ACKNOWLEDGEMENTS

I would first like to thank my teacher Ms. Anushital

mam, for her tremendous support and contribution from
time to time giving me several information related to this
term paper.
I am also thankful to my friends, who have helped me for
making my term paper. Last but not least I would like to
thankful to my parents, who has helped me to encourage
and giving moral support for making this term paper.

Harjeet Kour
MBA 2nd sem
 CONTENT

INTRODUCTION

History and Background

Company’s position

Change in share price

Capital structure

Liquidity Position

Balance sheet

P&L account

Credit rating of company

IPO issues made by company

INTRODUCTION:

Mahindra is the only Indian company among the top tractor brands in the world
and has made an entry in the two-wheeler segment, which will see the company
emerge as a full-range player with a presence in almost every segment of the
automobile industry. Mahindra is also one of the few Indian companies to receive
an A+ GRI checked rating for its first Sustainability Report for the year 2007-08

History & Background

Mahindra embarked on its journey in 1945 by assembling the

Willys Jeep in India and is now a US $6.3 billion Indian multinational. It employs
over 1,00,000 people across the globe and enjoys a leadership position in utility
vehicles, tractors and information technology, with a significant and growing
presence in financial services, tourism, infrastructure development, trade and
logistics. The Mahindra Group today is an embodiment of global excellence and
enjoys a strong corporate brand image.
The birth of Mahindra & Mahindra began when K.C. Mahindra visited the United
States of America as Chairman of the India Supply Mission. He met Barney Roos,
inventor of the rugged 'general purpose vehicle' or Jeep and had a flash of
inspiration: wouldn't a vehicle that had proved its invincibility on the battlefields
of World War II be ideal for India's rugged terrain and its kutcha rural roads.
The Mahindra brothers joined hands with a distinguished gentleman called
Ghulam Mohammed & on October 2nd, 1945, Mahindra & Mohammed was set up
as a franchise for assembling Jeeps from Willys, USA.
Mahindra is a group in a hurry, engaged in an ambitious, sustained and prolonged
penetration into the global arena. Its spirit can be encapsulated in the words of
the poet Robert Frost, a favourite of India's first Prime Minister, Pandit Jawaharlal
Nehru.
The woods are lovely, dark and deep,
But I have promises to keep,
And miles to go before I sleep,
And miles to go before I sleep

FAMILY AND MEMBERS

J.C. & K.C. Mahindra, the founders of the Mahindra Group, had the same
ambition: to prove to themselves and the world that Indians were capable of
being the best at whatever they chose to do. It was under their inspiring
leadership that Mahindra & Mahindra made the first indigenous Jeep in the
country in 1949. Their innovative spirit also showed during the days when the
Company was the leading importer of steel in the country. J.C. & K.C. Mahindra
had to persuade the Indian Government to buy French rails for the fledgling
Indian Railways because they felt that the British specifications were obsolete and
not the best suited.
CORE VALUES
Professionalism

We have always sought the best people for the job and given them the freedom
and the opportunity to grow. We will continue to do so. We will support
innovation and well reasoned risk taking, but will demand performance.

Customer First:

We exist and prosper only because of the customer. We will respond to the
changing needs and expectations of our customers speedily, courteously and
effectively.

Quality Focus
Quality is the key to delivering value for money to our customers. We will make
quality a driving value in our work, in our products and in our interactions with
others. We will do it 'First Time Right'

CORPORATE GOVERNANCE:

The goal of any system of governance is to achieve the best performance within
the overall context of the prevalent economic environment, so as to secure
maximum benefit for all the stakeholders. For this to be achieved, governance
cannot only be systems, processes and metrics. It also has to integrate within
itself the beliefs, values, culture and ethics of an organisation, ultimately leading
to the cornerstones of transparency and accountability, which is what good
governance is all about.

MANAGEMENT
BOARD OF DIRECTORS:
The Board of Directors of the Company has, as its members, eminent persons
from Industry, Finance, Investment and other branches of business, who bring
diverse experience and expertise to the Board.
The Company's current Board of Directors is as follows

NAME DESIGNATION
     
1. Mr. Keshub Mahindra   Chairman
     
2. Mr. Anand G. Mahindra Vice Chairman and Managing
Director
     
3. Deepak Shantilal ParekhDirector
     
4. Nadir Burjorji Godrej Director
     
5. M. M. Murugappan Director
     
6. Bharat Narotam Doshi Executive Director & Group
Chief Financial Officer (Group
CFO) 
     
7. Arun Kumar Nanda Executive Director
     
8. Narayanan Vaghul Director
     
9. Dr. Ashok Sekhar Director
Ganguly
     
10. R. K. Kulkarni Director
     
11. Anupam Pradip Puri Director
     
12. Arun Kanti Dasgupta Nominee of LIC

Mr. Keshub Mahindra-chairman

Mr. Keshub Mahindra, Chairman of Mahindra & Mahindra Limited, is a B.Sc.

graduate from Wharton, University of Pennsylvania, USA. After joining the
Company in 1947, he became the Chairman in 1963. For over five decades, his
continuous involvement has enabled the Mahindra Group to reach where it is
today.
Mr. Mahindra is the recipient of the following awards
 'Knight of the Order of Merit' by the President of the French Republic
 Rajiv Gandhi Award 2004 for outstanding contribution in the business field
 2005 Leadership Award from the American India Foundation for his, and
the Mahindra Group's commitment to corporate social responsibility
 Person of the Year 2005 from Auto Monitor
 NDTV Profit Car & Bike Award 2007 for Automobile Man of the Year

OTHER ACTIVITIES
Mr. Mahindra is the co-founder of the Harvard Business School Association
of India, an association dedicated to the promotion of professional
management in India. The association has grown substantially over the
years. He takes a keen interest in matters related to education and apart
from being a Trustee of the K.C. Mahindra Education Trust, which provides
scholarships to students, he is also on the Board of Governors of the
Mahindra United World College of India.

Mahindra & Mahindra Ltd.

The Farm Eqipment Sector won the Golden Peacock National Quality Award
2004
Scorpio was the winner of Brand Derby by Business Standard for most
successful brand launch.
Mahindra & Mahindra received the prestigious National Energy
Conservation Award from the Ministry of Power in 2003
Scorpio was the recipient of:
 'Car of the Year' award from Business Standard Motoring
 'Best SUV of the Year' and 'Best Car of the Year' awards from BBC on
Wheels
 'Car of the Year' award from CNBC Auto Car

AUTOMOBILES:
Overview
The Mahindra Group’s Automotive Sector is in the business of
manufacturing and marketing utility vehicles and light commercial
vehicles, including three-wheelers. It is the market leader in utility
vehicles in India since inception, and currently accounts for about
half of India’s market for utility vehicles
 Although created in 1994 following an organizational restructuring,
the Automotive Sector can trace its antecedents back to 1954. The
iconic Jeep that led American G.I.s to victory in World War II is the
very same vehicle that drove the Mahindra Group to success in the
Automotive Sector. Mahindra & Mahindra Limited, the flagship
company of the Group, was set up as a franchise for assembling
general purpose utility vehicles from Willys, USA.

Over the years, the Group has developed a large product portfolio
catering to a diverse customer base spanning rural and semi-urban
customers, defense requirements and luxurious urban utility
vehicles. In 2002, it launched the indigenously engineered world-
class sports utility vehicle-Scorpio, which bridges the gap between

style and adventure, luxury and ruggedness, and

performance and economy.
The Group exports its products to several countries in Europe, Africa,
South America, South Asia and the Middle East

FINANCIAL OVERVIEW

Finance is a major impetus for the growth of automotive products and this
led to the Group’s foray into financial services through Mahindra Finance
 and its subsidiary. Together, a cluster of these companies forms the Trade
and Financial Services Sector of the Mahindra Group.
 Mahindra & Mahindra Financial Services Ltd (Mahindra Finance) is
one of 's leading non-banking finance companies focused on
providing finance for utility vehicles, tractors and cars in the rural and
semi-urban sector. Mahindra Finance currently has the largest
network of over 436 branches . It has entered into more than
600,000 customer contracts and has disbursements of around Rs.
21000crore since inception.
 Mahindra Insurance Brokers, a wholly owned subsidiary of
Mahindra Finance, is one of the few insurance broking companies in
to receive the ISO 9001:2000 Certification for Quality Management
Systems. It provides direct insurance broking for retail and corporate
customers with a wide and comprehensive range of plans for Life and
Non-life Insurance segments. Under the Non-life Insurance category,
Personal, Industrial, Commercial, Social and Liability products are
available.
 Mahindra Rural Housing Finance Ltd (MRHFL) is a wholly owned
subsidiary of Mahindra & Mahindra Financial Services (MMFSL). It
has been recently set up with an objective of meeting the housing
finance needs of the rural/semi urban customers across the country.

Balance sheet(Rs crore)

  Mar ' 09 Mar ' 08 Mar ' 07
Sources of funds
Owner's fund
Equity share capital 272.62 239.07 238.03
Share application money - - -
Preference share capital - - -
Reserves & surplus 4,959.26 4,098.53 3,302.01
Loan funds
Secured loans 981.00 617.26 106.65
   Mar ' 09 Mar ' 08 Mar ' 07
Unsecured loans 3,071.76 1,969.80 1,529.35
Total 9,284.64 6,924.66 5,176.05
Uses of funds
Fixed assets
Gross block 4,893.89 3,552.64 3,180.57
Less : revaluation reserve 12.09 12.47 12.86
Less : accumulated depreciation 2,326.29 1,841.68 1,639.12
Net block 2,555.51 1,698.49 1,528.59
Capital work-in-progress 646.73 649.94 329.72
Investments 5,786.41 4,215.06 2,237.46
Net current assets
Current assets, loans & advances 5,081.20 3,816.41 3,916.94
Less : current liabilities & provisions 4,797.76 3,468.77 2,854.20
Total net current assets 283.44 347.64 1,062.74
Miscellaneous expenses not written 12.55 13.53 17.55
Total 9,284.64 6,924.66 5,176.05
Notes:
Book value of unquoted investments 4,305.50 1,429.16 1,515.23
Market value of quoted investments 3,218.81 7,669.90 10,285.25
Contingent liabilities 1,220.39 985.35 1,008.27
Number of equity sharesoutstanding (Lacs) 2726.16 2390.73 2380.33

Profit loss account

  Mar ' 09 Mar ' 08 Mar ' 07
Income
Operating income 13,125.98 11,310.37 9,921.34
Expenses
Material consumed 9,365.00 7,814.71 6,930.76
Manufacturing expenses  174.05 164.68 134.00
Personnel expenses 1,024.61 853.65 666.15
Selling expenses 575.34 804.51 635.10
Adminstrative expenses 937.56 561.66 466.22
Expenses capitalized -42.83 -46.49 -47.10
Cost of sales 12,033.73 10,152.72 8,785.12
Operating profit 1,092.25 1,157.65 1,136.22
   Mar ' 09 Mar ' 08 Mar ' 07
Other recurring income 305.98 364.05 404.87
Adjusted PBDIT 1,398.23 1,521.70 1,541.09
Financial expenses 134.12 87.59 19.80
Depreciation  291.51 238.66 209.59
Other write offs - 0.59 0.33
Adjusted PBT 972.60 1,194.86 1,311.37
Tax charges  199.69 303.40 350.10
Adjusted PAT 772.91 891.46 961.28
Non recurring items 63.87 211.91 126.30
Other non cash adjustments 4.07 - -19.19
Reported net profit 840.85 1,103.37 1,068.39
Earnigs before appropriation 3,807.00 3,228.45 2,544.13
Equity dividend 278.83 282.61 282.23
Preference dividend - - -
Dividend tax 33.23 38.48 42.50
Retained earnings 3,494.94 2,907.36 2,219.40

Bonus announcement
Year Month Ratio Ex Bonus Date
2005 Jun 1:1 01/09/2005
1996 Dec 2:3 20/12/1995
1995 Nov 2:3 20/12/1995
1984 Apr 2:3 -
1980 Apr 1:1 -

Share holding
Share holding pattern as on : 31/12/2009 30/09/2009 30/06/2009
Face value 10.00 10.00 10.00
No. Of % No. Of % No. Of %
Shares Holding Shares Holding Shares Holding
Promoter's holding
Indian Promoters 69063784 24.68 68264606 24.48 68629786 24.61
Foreign Promoters 7127304 2.55 8115886 2.91 12111525 4.34
Sub total 76191088 27.23 76380492 27.39 80741311 28.96
 No. Of % No. Of % No. Of %
Shares Holding Shares Holding Shares Holding
Non promoter's holding
Institutional investors
Banks Fin. Inst. and
59592156 21.30 62960536 22.58 63436258 22.75
Insurance
FII's 64064714 22.89 61110366 21.92 62665145 22.48
Sub total 139908653 50.00 139224474 49.93 136835800 49.08
Other investors
Private Corporate Bodies 21273737 7.60 19307789 6.92 15883312 5.70
NRI's/OCB's/Foreign
1645395 0.59 1697756 0.61 1717008 0.62
Others
Govt 221416 0.08 223826 0.08 235376 0.08
Others 16060852 5.74 16858251 6.05 17829690 6.39
Sub total 39201200 14.01 38087422 13.66 35665186 12.79
General public 24520124 8.76 25128677 9.01 25578768 9.17
Grand total 279821065 100.00 278821065 100.00 278821065 100.00

Capital structure

From To Class Of Authorized Issued Paid Up Shares Paid Up Paid Up

Year Year Share Capital Capital (Nos) Face Value Capital

Equity
2008 2009 600.00 278.82 278821265 10 278.82
Share
 From To Class Of Authorized Issued Paid Up Shares Paid Up Paid Up
Year Year Share Capital Capital (Nos) Face Value Capital

Equity
2007 2008 375.00 245.74 245741813 10 245.74
Share

Equity
2006 2007 275.00 238.03 238032707 10 238.03
Share

Equity
2005 2006 275.00 233.40 233399584 10 233.40
Share

Equity
2004 2005 175.00 116.01 116008599 10 116.01
Share

Equity
2003 2004 175.00 116.01 116008599 10 116.01
Share