Company Overview

Mahindra Finance began as a captive financier of Mahindra Utility Vehicles in the early 90s. From
Mahindra UVs to tractors to non-Mahindra products, the company has diversified into a financial
services provider with a whole suite of financial solutions tailored to the under-served customer in
under-penetrated rural markets.

Our product portfolio consists of vehicle finance, which includes financing of passenger vehicles,
utility vehicles, tractors, commercial vehicles, and construction equipment; and pre-owned vehicles
and SME finance, which includes project finance, equipment finance, working capital finance, and
bill discounting services to SMEs.

discounting services to SMEs. The company also undertakes mutual fund distribution, fixed
deposits, and personal loans tailor-made to suit its unique customer set.

With over 24,000 employees, Mahindra Finance has a presence in every state in India and a
footprint in 85% of its districts. It has a network of over network 1340 offices, serving customers in
more than 3, 80,000 villages– that’s one in every two villages in the country. And has assets under
management (AUM) of over Rs. 81,000 crores. Since its inception, Mahindra Finance has served as
a positive change agent catering to the financial needs of millions in rural and semi-urban India. Its
deep connection with the customers and their evolving needs has been the key to its growth and
success. The company has thus pioneered several innovative financial solutions tailor-made to the
earning patterns of the unique “Earn and Pay” segment that it serves.

Mahindra Finance is the only Non-Banking Financial Company from India to be listed on Dow
Jones Sustainability Index in the Emerging Market Category. Mahindra Finance has been
ranked 54th among India’s Best Companies to Work 2021 by the Great Place to Work
Institute.

Vision

To be a leading financial services provider in semi-urban and rural India.

Mission

To transform rural lives and drive positive change in the communities.

Product Portfolio

Vehicle Financing
 • Auto and utility vehicles
• Tractors
• Cars
• Commercial vehicles and construction equipment
• Pre-owned vehicles and others

SME Financing

• Project Finance
• Equipment Finance
• Working capital finance
• Institutional lending

Personal Loans

• Wedding
• Children’s education
• Medical treatment
• Working capital

Insurance Broking*

• Retail customers Corporates

• New house, house renovation and improvements

* Mahindra Insurance Brokers Limited (MIBL)

Housing Finance*

• New House
• House renovation and improvements

Mutual Fund Schemes*

• Liquid scheme
• Equity-linked Saving Scheme (ELSS)
• Equity-oriented balanced scheme
• Short-term debt scheme

History of the company

Mahindra & Mahindra Limited (M&M) is an Indian multinational manufacturing

corporation headquartered in Mumbai. It was established in 1945 as Mahindra &
Muhammad and later renamed as Mahindra & Mahindra. Part of the Mahindra Group,
M&M is one of the largest vehicle manufacturers by production in India. Its
subsidiary Mahindra Tractors is the largest manufacturer of tractors in the world by
volume. It was ranked 17th on a list of top companies in India by Fortune India 500 in
2018. Its major competitors in the Indian market include Maruti Suzuki and Tata Motors.

Company History - Mahindra & Mahindra Financial Services

We were incorporated on January 1, 1991, as Maxi Motors Financial

Services Limited and received a certificate of commencement of business

on February 19, 1991. The name was changed to Mahindra & Mahindra

Financial Services Limited on November 3, 1992. We are registered

with the RBI as an NBFC with effect from September 4, 1998, under

Section 45IA of the Reserve Bank of India Act 1934.

Key Events in our business history

Calendar Year Event

1993 Commenced financing of M&M UVs

1995 First branch opened outside Mumbai, at Jaipur

1996 Commenced financing M&M dealers for purchase of

tractors

1998 Launched pilot project for retail tractor

financing

1999 Commenced tractor retail financing in rural and

semi-urban areas

2001 Total Assets crossed Rs. 10 billion

2002 Commenced financing of non-M&M vehicles

Received Tier II debt from International

Finance Corporation

Our first securitization transaction of Rs.

434.8 million

2004 Long-term credit rating of AA+/Stable

The branch opened in Port Blair

Listing of nonconvertible debentures on

BSE on the wholesale

debt market segment

Securitization of tractor assets of Rs.

256.6 million

2005 Tie-up with HPCL

MIBL became our wholly owned subsidiary

Commenced distribution of the third party

mutual funds

2006

-Following a successful IPO, subscribed nearly 27 times more,

Mahindra & Mahindra Financial Services Ltd (MMFSL) priced its shares

at Rs 200 each. The original price band for the issue of two crore

shares of Rs 10 each, for cash at a premium, decided through the

the book-built process had been fixed at Rs 170-200 a share.

-Mahindra & Mahindra Financial Services Limited has informed that Mr.

Narayan Shankar has ceased to be the Company Secretary of the company

with effect from October 26, 2006. Ms. Angarika Baviskar would

continue to hold the post of Deputy Company Secretary and Compliance

Officer of the company.

-Tied up with Maruti Udyog Limited.

-Reached a new benchmark with 400 branches.

2007

-Commenced Home Loans Business through our subsidiary Mahindra Rural

Housing Finance Limited.

2008

-Received 12.5% equity participation from NHB for our Subsidiary

Mahindra Rural Housing Finance Ltd.

-Preferential allotments of shares to Standard Chartered Private

Equity Ltd. & TPG Axon Private Equity Ltd.

2009

-Commenced Fixed Deposits Program.

2010

- More than 2 lakh new customer contracts in a financial year for the

first time.
- Branch network crosses 550 branches.

2011

- Maiden QIP Issue.

- Joint Venture with Rabobank subsidiary for tractor financing in

The USA.

2012

- Mahindra Finance wins the inaugural Porter Prize in the category of

Creating Distinctive Value.

- Mahindra Finance is first runner at CNBC TV18 Best Bank &

Financial Institution awards.

- Ranked 9th in the prestigious Dun & Bradstreet's India's Top 500

Companies 2011(released on 1st June 2012), based on the total income

in the FIs/ NBFCs/ Financial Services Sector.

2013

-Company has splits its Face value of Shares from Rs 10 to Rs 2

-M&M Fin.Services Woori Financials & Mahindra Finance sign MOU for
Joint Venture

-Winner of the prestigious Golden Peacock Award for Excellence in

Corporate Governance.

2014

-MIBL declared 'Broker of the Year at 18th Asia Insurance

-India Ratings and Brickworks Ratings upgraded Company's long-term

debt rating to AAA. CARE Ratings also assigned AAA rating to

Company's long-term debt.

2015

-Mahindra Finance wins the Golden Peacock National Training Award

2016

-M&M Fin.Services SEBI grants license to Mahindra Mutual Fund

-M&M Fin. Services Ranked 5th in Financial Services Sector in India

2017

- Significant Achievement in HR Excellence

- Mahindra Finance has been included in the Sustainability Yearbook

2017

- Mahindra Finance is Certified as a Great Workplace.

- Mahindra Finance bagged the In spectrum-Rise through Diversity

Award

- SKOCH Order of Merit for Corporate Social Responsibility

- SKOCH Order of Merit for Good Health and Well Being

- SKOCH Order of Merit for Focused Talent Pool

- Mahindra Finance Included in The Sustainability Yearbook 2017

- MMFSL enters INDIA BOOK OF RECORDS by conducting the Largest

Learning Session in a Day at Multiple Location

- Commended with Significant Achievement in HR Excellence at the 7th

Confederation of Indian Industry (CII) HR Excellence Award 2016.

- Conscious Capitalist of the Year

- Mahindra Finance is listed in Dow Jones Sustainability Index (DJSI)

for the 4th year in a Row.

- Mahindra Finance has been bestowed with the national award for

excellence in its CSR Initiatives

- Participation in Resource Mobilization for a humanitarian cause

- Winners in the category of organization with a turnover of Rs. 501

Crores and above for Innovation in Recruitments

- Mahindra Finance was honored as Best Overall Excellence in CSR in

the organizational Category.

- Mahindra Finance Ranked 68th among 791 employers surveyed in India.

- Mahindra Finance Ranked 5th in Financial Services Sector in India

- Mahindra Finance Ranked 3rd in Workplace Transformation Case Study

- Mahindra Finance wins the Golden Peacock National Training Award

 2018

-Honoured with the Indian Development Foundation CSR Award.

-Conferred with the Equal Opportunity Employer Award during the 4th

National Conference on Disability by Sarthak Educational Trust.

2019

-Recognised as the 8th Great Place to Work by Economic times.

-Won the Marketing Award for the Best Customer Engagement Activity.

2020

-Ranked 25th in India's Best Companies to work by the economic times

& a great place to work.

-Ranked 6th in the list of the best large workplaces in Asia by Great

a place to Work.

2021

-Launched Quickly a vehicle leasing & subscription business.

-Ranked 54th in India's Best Companies to Work for 2021 by Great

A place to Work Institute.

Executive Summary

The project was on Genset Requirement in Branches of Mahindra. The main purpose was to do the
cost analysis of the Genset.

The research study was mainly designed to analyze the cost and manage the various causes in
different segments of Mahindra to reduce the cost and increase the profitability of Genset.

Cost analysis plays an important role in the form which enables the company to reduce costs and
control costs during economic pressure. This study helps to check out where the company is
spending more amounts for unnecessary use.
PROMOTERS

The two main promoters at Mahindra and Mahindra Financial Services are chairman Keshub and
nephew Anand.

Keshub Mahindra is an Indian businessman and chairman emeritus of the Mahindra Group. He
retired as chairman in August 2012 after heading the group for nearly five decades, handing over the
position to his nephew, Anand Mahindra.

Anand Mahindra is the Chairman of the Mahindra Group, Mahindra Limited, and Tech Mahindra
Limited. His tenure has seen the group expand domestically and internationally into a range of major
industrial sectors, from automobiles and agriculture to IT and aerospace.

Mahindra and Mahindra Previous Years »

Key Financial Ratios ------------------- in Rs. Cr. -------------------

Mar '22 Mar '21 Mar '20 Mar '19 Mar '18

Investment Valuation Ratios

Face Value 5.00 5.00 5.00 5.00 5.00
Dividend Per Share 11.55 8.75 2.35 8.50 7.50
Operating Profit Per Share (Rs) 56.65 52.33 46.64 53.41 50.06
Net Operating Profit Per Share (Rs) 462.08 362.30 365.89 431.26 391.62
Free Reserves Per Share (Rs) -- -- -- -- --
Bonus in Equity Capital 80.46 80.58 80.70 80.80 80.91
Proitability Ratios

Operating Profit Margin(%) 12.25 14.44 12.74 12.38 12.78

Profit Before Interest And Tax Margin(%) 7.71 9.23 7.58 8.64 9.54
Gross Profit Margin(%) 7.99 9.48 7.86 8.91 9.74
Cash Profit Margin(%) 12.75 13.32 11.80 12.09 10.86
Adjusted Cash Margin(%) 12.75 13.32 11.80 12.09 10.86
Net Profit Margin(%) 8.59 0.59 2.92 8.94 8.94
Adjusted Net Profit Margin(%) 8.29 0.58 2.82 8.67 8.76
Return On Capital Employed(%) 14.66 13.20 14.01 17.62 17.43
Return On Net Worth(%) 12.74 0.78 3.89 14.01 14.37
Adjusted Return on Net Worth(%) 13.27 11.48 9.77 14.10 12.94
Return on Assets Excluding Revaluations 311.60 275.48 275.12 275.17 243.68
Return on Assets Including Revaluations 311.60 275.48 275.12 275.17 243.68
Return on Long Term Funds(%) 15.01 13.29 14.47 17.84 17.79
Liquidity And Solvency Ratios

Current Ratio 0.96 1.14 1.08 1.08 1.06

Quick Ratio 0.76 0.92 0.97 0.90 0.92
Debt Equity Ratio 0.17 0.21 0.09 0.07 0.09
Long Term Debt Equity Ratio 0.15 0.21 0.06 0.06 0.07
Debt Coverage Ratios

Interest Cover 29.90 14.81 46.31 57.04 51.52

Total Debt to Owners Fund 0.17 0.21 0.09 0.07 0.09
Financial Charges Coverage Ratio 40.89 20.84 65.94 73.45 64.71
Financial Charges Coverage Ratio Post 34.12 7.75 32.38 59.70 53.01
Tax
Management Efficiency Ratios

Inventory Turnover Ratio 9.76 11.39 13.38 13.96 18.30

Debtors Turnover Ratio 21.36 16.86 13.10 15.06 15.93
Investments Turnover Ratio 1.27 1.09 1.22 1.46 18.30
Fixed Assets Turnover Ratio 2.29 2.43 2.59 3.34 3.44
Total Assets Turnover Ratio 1.34 1.15 1.30 1.57 1.53
Asset Turnover Ratio 1.32 1.14 1.23 1.54 1.55

Average Raw Material Holding -- -- -- -- --

Average Finished Goods Held -- -- -- --

--
-29.24 -13.65 -3.25 -21.39 -31.43
Number of Days In Working Capital 74.98 70.95 68.88 73.49 70.08
Proit & Loss Account Ratios -- -- -- -- --
Material Cost Composition
0.72 0.57 1.37 1.11 1.36
Imported Composition of Raw Materials
Consumed 5.73 4.44 4.91 5.71 5.14
Selling Distribution Cost Composition 22.04 108.74 89.23 19.43 21.24
Expenses as Composition of Total Sales
Cash Flow Indicator Ratios 14.72 11.67 33.41 14.00 15.85
Dividend Payout Ratio Net Profit 78.86 64.50 80.69 76.42
Dividend Payout Ratio Cash Profit 92.57
Earning Retention Ratio 85.68 95.27 78.68 86.07 82.88
Cash Earning Retention Ratio 0.85 1.15 0.53 0.37 0.53
AdjustedCash Flow Times

Source : Dion Global Solutions Limited

Price/BV (X) 2.47 2.75 0.99 2.34 2.91

Price/Net Operating Revenue 1.68 2.11 0.75 1.49 1.81

Analyses of Financial information:

1)Quick Asset Ratios: The quick ratio is the value of a business’s “quick” assets divided by its
current liabilities. Quick assets include cash and assets that can be converted to cash in a short
time, which usually means within 90 days.

Quick ratio = quick assets / current liabilities.

2)Debt Equity Ratio: The debt to equity ratio or risk ratio is the ratio that calculates the weight
of total debt and financial liabilities against the shareholder’s equity.

Debt to Equity Ratio=Total Debt/Shareholder’s Equity

3) Long-term Debt Equity Ratio: The debt to equity ratio is a measure of a company’s financial
leverage, and it represents the amount of debt and equity is used to finance a company’s assets.
It is calculated by dividing a firm’s total liabilities by total shareholder’s equity.

Debt /Equity=Total Liabilities/Total Shareholder’s Equity

• 4) Inventory Turnover Ratio: It is defined as the number of times inventory is sold or

used in a period such as a year.

Inventory Turnover Ratio=Net sales/ Average Inventory at Selling Price

• 5)Dividend Payout Ratio: It shows how much the company earns after the taxes are
paid to the shareholders.

Dividend Payout Ratio=Annualised Dividend per Share/ Earning Dividend Share

6) Current Ratio: It is the liquidity ratio that determines whether the firm has enough
resources to meet its short-term obligations.

Current Ratio=Current Assets/ Current Liabilities.

7) Retention Ratio: the proportion of earnings retained back in a business.

Retention Ratio=(Net income -Dividend)/Net income.

GENSET REQUIREMENT IN BRANCHES OF MAHINDRA

Analyzed to find out the Genset requirements in different branches of Mahindra.

They were 60 branches in the Northeast of Uttar Pradesh. In 8 branches Genset availability is
there, 11 branches Inverter facility is available,17 branches required Invertor facility and in 10
branches Genset equired urgently.

Theoretical background of Study

Cost:
Cost is prepared to know the effective utilization of funds and to have the realization of
objective efficiently. To perform functions such as planning controlling operating in coordinating
activities, costing is very important and it acts as a powerful tool for management. Cost is the
monetary valuatof off the effort, resources, material, risk incurred time, utilities consumed
opportunity taken in production, and the delivery of goods and services.

*Cost accounting

Cost accounting is a process of collecting and interpreting the data to determine the rest of the
reports of the organization, and how will the organization earns and uses the fund.

Advantages of Cost accounting

-Helps in cost modeling

-Actual cost can be compared with the standard costs

-Helps in the calculation of trend analysis

- Inventory valuation will be easier