Sreekanth Project On Analysis of Mahindra Company

“A STUDY ON PROFITABILITY ANALYSIS OF
MAHINDRA AND MAHINDRA LTD”
Project Report submitted to
UNIVERSITY OF CALICUT
In partial fulfillment of the requirement for the award of the degree of
BACHELOR OF COMMERCE
Submitted by
IMMANUEL K.T
(CCASBCM092)
Under the supervision of
Ms. SHINY A.O
DEPARTMENT OF COMMERCE
CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA
MARCH 2021
1
CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA
CALICUT UNIVERSITY
DEPARTMENT OF COMMERCE
CERTIFICATE
This is to certify that the project report entitled “A STUDY ON

PROFITABILITY ANALYSIS OF MAHINDRA AND MAHINDRA
LTD” is a bonafide record of project done byIMMANUEL K.T, Reg.
No.CCASBCM092, under my guidance and supervision in partial fulfillment
of the requirement for the award of the degree of BACHELOR OF
COMMERCE and it has not previously formed the basis for any Degree,
Diploma and Associateship or Fellowship.
Prof. K.J.JOSEPH Ms. SHINY A.O

Co-ordinator Project Guide
2
DECLARATION
I, IMMANUEL K.T, hereby declare that the project work entitled “A STUDY
ON PROFITABILITY ANALYSIS OF MAHINDRA AND MAHINDRA
LTD” is a record of independent and bonafide project work carried out by me
under the supervision and guidance of Ms. SHINY A.O, Assistant Professor,
Department of Commerce, Christ College, Irinjalakuda.
The information and data given in the report is authentic to the best of my
knowledge. The report has not been previously submitted for the award of any
Degree, Diploma, Associateship or other similar title of any other university or
institute.
Place: Irinjalakuda IMMANUEL K.T
Date: CCASBCM092
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ACKNOWLEDGEMENT
I would like to take the opportunity to express my sincere gratitude to all

people who have helped me with sound advice and able guidance.
Above all, I express my eternal gratitude to the Lord Almighty under whose
divine guidance; I have been able to complete this work successfully.
I would like to express my sincere obligation to Rev.Dr. Jolly Andrews,

Principal-in-Charge, Christ college Irinjalakuda for providing various facilities.
I am thankful to Prof. K.J.Joseph, Co-ordinator of B.Com (Finance), for

providing proper help and encouragement in the preparation of this report.
I am thankful to Mr. Lipin raj k, Class teacher for her cordial support, valuable
information and guidance, which helped me in completing this task through
various stages.
I express my sincere gratitude to Ms. Shiny A.O, Assistant Professor, whose

guidance and support throughout the training period helped me to complete this
work successfully.
I would like to express my gratitude to all the faculties of the Department for
their interest and cooperation in this regard.
I extend my hearty gratitude to the librarian and other library staffs of my

college for their wholehearted cooperation.
I express my sincere thanks to my friends and family for their support in

completing this report successfully.
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TABLES OF CONTENTS
CHAPTER NO. CONTENTS PAGE NO:
LIST OF TABLES
LIST OF FIGURES
CHAPTER 1 INTRODUCTION 1–3
CHAPTER 2 REVIEW OF LITERATURE 4 – 14
INDUSTRY AND COMPANY

CHAPTER 3 15 – 22
PROFILE
DATA ANALYSIS AND

CHAPTER 4 23 – 37
INTERPRETATION
FINDINGS, SUGGESTIONS
CHAPTER 5 38 – 40
& CONCLUSION
BIBLOGRAPHY
ANNEXURE
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LIST OF TABLES
TABLE
TITLE PAGE NO:
NO:
4.1 Net profit ratio 24
4.2 Gross profit ratio 25
4.3 Operating profit ratio 26
4.4 Operating ratio 27
4.5 Return on equity 28
4.6 Return on assets 29
4.7 Return on capital employed 30
4.8 Current ratio 31
4.9 Liquid ratio 32
Comparative balance sheet of financial year 2015 and

4.10 33
2016
4.11 34
2017
4.12 35
2018

4.13 36
2019

4.14 37
2020
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LIST OF CHARTS
FIGURE
TITLE PAGE NO:
NO:
4.1 Chart showing net profit ratio 24
4.2 Chart showing gross profit ratio 25
4.3 Chart showingoperating profit ratio 26
4.4 Chart showing operating ratio 27
4.5 Chart showing return on equity 28
4.6 Chart showing return on assets 29
4.7 Chart showing return on capital employed 30
4.8 Chart showing current ratio 31
4.9 Chart showing liquid ratio 32
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CHAPTER – 1
INTRODUCTION
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1.1 Introduction
Financial analysis is a process of identifying the strength and weakness of the

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

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

the last five years.
➢ To study the trend of profit of Mahindra and Mahindra Limited over the
past five years.
➢ Achieve the overall financial position of the company
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1.5 Research Design
➢ 1.5.1 Nature of study :-Analytical research is used for the purpose of

study.
➢ 1.5.2 Nature of data :- The present study is based on secondary data
➢ 1.5.3 Sources of data :- Source of data are collected from the annual
report published on the official website of the company, magazine,
books and journals.
➢ 1.5.4 Period of study :- The present study analyses the profitability of
Mahindra and Mahindra Limited are a period of five years from 2015-
2016 to 2019-2020
1.6 Tools for Analysis
• Ratio analysis
• Comparative balance sheet
1.7 Chapterization
➢ Chapter-1-Introduction
➢ Chapter-2-Review of literature
➢ Chapter-3-Industry and company profile
➢ Chapter-4-Data analysis and interpretation
➢ Chapter-5-Findings, suggestions & conclusion
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CHAPTER – 2
REVIEW OF LITERATURE
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2.1 Introduction
This chapter deals with review of literature. This chapter includes conceptual
literature and empirical literature. Conceptual literature includes different
concepts used in the study. Empirical literature includes studies done by
different authors
2.2 Conceptual literature
2.1.1 Meaning of Finance
Business concern needs finance to meet their requirements in the economic

world. Any kind of business activity depends on the finance. Hence, it is called
as life blood of business organization. Whether the business concerns are small
or big, they need finance to fulfil their business activities. In the modern world,
all the activities are concerned with the economic activities and very particular
to earning profit through any venture or activities. The entire business activities
are directly related with making profit. A business concern needs finance to
meet all the requirements. Hence finance may be called as capital, investment,
fund etc., but each item is having different meanings and unique characters.
Increasing the profit is the main aim of any kind of economic activity.
2.1.2 Financial Performance
"Financial performance is scientific evaluation of profitability and financial

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

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

figures shown on balance sheet, in a profit and loss account, in a budgetary
control system or in any, other part of the accounting organization. Ratio
simply refers to one number expressed in terms of another number. Ratio
analysis is a technique of analysis and interpretation of financial statement. It is
the process of establishing and interpreting the various ratios for helping in
making certain decision. However, ratio analysis is not an end to itself. It is
only a means of better understanding of financial strength, weakness of a firm.
Calculation of mere accounting ratios does not serve any purpose unless
several appropriate ratios are analysed and interpreted.
Objectives of Ratio Analysis
➢ To study the short term solvency of a firm.

➢ To study the long term solvency of a firm.
➢ To determine the profitability of a firm.
➢ To measure the performance of a firm.
➢ To facilitate the process of financial forecasting.
➢ To communicate the strength and weakness of a firm.
➢ To enable managerial decision making
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2.1.6 Profitability ratios
Net profit ratio

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

expenses as a percentage of revenue. This financial ratio is most commonly
used for industries which require a large percentage of revenues to maintain
operations, such as railroads. In railroading, an operating ratio of 80 or lower is
considered desirable. The operating ratio can be used to determine the
efficiency of a company's management by comparing operating expenses to net
sales. It is calculated by dividing the operating expenses by the net sales. The
smaller the ratio, the greater the organization's ability to generate profit. The
ratio does not factor in expansion or debt repayment. Alternatively, it may be
expressed as a ratio of sales to cost. In such case a higher ratio indicates a
better ability to generate revenue. The ideal ratio of manufacturing concern is
75% to 85%. The operating ratio is calculated by the following formula;
Operating Ratio = Operating cost / Net sales * 100
Operating cost = Cost of goods sold + Operating expenses
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Return on equity
Return on net worth is a ratio developed from the perspective of the investor
and not the company. By looking at this, the investor sees if entire net profit
was passed on to him, how much return would he be getting. It explains the
efficiency of the shareholder’s capital to generate profit
Importance
➢ This ratio interprets how efficiently a company uses shareholder’s
money to generate maximum profit.
➢ The higher the ratio, the more efficient the company is for using
shareholder’s equity
➢ Investors always prefer a high return on net worth/equity Ratio of a
company for maximum profit
Positive and negative return on the net worth ratio
Positive: It interprets company is well organized at generating shareholder’s

return. It indicates how wisely a company can invest the amount and increase
productivity and profit. It shows the company can generate more assets to
cover its liabilities. Therefore, undoubtedly it is a safe investment choice
Negative: In contrast, a decreasing return in net worth means the company is

making a poor decision and their equity management efficiency is not good at
all. So it is clear that a company with a negative return on net worth has more
debt and not a safe investment choice
Return on net worth/equity= net income/shareholder’s equity*100
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Return on assets
Return on assets is a financial ratio that shows the percentage of profit of a

Company earns in relation to its overall resources. It is commonly defined as
net income divided by total assets. Net income is derived from the income
statement of a company and is the profit after tax
Return on assets is calculated by following formula
Return on asset = Profit after tax/ Total Assets *100
Return on capital employed
Return on capital employed (ROCE) is a financial ratio that measures a

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

the relationship between quick assets and current liabilities. It is the measure of
the instant debt paying ability of the business enterprise. It is also called acid
test ratio. It is called so because the ratio is calculated to eliminate all possible
illiquid elements from current assets. It is also called near money ratio.
It is computed as follows:
Liquid ratio = Liquid assets/Current liabilities
Liquid asset = Current assets - stock and prepaid expenses
A quick ratio of 1:1 is considered as satisfactory or ideal. It means that the
liquid assets are just equal to quick or current liabilities.
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2.1.7 Comparative balance sheet
A comparative balance sheet shows the assets, liabilities and owner's equity of
a business enterprise at the beginning and at the end of the accounting period
with increases and decreases in the absolute data in terms of rupees and
percentages. A single balance sheet focuses on the financial status of the firm
as on a particular date, while a comparative balance sheet, focuses on the
changes that have taken place in one accounting period.
2.3 Empirical literature
1.Sharma Nishi (2011) studied the financial performance of passenger and

commercial vehicle segment of the automobile industry in the terms of four
financial parameters namely liquidity, profitability, leverage and managerial
efficiency analysis for the period of decade from 2001-02 to 2010-11. The
study concludes that profitability and managerial efficiency of Tata motors as
well as Mahindra & Mahindra ltd are satisfactory but their liquidity position is
not satisfactory. The liquidity position of commercial vehicle is much better
than passenger vehicle segment.
2. Afar S.M. Tariq & Khalid S.M(2012) the study explore that ratios are
calculated from financial statements which are prepared as desired policies
adopted on depreciation and stock valuation by the management. Ratio is
simple comparison of numerator and a denominator that cannot produce
complete and authentic picture of business are manipulated and also may not
highlight other factors which affect performance of firm by promoters.
3. Dawar Varun (2012) study to analyse the effect of various fundamental

corporate policy variables like dividend, debit, capital expenditure on stock
prices of automobile companies of India. The study trends that dividend
&investment policy are relevant and capital structure irrelevant to stock prices.
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4. HotwaniRakhi (2013) the author examines the profitability position and
growth of company in light of sales and profitability of Tata motors for past ten
years. Data is analysed through rations, standard deviations and coefficient of
variance. The study reveals that there not exist a strong relationship between
sales & profitability of company.
5. Dhole Madhavi (2013) Investing the impact of price movement of share on

selected company performance. It advice due investors consider various factors
before choosing the better portfolio. Sentimental factors do play a role in price
movement only in short term but in long run annual performance is sole factor
responsible for price movement.
6. Shende Vikram (2014) this research will be helpful for the new entrants
and existing car manufacturing companies in India to find out the customer
expectations and their market offerings. The objective of study is the
identification of factors influencing customer's performance for particular
segment of cars.
7. Buvaneswari .R &Kanimozhip (2014) to study the credit worthiness of

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

government de-licensing and liberal trade policies on the growth of Indian auto
mobile industry. The study recommends that investing four-wheeler is going to
be smart potion not only in India but all around the world. 8. Becker Dieter
(2015) the report shows about the current state and future prospects of the
worldwide automobile industry. This survey reports the manufacturer,
executive and customer views about four aspects, mobility culture,
technological fit, business model readiness and market share.
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9. Surekha B. &Krishnalah K. Rama (2015) this study reveals the prosperity
of Maruti Suzuki company. It can be concluded that inner strength of company
of company is remarkable. Company can further improve its profitability by
optimum capital gearing, reduction in administration and financial expenses for
the growth of company.
10. Anu B. (2015) made an attempt to examine the relationship between

capital structure indicators, market price per shares and also to test relationship
between debt-equity and market price per share of selected companies in
industry. The study concludes that all three companies support the hypothesis
that there is relation between debt-equity and MPS.
11. Maheswari, V. (2015) made an attempt to analyse the financial soundness

of the Hero Honda motors limited have identified three factors namely liquidity
position, solvency position and profitability position based on the study of
period 2002 to 2010 using ratio analysis.
12. Jodi, K. & Kalaivani P. (2015) studied the comparative performance of

Honda Motors and Toyota Motors that both companies have satisfactory short-
term liquidity position. As for as cash ratio concerned Honda Company has
upper hand upper hand is sound cash management practice during the study
period. In case of profitability it is rising from the both of companies but
remained much higher earning potential in Honda Motor Ltd.
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CHAPTER – 3
INDUSTRY AND COMPANY PROFILE
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3.1 INDUSTRIAL PROFILE
India became the fourth largest auto market in 2018 with sales increasing 8.3
per cent year-on-year to 3.99 million units. It was the seventh largest
manufacturer of commercial vehicles in 2018. The Two Wheelers segment
dominates the market in terms of volume owing to a growing middle class and
a young population. Moreover, the growing interest of the companies in
exploring the rural markets further aided the growth of the sector. India is also
a prominent auto exporter and has strong export growth expectations for the
near future. Automobile exports grew 14.50 per cent during FY19. It is
expected to grow at a CAGR of 3.05 per cent during 2016-2026. In addition,
several initiatives by the Government of India and the major automobile
players in the Indian market are expected to make India a leader in the two-
wheeler and four-wheeler market in the world by 2020.
Market Size Overall domestic automobiles sales increased at 6.71 per cent
CAGR between FY13-19 with 26.27 million vehicles getting sold in FY19.
Domestic automobile production increased at 6.96 per cent CAGR between
FY13-19 with 30.92 million vehicles manufactured in the country in FY19. In
FY19, year-on-year growth in domestic sales among all the categories was
recorded in commercial vehicles at 17.55 per cent followed by 10.27 per cent
year-on-year growth in the sales of three-wheelers. Premium motorbike sales in
India crossed one million units in FY18. During January-September 2018,
BMW registered a growth of 11 per cent year-on-year in its sales in India at
7,915 units. Mercedes Benz ranked first in sales satisfaction
in the luxury vehicles segment according to J D Power 2018 India sales
satisfaction index (luxury).
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3.2 COMPANY PROFILE
1945 - The Company was Incorporated and converted into Public Limited in
1955 at Mumbai. The Company Manufacture Jeep type vehicles, petrol
industrial engines, industrial process control instruments and flow meters.
Trading in steel and manufacture of professional grade electronic components.
Jeeps are manufactured under a license and an agreement with Willys Motors
Inc., Toledo, Ohio, U.S.A., for whom the Company also acts as exclusive
distributors for the whole of India for their entire range of vehicles including
utility vans, cargo/personnel carriers and pick-up trucks.
1958 - The Company entered into an agreement with Birfield Ltd., to form
Mahindra Sintered Products Private Limited for the manufacture of a wide
range of self-lubricating bearings
1968 - The Instrumentation & Electronics Division came into existence as a

result of merger of the wholly-owned subsidiary of Mahindra Engineering Co.
Ltd., with the Company with effect from 1st April 1968. The activities of the
merged company were being carried on in this division. - The Company
acquired the whole paid-up capital of Mahindra Electro-Chemicals Products
Ltd. Company. - With effect from 1st April, the wholly owned subsidiary
Mahindra Engineering Co. Ltd., was merged with the Company. International
Tractor Company of India Ltd., was merged with the Company effective from
1stNovember1977.
1970 - The name was changed from Mahindra Van Wijk & Visser Ltd. to
Mahindra & Mahindra Ltd. This was merged with the Indian National Diesel
Engine Co., Ltd., during 1977-78.
1977 - 74, - 700-9.3% Pref. and 12,98,202 No. of Equity share allotted without
payment in cash to shareholders of International Tractor Co. Ltd., on its merger
26
in prop 1:1 Pref. and 2:3 Equity. 12,500-7.8% Pref. shares redeemed on
1.2.1979.
1978 - The Company started negotiation with Balania K. Zacharopoulos Ltd.,

Athens for jointly promoting a new company in Greece for the manufacture of
Jeep vehicles and trucks. Initially, it was proposed to assemble these vehicles
mainly from CKD packs to be shipped from India.
1979 - 57,22,764 Bonus equity share issued in prop. 1:1.
1983 - 76,30,352 Bonus equity shares issued in prop. 2:3 in October 1984.
1984 - Mahindra Spicer Ltd. (MSL), was amalgamated with Mahindra &
Mahindra Ltd. (MML) with effect from 3rd April. Pursuant to the scheme of
amalgamation of MSL with MML, the shareholders of MSL were allotted
1,88,166 equity shares of MML in the ratio of 1 equity share of MML for every
6 shares held in MSL. - The Company entered into a collaboration agreement
with Foramer S. A., an associate of Forasol S.A., for purchase of Ile d'
Amsterdam an offshore drilling rig at a price U.S. $10.75 million. The
Company arranged for a foreign currency loan through Bank of Baroda. In
view of this purchase, the Company obtained a firm order from ONGC for
drilling services for 2 years.
1985 - A letter of intent was obtained for the manufacture of 50,000 lines of
EPABX/PAXs in collaboration with OKL Electric Co. of Japan. - The
Company also signed a Memorandum of Understanding with the British
Telecom p.l.c. of London under which the two companies were to 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
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
27
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 A engine on the CJ
500 vehicles. A new fuel efficient 10-seater vehicle having a direct injection
diesel engine was introduced.
1991 - New replacement kits for the series of diesel engines, the XDP 4.90
were successfully launched in order to replace petrol engines in passenger cars
and create new demands for the series of diesel engines manufactured by the
Company.
1992 - It was proposed to launch a new LCV with a much larger platform,
imported driving comfort and better styling. - The Company issued 72,42,719 -
14.5% secured Non-convertible redeemable debentures of Rs 100 each with a
28
detachable warrant attached to each debenture entitling the holder thereof to
apply for 1 equity share of Rs 10 each at a premium of Rs 20 per share in the
ratio 1 debenture: 5 equity shares held, on the expiry of six months and 36
months from the date of allotment of debentures.
1993 - The Automotive division undertook to introduce a wide range of

products such as mini bus, MM Deluxe, Armada deluxe, Cabking pick-up, CL-
Classic & a single/double Cab pick-up etc.
1994 - During the year a new Company Mahindra USA Inc. had been
established in Texas, U.S.A. with the objective of increasing tractor sales in
U.S. - 9,73,200 shares allotted to the erstwhile shareholders of MNAL
11,14,682 shares allotted against the detachable warrants. 35,85,874 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.
1996 - The Company proposed to introduce the `Armada Grand' with XD3
diesel engine, 5 speed BA 10 transmission with air-conditioning and power
steering as standard features.
1997 - The Zaheerabad plant and R&D division were awarded Iso 9002 and
ISO 9001 certification respectively. With the technology received from Fuji
Technica, Japan the company undertook to manufacture dies for vehicle bodies
in the new Die Shop.
1998 - A joint venture company is being promoted by Mahindra and Mahindra

Limited, Infrastructure Leasing and Financial Services and Tamil Nadu
Industrial Development Corporation to set up an industrial park near Chennai
to attract auto ancillary units and all categories of non-polluting industries.
29
1999 - M&M has set up a new company - Mahindra Auto Specialities Ltd - for
bullet-proofing passenger vehicles and providing specialised services. M&M
has signed an MoU with Plasan Sasa of Israel for design and development of
armoured (bullet proof) solutions on M&M utility vehicles for use by Indian
security forces.
2000 - The Company will be launching its first CNG-powered utility vehicle 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.
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.
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.
2003 -Unleashes MaXX Pik Up utility vehicle - Signed an agreement with

Canara Bank . Where in, Canara Bank will provide loan to those farmers who
are willing to buy Mahindra's tractors and other farm implements.
2004 -Mahindra & Mahindra delisting of shares from DSE -M&M launches
two variants of Bolero utility vehicle in TN -The former managing director of
Rallis India, Mr Rajeev Dubey, is joining Mahindra & Mahindra Ltd (M&M)
as Executive Vice-President (Human Resources & Corporate Services).
2005 - Mahindra & Mahindra tractors' top dealer in the US has become the
largest tractor dealer in the US, muscling past dealers of John Deer, New
30
Holland and Kubota. -M&M forays into Australian tractor market on February
14.
2006 -M&M unleashes Scorpio Pik-Up in South Africa -M&M unveils three-
wheeler car -M&M Hingna unit enters into new wage agreement - Mahindra &
Mahindra Ltd on Oct 11,2006 signed a agreement with ITMCo (Iran Tractor
Manufacturing Co) to sell tractors in Iran.
2007 - Mahindra & Mahindra acquires a leading German Forging Company

Schoneweiss & Co. GmbH. - Mahindra unveils new Bolero in Gujarat. -
Mahindra and Mahindra (M&M) has launched the line of sports utility vehicles
(SUV) and pick-up trucks that it plans to begin selling in the United States
starting from 2009.
2008 -Mahindra & Mahindra acquires renowned Italian design house, GRD
Italy.
2009 - Mahindra & Mahindra unveiled its fourth generation Scorpio at an

unbeatable price. - Mahindra & Mahindra (M&M) signed a memorandum of
understanding with the State Bank of Bikaner and Jaipur (SBBJ) for vehicle
finance. - Mahindra launches luxury sedan XYLO - M&M enters retail space
with Mom & Me - Mahindra sold 1,788 XYLOs in two weeks - M&M signs
pact with State Bank of Bikaner - Mahindra gets order for 15,000 Xylo in three
months
2010 - Mahindra & Mahindra has hiked prices of its products by up to Rs

18,000 due to the in-excise duty announced in the Budget. - Anand Mahindra,
vice-chairman and managing director, M&M, is keen on attaining companies
that boost M&MÂ’s global aspirations. This can be done by giving a
combination of facilities, technology and dealer network.
2012 - Mahindra and Mahindra had acquired Ssangyong Motor Company, a

South Korean SUV maker, almost a year ago and are now planning to set up a
assembly plant and invest Rs 800 crore over next 3-4 years - Mahindra and
Mahindra wins arbitration award and class action suit against global vehicles.
31
2013 - Auto major Mahindra and Mahindra has inked partnership with online
shopping portal, Snapdeal.com to sell its two-wheeles on the site. - Mahindra
launches new visual identity reflecting modernity and dynamism.
2014 -Mahindra introduces 'Yoga Seats' in Quanto Compact SUV -Mahindra

signs MoU with Government of Bhutan to promote usage of Electric Vehicles
in the country -Mahindra Defence Naval Systems Inaugurates new Chakan
plant.
2015 -Mahindra & Mahindra Ltd - Mahindra Two Wheelers and Peugeot
Motocycles complete strategic partnership -Mahindra inaugurates its extended
automotive manufacturing facility at Zaheerabad in Telangana.
2016 -Mahi. & Mahi. inaugurates its Bio-CNG plant in Mahindra World City
(MWC), Chennai -Mahi. & Mahi. lunches its Premium Pick up 'Imperio' -
M&M launches KUV100; priced at Rs 4.42 lakh -Mahi. & Mahi - Mahindra
launches its new mHawk diesel engine variant.
2018 Mahindra Electric launches Virtual Reality drive experience for all-
electric e2oPlus. Mahindra First Choice Wheels Raises $15 Million valuing the
company at $265 Million. Mahindra Launches All New MOJO UT 300.
Mahindra and Ford Sign MoUs to Co-Develop Midsize and Compact SUV.
Electric Vehicle and Connected Car Solutions.
2019 Mahindra Presents Its Luxury SUV, Alturas G4, to His Highness
Maharaja Sawai Padmanabh Singh of Jaipur. Mahindra Launches the Stylish &
Thrilling New XUV300. Mahindra Launches FURIO Truck with
Unprecedented "More Profit or Truck back" Guarantee.
2020 Mahindra Group Launches #SkillHaiTohFutureHai Digital Campaign.

Mahindra hands over All-New Thar #1 to auction winner Aakash Minda.
Mahindra rolls out BS6 variants of Alfa, its popular 3-wheeler brand. Mahindra
Racing First Team to be certified Three-Star Excellence in sustainability by the
FIA.
32
CHAPTER – 4
DATA ANALYSIS AND INTERPRETATION
33
DATA ANALYSIS AND INTERPRETATION
This chapter is considered to be the core part of this project work. It is mainly
indented to examine the profitability of the company for the last five years. The
ratio analysis is one of the most powerful tools of financial analysis. It is a
process of computing and interpreting various accounting ratios for arriving at
conclusions about financial position and performance of an enterprise. They are
the pointers or indicators of financial strength, soundness, position or weakness
of a concern. One can draw conclusions about the exact financial position of an
enterprise with the help of financial ratios.
PROFITABILITY RATIOS
A profitability ratio measures a company's ability to generate earning relative

to sales, assets and equity. It reveals the financial strength and weakness of a
firm. The operation efficiency of the firm its ability to ensure adequate return to
its shareholders depends ultimately on the profit earned by it. The profitability
of a firm can be measured by its profitability ratio. Profitability ratios measure
the ability of a firm to earn an adequate return on sales, total assets and
invested capital. There are two types of profitability ratios. First, profitability
ratios based on sales and second, profitability ratios based on investment.
34
4.1 Net profit ratio
Table 4.1
Year Net profit Net sales Ratio (%)
2016 2,708.47 74,762.30 3.6227
2017 3,151.13 82,069.37 3.8395
2018 6,850.53 90,770.68 7.5470
2019 4,650.33 103,015.23 4.5142
2020 -1,363.58 93,764.51 -1.4542
(Source: secondary data)
INFERENCE: The above table 4.1 shows the Net Profit Ratio position of the
Mahindra and Mahindra ltd. The Net Profit Ratio was ranges from -1.4542 to
7.5470 during the study period 2016 to 2020.
Figure 4.1
Net profit ratio

8
7
6
5
4
3
2
1
0
2016 2017 2018 2019 2020
-1
-2
35
4.2 Gross profit ratio
Table 4.2
Year Gross Profit Net Sales Ratio (%)
2016 7,235.90 75,841.42 9.54
2017 7,816.47 83,773.05 9.33
2018 9,870.04 92,093.95 10.72
2019 11,270.77 1,04,720.68 10.76
2020 7,562.21 95,179.09 7.95
INFERENCE: The above table 4.2 shows the Gross Profit Ratio position of
the Mahindra and Mahindra ltd . The Gross Profit Ratio was ranges from 7.95
to 10.72 during the study period 2016 to 2020
Figure 4.2
Gross Profit Ratio

12.00
10.00
8.00
6.00
4.00
2.00
0.00
2016 2017 2018 2019 2020
36
4.3 Operating profit ratio
Table 4.3
Year Operating profit Net sales Operating profit
ratio
2016 12695.55 75841.42 16.7396
2017 17882.96 83773.05 21.34691
2018 17592.51 92093.95 19.10279
2019 12811.44 104720.68 12.23392
2020 11481.27 95179.09 12.06281

INFERENCE: The above table 4.3 shows the Operating Profit Ratio position of
the Mahindra and Mahindra ltd. The Operating Profit Ratio was ranges from
12.06281 to 21.34691 during the study period 2016 to 2020
Figure 4.3
Operating Profit Ratio

25
20
15
10
0
2016 2017 2018 2019 2020
37
4.4 Operating Ratio
Table 4.4
Year Operating cost Net sales Operating ratio
2016 47567.5 79382.8 59.92167
2017 53454.1 87279.4 61.24481
2018 56820.5 91941.5 61.80071
2019 64342.4 103015 62.45925
2020 57540.6 93764.5 61.36715
INFERENCE: The above table 4.4 shows the Operating Ratio position of the
Mahindra and Mahindra ltd. The Operating Ratio was ranges from 61.36 to
61.80 during the study period 2016 to 2020
Figure 4.4
Operating Ratio
63
62.5
62
61.5
61
60.5
60
59.5
59
58.5
2016 2017 2018 2019 2020
38
4.5 Return on Net Worth/Equity
Table 4.5
Year Net income Shareholder’s Return on equity
equity ratio
2016 3,148.43 26492.65 11.88
2017 3,698.04 29737.99 12.43
2018 7,510.39 36775.19 20.42
2019 5,315.46 39983.41 13.29
2020 127.04 39969.31 00.31
INFERENCE: The above table 4.5 shows the Return on Equity Ratio position
of the Mahindra and Mahindra ltd . The Return on Equity Ratio was ranges
from 0.31 to 20.42 during the study period 2016 to 2020.
Figure 4.5
Return on Equity Ratio

0.25
0.2
0.15
0.1
0.05
0
2016 2017 2018 2019 2020
39
4.6 Return on assets (ROA)
Table 4.6
Year Profit after tax Total Assets ROA
2016 3,148.43 100632.08 3.1287
2017 3,698.04 114742.15 3.2229
2018 7,510.39 137210.91 5.4736
2019 5,315.46 163391.57 3.2532
2020 127.04 167006.66 0.0761
INFERENCE: The above table 4.6 shows the Return on Asset Ratio position
of the Mahindra and Mahindra ltd. The Return on Asset Ratio was ranges from
0.076 to 3.253 during the study period 2016 to 2020
Figure 4.6
Return on Asset Ratio

8,000.00
7,000.00
6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
0.00
2016 2017 2018 2019 2020
40
4.7 Return on capital employed
Table 4.7
Year EBIT Capital ROCE
employed
2016 8161.84 63988.54 12.76
2017 8652.21 74909.68 11.55
2018 10577.19 88061.37 12.01
2019 12301.35 104648.2 11.75
2020 8650.57 112997.1 7.65
INFERENCE: The above table 4.7 shows the Return on Capital Employed
Ratio position of the Mahindra and Mahindra ltd. The Return on Capital
Employed Ratio was ranges from 7.65 to 12.76 during the study period 2016 to
2020
Figure 4.7
ROCE
14
12
10
0
2016 2017 2018 2019 2020
41
Liquidity Ratios
4.8 Current Ratio
Table 4.8
Year Current asset Current liability Current ratio
2016 43,911.20 36,643.54 1.198334
2017 48,787.76 39,832.47 1.224824
2018 59,076.02 49,149.54 1.201965
2019 69,406.04 58,743.33 1.181514
2020 64,045.43 54,009.52 1.185817
INFERENCE: The above table 4.8 shows the Current Ratio position of the
Mahindra and Mahindra ltd. The Current Ratio was ranges from 1.18 to 1.19
during the study period 2016 to 2020
Figure 4.8
Current Ratio
1.23
1.22
1.21
1.2
1.19
1.18
1.17
1.16
1.15
2016 2017 2018 2019 2020
42
4.9 Liquid ratio
Table 4.9
Year Liquid asset Current Liquid ratio
liabilities
2016 34794.88 36643 0.949564
2017 39900.99 39832 1.001732
2018 49740.43 49149 1.012033
2019 57205.84 58743 0.973832
2020 52933.14 54009 0.98008
INFERENCE: The above table shows the Liquid Ratio position of the
Mahindra and Mahindra ltd. The Liquid Ratio was ranges from 0.9738 to
1.0120 during the study period 2016 to 2020
Figure 4.9
Liquid ratio
1.02
1.01
1
0.99
0.98
0.97
0.96
0.95
0.94
0.93
0.92
0.91
2016 2017 2018 2019 2020
43
Comparative balance sheet
Table 4.10
Table showing comparative balance sheet of the financial year 2015 and 2016
Absolute
Particulars 31.03.2015 31.03.2016 % change
change
Equity and liabilities
Minority interest 5892.23 5,920.20 27.97 0.47
Shareholders fund 25856.38 26,492.65 636.27 2.46
Non-current liabilities 29362.57 31,575.69 2213.12 7.54
current liabilities 33732.8 36,643.54 2910.74 8.63
Total equity and

94843.98 1,00,632.08 5788.1 6.10
liabilities
Assets
Non-Current assets 55093.87 56,720.88 1627.01 2.95
current assets 39750.11 43,911.20 4161.09 10.47
Total assets 94843.98 1,00,632.08 5788.1 6.10
In the financial year 2016, the non-current and the current assets increased by
2.96% and 10.47% respectively. Minority interest increased by 0.47%.
shareholder’s fund increased by 2.46%.While non-current liabilities increased
by 7.54%.
44
Table 4.11
Absolute
change
Minority interest 5,920.20 6356.9 436.70 7.38
Shareholders fund 26,492.65 29,737.99 3,245.34 12.25
Non-current liabilities 31,575.69 38,814.79 7,239.10 22.93
current liabilities 36,643.54 39,832.47 3,188.93 8.70
Total equity and

1,00,632.08 1,14,742.15 14,110.07 14.02
liabilities
Assets
Non-Current assets 56,720.88 65,954.39 9,233.51 16.28
current assets 43,911.20 48,787.76 4,876.56 11.11
Total assets 1,00,632.08 1,14,742.15 14,110.07 14.02
Shareholder’s fund increased by 12.25%.While non-current liabilities increased
by 22.93%.
45
Table 4.12
Absolute
change
Minority interest 6356.9 8,250.47 1,893.57 29.79
Total equity and

1,14,742.15 1,37,210.91 22,468.76 19.58
liabilities
Assets
current assets 48,787.76 59,076.02 10,288.26 21.09
Total assets 1,14,742.15 1,37,210.91 22,468.76 19.58
Shareholder’s fund increased by 23.66%.While non-current liabilities increased
by 10.87%.
46
Table 4.13
Absolute
change
Minority interest 8,250.47 8,360.57 110.10 1.33
Total equity and

1,37,210.91 1,63,391.57 26,180.66 19.08
liabilities
Assets
current assets 59,076.02 69,406.04 10,330.02 17.49
Total assets 1,37,210.91 1,63,391.57 26,180.66 19.08
Shareholder’s fund increased by 8.72%. While non-current liabilities increased
by 30.83%.
47
Table 4.14
Absolute
change
Minority interest 8,360.57 7,691.74 -668.83 -8.00
Shareholders fund 39,983.41 39,969.31 -14.10 -0.04
current liabilities 58,743.33 54,009.52 -4,733.81 -8.06
Total equity and

1,63,391.57 1,67,006.66 3,615.09 2.21
liabilities
Assets
Non-Current assets 93,985.53 1,02,961.23 8,975.70 9.55
current assets 69,406.04 64,045.43 -5,360.61 -7.72
Total assets 1,63,391.57 1,67,006.66 3,615.09 2.21
In the financial year 2020, the non-current asset increased by 9.55% and the
current assets decreased by 7.72%. Minority interest decreased by 8.00%.
Shareholder’s fund decreased by 0.04%. While non-current liabilities increased
by 16.04%.
48
CHAPTER – 5
FINDINGS, SUGGESTIONS & CONCLUSION
49
5.1 Findings
The important findings of the study are:
1. The net profit ratio shows an increasing trend in first 3 years then started
to declining.
2. The current ratio of the company shows a fluctuating trend in the five years.
Generally the company having a standard current ratio 2:1 therefore the
Company’s position is not good.
3. The liquidity ratio also shows a fluctuating trend. It decreased from 2018
to 2019 then increased in 2020 but it fails to satisfy the standard ratio 1:1
4. Gross profit ratio shows a fluctuating trend. It decreased from 2016 to 2017
then increased in 2018 to 2019 and then decreased in 2020
5. Operating profit ratio shows upward trend in first 2 years from 2016 to 2017
then it started to decline.
6. Operating ratio increased in first 4 years from 2016 to 2019. Then it
decreased in 2020
7. Return on equity ratio shows a positive ratio which increases from 11.88 in
2016 to 20.42 in 2018.Then it decreased in 2019 and 2020
8. Return on asset ratio shows an upward trend in first 3 years and decreased
in 2019 and 2020. Highest ratio shows in the year 2018 with 5.47
9. Return on capital employed ratio shows a fluctuating trend which decreases
from 2016 to 2017 then it started increase in 2018, and started falling in 2019
and 2020. The ratio measures how well a company is
generating profits from its capital.
10. Total assets has been increased by 6.10, 14.2, 19.58, 19.08 respectively in
the years from 2016 to 2019 and in 2020 in falls to 2.21
11. While comparing the balance sheets it is found that shareholder’s funds has
been shown changes like 2.46, 12.25, 23.66, 8.72, -0.04 in the years 2016 to
2020
50
5.2 Suggestions
1. More focus towards the efficiency of the company
2. Improving management quality with adoption of new methodologies that
reduce operating cost
3. Working capital management is to be effectively managed to increase the
liquidity position of the company
4. Revise management of capital employed through equity to generate more
Returns
51
5.3 Conclusion
The study was conducted with the main objective of analyzing the profitability
position of Mahindra and Mahindra ltd over the last five years from 2016 to
2020. It is found that ratios are calculated from the financial statements’ which
are prepared as desired by the management and policies adopted on
depreciation and stock values and thus produce only a collection of facts
expressed in monetary term and cannot produce complete and authentic picture
of the business and also may not highlight other factors which affects
performance. profitability ratios show an increasing trend in first 3 years and it
declines thereafter however it covers the standard net profit ratio of 5-10%. The
company profits are coming down in last two years. The company is becoming
inefficient in the utilization and application of resources to get maximum
return. So this is the right time to revise their policies to overcome the decrease
in returns. It is better to change the strategies on sales and in managing cost of
the company.
52
BIBLIOGRAPHY
53
BIBLIOGRAPHY
BOOKS:
[1] Agarwal, M.P., Analysis of Financial Statements, National Publishing
House, New Delhi, 1981
[2] Batty, Management accounting, McConald and Evens Ltd., 1970
[3] Pandey I M, Financial Management, Vikas publishing house
[4] A Vinod, ‘Accounting for Management’ Calicut university
[5] Dr. S. P.Gupta, ‘management accounting’ SahithyaBhavan publications
WEBSITE
1.www.mahindra.com
2.www.wikipedia.org
3.www.moneycontrol.com
Journals
1-A study on the productivity of Mahindra and Mahindra financial service (vol
7)
2-‘Mahindra and Mahindra archives’ by csr journals
54
ANNEXURE
55
56
57
58
59
60
61
62
63
64
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“A STUDY ON PROFITABILITY ANALYSIS OF

MAHINDRA AND MAHINDRA LTD”

Project Report submitted to

In partial fulfillment of the requirement for the award of the degree of

Under the supervision of

Ms. SHINY A.O

This is to certify that the project report entitled “A STUDY ON

Prof. K.J.JOSEPH Ms. SHINY A.O

Place: Irinjalakuda IMMANUEL K.T

I would like to take the opportunity to express my sincere gratitude to all

I would like to express my sincere obligation to Rev.Dr. Jolly Andrews,

I am thankful to Prof. K.J.Joseph, Co-ordinator of B.Com (Finance), for

I express my sincere gratitude to Ms. Shiny A.O, Assistant Professor, whose

I extend my hearty gratitude to the librarian and other library staffs of my

I express my sincere thanks to my friends and family for their support in

CHAPTER NO. CONTENTS PAGE NO:

CHAPTER 1 INTRODUCTION 1–3

CHAPTER 2 REVIEW OF LITERATURE 4 – 14

INDUSTRY AND COMPANY

DATA ANALYSIS AND

4.1 Net profit ratio 24

4.2 Gross profit ratio 25

4.3 Operating profit ratio 26

4.4 Operating ratio 27

4.5 Return on equity 28

4.6 Return on assets 29

4.7 Return on capital employed 30

4.8 Current ratio 31

4.9 Liquid ratio 32

Comparative balance sheet of financial year 2015 and

Comparative balance sheet of financial year 2018 and

Comparative balance sheet of financial year 2019 and

4.1 Chart showing net profit ratio 24

4.2 Chart showing gross profit ratio 25

4.3 Chart showingoperating profit ratio 26

4.4 Chart showing operating ratio 27

4.5 Chart showing return on equity 28

4.6 Chart showing return on assets 29

4.7 Chart showing return on capital employed 30

4.8 Chart showing current ratio 31

4.9 Chart showing liquid ratio 32

Financial analysis is a process of identifying the strength and weakness of the

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

1.3 Scope of study

1.4 Objectives of the study

➢ To analyse overall profitability of Mahindra and Mahindra Limited over

➢ 1.5.1 Nature of study :-Analytical research is used for the purpose of

1.6 Tools for Analysis

2.2 Conceptual literature

2.1.1 Meaning of Finance

Business concern needs finance to meet their requirements in the economic

2.1.2 Financial Performance

"Financial performance is scientific evaluation of profitability and financial

2.1.3 Financial Efficiency

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

2.1.4 Financial Performance Analysis

2.1.5 Ratio Analysis