.

 Helpful in comparative Study.
 Helpful in locating the weak spots of the business.
 Helpful in Forecasting.
 Estimate about the trend of the business.
 Fixation of ideal Standards.
 Effective Control.
 Study of Financial Soundness.

CLASSIFICATION OF RATIO 

Ratio may be classified into the four categories as follows:

(A).    Liquidity Ratio

a.      Current Ratio

b.     Quick Ratio or Acid Test Ratio

(B).    Activity Ratio or Turnover Ratio

a.      Stock Turnover Ratio

b.     Debtors Turnover Ratio

c.     Average Collection Period

d.     Creditors or Payables Turnover Ratio

[15]
e.      Average Payment Period

f.       Fixed Assets Turnover Ratio

g.     Working Capital Turnover Ratio

(C). Profitability Ratio based on Sales:

a. Gross Profit Ratio

b. Net Profit Ratio

 c. Operating Ratio

d. Expenses Ratio

(A).    Liquidity Ratio

It refers to the ability of the firm to meet its current liabilities. The liquidity ratio,
therefore, are also called ‘Short-term Solvency Ratio’. These ratios are used to assess the
short-term financial position of the concern. They indicate the firm’s ability to meet its
current obligation out of current resources.

Liquidity ratio includes two ratios:-

a.     Current Ratio

b.     Quick Ratio or Acid Test Ratio

a. Current Ratio: - This ratio explains the relationship between current assets and
current liabilities of a business.

Formula= Current Ratio=Current Assets/ Current Liabilities

  Current Assets:-‘Current assets’ includes those assets which can be converted into cash
with in a year’s time.

Current Assets = Cash in Hand + Cash at Bank + B/R + Short Term Investment +
Debtors (Debtors – Provision) + Stock (Stock of Finished Goods + Stock of Raw
Material + Work in Progress + Prepaid Expenses.

Current Liabilities: - ‘Current liabilities’ include those liabilities which are repayable in a
year’s time.

[16]
Current Liabilities = Bank Overdraft + B/P + Creditors + Provision for Taxation +
Proposed Dividend + Unclaimed Dividends + Outstanding Expenses + Loans Payable
within a Year.

Significance: - According to accounting principles, a current ratio of 2:1 are supposed to

be an ideal ratio.

It means that current assets of a business should, at least, be twice of its current
liabilities. The higher ratio indicates the better liquidity position; the firm will be able to
pay its current liabilities more easily. If the ratio is less than 2:1, it indicates lack of
liquidity and shortage of working capital.

The biggest drawback of the current ratio is that it is susceptible to “window dressing”.
This ratio can be improved by an equal decrease in both current assets and current
liabilities.

b. Quick Ratio: - Quick ratio indicates whether the firm is in a position to pay its current
liabilities within a month or immediately.

 Formula: Quick Ratio = Liquid Assets/ Current Liabilities

Liquid Assets’ means those assets, which will yield cash very shortly.

 Liquid Assets = Current Assets – Stock – Prepaid Expenses

Significance:-An ideal quick ratio is said to be 1:1. If it is more, it is considered to be

better. This ratio is a better test of short-term financial position of the company.

(B) Activity Ratio or Turnover Ratio

These ratios are calculated on the bases of ‘cost of sales’ or sales, therefore, this ratio is
also called as ‘Turnover Ratio’.  Turnover indicates the speed or number of times the
capital employed has been rotated in the process of doing business. Higher turnover ratio
indicates the better use of capital or resources and in turn leads to higher profitability.

 It includes the following:

a. Stock Turnover Ratio: - This ratio indicates the relationship between the cost of
goods during the year and average stock kept during that year.

Formula: Stock Turnover Ratio = Cost of Goods Sold / Average Stock

[17]
 Here, Cost of goods sold = Net Sales – Gross Profit

 Average Stock = Opening Stock + Closing Stock/2

Significance:-This ratio indicates whether stock has been used or not. It shows the speed
with which the stock is rotated into sales or the number of times the stock is turned into
sales during the year.

The higher the ratio, the better it is, since it indicates that stock is selling quickly. In a
business where stock turnover ratio is high, goods can be sold at a low margin of profit
and even than the profitability may be quite high.    

b. Debtors Turnover Ratio: - This ratio indicates the relationship between credit sales
and average debtors during the year:

Formula: Debtor Turnover Ratio = Net Credit Sales / Closing Sundry Debtor

 While calculating this ratio, provision for bad and doubtful debts is not deducted from
the debtors, so that it may not give a false impression that debtors are collected quickly.

Significance: - This ratio indicates the speed with which the amount is collected from
debtors. The higher the ratio, the better it is, since it indicates that amount from debtors is
being collected more quickly. The more quickly the debtors pay, the less the risk from
bad- debts, and so the lower the expenses of collection and increase in the liquidity of the
firm.

By comparing the debtor’s turnover ratio of the current year with the previous year, it
may be assessed whether the sales policy of the management is efficient or not.

c. Average Collection Period: - This ratio indicates the time with in which the amount is
collected from debtors and bills receivables.

Formula: Average Collection Period = Debtors + Bills Receivable / Credit Sales per day

Credit Sales per day = Net Credit Sales of the year / 365

  Significance: -This ratio shows the time in which the customers are paying for credit
sales. A higher debt collection period is thus, an indicates of the inefficiency and
negligence on the part of management. On the other hand, if there is decrease in debt
collection period, it indicates prompt payment by debtors which reduces the chance of
bad debts.

d. Creditors Turnover Ratio: - This ratio indicates the relationship between credit
purchases and average creditors during the year.

Formula:- Creditors Turnover Ratio = Net credit Purchases / Average Creditors

+Average B/P
[18]
 Significance: - This ratio indicates the speed with which the amount is being paid to
creditors. The higher the ratio, the better it is, since it will indicate that the creditors are
being paid more quickly which increases the credit worthiness of the firm.

e. Average Payment Period: - This ratio indicates the period which is normally taken by
the firm to make payment to its creditors.

 Formula:- Average Payment Period = Creditors + B/P/ Credit Purchase per day

 Significance: - The lower the ratio, the better it is, because a shorter payment period
implies that the creditors are being paid rapidly.

f. Fixed Assets Turnover Ratio: - This ratio reveals how efficiently the fixed assets are
being utilized.

Formula:- Fixed Assets Turnover Ratio = Cost of Goods Sold/ Net Fixed Assets

Here, Net Fixed Assets = Fixed Assets – Depreciation

Significance: - This ratio is particular importance in manufacturing concerns where the

investment in fixed asset is quite high. Compared with the previous year, if there is
increase in this ratio, it will indicate that there is better utilization of fixed assets. If there
is a fall in this ratio, it will show that fixed assets have not been used as efficiently, as
they had been used in the previous year.

g.  Working Capital Turnover Ratio: -This ratio reveals how efficiently working
capital has been utilized in making sales.

Formula:- Working Capital Turnover Ratio = Cost of Goods Sold / Working Capital

 Here, Cost of Goods Sold = Opening Stock + Purchases + Carriage + Wages + Other
Direct Expenses - Closing Stock

Working Capital = Current Assets – Current Liabilities

Significance: -This ratio is of particular importance in non-manufacturing concerns where

current assets play a major role in generating sales. It shows the number of times working
capital has been rotated in producing sales.

A high working capital turnover ratio shows efficient use of working capital and quick
turnover of current assets like stock and debtors.

A low working capital turnover ratio indicates under-utilization of working capital

(C) Profitability Ratios or Income Ratios:-

[19]
The main object of every business concern is to earn profits. A business must be able to
earn adequate profits in relation to the risk and capital invested in it. The efficiency and
the success of a business can be measured with the help of profitability ratio.

(a)Gross Profit Ratio: This ratio shows the relationship between gross profit and sales.

 Formula: Gross Profit Ratio = Gross Profit / Net Sales *100

 Here, Net Sales = Sales – Sales Return

Significance:-This ratio measures the margin of profit available on sales. The higher the
gross profit ratio, the better it is. No ideal standard is fixed for this ratio, but the gross
profit ratio should be adequate enough not only to cover the operating expenses but also
to provide for depreciation, interest on loans, dividends and creation of reserves.

(b) Net Profit Ratio: - This ratio shows the relationship between net profit and sales. It
may be calculated by two methods:

 Formula:- Net Profit Ratio = Net Profit / Net sales *100

  Operating Net Profit = Operating Net Profit / Net Sales *100

Here, Operating Net Profit = Gross Profit – Operating Expenses such as Office and
Administrative Expenses, Selling and Distribution Expenses, Discount, Bad Debts,
Interest on short-term debts etc.

Significance: -This ratio measures the rate of net profit earned on sales. It helps in
determining the overall efficiency of the business operations. An increase in the ratio
over the previous year shows improvement in the overall efficiency and profitability of
the business.

(c) Operating Ratio: - This ratio measures the proportion of an enterprise cost of sales
and operating expenses in comparison to its sales.

Formula: Operating Ratio = Cost of Goods Sold + Operating Expenses/ Net Sales *100

 Where, Cost of Goods Sold = Opening Stock + Purchases + Carriage + Wages + Other
Direct Expenses - Closing Stock

Operating Expenses = Office and Administration Exp. + Selling and Distribution Exp. +
Discount + Bad Debts + Interest on Short- term loans.

‘Operating Ratio’ and ‘Operating Net Profit Ratio’ are inter-related. Total of both these
ratios will be 100.

[20]
Significance: - Operating Ratio is a measurement of the efficiency and profitability of the
business enterprise. The ratio indicates the extent of sales that is absorbed by the cost of
goods sold and operating expenses. Lower the operating ratio is better, because it will
leave higher margin of profit on sales.

Ch.No.5

[21]
 RESEARCH & METHODOLOGY

According to John .W. Best:

“ Research is a systematic and objective analysis and recording of controlled
observations that may lead to the development of generalizations, principles, theories and
concepts, resulting in prediction for seeing and possibly ultimate control of events.”
According to Clifford woody: 
“Research is a careful enquiry or examination in seeking facts or principles, a
diligent investigation to ascertain something.”

Research methodology is very to systematically solve the research problem. It

may be understood as a science of studying how research is done scientifically. Why a
research study study has been undertaken, how the research problem has been defined in
which way and why the hypothesis has been formulated, which data have been collected
and particular method has been adopted. Why particular technique of analyzing data has
been used and a host of similar other questions are usually answered when we talk of
research methodology concerning a research problem or study.
A research design serves as a bridge between what has been established (the
research objective) and what is to be done in the conduct of the study. In this project
research is done, in the conduct of the study. In the project research is done is of
conclusive nature. Conclusive research provides information that in help in making a
rational decision.

The purpose of research is to be discovered answer to question through the

application of scientific procedure. The main aim of research is to find out the truth
which is hidden and which has not been discovering yet.

The research is necessary because of its utility which as follows:-

1. Basis for information is provided by research.

2. It helps in development in new product and modification of existing product.
3. Identification of problem areas.
4. It is an aid for forecasting.

[22]
5. It helps economic development and maintenance of management information system
(MIS).

Primary data-
Primary research consists of a collection of original primary data collected by the
researcher. It is often undertaken after the researcher has gained some insight into the
issue by reviewing secondary research or by analyzing previously collected primary data.

Advantages of using Primary data:

1. The investigator collects data specific to the problem under study.
2. There is no doubt about the quality of the data collected (for the investigator).
3. If required, it may be possible to obtain additional data during the study period.
Disadvantages of Primary Data-
1) The investigator has to contend with all the hassles of data collection- 
2) Ensuring the data collected is of a high standard-
3) Cost of obtaining the data is often the major expense in studies

Secondary data
Secondary data, is data collected by someone other than the user. Common
sources of secondary data for social science include censuses, organisational records
and data collected through qualitative methodologies or qualitative research.
Advantages of Secondary data:
1. The data’s already there- no hassles of data collection
2. It is less expensive
3. The investigator is not personally responsible for the quality of data
disadvantages of Secondary data:
1. The investigator cannot decide what is collected (if specific data about something
is required, for instance).
2. One can only hope that the data is of good quality
Descriptive Research

[23]
Descriptive research includes surveys and fact-finding enquiries of different kinds. The
major purpose of descriptive research is description of the state of affairs as it exists at
present. The main characteristic of this method is that the researcher has no control over
the variables; he can only report what has happened or what is happening. In analytical
research, the researcher has to use facts or information already available, and analyze
these to make a critical evaluation of the material

Process of research methodology

Define Research Problem

Review concepts & theories Review previous research

finding

Design research (including

sample design)

Collect data (Executive)

Analyze data (Test

hypothesis if any)

Interpret and report

[24]
 Ch.No.6

Data Interpretation and Analysis

6.1 Profitability Ratios:

6.1.1 Gross Profit;- Gross Profit Ratio = Gross Profit / Net Sales *100

Table No. 6.1.1

Year 2010-11 2011-12 2012-13 2013-14 2014-15

Gross Profit 52099101 58420213 67629203 67143599 83837126

172407981
Net Sales 1030775472 1263693431 1526392920 2097709894
5

Gross Profit Ratio (%) 5.35% 4.62% 4.43% 3.89% 3.99%

Graph No. 6.1.1

6.00%
5.00%
4.00%
3.00% Gross Profit Ratio (%)
2.00%
1.00%
0.00%
2010-11 2011-12 2012-13 2013-14 2014-15

 Interpretations:

1) From the above table it can be seen that, for 2014-15 the gross profit was
increased by 2.5% over the 2013-14
2) From the above table it can be seen that, for 2014-15 the gross profit was
decreased by 10% over the 2012-13
3) From the above table it can be seen that, for 2014-15 the gross profit was
decreased by 14% over the 2011-12
4) From the above table it can be seen that, for 2014-15 the gross profit was
decreased by 25% over the 2010-11.
[25]
 6.1.2 Net Profit Ratio:
This ratio indicates net margin earned on a sale. It is calculated as follows:

Net Profit

Net Profit Ratio = X 100

Net Sale

Table No. 6.1.2

Year 2010-11 2011-12 2012-13 2013-14 2014-15

Net Profit 749883 753060 770204 1409858 1835459

Net Sales 1030775472 1263693431 1526392920 1724079815 2097709894

Net Profit Margin (%) 0.065% 0.055% 0.05% 0.075% 0.067%

Graph No.6.1.2

1200.00%
1000.00%
800.00%
Net Profit Margin (%)
600.00%
400.00%
200.00%
0.00%
2010-11 2011-12 2012-13 2013-14 2014-15

 Interpretations:

1) From the above table it can be seen that, for 2014-15 the Net profit was decreased by
11% over the 2013-14
2) From the above table it can be seen that, for 2014-15 the Net profit was increased by
34% over the 2012-13
3) From the above table it can be seen that, for 2014-15 the Net profit was increased by
22% over the 2011-12
4) From the above table it can be seen that, for 2014-15 the Net profit was increased by
3% over the 2010-11
5) Company profitability are very good for the year 2013-14.

[26]
 6.2 Liquid Ratios
6.2.1 Current Ratio:

This ratio indicates the margin of safety available with the company. The formula for

Calculating is as follows:

Current Asset
Current Ratio =
Current Liabilities
Table No. 6.2.1

Year 2010-11 2011-12 2012-13 2013-14 2014-15

Current Assets 21892240

3 219389110 328631730 387119052 413901320

Current
Liabilities 21724579
6 180834963 269224547 313728255 350754268

Current Ratio 1.01:1 1.21:1 1.22:1 1.23:1 1.18:1

Graph No. 6.2.1

6
5
4
3 Fixed Asset Turnover Ratio
2
1
0
2010-11 2011-12 2012-13 2013-14 2014-15

 Interpretations:
1) From the above table it can be seen that, for 2014-15 the Current Ratio was decreased
by 4% over the 2013-14
2) From the above table it can be seen that, for 2014-15 the Current Ratio was decreased
by 3% over the 2012-13
3) From the above table it can be seen that, for 2014-15 the Current Ratio was decreased
by 2.5% over the 2011-12
4) From the above table it can be seen that, for 2014-15 the Current Ratio was increased
by 17% over the 2010-11
5) Current Ratio for the last 5 years are show the Position was satisfactory level for the

[27]
 company.
6.2.2 Quick Ratio:

Current Asset-Inventory
Quick Ratio =
Current Liabilities
Table No. 6.2.2

Year 2010-11 2011-12 2012-13 2013-14 2014-15

Liquid Assets 215111023 211036794 320916044 379585241 402162499

Current Liability 217245796 180834963 269224547 313728255 350754268
Quick Ratio 0.01:1 1.16:1 1.19:1 1.19:1 1.15:1

Graph No. 6.2.2

1.2
1
0.8
0.6 Quick Ratio
0.4
0.2
0
2010-11 2011-12 2012-13 2013-14 2014-15

 Interpretations:
1) From the above table it can be seen that, for 2014-15 the Quick Ratio was decreased
by 3.5% over the 2013-14.
2) From the above table it can be seen that, for 2014-15 the Quick Ratio was decreased
by 3.5% over the 2012-13.
3) From the above table it can be seen that, for 2014-15 the Quick Ratio was decreased
by 1% over the 2011-12.
4) From the above table it can be seen that, for 2014-15 the Quick Ratio was increased
by 16% over the 2010-11.
5) Quick Ratio was last Four Years is more than One, This figure indicates the liquidity
position of the company is good.
[28]
 6.3 Turnover Ratio:
6.3.1 Inventory Turnover Ratio:

The ratio is calculated as follows:

Cost of Goods Sold

Inventory Turnover Ratio =

Average Inventory
Table No. 6.3.1

Year 2010-11 2011-12 2012-13 2013-14 2014-15

Cost of Goods Sold 97876637
1 120527321
8 145876371
7 1556936216 2013872768
Average Inventory 3238632 5981848 8033992 76524709 9136317
Inventory
Ratio (Time)Turnover 280.21 190.49 181.44 217.31 220.42

Graph No.6.3.1

300
250
200
Inventory Turnover Ratio
150 (Time)
100
50
0
2010-11 2011-12 2012-13 2013-14 2014-15

 Interpretations:
1) From the above table it can be seen that, for 2014-15 the Inventory Turnover Ratio
was increased by 1.5% over the 2013-14.
2) From the above table it can be seen that, for 2014-15 the Inventory Turnover Ratio
was increased by 21% over the 2012-13.
3) From the above table it can be seen that, for 2014-15 the Inventory Turnover Ratio
was increased by 16% over the 2011-12.
4) From the above table it can be seen that, for 2014-15 the Inventory Turnover Ratio
was decreased by 22% over the 2010-11.
5) Inventory Turnover Ratio was high 280.21 for the year 2010-11.

[29]
6.3.2 Debtors Turnover Ratio:

The formula for calculating is as follows:

Credit Sales

Debtors Turnover Ratio =

Average Accounts Receivables

Year 2010-11 2011-12 2012-13 2013-14 2014-15

Credit Sales 1030775472 1263693431 1526392920 1724079815 2097709894

Average
Accounts
Receivables 17085265 30064406 40603433 37236373 50863420

Debtors
Turnover
Ratio 60.33 42.03 37.59 45.30 40.24
Table No. 6.3.2
Graph No. 6.3.2

70
60
50
40
Debtors Turnover Ratio
30
20
10
0
2010-11 2011-12 2012-13 2013-14 2014-15

 Interpretations:
1) From the above table it can be seen that, for 2014-15 the Debtors Turnover Ratio was
decreased by 11% over the 2013-14.
2) From the above table it can be seen that, for 2014-15 the Debtors Turnover Ratio was
increased by 7% over the 2012-13.
3) From the above table it can be seen that, for 2014-15 the Debtors Turnover Ratio was
decreased by 4% over the 2011-12.
4) From the above table it can be seen that, for 2014-15 the Debtors Turnover Ratio was
increased by 33% over the 2010-11.

[30]
6.3.3 Creditors Turnover Ratio:

The ratio can be computed as follows:

Credit Purchases
Creditors Turnover Ratio =
Average Accounts Received
Table No. 6.3.3

Year 2010-11 2011-12 2012-13 2013-14 2014-15

Credit Purchases 103077547

2 126369343
1 152639292
0 172407981
5 2097709894

Average Account 204477776

Receivables 166454357 253272458 298855412 332516843
Creditors Turnover 4.08
Ratio 7.30 5.8 5.5 6.31

Graph No.6.3.3

12
10
8
Creditors Turnover Ratio
6
4
2
0
2010-11 2011-12 2012-13 2013-14 2014-15

 Interpretations
1) From the above table it can be seen that, for 2014-15 the Creditors Turnover Ratio
was increased by 15% over the 2013-14.
2) From the above table it can be seen that, for 2014-15 the Creditors Turnover Ratio
was increased by 9% over the 2012-13.
3) From the above table it can be seen that, for 2014-15 the Creditors Turnover Ratio
was decreased by 14% over the 2011-12.
4) From the above table it can be seen that, for 2014-15 the Creditors Turnover Ratio
was increased by 55% over the 2010-11.

[31]
 6.3.4 Working Capital Turnover Ratio:

The formula for calculating is as follows:

Net Sales
Working Capital Turnover Ratio =
Working Capital
Table No. 6.3.4

Year 2010-11 2011-12 2012-13 2013-14 2014-15

Net Sales 1030775472 1263693431 1526392920 1724079815 2097709894
Working capital 1476607 37954141 59407183 73790808 62147092

Working capital 69.80 30.44 50.90 23.49 33.56

Graph No.6.3.4

80
70
60
50 Working Capital Turnover
40 Ratio
30
20
10
0
2010-11 2011-12 2012-13 2013-14 2014-15

 Interpretations:
1) From the above table it can be seen that, for 2014-15 the Working Capital
Turnover Ratio was increased by 42% over the 2013-14.
2) From the above table it can be seen that, for 2014-15 the Working Capital
Turnover Ratio was decreased by 35% over the 2012-13.
3) From the above table it can be seen that, for 2014-15 the Working Capital
Turnover Ratio was increased by 10% over the 2011-12.
4) From the above table it can be seen that, for 2014-15 the Working Capital
Turnover Ratio was increased by 52% over the 2010-11.
[32]
6.3.5 Fixed Asset Turnover Ratio

The formula for calculating is as follows:

Net Sales

Fixed Asset Turnover Ratio =

Fixed Asset

Table No. 6.3.5

Year 2010-11 2011-12 2012-13 2013-14 2014-15

Net Sales 1030775472 1263693431 152639292
0 1724079815 2097709894
Fixed Asset 267745665 286877381 320526690 343137000 383710025
Fixed
Turnover Asset 3.84
Ratio 4.40 4.76 4.85 5.46

Graph No. 6.3.5

12
10
8
6 Fixed Asset Turnover Ratio

4
2
0
2010-11 2011-12 2012-13 2013-14 2014-15

 Interpretations:
1) From the above table it can be seen that, for 2014-15 the Fixed Asset Turnover Ratio
was increased by 13% over the 2013-14.
2) From the above table it can be seen that, for 2014-15 the Fixed Asset Turnover Ratio
was increased by 15% over the 2012-13.
3) From the above table it can be seen that, for 2014-15 the Fixed Asset Turnover Ratio
was increased by 25% over the 2011-12.
4) From the above table it can be seen that, for 2014-15 the Fixed Asset Turnover Ratio
was increased by 42% over the 2010-11

[33]
6.3.6 Current Asset Turnover Ratio

The formula for calculating is as follows:

Net Sales
Current Asset Turnover Ratio =
Current Asset
Table No. 6.3.6

Year 2010-11 2011-12 2012-13 2013-14 2014-15

Net Sales 1030775472 1263693431 1526392920 1724079815 2097709894
Current Asset 28004189 30078723 38239786 35220656 37267615
Current Asset 36.80
Turnover
Ratio 40.01 39.91 48.95 56.28
Graph No.6.3.6

60

50

40

30 Current Asset Turnover Ratio

20

10

0
2010-11 2011-12 2012-13 2013-14 2014-15

 Interpretations
1) From the above table it can be seen that, for 2014-15 the Current Asset Turnover
Ratio was increased by 15% over the 2013-14.
2) From the above table it can be seen that, for 2014-15 the Current Asset Turnover
Ratio was increased by 41% over the 2012-13.
3) From the above table it can be seen that, for 2014-15 the Current Asset Turnover
Ratio was increased by 40% over the 2011-12.
4) From the above table it can be seen that, for 2014-15 the Current Asset Turnover
Ratio was increased by 52% over the 2010-11

[34]
TABLE SHOWING SUMMARY OF FINANCIAL RATIOS OVER LAST 5 YEARS:

Year 2010-11 2011-12 2012-13 2013-14 2014-15

Gross profit ratio (%) 5.35 4.62 4.43 3.89 3.99

Net profit ratio (%) 0.07 0.06 0.01 0.08 0.07

Current ratio 1.01:1 1.21:1 1.22:1 1.23:1 1.19:1

Inventory turnover ratio 302.21 201.49 181.44 217.31 220.42

Debtors turnover ratio 60.33 42.03 37.59 46.30 41.24

Creditors turnover ratio 5.04 7.59 6.03 5.81 6.31

Working capital ratio 69.8 32.44 51.90 23.49 33.56

Quick Ratio 1.01:1 1.16:1 1.19:1 1.20:1 1.15:1

Fixed Asset Turnover Ratio 3.84 4.40 4.76 5.02 5.46

Current Asset Turnover Ratio 36.80 42.01 39.91 48.95 56.28

Ch. No.7

FINDINGS

1) Gross Profit Ratio is not good in 2013-14 and 2014-15, but in 2010-11 is high.
2) Net Profit Ratio is very good in 2013-14. Net Profit or Net Sales are increase in
every year.
3) Current Ratio is not satisfactory position in 5 years. Because of An ideal current
ratio is 2:1.

[35]
 4) The standard of Quick Ratio is 1:1. The company liquidity ratio for the last 5
years is nearby 1:1 which indicate that liquidity position of the company is very
good.
5) The higher the ratio, the better it is indicates that stock is selling queqly. 2010-11
Inventory Turnover Ratio are very good is 302 and other years ratio was
satisfactory position in nearby 200.
6) Debtors Turnover Ratio was good position in 5 years and get improve sales and
profitability in year to year.
7) Creditors Turnover Ratio was very good in 2011-12 and 2014-15. High ratio
show that quickly payout creditors amount.
8) Working Capital Turnover Ratio in 2014-15 show that company achieve sales in
2097709894 relatively small amount of working capital and other years ratio
should be good and effective utilize of working capital.
9) Fixed Asset Turnover Ratio are show high ratio good in the company because of
high ratio it would be show higher sales. 2014-15 ratio is high in 5.46 and 5 years
ratio are increase year to year it’s a good for the company.
10) Higher Current Asset Turnover Ratio show better situation in a company. 2014-15
ratio is higher 56.28 are show the good ratio is comparing to previous Ratio.

Ch. No. 8

Conclusion
M&M is a professionally managed company. The company has maintained a sound
financial position. The management of cash resources is being done in systematic and
efficient manner.

The company has been successful in reducing manual intervention in redundant daily
activities. This has helped in increasing efficiency of the system.

[36]
The company is growing at a consistent pace and is taking strategic designs, like
building the new plan at chakan, entry in to 2 wheelers segment with a long term point
of view.

The organization is integrated specialized services. For systematic long range planning
will serve vital and dynamic document, which will guide Dena bank. In the years to
make a profit, and further to improve the service to the specialized services as well as
customers, the services will be exported to some of the most discerning markets of the
world.

Ch.No. 9

Suggestions

1. TO COMPONY

[37]
 The company is growing at a good pace. The company has expanded its capacity
with the inauguration of its new plant in chakan. The company is entering new
sector and expanding its footprint in other sector

2. TO FINANCE DEPARTMENT
Company has high reserve and surplus they can use it for repayment of loan to
decrease interest burden which positive effect in net profit.
Company has excess investment in liquid assets than needed so they have to
decrease their high investment in liquid asset.

3. TO POLICY MAKER
The company should review its credit policy for debtors. The debtor’s collection
period has reduced but it should reduce further. This will reduce the requirement
of the company

4. TO INDUSTRY

An industry should properly utilize its liquid assets by employing it in better

technologies, which may increase the efficiency and quality of the services.

An industry should improve their competitiveness through improved services

utilization and reduced interest rates.

BIBLIOGRAPHY:-

Website
1. https://en.wikipedia.org/wiki/Mahindra_%26_Mahindra

[38]
 2. http://www.icmrindia.org/casestudies/catalogue/Operations/Mahindra-
Implementing%20BPR.htm
3. http://www.investopedia.com/university/ratio-analysis/
4. https://communitymedicine4asses.wordpress.com/2013/01/07/types-of-data-
primary-and-secondary-data/
5. http://in.reuters.com/finance/stocks/companyProfile?symbol=MAHM.BO

Book
1. C. R. Kothari - Research Methodology - New Age International Pub. - 2nd Edition
2. Khan & Jain - Management Accounting - Tata McGraw-Hill Co. Ltd. - 4th Edition

BALANCE SHEET

[39]
 Balance Sheet of Mahindra and Mahindra ------------------- in Rs. Cr. -------------------

Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

Sources Of Funds
Total Share Capital 295.70 295.16 295.16 294.52 293.62
Equity Share Capital 295.70 295.16 295.16 294.52 293.62
Share Application Money 0.00 0.00 0.00 0.00 0.02
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 18,948.60 16,485.24 14,352.92 11,660.28 9,763.96
Net worth 19,244.30 16,780.40 14,648.08 11,954.80 10,057.60
Secured Loans 0.00 294.10 266.67 400.18 407.23
Unsecured Loans 2,620.38 3,451.06 2,960.40 2,774.04 1,913.87
Total Debt 2,620.38 3,745.16 3,227.07 3,174.22 2,321.10
Total Liabilities 21,864.68 20,525.56 17,875.15 15,129.02 12,378.70
Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

Application Of Funds
Gross Block 11,109.91 10,242.58 8,602.96 7,502.36 5,858.26
Less: Revaluation Reserves 10.79 10.79 10.84 216.29 255.79
Less: Accum. Depreciation 5,180.45 4,365.63 3,645.10 3,216.34 2,725.35
Net Block 5,918.67 5,866.16 4,947.02 4,069.73 2,877.12
Capital Work in Progress 2,178.76 1,228.44 863.48 794.73 773.68
Investments 13,138.16 11,379.85 11,833.46 10,310.46 8,925.63
Inventories 2,437.57 2,803.63 2,419.77 2,358.39 1,694.21
Sundry Debtors 2,558.03 2,509.84 2,208.35 1,988.36 1,260.31
Cash and Bank Balance 2,064.77 2,950.39 1,781.41 1,188.43 614.64
Total Current Assets 7,060.37 8,263.86 6,409.53 5,535.18 3,569.16
Loans and Advances 4,638.12 4,539.55 3,389.26 2,985.59 3,138.40
Fixed Deposits 0.00 0.00 0.00 0.00 0.00
Total CA, Loans & Advances 11,698.49 12,803.41 9,798.79 8,520.77 6,707.56
Deferred Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 9,000.62 8,678.28 7,662.13 6,721.40 5,223.75

[40]
Provisions 2,068.78 2,074.02 1,905.47 1,845.27 1,681.54
Total CL & Provisions 11,069.40 10,752.30 9,567.60 8,566.67 6,905.29
Net Current Assets 629.09 2,051.11 231.19 -45.90 -197.73
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 21,864.68 20,525.56 17,875.15 15,129.02 12,378.70

Contingent Liabilities 5,419.91 6,421.09 87.20 2,307.66 1,893.85

Book Value (Rs) 309.85 272.46 238.58 194.71 163.82

PROFIT & LOSS ACCOUNT

Profit & Loss account of ------------------- in Rs. Cr. -------------------

Mahindra and Mahindra
Income Mar '15 Mar '14 Mar '13 Mar '12 Mar '11
43,412.6
Sales Turnover 41,133.11 43,120.18 31,853.52 23,460.26
5
Excise Duty 2,187.69 2,611.68 2,971.49 0.00 0.00
40,441.1
Net Sales 38,945.42 40,508.50 31,853.52 23,460.26
6
Other Income 1,184.66 770.78 639.79 574.06 551.63
Stock Adjustments -323.63 274.67 87.31 597.33 202.23
41,168.2
Total Income 39,806.45 41,553.95 33,024.91 24,214.12
6

[41]
Expenditure
30,675.2
Raw Materials 27,811.64 29,889.44 24,258.94 16,604.88
7
Power & Fuel Cost 222.41 221.35 206.39 175.78 143.93
Employee Cost 2,316.93 2,163.72 1,866.45 1,701.78 1,431.52
Other Manufacturing Expenses 0.00 0.00 0.00 0.00 0.00
Selling and Admin Expenses 0.00 0.00 0.00 0.00 0.00
Miscellaneous Expenses 4,097.38 3,787.45 3,071.06 2,543.63 2,027.83
Preoperative Exp Capitalized 0.00 0.00 0.00 0.00 0.00
35,819.1
Total Expenses 34,448.36 36,061.96 28,680.13 20,208.16
7
Mar '15 Mar '14 Mar '13 Mar '12 Mar '11
Operating Profit 4,173.43 4,721.21 4,709.30 3,770.72 3,454.33
PBDIT 5,358.09 5,491.99 5,349.09 4,344.78 4,005.96
Interest 214.30 259.22 191.19 162.75 72.49
PBDT 5,143.79 5,232.77 5,157.90 4,182.03 3,933.47
Depreciation 974.90 863.34 710.81 576.14 413.86
Other Written Off 0.00 0.00 0.00 0.00 0.00
Profit Before Tax 4,168.89 4,369.43 4,447.09 3,605.89 3,519.61
Extra-ordinary items 0.00 0.00 0.00 0.00 0.00
PBT (Post Extra-ord Items) 4,168.89 4,369.43 4,447.09 3,605.89 3,519.61
Tax 847.78 611.08 1,094.27 727.00 857.51
Reported Net Profit 3,321.11 3,758.35 3,352.82 2,878.89 2,662.10
Total Value Addition 6,636.72 6,172.52 5,143.90 4,421.19 3,603.28
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 745.31 862.25 798.17 767.48 706.08
Corporate Dividend Tax 101.58 104.04 92.98 101.13 96.56
Per share data (annualized)
Shares in issue (lakhs) 6,210.92 6,158.92 6,139.81 6,139.75 6,139.40
Earnings Per Share (Rs) 53.47 61.02 54.61 46.89 43.36
Equity Dividend (%) 240.00 280.00 260.00 250.00 230.00
Book Value (Rs) 309.85 272.46 238.58 194.71 163.82

[42]
[43]