a report on analysis of published financial statement of mahindra and mahindra limited

7/24/2019 A REPORT ON ANALYSIS OF PUBLISHED FINANCIAL STATEMENT OF MAHINDRA AND MAHINDRA LIMITED.

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M.COM SEMESTER – I ROLL NO. 65

PROJECT REPORT

TITLE OF THE PROJECT

A REPORT ON ANALYSIS OF PUBLISHED FINANCIAL STATEMENT OF

MAHINDRA AND MAHINDRA LIMITED.

SUBMITTED TO:

JAI HIND COLLEGE

‘A’ ROAD, CHRUCHGATE, MUMBAI – 400020, MAHARSHTRA

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT

FOR THE AARD OF THE DEGREE OF

MASTER OF COMMERCE !A"#. A$$%&'()'$*+

SUBMITTED BY:

HARSH TANANI

MASTERS OF COMMERCE – ADANCED ACCOUNTANCY

SEMESTER – I

ACADEMIC YEAR 20-/-

JAI HIND COLLEGE, MUMBAI.

SUBMITTED THROUGH:

PROF. SANTOSH GHAG

MONTH AND YEAR OF SUBMISSION:

OCTOBER, 20-

M.COM SEMESTER / I

ADANCED FINANCIAL ACCOUNTING

P a g e 1 | 44




CERTIFICATE

T13 3 (% $5(6* (1)( MR. H)531 T)'7)' %6 M.C%8 !A"#)'$" A$$%&'()'$*+

S83(5 – I !A$)"8$ *)5 20- – -+ 1)3 3&$$336&99* $%89(" (1 5%;$(

((93 <A REPORT ON ANALYSIS OF PUBLISHED FINANCIAL

STATEMENT OF MAHINDRA AND MAHINDRA LIMITED.= &'"5 (1

>&")'$ %6 PROF. SANTOSH GAGH

DR. ASHO? ADIA PROF. SANTOSH GHAG

!PRINCIPAL+ !COORDINATOR+

DATE: DATE:

PLACE: MUMBAI PLACE: MUMBAI

S>')(&5 %6 E@(5')9 PROF. SANTOSH GHAG

E@)8'5 !SUPERISOR+

DATE: DATE:


COLLEGE SEAL

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DECLARATION

I, MR. HARSH TANANI, 15* "$9)5 (1)( I 1)# 3&$$336&99* $%89("

(1 5%;$( ((93 <A REPORT ON ANALYSIS OF PUBLISHED FINANCIAL

STATEMENT OF MAHINDRA AND MAHINDRA LIMITED.= 3 )' %5>')9

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%6 3(&"*.

PROF. SANTOSH GHAG HARSH TANANI

!SUPERISOR+ !STUDENT+

DATE: DATE:


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AC?NOLEGDEMENT

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T)9 %6 C%'('(3

Sr. no Title Page no.

E@$&(# S&88)5* 7

Ch. 1

1.1

1.2

1.3

1.4

1.5

INTRODUCTION TO MAHINDRA MAHINDRA LIMITED

Introduction

History

Visions Missions and Values

ey Personnel

S!"T #nalysis

$

%

1&

12

13

14

Ch. 2

2.1

2.2

2.3

REIE OF LITERATURE

Introduction

#rticles

#rticles on Mergers and #c'uisitions

15

1(

1(

1%

Ch. 3

3.1

3.2

3.3

ANNUAL REPORT OF MAHINDRA AND MAHINDRA LIMITED

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4.2

4.3

4.4

4.5

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4.1&

4.11

4.12

4.13

4.14

4.15

RATIOS OF MAHINDRA AND MAHINDRA LIMITED

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Ch. 5 CONCLUSION42

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BIBLIOGRAPHY 43

E@$&(# S&88)5*

Sta)ili*ation and reco+ery are the t,o ,ords that )est characteri*e India-s

econoic /er0orance in the inancial ear 2&1415. Su//orted )y )enign /rices

across the coodity co/le 0ood6 etals and crude oil6 the country-s acros

,itnessed a shar/ and reassuring consolidation. The center-s 0iscal de0icit dro//ed

to 4.1 0ro 4.4 a year ago and is set to consolidate 0urther in the currentinancial ear. The country-s )alance o0 /ayents registered a healthy sur/lus6

,hile the current account de0icit cae in )elo, 2 o0 89P 0or the second year in

succession. urtherore6 consuer /rice in0lation is currently trending around the

5 ar:6 a shar/ dro/ 0ro the entrenched dou)le digit /rice acceleration

e/erienced during the last cou/le o0 years and considera)ly )elo, the $ target

that the ;<I had set 0or itsel0 a year ago. The latter-s onetary stance has6

conse'uently6 eased considera)ly and ay ease 0urther in the coing onths.

=conoic acti+ity6 at the sae tie6 ,itnessed a steady6 al)eit slo,6 reco+erythrough the year. !hile the regulatory and /rocedural re0ors underta:en )y the

ne, 8o+ernent since ta:ing o00ice in >une last year did hel/ i/ro+e the

)usiness cliate /re+ailing in the country6 ,ea: deand continued to constrain

/ri+ate sector acti+ity 0or the second year in succession. !ith glo)al gro,th across

de+elo/ed and eerging ar:ets reaining )elo, /ar in 2&146 eternal deand

reained te/id and unins/iring through the year. #t the sae tie6 a /oor onsoon

season cou/led ,ith )enign 0ood /rices se+erely constrained rural incoes and

doestic deand. The one )right s/ot ,as the turnaround in in+estent /lans and

e/enditures signaled )y the shar/ /ic: u/ in ca/ital goods /roduction and ne, /ro?ect announceents in the second hal0 o0 2&14156 ,hich /ortends ,ell 0or

0uture gro,th.

Ho,e+er6 e+en aidst this scenario6 your Co/any deonstrated resilience to

econoic cycles ,ith a decline o0 only 3.47 in net incoe at ;s. 3%67%4 crores in

the year under re+ie, as against ;s. 41622( crores in the /re+ious year.

P a g e 7 | 44




The Pro0it 0or the year )e0ore 9e/reciation6 inance Costs6 =ce/tional ites and

Taation recorded a decrease o0 7.(7 at ;s. 56&22 crores as against ;s. 5643%

crores in the /re+ious year. Siilarly6 Pro0it a0ter ta declined )y 11.(2 at ;s.

36321 crores as against ;s. 3675$ crores in the /re+ious year.

1INTRODUCTION TO MAHINDRA MAHINDRA LIMITED

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1INTRODUCTION TO MAHINDRA MAHINDRA LIMITED

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Mahindra and Mahindra 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 he !rand rust "eport, India #tudy

$01%. It was ranked $1st in the list of top companies of India in &ortune India '00 in $011.

Its ma(or competitors in the Indian market include Maruti #u)uki, ata Motors, *shok

leyland, oyota, +yundai, Mercedes!en) -Merc and others.

he /ompanys business segments include *utomotive #egment that comprises of sale of

automobiles, spare parts and related services and &arm quipment #egment, which includes sale of

tractors, spare parts and related services. Its subsidiaries include ech Mahindra 2imited, Mahindra

3 Mahindra &inancial #ervices 2imited, Mahindra Investments -India 4rivate 2imited, and Mahindra

Investments -International 4rivate 2imited etc.

P a g e 9 | 44




-.2 H3(%5* %6 M)1'"5) M)1'"5)

Mahindra 3 Mahindra was established on 5ctober $, 16%' when 7./. Mahindra visited the 8nited

#tates of *merica as /hairman of the India #upply Mission. +e met !arney "oos, inventor of the

rugged 9general purpose vehicle9 or :eep and had a flash of inspiration; wouldn9t a vehicle that had

proved its invincibility on the battlefields of <orld <ar II be ideal for India9s rugged terrain and its

kutcha rural roads. #wift action followed thought. he Mahindra brothers (oined hands with a

distinguished gentleman called Ghulam Mohammed. *nd, Mahindra 3 Mohammed was set up as a

franchise for assembling (eeps from <illys, 8#*.

wo years later, India became an independent nation and Mahindra 3 Mohammed changed its name

to Mahindra 3 Mahindra. Ghulam Mohammed migrated to 4akistan post=partition and became the

first &inance Minister of 4akistan.

Mahindra 3 Mahindra is the only Indian company among the top three tractor manufacturers in the

world. he Group has a leading presence in key sectors of the Indian economy. he Group employs

over '0,000 people and has several state=of=the=art facilities in India and overseas.

Mahindra 3 Mahindra has comprehensive manufacturing facilities with high level of vertical

integration. /atering to the #ector9s diverse customer base spanning rural and semi urbancustomers, defense requirements and lu>urious urban utility vehicles or #8?s. hese manufacturing

plants keep abreast with the latest technology to meet the growing market e>pectations. hese

manufacturing facilities have some of the best technologies and equipment in India and provide for a

very challenging and satisfying work environment. Its plants in Mumbai and @asik manufacture

multi=utility vehicles and engines are produced at the Igatpuri plant. 8tility ?ehicles, 2ight

commercial vehicles and A wheelers are manufactured at the Baheerabad plant in *ndhra 4radesh

and three=wheelers at the +aridwar plant.

The business area of the company spreads to:

Automotive sector

he company manufactures 3 markets utility vehicles, light commercial vehicles that includes three

wheeler vehicles, namelyC #corpio, !olero, /hampion and many more. he company also e>ports its

products to several countries in urope, *frica, #outh *merica, #outh *sia and the Middle ast.

M3M has a tie up with "enault for production 3 marketing of 2ogan. Mahindra International is into

P a g e 10 | 44




producing trucks and buses. he company has entered into a (oint venture with @avistar for

production of diesel engines 3 trucks.

Farm equipment

M3M9s farm equipment segment has presence in si> continents and has a worldwide network of D00

dealers .Its total combined production capacity is 1,'0,000 tractors a year from countries like India,

8#*, /hina and *ustralia. he company is also into agriculture business.

Trade, Retail & Finance

Mahindras Intertrade Eivision provides steel 3 steel related services. It offers steel raw materials,

metals, ferro alloys, etc. It also processes /old "olled Grain 5riented -/"G5 and /old "olled @on

Grain 5riented -/"@G5 steels that are required for transformers 3 compressors. Mahindra "etails

is into distribution business and has tie up with big names like 2ego, Eisney, Mattel and others.

Mahindra &inance is into financing of tractors and other vehicles and is also into Insurance broking.

Infrastructure

M3M has also entered Infrastructure development that operates in real estates, #Bs, hospitality,

pro(ect engineering and design. 8nder this it has created Mahindra +oliday 3 "esorts, Mahindra 2ife

spaces 3 Mahindra <orld /ity.

Information Technology

ech Mahindra provides solutions 3 services to telecommunication ma(ors namely *lcatel, *3,

!, /onvergys, ricsson and 5$, among others. It is also into business process and technology

consulting services through !ristle.

ystech

It is into supply of automotive components. It produces forged and forged F machined components,

gears and composites.

pecialty !usiness

8nder this division it has companies like Mahindra Eefense, engaged in manufacturing defense

related vehicles 3 Mahindra *shtech.

-. 3%'3 M33%'3 )'" )9&3

P a g e 11 | 44




3%'

The +ision o0 the co/any is to )e the @Aeading inde/endent /layer in the glo)al 8ears B

Transissions S/ace-.

This ,e ,ish to achie+e through a t,o /ronged a//roach o0 de+elo/ing a /ort0olio o0 /roductsthere)y )eing a)le to /ro+ide a di00erentiated /roduct o00ering to our custoers and etensi+e

0ocus on o/erational ecellence there)y i/ro+ing internal e00iciencies in the syste.

M33%'

"ur Core /ur/ose is deri+ed 0ro the Mahindra 8rou/-s /ur/ose

!e ,ill challenge con+entional thin:ing and inno+ati+ely use all our resources to dri+e /ositi+e

change in the li+es o0 our sta:eholders and counities across the ,orld6 to ena)le the to ;ise.

)9&3

!e are go+erned )y the Core +alues o0 the Mahindra 8rou/. They are an aalgaation o0 ,hat

,e ha+e )een6 ,hat ,e are and ,hat ,e ,ant to )e. These +alues are the co/ass that guides our

actions6 )oth /ersonal and cor/orate. They are

• G%%" C%5%5)( C('31: !e ,ill continue to see: long ter success in alignent

,ith the needs o0 the counities ,e ser+e. !e ,ill do this ,ithout co/roising on

ethical )usiness standards.

• P5%633%')938: !e ha+e al,ays sought the )est /eo/le 0or the ?o) and gi+en the the

0reedo and the o//ortunity to gro,. !e ,ill continue to do so. !e ,ill su//ort

inno+ation and ,ellreasoned ris: ta:ing6 )ut ,ill deand /er0orance.

• C&3(%85 653(: !e eist and /ros/er only )ecause o0 the custoer. !e ,ill res/ond to

the changing needs and e/ectations o0 our custoers s/eedily6 courteously and

e00ecti+ely.

• Q&)9(* 6%$&3: Duality is the :ey to deli+ering +alue 0or oney to our custoers. !e

,ill a:e 'uality a dri+ing +alue in our ,or:6 in our /roducts and in our interactions ,ith

others. !e ,ill do it Eirst Tie ;ight.E

P a g e 12 | 44




• D>'(* %6 (1 '"#"&)9: !e ,ill +alue indi+idual dignity6 u/hold the right to e/ress

disagreeent and res/ect the tie and e00orts o0 others. Through our actions6 ,e ,ill

nurture 0airness6 trust6 and trans/arency

S.N% N)8 D3>')(%'

1 #nand 8 Mahindra Chairan

2 #nand 8 Mahindra Managing 9irector

3 Pa,an 8oen:a =ecuti+e 9irector

4 9ee/a: S Pare:h Fon=ecuti+e Inde/endent 9irector

5 Fadir < 8odre? Fon=ecuti+e Inde/endent 9irector

( M M Muruga//an Fon=ecuti+e Inde/endent 9irector

7 ; ul:arni Fon=ecuti+e Inde/endent 9irector

$ #nu/a Puri Fon=ecuti+e Inde/endent 9irector

% Visha:ha F 9esai Fon=ecuti+e Inde/endent 9irector

1& Vi:ra Singh Mehta Fon=ecuti+e Inde/endent 9irector

11 S < Maina: Foinee 9irector AIC

12 Farayan Shan:ar Co/any Secretary

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P a g e 13 | 44



S T R E N G T H S

M a h i n ! a h a " # e e n $ n e $ % & h e " & ! $ n g e " & # ! a n " i n & h e I n i a n a ' & $ ( $ # i ) e ( a ! * e &

M a h i n ! a g ! $ ' + g i , e " e ( + ) $ - ( e n & & $ $ , e ! 1 1 0 0 0 0 e ( + ) $ - e e "

E / e ) ) e n & # ! a n i n g a n a , e ! & i " i n g a n ) $ a % & e ! " a ) e " " e ! , i e $ " -

S & ' ! - S 2 3 4 " g $ $ % $ ! I n i a n ! $ a " a n $ 5 6 ! $ a & e ! ! a i n

WEAKNESS

Mahin!a" +a!&ne!"hi+ i&hRena')& i n$& )i,e '+ &$

in&e!na&i$na) 'a)i&- "&ana!"&h!$'gh &hei! #!an L$gan

OPPORTUNITIES

e,e)$+ing h-#!i a!" an%'e) eien& a!" %$! &he

%'&'!e

Ta++ing e(e!ging (a!*e&"a!$"" &he $!) an #'i)ing

a g)$#a) #!an

:a"& g!$ing a'&$($#i)e(a!*e&

;!$ing in &he (a!*e& &h!$'ghe)e&!i a! RE< =$n&!$))ing

"&a*e> an en&!- in&$ &$hee)e! "eg(en&

T H R E A T S

; $ , e ! n ( e n & + $ ) i i e " % $ ! & h e a ' & $ ( $ # i ) e " e & $ ! a ! $ " " & h e

$ ! )

E , e ! i n ! e a " i n g % ' e ) + ! i e "

I n & e n " e $ ( + e & i & i $ n % ! $ ( g ) $ # a ) a ' & $ ( $ # i ) e # ! a n "

S ' # " & i & ' & e ( $ e " $ % + ' # ) i & ! a n " + $ ! & ) i * e # ' " e " ( e & ! $

& ! a i n " e & .

S?OT


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2REIE OF LITERATURE

2.- I'(5%"&$(%'

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2. A5($93 %' M5>53 )'" A$&3(%'3 %6 M)1'"5) )'" M)1'"5)

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2REIE OF LITERATURE

2.- I'(5%"&$(%'

ey,ord search on GMahindra and Mahindra GMergers and #c'uisitions o0

Mahindra and Mahindra in +arious data)ases li:e =erald insights6 google

scholar6 trade 0oru6 and c gro,ing glo)al6 research and ar:ets6 /ro0it ndt+6reuters6 0ound e the 0ollo,ing articles and case studies.

2.2 A5($93 %' M)1'"5) )'" M)1'"5)

-+ H%7 M)1'"5) M)1'"5) $)8 (% "%8')( (1 I'")' )&(%8%(#

'"&3(5* )y F Madha+an or)es IndiaJ

<y 0ocusing on /roduct de+elo/ent and ta:ing un/recedented ris:s6 Pa,an

8oen:a has ensured that Mahindra B Mahindra not only sur+i+es co/etition and

doinates the Indian ar:et6 )ut is also ready to ta:e on the ,orld.

"h 8od6 ,hat ha+e I doneK ,ondered Pa,an 8oen:a as he stood in 0ront o0

Mahindra B Mahindra-s research and de+elo/ent ;B9J 0acility in Fashi:6

Maharashtra. It ,as "cto)er 136 1%%36 his 0irst day on the ?o) as general anager

;B9J. He had ?ust returned 0ro 9etroit to India a0ter a 14year stint ,ithP a g e 16 | 44




8eneral Motors6 ,here he ,as anaging the ,orld-s thenlargest cara:er-s

engine design and de+elo/ent.

He had not e/ected MBM-s ;B9 in0rastructure to atch that o0 8eneral Motors

,hich6 in the early 1%%&s6 had an annual )udget o0 L1 )illion as ,ell as a tea o02&6&&& engineers s/read across ulti/le locations. <ut neither ,as 8oen:a

/re/ared 0or the ground reality in Fashi:. Consider that the research 0acility ,as

erely a shed and had only 5& engineers. GI ust adit that the starting /oint ,as

a lot less than ,hat I had iagined6 says 8oen:a6 ,ho is no, eecuti+e director

and /resident autooti+e B 0ar e'ui/ent sectorsJ o0 the Mahindra grou/.

T,entyone years on6 MBM-s re+enue has risen 25 ties to ;s 436$3$ crore 0ro

;s 16715 crore /ro0its ha+e gone u/ 55 ties to ;s 3675$ crore 0ro ;s ($ crore atthe tie. The autooti+e and 0ar e'ui/ent )usiness accounts 0or close to ((

/ercent o0 its o+erall re+enues.J #lso6 the co/any has )ecoe the largest tractor

anu0acturer in the ,orld a/art 0ro doinating the Indian SNV ar:et in ,hich

alost e+ery a?or glo)al cara:er is 0ighting 0or a share. The ost signi0icant

change has )een this ;iding on strong /roduct de+elo/ent a)ilities6 MBM has

anaged to launch se+eral success0ul /roducts during this /eriod.

Fot that 8oen:a6 then 3$6 could ha+e /redicted this outcoe at the tie. He ,as

a:ing his coe)ac: to India ,ith the )road /lan o0 hel/ing )uild a hoegro,n

co/any. #nd his eeting ,ith #nand Mahindra6 then de/uty anaging director

o0 MBM6 had deterined his ?ourney. Mahindra told hi ho, the country-s

econoic li)eralisation and /otential co/etition 0ro glo)al /layers had le0t

MBM6 a a:er o0 /ic:u/ truc:s and ?ee/s 0or the rural ar:et6 ,ith three o/tions

=it the autooti+e sector6 )ecoe a licenced anu0acturer 0or another co/any

or de+elo/ o,n /roducts. G!e ha+e chosen to de+elo/ our o,n /roducts and

co/ete ,ith the ,orld. I a loo:ing 0or soe)ody to underta:e this )ig tas:. ou

,ill ha+e all the 0reedo. >ust gi+e e a /roduct in a reasona)le tie6 Mahindra

had told hi.

P a g e 17 | 44




2J M)1'"5) )'" M)1'"5) 8)* 3)93 "%7' F9TVJ

Fe, 9elhi Mahindra B Mahindra on Monday re/orted a 3 /er cent decline in

total sales at 3(67&( units in May.

The auto a:er co/any had sold 376$(% units in the sae onth last year6 it said

in a stateent.

In the doestic ar:et6 its sales ,ere do,n ( /er cent at 3363(% units last onth as

against 3564%% units in the sae onth o0 last year.

=/orts ,ere u/ 4&.$ /er cent at 36337 +ehicles as against 2637& units in the sae

/eriod a year ago.

Sales o0 /assenger +ehicles6 including Scor/io6 ONV 5&&6 Oylo6 <olero and Verito6

stood at 1$6135 units as co/ared to 1%647& units in May 2&146 do,n (.$5 /er

cent.

Coercial +ehicle sales ,ere do,n 7.23 /er cent to 1164&7 units last onth

against 1262%7 units in the yearago /eriod6 MBM said.

The auto industry has )een sho,ing signs o0 reco+ery and it is i/ortant that

0actors li:e an interest rate cut i0 considered6 ,ould accelerate gro,th6 MBM

chie0 eecuti+e autooti+e di+isionJ Pra+in Shah said.

#t Mahindra ,e ho/e to see i/ro+ed sentients ,ith higher le+el o0 econoic

acti+ities6 he added.

P a g e 18 | 44




2. A5($93 %' M5>53 )'" A$&3(%'3 %6 M)1'"5) )'"

M)1'"5)

-+ RBI )5%#3 ING *3*)/?%() M)1'"5) 85>5

BS R%5(5 M&8) A5 02, 20-

The ;eser+e <an: o0 India ;<IJ on !ednesday a//ro+ed the erger o0 ota:

Mahindra <an: and IF8 Vysya <an:. ro no, on6 all IF8 )ranches ,ill

0unction as ota: )ranches6 said the central )an:.

The ac'uisition ,ill a:e ota: Mahindra <an: the 0ourth largest /ri+ate sectorlender in the country6 ,ill ha+e a)out 162&& )ranches and a total )usiness o0 ;s

2.25 la:h crore6 as on 9ece)er 2&146 and a co)ined ar:et ca/italisation o0

close to ;s 1.25 la:h crore.

>aiin <hatt6 /resident B grou/ chie0 0inancial o00icer6 ota: Mahindra6 said there

,ould )e a total o0 3&6&&& e/loyees in the )an: a0ter the erger6 ,hile at the

grou/ le+el6 there ,ould )e 4&6&&& e/loyees.

In Fo+e)er 2&146 ota: Mahindra had announced it ,as ac'uiring <engaluru

head'uartered IF8 Vysya in an allstoc: deal.

!ith res/ect to the )ranches6 <hatt said change at signage in IF8 Vysya )ranches

had already )egun and the /rocess ,ould )e co/leted ,ithin a onth. or #TMs6

too6 the sae has started.

"n e/loyee rationalisation6 <hatt said6 they ,ere in a gro,th /hase and ,ould

need /eo/le 0or )ranch e/ansion. G!e ,ill :ee/ gro,ing and ,ould 0irst utilise

our co)ined e/loyee strength )e0ore hiring 0ro eternal sources6 he added.

"n restructuring the eisting )ranch net,or:6 he said the co/any ,ould loo: into

it. In Mu)ai6 9elhi6 <engaluru and Chennai6 the )an: ,ould e/and its )ranch

P a g e 19 | 44




net,or:. It ,ould also loo: at shi0ting )ranches to ne, locations6 i0 necessary6 he

said.

In e)ruary6 the /ro/osed ;s 156&&&crore erger deal )et,een ota: Mahindra

<an: and IF8 Vysya <an: got the Co/etition Coission o0 India-s a//ro+al.

#ccording to the 0air trade regulator6 the erger6 ,hich ,ould create the country-s

0ourth largest /ri+ate sector lender6 ,as Gnot li:ely to ha+e an a//recia)le ad+erse

e00ect on co/etition in India.

The deal i/lies a /rice o0 ;s 7%& 0or each IF8 Vysya share6 )ased on the a+erage

closing /rice o0 ota: shares during the onth to Fo+e)er 1%6 +aluing the deal at

a)out ;s 156&&& crore. That ,as a 1( /er cent /reiu to a li:e easure o0 IF8

Vysya ar:et /rice6 ota: <an: had stated.

#0ter the erger6 the IF8 8rou/6 ,ith a (.4 /er cent sta:e6 ,ill )ecoe the

secondlargest shareholder in the )an:. #ccording to regulations6 ;<I-s a//ro+al is

re'uired 0or an entity other than the /rooter to ha+e ore than 0i+e /er cent sta:e

in a )an:.

2.+ I'")3 M)1'"5) M)1'"5) L(". $%89(3 )$&3(%' %6

8);%5(* 3() ' S3)'>Y%'> M%(%5 C%8)'*

Mahindra B Mahindra Atd. MBMJ6 India-s leading anu0acturer o0 utility

+ehicles6 today announced that it has co/leted all 0oralities related to the

ac'uisition o0 a a?ority sta:e in Ssangong Motor Co/any SMCJ and thatthe co/any is no longer in Court ;ecei+ershi/. Mahindra had eerged as the

/re0erred )idder 0or Ssangong in #ugust 2&1&.

This ar:s the )eginning o0 a ne, ?ourney 0or SMC and ,ill also /a+e the ,ay

0or )oth Mahindra and SMC to eerge as a strong 0orce allied together in the

glo)al /assenger +ehicle industry6 through their strategic /artnershi/.

P a g e 20 | 44




Present on the occasion ,ere Mr. <harat 9oshi6 =ecuti+e 9irector Ba/ 8rou/

C"6 Mahindra Ba/ Mahindra Atd. and 9r. Pa,an 8oen:a ,ho is President o0

Mahindra-s #utooti+e and ar ='ui/ent Sectors. ey o00icials 0ro the

Mahindra 8rou/ and SMC ,ere also /resent.

or Mahindra6 the )iggest )ene0it 0ro this /artnershi/ ,ill )e the o//ortunity to

harness synergies )et,een the t,o co/anies6 ,hile /rotecting their res/ecti+e

)rand identities and ensuring 'uality. To,ards this end6 a Synergy Council

co/rising o0 senior anageent 0ro )oth co/anies ,ill )e esta)lished to

ensure 0ocus and deli+ery o0 synergies )et,een the t,o co/anies. The Council

,ill 0ocus on +arious as/ects such as glo)al /rocureent6 ne, car de+elo/ent

and )usiness strategy to /enetrate international ar:ets.

Strategic /lans such as the India /ro?ect ,hich in+ol+es launching the ;eton and

orandoC in India ha+e already )een :ic:ed o00. #lso under discussion are

o//ortunities 0or ?oint /roduct and technology de+elo/ent and synergy in glo)al

o/erations and /urchase. Mahindra has a strong IT syste that is )eing re+ie,ed

0or suita)ility 0or Ssangong. The co/any is also considering the /ossi)ility o0

Mahindra inance setting u/ o/erations in orea to enhance the sales o0

Ssangong +ehicles.

P a g e 21 | 44




3 ANNUAL REPORT OF MAHINDRA AND MAHINDRA LIMITED

.- D5$(%5’3 R%5(

.2 A&"(%5’3 R%5(

. F')'$)9 S()(8'(

.4 B)9)'$ S1(

. P5%6( )'" L%33

P a g e 22 | 44




3 ANNUAL REPORT OF MAHINDRA AND MAHINDRA LIMITED

.- D5$(%5’3 R%5(

our Co/any continues ,ith its rigorous cost restructuring eercises ande00iciency i/ro+eents ,hich ha+e resulted in signi0icant sa+ings through

continued 0ocus on cost controls and /rocess e00iciencies. Fo aterial changes and

coitents ha+e occurred a0ter the closure o0 the inancial ear 2&1415 till the

date o0 this ;e/ort6 ,hich ,ould a00ect the 0inancial /osition o0 your Co/any.

P56%58)'$ R#7

A&(%8%(# D#3%':

our Co/any-s #utooti+e 9i+ision recorded total sales o0 36%(6534 +ehicles

and 5%64&4 three,heelers as co/ared to 463465&5 +ehicles and (4651& three

,heelers in the /re+ious year registering a decline o0 $.7 in +ehicle sales and a

decline o0 7.% in three,heeler sales. "n the doestic sales 0ront6 your Co/any

sold 26236%($ Passenger Vehicles Qincluding 26&(6$37 Ntility Vehicles NVsJ6

136%47 MultiPur/ose Vehicles MPVsJ and 361$4 CarsR ,hich is a decline o0

11.% o+er the /re+ious year-s +olues o0 26546344 Passenger Vehicles Qincluding

261%6421 NVs6 2561$% MPVs and %6734 CarsR. In the coercial +ehicle segent6

your Co/any sold 16456&1& +ehicles Qincluding 156255 +ehicles 2T 8V! and

162%6755 +ehicles )et,een 23.5T 8V!R registering a decline o0 4.$ o+er the

/re+ious year-s +olue o0 165263%$ coercial +ehicles6 Qincluding 2%6223

+ehicles 2T 8V! and 16236175 +ehicles )et,een 23.5T 8V!R. In the three

P a g e 23 | 44




,heeler segent6 your Co/any sold 5(67(4 three,heelers registering a decline

o0 %.3 o+er the /re+ious year-s +olue o0 (26(14 three,heelers.

or the year under re+ie,6 the Passenger Vehicle PVJ industry has sho,n signs o0

re+i+al6 )ut this has )een /atchy. The Car industry gro,th is largely dri+en )y ne,

launches. our Co/any-s +olue decline in the NV segent is a re0lection o0 the

NV ar:et shi0t to,ards co/act NVs attracting lo,er ecise rates. The 2T

Aight Coercial Vehicle ACVJ industry continues to shrin: and the 2 to 3.5T

ACV industry Pic:N/sJ su00ered due to slo,do,n in #gri incoes and 0inance

a+aila)ility.

our Co/any-s NV sales +olue declined )y 5.76 )ut your Co/any continued

to aintain its leadershi/ /osition in the doestic NV ar:et )y /osting a ar:et

share o0 37.4. 9uring this year6 <olero sales once again crossed the ilestone o01 la:h sales in a year. This is the 0ourth consecuti+e year that <olero has achie+ed

this ilestone. #lso6 <olero retained the title o0 India-s largest selling S/orts Ntility

Vehicle SNVJ 0or the %th consecuti+e year. It is also the 5th highest selling

/assenger +ehicle in India. In Se/te)er6 2&146 the Co/any launched the Fe,

8eneration Scor/io. The Fe, 8eneration Scor/io is )uilt on an all ne, /lat0or

and coes ,ith conte/orary styling and ad+anced technology 0eatures. Fe,

8eneration Scor/io is all set to ta:e the Scor/io )rand to ne, heights. The Scor/io

/osted record sales since launch and strengthened its iconic status ,ith sales o0

o+er 5&6&&& units 0or the 0ourth successi+e year. The ONV5&& continued to )e the

custoer-s choice in the /reiu NV segent ,ith sales o0 o+er 346&&& units in

the year. In the Pi:N/ segent o0 coercial +ehicles ACV 2 to 3.5TJ6 your

Co/any strengthened its leadershi/ /osition ,ith a ar:et share o0 73.3 a gain

o0 %.5 /ointsJ. our Co/any recorded total sales o0 $6%12 coercial +ehicles

Qincluding 56413 ACVs in the ACV 3.5T segent and 364%% HCVs Hea+y

Coercial VehiclesJR ,hich is a gro,th o0 %.2 o+er the /re+ious year-s

+olues o0 $61(1 coercial +ehicles Qincluding 56$7( ACVs in the ACV 3.5T

segent and 262$5 HCVsR. In the "+erseas ar:et6 your Co/any-s +olue gre,1.$ o+er the /re+ious year. !hile the ar:ets o0 Sri Aan:a6 Fe/al6 <angladesh

and <hutan ,itnessed good gro,th6 there ,as a decline in Chile and South #0rica.

9uring the year under re+ie,6 your Co/any sold 27655( +ehicles and 26(4& three

,heelers in the o+erseas ar:et as co/ared to 2767(3 +ehicles Qincluding 452

+ehicles sourced 0ro the erst,hile GTruc:s and <us 9i+ision o0 Mahindra Truc:s

P a g e 24 | 44




and <uses Aiited ,hich su)se'uently got deerged into the Co/anyR and

16$%( three,heelers in the /re+ious year.

S/are /arts sales 0or the year stood at ;s. 16(&%.%& crores including e/orts o0 ;s.

1&4.&4 croresJ as co/ared to ;s. 16427.$1 crores including e/orts o0 ;s. %2.%$

croresJ in the /re+ious year6 registering a gro,th o0 12.$.

Farm Division:

In the inancial ear 2&14156 the Indian tractor industry ,itnessed a stee/ decline

o0 13.1. This ,as on account o0 /oor onsoon 0ollo,ed )y unseasonal rains. The

doestic ar:et recorded sales o0 565&6%(3 tractors as co/ared to (6336(5(

tractors in the /re+ious year. In the 0ace o0 this challenging industry situation6 your

Co/any-s ar 9i+ision including S,ara? 9i+isionJ recorded sales o0 263467((

tractors as against 26($64$7 tractors sold in the /re+ious year6 registering a decline

o0 12.(.

our Co/any-s sales in the doestic ar:et stood at 26216&2& tractors as

co/ared to 265$633% tractors in the /re+ious year6 registering a decline o0 14.4.

Ho,e+er6 your Co/any continues to )e the ar:et leader ,ith a 4& ar:et

share. !ith a +ision to o00er class leading tractors to the Indian 0arer6 your

Co/any launched the technologically ad+anced and stylishly designed #r?un Fo+o. #r?un Fo+o is the 0irst tractor odel to roll out o0 the all ne, high Horse

Po,er HPJ /lat0or6 creating ne, )enchar:s in /er0orance6 technology6

co0ort and ergonoics. #r?un Fo+o )oasts o0 a ,ide array o0 ,orldclass and

category 0irst 0eatures. or the year under re+ie,6 your Co/any e/orted 13674(

tractors registering a gro,th o0 35.5 o+er the /re+ious year. This is the highest

e+er tractor e/orts )y the Co/any. <eyond tractors6 your Co/any has /resence

in cro/ care solutions and distri)ution o0 seeds. The 0ocus o0 this )usiness is to

/ro+ide 'uality in/uts and hel/ i/ro+e 0ar /roducti+ity. In the inancial ear

2&14156 this )usiness sa, a good gro,th o0 4%.( in ters o0 re+enue. In the

/o,er generation s/ace6 under the Mahindra Po,erol <rand6 your Co/any

continues to )e aongst the leaders in the industry. our Co/any earned a

re+enue o0 ;s. $34.5 crores in the current inancial ear as against ;s. 775.5

crores in the /re+ious year6 registering a gro,th o0 7.(. #long ,ith the re+enue

P a g e 25 | 44




gro,th6 your Co/any has i/ro+ed its /resence in the retail segent and ade

good /rogress in the @=nergy Manageent Solutions- s/ace.

S/are /arts sales 0or the year stood at ;s. 54%.43 crores including e/orts o0 ;s.

4$.$4 croresJ as co/ared to ;s. 521.71 crores including e/orts o0 ;s. 3%.%1

croresJ in the /re+ious year6 registering a gro,th o0 5.3.

C&55'( Y)5’3 5#7

9uring the /eriod 1st #/ril6 2&15 to 2$th May6 2&156 5$6%&5 +ehicles ,ere

des/atched as against 5%6243 +ehicles during the corres/onding /eriod o0 the

/re+ious year. 9uring the sae /eriod6 37651% tractors ,ere des/atched as against

436$2( tractors des/atched during the corres/onding /eriod in the /re+ious year.

Aoo:ing ahead6 your Co/any e/ects that the econoic reco+ery6 currentlyunder,ay6 ,ill gather 0urther strength through 2&151(6 led )y a /ic: u/ in ining

and in0rastructural acti+ity. The glo)al econoy6 ,hile ri0e ,ith ris:s6 is 0orecast to

gro, at a 0aster /ace in 2&151(. =/orts6 conse'uently6 are e/ected to /ic: u/

/ace in this inancial ear. !hile rural incoes are di00icult to 0orecast6 the =l

Fino ,arning currently in /lace6 suggests that rural deand ay reain )elo, /ar

this year as ,ell. Ho,e+er6 ulti/lier e00ects 0lo,ing 0ro 8o+ernent and6 to a

saller etent6 /ri+ate sector initiati+es in the in0rastructure s/ace roads6 ining6

/o,er6 rail,ays6 ur)ani*ation and sart cities including /ro?ects already under

i/leentation6 ,ill hel/ sustain deand through the year.

F')'$

The inancial ear 2&1415 ,itnessed di+ergent econoic /er0orance and

onetary /olicies around the ,orld. The Nnited States econoy sa, continued

i/ro+eent ,ith ?o) creation6 the NS ed ended its 'uantitati+e easing D=J

/rogra in "cto)er6 2&14 and is the only econoy aong 82& countries e/ected

to go into an interest rate hi:e cycle. "n the other hand6 stagnant econoic acti+ityand 0alling coodity /rices es/ecially crudeJ /ro/ted central )an:s in =uro/e

and >a/an to e)ar: on D= /rogras. =erging ar:ets ,itnessed a 0all in

gro,th rates6 led )y a slo,do,n in China6 a stee/ contraction in ;ussia and a

recession in <ra*il. # large nu)er o0 central )an:s ha+e cut rates in the 0ourth

'uarter o0 the inancial ear 2&1415 as they 0ight the threat o0 de0lation ,ith the

P a g e 26 | 44




colla/se in crude and other coodity /rices. The latest !orld =conoic "utloo:

)y IM /ro?ects the glo)al gro,th to reain oderate in 2&15. The outloo: 0or

ad+anced econoies is i/ro+ing6 ,hile gro,th in eerging ar:ets and

de+elo/ing econoies is /ro?ected to )e lo,er6 /riarily re0lecting ,ea:er

/ros/ects 0or soe large eerging ar:et econoies and oile/orting countries.inancial ear 2&1415 ,itnessed un/recedented strength in the NS 9ollar against

ost currencies. Countries o+erreliant on coodity e/orts sa, their currencies

coing under /ressure. Indian ;u/ee reained in a relati+ely narro, )and as the

ne, 8o+ernent-s coitent to,ards 0iscal /rudence and /rogressi+e econoic

/olicies6 led to surge o0 0oreign 0lo,s into the country )oth 9I and IIJ. The

;eser+e <an: o0 India ;<IJ steadily inter+ened in the 0ore ar:et to augent its

0ore reser+es. "n the interest rate 0ront6 ;<I6 stayed on its /ath o0 in0lation

targeting. !ith the CPI in0lation target o0 $ )y March6 2&15 co0orta)ly

achie+ed In0lation 0or March6 2&15 at 5.25J and the 0uture outloo: 0or coing'uarters )eing )enign6 ;<I reduced re/o rate )y cuulati+e o0 5& )/s in the last

'uarter o0 the inancial ear 2&1415. ;<I6 in addition6 e00ecti+ely anaged the

systeic li'uidity conditions )y ,ay o0 its li'uidity anageent 0rae,or:

co/rising 0ied and +aria)le rate re/o and re+erse re/o6 ter re/o and arginal

14 standing 0acility. 8oing 0or,ard6 ,hile ;<I is e/ected to )roadly aintain an

accoodati+e /olicy stance6 0uture /olicy actions ,ill )e de/endent on e+ol+ing

data /oints. our Co/any continued to 0ocus on anaging cash e00iciently and

ensured that it had ade'uate li'uidity and )ac: u/ lines o0 credit. 9uring the course

o0 the year6 your Co/any re/aid ;s. 4$% crores o0 )orro,ings 0ro internalaccruals. The Co/any-s <an:ers continue to rate your Co/any as a /rie

custoer and etend 0acilitiesUser+ices at /rie rates. our Co/any 0ollo,s a

/rudent 0inancial /olicy and ais not to eceed an o/tiu 0inancial gearing at

any tie. The Co/any-s total 9e)t to ='uity ;atio ,as &.1% as at 31st March6

2&15.

=+en in this challenging en+ironent6 in recognition o0 its /rudent 0inancial

/olicies6 your Co/any 0or the 0irst tie no, en?oys the highest le+el o0 rating

0ro all a?or rating agencies at the sae tie. our Co/any has )een rated )yC;ISIA Aiited C;ISIAJ6 IC;# Aiited IC;#J and Credit #nalysis B ;esearch

Aiited C#;=J 0or its )an:ing 0acilities under <asel II nors. #ll ha+e re

a00ired the highest credit rating 0or your Co/any-s Short Ter 0acilities. 9uring

the year6 C;ISIA and IC;# ha+e u/graded their ratings on your Co/any-s long

ter )an: 0acilities and FonCon+erti)le 9e)enture FC9J /rograe to

P a g e 27 | 44




@C;ISIA ###USta)le- and @QIC;#R ### sta)leJ- res/ecti+ely. urther6 C#;= has

also re+ised the ratings o0 the Co/any-s longter )an: 0acilities u/,ards to

@C#;= ###-. India ;atings and ;esearch Ind;a6 a itch 8rou/ Co/anyJ has

assigned AongTer Issuer ;ating o0 @IF9 ###- ,ith a Sta)le outloo: to your

Co/any since last year. The ### ratings indicate highest degree o0 sa0etyregarding tiely ser+icing o0 0inancial o)ligations and is also a +ote o0 con0idence

re/osed in your Co/any-s Manageent )y the rating agencies. It is an

ac:no,ledgeent o0 the strong credit /ro0ile o0 your Co/any o+er the years6

resilience in earnings des/ite cyclical u/turnsUdo,nturns6 ro)ust 0inancial

0lei)ility arising 0ro the signi0icant ar:et +alue o0 its holdings and /rudent

anageent. 9uring the year6 your Co/any earned recognition 0or G<est

inancing Solution 0ro Treasury Today #sia 0or its issuance o0 5& year Fon

Con+erti)le 9e)entures6 ,hich ,as the 0irst o0 its :ind in the Indian 0inancial

ar:ets.

I'#3(%5 R9)(%'3 !IR+

In the continuous search 0or ecellence6 your Co/any continued to engage ,ith

in+estors in any ,ays6 including one on one eetings6 tele/resence eetings6

/artici/ation in in+estor con0erences6 'uarterly earnings calls and annual analyst

eet. our Co/any interacted ,ith around (5& Indian and o+erseas in+estors and

analysts ecluding 'uarterly earnings calls and s/eci0ic e+ent related callsJ duringthe year. our Co/any continuously stri+es to i/ro+e I; engageent ,ith

International and Indian in+estors and has set u/ 0eed)ac: echanis to easure

I; e00ecti+eness. Structured concalls and /eriodic in+estorUanalyst interactions

,ith the Chairan B Managing 9irector6 =ecuti+e 9irector and <usiness Heads

,ere organised during the year. our Co/any al,ays )elie+es in leading 0ro the

0ront ,ith eerging )est /ractices in I; and )uilding a relationshi/ o0 utual

understanding ,ith in+estorUanalysts. #s a :ey ilestone in this continuing

endea+our6 your Co/any organi*ed its 0irst e+er concall on =n+ironent6 Social

and Cor/orate 8o+ernance =S8J call 0or analysts and in+estors. The Co/anyensures that critical in0oration a)out the Co/any is a+aila)le to all the in+estors

)y u/loading all such in0oration at the Co/any-s ,e)site. our Co/any has

created a @8rou/ In+estor ;elations Council- to share )est /ractices across all the

listed grou/ co/anies and learn 0ro each other.

P a g e 28 | 44




D#"'"

our 9irectors are /leased to recoend a di+idend o0 ;s. 12 /er "rdinary

='uityJ Share o0 the 0ace +alue o0 ;s. 5 each6 /aya)le to those Shareholders

,hose naes a//ear in the ;egister o0 Me)ers as on the <oo: Closure 9ate. The

e'uity di+idend outgo 0or the inancial ear 2&14156 inclusi+e o0 ta on

distri)uted /ro0its a0ter reducing the ta on distri)uted /ro0its o0 ;s. 5&.15 crores

on the di+idends recei+a)le 0ro the su)sidiaries during the current inancial earJ

,ould a)sor) a su o0 ;s. $4(.$% crores Qas against ;s. %(3.&1 crores co/rising

the di+idend o0 ;s. 13.5& /er "rdinary ='uityJ Share and also a S/ecial 9i+idend

o0 ;e. &.5& /er "rdinary ='uityJ Share aggregating ;s. 14 /er "rdinary ='uityJ

Share o0 the 0ace +alue o0 ;s. 5 each and ta thereon /aid 0or the /re+ious yearR.

.2 A&"(%5’3 R%5(

To6

The Me)ers6

Mahindra and Mahindra Aiited

8ate,ay <uilding6 #/ollo <under

Mu)ai 4&& &&1

I ha+e conducted the Secretarial #udit o0 the co/liance o0 a//lica)le statutory

/ro+isions and the adherence to good cor/orate /ractices )y Mahindra and

Mahindra Aiited hereina0ter called Gthe Co/anyJ. Secretarial #udit ,as

conducted in a anner that /ro+ided e a reasona)le )asis 0or e+aluating the

cor/orate conductUstatutory co/liances and e/ressing y o/inion thereon.

<ased on y +eri0ication o0 the Co/any-s )oo:s6 /a/ers6 inute )oo:s6 0ors

and returns 0iled and other records aintained )y the Co/any and also the

in0oration /ro+ided )y the Co/any6 its o00icers6 agents and authori*ed

re/resentati+es during the conduct o0 secretarial audit6 I here)y re/ort that in y

P a g e 29 | 44




o/inion6 the Co/any has6 during the audit /eriod co+ering the 0inancial year

ended on 31 March6 2&156 co/lied ,ith the statutory /ro+isions listed hereunder

and also that the Co/any has /ro/er <oard/rocesses and co/lianceechanis

in /lace to the etent6 in the anner and su)?ect to the re/orting ade hereina0ter. I

ha+e eained the )oo:s6 /a/ers6 inute )oo:s6 0ors and returns 0iled and other

records aintained )y the Co/any 0or the 0inancial year ended on 31 March6

2&15 according to the /ro+isions o0

iJ The Co/anies #ct6 2&13 the #ctJ and the rules ade thereunder

iiJ The Securities Contracts ;egulationJ #ct6 1%5( @SC;#-J and the rules

ade thereunder

iiiJ The 9e/ositories #ct6 1%%( and the ;egulations and <yela,s 0raed

thereunder

i+Joreign =change Manageent #ct6 1%%% and the rules and regulations

ade thereunder to the etent o0 0oreign direct in+estent6 o+erseas direct

in+estent and eternal coercial )orro,ings

+J The 0ollo,ing ;egulations and 8uidelines /rescri)ed under the

Securities and =change <oard o0 India #ct6 1%%2 @S=<I #ct-J

aJ The Securities and =change <oard o0 India Su)stantial

#c'uisition o0 Shares and Ta:eo+ersJ ;egulations6 2&11

)J The Securities and =change <oard o0 India Prohi)ition o0

Insider TradingJ ;egulations6 1%%2

cJ The Securities and =change <oard o0 India Issue o0 Ca/ital and

9isclosure ;e'uireentsJ ;egulations6 2&&% Fot a//lica)le to the

Co/any during the #udit /eriodJ

P a g e 30 | 44




dJ The Securities and =change <oard o0 India =/loyee Stoc:

"/tion Schee and =/loyee Stoc: Purchase ScheeJ 8uidelines6

1%%% and The Securities and =change <oard o0 India Share <ased

=/loyee <ene0itsJ ;egulations6 2&14

eJ The Securities and =change <oard o0 India Issue and Aisting o0

9e)t SecuritiesJ ;egulations6 2&&$

0J The Securities and =change <oard o0 India ;egistrars to an Issue

and Share Trans0er #gentsJ ;egulations6 1%%3 regarding the

Co/anies #ct and dealing ,ith client

gJ The Securities and =change <oard o0 India 9elisting o0 ='uity

SharesJ ;egulations6 2&&% Fot a//lica)le to the Co/any during the

#udit /eriodJ and

hJ The Securities and =change <oard o0 India <uy)ac: o0

SecuritiesJ ;egulations6 1%%$ Fot a//lica)le to the Co/any during

the #udit /eriodJ.

I 0urther re/ort that ha+ing regard to the co/liance syste /re+ailing in the

Co/any and on eaination o0 the rele+ant docuents and records in /ursuance

thereo06 the Co/any has co/lied ,ith the 0ollo,ing la,s a//lica)le s/eci0ically

to the Co/any

aJ The Motor Vehicles #ct6 1%$$ and the ;ules ade thereunder)J The Tractor Cess ;ules6 1%%2cJ The <atteries Manageent and HandlingJ ;ules6 2&&1dJ The Petroleu #ct6 1%34 and the ;ules ade thereundereJ The "*one 9e/leting Su)stances ;egulation and ControlJ ;ules 2&&&

and The "*one 9e/leting Su)stances ;egulation and ControlJ

#endent ;ules6 2&&1

P a g e 31 | 44




0J The Plastic Manu0acture6 Sale and Nsage ;ules6 1%%%gJ ood Sa0ety and Standards #ct6 2&&(hJ Insecticide #ct61%($ B ;ules ade thereunderiJ #gricultural Produce 8rading and Mar:ingJ #ct6 1%37?J The Seeds #ct6 1%((:J The Seeds Control "rder6 1%$3lJ Mandi taes o0 +arious StatesJ The =ssential Coodities #ct6 1%55.

I ha+e also eained co/liance ,ith the a//lica)le clauses o0 the 0ollo,ing

iJ Secretarial Standards issued )y the Institute o0 Co/any Secretaries

o0 India Fot noti0ied and hence not a//lica)le to the Co/any during

the #udit /eriodJiiJ Aisting #greeents entered into )y the Co/any ,ith <S= Atd. and

the Fational Stoc: =change o0 India Atd.

9uring the /eriod under re+ie, the Co/any has co/lied ,ith the /ro+isions o0

the #ct6 ;ules6 ;egulations6 8uidelines6 Standards6 etc. entioned a)o+e.

I 0urther re/ort that

The <oard o0 9irectors o0 the Co/any is duly constituted ,ith /ro/er )alance o0

=ecuti+e 9irectors6 Fon=ecuti+e 9irectors and Inde/endent 9irectors. The

changes in the co/osition o0 the <oard o0 9irectors that too: /lace during the

/eriod under re+ie, ,ere carried out in co/liance ,ith the /ro+isions o0 the #ct.

#de'uate notice is gi+en to all directors to schedule the <oard Meetings6 agenda

and detailed notes on agenda ,ere sent at least se+en days in ad+ance6 and a

syste eists 0or see:ing and o)taining 0urther in0oration and clari0ications on

the agenda ites )e0ore the eeting and 0or eaning0ul /artici/ation at the

eeting.

P a g e 32 | 44




#s /er the inutes o0 the eetings duly recorded and signed )y the Chairan6 the

decisions o0 the <oard ,ere unanious and no dissenting +ie,s ha+e )een

recorded. I 0urther re/ort that there are ade'uate systes and /rocesses in the

Co/any coensurate ,ith the si*e and o/erations o0 the Co/any to onitor

and ensure co/liance ,ith a//lica)le la,s6 rules6 regulations and guidelines.

I 0urther re/ort that during the audit /eriod no s/eci0ic e+ents U actions too: /lace

ha+ing a a?or )earing on the Co/any-s a00airs in /ursuance o0 the a)o+e

re0erred la,s6 rules6 regulations6 guidelines6 standards etc. re0erred to a)o+e.

. F')'$)9 S()(8'(

2&15 2&14

8ross Incoe 416%$2 436$3$

Aess =cise 9uty on Sales 261$$ 26(12

P a g e 33 | 44

R". In !$!e"




Fet incoe 3%67%4 41622(

Pro0it )e0ore 9e/reciation6 inance Cost6 =ce/tional ites

and Taation56&22 4643%

Aess 9e/reciation %75 $(3

Pro0it )e0ore inance Cost6 =ce/tional ites and Taation 46&47 4657(Aess inance Cost 214 25%

Pro0it )e0ore =ce/tional ites and Taation 36$33 46317

#dd =ce/tional ites 33( 52

Pro0it )e0ore Taation 461(% 463(%

Aess Pro+ision 0or Ta Current Ta 743 35&

Aess Pro+ision 0or Ta 9e0erred Ta 1&5 2(1

Pro0it 0or the year 36321 3675$

<alance o0 /ro0it 0or earlier years 126325 %6%52Aess Trans0er to 9e)enture ;ede/tion ;eser+e 17 17

Pro0its a+aila)le 0or a//ro/riation 156(2% 136(%3

#dd ;e+ersal o0 incoe ta on di+idend /aid 0or 2&1314 3

Aess Trans0er to 8eneral ;eser+e 4&&

Aess Pro/osed 9i+idend 745 $(2

Aess Incoeta on Pro/osed 9i+idend 1&2 1&4

Aess 9e/reciation as /er transition /ro+ision s/eci0ied in

schedule II o0 co/anies act6 2&1335

Aess 9i+idend 0or 2&1213 /aid on shares issued on ?une6 2&13 2

Incoe Ta /aid on di+idend

<alance carried 0or,ard 14675& 126325

P a g e 34 | 44

@en$&e" a($'n&" )e"" &han R".




.4 B)9)'$ S1( )3 )( -3( M)5$1, 20-

Notes 2015 2014

I. EQUITY AND LIABILITIESSA<REAOLERSB :NS=a> Sha!e Ca+i&a) .................................................................................... 2 295.0295.16=#> Re"e!,e" an S'!+)'"....................................................................... ! 1"#959.!916496.03

19#255.0916791.19

NON CRRENT LI<DILITIES=a> L$ng Te!( D$!!$ing".................................................................... 4 2#514.1!3744.42=#> e%e!!e Ta/ Lia#i)i&ie" =Ne&> ......................................................... 5 99.0889.65=> O&he! L$ng Te!( Lia#i)i&ie" ............................................................ $ $14.!4

586.27=> L$ng Te!( P!$,i"i$n" ...................................................................... $0.!4

510.33

4#15.515730.67

CRRENT LI<DILITIES=a> Sh$!& Te!( D$!!$ing" ................................................................... " 10$.250.74=#> T!ae Pa-a#)e" ................................................................................. 9 5#!$5.456068.80=> O&he! C'!!en& Lia#i)i&ie"................................................................. 10 2#041.1!

1133.56=> Sh$!& Te!( P!$,i"i$n" ..................................................................... 11 1#4$1.44

1563.69

"#94.28766.79

Tot%& ............. !2#944."31288.65II. ASSETSNON CRRENT <SSETS=a> :i/e <""e&"

Tangi#)e <""e&"................................................................................ 12 'A( 5#95.445706.30

In&angi#)e <""e&"............................................................................. 12 'B( 1!4.02170.65

Ca+i&a) ?$!*inP!$g!e"" ................................................................ 55.$

394.86In&angi#)e <""e&" 'ne! e,e)$+(en&......................................... 1#42!.09833.58

"#10".227105.39

=#> N$nC'!!en& In,e"&(en&" ................................................................ 1! 'A( 11#!2.49787.73

=> L$ng Te!( L$an" an <,ane" .................................................... 14 !#2!2.2$3018.12

P a g e 35 | 44

R' ee" !$!e"




=> O&he! N$nC'!!en& <""e&".............................................................. 15 10!.4488.49

22#"1$.$$19999.73

CRRENT <SSETS=a> C'!!en& In,e"&(en&" ........................................................................ 1! 'B( 1#$5.42

1592.12=#> In,en&$!ie" ........................................................................................ 1$ 2#4!.5

2803.63=> T!ae Reei,a#)e" ............................................................................ 1 2#55".0!

2509.84=> Ca"h an Dan* Da)ane"................................................................. 1" 2#0$4.

2950.39=e> Sh$!& Te!( L$an" an <,ane" .................................................... 19 !.10

945.83=%> O&he! C'!!en& <""e&"....................................................................... 20 529.!2

487.11

10#12".2111288.92

Tot%& ............. !2#944."

31288.65

. P5%6( )'" L%33 0or the year ended 31st March6 2&15

Notes 2015 2014

;!$"" Re,en'e %!$( Sa)e $% P!$'&" an Se!,ie"...................................... 21 40#59.!042575.04Less) E/i"e '&- ............................................................................................. 2#1".$92611.68

Ne& Re,en'e %!$( Sa)e $% P!$'&" an Se!,ie"......................................... !"#!91.$139963.36O&he! O+e!a&ing Re,en'e ............................................................................... 21 55!."1545.14

Re*e+,e -o/ Oe%to+s 'Net( ..................................................................... 21 !"#945.4240508.50O&he! In$(e .................................................................................................... 22 "4".94

717.99

Tot%& Re*e+,e ................................................................................................... !9#94.!$41226.49

EPENSES) C$"& $% Ma&e!ia)" C$n"'(e ........................................................................... 2! 20#22.4"21630.08P'!ha"e" $% S&$*inT!ae............................................................................. 24 #!59.!8076.92Change" in In,en&$!ie" $% :ini"he ;$$" ?$!*inP!$g!e""

P a g e 36 | 44

R' ee" !$!e"




S&$*inT!ae an Man'%a&'!e C$(+$nen&" ........................................... 25 !2!.$!=274.67>E(+)$-ee Dene&" E/+en"e............................................................................. 2$ 2#!1$.9!2163.72:inane C$"&" .................................................................................................... 2 214.!0259.22e+!eia&i$n an <($!&iFa&i$n E/+en"e ....................................................... 2" 94.90863.34O&he! E/+en"e" ................................................................................................. 29 4#$00.54294.28

!$#0$2.1"37012.89

Less) C$"& $% Man'%a&'!e P!$'&" Ca+i&a)iFe...................................... 100.99103.04

Tot%& E3e+ses.................................................................................................. !5#9$1.19 36909.85P!$& #e%$!e E/e+&i$na) I&e( an Ta/ ......................................................... !#"!!.14316.64A) E/e+&i$na) I&e(" .................................................................................. 41 !!5.252.79

P!$& #e%$!e Ta/............................................................................................... 4#1$"."94369.43Less) Ta/ E/+en"eC'!!en& Ta/............................................................................................ "!5.92

837.95Less) M<T C!ei& En&i&)e(en& ............................................................. 92.2488.15

Ne& C'!!en& Ta/ ..................................................................................... 4!.20349.80e%e!!e Ta/ =Ne&>................................................................................ 104.5"261.28

"4."611.08

Pot -o t6e 7e%............................................................................................ !#!21.11 3758.35E%++8s e e,t7 s6%e 42=:ae ,a)'e R". 5G +e! "ha!e> =R'+ee">Da"i ................................................................................................................... 5$.2!63.67i)'&e ...............................................................................................................

5!.$$ 61.07

P a g e 37 | 44




4RATIOS OF MAHINDRA AND MAHINDRA LIMITED

4.- G5%33 P5%6( R)(%

4.2 O5)('> 5)(%

4. E@'33 R)(%

4.4 N( O5)('> P5%6( R)(%

4. N( P5%6( 5)(%

4. C&55'( R)(%

4.K L&" R)(%

4. P5%5()5* R)(%

4. D( E&(* R)(%

4.-0 R(&5' %' C)()9 E89%*"

4.-- R(&5' %' P5%5(%5’3 6&'"

4.-2 S(%$ T&5'%#5 R)(%

4.- D(%5 T&5'%#5 R)(%

4.-4 E)5''>3 5 S1)5

4.- D#"'" P)*%&( R)(%

P a g e 38 | 44




4RATIOS OF MAHINDRA AND MAHINDRA LIMITED

4.- G5%33 P5%6( R)(%

8ross Pro0it O 1&&

Fet Sales

8ross Pro0it ;atio J o0 Mahindra is ((.$(

4.2 O5)('> R)(%

Cost o0 goods sold W "/erating =/enses O 1&&

Fet Sales

"/erating Pro0it ;atio J o0 Mahindra is (7.(1

4. E@'33 R)(%

=/enses Considered O 1&&

Fet Sales

=/enses ;atio J o0 Mahindra is 5.%%

4.4 N( O5)('> P5%6( 5 S1)5

P a g e 39 | 44




"/erating Pro0it O 1&&

Fet Sales

Fet "/erating Pro0it ;atio J o0 Mahindra is (27.&5

4. N( P5%6( R)(%

Fet Pro0it O 1&&

Fet Sales

Fet Pro0it ;atio J o0 Mahindra is $.52

4. C&55'( R)(%

Current #ssets

Current Aia)ilities

Current ;atio o0 Mahindra is 1.&5

4.K L&" R)(% Duic: #ssets

Duic: Aia)ilities

Ai'uid ;atio o0 Mahindra is &.$4

4. P5%5()5* R)(%

P a g e 40 | 44




Pro/rietor-s unds O 1&&

Total #ssets

Pro/rietary ;atio J o0 Mahindra is &.13

4. D( E&(* R)(%

Aong Ter 9e)ts O 1&&

Total unds

9e)t ='uity ;atio J o0 Mahindra is &.14

4.-0 R(&5' %' C)()9 E89%*"

Fet Pro0it )e0ore ta and interest O 1&&

Total #ssets

;eturn on Ca/ital =/loyed J o0 Mahindra is 14.$&

4.-- R(&5' %' P5%5(%5’3 6&'"

Fet Pro0it a0ter ta and interest O 1&&

Pro/rietor-s unds

;eturn on Pro/rietor-s 0und J o0 Mahindra is 1$.33

P a g e 41 | 44




4.-2 S(%$ T&5'%#5 R)(%

Cost o0 Sales

#+erage Stoc:

Stoc: Turno+er ;atio J o0 Mahindra is 1(.$7

4.- D(%5 T&5'%#5 R)(%

Fet Credit Sales

#+erage #ccounts ;ecei+a)les

9e)tor Turno+er ;atio J o0 Mahindra is 15.37

4.-4 E)5''>3 5 S1)5

Fet Pro0it a0ter Ta B /re0erence 9i+idend

Fo. o0 ='uity Shares

=.P.S o0 Mahindra is 4$.&7

4.- D#"'" P)*%&( R)(%

9i+idend /er ='uity Share

=arnings /er ='uity Share

9i+idend /ayout ratio o0 Mahindra is 22.44

P a g e 42 | 44




5CONCLUSION

Mahindra B Mahindra otors ha+e a +ery good ar:et share in the +ehicle

segent s/eci0ically SNV. The co/any is o00ering good ser+ices6 ,hich is

re0lected on the satis0action o0 the custoer. Ma?ority o0 the custoer are satis0ied

,ith the design o0 the +ehicle. Mahindra B Mahindra otors are /ro+iding )etter

0acilities as co/ared to other )rands. #s (7 o0 the res/ondents are satis0ied that

they are ha//y ,ith the /roducts6 it satis0ies that the custoer satis0action le+els

are +ery high. I0 the co/any ,ere to identi0y the /it0alls in their /roduct and

underta:e reedial easure6 thus it ,ill lead to ore good ,ord o0 outh

/u)licity. Though a?ority o0 the custoer are satis0ied that the aintenance cost

o0 Mahindra +ehicles is less6 around 2& are not satis0ied ,hich ay )e )ecause

o0 co/arison ,ith the ne,ly launched co/eting )rands coing ,ith e+en lo,er

aintenance cost. #s $& o0 the res/ondents are ha//y ,ith the s/ace a+aila)ility

in Mahindra +ehicles6 it can )e conducted that the co/any has underta:en /ro/er

;B9 in this as/ect. # 2& o0 the res/ondents ,ho ha+e ans,ered negati+ely ay

)e co/aring ,ith the +ehicle in the sae category launched +ery recently.

P a g e 43 | 44




BIBLIOGRAPHY

-. #d+anced inancial #ccounting2. 1((:777.'")'%(3.$%853)5$1/)')9*33$%8)'*$%8)'*/

6')'$)9.1

$$MTA-M;A7MDM&MDA$%8)'*')8M)1'"5)//M)1'"5)/

L("5)(%3

. 1((:777.8%'*$%'(5%9.$%86')'$)938)1'"5)8)1'"5)5)(%3M

M

4. 777.8)1'"5)6')'$.$%8)''&)9/5%5(3.)3@

. 777.8)1'"5)6')'$.$%8"6MFAR20-4/-."6

. 1((:6%53'").$%8)5($9%)5"5%%81%7/8)'1'"5)/8)1'"5)/

$)8/(%/"%8')(/(1/'")'/)&(%8%(#/'"&3(5*-4--

K. 1((3:'.7").%5>7M)1'"5)2M)1'"5)

. 1((:777.8)1'"5).$%8'73/5%%8533/59)3-00--

http://www.indianotes.com/research-analysis/company/company-financial.php?cc=MTA1MjAwMDMuMDA=&companyname=Mahindra--Mahindra-Ltd&i=ratios




http://www.moneycontrol.com/financials/mahindramahindra/ratios/MM


http://www.mahindrafinance.com/annual-reports.aspx

http://www.mahindrafinance.com/pdf/MF_AR_2014-15.pdf

http://forbesindia.com/article/boardroom/how-manhindra-mahindra-came-to-dominate-the-indian-automotive-industry/39141/1


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

http://www.mahindra.com/news-room/press-release/1300159661



http://www.mahindrafinance.com/annual-reports.aspx

http://www.mahindrafinance.com/pdf/MF_AR_2014-15.pdf



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

http://www.mahindra.com/news-room/press-release/1300159661




a report on analysis of published financial statement of mahindra and mahindra limited

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