INTRODUCTION:

Financial analysis is the process of examining a company’s

performance in the context of its industry and economics environment in order
to arrive at a decision or recommendation. Often, the decisions and
recommendations addressed by financial analysts pertain to providing capital to
companies specifically, whether to invest in the company debt or equity
securities and at what price. An investor in debt securities is concerned about
the company’s ability to pay interest and to repay the principle lent. An investor
in equity securities is an owner with a residual interest in the company and is
concerned about the company’s ability to pay dividends and the likelihood that
its share price will increase.
Overall, a central focus of financial analysis is evaluating the company’s
ability to earn a return on its capital that is at least to equal to the cost of that
capital, to profitably grow its operations, and to generate enough cash to meet
obligations and pursue opportunities.
Fundamental financial analysis starts with the information found in a
company’s financial reports. These financial reports include audited financial
statement, additional disclosures required by regulatory authorities, and any
accompanying (unaudited) commentary by management.
Final statements provides a brief view of financial standing and profitability
of the business operations to the owners of the business, management and others
stakeholders. The trial balance is used for establishing the accuracy of account
books. Once the accuracy is determined, the next step is to know financial
results of the business. This purpose is solved by preparing the final accounts.
The parliament passed the companies act, 2013 which was subsequently ratified
by the president of India on 29th august, 2013. This acts amends and
consolidates different laws applicable to different companies. Various
provisions of this act were implemented via a notifications issued on 12 th
September, 2013. Different provisions of companies act, 1956 are still
applicable.
OBJECTIVES OF FINANCIAL PERFORMANCE OF ANALYSIS:

1. TRUE & FAIR VIEW OF FINANCIAL POSITION:

 Balance sheet shows the financial position of the business it enlists
the assets and liabilities. The difference between those represents
the net worth (book value of the business).
 Decreasing in the net worth is bad indicator of growth. This gives
the management various hints to improve the financial position.
 Thus, the utmost objective of true and fairness is very essential
here.

2. TRUE $ FAIR VIEW OF FINANCIAL PERFORMANCE:

 Income statement shows the financial performance of the entity its
revenue and its expenses.
 Decrease in revenue has direct impact in decrease in profits.
Increases in in expense have reverse impact of decrease in profits.
 Thus, the true and fairness is essential objective in preparing the
income statement.

3. TO PROVIDE INFORMATION ABOUT THE EARNING

POTENTIAL:
 Another objectives behind financial statements is to provide
information about the resources available with business
(production capacity, labour hours, cash reserves, inventory,
WIP percentage, delivery mechanism, etc.) and its usage
parameters.
 This information helps in better understanding of the business as
changes in the utilisation and acquisition of the resources helps
the stakeholders to take financial decisions.

4. TO PROVIDE INFORMATION ABOUT THE EARNING

POTENTIAL:
  Financial statements should also hint about earning potential of
the business. This information is for top management level of
the organisation.
 With the economic assets and liabilities, the management can
decide on the expansion levels.

5. TO FORM BASIS FOR DECISIONS OF THE

STAKEHOLDERS:
 Stakeholders means the owners, directors, customers, suppliers,
employees, workman, government, finance providers and the
public at large.
 Employees needs to take decision whether to stay employed or not.
Customers’ needs to take decision whether to give more orders.
Suppliers needs to think about whether to supply or not. Finance
providers also have to take decision whether it is feasible to give
loans to the entity. Public at large needs to think whether to invest
in the entity.

6. TO REPORT ON THE EFFECTIVENESS AND EFFICIENCY

OF THE MANAGEMEENT:
 Owners have no time to attend the daily operations of the business
and thus, they appoint the management to look forward for the
entity.
 Effectiveness means whether the purpose is served or not. So,
owners can think whether the decision made by them in appointing
the management is appropriate or whether it needs any change it
also show whether the internal policies are strong.

7. OTHER OBJECTIVES:
 To help settle disputes arising between various parties.
 To provide information about the creativity of the entity in the
finance world.
 To help government with information about payment of taxes, etc.
INTRODUCTION:

Mahindra & Mahindra limited (M&M) is an Indian

multinational automotive manufacturing corporation headquartered in Mumbai.
It was established in 1945 as Mahindra & Mohammed 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 17 th
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 tat motors.
Mahindra& Mahindra is a public automobile company. The founders of
Mahindra & Mahindra is J.C. Mahindra, K.C. Mahindra and M.G. Mahindra.

Every company is conducting survey on customer satisfaction level on

their products. To make the products up to the satisfaction level of customer. It
played a vital role in help in the nation to produce higher value of goods and
services and in the enhancing their skills and impose tremendous demand for
automobiles, lot of car manufacturers company facing cut throat companies in
the fields of technology and price.
 Mahindra and Mahindra Limited, popularly known as Mahindra, is an
Indian company that specializes in the production of automobiles. This firm’s
headquarters is in Mumbai, Maharashtra, India. As per Mahindra and Mahindra
Ltd. (2017), this corporation was established in 1945, and its primary business
was trading in steel. Today, Mahindra is renowned for the production and
distribution of different classes of automobiles and farm equipment, particularly
tractors. In 2018, this company had over 41,673 permanent and casual
employees. Moreover, it has offered indirect job opportunities to at least
200,000 people in over 100 nations it operates (Shankar, 2018). Mahindra’s
financial report showed that the company made over $4.7 billion in 2018
(Shankar, 2018). In the same year, this company’s net worth was $17.8 billion
(Shankar, 2018). This business has invested in numerous industries that drive
the economy of India. According to Contractor, Kumar, and Dhanaraj (2015),
Mahindra has ventured into the automobile industry where it manufactures
utility vehicles. Moreover, this corporation has investments in agribusiness,
defence, aerospace, logistics, industrial equipment, two-wheeler industries, and
real estate. However, this multinational is mainly renowned for the production
of utility and commercial vehicles and farm machinery like tractors and
combine harvesters.

In spite of stiff competition from American and European firms, Mahindra

seems to be doing well, especially in India. This company has acquired and
partnered with multiple firms as a way to boost performance and overcome
competition. Moreover, it has launched several new products as a strategy to
grow its portfolio.
INTRODUCTION OF AUTOMOBILE INDUSTRY:

The
automobile industry has changed the way people live and work. The earliest of
modern cars was manufactured in the year 1895.
Shortly the first appearance of the car followed in India. As the century
turned, three cars were imported in Mumbai (India). Within decade there were
total of 1025 cars in the city. The dawn of automobile actually goes back to
4000 years when the first wheel was used for transportation in India. In the
beginning of 15th century. Portuguese arrived in china and the interaction of the
two cultures led to a variety of new technologies, including the creation of a
wheel that turned under its own power. By 1600s a small-powered engine
models was developed, but it took another century before a full-sized engine-
powered vehicle was created.
Mahindra is an Indian multinational corporation that manufactures
automobiles and farm equipment. This company has established subsidiaries in
China and the United States as a tactic to reach overseas markets. Mahindra
leverages technology development in these foreign nations to manufacture its
vehicles and tractors and sell them to neighbouring countries. Its chief research
and development centre is located in Chennai, India, as the city has
sophisticated technology and skilled personnel. Mahindra offers employment
opportunities to all applicants regardless of their race, faith, gender, and
disabilities. Therefore, allowing this organization to invest in a country would
boost the income of most households, since it would create employment
opportunities for a lot of people. Moreover, this company would act as a major
source of revenue to the local government, thus enabling it to provide social
services to its citizens. There is a need for a country to control the operations of
Mahindra to ensure that it does not subject local industries to unhealthy
competition.
OBJECTIVES OF MAHINDRA & MAHINDRA
LIMITED:

 To gather information about customer satisfaction towards Mahindra &

Mahindra motors in the geographic region of deoghar (Jharkhand).

 To know the customer perception about features, low maintenance cost and
looks of Mahindra and Mahindra motors.

 To know the customer satisfaction about the safety and comfortable vehicles
of Mahindra & Mahindra.

 To provide suggestions, in improving the customer satisfaction and the

company sales and profitability.

 To differentiate offering to provide an excellent value proposition to the

customer.

 To optimize project costs.

 To create a new segment and retain market domination.

BACKGROUND/HISTORY OF THE MAHINDRA &

MAHINDRA:

Mahindra & Mahindra (M&M) was established in 1945 as

Mahindra & Mohammed. Later on, after the partition of India, one of the
partners Ghulam Mohammed returned to Pakistan, where he became finance
minister. The present chairman of Mahindra group, is the grandson of jadish
Chandra Mahindra. As a result, company was returned to Mahindra & Mahindra
in 1948.

M&M started its operation as manufactured of general purpose utility

vehicles. It assembled CKD jeeps in 1949. Over the passing years, the company
expanded is business and started manufacturing light commercial vehicles
(LCVs) and agricultural tractors.

At the same time, M&M managed to be the largest manufacturer of tractors

in India, by holdings leadership in the market of the country, for around 25
years. The company is an old hand in designing, developing, manufacturing and
marketing tractors as well as farm implements. It made its entry to the passenger
car segment in India, with the manufacture of Logan (mid-size sedan) in April
2007, under the Mahindra Renault collaboration.

CHRONOLOGY:

In 1948, the company changed its name to Mahindra &

Mahindra. They eventually sae a business opportunity in expanding into
manufacturing and selling larger MUVs and started assembling under license of
the willys jeep in India. Soon, M&M was established as the jeep manufacturer
in India, later commenced manufacturing light commercial vehicles (LCVs) and
agricultural tractors.
 In 1999, Mahindra purchased 100% of Gujrat tractors from the
government of Gujarat and in 2017 Mahindra renamed it as gromax agree
equipment limited.
In 2007, M&M acquired Punjab tractor limited (PTL) making it the world’s
largest tractor manufacturer. In 2010, M&M took a 55% stake in the Reva
electric car company and in 2016, they renamed it Mahindra electric mobility
ltd after taking 100% ownership.
In 2011, Mahindra and Mahindra acquired south Koreas sang young motor
company. And in October 2014, Mahindra and Mahindra acquired a 51%
controlling stake in Peugeot motorcycles. In 2015, Mahindra and Mahindra
acquired a 33.33% stake in Japanese tractor manufacturer Mitsubishi
agricultural machinery.
In March 2016, Mahindra acquired 35% in Finland-based sampo rosined. In
January 2017, Mahindra and Mahindra ltd signed a memorandum of
understanding (mou) agreement with Belgium-based dewulf, a supplier of a full
line of potato and root crop machinery.
And in last to last year in April 2020. While covid going on in that time the
company ended its joint venture with Renault, with Mahindra and Mahindra
buying out Renault stake. But Renault continues to license and supply key
components such as engines and transmissions to Mahindra & Mahindra.

MILESTONE OF MAHINDRA & MAHINDRA

LIMITED:

 M&M established its business connections in the USA through Mahindra

Wallace.
 It started steel trading on behalf of European suppliers.
 M&M was converted into public limited company on June 15, 1955.
 Machines tools division was started.
PRODUCT PROFILE:
SWOT ANALYSIS:
 STRENGTH:

 Trust people are having in the brand name Mahindra motors.

 Strong relationship with dealers.
 Number of authorize service station is in good number than that of
competitors.
 Stylish when compared to Tata product.
 Safer than Tata product.

WEAKNESS:

 Dealers are selling vehicles at different prices in a signal city.

 Changing of original parts by a dealers.
 Average is less than that of Tata product.
 Maintenance cost is high.
 Rising the cost of raw materials resulting in law margins. Therefore
discounts can’t be offered.

OPPORTUBITIES:

 Improving road infrastructure.

 Lenient norms for generation of permits.

THREATS:
  Demand contraction due to market upheaval.
 Strong presence of Tata Maruti product.

RESEARCH METHODOLOGY:

The research methodology consists of

design, data collections and tools for analysing the past and future performance
of PACCS, Financial analysis. The various tools used for a ratio analysis,
regression analysis, comparative balance sheet, common size balance sheet,
time series analysis. The research process provides a systematic, planned
approach to the research project and ensures that all aspects of the research
project are consistent with each other.

And the research of the financial statements performance there are 5

accounts are as follows:

1. Balance sheet
2. Cash flow statement.
3. Ratio analysis statement.
4. Profit and loss A/c statement
5. Working notes.
 1. BALANCE SHEET:

The term balance sheet refers to a financial statement that

reports a company's assets, liabilities, and shareholder equity at a specific point
in time. Balance sheets provide the basis for computing rates of return for
investors and evaluating a company's capital structure.

In short, the balance sheet is a financial statement that provides a

snapshot of what a company owns and owes, as well as the amount invested by
shareholders. Balance sheets can be used with other important financial
statements to conduct fundamental analysis or calculate financial ratios.
NOTES:

There are many company balance sheet formats, which help understand
its assets and liabilities and other essential things. The format of company
balance sheet is categorised as classified, comparative, common size and
vertical. The old format of the balance sheet, as shown in figure 1 is known as
T-shaped or horizontal format. In this format, equities and liabilities are at
the top along while assets are at the bottom. However, as per amendment in
the Companies Act 2013 in 2017, every firm must make its balance sheet as
per the format prescribed in Schedule III. You can access more information
on the same on the website of Ministry of Corporate Affairs.

2. CASH FLOW STATEMENT:

A cash flow statement is

a financial statement that provides aggregate data regarding all cash inflows a
company receives from its ongoing operations and external investment sources.
It also includes all cash outflows that pay for business activities and
investments during a given period. 

A company's financial statements offer investors and analysts a portrait

of all the transactions that go through the business, where every transaction
contributes to its success. The cash flow statement is believed to be the most
intuitive of all the financial statements because it follows the cash made by the
business in three main ways—through operations, investment, and financing.
The sum of these three segments is called net cash flow.
NOTES:

There are three sections in a cash flow statement: operating activities,

investments, and financial activities.

Operating activities: Operating activities are those cash flow activities that

either generate revenue or record the money spent on producing a product or
service. Operational business activities include inventory transactions, interest
payments, tax payments, wages to employees, and payments for rent. Any other
form of cash flow, such as investments, debts, and dividends are not included in
this section.
Investment activities: The second section on the cash flow statement records
the gains and losses caused due to investment in assets like property, plant, or
equipment (PPE) thus reflecting overall change in the cash position for a
company. When analysts want to know the company’s investment on PPE, they
check for changes on a cash flow statement.
Capital expenditure is another important line item under investment activities.
is the money which a business invests on fixed assets like buildings, vehicles or
land. An increase in means the company is investing on future operations.
However, it also shows that there is a decrease in company cash flow.

Financial activities: The third section on the cash flow statement records the

cash flow between the company and its owners and creditors. Financial
activities include transactions involving debt, equity, and dividends. In these
transactions, incoming cash is recorded when capital is raised (such as from
investors or banks), and outgoing cash is recorded when dividends are paid.

3. RATIO ANALYSIS STATEMENT:

Ratio analysis is a quantitative
method of gaining insight into a company's liquidity, operational efficiency,
and profitability by studying its financial statements such as the balance sheet
and income statement. Ratio analysis is a cornerstone of fundamental equity
analysis.

Types of Ratio Analysis

1. Liquidity Ratios

Liquidity ratios measure a company's ability to pay off its short-term debts as

they become due, using the company's current or quick assets. Liquidity ratios
include the current ratio, quick ratio, and working capital ratio.

2. Solvency Ratios
Also called financial leverage ratios, solvency ratios compare a company's
debt levels with its assets, equity, and earnings, to evaluate the likelihood of a
company staying afloat over the long haul, by paying off its long-term debt as
well as the interest on its debt. Examples of solvency ratios include: debt-
equity ratios, debt-assets ratios, and interest coverage ratios.

3. Profitability Ratios

These ratios convey how well a company can generate profits from its
operations. Profit margin, return on assets, return on equity, return on capital
employed, and gross margin ratios are all examples of profitability ratios.

4. Efficiency Ratios

Also called activity ratios, efficiency ratios evaluate how efficiently a

company uses its assets and liabilities to generate sales and maximize profits.
Key efficiency ratios include: turnover ratio, inventory turnover, and days'
sales in inventory.

5. Coverage Ratios

Coverage ratios measure a company's ability to make the interest payments

and other obligations associated with its debts. Examples include the times
interest earned ratio and the debt-service coverage ratio.

6. Market Prospect Ratios

These are the most commonly used ratios in fundamental analysis. They
include dividend yield, P/E ratio, earnings per share (EPS), and dividend
payout ratio. Investors use these metrics to predict earnings and future
performance.
For example, if the average P/E ratio of all companies in the S&P 500 index is
20, and the majority of companies have P/Es between 15 and 25, a stock with a
P/E ratio of seven would be considered undervalued. In contrast, one with a
P/E ratio of 50 would be considered overvalued.

4. PROFIT AND LOSS A/C STATEMENT:

Profit and loss (P&L) statement

refers to a financial statement that summarizes the revenues, costs, and
expenses incurred during a specified period, usually a quarter or fiscal
year. These records provide information about a company’s ability or
inability to generate profit by increasing revenue, reducing costs, or both.
P&L statements are often presented on a cash or accrual basis. Company
managers and investors use P&L statements to analyse the financial
health of a company. The P&L statement is one of three financial
statements that every public company issues on a quarterly and annual
basis, along with the balance sheet and the cash flow statement. It is
often the most popular and common financial statement in a business
plan, as it shows how much profit or loss was generated by a business.
 NOTES:

A profit and loss (P&L) account shows the annual net profit or

net loss of a business. It is prepared to determine the net profit or net loss
of a trader. The P&L account is a component of final accounts. A profit
and loss account is prepared to determine the net income (performance
result) of an enterprise for the year/period. This is the most significant
information to be reported for decision making.

Net income or net profit is calculated by charging all operating

expenses and by considering other incomes earned in the form of commission,
interest, rent, discounts, and fees. In fact, the profit and loss account is prepared
by following the accrual system of accounting, in which gross profit and
other operating incomes are credited and all operating expenses are debited.
 The resulting effect is either net profit or net loss. If the total amount
of gross profit and other operating incomes exceeds the operating expenses, the
difference is treated as net income or net profit. By contrast, if the total amount
of gross profit and other operating incomes is less than the operating expenses,
then the difference is treated as a net loss.

The following items usually appear on the debit and credit side of a profit and

loss account.

LEGAL ASPECT
DATA INTERPRETATION AND COLLECTION:
 Data interpretation refers to the process of using diverse
analytical methods to review data and arrive at relevant conclusions. The
interpretation of data helps researchers to categorize, manipulate, and
summarize the information in order to answer critical questions.

Data collection is the process of collecting and measuring the data on

targeted variables through a thoroughly established system to evaluate outcomes
by answering relevant questions. Data Analytics is a process that involves the
moulded data to be examined for interpretation to find out relevant information,
propose conclusions, and aid in decision making of research problems.

1. BALANCE SHEET OF MAHINDRA AND MAHINDRA

LAST 3 YEARS:

Balance sheet of Mar 2022 Mar 2021 Mar 2020

Mahindra and
Mahindra (in 12 months 12 months 12 months
Rs.Cr.)
Equities and
liabilities

Shareholders’
funds
Equity share
capital
Total share
capital
Reserves and
surplus
Total reserves
and surplus

Total
shareholders’
funds
Minority interest
Non-current
liabilities
Long term
borrowings

Deferred tax
liabilities [net]
Other long term
liabilities
Long term
provisions
Total non-
current liabilities
Current
liabilities
Short Term
Borrowings
Trade Payables
Other Current
Liabilities
Short Term
Provisions
Total current
liabilities
Total capital and
liabilities
Assets
Non-current
assets
Tangible Assets
Intangible Assets
Capital Work-In-
Progress
Fixed Assets
Non-Current
Investments
Deferred Tax
Assets [Net]
Long Term Loans
And Advances
Other Non-
Current Assets
Total non-
current assets
Current assets
Current
Investments
Inventories
Trade Receivables
Cash And Cash
Equivalents
Short Term Loans
And Advances
Other Current
Assets
Total current
assets
Total assets
Other additional
information

Contingent
liabilities
commitments
Contingent
Liabilities
Bonus details
Bonus Equity
Share Capital
Non-current
investments
Non-Current
Investments
Quoted Market
Value
Non-Current
Investments
Unquoted Book 3,524.46 3,35.68 3,268.564
Value
Current
 investments
Current
Investments
Quoted Market 9,535.50 7,324.28 5.677.26
Value
Current
Investments
Unquoted Book 1,315.04 2,708.39 618.30
Value

2. PROFIT AND LOSS A/C OF MAHINDRA AND MAHINDRA :

Profit & loss MARCH 2022 MARCH 2021 MARCH 2019

account of
Mahindra and
Mahindra.

(in Rs.Cr)
Income 56,336.39 44,296.95 44,897.93

Revenue from
operations
[GROSS]

Less 0.00 0.00 0.00

excise/service
tax/other levies
Revenue from 56,336.39 44,296.95 44,897.93
operations
[NET]
Total operating 57,445.97 45,040.98 45,487.78
revenues
Other income 2,075.90 1,221.31 1,667.81
TOTAL 59,521.87 46,262.29 47,155.59
REVENUE

EXPENSES
Cost of materials 40,506.15 25,035.89 22,873.74
consumed
Purchase of 2,374.82 6,817.12 8,349.36
stock in trade
Operating and 0.00 0.00 0.00
direct expenses
changes in -539.40 -240.00 409.49
inventories of
FG,WIP and
stock in trade
Employee 3,305.96 2,858.80 2,880.08
benefit expenses
Finance costs 223.00 370.88 113.23
Depreciation and 2,451.06 2,232.99 2,222.63
amortisation
expenses
Other expenses 4,902.14 4,176.98 5,384.59
TOTAL 53,077.74 41,138.74 42,025.58
EXPENSES
Profit/loss 6,444.13 5,123.55 5,130.01
before
exceptional,
extraordinary
items and tax
Exceptional -208.67 -3,663.27 -2,013.98
items
Profit/loss 6,235.46 1,460.28 3,116.03
before tax

Tax expenses
continued
operations
Current tax 1,084.54 1,235.63 996.98
Less:MAT credit 0.00 0.00 0.00
entitlement
Deferred tax 215.70 -44.01 788.50
Tax for earlier 0.00 0.00 0.00
years
Total tax 1,300.24 1,191.62 1,785.48
expenses
Profit/loss after 4,935.22 268.66 1330.55
tax and before
extraordinary
items
Profit/loss from 4,935.22 268.66 1330.55
continuing
operations
Profit/loss for 4,935.22 268.66 1,330.55
the period
Other
additional
information

Earnings per
share
Basic EPS (Rs) 41.28 2.25 11.16
Diluted EPS (Rs) 41.28 2.24 11.12
Value of
imported and
indigenious raw
materials
stores, spares
and loose tools
Imported raw 0.00 0.00 0.00
materials
Indiguous raw 0.00 0.00 0.00
material
Stores, spares
and loose tools
Imported store 0.00 0.00 0.00
and spares
Indigenous store 0.00 0.00 0.00
and spares
Dividend and
dividend
percentage
Equity share 1,087.79 292.15 1.187.33
dividend
Tax on dividend 0.00 0.00 0.00
Equity dividend 231.00 175.00 47.00
 rate (%)

3. CASH FLOW STATEMENT OF MAHINDRA AND MAHINDRA:

Cash flow of MARCH MARCH MARCH

Mahindra & 2022 2021 2020
Mahindra.

(in Rs.Cr)
NET PROFIT/LOSS 6,444.13 5,123.55 5,130.01
BEFORE
EXTRAORDINARY
ITEMS AND TAX
Net cash flow from 7,093.69 9,119.89 3,677.83
operating activities
Net cash used in -4,358.89 -14,563.81 -2,575.72
investing activities
net cash used from -2,885.19 3,859.82 -1,015.72
financing activities
Foreign exchange 0.07 -0.10 -0.72
gains/loses
Adjustments on 0.00 0.00 0.00
amalgamation merger
demerger other
Net Inc./Dec in cash -150.32 -1,584.20 85.93
 and cash equivalents
Cash And Cash 867.54 2,323.51 2,237.58
Equivalents Begin of
Year
Cash And Cash 717.22 739.31 2,323.51
Equivalents End Of
Year

4. RATIO ANALYSIS OF MAHINDRA AND MAHINDRA:

Key financial ratio of MARCH MARCH MARCH

Mahindra and 2022 2021 2020
Mahindra.

(in Rs. Cr)

PER SHARE RATIOS
Basic EPS (Rs) 41.28 2.25 11.16
Diluted EPS (Rs.) 41.28 2.24 11.12
Cash EPS (Rs.) 61.73 20.94 29.78
Book Value 325.60 288.77 288.91
[ExclRevalReserve]/Share
(Rs.)
Book Value 325.60 288.77 288.91
[InclRevalReserve]/Share
(Rs.)
Dividend / Share(Rs.) 11.55 8.75 2.35
Revenue from 480.08 376.98 381.28
Operations/Share (Rs.)
PBDIT/Share (Rs.) 76.20 64.68 62.58
PBIT/Share (Rs.) 55.72 45.99 43.95
PBT/Share (Rs.) 52.11 12.22 26.12
Net Profit/Share (Rs.) 41.24 2.25 11.15
PROFITABILITY
RATIOS
PBDIT Margin (%) 15.87 17.15 16.41
PBIT Margin (%) 11.60 12.19 11.52
PBT Margin (%) 10.85 3.24 6.85
Net Profit Margin (%) 8.59 0.59 2.92
Return on Net worth / 12.33 0.77 3.86
Equity (%)
Return on Capital 13.80 12.35 13.26
Employed (%)
Return on Assets (%) 7.35 0.45 2.63
Total Debt/Equity (X) 0.17 0.21 0.09
Asset Turnover Ratio (%) 0.91 75.58 90.07
LIQUIDITY RATIOS
Current Ratio (X) 1.38 1.34 1.38
Quick Ratio (X) 1.06 1.08 1.07
Inventory Turnover Ratio 8.23 11.39 13.38
(X)
Dividend Pay-out Ratio 22.04 108.74 89.23
(NP) (%)
Dividend Pay-out Ratio 14.72 11.67 33.41
(CP) (%)
Earnings Retention Ratio 77.96 -8.74 10.77
(%)
Cash Earnings Retention 85.28 88.33 66.59
Ratio (%)
VALUATION RATIOS
Enterprise Value (Cr.) 99,261.45 95,836.31 32,697.16
EV/Net Operating 1.73 2.13 0.72
Revenue (X)
EV/EBITDA (X) 10.89 12.40 4.38
Market Cap/Net 1.68 2.11 0.75
 Operating Revenue (X)
Retention Ratios (%) 77.95 -8.74 10.76
Price/BV (X) 2.47 2.75 0.99
Price/Net Operating 1.68 2.11 0.75
Revenue
Earnings Yield 0.05 0.00 0.04

DATA ANALYSIS:

 Balance sheet of Mahindra and Mahindra:

Balance sheet of Mar 2022 Mar 2021 Mar 2020
Mahindra and
Mahindra (in 12 months 12 months 12 months
Rs.Cr.)
Equities and
liabilities

Shareholders’
funds
Equity share
capital
Total share
capital
Reserves and
surplus
Total reserves
and surplus

Total
shareholders’
funds
Minority interest
Non-current
liabilities
Long term
borrowings

Deferred tax
liabilities [net]
Other long term
liabilities
Long term
provisions
Total non-
current liabilities
Current
liabilities
Short Term
Borrowings
Trade Payables
Other Current
Liabilities
Short Term
Provisions
Total current
liabilities
Total capital and
liabilities
Assets
Non-current
assets
Tangible Assets
Intangible Assets
Capital Work-In-
Progress
Fixed Assets
Non-Current
Investments
Deferred Tax
Assets [Net]
Long Term Loans
And Advances
Other Non-
Current Assets
Total non-
current assets
Current assets
Current
Investments
Inventories
Trade Receivables
Cash And Cash
Equivalents
Short Term Loans
And Advances
Other Current
Assets
Total current
assets
Total assets
Other additional
information

Contingent
liabilities
commitments
Contingent
Liabilities
Bonus details
Bonus Equity
Share Capital
Non-current
investments
Non-Current
Investments
Quoted Market
Value
Non-Current
Investments
 Unquoted Book 3,524.46 3,35.68 3,268.564
Value
Current
investments
Current
Investments
Quoted Market 9,535.50 7,324.28 5.677.26
Value
Current
Investments
Unquoted Book 1,315.04 2,708.39 618.30
Value

 Balance sheet of Honda private company:

BALANCE SHEET OF HONDA MARCH MARCH MARCH
INDIA POWER PRODUCTS 2022 2021 2020
LIMITED.

(In Rs. Cr)

EQUITIES AND LIABILITIES

SHAREHOLDERS FUNDS
Equity share capital
TOTAL SHARE CAPITAL
Reserves and surplus
TOTAL RESERVES AND
SURPLUS
TOTAL SHAREHOLDERS
FUNDS
NON CURRENT LIABILITIES
Long Term Borrowings
Deferred Tax Liabilities [Net]
Other Long Term Liabilities
Long Term Provisions
TOTAL NON CURRENT
LIABILITIES

CURRENT LIABILITIES
Short Term Borrowings
Trade Payables
Other Current Liabilities
Short Term Provisions
TOTAL CURRENT
LIABILITIES
TOTAL CAPITAL AND
LIABILITIES
ASSETS

NON CURRENT ASSETS

Tangible Assets
Intangible Assets
Capital Work-In-Progress
Other Assets
FIXED ASSETS
Non-Current Investments
Deferred Tax Assets [Net]
Long Term Loans And Advances
Other Non-Current Assets
TOTAL NON CURRENT
ASSETS

CURRENT ASSETS
Current Investments
Inventories
Trade Receivables
Cash And Cash Equivalents
Short Term Loans And Advances
Other Current Assets
TOTAL CURRENT ASSETS

TOTAL ASSETS
OTHER ADDITIONAL
INFORMATION

CONTINGENT
LIABILITIES,COMMITMENTS
Contingent Liabilities
CIF VALUE OF IMPORTS
Raw Materials
Stores, Spares And Loose Tools
Trade/Other Goods
Capital Goods
EXPENDITURE IN FOREIGN
EXCHANGE
Expenditure In Foreign Currency
REMITTANCES IN FOREGIN
CURRENCIES FOR
DIVIDENDS
Dividend Remittance In Foreign
Currency
EARNING IN FOREIGN
EXCHANGE
FOB Value Of Goods
Other Earnings
BONUS EARNING
Bonus Equity Share Capital
NON CURRENT
INVESTMENTS
Non-Current Investments Quoted
Market Value
Non-Current Investments Unquoted
Book Value
CURRENT INVESTMENTS
Current Investments Quoted Market
 Value
Current Investments Unquoted
Book Value

 PROFIT AND LOSS ACCOUNT OF MAHINDRA AND

MAHINDRA:

Profit & loss MARCH 2022 MARCH 2021 MARCH 2019

account of
Mahindra and
Mahindra.

(in Rs.Cr)
Income 56,336.39 44,296.95 44,897.93

Revenue from
operations
[GROSS]

Less 0.00 0.00 0.00

excise/service
tax/other levies
Revenue from 56,336.39 44,296.95 44,897.93
operations
[NET]
Total operating 57,445.97 45,040.98 45,487.78
revenues
Other income 2,075.90 1,221.31 1,667.81
TOTAL 59,521.87 46,262.29 47,155.59
REVENUE

EXPENSES
Cost of materials 40,506.15 25,035.89 22,873.74
consumed
Purchase of 2,374.82 6,817.12 8,349.36
stock in trade
Operating and 0.00 0.00 0.00
direct expenses
changes in -539.40 -240.00 409.49
inventories of
FG,WIP and
stock in trade
Employee 3,305.96 2,858.80 2,880.08
benefit expenses
Finance costs 223.00 370.88 113.23
Depreciation and 2,451.06 2,232.99 2,222.63
amortisation
expenses
Other expenses 4,902.14 4,176.98 5,384.59
TOTAL 53,077.74 41,138.74 42,025.58
EXPENSES
Profit/loss 6,444.13 5,123.55 5,130.01
before
exceptional,
extraordinary
items and tax
Exceptional -208.67 -3,663.27 -2,013.98
items
Profit/loss 6,235.46 1,460.28 3,116.03
before tax

Tax expenses
continued
operations
Current tax 1,084.54 1,235.63 996.98
Less:MAT credit 0.00 0.00 0.00
entitlement
Deferred tax 215.70 -44.01 788.50
Tax for earlier 0.00 0.00 0.00
years
Total tax 1,300.24 1,191.62 1,785.48
expenses
Profit/loss after 4,935.22 268.66 1330.55
tax and before
extraordinary
items
Profit/loss from 4,935.22 268.66 1330.55
continuing
operations
Profit/loss for 4,935.22 268.66 1,330.55
the period
Other
additional
information

Earnings per
share
Basic EPS (Rs) 41.28 2.25 11.16
Diluted EPS (Rs) 41.28 2.24 11.12
Value of
imported and
indigenious raw
materials
stores, spares
and loose tools
Imported raw 0.00 0.00 0.00
materials
Indiguous raw 0.00 0.00 0.00
material
Stores, spares
and loose tools
Imported store 0.00 0.00 0.00
and spares
Indigenous store 0.00 0.00 0.00
and spares
Dividend and
dividend
percentage
Equity share 1,087.79 292.15 1.187.33
dividend
 Tax on dividend 0.00 0.00 0.00
Equity dividend 231.00 175.00 47.00
rate (%)

 PROFIT AND LOSS ACCOUNT OF HONDA PRIVATE

COMPANY:

Profit & loss account of Honda MARC MARC MARC

India power products limited. H 2022 H 2021 H 2020

(in Rs. Cr)

INCOME 1,136.38 922.67 832.04

REVENUE FROM OPERATIONS

[GROSS]
Less: Excise/Service Tax/Other Levies 0.00 0.00 0.00
REVENUE FROM OPERATIONS 1,136.38 922.67 832.04
[NET]
TOTAL OPERATING 1,156.29 938.94 848.64
REVENUES
Other Income 16.84 14.53 15.76
TOTAL REVENUE 1,173.13 953.47 864.40
EXPENSES
Cost Of Materials Consumed 651.65 496.16 522.75
Purchase Of Stock-In Trade 94.72 56.81 71.18
Operating And Direct Expenses 0.00 0.00 0..00
Changes In Inventories Of FG,WIP -14.40 55.04 -91.62
And Stock-In Trade
Employee Benefit Expenses 117.40 101.40 114.36
Finance Costs 0.48 0.28 0.30
Depreciation And Amortisation 18.52 20.26 22.08
Expenses
Other Expenses 204.70 151.38 139.29
TOTAL EXPENSES 1,073.07 887.33 778.34
PROFIT/LOSS BEFORE 100.06 66.14 86.06
EXCEPTIONAL,EXTRAORDINA
RY ITEMS AND TAX
Exceptional Items 0.00 0.00 4.37
PROFIT/LOSS BEFORE TAX 100.06 66.14 86.06
TAX EXPENSES CONTINUED
OPERATIONS
Current Tax 26.50 18.26 24.99
Less: MAT Credit Entitlement 0.00 0.00 0.00
Deferred Tax -0.97 -0.79 -1.08
Tax For Earlier Years 0.00 0.00 0.00
TOTAL TAX EXPENSES 25.53 17.47 23.91
PROFIT/LOSS AFTER TAX AND 74.53 48.67 66.52
BEFORE EXTRAORDINARY
ITEMS
PROFIT/LOSS FROM 74.53 48.67 66.52
CONTINUING OPERATIONS
PROFIT/LOSS FOR THE PERIOD 74.53 48.67 66.52
OTHER ADDITIONAL
INFORMATION

EARNING PER SHARE

Basic EPS (Rs.) 73.48 47.99 65.58
Diluted EPS (Rs.) 73.48 47.99 65.58
VALUE OF IMPORTED AND
INDIGENIOUS RAW
MATERIALS STORES,SPARES
AND LOOSE TOOLS
Imported Raw Materials 0.00 0.00 0.00
Indigenous Stores And Spares 0.00 0.00 0.00
 DIVIDEND AND DIVIDEND
PERCENTAGE
Equity Share Dividend 10.14 12.68 10.14
Tax On Dividend 0.00 0.00 2.08
Equity Dividend Rate (%) 150.00 100.00 125.00

FINDING OF MAHINDRA AND MAHINDRA:

Based on the data gathered by administrating schedules to customers the

following observations are made.

1. Mahindra bolero has excellent percentage of customer satisfaction.

2. Most of the people are satisfied with is low maintenance cost and after
sales service provided by Mahindra bolero.

3. Based on the fuel consumption, most of the people are satisfied with it.

4. Based on safety and comfort, design, spaces, maintenance most of the

people are satisfied with it.
5. Large numbers of bolero user are aware of its power steering.

6. If we took the satisfaction level of people towards bolero, it becomes

good.

7. Its features and style satisfy most of the people.

RECOMMANDATIONS OF MAHINDRA AND

MAHINDRA:
 The automobile industry has been facing a difficult time since the
beginning of FY13. Utility Vehicles (UVs) and Light Commercial Vehicles
(LCVs) are the only segments in the industry that have been performing well.
One of the companies that has a stronghold in both these segments is Mahindra
& Mahindra (M&M). We had recommended this company in Dalal Street
Investment Journal Vol. 27, Issue # 19 (dated September 9, 2012). At that point,
it was trading at a price of Rs 783 per share. Our bases of recommendation were
the company’s presence in almost all the segments of the automobile industry,
its robust performance in the buoyant segments, as also the potential value
unlocking of its subsidiaries.

Although there has been no value unlocking so far and the performance of
two-wheelers and trucks continues to lag, the outperformance in UVs and LCVs
has boosted the overall results. We captured this trend perfectly, and since our
recommendation the stock prices have gone up by 23.72 per cent.