Project

CHAPTER 1
ABSTRACT
The global automotive aftermarket industry is expected to reach 722.8 billion by 2020.
Today’s consumers are keeping their vehicles longer and are more aware of the
importance of preventive maintenance and scheduled servicing to maximize the
lifetime value of their vehicles. This rising demand for aftermarket parts and services is
spurring new growth and revenue opportunities for a wide range of businesses
operating in the automotive aftermarket industry.This project is an attempt to study the
financial analysis of Mahindra First Choice which throws light over the operational
efficiency of the firm. The major focus of this study is to understand the financial
management of Mahindra First Choice. In this attempt to analyze the financial
performance, secondary data sources has been taken into consideration. Annual reports
of Mahindra First Choice from financial year 2015 – 2016, 2016 – 2017 and 2017 –
2018 are analyzed. Here the financial overview of the Mahindra First Choice is
conducted through trend analysis for the years 2015 – 2016 to 2017 – 2018.Various
financial ratios are used in this study to derive the financial efficiency of the firm. After
analysing, it’s clear that position of Mahindra First Choice is at appreciable level. The
analysis leads to a suggestion of increasing the profitability position more than the
present level by generating internal sources.
KEY WORDS
Comparative Analysis, Financial Analysis, Financial Performance, Financial Ratios

Operational efficiency, Profitability, Trend Analysis.
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1.1 INTRODUCTION
1.1.1 PROJECT TITLE
Title of the project – Business (Financial) analysis of Mahindra First Choice with
Title of
special the project
reference to –new
Business (Financial)
product launch. analysis of MFC with special reference to new
product launch.
1.1.2 CHOICE OF PROJECT
Aftermarket industry is the emerging sector in our country as well as across the world,
this is the sector which is giving pace to economy. At the same time, Mahindrra First
Choice is the company which is a pioneer in this sector with is operations in the
country which are steadily growing. So, financial analysis of Mahindra First Choice
will give a perfect figure as well as idea about management of working capital,
financial ratios, assets, expense, sources of fund and uses of same.
1.1.3 LOCATION
Mahindra First Choice –Fursungi,Pune.
1.1.4 DURATION
The duration of the study was approximately two months (11th of May- 11th of July).
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CHAPTER 2
OBJECTIVE & SCOPE OF THE PROJECT
2.1 OBJECTIVE OF THE PROJECT:
Analysis of Aftermarket sector which is contributing a pace in our Indian economy as

well as in world economy. Now these days Aftermarket sector is emerging
sector.Mahindra First Choice is one of the company which is pioneer and able to
generate sound profit.
Main objective of this project to find out that how the company is managing financial
functions.
 To find out the financial performance of a company

 To Interpret the statements for managerial and future decision-making.
2.2 SCOPE OF THE PROJECT:
This project will be learning device for finance students.
Through this project I would be able to understand the practical uses of fundamental
techniques and technical tools of analysis.
This project will also help to those investors who want to know the financial
performance of Mahindra First Choice.
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CHAPTER 3
COMPANY PROFILE
3.1 LOGO:
3.2 ABOUT COMPANY:
Mahindra First Choice Services (MFC Services), founded in 2008 is India’s largest
chain of multi-brand car service workshops with over 340 workshops, present in 250+
towns across 24 states. It is a fully owned subsidiary of the USD 19 billion Mahindra
Group is a part of the Mahindra group's After Market Sector. It brings together a
unique car service experience for all brands of car under one roof. The company
provides hi-tech car service with the state-of-the-art equipment's and reliable car
service by expert technicians and professionals in minimum possible time.
MFC Services has a strong foothold in the 4-wheeler spare parts segment with its
branded spare parts label – MFC Spares.
MFC Services entered the business of private label spare parts for all brands of cars
under the ‘MFC’ brand name. MFC Services has also launched a unique digital
initiative, Carworkz - an innovative car servicing workshop aggregator. Targeted at all
car owners, this mobile and web based platform, enables them to find the best and
nearest workshops for servicing their car. They can get service estimates through the
innovative service estimator tool, avail of exclusive offers and conveniently book
appointments on the go.
MFC Spares currently expanded its existing portfolio of 4-wheeler spares to include a
comprehensive list of fast-moving 2-wheeler spares like filters, horns, oil and electrical
relays, among others.
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With this new product line, MFC Services plans to increase its footprint to 200
distributors by FY-2020. The Company is currently engaged with 3000 retailers and
8000 mechanics across the country. It aims to establish a country-wide network of over
1000 workshops.
3.3 HISTORY:
Mahindra & Muhammad was incorporated in 1945 by the brothers J.C. Mahindra
and K.C. Mahindra and Malik Ghulam Muhammad in Ludhiana, Punjab to trade steel.
Following the Partition of India in 1947, Malik Ghulam Muhammad left the company
and emigrated to Pakistan where he became the first finance minister of the new state
(and later the third Governor General in 1951). In 1948, K.C. Mahindra changed the
company's name to Mahindra & Mahindra.
Building on their expertise in the steel industry, the Mahindra brothers began trading
steel with UK suppliers. They also won a contract to manufacture Willys Jeeps in India
and began producing them in 1947. By 1956, the company was listed on the Bombay
Stock Exchange, and by 1969 the company had entered the world market as an exporter
of utility vehicles and spare parts. Like many Indian companies, Mahindra responded to
the restrictions of the Licence Raj by expanding into other industries. Mahindra &
Mahindra created a tractor division in 1982 and a tech division (now Tech Mahindra) in
1986. It has continued to diversify its operations ever since through both joint ventures
and greenfield investments.
By 1994, the Group had become so diverse that it undertook a fundamental

reorganization, dividing into six Strategic Business Units: Automotive; Farm
Equipment; Infrastructure; Trade and Financial Services; Information Technology; and
Automotive Components (known internally as Systech). The new Managing Director,
Anand Mahindra, followed this reorganization with a new logo in 2000 and the
successful launch of the Mahindra Scorpio (a wholly indigenously designed vehicle) in
2002. Together with an overhaul in production and manufacturing methods, these
changes helped make the company more competitive, and since then the Group's
reputation and revenues have risen noticeably. Currently, Mahindra & Mahindra is one
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of the 20 largest companies in India In 2009, Forbes ranked Mahindra among the top
200 most reputable companies in the world.
In January 2011, the Mahindra Group launched a new corporate brand, Mahindra Rise,
to unify Mahindra's image across industries and geographies. The brand positions
Mahindra products and services as aspirational, supporting customers' ambitions to
'Rise.'
In April 2012, the Mahindra Group showed interest in purchasing the bankrupt
automobile company Saab, and placed several bids for Saab, though was outbid by
Saab's new owner National Electric Vehicle Sweden.
3.4 MILESTONES OF MAHINDRA GROUP
1945
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 The Company was Incorporated and converted into Public Limited in 1955 at
Mumbai.
 The Company Manufacture Jeep type vehicles, petrol industrial engines,
industrial process control instruments and flow meters.
 Trading in steel and manufacture of professional grade electronic components.
Jeeps are manufactured under a license and an agreement with Willys Motors
Inc., Toledo, Ohio, U.S.A., for whom the Company also acts as exclusive
distributors for the whole of India for their entire range of vehicles including
utility vans, cargo/personnel carriers and pick-up trucks.
1958
 The Company entered into an agreement with Birfield Ltd., to form Mahindra
Sintered Products Private Limited for the manufacture of a wide range of self-
lubricating bearings.
1968
 The Instrumentation & Electronics Division came into existence as a result of

merger of the wholly-owned subsidiary of Mahindra Engineering Co. Ltd., with
the Company with effect from 1st April 1968. The activities of the merged
company were being carried on in this division.
 The Company acquired the whole paid-up capital of Mahindra Electro-
Chemicals Products Ltd. Company.
 With effect from 1st April, the wholly owned subsidiary Mahindra Engineering
Co. Ltd., was merged with the Company. International Tractor Company of
India Ltd., was merged with the Company effective from 1st November 1977.
1970
 The name was changed from Mahindra Van Wijk & Visser Ltd. to Mahindra &
Mahindra Ltd. This was merged with the Indian National Diesel Engine Co.,
Ltd., during 1977-78.
1977 - 74,
 700-9.3% Pref. and 12,98,202 No. of Equity share allotted without payment in
cash to shareholders of International Tractor Co. Ltd., on its merger in prop 1:1
Pref. and 2:3 Equity. 12,500-7.8% Pref. shares redeemed on 1.2.1979.
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1978
 The Company started negotiation with Balania K. Zacharopoulos Ltd., Athens

for jointly promoting a new company in Greece for the manufacture of Jeep
vehicles and trucks. Initially, it was proposed to assemble these vehicles mainly
from CKD packs to be shipped from India.
1979
 57,22,764 Bonus equity share issued in prop. 1:1.
1983
 76,30,352 Bonus equity shares issued in prop. 2:3 in October 1984.
1984
 Mahindra Spicer Ltd. (MSL), was amalgamated with Mahindra & Mahindra
Ltd. (MML) with effect from 3rd April. Pursuant to the scheme of
amalgamation of MSL with MML, the shareholders of MSL were allotted
1,88,166 equity shares of MML in the ratio of 1 equity share of MML for every
6 shares held in MSL.
 The Company entered into a collaboration agreement with Foramer S. A., an
associate of Forasol S.A., for purchase of Ile d' Amsterdam an offshore drilling
rig at a price U.S. $10.75 million. The Company arranged for a foreign currency
loan through Bank of Baroda. In view of this purchase, the Company obtained a
firm order from ONGC for drilling services for 2 years.
1985
 A letter of intent was obtained for the manufacture of 50,000 lines of

EPABX/PAXs in collaboration with OKL Electric Co. of Japan.
 The Company also signed a Memorandum of Understanding with the British
Telecom p.l.c. of London under which the two companies were to jointly
explore and develop opportunities in telecommunication and technical fields in
India.
 MBT was made a subsidiary of the Company with 60% holding and the
remaining 40% was subscribed by the foreign partners, the British
Telecommunications p.l.c., U.K. (BT) for provision of software engineers of
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MBT to work on various projects of BT in the U.K. MBT also decided to issue
equity capital to the extent of Rs 4 crores out of which shares worth Rs 2.40
crores were to be offered to Mahindra & Mahindra Ltd., for subscription and the
balance shares worth Rs 1.60 crores were to be offered to BT. 1987
 (17 months), approval from Government was received for the manufacture of
Peugeot 504 pick-up vehicles in collaboration with Automobiles Peugeot of
France.
 A new model M-595 tractor in the 50 H.P. range was introduced.
1988
 The Company acquired a off-shore drilling rig "Ile d' Amsterdam" from
Foramer S. A., France as on 1st March. A firm letter of intent was received for
one land rig for drilling operations at Jwalamukhi, Himachal Pradesh against a
tender from ONGC. The Company already entered into an agreement with
Forasol S.A., for purchase of a land rig and related equipment.
1989
 During the year improved versions of CJ 500 range of jeeps and FJ range of
LCVs were introduced. Also a sporty model of jeep was introduce which was
well received by the target audience.
 During September, the Company acquired the automotive pressing unit at
Kanhe from Guest Keen Williams, Ltd. for a gross consideration of Rs 28.75
crores. The unit has an installed capacity of 10,000 tonnes per annum.
1990
 The Automotive division faced adverse market conditions resulting in a drastic

reduction in production and sales of vehicles. The Automotive division
introduced a direct injection diesel engine, the MDI 2500 an engine on the CJ
500 vehicles. A new fuel efficient 10 seater vehicle having a direct injection
diesel engine was introduced.
 A letter of intent was obtained from ONGC for extension of the contract for a
further period of one year. However, on account of certain procedural delays
ONGC dehired the rig and it remained non-operational for about 160 days.
However, the Company received a contract from ONGC for a much higher day
rate and the rig was rendering service to ONGC with effect from 9th November.
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 The Company issued 48,16,012-12.5% fully convertible debentures of Rs 110
each with a provision to apply, instead, for 58,86,236 fully convertible zero
interest bonds of Rs 90 each. An option was given to apply for a combination of
debentures and bonds subject to an aggregate value of Rs 52,97,61,320. These
debentures/bonds were offered on rights basis to the then existing equity
shareholders in the ratio of one debenture for every four equity shares held. The
issue was fully subscribed. Additional bonds/debentures were issued to retain
the over-subscription to the extent of 15% of the issue which is equivalent to
7,22,401 debentures of Rs 110 each.
 Through another letter of offer, two blocks consisting of 8,64,049 debentures
each were offered to Mahindra Companies and International Finance
Corporation, Washington, respectively with an option to apply for bonds subject
to the aggregate value of Rs 9,50,45,390 for each block. The issue was fully
subscribed. Additional bonds/debentures were issued to retain the over-
subscription to the extent of 15% of the issue which is equivalent to 1,29,607
debentures of Rs 110 each for each block. - The employees (including Indian
working directors)/workers of the Company were also offered on an equitable
basis 2,40,801 debentures of Rs 110 each with a provision to apply for bonds
within the aggregate limit of the issue. The issue was under subscribed. Only
16,750 debentures and 68,250 bonds were allotted. The balance
debentures/bonds were allowed to lapse.
 As on 1st April, 49,90,354 debentures and 26,20,371 bonds were allotted. - As
on 1st May, the Company allotted on private placement basis 14% redeemable
non-convertible debentures for a total value of Rs 20 crores to UTI, LIC, ICICI,
Army Group Insurance Fund and GIC and its subsidiaries. These debentures are
redeemable in full at a premium of 5% on 1st May 1997. 1991
 New replacement kits for the series of diesel engines, the XDP 4.90 were
successfully launched in order to replace petrol engines in passenger cars and
create new demands for the series of diesel engines manufactured by the
Company.
 During the second half of the year, the Company introduced the new range of
`Commander' vehicles which were well received in the market. A new model on
the anvil was a five door ten seater vehicle "Armada" with a factory built body
for which dies were imported from Japan.
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 To meet the changing needs of the market, the Company introduced a new
model 225 DI (25HP) tractor.
 Another 8,64,049 zero interest fully convertible bonds of Rs 90 each for a total
value of 9,50,45,390 were allotted to Peugeot India Holding, France, a
subsidiary of Automobiles Peugeot, France as on 18th January.
 As per the terms of the issue, a portion of Rs 55 of each debenture was
converted into one equity share of Rs 10 at a premium of Rs 45 per share and a
portion of Rs 45 each bond was converted into one equity share of Rs 10 at a
premium of Rs 35 per share an on 1st April.
 Accordingly, the Company allotted 49,90,354 equity shares on conversion of
debentures and 34,84,420 equity shares on conversion of bonds. The balance
amount of each bond and debenture was to be converted as per the same terms
given above at the end of 18 months from the date of allotment.
 In order to meet the long term working capital requirements, the Company
issued in January 1991, 14% redeemable non-convertible debentures
aggregating Rs 25 crores to Infrastructure Leasing and Financial Services, Ltd.
on a private placement basis. The debenture are redeemable in full at premium
of 5% on 8th January, 1998.
1992
 It was proposed to launch a new LCV with a much larger platform, imported
driving comfort and better styling .
 The Company issued 72,42,719 - 14.5% secured Non-convertible redeemable
debentures of Rs 100 each with a detachable warrant attached to each debenture
entitling the holder thereof to apply for 1 equity share of Rs 10 each at a
premium of Rs 20 per share in the ratio 1 debenture: 5 equity shares held, on the
expiry of six months and 36 months from the date of allotment of debentures.
 Another 3,62,136 non-convertible debentures with detachable warrants were
also offered to employees on an equitable basis. Only 2,20,300 debentures taken
up.
 76,04,855 oridinary shares of Rs 10 each at a premium of Rs 20 per share were
to be issued to those exercising the rights attached to the warrants between 6
months and 36 months from the date of allotment of debentures. The debentures
were to be redeemed not earlier than the end of 7th year but not later than the
end of the 10th year from the date of allotment of debentures.
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1993
 The Automotive division undertook to introduce a wide range of products such

as mini bus, MM Deluxe, Armada deluxe, Cabking pick-up, CL-Classic & a
single/double Cab pick-up etc.
 Mahindra Nissan Allwyn Ltd. (MNL) was amalgamated with Mahindra &
Mahindra Ltd. (MML) with effect from 1st November. Pursuant to the scheme
of amalgamation, the shareholders of MNAL were allotted 9,73,200 equity
shares of MML in the ratio of 1 equity share of MML for every 25 shares held
in MNAL. With the merger modern automotive plant owned MNAL became a
Unit of the Company's automotive division.
 The Company issued 100,47,043 Global depository receipts valued at US $
74.75 million. Each GDR was issued at a market price of US $7.44 and was
supported by equal number of underlying shares. Accordingly 1,00,47,043
shares were allotted at a premium of Rs 22.50 per share.
1994
 During the year a new Company Mahindra USA Inc. had been established in
Texas, U.S.A. with the objective of increasing tractor sales in U.S.
 9,73,200 shares allotted to the erstwhile shareholders of MNAL 11,14,682
shares allotted against the detachable warrants. 35,85,874 shares allotted to Ford
Motor Company USA, at a premium of Rs 370 per shares. 28,00,000 shares
allotted to the promoter group.
1995
 A New LCV model-cabking DI 3150 - with a payload of 2.5 tonnes, a 5-speed

transmission and high quality components was launched. Also, a sporty 4-wheel
drive vehicle Mahindra Classic with modern fitments such as Vacuum assisted
brakes, disc brakes in front, wire wheels & bull bar was launched for the
domestic market. In addition, a new commander 5-Door Hard Top vehicle,
primarily targeted for semi-urban and rural transportation was introduced.
 Two new models - 365 DI and 585 - DI were also launched in 30-35 HP and 45-
50 HP segments respectively.
 The Company entered into a joint venture agreement with Ford Motor
Company USA (Ford) for promotion of a new Company for the manufacture
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and marketing of Ford range of passenger and other vehicles. The Company has
an equity participation of Rs 160 crores each by Ford and the Company.
 22,71,322 No. of Equity shares allotted in conversion of warrants. 407,17,489
bonus equity shares issued in proportion 2:3.
 The tractor division received the ISO 9001 certification from TUV of Germany.
1996
 The Company proposed to introduce the Àrmada Grand' with XD3 diesel
engine, 5 speed BA 10 transmission with air-conditioning and power steering as
standard features. New models like, soft top and FRP versions of CL/MM 550
models, comfortable 8 seater Armada with Disc Brakes and an optional factory
fitted air conditioner, Commander 650 DI on a longer wheel base and MM
540/550 XDB models with the powerful 2.5 lines XD3 engine and the all-
synchromesh 5 speed BA 10 transmission were launched during the year.
 During July, the Company offered US $100,00,000-5% convertible note during
July 9, 2001 came into GDRs each representing one share at a cover sum price
of US $11.955 per GDR. Till date 15,73,830 shares issued.
1997
 The Zaheerabad plant and R&D division were awarded Iso 9002 and ISO 9001
certification respectively. With the technology received from Fuji Technica,
Japan the company undertook to manufacture dies for vehicle bodies in the new
Die Shop. During the year, 7 new models to cater to different nice markets were
introduced.
 New products viz. 275 DI TU upgrades B-275 model with increased power and
585-C, 585 DI model with constant mesh transmission for ease operation were
introduced.
 M&M is setting up an engineering and product development centre at Thane to
strengthen its technology and designing capacities.
 M&M is setting up a joint venture with Mondragon Corporation of Spain in the
area of iron foundry. The joint venture agreement was signed in Spain by M-M
at an Indo-Spain joint business council meeting organised by the Federation of
Indian Chambers of Commerce and Industry and the Association of Chambers
of Commerce and Industry of India.
 M&M is entering into a 50:50 joint venture with the $8 billion Case of the US
for manufacturing high horse power tractors.
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 The M&M-Sealand joint venture is considering introducing a Ro-Ro (Roll-on,
Roll-off) railway service in India.
 The Mahindra group has tied up with Sega Enterprises Ltd and Mitsubishi
Corporation of Japan to form a joint venture (JV) in India to develop and launch
Sega branded family entertainment centres.
 M&M has signed an agreement with Chemoleums Ltd under which M&M will
use a special quality of Chemoleums lubricating oil, Mahindra Singlestar, for its
tractors.
 M&M has signed a wage agreement with its union at its automotive plant at
Kandivali, evolving a Mahindra Production System (MPS) which is an
amalgamation of latest work measurement techniques and Toyota Production
Systems.
1998
 A joint venture company is being promoted by Mahindra and Mahindra

Limited, Infrastructure Leasing and Financial Services and Tamil Nadu
Industrial Development Corporation to set up an industrial park near Chennai to
attract auto ancillary units and all categories of non-polluting industries.
 Utility vehicle manufacturer, Mahindra and Mahindra (M&M) on May 27
signed a productivity and capacity linked wage agreement with its union
(Bharatiya Kamghar Sena) at its tractor plant at Kandivali.
 M&M has signed new productivity agreements with its workers at the Kandivli
(Mumbai), Nashik and Zaheerabad (Andhra Pradesh) plants.
 Mahindra Ford is likely to sign a MoU with the government to import auto kits.
 Mercedes-Benz India Ltd and Mahindra Ford India Ltd have signed a MoU
with the Directorate-General of Foreign Trade (DGFT), under the new MoU
policy for car manufacturing in the country.
 Danish company Maersk, Mahindra & Mahindra and the Tamil Nadu Industrial
Development Corporation (Tidco) propose to establish a joint venture to
develop Colachel on western coast of south Tamil Nadu into a hub port.
 Mahindra & Mahindra (M&M) is all set to float a 50:50 joint venture company
with the Punjab state government for setting up a hi-tech agro-commodity
exchange in the state.
1999
 M&M has set up a new company - Mahindra Auto Specialities Ltd - for bullet-
proofing passenger vehicles and providing specialised services. M&M has
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signed an MoU with Plasan Sasa of Israel for design and development of
armoured (bullet proof) solutions on M&M utility vehicles for use by Indian
security forces.
 The Mahindra & Mahindra group and the TVS group have floated a joint
venture to provide software solutions to the automobile sector.
 Mahindra and Mahindra (M&M) is working towards introducing a slew of
models in India from the Mitsubishi stables, including its famed Pajero brand of
multi-utility vehicles (MUVs) and jeeps.
 Mahindra & Mahindra Ltd (M&M) has created a tier-IT structure under
Mahindra Holdings & Financial Ltd whereby individual subsidiaries will tap the
capital market depending upon their need for cash.
 Utility vehicle major, Mahindra and Mahindra (M&M), is entering the Rs
1,000-crore three-wheeler market for the first time. The company will launch its
first three-wheeler a diesel-driven eight seater within 8-10 months from now.
2000
 The Company will be launching its first CNG-powered utility vehicle in Delhi.
 The Company consequent to disciplinary action taken by the Management
against certain workmen and Union representative, the workmen of Kandivli
Plant of Tractor Division of the company initially stopped work and thereafter
resorted to illegal strike on 11th January.
 The Company proposes to make a call for redeeming Bonds of value US
$25.378 million out of current outstanding of US $27.866 million.
 The Company tie-up with Citibank for a channel financing agreement for their
dealers.
 Mahindra & Mahindra launched its eight seater Marshal DI Deluxe 2000 in
Western Maharashtra.
 Mahindra Auto Specialisites Ltd, a wholly-owned subsidiary of the company
delivery of the first "Neticle" (net-vehicle) - brand named Quadro - in India.
 The Company has launched its new generation tractors Arjun 605 DI at the
Kandivali plant.
 The Company and French car maker Renault have signed an agreement to
explore the possibility of using Renault petrol engines for M&M's planned
Scorpio utility vehicle.
 The Company has launched a fresh voluntary scheme for employees in its
tractor division. The Scheme will open on June 8 and will continue till July 31.
 The Company is set to launch its 2.5-litre multi-utility vehicle, Bolero.
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 The Company launched the 39 HP and 40 HP models of its `Bhoomi Putra'
range of tractors.
 The Company has entered into a technical alliance with Austrian engine
manufacturer AVL list GmbH for production of light commercial vehicles of 3.5
tonne capacity.
 M&M will launch the LCV under the `Loadking' name in January next year.
 M&M has launched its first 60 HP class tractor Arjun 605 DI here, will from
now roll out a new mode very six months.
 The Company the utility vehicle market leader, launch of its latest UV, the
Bolero GLX. - The Company will launch Scorpio, its urban utility vehicle, by
the end of the year.
 The Company has launched the first of its new series of "Horizin Tractors", the
Mahindra "Arjun 605 DI" in Andhra Pradesh.
 The Company launched diesel version of Bolero in a short time.
 Mahindra & Mahindra is to go for a expansion, keeping pace with its plans for
the introduction of new models, including the Scorpio.
 Mahindra & Mahindra is likely to introduce agricultural related implement and
equipment in the near future.
 Mahindra and Mahindra Limited (M&M) launched yet another range of new
generation tractors to grab a large share of an emerging mature market.
 The Company has launched its fourth portal business with an investment of $1
million.
 Mahindra Intertrade, subsidiary of Mahindra & Mahindra, has launched a steel
trading portal, steelmartindia.com.
 Fitch Ratings India has assigned Ìnd AAA' rating to the proposed five-year Rs
100-crore non-convertible debenture programme of the company.
 The Board has approved an ESOS and decided to allot 55,24,219 No. of equity
shares to the Mahindra & Mahindra Employee Stock Option Trust.
2001
 The Company has set up a farm extension services division called Mahindra
Shubh Labh, which will pioneer the building of a chain of one-stop shops
offering a comprehensive range of farm-gate services.
 Mahindra Intertrade, the largest non-automotive company of the Mahindra &
Mahindra group, has entered into a distribution alliance with Lego.
 Mr. Anand G. Mahindra has been appointed as Vice-Chairman and Managing
Director.
 Mahindra & Mahindra is set to launch three new variants of its utility vehicle
Bolero to boost its presence in the urban segment.
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 The strike at the company's Nashik automotive plant which began on March 4,
has been called off with effect from 8th March.
 Credit Rating and Information Services of India Ltd. has revised the rating
assigned to the company's long-term debentures to ÀA+' to ÀAA'.
 Mahindra & Mahindra has tied up with French auto giant Renault for sourcing
petrol engines for its premium utility vehicle Scorpio which would be launched
later this year.
 The price of Mahindra & Mahindra Ltd (M&M) shares hit a 92-month low on
the Bombay Stock Exchange (BSE) on june 14 fuelled by market apprehensions
of a steep fall in the company A sales in May 2001
 Mahindra & Mahindra launched the premium version of its 7 seater multi-utility
vehicle, Bolero GLX.
2002
 Mahindra & Mahindra Ltd has informed BSE that ICICI Bank Ltd has
withdrawn the nomination of Mr Inder Chand Jain as their Nominee Director
from the Board of M& M with immediate effect.Consequently Mr Inder Chand
Jain ceases to be a Director of Mahindra & Mahindra Ltd with immediate effect.
 Mahindra & Mahindra Ltd has informed BSE that Mr. David Friedman
(currently the Alternate Director to Mr.Lewis W. K. Booth) has been appointed
as a Director of the Company w.e.f. October 30, 2002 in the vacancy caused by
the cessation of Directorship of Mr. Lewis W.K. Booth. Mr. V.K. Chanana has
been appointed as a Nominee Director of UTI w.e.f. October 30, 2002 in place
of Mr. Sanjiv Kapoor whose nomination has since been withdrawn by UTI.
2003
 Unleashes MaXX Pick Up utility vehicle

 Signed an agreement with Canara Bank. Where in, Canara Bank will provide
loan to those farmers who are willing to buy Mahindra's tractors and other farm
implements.
 Mahindra and Mahindra Ltd on December 24th showcased its new products,
Bolero XL and Bolero XLS, for prospective customers in Karnataka.
2004
 Mahindra & Mahindra delisting of shares from DSE

 M&M launches two variants of Bolero utility vehicle in TN
17
 The former managing director of Rallis India, Mr Rajeev Dubey, is joining
Mahindra & Mahindra Ltd (M&M) as Executive Vice-President (Human
Resources & Corporate Services). Mr Dubey has previously held senior
positions at Tata Steel and was the managing director of Tata Metaliks.
 Auto giant Mahindra and Mahindra has launched its latest variants of Bolero
XL range here on January 19, 2004, thus heralding its launch across the State.
 M&M enters into agreement for acquiring majority stake in US based
Bristlecone Inc
 Mahindra & Mahindra Ltd has informed that the equity shares of the Company
have been delisted from Pune Stock Exchange Ltd w.e.f. January 16, 2004.
 M&M unveils innovation matrix to enhance performance
 Mahindra Special becomes M&M's new IT unit
 Equity shares delisted from Madras Stock Exchange
 tied up with an Iran-based company Barchinkar for localising M&M tractors in
the Iran market
 Mahindra Tractors in accord with Castrol
 M&M rolls out India's first turbo tractor
 Mahindra & Mahindra Ltd has informed that HSBC Global Investment Fund
has acquired 3,99,825 equity shares of the company through market on May 17
 Andhra Bank has announced that it has joined hands with Mahindra Tractors for
financing the distribution of tractors through the bank branches across the
country
 Mahindra & Mahindra (M&M) has forayed into the Latin American markets
through the opening of an assembly line in Uruguay
 Mahindra & Mahindra Ltd (M&M) on announced its foray into the South
African automobile market
 Hemant Luthra to head M&M's new MSAT Sector
 Dena Bank inks MoU with M&M for tractor loans
2005
 Mahindra & Mahindra tractors' top dealer in the US has become the largest
tractor dealer in the US, muscling past dealers of John Deer, New Holland and
Kubota.
 M&M forays into Australian tractor market on February 14, 2005.
 Mahindra & Mahindra Ltd (M&M) launches its Common Rail Diesel Engine
(CRDEe) fitted-Scorpio, which conforms to BS III emission norms on February
22, 2005,
 Mahindra & Mahindra executes JV Agreement with Renault
 Scorpio unveiled in Malaysia on May 4, 2005
18
 M&M, Renault ink MoU to set up Rs 550 crore car manufacturing plant in
Nasik
 M&M introduces new pick-up vehicle on July 6, 2005
 Mahindra unveils 3-wheeler cargo carrier Champion Alfa model
 Mahindra & Mahindra inks a JV with International Truck & Engine
Corporation, USA
 Mahindra & Mahindra enters into agreement with Plexion Technologies,
Mauritius
 M&M has signed a memorandum of understanding with the Saigal family of
Pakistan for exporting tractors to that country.
 Mahindra & Mahindra has given the Bonus in the Ratio of 1:1
2006
 M&M unleashes Scorpio Pik-Up in South Africa

 M&M unveils three-wheeler car
 M&M Hingna unit enters into new new wage agreement
 Mahindra & Mahindra Ltd on Oct 11,2006 signed an agreement with ITMCo
(Iran Tractor Manufacturing Co) to sell tractors in Iran. The agreement was
signed in Tehran.
 Mahindra & Mahindra (M&M) and French automaker Renault have joined
hands yet again to establish a greenfield passenger car manufacturing plant in
India within five years.
 Mahindra & Mahindra inks deal with Global Vehicles USA Inc
2007
 Mahindra & Mahindra acquires a leading German Forging Company

Schoneweiss & Co. GmbH.
 Mahindra unveils new Bolero in Gujarat.
 Mahindra and Mahindra (M&M) has launched the line of sports utility vehicles
(SUV) and pick up trucks that it plans to begin selling in the United States
starting from 2009.
 M&M unveils Mahindra Pik-Up in Australia.
 The latest product from Mahindra Defence Systems, the Axe FAV is an extreme
offroading multi terrain defence purpose vehicle.
2008
 Mahindra & Mahindra acquires renowned Italian design house, GRD Italy.
2009
19
 Mahindra & Mahindra unveiled its fourth generation Scorpio at an unbeatable
price.
 Mahindra & Mahindra (M&M) signed a memorandum of understanding with
the State Bank of Bikaner and Jaipur (SBBJ) for vehicle finance.
 Mahindra launches luxury sedan XYLO
 M&M enters retail space with Mom & Me
 Mahindra sold 1,788 XYLOs in two weeks
 M&M signs pact with State Bank of Bikaner
 Mahindra gets order for 15,000 Xylo in three months
2010
 Mahindra & Mahindra has hiked prices of its products by up to Rs 18,000 due
to the in excise duty announced in the Budget. - Anand Mahindra, vice-
chairman and managing director, M&M, is keen on attaining companies that
boost M&MÂ’s global aspirations. This can be done by giving a combination of
facilities, technology and dealer network. Meanwhile, M&M came out as the
ideal bidder for getting hold of a majority stake in Ssangyong Motor Company
(SMC).
 Mahindra & Mahindra announced its entry into the heavy commercial vehicle
segment in partnership with Navistar Inc of the U.S.
 M&M launched new mini-truck Maxximo
 Mahindra & Mahindra and Mitsubishi Agricultural Machinery tie-up to deliver
FarmTech prosperity
 Mahindra & Mahindra (M&M) announced that Mahindra Tractors has sold one-
lakh tractors in 2010.
 Mahindra & Mahindra Finance Services Limited (MMFSL) launched its new
loan against gold product in Kerala, which has been specifically designed in
order to provide liquidity against gold ornaments without selling them.
 Mahindra FirstChoice, TVS group in tie up
 -Company has splits its Face value of Shares from Rs 10 to Rs 5
2011
 Mahindra & Mahindra - Mahindra launched Â‘Genio' - India's Next Generation

Pick Up
 Mahindra & Mahindra - Mahindra announces entry into Micro Irrigation
Business
 Mahindra Satyam signs ERP contract with Omran
 Mahindra Group signs strategic alliance with Cisco Systems
20
 Mahindra & Mahindra - India Mahindra & Mahindra Ltd. completes acquisition
of a majority stake in SsangYong Motor Company
 Dr. Pawan Goenka appointed Chairman of SsangYong Motor Company. -
Mahindra & Mahindra - Mahindra launches 'Verito' the Logan with Mahindra
badge
 Mahindra & Mahindra - Mahindra launches the A New Bolero SUV' - Mahindra
& Mahindra - Mahindra launches a New SUV - XUV500
2012
 Mahindra and Mahindra had acquired Ssangyong Motor Company, a South

Korean SUV maker, almost a year ago and are now planning to set up a
assembly plant and invest Rs 800 crore over next 3-4 years
 Mahindra and Mahindra wins arbitration award and class action suit against
global vehicles
 Mahindra & Mahindra has entered the Kenyan passenger vehicles market with
the launch of their utility vehicles, XUV500 and Scorpio. Other vehicles
include pick-up range, Genio and Maxximo mini-truck
 Mahindra & Mahindra Ltd said that the company has signed an agreement with
Telephonics Corporation to form a joint venture, named as Mahindra-
Telephonics Integrated Systems Limited.
 Mahindra Ugine inked joint venture with Sanyo Special Steel & Mitsui & Co.
Ltd. names new venture as Mahindra Sanyo Special Steel Pvt Ltd.
2013
 Auto major Mahindra and Mahindra has inked partnership with online shopping
portal, Snapdeal.com to sell its two-wheeles on the site.
 Mahindra launches new visual identity reflecting modernity and dynamism
 Mahindra & Mahindra Ltd - Mahindra launches the Verito Executive edition
 Mahindra launches MPOWER to train young transport entrepreneurs at Indian
Institute of Management A
 Mahindra unveils the new Maxximo Plus Mini-truck in Bengaluru and Chennai
 Mahindra expands dealership network across India
 Mahindra launches the new Bolero Maxi Truck Plus - The Perfectly Styled City
Pick-up in Ahmedabad
 Mahindra Two Wheelers wins 3 Awards at the CMO Asia - Manufacturing
Excellence Awards 2013 -Mahindra 2 Wheelers opens new dealership in
Zirakpur, Punjab
21
2014
 Mahindra introduces 'Yoga Seats' in Quanto Compact SUV

 Mahindra signs MoU with Government of Bhutan to promote usage of Electric
Vehicles in the country
 Mahindra Defence Naval Systems Inaugurates new Chakan plant
 Mahindra Integrated Business Solutions signs MoU with CARE Advisory
-Mahindra Logistics acquires majority stake in LORDS Freight (India) Pvt. Ltd.
 Mahindra to launch new global scooter called GUSTO
2015
 Mahindra & Mahindra Ltd - Mahindra Two Wheelers and Peugeot Motocycles
complete strategic partnership
 Mahindra inaugurates its extended automotive manufacturing facility at
Zaheerabad in Telangana
 Mahindra & Mahindra & Mitsubishi Heavy Industries enter into Strategic
Partnership in Agricultural Machinery
 Mahindra launches all new mini-truck 'Jeeto' small commercial vehicle
landscape in India
 Mahindra & Mahindra has set up an Africa-focused business unit to maintain
double-digit growth levels in the continent
 Mahi. & Mahi - Launch of the New Thar CRDe
 Mahindra & Mahindra Limited is signing an MOU with the Government of
Tamil Nadu
 Mahindra launches its tough & stylish true blue SUV - TUV 300
 Mahindra & Mahindra -Mitsubishi Agricultural Machinery and Mahindra
announce Start of their Strategic partnership
 Mahindra Introduces the All New Automatic Transmission of The New Age
XUV500
 Mahi. & Mahi - Acquisition of Pininfarina S.p.A ("Pininfarina"), an automotive
design and engineering services company
 Mahindra & Mahindra Ltd - Pininfarina becomes the latest jewel in Tech
Mahindra crown.
2016
 Mahi. & Mahi. inaugurates its Bio-CNG plant in Mahindra World City (MWC),
Chennai
 Mahi. & Mahi. lunches its Premium Pick up 'Imperio'
 M&M launches KUV100; priced at Rs 4.42 lakh
 Mahi. & Mahi - Mahindra launches its new mHawk diesel engine variant
22
 Mahindra Powerol launches 125kVA diesel generators
 Mahi. & Mahi - Mahindra Enters Global Combine Harvester Business
 Mahi. & Mahi - Mahindra Launches New Range of 5 Agri Specialist Tractors -
Mahindra YUVO with Advanced Technology in the 30-4
 M&M launches electric car in other European markets
 Mahi. & Mahi - Mahindra launches the New Bolero with mHAWK D70 engine
at an aggressive price of Rs. 6.59 lakhs
 Mahi. & Mahi - Mahindra launches eSupro - IndiaÂ’s 1st All Electric Cargo and
Passenger Van
 M&M opens spare parts warehouse in Jaipur
2017
 Mahindra & Mahindra, a leading player in electric vehicles in the country

 Mahi. & Mahi Introduces DiGiSENSE in Arjun Novo
 M&M launches new product variants
 Mahindra Electric expects e-vehicle sales to jump; partners with Zoomcar
 Mahindra KUV100 crosses 50K cumulative sales milestone
 M&M launches first ever driverless tractor
 Mahindra forays into construction equipment space
 M&M partners collaborate with Uber, to explore the deployment of electric
vehicles (EVs) on the Uber platform in several cities across India.
 Mahindra & Mahindra acquires 75% stake in Turkish company
23
3.5 CORE PURPOSE:
Indians are second to none in the world. The Founders of our nation and of our
Company passionately believed this. We will prove them right by believing in ourselves
and by making Mahindra & Mahindra Limited known world-wide for the quality of its
products and services.
3.6 CORPORATE OBJECTIVES
 As a large global corporation, we see an incredible opportunity to drive positive

change for all our stakeholders. By making every aspect of our business
sustainable, we re-affirm our commitment to a better world. From our employees,
to the communities which we are a part of, we want to conduct our business
consciously and responsibly. In everything we do, we ensure that we Rise to do
good.
 Aligned to the “Rise for Good” mission, we focus our efforts on the constituencies
of girls, youth, and farmers, by supporting them in education, health and livelihood
enhancement, with innovative programmes that harness the levelling power of
technology. Rise for Good also entails running our business with integrity,
responsibility and transparency, caring for the well-being of the planet and striving
for the welfare of our employees, customers and the community.
24
3.7 CORE VALUES:
Our Core Values are influenced by our past, tempered by our present, and will shape
our future. They are an amalgam of what we have been, what we are and what we want
to be.
1. Good Corporate Citizenship
As in the past, we will continue to seek long term success, which is in alignment with
our country's needs. We will do this without compromising ethical business standards.
2. 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.
3. 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.
4. 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'.
5. Dignity of the Individual
We will value individual dignity, uphold the right to express disagreement and respect
the time and efforts of others. Through our actions, we will nurture fairness, trust and
transparency.
These values are the compass that will guide our actions, both personal and corporate.
25
3.8 ORGANIZATION CHART
3.8.1 CURRENT DIRECTORS
Director's name Age Date of Email address Designation

appointment
RAJEEV 64 24 march Dubey.rajeev@ Director /
BIDYANAND yrs 2008 mahindra.com Professional
DUBEY
CHANDRASEKAR 64 24 march chandrasekar.k@ma Director /

KANDASAMY yrs 2008 hindra.com Professional
RAMESH GANESH 60 15 september neerajv20@gmail.co Director /

IYER yrs 2008 m Professional
ANUPAM THAREJA 46 15 september gopal.luz@gmail.co Director /

yrs 2008 m Professional
RUZBEH BAMAN 55 15 september irani.ruzbeh@mahin Director /

IRANI yrs 2008 dra.com Professional
PRINCE 57 15 september augustin.prince@ma Director /

MULAPAMPALLIL yrs 2008 hindra.com Professional
AUGUSTIN
VIVEK NAYER 53 11 march NAYER.VIVEK@ma Director /

yrs 2011 hindra.com Professional
VENKATA SATYA 54 04 august, Y.VIJAYKUMAR@m Whole-Time

VIJAY yrs 2011 ahindra.com Director /
KUMAR YEGIREDDI Professional
DEBABRATA 68 22 october debu.bandyopadhya Director /

BANDYOPADHYAY yrs 2014 y@gmail.com Independent
26
SONU HALAN 54 22 october sonubhasin@gmail. Director /
BHASIN yrs 2014 com Independent
HEMANT SIKKA 49 19 february Sikka.hemant@mahi Director

yrs 2018 ndra.com
3.8.2 CURREMT KMP OTHER THAN DIRECTORS
Director's PAN Date Of Email Designation
27
Name Appointment Address
VENKATA AACPY4649M 04 August2017 None KMP
SATYA VIJAY
KUMAR
YEGIREDDI
HEMANGI AINPD9642E 17 None KMP
SHAILESH October2017
PATIL
PALLAVI AAAPO1714B 01 May 2018 None KMP
PRASANNA
OGALE
3.9 MAJOR BUSINESS VENTURES OF MAHINDRA GROUP:
AEROSPACE
1.Mahindra Aerospace
AFTERMARKET
1.Mahindra First Choice Services
28
2.Mahindra First Choice Wheels
AGRIBUSINESS
1.Mahindra Agribusiness Division
2.EPC Mahindra
AUTOMOTIVE
1. Mahindra & Mahindra
2. Mahindra Truck & Bus
3. Mahindra Reva
4. SsangYong Motors
5. Mahindra Two Wheelers
6. GenZe
7. Pininfarina
COMPONENTS
1. Engines Engineering
2. Mahindra Castings
3. Mahindra Composites
4. Mahindra Engineering
5. Mahindra Gears and Transmissions
6. Mahindra Forgings
7. Mahindra Hinoday Ltd
8. Mahindra Intertrade
9. Mahindra Sona Ltd.
10. Mahindra Steel Service Centre
11. Mahindra Systech
12. Mahindra Ugine Steel
13. Metalcastello S.p.A
CONSULTING
1.Mahindra Integrated Business Solutions
2.Mahindra Consulting Engineers
3.Mahindra Logisoft
4.Mahindra Special Services Group
DEFENCE
1.Mahindra & Mahindra - Military Defence Division
2.Defence Land Systems
EDUCATION
1.Mahindra United World College of India
2.Mahindra École Centrale
ENERGY
1.Mahindra & Mahindra - Energy Division
2.Mahindra Solar One
3.Mahindra EPC Services Pvt. Ltd.
FARM EQUIPMENT
1.Mahindra & Mahindra - Farm Equipment Division
2.Mahindra USA Inc
3.Mahindra Yueda (Yancheng) Tractor Co
4.Mahindra Tractors
5.Mahindra Gujarat
6.Mahindra Swaraj
7.Jiangling Tractors
29
FINANCIAL SERVICES
1.Mahindra & Mahindra Financial Services Limited
2.Mahindra Insurance Brokers
3.Mahindra Rural Housing Finance
4.Mahindra Mutual Fund
HOSPITALITY
1.Mahindra Holidays and Resorts
INDUSTRIAL EQUIPMENT
1.Mahindra Conveyor Systems
INFORMATION TECHNOLOGY
1.Tech Mahindra
2.Mahindra Comviva
3.Bristlecone
4.CanvasM
LOGISTICS
1.Mahindra Logistics
2.Smart Shift
LUXURY BOATS
1.Mahindra Marine Private Limited
REAL ESTATE
1.Mahindra Lifespaces
2.Mahindra World City
RETAIL
1.Mahindra Retail
SPORTS
1.Mahindra Racing
2.Mahindra-NBA Partnership
3.Mahindra-Celtic Football Club Partnership
DEFUNCT
1.Mahindra Satyam
2.Mahindra Renault
3.Mahindra United FC
30
3.10 PRODUCTS AND SERVICES IMAGES:
1.Multi Brand Car Servicing
Mahindra First Choice Services offers a comprehensive range of car repair and service
options under one roof. From full-service maintenance and repair solutions to cashless
insurance, from towing in case of a breakdown to online bookings, our fast and easy
services are there to take care of each and every need of your vehicle.
2. Pre Owned Cars
We entered the pre-owned car business to make mobility affordable and inclusive.
Choosing one of our pre-owned cars offers you the services of our nation-wide
Mahindra First Choice Wheels pre-owned car dealerships, Mahindra First Choice
Services maintenance and repair centres, and our Mahindra Spares operation. Between
our comprehensive support services, our extensive warranties, and our 24x7 roadside
assistance plan, you’re in good hands.
31
3. Workshop discovery platform
CARWORKZ is a first of its kind Multi-Brand digital car servicing platform which
aggregates car service workshops and connects them with car owners. With a mission
to "Empower Customers, Enable Workshops", it aims to disrupt the unorganized car
servicing industry in India and drive transparency, customer empowerment and better
standards. CARWORKZ aids customers in discovering workshops in their vicinity,
booking online appointments, getting service cost estimates across different workshop
categories and many more such services.
4. Spare parts and accesorries
Proper and adequate maintenance of vehicles is of paramount importance and cannot be

avoided. Complete internal and external care as well as timely maintenance procedures
ensure that your vehicle looks good and keeps running smoothly. The car and bike
accessories not just enhance the aesthetic value but also add safety and utility to its
functioning. Eg : car and bike security system. Different automotive accessories are
used to customize the vehicle and add a personal touch to it along with improving the
car mileage and overall performance. Be it a bike or a car, there are certain essential
spare parts and accessories that can enhance the functioning of the vehicle.
32
3.11 BRANCHES / OFFICES
CORPORATE OFFFICE
CORPORATE OFFICE
MahindraMahindra
First Choice
FirstServices
Choice Ltd.
Services Ltd.
1st Floor,1st
271Floor, 271 Business
Business Park,
Park, Model Model Industrial
Industrial Estate, Estate,
Western Express Highway, Goregaon East, Mumbai – 400063.
Western Express Highway, Goregaon East, Mumbai – 400063.
Landmark: Near Virwani Industrial Estate.
Landmark: Near Virwani Industrial Estate.
BRANCH OFFICEOFFICE
BRANCH
Gala No. Gala

C1/B,No.
Kothari
C1/B,Warehouse No. 03, No. 03,
Kothari Warehouse
Premises Premises Co-Operative
Co-Operative Society Ltd,
Society Ltd,
Chitalsar, Manpada, Thane (W)
Chitalsar, Manpada, Thane (W)
Thane - 400607
Thane - 400607
Maharashtra, India
Maharashtra, India
Tel: ( 022)-65373765
Tel: ( 022)-65373765
33
3.12 SWOT ANALYSIS:
STRENGTH:
 Strong brand recognisation.
 Skilled manpower
 Pioneer in aftermarket industry
 launches new products and services every now and then.
 Quality products and services
WEAKNESS:
 Pricing of products and services high compared to local market.

 Relatively low market share compared to local
OPPORTUNITIES:
 Facilities for expansion.

 Mahindra First Choice to bring Multibrand concept in the market to bring all the
brands under one roof.
THREATS:
 Many new competitors are emerging which have a greateer market share stake
in aftermarket industry.EG Honda,
 Aggressive dominance of domestic market.
CHAPTER 4
THEORETICAL BACKGROUND
34
4.1 INTRODUCTION TO FINANCIAL ANALYSIS:
Financial Analysis is defined as being the process of identifying financial strength and
weakness of a business by establishing relationship between the elements of balance
sheet and income statement. The information pertaining to the financial statements is of
great importance through which interpretation and analysis is made. It is through the
process of financial analysis that the key performance indicators, such as, liquidity
solvency, profitability as well as the efficiency of operations of a business entity may
be ascertained, while short term and long term prospects of a business may be
evaluated. Thus, identifying the weakness, the intent is to arrive at recommendations as
well as forecasts for the future of a business entity.
Financial analysis focuses on the financial statements, as they are a disclosure of a

financial performance of a business entity. “A Financial Statement is an organized
collection of data according to logical and consistent accounting procedures. Its
purpose is to convey an understanding of some financial aspects of a business firm. It
may show assets position at a moment of time as in the case of balance sheet, or may
reveal a series of activities over a given period of times, as in the case of an income
statement.”
Since there is recurring need to evaluate the past performance, present financial
position, the position of liquidity and to assist in forecasting the future prospects of the
organization, various financial statements are to be examined in order that the forecast
on the earnings may be made and the progress of the company be ascertained.
The financial statements are: Income statement, balance sheet, statement of earnings,
statement of changes in financial position and the cash flow statement. The income
statement, having been termed as profit and loss account is the most useful financial
statement to enlighten what has happened to the business between the specified time
intervals while showing, revenues, expenses gains and losses. Balance sheet is a
statement which shows the financial position of a business at certain point of time. The
distinction between income statement and the balance sheet is that the former is for a
period and the latter indicates the financial position on a particular date. However, on
the basis of financial statements, the objective of financial analysis is to draw
information to facilitate decision making, to evaluate the strength and the weakness of a
35
business, to determine the earning capacity, to provide insights on liquidity, solvency
and profitability and to decide the future prospects of a business entity.
There are various types of financial analysis. They are briefly mentioned herein:
4.1.1 External analysis: The external analysis is done on the basis of published
financial statements by those who do not have access to the accounting information,
such as, stock holders, banks, creditors, and the general public.
4.1.2 Internal Analysis: This type of analysis is done by finance and accounting
department. The objective of such analysis is to provide the information to the top
management, while assisting in the decision making process.
4.1.3 Short term Analysis: It is concerned with the working capital analysis. It
involves the analysis of both current assets and current liabilities, so that the cash
position (liquidity) may be determined.
4.1.4 Horizontal Analysis: The comparative financial statements are an example of

horizontal analysis, as it involves analysis of financial statements for a number of years.
Horizontal analysis is also regarded as Dynamic Analysis.
4.1.5 Vertical Analysis: it is performed when financial ratios are to be calculated for
one year only. It is also called as static analysis.
4.2 TECHNIQUES:
An assortment of techniques is employed in analysing financial statements. They are:

Comparative Financial Statements, statement of changes in working capital, common
size balance sheets and income statements, trend analysis and ratio analysis.
4.2.1 Comparative Financial Statements: It is an important method of analysis which

is used to make comparison between two financial statements. Being a technique of
horizontal analysis and applicable to both financial statements, income statement and
balance sheet, it provides meaningful information when compared to the similar data of
prior periods. The comparative statement of income statements enables to review the
operational performance and to draw conclusions, whereas the balance sheets,
presenting a change in the financial position during the period, show the effects of
36
operations on the assets and liabilities. Thus, the absolute change from one period to
another may be determined.
4.2.2 Statement of Changes in Working Capital: The objective of this analysis is to

extract the information relating to working capital. The amount of net working capital
is determined by deducting the total of current liabilities from the total of current assets.
The statement of changes in working capital provides the information in relation to
working capital between two financial periods.
4.2.3 Common Size Statements: The figures of financial statements are converted to
percentages. It is performed by taking the total balance sheet as 100. The balance sheet
items are expressed as the ratio of each asset to total assets and the ratio of each
liability to total liabilities. Thus, it shows the relation of each component to the whole -
Hence, the name common size.
4.2.4 Trend Analysis: It is an important tool of horizontal analysis. Under this analysis,
ratios of different items of the financial statements for various periods are calculated
and the comparison is made accordingly. The analysis over the prior years indicates the
trend or direction. Trend analysis is a useful tool to know whether the financial health
of a business entity is improving in the course of time or it is deteriorating.
4.2.5 Ratio Analysis: The most popular way to analyse the financial statements is
computing ratios. It is an important and widely used tool of analysis of financial
statements. While developing a meaningful relationship between the individual items or
group of items of balance sheets and income statements, it highlights the key
performance indicators, such as, liquidity, solvency and profitability of a business
entity. The tool of ratio analysis performs in a way that it makes the process of
comprehension of financial statements simpler, at the same time, it reveals a lot about
the changes in the financial condition of a business entity.
It must be noted that Financial analysis is a continuous process being applicable to

every business to evaluate its past performance and current financial position. It is
useful in various situations to provide managers the information that is needed for
critical decisions. The process of financial analysis provides the information about the
ability of a business entity to earn income while sustaining both short term and long
term growth.
37
4.3 LITERATURE REVIEW:
38
 Huda Salhe Meften & Manish Roy Tirkey (2014) have studied the financial
analysis ofHindustan petroleum corporation ltd. The study is based on
secondary data. The companyhas got excellent gross profit ratio and trend is
rising in with is appreciable indicatingefficiency in production cost. The net
profit for the year 2010-11 is excellent & it is 8times past year indicating
reduction in operating reduction in operating expenses andlarge proportion of
net sales available to the shareholders of company.
 Surekha B. & Krishnalah K.Rama (2015) this study reveals the prosperity of
Tatamotors company. It can be concluded that inner strength of company is
remarkable.Company can further improve its profitability by optimum capital
gearing, reduction inadministration and financial expenses for the growth of
company.
 Agarwal, Nidhi (2015) the study focus on the comparative financial
performance ofMaruti Suzuki and Tata motors ltd. The financial data and
information required for thestudy are drawn from the various annual reports of
companies. The liquidity and leverageanalysis of both the firms are done. To
analyze the leverage position four ratios areconsidered namely, capital gearing,
debt-equity, total debt and proprietary ratio. Theresult shows that Tata motors
ltd has to increase the portion of proprietor’s fund inbusiness to improve long
term solvency position.
 Kumar Neeraj & Kaur Kuldip (2016) made an attempt to test the size and
profitabilityrelationship in the Indian automobile industry. To analyze the
relationship linearregression model as well as cross-sectional has been
employed for the year 1998to 2014.For profitability analysis two different
measures have been used ,
a. ratio of net profit tototal sales turnover
b. ratio of net income to net assets plus working capital and for formsize
two indicators used namely, total sales turn over and net assets. The time
series analysis showed the positive relationship between firm size and
profitability but crosssectional show no relationship between firm size
and profitability.
CHAPTER 5
RESEARCH METHODOLOGY
5.1 RESEARCH:
39
Financial Statement Analysis generally attempts to reveal the meaning and significance
of the items composed in Profit and Loss Account and Balance Sheet. According to
Kennedy and Macmillan “Financial Performance is scientific evaluation of profitability
and financial strength of any business concern”. Financial performance is the snapshot
of a concern's position and ability to survive the ever-changing environment. It is the
blue print of the financial affairs of the concern and reveals how a business is prospered
under the leadership of its management human resources. In fact, financial performance
is the medium of evaluation of management performance.
The overall objective of a business is earning satisfactory returns on the funds invested
in it. Consistent with maintaining a sound financial position, an evaluation of such
performance is doing in order to measure the efficiency of operations or the
profitability of the organization and to assess the financial strength as compared with a
similarly situated concern. Financial performance of financial statements for balance
sheet and profit and loss account aimed at diagnosing the liquidity, profitability,
productivity, activity and financial condition of a business concern. The analysis of
financial statement is requiring. The process of converting the raw data contained in the
financial statements into meaningful information for decision making is known as
financial statement analysis. Through these kinds of analysis, one can derive the facts
regarding the financial performance of the business unit.
Thus, financial performance is processes of creation an intellectual activity. The

analysis of both these statements gives a wide- ranging understanding of business
operations and their impact on the financial health of the concern. Financial
performance is also concern with the business operations which contribute to increase
the profits and also to enhance the total investments. Financial performance is also
concern with the prosperity of shareholders
5.2 RESEARCH METHOD:
Research methodology is a way to find out the result of the given problem in a specific
matter or problem i.e. referred as research problem. In methodology, researcher uses
40
different criteria for solving the problem. This report is based on exploratory research
method. Basically, all data collected from secondary sources to interpret.
5.3 DATA COLLECTION:
For completion of this study only secondary data has been used. The main sources are
annual reports. Besides for framing conceptual framework, various books and
published material in standard books and newspapers, Journals and websites has been
made use of.
5.3.1 SOURCES SECONDARY OF DATA:
1) www.mahindrafirstchoice.com
2) www.toffler.in
3) www.csimarket.in
4) www.mca.gov.in
5) www.moneycontrol.com
CHAPTER 6
DATA ANALYSIS AND INTERPRETATION
STANDALONE BALANCE SHEET Figures in INR Lacs
41
(IND-AS)
Particulars 31 March 2018 31 March 2017

EQUITY AND LIABILITIES
Equity Share Capital 26,400.00 26,400.00
Other Equity -31,635.80 -27,612.08
Non-Current Liabilities
Financial Liabilities
Borrowings - - -
Trade Payables 342.31 121.56
Other Financial Liabilities 1,491.69 1,052.04
Provisions 158.55 125.16
Deferred Tax Liabilities - -
Other Liabilities - -
Current Liabilities
Financial Liabilities
Borrowings 3,010.45 -
Trade Payables 1,891.45 1,870.91
Other Financial Liabilities 169.34 220.19
Provisions 59.47 91.56
Current Tax Liabilities - -
Other Liabilities 551.68 322.05
Liabilities Associated With - -
Assets In Disposal Group
Regulatory Deferral A/c Credit - -

Balances
Total Equity and Liabilities 2,439.14 2,591.39
ASSETS
Non-Current Assets
Property, Plant and Equipment 392.97 543.75
Capital Work in Progress 5.93 -
Investment Property - -
Goodwill - -
Intangible Assets 83.11 157.82
Intangible Assets Under 11.00 -
Development
Investments - -
Trade Receivables - -
Loans 187.19 172.51
Other Financial Assets 13.95 12.20
Deferred Tax Assets - -
Other Assets 201.39 234.34
Current Assets
Inventories 639.01 568.10
Financial Assets
42
Investments - -
Trade Receivables 780.03 381.10
Cash and Cash Equivalents 6.18 182.12
Other Bank Balances 3.25 -
Loans 5.60 34.58
Current Tax Assets - -
Noncurrent Assets Held For - 24.00
Sale
Regulatory Deferral A/c Debit - -
Balances
Total Assets 2,439.14 2,591.39
6.1 WORKING CAPITAL MANAGEMENT OF MAHINDRA FIRST CHOICE:
6.1.1 CONCEPT OF WORKING CAPITAL:
 Working capital is concerned with the problems that arise in attempting to

manage the current assets, the current liabilities and the interrelationship that
exists between them.
 Working capital is that type of capital which is used to maintain the smooth
running of business means day to day expenses or maintenance.
It is classified in two major types:
1. Gross working capital-
Gross working capital are total of current assets.
2. Net working capital –
Net working capital are the amount which is received from given formula,
=Total Current assets – Total Current liabilities
6.1.2 MAJOR COMPONENTS:
43
1. Current assets – These are those assets of company which can be easily convertible
into cash or within a year. It includes raw material debtors, prepaid expenses, trade
receivable, marketable securities, short term investment, cash in hand, and cash at bank.
2. Current liabilities – Every company has some liabilities which have to be paid in
short span of time or within a year. Like creditors, trade payables, bills payable, short
term loans & advances, bank overdraft, outstanding, these are those liabilities that are
intended, at their inception, to be paid in the ordinary course of business, within a year,
out of current assets or earnings of the concern.
6.1.3 INTERPRETATION OF WORKING CAPITAL FOR THE ABOVE

STATEMENT:
SCHEDULE OF WORKING CAPITAL CHANGES
PARTICULARS 2017 2018 INCREAS DECREAS

E E
A.Current Assets
a)Inventories 568.10 639.01 70.91 -
b)Investments - - - -
c)Trade Recievable 381.10 780.03 398.93 -
d)Cash and Cash Equivalents 182.12 6.18 175.94
e)Other Bank Balances - 3.25 3.25 -
f)Loans 34.58 5.60 28.98
44
g)Other Assets 208.66 39.06 169.6
h)Current Tax Assets - - - -
i)Other Assets 72.32 70.49 1.83
j)Non current Assets held for Sale 24.00 - 24.00
h)Regulatory Deferral Account Debit - - - -

Balances
TOTAL 1470.8 1543.6

8 2
PARTICULARS 2017 2018 INCREAS DECREAS

E E
B.Current Liabilities
a)Borrowings - 3,010.45 - 3,010.45
b)Trade Payables 1,870.91 1891.45 - 20.54
c)Other Financial Liabilities 220.19 169.34 50.85
d)Provisions 91.56 59.47 32.09
e)Current Tax Liabilities - - -

-
45
f)Other Liabilities 322.05 551.68
229.63
g)Liabilities Associated With - - -
Assets In Disposal Group -
h)Regulatory Deferral Account - - - -

Credit Balances
TOTAL 2504.71 5682.39
Net Working Capital (A-B) (1033.83 (4138.77 556.03 (3,660.97)

) )
TOTAL Decrease In Working (3104.94)
Capital.
(3,660.97) (3,660.97)
46
WORKING CAPITAL CHART ANALYSIS
8000
6000
4000
Current Assets
2000 Current Liabilities
Working Capital
0
2017 2018
-2000
-4000
-6000
Interpretation:
According to the annual report (balance sheet) 2017-2018, the working capital is
decreased by ₹ -3104.94 crore. In the financial year 2016-17, it was ₹ -1,033.83 crore,
still in financial year 2017-18 it has Negative Working Capital of ₹ -4138.77. This
means that the liabilities that need to be paid within one year exceeds the current assets
that are monetizable over the same period of time.
6.2 RATIO ANALYSIS
6.2.1 LEVERAGE RATIOS

The financial leverage ratio is a measure of how much assets a company holds relative
to its equity. A high financial leverage ratio means that the company is using debt and
other liabilities to finance its assets -- and, every thing else being equal, is more riskier
than a company with lower leverage.
In essence, the financial leverage ratio is a variation of the debt to equity ratio and
would move in tandem with debt to equity. If a company can employ its assets at a
higher return than its cost of debt, it would improve its returns on equity capital. If not
the company's debt outweighs the return from its assets, then the debt cost may
outweigh the return on assets. Over the long-term, this would lead to bankruptcy.
47
1.Total Debt to Equity Ratio.
RATIOS MAR’ 18 MAR’ 17 MAR’ 16 MAR’ 15

Total 0.06 0.04 0.01 N.A.
Debt/Equity
Ratio
Total Debt To Equity Ratio

0.07
0.06
0.06
0.05
0.04 Series 1
0.04
0.03
0.02
0.01
0.01
0
0
MAR' 18 MAR' 17 MAR' 16 MAR' 15
Interpretation:
48
According to CRISIL India, average of total debt to equity ratio is 0.02. In the figure, it
is showing that in 2016 debt to equity ratio increased to 0.01 in comparison to 2015.
Again it started increasing year on year 2017 and 2018. In 2018 debt to equity ratio is
0.06 which shows that 0.06% is debt part of total assets,which is nearly close to
average ratio.
2. Total Assets/Equity Ratio
RATIOS MAR ‘18 MAR ‘17 MAR ‘16 MAR ‘15

Total 0.09 0.09 0.16 0.24
Assets/Equity
Ratio
Total Assets/Equity Ratio

0.3
0.25
0.2
Total Assets/Equity Ratio
0.15
0.1
0.05
0
MAR '18 MAR '17 MAR '16 MAR '15
Interpretation:
Total asset/equity ratio indicates the relationship of the total assets of the firm to the
part owned by shareholders(aka owners equity) This ratio is an indicator of the
company’s leverage(debt) used to finance the firm
Here the total asset/equity ratio has been consistently decreasing from 2015 to 2018.
This indicates that Mahindra first choice services company is a strong firm which needs
no debt or an overly conservative company foolishly foregoing business opportunities.
6.2.2 LIQUIDITY RATIOS:
49
Liquidity ratios are a class of financial metrics used to determine a debtor's ability to
pay off current debt obligations without raising external capital. Liquidity ratios
measure a company's ability to pay debt obligations and its margin of safety through
the calculation of metrics including the current ratio, quick ratio
1.Current Ratio.
RATIOS MAR ‘18 MAR ‘17 MAR ‘16 MAR ‘15

Current Ratio 3.68 1.70 1.71 0.93
Current Ratio
4
3.5
2.5
Current Ratio
2
1.5
0.5
0
MAR '18 MAR '17 MAR '16 MAR '15
Interpretation:
The current ratio is a liquidity ratio that measures a company's ability to pay short-term
and long-term obligations.
The current ratio is called “current” because, unlike some other liquidity ratios, it
incorporates all current assets and liabilities.
The current ratio is also known as the working capital ratio.
Here,the current ratio is increasing year by year from 2015 to 2018 which means, that
the company is capable of paying its obligations but in case of high current ratio(3.68) ,
it also means that the company may not be using its short term financing facilities
efficiently. This may indicate problems in working capital management.
6.2.3 OTHER IMPORTANT RATIOS
50
RATIOS MAR ‘18 MAR ‘17 MAR ‘16
Net Margin (0.44) (0.60) (1.19)
Return on
(2.59) (1.74) (2.31)
Fixed Assets
Return on
(0.152) (0.172) (0.30)
Equity
6.3 STANDALONE BALANCE SHEET Figures in Lacs
(IND-AS)
51
Particulars 31 March 2018 31 March 2017 31 March 2016
EQUITY AND LIABILITIES
Equity Share 26,400.00 26,400.00 23,430.00
Capital
Other Equity -31,635.80 -27,612.08 -23,058.09
Non - current liabilites
Financial
Liabilities
Borrowings - - - -
Trade Payables 342.31 121.56 188.45
Other Financial 1,491.69 1,052.04 323.20
Liabilities
Provisions 158.55 125.16 91.66
Deferred Tax - - -
Liabilities
Other Liabilities - - -
Current liabilities
Borrowings 3,010.45 - -
Trade Payables 1,891.45 1,870.91 2,245.57
Other Financial 169.34 220.19 316.81
Liabilities
Provisions 59.47 91.56 55.42
Current Tax - - -
Liabilities
Other Liabilities 551.68 322.05 307.77
Liabilities - - -
Associated With
Assets In
Disposal Group
Regulatory - - -
Deferral A/c
Credit Balances
Total Equity 2,439.14 2,591.39 3,900.79
and Liabilities
ASSETS
Non-Current Assets
Property, Plant 392.97 543.75 1227.55
and Equipment
Capital Work in 5.93 - 0.30
Progress
52
Investment - - -
Property
Goodwill - - -
Intangible 83.11 157.82 193.21
Assets
Intangible 11.00 - 133.68
Assets Under
Development
Investments - - -
Trade - - -
Receivables
Loans 187.19 172.51 373.53
Other Financial 13.95 12.20 0.47
Assets
Deferred Tax - - -
Assets
Other Assets 201.39 234.34 269.15
Current Assets
Inventories 639.01 568.10 308.27
Investments - - -
Trade 780.03 381.10 262.82
Receivables
Cash and Cash 6.18 182.12 685.28
Equivalents
Other Bank 3.25 - 3.25
Balances
Loans 5.60 34.58 98.02
Other Assets 39.06 208.66 115.63
Current Tax - - -
Assets
Other Assets 70.49 72.32 109.20
Noncurrent - 24.00 120.43
Assets Held For
Sale
Regulatory - - -
Deferral A/c
Debit Balances
Total Assets 2,439.14 2,591.39 3,900.79
53
6.3.1 INTERPRETATION OF EQUITY AND LIABILITIES:
(a). Total Equity – In comparison to 2016, Equity Share Capital is increased by

12.68% in 2018
2016-23430
2018-26400
26400−23430
% Change = ×100, = 12.68%
23430
(b). Long/Short Term Borrowing – Aftermarket industry in India is booming up as

there is a lot of untapped market share. hence investors are eyeing on it. Mahindra First
Choice. is able to borrow short term borrowing amount i.e. 3,010.45 lacs. are going
(c). Current Liabilities – The company took borrowings in 2018 as compared to 2016
which was NIL.
Other Liabilities increased to 551.68 as compared to 2016, which was 307.77.

54
6.3.2 INTERPRETATION OF ASSETS:
(1). NON CURRENT ASSETS
(a). Property, Plant and Equipment – while comparing the amount of property, plant
and equipment in last three year, company is selling off its plant and equipment. In
financial year 2017–18, it was decreased by 11.97% from F.Y. 2015-16.
2016 – 55.85% of total of non-current assets.
(b). Capital Work In Progress – in the year 16, it was 0.30 lacs i.e. 0.01% of total
noncurrent assets. In financial year 2017–18 it is 5.93 lacs of its total amount of non-
current assets i.e. 0.66% of total of non-current assets.
2017 – NIL of total of non-current assets.
55
(c). Intangible Assets – Patents, trademarks and software costs are included in the
balance sheet as intangible assets, Goodwill is excluded according to annual report of
MAHINDRA FIRST CHOICE SERVICES
(d). Inventories – Inventories in one of the important component of current assets.

Requisition and management of inventories is very crucial for management team.
Finished and semi-finished inventory increased as compared to the previous year. This
increase is mainly due to commencement of operations of its new service for 2W.
2016 – 18.10% of total current assets.
(g). Cash and Cash Equivalent – Cash and cash equivalent position of MAHINDRA
FIRST CHOICE SERVICES is not good as last year 2017.
2016 – 60.54% of its total current assets.
(h). Balances with Bank – It is showing that the company is not maintaining sound
amount of balances with bank. Since, 2016 balance with bank is consistently low.
2016 –0.28 % of total current assets.
2017 – NIL of total current assets.
2018– 0.21% of total current assets.
56
6.4 STANDALONE PROFIT AND LOSS Figures in INR Lacs
(IND-AS)
Particulars 31 March, 2018 31 March, 2017 31 March, 2016

CONTINUING OPERATIONS
Revenue from operations 9,034.74 7,566.18 6,008.53
Other Income 219.88 348.49 73.98
Total Revenue 9,254.63 7,914.67 6,082.51
Cost of Materials Consumed - - -
Purchases of Stock in Trade 5,780.93 4,941.09 3,055.19
Changes in Inventory -70.92 -259.83 9.90
Employee Benefit Expenses 3,257.24 2,554.12 3,474.47
Finance Costs 127.13 - -
Depreciation and 255.28 307.25 506.38
Amortization
Other Expenses* 3,943.75 4,917.06 6,198.63
Total Expenses 13,293.41 12,459.69 13,244.57
Total Revenue Less Total -4,038.78 -4,545.02 -7,162.06
Expenses
Prior Period and Exceptional - - -
It.
Profit Before Tax -4,038.78 -4,545.02 -7,162.06
Current Tax Expense - - -
Deferred Tax Expense - - -
Net Movement in Regulatory - - -
57
Deferral Account Balances
Profit From Continuing -4,038.78 -4,545.02 -7,162.06
Operations
Profit From Discontinuing - - -
Operations (After Tax)
Net Profit/Loss -4,038.78 -4,545.02 -7,162.06
Other Comprehensive 15.06 -8.98 -1.40
Income
Total -4,023.72 -4,554.00 -7,163.46
ComprehensiveIncome/Loss
6.4.1 INTERPRETATIONS
1. Sales And Total Revenue
MAR ‘16 MAR ‘17 MAR ‘18

Sales 6,008.53 7,566.18 9,034.74
Total Revenue 6,082.51 7,914.67 9,254.63
SALES AND TOTAL REVENUE
10,000.00
9,000.00
8,000.00
7,000.00
6,000.00
5,000.00 Sales
Revenue
4,000.00
3,000.00
2,000.00
1,000.00
0.00
MAR '16 MAR '17 MAR '18
Interpretation:
Since 2016 to 2018 year, total revenue is consisting a large portion of sales. So, sales is
playing very important role in generating income for the company. Among all financial
year, in 2018 sales and total revenue both are higher than 2016, 2017 & 2018.
58
2. Total Expenses and Total Revenue
MAR ‘16 MAR ‘17 MAR ‘18

Total Expenses 13,244.57 12,459.69 13,293.41
Total Revenue 6,082.51 7,914.67 9,254.63
TOTAL EXPENSES AND TOTAL REVENUE
14,000.00
12,000.00
10,000.00
8,000.00
Total Expenses
6,000.00 Total Revenue
4,000.00
2,000.00
0.00
MAR '16 MAR '17 MAR '18
Interpretation:
Among all last three year performance, Mahindra First Choice Services Revenue is
increasing steadily.
The total expenses comparatively is steady and in control. Hence the company has
more potential to grow and to acquire the market.
59
CHAPTER 7
FINDINGS
7.1 FINDINGS FROM RATIOS:
 From financial year 2016-17 to 2017-18, Company has negative working

capital. In F.Y. 2017-18 position of working capital is not better than previous
financial year but still its working capital of ₹ -2958.90.
 Comparative to standard ratios of Aftermarket Industry in India is quick ratio –
0.07,current ratio– total debt to equity- 0.09%, operating profit margin- 5.89%,
gross profit margin-20.02%, net profit margin- 4.18%, where Mahindra First
Choice is having current ratio- 3.68, debt to equity- 0.06, operating profit
margin- Negative, gross profit margin-Negative, net profit- Negative.
 Profit before interest and taxes is negative consistently from the past 3 years.
This could mean that the company is facing some operational difficulties or is
poorly managed.
 Net profit margin is also negative.
7.2 FINDINGS FROM BALANCE SHEET ANALYSIS:
 The company took borrowings in 2018 compared to 2016 which was Nil.
 total equity & liabilities i.e. ₹ 2439.14 crore (2018). In 2017 it was ₹
2591.39crore.
 Expenditure on plant, property and equipment has decreased. It is decreased by
11.97 % from F.Y 2015-16
 Intangible assets has increased.
 Cash and cash equivalent got reduced to a great extent. In 2017- 34.91%, 0.40%
in 2018.
7.3 FINDINGS FROM PROFIT AND LOSS ANALYSIS OF MAHINDRA FIRST

CHOICE.
60
 Revenue from operation has been increased in 2018 of ₹ 9,034.74, which is
higher than F.Y 2015-16 and 2016-17.
 Total revenue has also got increase by 53,675.42. which is higher than F.Y
2014, 2015, 2016,
 Cost of goods sold has been increased which impacted the earnings before tax
negatively.
 Total expenses got increased. Current year difference is 6060.31 cr. Last year it
was ₹ 3,192.38 cr.
 Profit before tax and profit after tax is constant.
61
CHAPTER 8
LIMITATIONS
 It is secondary data based study, so the limitations of the secondary data reveals
with this study.
 Profitability is affected by many factors, internal as well as external, but the
researcher is taking into consideration only some factors which are relevant to
study.
 Two month is not quite sufficient to carry out all the aspects of financial
analysis.
 The comparison is difficult because of difference in situation of two companies
or of one company over years.
 Historical financial statements are not indicator of future.
62
CHAPTER 9
CONCLUSION
Mahindra First Choice Services (MFCS) is a company of Mahindra Group and is
India’s leading chain of multi-brand car workshops with over 335+ workshops present
in 267+ towns & 24 states. It has serviced over 10,50,000 cars. The company is the
pioneer in aftermarket sector.
Profitability of Mahindrra First Choice (stand-alone) –
Mahindra First Choice is still capitalising the market with its stabe and steadyfest
operations.Hence its still sustaining the losses but, moving forward and engaging in its
new operations.
It is not maintaining its working capital and financial (indicators) ratios. Even then, if it
takes some steps by generating internal sources the profitability position will be
increased more than the present level then it can improve its liquidity further.
63
CHAPTER 10
SUGGESTIONS
After going through with all the collected information analysis of ratios, balance sheet
analysis, profit & loss analysis and other performance analysis, I would go for the
following recommendations with special reference to new product launch.
 Company should focus on working capital management.

 The financial ratios need to be change an extent.
 Company should reduce cost of goods sold. Include : -
 Cost of raw materials.
 Cost of items purchased for resale.
 Cost of parts used to construct a product.
CHAPTER 11
64
BIBLIOGRAPHY
1.www.toffler.in
2.www.csimarket.com
3.www.wikipedia.com
4.www.mahindra.com
5.www.mahindrafirstchoiceservices.com
6.www.grandviewresearch.com
7.www.goldsteinresearch.com
8.www.fintapp.com
9.www.investopedia.com
10.www.readyratios.com
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CHAPTER 1

Comparative Analysis, Financial Analysis, Financial Performance, Financial Ratios

1.1.1 PROJECT TITLE

1.1.2 CHOICE OF PROJECT

Mahindra First Choice –Fursungi,Pune.

Analysis of Aftermarket sector which is contributing a pace in our Indian economy as

 To find out the financial performance of a company

2.2 SCOPE OF THE PROJECT:

This project will be learning device for finance students.

3.2 ABOUT COMPANY:

By 1994, the Group had become so diverse that it undertook a fundamental

3.4 MILESTONES OF MAHINDRA GROUP

 The Instrumentation & Electronics Division came into existence as a result of

 The Company started negotiation with Balania K. Zacharopoulos Ltd., Athens

 57,22,764 Bonus equity share issued in prop. 1:1.

 76,30,352 Bonus equity shares issued in prop. 2:3 in October 1984.

 A letter of intent was obtained for the manufacture of 50,000 lines of

 The Automotive division faced adverse market conditions resulting in a drastic

 The Automotive division undertook to introduce a wide range of products such

 A New LCV model-cabking DI 3150 - with a payload of 2.5 tonnes, a 5-speed

 A joint venture company is being promoted by Mahindra and Mahindra

 Unleashes MaXX Pick Up utility vehicle

 Mahindra & Mahindra delisting of shares from DSE

 M&M unleashes Scorpio Pik-Up in South Africa

 Mahindra & Mahindra acquires a leading German Forging Company

 Mahindra & Mahindra - Mahindra launched Â‘Genio' - India's Next Generation

 Mahindra and Mahindra had acquired Ssangyong Motor Company, a South

 Mahindra introduces 'Yoga Seats' in Quanto Compact SUV

 Mahindra & Mahindra, a leading player in electric vehicles in the country

3.6 CORPORATE OBJECTIVES

 As a large global corporation, we see an incredible opportunity to drive positive

1. Good Corporate Citizenship

5. Dignity of the Individual

3.8.1 CURRENT DIRECTORS

Director's name Age Date of Email address Designation

CHANDRASEKAR 64 24 march chandrasekar.k@ma Director /

RAMESH GANESH 60 15 september neerajv20@gmail.co Director /

ANUPAM THAREJA 46 15 september gopal.luz@gmail.co Director /

RUZBEH BAMAN 55 15 september irani.ruzbeh@mahin Director /

PRINCE 57 15 september augustin.prince@ma Director /

VIVEK NAYER 53 11 march NAYER.VIVEK@ma Director /

VENKATA SATYA 54 04 august, Y.VIJAYKUMAR@m Whole-Time

DEBABRATA 68 22 october debu.bandyopadhya Director /

HEMANT SIKKA 49 19 february Sikka.hemant@mahi Director

3.8.2 CURREMT KMP OTHER THAN DIRECTORS

Director's PAN Date Of Email Designation

3.9 MAJOR BUSINESS VENTURES OF MAHINDRA GROUP:

1.Multi Brand Car Servicing

2. Pre Owned Cars

4. Spare parts and accesorries

Proper and adequate maintenance of vehicles is of paramount importance and cannot be

Gala No. Gala

 Pricing of products and services high compared to local market.

 Facilities for expansion.

Financial analysis focuses on the financial statements, as they are a disclosure of a

4.1.4 Horizontal Analysis: The comparative financial statements are an example of

An assortment of techniques is employed in analysing financial statements. They are:

4.2.1 Comparative Financial Statements: It is an important method of analysis which