Muthuvel Project 22-4-2003

“A STUDY OF PROFITABILITY ANALYSIS OF
MANINDRA AND MAHINDRA LTD”

A PROJECT REPORT SUBMITTED TO
VELS INSTITUTE OF SCIENCE, TECHNOLOGY AND ADVANCED STUDIES (VISTAS)
In partial fulfillment of the requirement

for the award of the degree of
BACHELOR OF COMMERCE
Submitted by
K.MUTHUVEL
(Reg.No.: 20130325)
Under the guidance of
Dr. P.VIJAYASHREE
M.Com., B.Ed., M.A ENG (LIT), PH.D
ASSISTANT PROFESSOR & RESEARCH SUPERVISOR
DEPARTMENT OF COMMERCE
VISTAS
DEPARTMENT OF COMMERCE (GENERAL)

School of Management Studies & Commerce
VISTAS, Chennai – 600117
MAY 2023
DECLARATION
K.MUTHUVEL (Reg.No.: 20130325) a student of B.Com, Department of Commerce, VELS
INSTITUTE OF SCIENCE TECHNOLOGY AND ADVANCED STUDIES hereby,
declare that the project work titled on “A STUDY OF PROFITABILITY ANALYSIS OF
MANINDRA AND MAHINDRA LTD” submitted to the VELS VISTAS in partial fulfillment
of the requirement for the award the degree of BACHELOR OF COMMERCE (General) is
a record of Bonafide research project work carried out by me under the guidance of
Dr. P.VIJAYASHREE (General) VELS INSTITUTE OF SCIENCE TECHNOLOGY AND
ADVANCED STUDIES, Chennai, and no part of it has been submitted for any other degree or
diploma.
Place:
Date:
K.MUTHUVEL
BONAFIDE CERTIFICATE
This is to certify that project report “A STUDY OF PROFITABILITY ANALYSIS OF

MANINDRA AND MAHINDRA LTD” is a Bonafide record of work carried out by
K.MUTHUVEL (Reg.No.: 20130325) Department of commerce, School of Management
studies and commerce, under VELS INSTITUTE OF SCIENCE TECHNOLOGY AND
ADVANCED STUDIES submitted in partial fulfilment of requirements for the award of the
degree of Bachelor of Commerce from the VELS INSTITUTE OF SCIENCE
TECHNOLOGY AND ADVANCED STUDIES for the year 2020-2023 under the guidance.
Dr. P.Vijayashree Dr. P.Jagadeesan

M.Com., B.Ed., M.A ENG (LIT), Ph.D., M.Com, M.Phil., Ph.D (MKT) Ph.D (HRM)., NET., PGDCA
Assistant Professor & Research Supervisor Professor and Head
Department of Commerce Department of Commerce (General)
INTERNAL EXAMINER HEAD OF THE DEPARTMENT

ACKNOWLEDGEMENT
I shall be much grateful thanks to Dr. ISHARI K GANESH, CHANCELLOR,VELS

INSTITUTE OF SCIENCE TECHNOLOGY AND ADVANCED STUDIES
who has imparted me sufficient support and confidence to complete this Project
I shall be much grateful thanks to Vice Chancellor, Registrar, Controller of

Examinations and Dean of Commerce and Management of VELS INSTITUTE
OF SCIENCE TECHNOLOGY AND ADVANCED STUDIES
I extend my gratitude towards Dr.P. JAGADEESAN, M.com, M.Phil, PhD

(MKT)., Ph.D (HRM)., NET., PGDCA Head of the Department, (General)
Commercefor his encouragement and support to complete this project
successfully.
I express my sincere thanks Dr. P.VIJAYASHREE, Vels Institute of Science

Technology And Advanced Studies, Research guide for guiding me to complete this
project in a successful manner.
I also thank to all of the staff members of department of commerce, VELS

INSTITUTE OF SCIENCE TECHNOLOGY AND ADVANCED STUDIES.
They help me on several occasions during my research work through their valuable
suggestions.
K.MUTHUVEL
LIST OF CONTENTS
CHAPTER NO. TITLE PAGE NO.
1-4
CHAPTER 1 INTRODUCTION
CHAPTER 2 REVIEW OF LITERATURE 5-16
CHAPTER 3 THEORETICALFRAME WORK 17-25
DATA ANALYSIS AND

CHAPTER 5 26-41
INTERPRETATION
FINDINGS,SUGGESTIONS&
CHAPTER 6 42-46
CONCLUSION
BIBILIOGRAPHY 47-48
APPENDIX 49-59
LIST OF TABLES
TABLENO. TITLE PAGE NO.
4.1 Net profit ratio 28
4.2 Gross profit ratio 29
4.3 Operating profit ratio 30
4.4 Operating ratio 31
4.5 Return on equity. 32
4.6 Return on assets 33
4.7 Return on capital employed 34
4.8 Current ratio 35
4.9 Liquid ratio 36
Comparative balance sheet of financial year 2015

4.10 37
and 2016

4.11 38
and 2017

4.12 39
and 2018
Comparative balance sheet of financial year

4.13 40
2018 and 2019
Comparative balance sheet of financial year

4.14 41
2019 and 2020
LIST OF CHARTS
FIGURE
TITLE PAGE NO:
NO.
4.1 Chart showing net profit ratio 28
4.2 Chart showing gross profit ratio 29
4.3 Chart showing operating profit ratio 30
4.4 Chart showing operating ratio 31
4.5 Chart showing return on equity 32
4.6 Chart showing return on assets 33
4.7 Chart showing return on capital employed 34
4.8 Chart showing current ratio 35
4.9 Chart showing liquid ratio 36

CHAPTER – 1
INTRODUCTION
1
Introduction
Financial analysis is a process of identifying the strength and weakness of the firm by
properly establishing relationship. Analysis of financial statementsmeans establishing
relationship between the items in financial statements for determining the financial
strength and weakness of the business. Therefore, the main purpose of financial
statement analysis is to utilise information about the past performance of the company
in order to predict how it will fare in the future. Another important purpose of the
analysis of financial statements is to identify potential problem areas and troubleshoot
those.
The ultimate aim of any business enterprise is to earn maximum profit. A firm should
earn profits to survive and grow over a long period of time. Profit is anexcess of
revenues over associated expenses for an activity over a period oftime. Profit is an
excess of revenues over associated expenses for an activityover a period of time.
Management should try to maximise its profit keeping in mind the welfare of the
society. The creditors want to get interest regularly andprinciple regularly. Owners
want to get reasonable return on investment. At theend of accounting period financial
statements are prepared by the businessenterprise to know the result of the business
operation and the financialposition. The financial statement provides a summarised
view of financialposition and operation of a firm. Therefore, much can be learned
about a firmfrom careful examination of its financial statement.
Mahindra and Mahindra Limited has marked its presence with significant achievements
and commands a market leadership status with regard to itsservice. It is one of the
largest manufactures in Indian automotive industry. Over the years the company
improved with regard to its service. This project is thus an earnest attempt to analyse
profitability of Mahindra and Mahindra Limited.
2
Statement of problem
The analysis of financial statement is a process of evaluating the relationship between

component parts of financial statements to obtain and understandingof the firm's
position and performance. Here the financial performance ofMahindra and Mahindra
Limited is analysed by using ratio analysis. It includes ratio analysis in this
environment, a study on financial performance ofMahindra and Mahindra Limited is
helpful in determining the financial strengthand weakness of the firm by establishing
strategic relationship between theitems of the balance sheet and profit and loss
account. Here the problem is toanalyse the financial performance of the company is
satisfactory or not.
Scope of study
The scope of the study is limited to India. An attempt is made to make a study of
financial statements of Mahindra and Mahindra Ltd. The analysis of profitability will
help one to understand the financial strength and weakness of the company. This study
will provide the necessary information of financialand operational result over a
period of time. This will facilitate the evaluationof the financial position, efficiency
and performance easily.
Objectives of the study
➢ To analyse overall profitability of Mahindra and Mahindra Limited overthe

last five years.
➢ To study the trend of profit of Mahindra and Mahindra Limited over thepast
five years.
➢ Achieve the overall financial position of the company
3
Research Design
➢ 1.5.1 Nature of study :-Analytical research is used for the purpose of study.
➢ 1.5.2 Nature of data :- The present study is based on secondary data

➢ 1.5.3 Sources of data :- Source of data are collected from the annual report
published on the official website of the company, magazine,books and journals.
➢ 1.5.4 Period of study :- The present study analyses the profitability of Mahindra
and Mahindra Limited are a period of five years from 2015- 2016 to 2019-2020
Tools for Analysis
• Ratio analysis
• Comparative balance sheet
Chapterization
➢ Chapter-1-Introduction
➢ Chapter-2-Review of literature
➢ Chapter-3-Industry and company profile
➢ Chapter-4-Data analysis and interpretation
➢ Chapter-5-Findings, suggestions & conclusion
4
CHAPTER – 2
REVIEW OF LITERATURE
5
Introduction
This chapter deals with review of literature. This chapter includes conceptual literature and
empirical literature. Conceptual literature includes different concepts used in the study.
Empirical literature includes studies done by different authors
Conceptual literature
Meaning of Finance
Business concern needs finance to meet their requirements in the economic world. Any kind
of business activity depends on the finance. Hence, it is called as life blood of business
organization. Whether the business concerns are small or big, they need finance to fulfil
their business activities. In the modern world, all the activities are concerned with the
economic activities and very particular to earning profit through any venture or activities.
The entire business activitiesare directly related with making profit. A business concern
needs finance to meet all the requirements. Hence finance may be called as capital,
investment, fund etc., but each item is having different meanings and unique characters.
Increasing the profit is the main aim of any kind of economic activity.
Financial Performance
"Financial performance is scientific evaluation of profitability and financial strength of any

business concern" according to Kennedy and Macmillan financial statement analysis
attempt to unveil the meaning and significance of the items composed in profit and loss
account and balance sheet. The assists are the management in the formation of sound
operating and financial policies. According to accounting point of view financial statement
are prepared by a business enterprise at the end of every financial year. "Financial
statements are end products of financial accounting." They are capsulated periodical reports
offinancial and operating data accumulated by a firm in its books of accounts- theGeneral
Ledger. One of the most fundamental facts about businesses is that the operating
performance of the firm shapes its financial structure. It is also true
6
that the financial situation of the firm can also determine its operating performance.
The financial statements are therefore important diagnostic tools for the informed
manager.
Financial Efficiency
Financial Efficiency is a measure of the organization's ability to translate its financial

resources into mission related activities. Financial Efficiency is desirable in all
organizations regardless of individual mission or structure. It measures the intensity
with which a business uses its assets to generate gross revenues and the effectiveness
of producing, purchasing, pricing, financing and marketing decisions. At the micro
level, Financial Efficiency refers to the efficiency with which resources are correctly
allocated among competing uses at a point of time. Financial Efficiency is a measure
of how well an organization has managed certain trade-offs in the use of its financial
resources.Financial Efficiency is regarded efficiency and is a management guide to
greater efficiency the extent of profitability, productivity, liquidity and capital strength
can be taken as a final proof of financial efficiency. It is interesting to note that
sometimes, even sufficient profits can mask inefficiency and conversely, a good degree
financial efficiency could be dressed with the absence & profit.
Financial Performance Analysis
In short, the firm itself as well as various interested groups such as managers,
shareholders, creditors, tax authorities, and others seeks answers to the following
important questions: (1) what is the financial position of the firm at a given point of
time? (2) How is the Financial Performance of the firm over a given period of time?
These questions can be answered with the help of financial analysis of a firm. Financial
analysis involves the use of financial statements. Thus, the term „financial statements"
generally refers to two basic statements: The Balance Sheet shows the financial position
of the firm at a given point of time. The income statement referred to in India as the
profit and loss statement reflects the performance of the firm over a period of
time.
7
However, financial statements do not reveal all the information related to the financial
operations of a firm. The financial performance analysis identifies the financial
strengths and weaknesses of the firm by properly establishing relationships between the
items of the balance sheet and profit and loss account. The first task is to select the
information relevant to the decision under consideration from the total information
contained in the financial statements. The second is to arrange the information in a way
to highlight significant relationships. The final is interpretation and drawing of
inferences and conclusions. In short, "financial performance analysis is the process of
selection, relation, and evaluation."
Ratio Analysis
The term accounting ratios is used to describe significant relationship between figures
shown on balance sheet, in a profit and loss account, in a budgetary control system or
in any, other part of the accounting organization. Ratiosimply refers to one number
expressed in terms of another number. Ratioanalysis is a technique of analysis and
interpretation of financial statement. It isthe process of establishing and interpreting the
various ratios for helping in making certain decision. However, ratio analysis is not
an end to itself. It is only a means of better understanding of financial strength,
weakness of a firm. Calculation of mere accounting ratios does not serve any purpose
unless several appropriate ratios are analysed and interpreted.
Objectives of Ratio Analysis
➢ To study the short term solvency of a firm.

➢ To study the long term solvency of a firm.
➢ To determine the profitability of a firm.
➢ To measure the performance of a firm.
➢ To facilitate the process of financial forecasting.
➢ To communicate the strength and weakness of a firm.
➢ To enable managerial decision making
8
Profitability ratios
Net profit ratio
Net profit ratio is the ratio of net profit earned by business and its net sales. Theobjective
of calculating net profit ratio is to measure the overall profitability of the concern. It
determines the return to the owners. This ratio indicates how much of sales are left after
meeting all the expenses. Net profit ratio calculated by using the following formula.
Net Profit /Net Sales *100
The ideal N/P ratio is 5% to 10%. However, in order to understand the real ability of
management to earn profit, this ratio should be used along with working capita turnover
ratio. Higher the ratio is the profitability. This means higher returns to shareholders.
Gross profit ratio
Gross profit ratio is the ratio of gross profit to net sales i.e. sales less sales returns. The
ratio thus reflects the margin of profit that a concern is able to earnon its trading and
manufacturing activity. It is the most commonly calculatedratio. It is employed for
inter-firm and inter-firm comparison of trading results.Gross profit is what is revealed
by the trading account. It results from thedifference between net sales and cost of
goods sold without taking into accountexpenses generally charged to the profit and
loss account. The larger the gap,the greater is the scope for absorbing various
expenses on administration,maintenance, arranging finance, selling and distribution
and yet leaving net profit for the proprietors or shareholders.
Formula: Gross Profit / Net Sales *100
Operating profit ratio
Operating profit ratio explains the relationship between operating profit and netsales.
The operating profit ratio indicates that every result of operation ofbusiness. It
measures the operational efficiency Operating ratio is calculated by using following
formula:-
Operating Profit Ratio = Operating Profit/Net sales * 100
Operating profit = Net sales- Cost of goods sold- Operating expenses OrGross
9
profit- Operating expenses
Operating profit can be ascertained from net profit in the following manner.
Operating profit = Net profit + Non-Operating expenses and Interest onlong
term Loans and debentures - Non operating income
Operating ratio
The operating ratio is a financial term defined as a company's operatingexpenses as a

percentage of revenue. This financial ratio is most commonlyused for industries
which require a large percentage of revenues to maintainoperations, such as railroads.
In railroading, an operating ratio of 80 or lower isconsidered desirable. The operating
ratio can be used to determine the efficiency of a company's management by
comparing operating expenses to netsales. It is calculated by dividing the operating
expenses by the net sales. Thesmaller the ratio, the greater the organization's ability
to generate profit. The ratio does not factor in expansion or debt repayment.
Alternatively, it may beexpressed as a ratio of sales to cost. In such case a higher
ratio indicates abetter ability to generate revenue. The ideal ratio of manufacturing
concern is75% to 85%. The operating ratio is calculated by the following formula;
Operating Ratio = Operating cost / Net sales * 100
Operating cost = Cost of goods sold + Operating expenses
10
Return on equity
Return on net worth is a ratio developed from the perspective of the investor and not
the company. By looking at this, the investor sees if entire net profit was passed on to
him, how much return would he be getting. It explains the efficiency of the
shareholder’s capital to generate profit
Importance
➢ This ratio interprets how efficiently a company uses shareholder’smoney to

generate maximum profit.
➢ The higher the ratio, the more efficient the company is for using
shareholder’s equity
➢ Investors always prefer a high return on net worth/equity Ratio of a
company for maximum profit
Positive and negative return on the net worth ratio
Positive: It interprets company is well organized at generating shareholder’s return. It

indicates how wisely a company can invest the amount and increase productivity and
profit. It shows the company can generate more assets tocover its liabilities.
Therefore, undoubtedly it is a safe investment choice
Negative: In contrast, a decreasing return in net worth means the company is making
a poor decision and their equity management efficiency is not good atall. So it is
clear that a company with a negative return on net worth has moredebt and not a
safe investment choice
Return on net worth/equity= net income/shareholder’s equity*100
11
Return on assets
Return on assets is a financial ratio that shows the percentage of profit of a Company
earns in relation to its overall resources. It is commonly defined asnet income divided
by total assets. Net income is derived from the incomestatement of a company and
is the profit after tax Return on assets is calculated by following formula.
Return on asset = Profit after tax/ Total Assets *100
Return on capital employed
Return on capital employed (ROCE) is a financial ratio that measures a company's

profitability and the efficiency with which its capital is used. Inother words. The
ratio measures how well a company is generating profits fromits capital. The ROCE
ratio is considered an important profitability ratio and is used often by investors when
screening for suitable investment candidates.
The Formula for ROCE Is
ROCE = EBIT / Capital Employed*100
Where:
EBIT = Earnings before interest and tax
Capital employed = total assets – current liabilities
Liquidity ratio
The term liquidity refers to the firm’s ability to meet its current its current liabilities.
Liquidity ratios are used to measure the liquidity positions or short term financial
positions of a firm. These ratios are used to assess the short term debt paying ability of
a firm, important liquidity ratios are current ratio and quick ratio.
12
Current ratio
Current ratio is one of the oldest of all financial ratios. Current ratio is defined as the
ratio of current assets to current liabilities. It shows the relationship between total
current asset and total current liabilities. Current ratio is also called working capital
ratio or bankers ratio. It is calculated as follows;
Current Ratio = Current Asset/Current Liabilities
In short current ratio is a measure of the ability of a firm to pay its current liabilities
out of current assets. Generally a current ratio of 2:1 is considered satisfactory or
ideal. This means that current assets shall be at least twice thecurrent liabilities
Liquid ratio
Liquid ratio is the ratio of liquidated assets to current liabilities. It establishes the
relationship between quick assets and current liabilities. It is the measure of the instant
debt paying ability of the business enterprise. It is also called acid test ratio. It is called
so because the ratio is calculated to eliminate all possible illiquid elements from current
assets. It is also called near money ratio.
It is computed as follows:
Liquid ratio = Liquid assets/Current liabilities

Liquid asset = Current assets - stock and prepaid expenses
A quick ratio of 1:1 is considered as satisfactory or ideal. It means that theliquid

assets are just equal to quick or current liabilities.
13
Comparative balance sheet
A comparative balance sheet shows the assets, liabilities and owner's equity of a
business enterprise at the beginning and at the end of the accounting period with
increases and decreases in the absolute data in terms of rupees and percentages. A
single balance sheet focuses on the financial status of the firm as on a particular date,
while a comparative balance sheet, focuses on the changes that have taken place in one
accounting period.
Empirical literature
1. Sharma Nishi (2011) studied the financial performance of passenger and

commercial vehicle segment of the automobile industry in the terms of four financial
parameters namely liquidity, profitability, leverage and managerial efficiency
analysis for the period of decade from 2001-02 to 2010-11. The study concludes
that profitability and managerial efficiency of Tata motors as well as Mahindra &
Mahindra ltd are satisfactory but their liquidity position is not satisfactory. The
liquidity position of commercial vehicle is much better than passenger vehicle
segment.
2. Afar S.M. Tariq & Khalid S.M(2012) the study explore that ratios are calculated
from financial statements which are prepared as desired policies adopted on
depreciation and stock valuation by the management. Ratio issimple comparison
of numerator and a denominator that cannot produce complete and authentic picture
of business are manipulated and also may not highlight other factors which affect
performance of firm by promoters.
3. Dawar Varun (2012) study to analyse the effect of various fundamental corporate
policy variables like dividend, debit, capital expenditure on stock prices of
automobile companies of India. The study trends that dividend &investment policy
are relevant and capital structure irrelevant to stock prices.
14
4. HotwaniRakhi (2013) the author examines the profitability position and growth of
company in light of sales and profitability of Tata motors for past tenyears. Data is
analysed through rations, standard deviations and coefficient of variance. The study
reveals that there not exist a strong relationship between sales & profitability of
company.
5. Dhole Madhavi (2013) Investing the impact of price movement of share on selected
company performance. It advice due investors consider various factors before
choosing the better portfolio. Sentimental factors do play a role in price movement
only in short term but in long run annual performance is sole factor responsible for
price movement.
6. Shende Vikram (2014) this research will be helpful for the new entrants and
existing car manufacturing companies in India to find out the customer expectations
and their market offerings. The objective of study is the identification of factors
influencing customer's performance for particular segment of cars.
7. Buvaneswari .R &Kanimozhip (2014) to study the credit worthiness of selected

firms in Indian car industry, tiruchy. Professor Edward Altman of New York
University developed method Z score analysis to predict the company failure or
bankruptcy. To measure the fiscal fitness of a company combined a set of five
financial ratios.
8. SarwadeWalmikKachru (2015) analysed the effects of liberalisation, government

de-licensing and liberal trade policies on the growth of Indian auto mobile industry.
The study recommends that investing four-wheeler is going to be smart potion not
only in India but all around the world. 8. Becker Dieter (2015) the report shows
about the current state and future prospects of the worldwide automobile industry.
This survey reports the manufacturer, executive and customer views about four
aspects, mobility culture, technological fit, business model readiness and market
share.
15
9. Surekha B. &Krishnalah K. Rama (2015) this study reveals the prosperity of
Maruti Suzuki company. It can be concluded that inner strength of company of
company is remarkable. Company can further improve its profitability by optimum
capital gearing, reduction in administration and financial expenses forthe growth of
company.
10. Anu B. (2015) made an attempt to examine the relationship between capital
structure indicators, market price per shares and also to test relationship between
debt-equity and market price per share of selected companies in industry. The study
concludes that all three companies support the hypothesis that there is relation
between debt-equity and MPS.
11. Maheswari, V. (2015) made an attempt to analyse the financial soundness of the
Hero Honda motors limited have identified three factors namely liquidity position,
solvency position and profitability position based on the study of period 2002 to
2010 using ratio analysis.
12. Jodi, K. & Kalaivani P. (2015) studied the comparative performance of Honda
Motors and Toyota Motors that both companies have satisfactory short- term
liquidity position. As for as cash ratio concerned Honda Company has upper hand
upper hand is sound cash management practice during the study period. In case of
profitability it is rising from the both of companies but remained much higher
earning potential in Honda Motor Ltd.
16
CHAPTER – 3
INDUSTRY AND COMPANY PROFILE
17
INDUSTRIAL PROFILE
India became the fourth largest auto market in 2018 with sales increasing 8.3per cent
year-on-year to 3.99 million units. It was the seventh largest manufacturer of
commercial vehicles in 2018. The Two Wheelers segmentdominates the market in
terms of volume owing to a growing middle class anda young population. Moreover,
the growing interest of the companies inexploring the rural markets further aided the
growth of the sector. India is alsoa prominent auto exporter and has strong export
growth expectations for thenear future. Automobile exports grew 14.50 per cent
during FY19. It isexpected to grow at a CAGR of 3.05 per cent during 2016-2026. In
addition, several initiatives by the Government of India and the major automobile
players in the Indian market are expected to make India a leader in the two-wheeler
and four-wheeler market in the world by 2020.
Market Size Overall domestic automobiles sales increased at 6.71 per cent CAGR
between FY13-19 with 26.27 million vehicles getting sold in FY19. Domestic
automobile production increased at 6.96 per cent CAGR between FY13-19 with 30.92
million vehicles manufactured in the country in FY19. In FY19, year-on-year growth
in domestic sales among all the categories was recorded in commercial vehicles at 17.55
per cent followed by 10.27 per cent year-on-year growth in the sales of three-wheelers.
Premium motorbike sales inIndia crossed one million units in FY18. During January-
September 2018,BMW registered a growth of 11 per cent year-on-year in its sales in
India at 7,915 units. Mercedes Benz ranked first in sales satisfaction in the luxury
vehicles segment according to J D Power 2018 India salessatisfaction index (luxury).
18
COMPANY PROFILE
1945 - The Company was Incorporated and converted into Public Limited in 1955 at
Mumbai. The Company Manufacture Jeep type vehicles, petrol industrial engines,
industrial process control instruments and flow meters. Trading in steel and
manufacture of professional grade electronic components. Jeeps are manufactured
under a license and an agreement with Willys Motors Inc., Toledo, Ohio, U.S.A., for
whom the Company also acts as exclusive distributors for the whole of India for their
entire range of vehicles including utility vans, cargo/personnel carriers and pick-up
trucks.
1958 - The Company entered into an agreement with Birfield Ltd., to form Mahindra
Sintered Products Private Limited for the manufacture of a wide range of self-
lubricating bearings.
1968 - The Instrumentation & Electronics Division came into existence as a result of
merger of the wholly-owned subsidiary of Mahindra Engineering Co. Ltd., with the
Company with effect from 1st April 1968. The activities of the merged company were
being carried on in this division. - The Company acquired the whole paid-up capital of
Mahindra Electro-Chemicals Products Ltd. Company. - With effect from 1st April, the
wholly owned subsidiary Mahindra Engineering Co. Ltd., was merged with the
Company. International Tractor Company of India Ltd., was merged with the Company
effective from 1stNovember1977.
1970 - The name was changed from Mahindra Van Wijk & Visser Ltd. to Mahindra &
Mahindra Ltd. This was merged with the Indian National Diesel Engine Co., Ltd.,
during 1977-78.
1977 - 74, - 700-9.3% Pref. and 12,98,202 No. of Equity share allotted without payment
in cash to shareholders of International Tractor Co. Ltd., on its merger
19
in prop 1:1 Pref. and 2:3 Equity. 12,500-7.8% Pref. shares redeemed on 1.2.1979. 1978
- The Company started negotiation with Balania K. Zacharopoulos Ltd., Athens for
jointly promoting a new company in Greece for the manufacture of Jeep vehicles and
trucks. Initially, it was proposed to assemble these vehicles mainly from CKD packs to
be shipped from India.
1979 - 57,22,764 Bonus equity share issued in prop. 1:1.
1983 - 76,30,352 Bonus equity shares issued in prop. 2:3 in October 1984.
1984 - Mahindra Spicer Ltd. (MSL), was amalgamated with Mahindra & Mahindra Ltd.
(MML) with effect from 3rd April. Pursuant to the scheme of amalgamation of MSL
with MML, the shareholders of MSL were allotted 1,88,166 equity shares of MML in
the ratio of 1 equity share of MML for every 6 shares held in MSL. - The Company
entered into a collaboration agreement with Foramer S. A., an associate of Forasol S.A.,
for purchase of Ile d' Amsterdam an offshore drilling rig at a price U.S. $10.75 million.
The Company arranged for a foreign currency loan through Bank of Baroda. In view
of this purchase, the Company obtained a firm order from ONGC for drilling services
for 2 years.
1985 - A letter of intent was obtained for the manufacture of 50,000 lines of
EPABX/PAXs in collaboration with OKL Electric Co. of Japan. - The Company also
signed a Memorandum of Understanding with the British Telecom p.l.c. of London
under which the two companies were to jointlyexplore and develop opportunities in
telecommunication and technical fields in India. - MBT was made a subsidiary of the
Company with 60% holding and the remaining 40% was subscribed by the foreign
partners, the British Telecommunications p.l.c., U.K. (BT) for provision of software
engineers of MBT to work on various projects of BT in the U.K. MBT also decided to
issue equity capital to the extent of Rs 4 crores out of which shares worth Rs 2.40
crores were to be offered to Mahindra & Mahindra Ltd., for subscription andthe
balance shares worth Rs 1.60 crores were to be offered to BT.
1987 - (17 months), approval from Government was received for the manufacture of
Peugeot 504 pick-up vehicles in collaboration with Automobiles Peugeot of France. -
A new model M-595 tractor in the 50 H.P. range was introduced.
1988 - The Company acquired a off-shore drilling rig "Ile d' Amsterdam" from Foramer
20
S. A., France as on 1st March. A firm letter of intent was received for one land rig for
drilling operations at Jwalamukhi, Himachal Pradesh against a tender from ONGC. The
Company already entered into an agreement with Forasol S.A., for purchase of a land
rig and related equipment.
1989 - During the year improved versions of CJ 500 range of jeeps and FJ range of
LCVs were introduced. Also a sporty model of jeep was introduce which was well
received by the target audience. - During September, the Company acquired the
automotive pressing unit at Kanhe from Guest Keen Williams, Ltd. for a gross
consideration of Rs 28.75 crores. The unit has an installed capacity of 10,000 tonnes
per annum.
1990 - The Automotive division faced adverse market conditions resulting in a drastic
reduction in production and sales of vehicles. The Automotive division introduced a
direct injection diesel engine, the MDI 2500 A engine on the CJ 500 vehicles. A new
fuel efficient 10-seater vehicle having a direct injection diesel engine was introduced.
1991 - New replacement kits for the series of diesel engines, the XDP 4.90 were
successfully launched in order to replace petrol engines in passenger cars and create
new demands for the series of diesel engines manufactured by the Company.
1992 - It was proposed to launch a new LCV with a much larger platform, imported
driving comfort and better styling. - The Company issued 72,42,719 - 14.5% secured
Non-convertible redeemable debentures of Rs 100 each with a detachable warrant
attached to each debenture entitling the holder thereof to apply for 1 equity share of Rs
10 each at a premium of Rs 20 per share in the ratio 1 debenture: 5 equity shares held,
on the expiry of six months and 36 months from the date of allotment of debentures.
1993 - The Automotive division undertook to introduce a wide range of products such
as mini bus, MM Deluxe, Armada deluxe, Cabking pick-up, CL- Classic & a
single/double Cab pick-up etc.
1994 - During the year a new Company Mahindra USA Inc. had been established in
Texas, U.S.A. with the objective of increasing tractor sales in
U.S. - 9,73,200 shares allotted to the erstwhile shareholders of MNAL 11,14,682 shares
allotted against the detachable warrants. 35,85,874 sharesallotted to Ford Motor
21
Company USA, at a premium of Rs 370 per shares. 28,00,000 shares allotted to the
promoter group.
1995 - A New LCV model-cabking DI 3150 - with a payload of 2.5 tonnes, a 5-speed
transmission and high-quality components was launched. Also, a sporty 4-wheel drive
vehicle Mahindra Classic with modern fitments such as Vacuum assisted brakes, disc
brakes in front, wire wheels & bull bar was launched for the domestic market.
1996 - The Company proposed to introduce the `Armada Grand' with XD3 diesel
engine, 5 speed BA 10 transmission with air-conditioning and power steering as
standard features.
1997 - The Zaheerabad plant and R&D division were awarded Iso 9002 and ISO 9001
certification respectively. With the technology received from Fuji Technica, Japan the
company undertook to manufacture dies for vehicle bodies in the new Die Shop.
1998 - A joint venture company is being promoted by Mahindra and Mahindra Limited,
Infrastructure Leasing and Financial Services and Tamil Nadu Industrial Development
Corporation to set up an industrial park near Chennaito attract auto ancillary units and
all categories of non-polluting industries.
1999 - M&M has set up a new company - Mahindra Auto Specialities Ltd - for bullet-
proofing passenger vehicles and providing specialised services. M&M has signed an
MoU with Plasan Sasa of Israel for design and development of armoured (bullet proof)
solutions on M&M utility vehicles for use by Indian security forces.
2000 - The Company will be launching its first CNG-powered utility vehicle inDelhi. -
The Company consequent to disciplinary action taken by the Management against
certain workmen and Union representative, the workmen of Kandivli Plant of Tractor
Division of the company initially stopped workand thereafter resorted to illegal strike
on 11th January.
2001 - The Company has set up a farm extension services division called Mahindra
Shubh Labh, which will pioneer the building of a chain of one-stop shops offering a
comprehensive range of farm-gate services. - Mahindra Intertrade, the largest non-
automotive company of the Mahindra & Mahindra group, has entered into a distribution
alliance with Lego.
22
2002 -Mahindra & Mahindra Ltd has informed BSE that ICICI Bank Ltd has withdrawn
the nomination of Mr Inder Chand Jain as their Nominee Director from the Board of
M& M with immediate effect.Consequently Mr Inder Chand Jain ceases to be a
Director of Mahindra & Mahindra Ltd with immediateeffect.
2003 -Unleashes MaXX Pik Up utility vehicle - Signed an agreement with Canara Bank
. Where in, Canara Bank will provide loan to those farmers who are willing to buy
Mahindra's tractors and other farm implements.
2004 -Mahindra & Mahindra delisting of shares from DSE -M&M launches two
variants of Bolero utility vehicle in TN -The former managing director of Rallis India,
Mr Rajeev Dubey, is joining Mahindra & Mahindra Ltd (M&M)as Executive Vice-
President (Human Resources & Corporate Services).
2005 - Mahindra & Mahindra tractors' top dealer in the US has become the largest
tractor dealer in the US, muscling past dealers of John Deer, New
Holland and Kubota. -M&M forays into Australian tractor market on February 14.
2006 -M&M unleashes Scorpio Pik-Up in South Africa -M&M unveils three- wheeler
car -M&M Hingna unit enters into new wage agreement - Mahindra & Mahindra Ltd
on Oct 11,2006 signed a agreement with ITMCo (Iran Tractor Manufacturing Co) to
sell tractors in Iran.
2007 - Mahindra & Mahindra acquires a leading German Forging Company

Schoneweiss & Co. GmbH. - Mahindra unveils new Bolero in Gujarat. - Mahindra and
Mahindra (M&M) has launched the line of sports utility vehicles(SUV) and pick-up
trucks that it plans to begin selling in the United States starting from 2009.
2008 -Mahindra & Mahindra acquires renowned Italian design house, GRD Italy.
2009 - Mahindra & Mahindra unveiled its fourth generation Scorpio at an unbeatable
price. - Mahindra & Mahindra (M&M) signed a memorandum of understanding with
the State Bank of Bikaner and Jaipur (SBBJ) for vehicle finance. - Mahindra launches
luxury sedan XYLO - M&M enters retail space with Mom & Me - Mahindra sold 1,788
XYLOs in two weeks - M&M signs pact with State Bank of Bikaner - Mahindra gets
order for 15,000 Xylo in three months
2010 - Mahindra & Mahindra has hiked prices of its products by up to Rs 18,000 due
23
to the in-excise duty announced in the Budget. - Anand Mahindra, vice-chairman and
managing director, M&M, is keen on attaining companies that boost M&MÂ’s global
aspirations. This can be done by giving a combination of facilities, technology and
dealer network.
2012 - Mahindra and Mahindra had acquired Ssangyong Motor Company, a South
Korean SUV maker, almost a year ago and are now planning to set up a assembly plant
and invest Rs 800 crore over next 3-4 years - Mahindra and Mahindra wins arbitration
award and class action suit against global vehicles.
24
2013 - Auto major Mahindra and Mahindra has inked partnership with online shopping
portal, Snapdeal.com to sell its two-wheeles on the site. - Mahindra launches new visual
identity reflecting modernity and dynamism.
2014 -Mahindra introduces 'Yoga Seats' in Quanto Compact SUV -Mahindra signs
MoU with Government of Bhutan to promote usage of Electric Vehicles in the country
-Mahindra Defence Naval Systems Inaugurates new Chakan plant.
2015 -Mahindra & Mahindra Ltd - Mahindra Two Wheelers and PeugeotMotocycles
complete strategic partnership -Mahindra inaugurates its extended automotive
manufacturing facility at Zaheerabad in Telangana.
2016 -Mahi. & Mahi. inaugurates its Bio-CNG plant in Mahindra World City (MWC),
Chennai -Mahi. & Mahi. lunches its Premium Pick up 'Imperio' - M&M launches
KUV100; priced at Rs 4.42 lakh -Mahi. & Mahi - Mahindra launches its new mHawk
diesel engine variant.
2018 Mahindra Electric launches Virtual Reality drive experience for all- electric
e2oPlus. Mahindra First Choice Wheels Raises $15 Million valuing the company at
$265 Million. Mahindra Launches All New MOJO UT 300. Mahindra and Ford Sign
MoUs to Co-Develop Midsize and Compact SUV. Electric Vehicle and Connected Car
Solutions.
2019 Mahindra Presents Its Luxury SUV, Alturas G4, to His Highness Maharaja Sawai
Padmanabh Singh of Jaipur. Mahindra Launches the Stylish &Thrilling New XUV300.
Mahindra Launches FURIO Truck with Unprecedented "More Profit or Truck back"
Guarantee.
2020 Mahindra Group Launches #SkillHaiTohFutureHai Digital Campaign.Mahindra

hands over All-New Thar #1 to auction winner Aakash Minda.Mahindra rolls out BS6
variants of Alfa, its popular 3-wheeler brand. Mahindra Racing First Team to be
certified Three-Star Excellence in sustainability by theFIA.
25
CHAPTER – 4
DATA ANALYSIS AND INTERPRETATION
26
DATA ANALYSIS AND INTERPRETATION
This chapter is considered to be the core part of this project work. It is mainly indented
to examine the profitability of the company for the last five years. Theratio analysis is
one of the most powerful tools of financial analysis. It is a process of computing and
interpreting various accounting ratios for arriving at conclusions about financial
position and performance of an enterprise. They are the pointers or indicators of
financial strength, soundness, position or weakness of a concern. One can draw
conclusions about the exact financial position of anenterprise with the help of financial
ratios.
PROFITABILITY RATIOS
A profitability ratio measures a company's ability to generate earning relativeto sales,

assets and equity. It reveals the financial strength and weakness of a firm. The operation
efficiency of the firm its ability to ensure adequate return toits shareholders depends
ultimately on the profit earned by it. The profitability of a firm can be measured by its
profitability ratio. Profitability ratios measure the ability of a firm to earn an adequate
return on sales, total assets andinvested capital. There are two types of profitability
ratios. First, profitability ratios based on sales and second, profitability ratios based on
investment.
27
Table 4.1
Net profit ratio
Year Net profit Net sales Ratio (%)

2016 2,708.47 74,762.30 3.6227
2017 3,151.13 82,069.37 3.8395
2018 6,850.53 90,770.68 7.5470
2019 4,650.33 103,015.23 4.5142

2020 -1,363.58 93,764.51 -1.4542
(Source: secondary data)
INFERENCE: The above table 4.1 shows the Net Profit Ratio position of the Mahindra
and Mahindra ltd. The Net Profit Ratio was ranges from -1.4542 to7.5470 during the
study period 2016 to 2020.
Figure 4.1
Net profit ratio
2016 2017 2018 2019 2020

-1
-2
28
Table 4.2
Gross profit ratio
Year Gross Profit Net Sales Ratio (%)
2016 7,235.90 75,841.42 9.54
2017 7,816.47 83,773.05 9.33
2018 9,870.04 92,093.95 10.72
2019 11,270.77 1,04,720.68 10.76
2020 7,562.21 95,179.09 7.95

INFERENCE: The above table 4.2 shows the Gross Profit Ratio position ofthe
Mahindra and Mahindra ltd . The Gross Profit Ratio was ranges from 7.95 to 10.72
during the study period 2016 to 2020
Figure 4.2
Gross Profit Ratio

12.00
10.00
8.00
6.00
4.00
2.00
0.00
2016 2017 2018 2019 2020
29
Table 4.3
Operating profit ratio
Year Operating profit Net sales Operating profit

ratio
2016 12695.55 75841.42 16.7396
2017 17882.96 83773.05 21.34691
2018 17592.51 92093.95 19.10279
2019 12811.44 104720.68 12.23392
2020 11481.27 95179.09 12.06281
INFERENCE: The above table 4.3 shows the Operating Profit Ratio position of the
Mahindra and Mahindra ltd. The Operating Profit Ratio was ranges from 12.06281 to
21.34691 during the study period 2016 to 2020
Figure 4.3
Operating Profit Ratio

25
20
15
10
2016 2017 2018 2019 2020
30
Table 4.4
Operating Ratio
Year Operating cost Net sales Operating ratio
2016 47567.5 79382.8 59.92167
2017 53454.1 87279.4 61.24481
2018 56820.5 91941.5 61.80071
2019 64342.4 103015 62.45925
2020 57540.6 93764.5 61.36715
INFERENCE: The above table 4.4 shows the Operating Ratio position of the Mahindra
and Mahindra ltd. The Operating Ratio was ranges from 61.36 to
61.80 during the study period 2016 to 2020
Figure 4.4
Operating Ratio
63
62.5
62
61.5
61
60.5
60
59.5
59
58.5
2016 2017 2018 2019 2020
31
Table 4.5
Return on Net Worth/Equity
Shareholder’s Return on equity

Year Net income
equity ratio
2016 3,148.43 26492.65 11.88
2017 3,698.04 29737.99 12.43
2018 7,510.39 36775.19 20.42
2019 5,315.46 39983.41 13.29
2020 127.04 39969.31 00.31
INFERENCE: The above table 4.5 shows the Return on Equity Ratio position of the
Mahindra and Mahindra ltd . The Return on Equity Ratio was ranges from 0.31 to 20.42
during the study period 2016 to 2020.
Figure 4.5
Return on Equity Ratio

0.25
0.2
0.15
0.1
0.05
2016 2017 2018 2019 2020
32
Table 4.6
Return on assets (ROA)
Year Profit after tax Total Assets ROA
2016 3,148.43 100632.08 3.1287
2017 3,698.04 114742.15 3.2229
2018 7,510.39 137210.91 5.4736
2019 5,315.46 163391.57 3.2532
2020 127.04 167006.66 0.0761
INFERENCE: The above table 4.6 shows the Return on Asset Ratio positionof the
Mahindra and Mahindra ltd. The Return on Asset Ratio was ranges from 0.076 to 3.253
during the study period 2016 to 2020
Figure 4.6
Return on Asset Ratio

8,000.00
7,000.00
6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
0.00
2016 2017 2018 2019 2020
33
Table 4.7
Return on capital employed
Year EBIT Capital ROCE

employed
2016 8161.84 63988.54 12.76
2017 8652.21 74909.68 11.55
2018 10577.19 88061.37 12.01
2019 12301.35 104648.2 11.75
2020 8650.57 112997.1 7.65
INFERENCE: The above table 4.7 shows the Return on Capital Employed Ratio
position of the Mahindra and Mahindra ltd. The Return on Capital Employed Ratio was
ranges from 7.65 to 12.76 during the study period 2016 to2020
Figure 4.7
ROCE
14
12
10
2016 2017 2018 2019 2020
34
Table 4.8
Liquidity Ratios
Current Ratio
Year Current asset Current liability Current ratio
2016 43,911.20 36,643.54 1.198334
2017 48,787.76 39,832.47 1.224824
2018 59,076.02 49,149.54 1.201965
2019 69,406.04 58,743.33 1.181514
2020 64,045.43 54,009.52 1.185817
INFERENCE: The above table 4.8 shows the Current Ratio position of the Mahindra
and Mahindra ltd. The Current Ratio was ranges from 1.18 to 1.19during the study
period 2016 to 2020
Figure 4.8
Current Ratio
1.23
1.22
1.21
1.2
1.19
1.18
1.17
1.16
1.15
2016 2017 2018 2019 2020
35
Table 4.9
Liquid ratio
Year Liquid asset Current Liquid ratio

liabilities
2016 34794.88 36643 0.949564
2017 39900.99 39832 1.001732
2018 49740.43 49149 1.012033
2019 57205.84 58743 0.973832
2020 52933.14 54009 0.98008
INFERENCE: The above table shows the Liquid Ratio position of the Mahindra and
Mahindra ltd. The Liquid Ratio was ranges from 0.9738 to 1.0120 during the study
period 2016 to 2020.
Figure 4.9
Liquid ratio
1.02
1.01
0.99
0.98
0.97
0.96
0.95
0.94
0.93
0.92
0.91
2016 2017 2018 2019 2020
36
Table 4.10
Comparative balance sheet
Table showing comparative balance sheet of the financial year 2015 and 2016
Absolute
Particulars 31.03.2015 31.03.2016 change % change
Equity and liabilities
Minority interest 5892.23 5,920.20 27.97 0.47
Shareholders fund 25856.38 26,492.65 636.27 2.46
Non-current liabilities 29362.57 31,575.69 2213.12 7.54
current liabilities 33732.8 36,643.54 2910.74 8.63
Total equity and

94843.98 1,00,632.08 5788.1 6.10
liabilities
Assets
Non-Current assets 55093.87 56,720.88 1627.01 2.95
current assets 39750.11 43,911.20 4161.09 10.47
Total assets 94843.98 1,00,632.08 5788.1 6.10
In the financial year 2016, the non-current and the current assets increased by 2.96%
and 10.47% respectively. Minority interest increased by 0.47%. shareholder’s fund
increased by 2.46%.While non-current liabilities increased by 7.54%.
37
Table 4.11
Particulars 31.03.2016 31.03.2017 Absolute % change

change
Minority interest 5,920.20 6356.9 436.70 7.38
Shareholders fund 26,492.65 29,737.99 3,245.34 12.25
Non-current liabilities 31,575.69 38,814.79 7,239.10 22.93
current liabilities 36,643.54 39,832.47 3,188.93 8.70
Total equity and

liabilities 1,00,632.08 1,14,742.15 14,110.07 14.02
Assets
Non-Current assets 56,720.88 65,954.39 9,233.51 16.28
current assets 43,911.20 48,787.76 4,876.56 11.11
Total assets 1,00,632.08 1,14,742.15 14,110.07 14.02
and 11.11% respectively. Minority interest increased by 7.38%. Shareholder’s fund
increased by 12.25%.While non-current liabilities increasedby 22.93%.
38
Table 4.12

change
Minority interest 6356.9 8,250.47 1,893.57 29.79
Total equity and

1,14,742.15 1,37,210.91 22,468.76 19.58
liabilities
Assets
current assets 48,787.76 59,076.02 10,288.26 21.09
Total assets 1,14,742.15 1,37,210.91 22,468.76 19.58
increased by 23.66%.While non-current liabilities increasedby 10.87%.
39
Table 4.13

change
Minority interest 8,250.47 8,360.57 110.10 1.33
Total equity and

liabilities 1,37,210.91 1,63,391.57 26,180.66 19.08
Assets
current assets 59,076.02 69,406.04 10,330.02 17.49
Total assets 1,37,210.91 1,63,391.57 26,180.66 19.08
increased by 8.72%. While non-current liabilities increased by 30.83%.
40
Table 4.14

change
Minority interest 8,360.57 7,691.74 -668.83 -8.00
Shareholders fund 39,983.41 39,969.31 -14.10 -0.04
current liabilities 58,743.33 54,009.52 -4,733.81 -8.06
Total equity and

liabilities 1,63,391.57 1,67,006.66 3,615.09 2.21
Assets
Non-Current assets 93,985.53 1,02,961.23 8,975.70 9.55
current assets 69,406.04 64,045.43 -5,360.61 -7.72
Total assets 1,63,391.57 1,67,006.66 3,615.09 2.21
In the financial year 2020, the non-current asset increased by 9.55% and the current
assets decreased by 7.72%. Minority interest decreased by 8.00%. Shareholder’s fund
decreased by 0.04%. While non-current liabilities increasedby 16.04%.
41
CHAPTER – 5
FINDINGS, SUGGESTIONS & CONCLUSION
42
FINDINGS
1. The important findings of the study are:
2. The net profit ratio shows an increasing trend in first 3 years then started to
declining.
3. The current ratio of the company shows a fluctuating trend in the five years.
Generally the company having a standard current ratio 2:1 therefore the Company’s
position is not good.
4. The liquidity ratio also shows a fluctuating trend. It decreased from 2018 to 2019 then
increased in 2020 but it fails to satisfy the standard ratio 1:1
5. Gross profit ratio shows a fluctuating trend. It decreased from 2016 to 2017then
increased in 2018 to 2019 and then decreased in 2020
6. Operating profit ratio shows upward trend in first 2 years from 2016 to 2017then it
started to decline.
7. Operating ratio increased in first 4 years from 2016 to 2019. Then itdecreased in
2020
8. Return on equity ratio shows a positive ratio which increases from 11.88 in2016
to 20.42 in 2018.Then it decreased in 2019 and 2020
9. Return on asset ratio shows an upward trend in first 3 years and decreasedin
2019 and 2020. Highest ratio shows in the year 2018 with 5.47
43
10. Return on capital employed ratio shows a fluctuating trend which decreases from
2016 to 2017 then it started increase in 2018, and started falling in 2019 and 2020.
The ratio measures how well a company is
11. generating profits from its capital.
12. Total assets has been increased by 6.10, 14.2, 19.58, 19.08 respectively in the years
from 2016 to 2019 and in 2020 in falls to 2.21
13. While comparing the balance sheets it is found that shareholder’s funds has been
shown changes like 2.46, 12.25, 23.66, 8.72, -0.04 in the years 2016 to 2020
44
SUGGESTIONS
1. More focus towards the efficiency of the company
2. Improving management quality with adoption of new methodologies that

reduce operating cost
3. Working capital management is to be effectively managed to increase the

liquidity position of the company
4. Revise management of capital employed through equity to generate more

Returns
45
CONCLUSION
The study was conducted with the main objective of analyzing the profitability position
of Mahindra and Mahindra ltd over the last five years from 2016 to2020. It is found
that ratios are calculated from the financial statements’ whichare prepared as desired
by the management and policies adopted ondepreciation and stock values and thus
produce only a collection of facts expressed in monetary term and cannot produce
complete and authentic pictureof the business and also may not highlight other
factors which affectsperformance. profitability ratios show an increasing trend in first
3 years and itdeclines thereafter however it covers the standard net profit ratio of 5-
10%. The company profits are coming down in last two years. The company is
becominginefficient in the utilization and application of resources to get maximum
return. So this is the right time to revise their policies to overcome the decreasein
returns. It is better to change the strategies on sales and in managing cost of the
company.
46
BIBLIOGRAPHY
47
BIBLIOGRAPHY
BOOKS:
[1] Agarwal, M.P., Analysis of Financial Statements, National Publishing
House, New Delhi, 1981
[2] Batty, Management accounting, McConald and Evens Ltd., 1970
[3] Pandey I M, Financial Management, Vikas publishing house
[4] A Vinod, ‘Accounting for Management’ Calicut university
[5] Dr. S. P.Gupta, ‘management accounting’ SahithyaBhavan publications
WEBSITE
1.www.mahindra.com
2.www.wikipedia.org
3.www.moneycontrol.com
Journals
1-A study on the productivity of Mahindra and Mahindra financial service (vol7)
2-‘Mahindra and Mahindra archives’ by csr journals
48
ANNEXURE
49
50
51
52
53
54
55
56
57
58
59

Muthuvel Project 22-4-2003

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Muthuvel Project 22-4-2003

Uploaded by

Copyright:

Available Formats

“A STUDY OF PROFITABILITY ANALYSIS OF

MANINDRA AND MAHINDRA LTD”

VELS INSTITUTE OF SCIENCE, TECHNOLOGY AND ADVANCED STUDIES (VISTAS)

In partial fulfillment of the requirement

Under the guidance of

DEPARTMENT OF COMMERCE (GENERAL)

K.MUTHUVEL (Reg.No.: 20130325) a student of B.Com, Department of Commerce, VELS

INSTITUTE OF SCIENCE TECHNOLOGY AND ADVANCED STUDIES hereby,

declare that the project work titled on “A STUDY OF PROFITABILITY ANALYSIS OF

Dr. P.VIJAYASHREE (General) VELS INSTITUTE OF SCIENCE TECHNOLOGY AND

This is to certify that project report “A STUDY OF PROFITABILITY ANALYSIS OF

Dr. P.Vijayashree Dr. P.Jagadeesan

INTERNAL EXAMINER HEAD OF THE DEPARTMENT

I shall be much grateful thanks to Dr. ISHARI K GANESH, CHANCELLOR,VELS

I shall be much grateful thanks to Vice Chancellor, Registrar, Controller of

I extend my gratitude towards Dr.P. JAGADEESAN, M.com, M.Phil, PhD

I express my sincere thanks Dr. P.VIJAYASHREE, Vels Institute of Science

I also thank to all of the staff members of department of commerce, VELS

CHAPTER NO. TITLE PAGE NO.

CHAPTER 2 REVIEW OF LITERATURE 5-16

CHAPTER 3 THEORETICALFRAME WORK 17-25

DATA ANALYSIS AND

TABLENO. TITLE PAGE NO.

4.1 Net profit ratio 28

4.2 Gross profit ratio 29

4.3 Operating profit ratio 30

4.4 Operating ratio 31

4.5 Return on equity. 32

4.6 Return on assets 33

4.7 Return on capital employed 34

4.8 Current ratio 35

4.9 Liquid ratio 36

Comparative balance sheet of financial year 2015

Comparative balance sheet of financial year 2016

Comparative balance sheet of financial year 2017

Comparative balance sheet of financial year

Comparative balance sheet of financial year

4.1 Chart showing net profit ratio 28

4.2 Chart showing gross profit ratio 29

4.3 Chart showing operating profit ratio 30

4.4 Chart showing operating ratio 31

4.5 Chart showing return on equity 32

4.6 Chart showing return on assets 33

4.7 Chart showing return on capital employed 34

4.8 Chart showing current ratio 35

4.9 Chart showing liquid ratio 36

The analysis of financial statement is a process of evaluating the relationship between

Objectives of the study

➢ To analyse overall profitability of Mahindra and Mahindra Limited overthe

➢ Achieve the overall financial position of the company

➢ 1.5.2 Nature of data :- The present study is based on secondary data

Tools for Analysis

"Financial performance is scientific evaluation of profitability and financial strength of any

Financial Efficiency is a measure of the organization's ability to translate its financial

Financial Performance Analysis

Objectives of Ratio Analysis

➢ To study the short term solvency of a firm.

Net profit ratio

Net Profit /Net Sales *100

Gross profit ratio

Formula: Gross Profit / Net Sales *100

Operating profit ratio

Operating Profit Ratio = Operating Profit/Net sales * 100