MAHINDRA MOTOR’S

Lovely Professional University

Department of CA

TERM PAPER

Homework Title/No: MAHINDRA MOTORS Cours Code:MGT-333

Course Instructor: Lect.Mrs.Monika uppal Course Tutor (if applicable): NA

Date of Allotment:15/02/2010 Date of submission: 28/04/2010

Student’s Roll Number:RE3902A29 Section No.:E3902

Declaration:

I declare that this assignment is my individual work. I have not copied from
any other student’s work or from any other source except where due acknowledgement is
made explicitly in the text, nor has any part been written for me by another person.

Student’s Sign:amar singh

Evaluator’s Comments: ___________________________________________________

Marks obtained: ____________ out of __________________

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A LETTER OF CAUTION:-
Everyone should try to make something new rather then copying others. By copying one
thing ,no one can get something good as new. I am Amar singh made a term paper on
“FINANCIAL MANAGEMENT ” on company “MAHINDRA MOTORS”. It was very hard
for me to complete this paper. I tried my best to make this term paper nice ,and at last ,we I
‘m succeeded. Therefore , it will be pleasurable for me if any one do not copy any
information from my paper .Alternatively ,if it would become very important to use my term
paper then please ask me before use. Moreover ,please keep in mind that this paper is
prepared for the instructor of instruction to Computer at LOVELY PROFESSIONAL
UNIVERSITY .

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COVER LETTER

28 th April 2010

`Mrs. Monika Uppal,

Lecturer (Deptt. of MGT)

Lovely professional university,

Jalandhar.

Subject: Requesting for accepting the term paper.

Dear Madam,

I believe that I applied my knowledge in the practical field with sincerity in

this paper. I would be very thankful to you if you accept this term paper . I seked out address
the major issues to make this paper accurate and reliable despite some limitations .If you have
any kind of inquiry I would be very pleased to explain .

With thanks.

Sincerely Yours,

Amar singh Rathore

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ACKNOWLEDGEMENT
This term paper would not be accomplished without the generous contribution of any
individuals and organist ions. I am very much grateful to them for their unlimited help and
support .

Above all, I express my gratitude to GOD the almighty ,Who aided me with his strength ,gave
me wisdom and patience to complete this term paper.

Additionally, I thank my course instructor “Mrs. Monika Uppal”, Who believed that I could
terminate this term paper on time .Her moral guidelines, endless effort ,and joyful
encouragement made me successful in this paper.

Moreover ,I am also thankful to our classmates and friends for help and support .I would like
to show my end less gratitude by specifying name of Inthkab Khan for his support in this
term paper.

At last I thank to my Room mates and Hostellers for their helps ,support and sacrifices during
the study period.

Amar singh

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TABLE OF CONTENTS
TOPIC PAGE NO.

INTRODUCTION TO COMPANY-----------------------------------------------------------------05

HISTORY OF COMPANY---------------------------------------------------------------------------06-08

FINANCIAL INFORMATION OF COMPANY-------------------------------------------------09-15

> CAPITAL STRUCTURE-------------------------------------------------------------------------09-10

> DIVIDEND POLICY------------------------------------------------------------------------------11

> LICQUIDITY POSITION-------------------------------------------------------------------------12

> FINANCIAL CREDITS---------------------------------------------------------------------------13-14

> INITIAL PUBLIC OFFERS---------------------------------------------------------------------15

CREDIT RATING OF COMPANY-----------------------------------------------------------------16-18

TRACK AND NEWS OF COMPANY--------------------------------------------------------------19-22

CONCLUSION--------------------------------------------------------------------------------------------23

BIBLOGRAPHY------------------------------------------------------------------------------------------24

INTODUCTION TO COMPANY

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Mahindra & Mahindra Ltd

Industry: Automobiles Tractors

Incorporation Year--------------------------------------------1945

Chairman------------------------------------------------------- Keshub Mahindra

Managing Director & Company Secretary ------------ Narayan Shankar

Registered Office------------------------------------------------Gateway Building,

Apollo Bunder,

Mumbai, 400001,

Maharashtra

Website----------------------------------------------------------- http://www.mahindra.com

Registrar's Name & Address--------------------------Sharepro Services (I) Pvt Ltd,

56, Andheri Kurla Rd,

Nr Sakinaka Tel Exch,

Sakinaka, Mumbai-400072.

HISTORY OF COMPANY

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The Mahindra brothers joined hands with a distinguished gentleman called Ghulam
Mohammed and to make the birth of Mahindra & Mahindra in October 2nd, 1945 as
Mahindra & Mohammed, a franchise for assembling jeeps from Willys, USA. Two years
later, India became an independent nation and in 1948 Mahindra & Mohammed changed its
name to Mahindra & Mahindra (M & M). The Steel trading business was commenced in
association with suppliers in UK. Since then, Mahindra & Mahindra has grown steadily in
size and stature and evolved into a Group that occupies a premier position in almost all key
sectors of the economy. Mahindra Group is among the top 10 industrial houses in India. Its
products and services is grouped into seven groups, such as Automotive, Farm Equipment,
Trade & Financial Services, Information Technology, Infrastructure Development, Systech
and Speciality Business.

The first business was with Mitsubishi Corporation commenced and 5000 tons of wagon
building plates from Yawata Iron & Steel were supplied during the period of 1950. In the year
1953 Otis Elevator Company (India) was established. A joint venture was made with Rubery
Owen & Company Limited, UK and established a company under the name of Mahindra
Owen. The company's Machine Tools Division was commenced its operations in the year
1958. During the year 1960 the Mahindra Sintered Products Limited was established based on
a joint venture with Bir Field (GKN Group, UK) and the year later, the Mahindra Ugine Steel
Company was established with a joint venture between the company and Ugine Kuhlmann,
France. The company's major milestone was happened in the year 1963, the International
Tractor Company of India established - a joint venture with International Harvester Company,
USA and now the thing is Mahindra & Mahindra is the only Indian company among the top
three tractor manufacturers in the world. The company entered into light commercial vehicles
segment also, the manufacture of light commercial vehicles was commenced in the year 1965.
Vickers Sperry of India Limited established - a joint venture with Sperry Rand Corporation,
USA in the same year. 1969 was the year to company; M&M entered the world market with
export of utility vehicles and spare parts.

Mahindra Engineering & Chemical Products Limited was originated its operations during the
year 1970. In the year 1977, the International Tractor Company of India merged with
Mahindra & Mahindra to become its Tractor Division and within two years Mahindra brand
of tractors was launched. The company entered into Information Technology by the way of
leading Tech Mahindra (formerly known as Mahindra British Telecom) established - a joint
venture with British Telecommunications Plc (BT), UK. During the year 1991 the company
introduced Commander range of vehicles and the Mahindra Financial Services Limited was
established as a wholesale fund provider. Merged diverse activities of Steel, Machine Tools
and Graphics into Intertrade Division in the year 1992. In 1993 M & M incorporated the
Mahindra British Telecom International Inc., USA a wholly owned subsidiary of Mahindra
British Telecom. The company established Mahindra Steel Service Centre Limited in
association with Mitsubishi Corporation and Nissho Iwai Corporation of Japan. The company
and Acres International Limited (Canada) was jointly instituted the Mahindra Acres
Consulting Engineers Limited to provide multidisciplinary engineering consultancy service.
During the period of 1994, Mahindra Realty & Infrastructure Developers Limited was brough

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its existence.

Mahindra USA Inc. was established for distribution of tractors in the USA. The EAC
Graphics (India) Limited also was established in the same year by collaboration with The East
Asiatic Company Limited A/S, Denmark. Mahindra Allwyn Nissan Limited was merged with
the company. In the year 2005, Mahindra Holding & Finance Limited became a subsidiary of
M & M to carry out business as an investment company and the company made a technical
collaboration with Mitsubishi / Samcor to manufacture the Mitsubishi L300. During the year
1996 the company made prestigious actions, the USA's Ford Motor Company was joined with
the company and established Mahindra Ford India Limited to manufacture passenger cars.
The company made a Foreign Currency Convertible Bond (FCCB) issue of US$ 115 million.
The Mahindra Holidays & Resorts India Limited was established and also the Mahindra
Consulting (now Bristlecone) was established in the equivalent year.

A public private partnership initiative between Mahindra World City and Southern Railway,
the Paranur railway station was the first to be redesigned and maintained by the corporate
sector in the year 2007. During the same year 2007, the company's Farm Equipment Sector
(FES) showcased India's first bio-diesel tractor at the Kisan Mela in Pune on December 14,
2007. Mahindra World City, Jaipur signed MoU with Deutsche Bank on the sidelines of the
Resurgent Rajasthan - Partnership Summit' being held in Jaipur to set up campuses. M & M
launched the Scorpio V-series, a new line-up of India's leading SUV, with the introduction of
the Scorpio VLX. A wholly owned affiliate of Navistar International Corporation (Other
OTC: NAVZ), signed a joint venture agreement with the company to produce diesel engines
for medium and heavy commercial trucks and buses in India. As in part of Corporate Social
Responsibility, the company inaugurated Impact India Foundation's Lifeline Express, world's
first hospital on rails on October of the year. The company has been awarded the ISO/IEC
27001:2005 certificate. This completes the company's successful migration from BS 7799 to
ISO 27001. Mahindra inaugurated its state -of-the-art Blanking Line facility in Nashik backed
by German technology. Mahindra & Mahindra Auto Sector's Zaheerabad plant has won the
First Prize in the National Energy Conservation Awards - 2007.

FINANCIAL INOFRMATION OF COMPANY

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CAPITAL
STRUCTURE
DEBT(in EQUITY(in Cr.)
Cr.)

S.NO YEAR Short Long Total % OF YEAR Equit Prefe Total % OF

Term( Term( DEBT DEBT y rence EQUI EQUIT
Unse Secur Share Share TY Y
cured ed Capit Capit
) al al
1 MAR 1,529.3 106.65 1,636.0 87.29 2007 238.03 NILL 238.03 12.70
2007 5 0

2. MAR 1,969.8 617.26 2,587.0 91.54 2008 239.07 NILL 239.07 8.46
2008 0 6

3. MAR 3,071.7 981.00 4,052.7 93.69 2009 272.62 NILL 272.62 6.30
2009 6

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Company capital structure is good in market .Company take more risk in marlet that
shows that comoany raise more DEBT from market in last five years as compare to
Equity capital.And the Company Debt equity ratio is in graph.

DIVIDEND
POLICY
S.NO YEA REPOR NUMBE EARNING DIVIDEND PER
R TED R OF PER SHARE
NET SHARE SHARE(E
PROFI PS)(in DIVIDE % OF Divide
T(in Rs.) ND DIVID nd
Cr.) END yield

1. MA 512.67 111,647,9 44.02 150.81 130.00 10.46

R 27
200
5

2. MA 857.10 233,399,5 35.26 243.97 100.00 3.19

R 84
200
6

3. MA 1,068.39 238,032,7 43.10 282.23 115.00 2.92

R 07
200
7

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4. MA 1,103.37 239,073,3 44.54 282.61 115.00 3.31

R 82
200
8

5. MA 867.51 272,615,9 30.60 278.83 100.00 5.22

R 60
200
9

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As in graphs company profits was very good in year 2007 and 2008 but due to market
downfall Company net profits also decressed .As the company share earnigs also
dcreesed and company EPS rate wass down in year 2009.Dividends of company was also
dcressed to 115 to 100 in year 2008 to 2009.

LIQUIDITY
POSITION (In Cr.)

S.NO YEAR CASH IN BANK MARKETAB TOTAL

HANDS LE
SECURITY

1. Mar 2005 162.34 35.73 425.91 923.98

2. Mar 2006 182.60 75.79 471.92 730.31

3. Mar 2007 329.96 85.94 910.17 1326.07

4. Mar 2008 194.27 116.31 550.65 864.23

5. Mar 2009 354.39 281.22 938.82 1574.43

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Company liquidity position is good in market .In last five years company cash and bank
money is incressed .As in graph company capital ratio is incressd . companys bank
depotion and cash value is increased.

FINANCIAL
CREDITS (In Cr.)

S.NO YEAR CURRENT Current Total CURRENT

ASSETS Liabilities Assets ASSEST
/Liabilities RATIO %

1. Mar 2005 2,299.56 1,759.71 3,039.15 1.30

2. Mar 2006 2,749.06 2,051.64 3,792.25 1.34

3. Mar 2007 3,748.17 2,665.65 5,188.91 1.40

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4. Mar 2008 3,644.37 3,240.01 6,937.13 1.12

5. Mar 2009 5,081.04 4,797.76 9,314.84 1.06

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In financial credits of company the total assest ratio of company was decressed rapidly
as compare the last five year data of company .In the year 2006,2007 company assest
ratio was incressed but due to market resection company goes in lower level of market
graphs.In year 2008,2009 company assest ratio was decrresd .But total assest and
liabilities of company are good. In last five years.

INITIAL PUBLIC
OFFER’S
S.NO YEAR PRICE PER TOTAL SHARE NUMBER OF
SHARE RAISED(In Cr.) SHARE

(in RS.)

1. Mar 2005 10 111,647,927 111,647,92.7

2. Mar 2006 10 233,399,584 233,399,58.4

3. Mar 2007 10 238,032,707 238,032,70.7

4. Mar 2008 10 239,073,382 239,073,38.2

5. Mar 2009 10 272,615,960 272,615,96

As last records of Mahindra in year 2005 company raise 111,647,92 equity shares. In
year 2006,2007,2008,2009 company raise 233,399,58/238,032,70/239,073,38/272,615,96

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respectively. In all offers company not declare Preference shares. Also company raise
more equity from market every year.

CREDIT RATING OF COMPANY(Last 1 year)

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 Rating Date Security Amount Rating Rating
MAHINDRA Type
MOTOR’S
Type
30-12-2009 Commercial 300 P1+ Very Strong With Relatively Higher
Paper Standing
30-12-2009 Debt 50 AA The instrument rated AA are judged to
Progamme offer high safety of timely payment of
interest and principal. They differ in
safety from AAA issues only marginally.

30-12-2009 Debt 250 P1+ Very Strong With Relatively Higher

Progamme Standing
30-12-2009 Short Term 300 P1+ Very Strong With Relatively Higher
Debt Standing
02-12-2009 Non- 600 LAA+ Risk factors are modest and may vary
Convertible slightly. The protective factors are strong
Debentures and the prospect of timely payment of
principal and interest as per terms under
adverse circumstances, as may be
visualised, differs from "LAAA" only
marginally.
02-12-2009 Debt 272 LAA+ Risk factors are modest and may vary
Progamme slightly. The protective factors are strong
and the prospect of timely payment of
principal and interest as per terms under
adverse circumstances, as may be
visualised, differs from "LAAA" only
marginally.
02-12-2009 Debt 128 A1+ The prospect of timely payment of
Progamme debt/obligation is the best.
05-10-2009 Debt 50 The instrument rated AA are judged to
Progamme offer high safety of timely payment of
interest and principal. They differ in
safety from AAA issues only marginally.

05-10-2009 Debt 250 P1+ Very Strong With Relatively Higher

Progamme Standing
05-10-2009 Commercial 200 P1+ Very Strong With Relatively Higher
Paper Standing
05-10-2009 Short Term 300 P1+ Very Strong With Relatively Higher
Debt Standing

16-09-2009 Corporate 0 GVC A CRISIL GVC rating indicates the

Governance Level1 relative capability of a firm with
respect to creating wealth for all its
stakeholders while adopting sound
corporate governance practices.
The ratings are assigned across an
eight point scale with CRISIL GVC
Level 1 rating being the highest
rating and CRISIL GVC Level 8
being the lowest. It measures the
balanced creation of value amongst
all its stakeholders using a
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judicious mix of qualitative and

quantitative parameters. It further
 MAHINDRA MOTOR’S

TRACK________________AND ___________ REPORT NEWS

RELEVANT_____________TO______________ COMPANY
CHRONOLOGICALLY
(DATE WISE)

On preferential basis Mahindra & Mahindra has allotted 93,95,974 equity shares of Rs. 10 each to
Golboot Holdings on preferential basis. These shares were allotted by the company on 27 January
2010.

4.) M&M ties up with Mitsubishi for farm equipment

Friday, February 12, 2010

India's largest tractor manufacturer Mahindra & Mahindra (M&M) today signeda technical license
agreement with Mitsubishi Agriculture MachineryCompany, Japan, for transfer of agricultural
machinery technology.The agriculture machinery technology is being licensed to M&M
FarmEquipment Sectors' (FES) Applitrac business for manufacturing Mitsubishi'sproducts in India.
These machinery will be sold under the Mahindra brandname in India as well as in export markets
like China and the Saarccountries.To start with, M&M will produce the rice transplant machine,
priced at Rs1.75 lakh from its plant in Nagpur. The company is making an investment ofRs 15 crore
towards the venture and intends to sell 1,000 units of themachine this year, while the target is
expected to go up to 5,000 units peryear in the next two to three years.These machines reduce man-
hours while improving costs savings.

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6.) M&M world’s No.1 tractor co by volume

Friday, February 19, 2010

MUMBAI: Mahindra and Mahindra (M&M) has become the world's number one tractor
company by selling 1.59 lakh tractors in 2009. It has pipped John Deere of the US, which
sold 1.59 lakh tractors. If we take volumes of M&M and Swaraj and don't include
subsidiaries or international operations, we don't think any single entity could have crossed
this mark, said Anjanikumar Choudhari, president of the farm equipment division at M&M.
The Mumbai-based automobiles-to-finance-to-IT conglomerate company is targeting to sell
1.70 lakh tractors (on a consolidated basis) by end of this financial year. It has already
crossed sales of one lakh tractors till January end. The one-lakh milestone is a very special
oneforus.
The company has increased its marketshare in India from 35% to 42-43% after
scripting a turnaround story for Punjab Tractors (now Swaraj) which it acquired in
2007.

7.) Mahindra sells 70,000 scooters

Friday, April 09, 2010

Mahindra 2 Wheelers sold 70,000 scooters last fiscal. Sales of the Duro,Rodeo and Flyte totalled 12,573 un
MrAnoop Mathur, President and Member of the Group

8.) Mahindra & Mahindra Ltd. - Change in Directorship

Wednesday, March 31, 2010

Mahindra & Mahindra Ltd. has informed the Exchange that the Board ofDirectors of the Company at its Meet
Mr.A. K. Nanda, Executive Director of the Company, after 36 illustriousyears of service of which 18 years w
from theclose of March 31, 2010. (2) Mr. Nanda has been appointed as anAdditional Director of the Compan
GeneralMeeting of the Company ('AGM') pursuant to the pr

9.) Mahindra & Mahindra appoints additional director

Wednesday, March 31, 2010

With effect from 01 April 2010

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The board of Mahindra & Mahindra in its meeting on 30 March 2010 has appointed

A K Nanda as additional director of the company with effect from 01 April 2010.
10.) Mahindra offers laptops to tractor buyers in AP
Saturday, August 15, 2009

Hyderabad, Aug. 14 The Andhra Pradesh Chief Minister, Dr Y.S. RajasekharaReddy, on Friday
handed over laptops to farmers who purchased tractors fromMahindra & Mahindra.

Dr Reddy observed “With the changing demographics of the Indianpopulation, such initiatives are
essential to ensure that India builds atechnologically progressive youth populace.”

CONCLUSION
 In last 5 years the Mahindra motors in very good condition in market. As in this term
paper the company last five years Financial analysis report is presented.

 Company rating and company tracks news of last one year is also inclided in this term
paper.

At last Financial Year 2009 report analysis is.......

 The year under review was an extremely trying one. The market place witnessed
unprecedented turbulence in the wake of the Global Financial meltdown.

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 A dividend of Rs.10 per Equity Share, payable to those Shareholders whose names
appear in the Register of Members as on the Book Closure Date.

 Despite these daunting conditions, the net income of the Company grew by 14.5%
to 13,364 crores in the year under review from Rs.11,672 crores in the financial
year 2008. However, the difficult global economic climate of the year exerted
considerable pressure on the Company and the profit after tax for the current year
was Rs.837 crores against Rs.1,103 crores for the previous year.

 The financial year 2009 has been a very challenging year for corporates in the wake
of the unprecedented global financial crisis.

 In year 2009 Company has successfully accessed both domestic and overseas capital
markets with diverse instruments, maturities and interest rates to part finance its
requirements.

 Actual results could differ from those expressed or implied. Important factors that
could make a difference to the Company's operations include raw material availability
and prices, cyclical demand and pricing in the Company's principal markets,
changes in Government regulations, tax regimes, economic developments within
India and the countries in which the Company conducts business and other
incidental factors.

BIBLIOGRAPHY
www.Mahindra.com

http://www.mahindra.com/Heritage/History.html

http://www.mahindra.com/investorsrelations/AnnualReport.asp

www.Captlineplus.com

http://capitaline.com/user/framepage.asp?id=1

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http://money.rediff.com/

http://money.rediff.com/companies/mahindra-and-mahindra-
ltd/10520003/balance-sheet

http://172.19.2.250/lpuums/

http://172.19.2.6:8080/webopac/html/searchform#

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