A STUDY ON FINANCIAL PERFORMANCE OF

MAHINDRA FINANCE COMPANY

A summer internship report submitted in partial fulfillment of the requirement for the degree of

MASTERS OF BUSINESS ADMINISTRATION

(2023-2025)
To
PUNJABI UNIVERSITY, PATIALA

Submitted by: Submitted to:

Rahul Pal: Mrs. Meenakshi Mam
MBA IInd Year Assistant Professor
University Roll No.: Baba Farid College of
Mgt. & Tech.

BABA FARID COLLEGE OF MANAGEMENT & TECHNOLOGY

BATHINDA

1
 DECLARATION

I undersigned Rahul Pal student of MBA 3rd semester declare that I have done the project on “A STUDY ON
FINANCIAL PERFORMANCE OF MAHINDRA FINANCE COMPANY.” has been personally done by
me under the guidance of Prof. Mrs. Meenakshi, Bareilly in partial fulfillment of MBA Program- during
academic year 2017-19. All the data represented in this project is true & correct to the best of my knowledge &
belief.

I also declare that this project report is my own preparation and not copied from anywhere else.

Date 03-06-2024

Rahul Pal

2
 ACKNOWLEDGEMENT

Summer training is the time when a student gets exposure to field life.one can visualize the various activities
taking place at various units. Every effort requires initiation, inspiration guidance & help at every step. So, I
want to express my sincere & deep gratitude to those who helped me to make this training a great learning
experience.
I am highly thankful to Mrs. Jyotirmoy Bhattacharya (Senior HR Manager) for allowing me to undergo
summer training in this organization. My special & sincere thanks are reserved for my training guide Mr.
Harshit Sharma (Deputy Manager) for his timely guidance and encouragement.
I am sincerely thankful to all the officers & staff of VPL who helped me with utmost cooperation and patience.
I am also gratefully acknowledged to Meenakshi mam for supported me throughout this project and provide
guidance whenever I needed.

Date: 03-06-2024
Place: Bathinda

3
 TABLE OF CONTENT

Chapter No. Chapter Page No.

Executive Summary 5

1. 1.Introduction 7-23

2.Objective Of study
2. 24-30

3.Research Methodology
3. 31-36

4.Data Analysis and Interpretation

4. 37-41

5.Findings, Suggestions & Conclusion

5. 42-43

Bibliography 44

4
Executive Summary:

This study examines how Mahindra and Mahindra, a major company in India with interests in automotive,
farm equipment, aerospace, and finance, is performing financially. We analyse key financial indicators like
profitability, liquidity, efficiency, and solvency over a specific period. Using both numbers and explanations,
we aim to understand the company's financial health, identifying its strengths, weaknesses, opportunities, and
threats in the ever-changing business environment. Additionally, we explore external factors influencing
Mahindra and Mahindra's financial performance, such as market trends, competition, economic conditions, and
strategic decisions. The study's insights are expected to help stakeholders make informed decisions regarding
investment, strategy, and risk management.
Key words: Liquidity ratio, Profitability ratio.

Mahindra & Mahindra (M&M) is a prominent Indian conglomerate with a diverse portfolio encompassing
automotive, farm equipment, aerospace, and financial services. This study aims to evaluate the company's
financial health by analysing key financial ratios over a specified period. By examining profitability, liquidity,
efficiency, and solvency metrics, we seek to identify strengths, weaknesses, opportunities, and threats (SWOT)
that influence M&M's financial performance. Additionally, the study will explore external factors such as
market trends, competition, and economic conditions to provide a comprehensive understanding of the
company's financial position.

Financial Ratio Analysis

Profitability Ratios: These ratios measure M&M's ability to generate profit from its operations. Key ratios
include:
Gross profit margin: Assesses the profitability of core operations.

Operating profit margin: Measures profitability after operating expenses.

Net profit margin: Indicates overall profitability after all expenses.
Return on equity (ROE): Evaluates the return generated for shareholders.
Return on assets (ROA): Measures the efficiency of asset utilization in generating profit.
Liquidity Ratios: These ratios assess M&M's ability to meet short-term obligations. Key ratios include:
Current ratio: Measures the company's ability to pay short-term debts with current assets.
Quick ratio (acid-test ratio): Indicates the company's ability to meet short-term obligations without relying on
inventory.
Efficiency Ratios: These ratios evaluate how efficiently M&M utilizes its assets and manages its operations.
Key ratios include:

Inventory turnover ratio: Measures the efficiency of inventory management.

5
Accounts receivable turnover ratio: Assesses the efficiency of collecting receivables.
Asset turnover ratio: Indicates the efficiency of asset utilization in generating sales.
Solvency Ratios: These ratios assess M&M's long-term financial stability and ability to meet long-term
obligations. Key ratios include:
Debt-to-equity ratio: Measures the proportion of debt-to-equity financing.
Interest coverage ratio: Indicates the company's ability to meet interest payments.

6
 CHAPTER 1

INTRODUCTION TO THE ORGANIZATION,

INDUSTRY AND THE PROBLEM

7
INTRODUCTION:

Mahindra and Mahindra Limited is a global automobile producing enterprise located in Mumbai. It was
founded in 1945 as Mahindra & Mohammed, then renamed Mahindra & Mahindra. M&M, formed as portion
of the Mahindra Group, is one of India's leading automobile manufacturers worldwide in terms of production.
Mahindra Financial Services offers an all-encompassing solution for all of your economic requirements. It
began operations on 1991. Mahindra Finance Pvt Ltd. has been authorized with the central bank of India as a
securities financing company. Finance involves the management of an immense amount of money. It is widely
referred to as the art of wealth. The study's main objective is to assess the overall profitability of the Mahindra
& Mahindra company, along with its financial position, income, and expenditure. The tool utilized in this
investigation. This study employs ratio analysis as its primary tool for financial analysis, aiming to identify
both the financial strengths and weaknesses of the firm under study. This process represents the final step in
the accounting process, culminating in the presentation of precise and definitive data that aids business
managers in their decision-making. The analysis includes an examination of key financial performance
indicators such as the current ratio, debt-equity ratio, and quick ratio.

This project is about the investment preference of the customers in fixed deposit and mutual fund. These are
the investment instrument which bears comparatively low risk and gives higher and sometimes moderate
return. There are a large number of Banks and other financial institutions which provide these investment
facilities. In investors point of view this report will be beneficial in terms of providing information that
between these instruments which investment will cover less risk of sinking of invested fund and generate more
return. In this study the analysis of various institutions has done which will help the investor to stand on right
choice. In company point of view this report will help in terms of providing the information that how much
population is aware about these instruments and how many are interested in investment through these
instruments. Accordingly, company can plan their promotional activities, promote their existing schemes and
plan their future products. This will help company to formulate new market policies and launching new
products in market. This will provide competitive benefit to the company in market. This report includes the
sufficient information about company, existing products of company, performance of company and its
products, relative comparison of Mutual Fund and Fixed Deposit, relative comparison of investment products
of this company and other companies in the market. This report also includes the recommendations and
suggestions in order to increase marketing efficiency of the company.

8
WHAT IS BANKING
A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits
into lending activities, either directly by loaning or indirectly through capital markets. A bank is the connection
between customers that have capital deficits and customers with capital surpluses. Learn the simple and
concise

definition of banking. The definition of banking varies from country to country and in this example, we are
trying to define banking in most simple and generic terms.

The banking industry is a dynamic and significant component to individuals, corporates, small and medium
businesses, national and global, economic, socio and financial well-being. This industry cultivates financial
relationships with customers of all sizes to supply financial products and services that stimulate economic
growth, and act as a catalyst to national and global economics. The industry players produce a variety of
services from savings accounts to home and business loans and mortgages, and from fund mobilization to
handling global mergers and acquisitions. This industry is sensitive to regulatory, technological, and economic
factors and has its own share of challenges largely attributable to these factors. New developing economies are
changing the global landscape of economic wealth and economic instruments and banking industry is adapting
very fast to provide new generation of innovative banking products and services. Banking industry is adopting
unique strategies to overcome these challenges and move forward to deliver financial objectives to people and
organizations.

According to banking regulation act 1949- “Banking is accepting of deposits for the purpose of
lending and investing from the people or public which are repayable on demand or otherwise and withdrawal
by cheque draft and otherwise.”

Banking Industry
A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits
into lending activities, either directly by loaning or indirectly through capital markets. A bank is the connection
between customers that have capital deficits and customers with capital surpluses.
Due to their influence within a financial system and the economy, banks are highly regulated in most countries.
Most banks operate under a system known as fractional reserve banking where they hold only a
small reserve of the funds deposited and lend out the rest for profit. They are generally subject tominimum
capital requirements which are based on an international set of capital standards, known as the Basel Accords.
Banking in its modern sense evolved in the 14th century in the rich cities of Renaissance Italy but in many
ways was a continuation of ideas and concepts of credit and lending that had its roots in the ancient world. In
the history of banking, a number of banking dynasties have played a central role over many centuries.

9
HISTORY OF BANKING-
Banking in the modern sense of the word can be traced to medieval and early Renaissance Italy, to the rich
cities in the north like Florence, Lucca, Siena, Venice and Genoa. The Bardi and Peruzzi families dominated
banking in 14th century Florence, establishing branches in many other parts of Europe. One of the most
famous Italian

banks were the Medici Bank, set up by Giovanni di Bucci de' Medici in 1397. The earliest known state deposit
bank, Banco di San Giorgio (Bank of St. George), was founded in 1407 at Genoa, Italy.

The oldest bank still in existence is Monte Dei Paschi di Siena, headquartered in Siena, Italy, which has been
operating continuously since 1472. It is followed by Berenberg Bank of Hamburg (1590) and Sverige’s of
Sweden (1668).

The origins of banking can be traced to ancient times, starting with rudimentary money lending and bartering
practices for agricultural and other commodities. But it gained great momentum only after industrial revolution
which commenced in Europe in the 17 th century, when Europeans started establishing colonies around the
world and the need for credit for trade was felt like never before.
Ever since bank started operating, their essential mode of operations remained much the same until late into
20th century. But the arrival of Internet in 1990s changed all that. A plethora of possibilities emerged for
worldwide commerce, which naturally impact the functioning of banks as well. Even now, technology
evolution shape the nature and extent of global economic activity and continuous to fundamentally alter the
global banking landscape.

BANKING IN INDIA-
In India, banking as an institution originated in the late 18 th century and primarily catered to needs of the
British. Post-independence, the nationalization of major private sector banks in 1969 – an important milestone
in Indian banking system – made banking accessible to the unbanked population in India.
The economic liberalization in early 1990s ushered in the era of privatization wherein new private banks – the
‘new generation tech-savvy banks’ – were launched. A few foreign banks commenced their India operation as
well. All these banks were quick to leverage emerging technology, were competitive in wooing them over by
providing professional services. This helped infuse a sense of urgency in public sector banks and older private
sector banks to mend their ways, which in turns completely revitalized banking operation in India.
India’s banking sector is growing at a fast pace. It has become one of the most preferred banking destinations
in the world. Indian markets provide growth opportunities, which are unlikely to be matched by the mature
banking markets around the world. FICCI conducted a survey to analyze the potential offered by Indian
10
Banking System and achievement of global competitiveness by Indian banks.

Some of the major strengths of the Indian banking industry, which have helped mark its place on the global
banking scene as highlighted by our survey respondents were Regulatory Systems (84.21%), Economic
Growth Rate (63.15%), Technological Advancement (52.63%), Risk Assessment Systems (47%) and Credit
Quality

(42.1%)
Some of the areas that need to be geared up for future growth, identified by the survey respondents are
Diversification of markets beyond big cities (84.2%), HR Systems (63.15%), Size of banks (52.63%) High

Transaction Costs (47.3%), Banking Infrastructure (42%) and Labour Inflexibilities (42%).
To a question on achieving global competitiveness, Consolidation in the financial sector has emerged to be the
most significant measure required to create world class banking system followed by Strict Corporate
Governance Norms, Regional Expansion, Higher FDI limits and FTA’s.
To a question on achieving global competitiveness, Consolidation in the financial sector has emerged to be the
most significant measure required to create world class banking system followed by Strict Corporate
Governance Norms, Regional Expansion, Higher FDI limits and FTA’s.

NBFC-Non-Banking Financial Company

Non-bank financial companies (NBFCs) are financial institutions that provide banking services without
meeting the legal definition of a bank, i.e. one that does not hold a banking license. These institutions are not
allowed to take deposits from the public. Nonetheless, all operations of these institutions are still exercised
under bank regulation. However, this depends on the jurisdiction, as in some jurisdictions, such as New
Zealand, any company can do the business of banking, and there are no banking licenses issued. If an
organisation in New Zealand intends to describe itself as a bank and intends to use the word bank in its title it
must first receive approval and official registration and thus licence from the nation's central bank, the Reserve
Bank of New Zealand.

NBFCs offer most sorts of banking services, such as loans and credit facilities, private education funding,
retirement planning, trading in money markets, underwriting stocks and shares, TFCs (Term Finance
Certificate) and other obligations. These institutions also provide wealth management such as managing
portfolios of stocks and shares, discounting services e.g. discounting of instruments and advice on merger and
acquisition activities. The number of non-banking financial companies has expanded greatly in the last several
years as venture capital companies, retail and industrial companies have entered the lending business. Non-
bank institutions also frequently support investments in property and prepare feasibility, market or industry
studies for companies.

11
However, they are typically not allowed to take deposits from the general public and have to find other means
of funding their operations such as issuing debt instruments.

Mahindra & Mahindra Financial Services

Company History -
We were incorporated on January 1, 1991 as Maxi Motors Financial Services Limited
and received 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.
On October 2nd, 1945, Mahindra & Mohammed was set up as a franchise for assembling

jeeps from Willys, USA.

Two years later, Mahindra & Mohammed changed its name to Mahindra & Mahindra.
Ghulam Mohammed migrated to Pakistan post-partition and became the first Finance
Minister of Pakistan. Mahindra and Mahindra started trading steel on behalf on European
suppliers. In 1955, Mahindra and Mahindra were converted to a public limited company.
Soon after that the Mahindra tools division started. After the formation of Mahindra
tools,
Mahindra Engineering and Chemical products was formed. In 1983, M&M led the Indian
tractor segment. Post that incident they formed a joined venture with British
Telecommunications to form Mahindra British Telecom.

Keshab Mahindra was made the Chairman of Mahindra in 2007 from the post of Vice-
Chairman and Managing Director. Mahindra has total revenues of US 12.5 billion dollars
and employs more than 1,19,900 people around the world. The company has coverage in
the vehicles market, the tractor market, information technology as well as significant
present in financial services, leisure and hospitality.

MMFSL’s rural financing is considered as the cornerstone of poverty reduction, rural

development and inclusive growth in many parts of the country. With a majority of our
country’s population living in rural India, their loans to over 10,00,000 customers
belonging to the low-income groups have proved to be a catalyst in helping rural India
surge ahead in a big way.

12
Financials: -

F-2011 F-2010 F-2009

Total Income 2,01,258 1,56,880 1,38,446
Profit after Tax 46,311 34,271 21,452
Earnings per share 47.85 35.75 22.46
Basic (Rs.)

13
 MAHINDRA FINANCE

TYPE PUBLIC COMPANY

TRADED AS NSE: M&MFIN

BSE: 532720

INDUSTRY FINANCE

FOUNDED 1991

HEADQUARTERS MUMBAI, MAHARASHTRA , INDIA

AREA SERVED INDIA

KEY PEOPLE BHARAT N DOSHI, CHAIRMAN

U Y PHADKE, DIRECTOR
RAMESH IYER, MD

PRODUCTS FINANCIAL SERVICES

REVENUE 27,945.9 MILLION (US$480 MILLION) (2012)

TOTAL ASSETS 18,5615.6 MILLION (2012)

TOTAL EQUITY 1026.9 MILLION (2012)

EMPLOYEES 9,700+ (2012)

PARENT MAHINDRA GROUP

 MAHINDRA INSURANCE BROKERS LIMITED

SUBSIDIARIES
 MAHINDRA RURAL HOUSING FINANCE
WEBSITE MAHINDRAFINANCE.COM

Corporate Profile
In 1945, Mahindra assembled the Willys Jeep in India and is now a US $7.1 billion Indian multinational. The
total workforce caps at 1,11,900 people in over 100 countries and the company is a leader in utility vehicles,
tractors and information technology, with a significant and growing presence in financial services, tourism,
infrastructure development, trade and logistics. Mahindra’s headquarters are in Mumbai India.

14
Mahindra is among the top tractor brands in the world. It sells everything from two-wheelers to CVs, UVs,
SUVs and the sedan. Mahindra recently acquired a majority stake in REVA Electric Car Co Ltd. (now called
Mahindra

REVA), strengthening its position in the Electric Vehicles domain.

Tech Mahindra acquired the leading global business and information technology services company, Satyam
Computer Services. The company is now known as Mahindra Satyam.
Mahindra is also one of the few Indian companies to receive an A+ GRI checked rating for its first
Sustainability Report for the year 2007-08 and has also received the A+ GRI rating for the year 2008- 09.

Financial Service
The necessity of a financial base for the groups' operations led to the foray into financial services through
Mahindra Finance and its subsidiaries. Together, a cluster of these companies forms the Trade and Financial
Services Sector of the Mahindra Group.

Mahindra & Mahindra Financial Services Ltd (Mahindra Finance) is one of India's leading non-banking
finance companies focused on providing finance for utility vehicles, tractors and cars in the rural and semi-
urban sector. Mahindra Finance currently has the largest network of over 436 branches all over India. It has
entered into more than 600,000 customer contracts and has disbursements of around Rs. 21000 crores since
inception.

Mahindra Rural Housing Finance Ltd (MRHFL) is a wholly owned subsidiary of Mahindra & Mahindra
Financial Services (MMFSL). It has been set up with an objective of meeting the housing finance needs of the
rural/semi urban customers across the country.

Company Founder(s)
Mahindra & Mahindra was founded by two brothers - Jagdish Chandra Mahindra & Kailash Chandra
Mahindra. KC Mahindra went to the United States of America as Chairman of the India Supply Mission. He
met Barney Roos, inventor of the rugged 'general purpose vehicle' or Jeep and had a flash of inspiration:
wouldn't a vehicle that had proved its invincibility on the battlefields of World War II become ideal for India's
rugged terrain, he thought. The Mahindra brothers joined hands with Ghulam Mohammed to become a
franchise for assembling jeeps from Willy, USA. In the North Indian city of Ludhiana in Punjab, Jagdish
Chandra Mahindra was born.

The eldest of nine children, he lost his father at an early age. He believed strongly in education and made sure
that his brothers and sisters studied hard. Jagdish Chandra studied at Veermata Jijabai Technological Institute

15
(VJTI) Mumbai, one of India's premier engineering and technical institutes. JC’s first stop job was with Tata
Steel as the senior Sales Manager from 1929 to 1940.

KC Mahindra was also born in Punjab. KC studied at the Government College, Lahore and Cambridge, UK.
When he graduated from Cambridge, Mr. Sachin Anda Sinha, Vice Chancellor of Patna University, introduced
him to Mr. R.N. Mukherjee, Senior Partner of Messrs. Martin & Company. He started editing the monthly
magazine INDIA and the Hindustan Review.

KC moved to Bombay with his brother JC in 1946 to found Mahindra & Mohammed. Under his leadership as
Chairman, Mahindra & Mahindra established itself as a major car player in the Indian market. He also served
as Director of RBI, Air India, and Hindustan Steel and Chairman of Indian Aluminum Company.
JC died in 1951 while KC died in 1963.

(a) Mahindra has seven auto manufacturing facilities

 Ligature (Engine Plant)

 Haridwar (3-wheeler / GiO plant)
 Kandivli (utility vehicles)
 Nasik (utility vehicles)
 Chakan
 Zaheer Abad (LCVs & 3 wheelers)
 Completely Knocked Down Unit Plants in Egypt and Brazil

Section I.02
Section I.03 Recognition

Anand Mahindra won the Qimpro Platinum Standard (Business) 2008 award for excellence in business
practices.

Mahindra Holidays & Resorts India Limited (MHRIL) won the CNBC AWAAZ Travel Award for its
Lakeview Resort, Munnar. The award was received in the category of ‘Best Resort for Health and
Rejuvenation.’ Ulrich Wolffram, Head of Operations of MHRIL received the award.

Mahindra was felicitated with the 'Brand Communicator of the Year' at the 9th Asia Pacific PR Award. The
award was received by Roma Balwani, head of corporate communications of Mahindra and Mahindra.

16
Mahindra & Mahindra was awarded the ICSI National Award for Excellence in Corporate Governance for the
year 2008 at a function held in Vigyan Bhawan, New Delhi. The award is for companies which follow the
highest

standards of corporate governance and best practices which are worthy of notice. The Institute of Company
Secretaries of India (ICSI), a premier professional body has been set up under an Act of Parliament to develop
and regulate the profession of Company Secretaries. The award was received by Arun Nanda, Executive
Direcotr of Mahindra and Mahindra Limited. There were many jury members present at the award ceremony.

International Operations
Mahindra and Mahindra have been connected globally since its founding in 1945. It has a setup in North
America, South America, Europe, Middle East, Africa, Asia and Australia.
In the US market Mahindra works with Caterpillar and John Deere and GE. The company also helps American
companies to source materials from India. The company also consults various other consulting companies from
the Silicon Valley.

The company also works with agribusiness and farm equipment, automotive, components, consulting services,
energy and IT. The company sells tractors in China, and also sells fresh products to South East Asia. They also
help Bangladesh and Nepal with generator sets so that there is supply of power at the homes in these countries
improving the standard of living at home.

Mahindra Finance offers-

 Personalized Service- We believe in providing personalised service and individual attention to each client
to ensure that we understand their investment goals and help them achieve it.
 Professional Advice- We offer expert advice on equity and debt portfolios with an objective to provide
consistent long-term return while taking calculated market risks. Our approach helps our clients build a
proper mix of products, and not concentrate on just one individual product. Hence, serving their long-term
objectives in the best way.
 Long-term Relationship- We believe that long-term vision is the only means to steady wealth creation.
However, to achieve this one also needs to take advantage of short-term market opportunities while not
losing sight of long-term objectives. Hence, we partner all our clients in realising their long-term vision.
 Personalised Service- We believe in providing personalized service and individual attention to each client
to ensure that we understand their investment goals and help them achieve it.
 Professional Advice- We offer expert advice on equity and debt portfolios with an objective to provide
consistent long-term return while taking calculated market risks. Our approach helps our clients build a

17
 proper mix of products, and not concentrate on just one individual product. Hence, serving their long-term
objectives in the best way.

 Long-term Relationship- We believe that long-term vision is the only means to steady wealth creation.
However, to achieve this one also needs to take advantage of short-term market opportunities while not
losing sight of long-term objectives. Hence, we partner all our clients in realising their long-term vision.
 Access to Research Reports- We provide our clients with access to the expert opinion of economists and
analysts from CRISIL, one of the leading financial research and rating companies of India. This is because,
we believe that unbiased research is the key to providing sound advice in making informed investment
decisions.
 Transparency and Confidentiality- Our clients receive regular portfolio statements from us via email. They
can also view the detailed performance of their investment portfolio on the web, the access to which is
restricted to the client only. Moreover, our monitoring system enables us to detect any unauthorised access
to the portfolio.
 Flexibility- To facilitate smooth dealing and consistent attention, all our clients are by their individual
Relationship Executives. Relationship Executives provide you with completely hassle-free, customised
services taking care of all the administrative aspects of your investments. This includes submission of
application forms to fund houses and a monthly report on the overall performance of your investment
portfolio.

Company History -

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

and received 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.

On October 2nd, 1945, Mahindra & Mohammed was set up as a franchise for assembling
jeeps from Willys, USA. Two years later, Mahindra & Mohammed changed its name to
Mahindra & Mahindra. Ghulam Mohammed migrated to Pakistan post-partition and
became the first Finance Minister of Pakistan. Mahindra and Mahindra started trading
steel on behalf on European suppliers. In 1955, Mahindra and Mahindra were converted
to a public limited company. Soon after that the Mahindra tools division started. After the
formation of Mahindra tools, Mahindra Engineering and Chemical products was formed.
In 1983, M&M led the Indian tractor segment. Post that incident they formed a joined
venture with British Telecommunications to form Mahindra British Telecom. Keshab
Mahindra was made the Chairman of Mahindra in 2007 from the post of Vice-Chairman
18
and Managing Director. Mahindra has total revenues of US 12.5 billion dollars and
employs more than 1,19,900 people around the world. The company has coverage in the
vehicles market, the tractor market, information

technology as well as significant present in financial services, leisure and hospitality.

Company Background

Mahindra and Mahindra Financial Services Limited is one of India’s leading non-
banking finance companies. Through a vast network of branches, they provide
personalized finance for the widest range of utility vehicles, tractors and cars, focusing on
the rural and semi-urban sector.

MMFSL’s rural financing is considered as the cornerstone of poverty reduction, rural

development and inclusive growth in many parts of the country. With a majority of our
country’s population living in rural India, their loans to over 10,00,000 customers
belonging to the low-income groups have proved to be a catalyst in helping rural India
surge ahead in a big way.

Financials: -

F-2011 F-2010 F-2009

Total Income 2,01,258 1,56,880 1,38,446

Profit after Tax 46,311 34,271 21,452
Earnings per share 47.85 35.75 22.46

Basic (Rs.)

MAHINDRA FINANCE
Type Public company
Traded as NSE: M&MFIN
BSE: 532720
Industry Finance
Founded 1991
Headquarters Mumbai, Maharashtra, India

19
 Area served India
Key people Bharat N Doshi, Chairman
U Y Phadke, Director
Ramesh Iyer, MD
Products Financial services
Revenue 27,945.9 million (US$480 million) (2012)
Total assets 18,5615.6 million (2012)

Total equity 1026.9 million (2012)

Employees 9,700+ (2012)
Parent Mahindra Group
Subsidiaries  Mahindra Insurance Brokers Limited
 Mahindra Rural Housing Finance

Website MahindraFinance.com

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.”

Board of Directors

} Bharat N Doshi Chairman

1
2 } Uday Y Phadke Director
3 } Dhananjay Mungale Director
4 } Manohar G Bhide Director
5 } Piyush Mankad Director
6 } Ramesh Iyer Managing Director
7 } Rama Bijapurkar Director
8 } Arnavaz M Pardiwala Company Secretary
9 } Pawan Kumar Goenka Director

20
Credit Rating – FAAA by Crisil (indicates highest safety). The Credit Rating Information Services of India
Limited (CRISIL). The rating provides an independent assessment of an entity's current performance and an
expectation on its "balanced value creation and corporate governance practices" in future. The bank was
assigned a 'CRISIL GVC Level 1' rating in January 2007 which indicates that the bank's capability with respect
to wealth creation for all its stakeholders while adopting sound corporate governance practices is the highest.

CREDIT RATING

Competitors of Mahindra & Mahindra Financial Services Limited-

6 Month - 1-2 2-3 3-5 Above 5

Name Of Bank 1 Year Years Years Years years
8.50-
Axis Bank 7.50% 8.75% 8.75% 8.75% 8.50%
Bank Of 7.30 - 8.75-
Baroda 7.75% 8.75% 8.75% 8.90% 8.75%
8.75-
Bank of India 8.00% 9.00% 9.00% 9.00% 9.00%
Bank of 7.50- 9.00- 9.00-
Maharashtra 8.50% 9.10% 9.00% 9.10% 9.00%
7.25- 9.00- 8.75-
Canara Bank 8.50% 9.10% 9.00% 9.00% 9.00%
7.75% 8.75% 8.50% 8.50%
Central Bank 9.00-
21
 Of India 9.15%
Corporation 8.75-
Bank 9.00% 9.00% 9.00% 9.00% 8.75%
8.75- 8.75-
Dena Bank 8.50% 9.00% 9.25% 9.00% 9.00%

Development 8.75-
Credit Bank 6.75% 9.00% 9.30% 8.75% 8.75%
DhanLaxmi 8.50- 8.50-
Bank 8.75% 9.25% 9.00% 9.00% 9.00%
7.50- 8.00-
HDFC Bank 8.00% 8.75% 8.75% 8.75% 8.25%
7.00- 7.50-
ICICI Bank 7.25% 9.00% 8.75% 8..75% 8.50%
8.65- 8.75- 8.50-
IDBI Bank 8.75% 9.00% 9.00% 9.00% 8.75%
Indian
Overseas Bank 8.50% 9.00% 9.00% 9.00% 9.00%
ING Vysya 8.70% 9.25% 9.25% 9.00% 8.50%

Kotak 8.50- 8.75-

Mahindra Ban 9.00% 9.00% 9.00% 8.75% 8.50%

Oriental Bank
of Commerce 8.50% 9.00% 9.00% 9.00% 9.00%
State Bank Of
India 6.50% 8.75% 8.75% 8.75% 8.75%
7.75- 8.50-
Syndicate Bank 9.00% 9.00% 8.00% 8.00% 8.00%
The Federal 7.00-
bank 8.50% 9.00% 9.00% 8.75% 8.75%
Union Bank of 8.75-
India 8.50% 9.00% 9.00% 9.00% 9.25%

S.W.O.T. ANALYSIS OF MAHINDRA FINANCE

22
STRENGTHS
Mahindra Finance has advantage of brand name of Mahindra &Mahindra Group. Mahindra Finance has large
asset base of Rs.5000 crores. It has large distribution channels with 350 branches all over the nation. Company
has large financial base as its IPO was subscribed 26.88 times.

 Mahindra Finance is leading company in NBFCs.

 Mahindra Finance has advantage of brand name of Mahindra & Mahindra Group.
 The credit rating of this company is very high.
 It has CRISIL FAAA credit rating.
 There are lot of branches in India.
 The main advantage is that Mahindra Finance has many types of products which help the financial
sector.
 Customers typically rebel against price increases by switching to competing products, but if a company
has pricing power, customers will continue using Mahindra finance’s products and services.
 Superior technology allows Mahindra finance to better meet the needs of their customers in ways that
competitors can’t imitate.
 A strong supply chain helps Mahindra finance obtain the right resources from suppliers and delivery
the right product to customers in a timely manner.
 Financial leverage allows Mahindra finance to use their balance sheet to expand their business and
increase their profits.
 Lower costs lead to higher profits for Mahindra finance. A low-cost leader can undercut rivals on
price.
 Mahindra finance only needs to target new customers in order to grow their business.

WEAKNESSES
Mahindra Finance provides advisory service and they do not have share broking facility which competitors
have. Mahindra Finance is not known to the people. Mahindra Finance does not make advertisement of its
product.

 A tarnished reputation can hurt Mahindra finance’s brand in the eyes of a consumer.
 A tarnished reputation can hurt Mahindra finance’s brand in the eyes of a consumer.
 A lack of scale means Mahindra finance’s cost per unit of output is very high Increasing volume,
while maintain quality, would help reduce those costs.
 Weak customer service hurts Mahindra finance’s reputation and causes customers to flee to
competitors, who are more respondent.

23
  Bad acquisition can hurt Mahindra finance by increasing their costs and reducing the value of their
combined businesses.
 A weak brand means Mahindra finance can’t charge the same prices for goods and services as their
competitors, because consumers don’t value the brand.

OPPORTUNITIES
Mahindra Finance has entered into mutual fund distribution which is growing as per Indian market
development. Automobile sector in India is growing as foreign companies entering in India which is useful for
Mahindra Finance as it provides vehicle loans. Mahindra Finance helps individuals in making financial
planning which is most profitable in as investment trend is changing in India.

 Fragmented markets provide many opportunities for Mahindra finance to expand and increase market.
 Leveraging the balance sheet allows Mahindra finance to quickly expand into other markets.
 The online market offers Mahindra finance the ability to greatly expand their business. Mahindra.
 Greater innovation can help Mahindra finance to produce unique products and services that meet.
 New services help Mahindra finance to better meet their customer’s needs.
 New technology helps Mahindra finance to better meet their customer’s needs with new and improved.
 New products can help Mahindra finance to expand their business and diversity their customer base.

THREATS
The biggest threat for Mahindra Finance in the market is new entry of foreign non-banking financial
institutions. In case of vehicle financing company has tough competition from large banks like State Bank of
India, ICICI etc.

 A bad economy can hurt Mahindra finance’s business by decreasing the number of potentials.
 The availability of substitute products hurts Mahindra finance’s ability to raise prices.
 Consumers can change their tastes very quickly.
 Politics can increase Mahindra finance’s risk factors, because governments can quickly change.
 Changes to government rules and regulations can negatively affect Mahindra finance.
 Intense completion can lower Mahindra finance’s profits, because competitors can entice consumers.

24
REVIEW OF LITERATURE:

Dr. W. Saranya (2022) Analyzed about “A Study on Financial Performance on Mahindra and
Mahindra Company” The study wants to check how Mahindra & Mahindra is handling its working capital
over time and suggests a plan for checking it thoroughly (audit program). To understand the company's
financial health, they use a tool called ratio analysis. This tool helps reveal important things like how much
profit the company is making, if it can quickly pay its debts, how efficiently it uses its resources, and if it's
financially stable in the long run. This way, the study helps the company make smart decisions based on its
financial situation.

Professors Mr. S. Muruganantham and Mr. S. Arun (2021) Analyzed about “A study on financial
performance of Mahindra and Mahindra company” This study is all about checking how Well Mahindra
& Mahindra is doing. It looks at everything the company earns and spends, what it owns, and what it owes,
presented in profit & loss and balance sheet formats. This helps the company make decisions and understand
its finances. To do this, they used a method called ratio analysis, which involves looking at different ratios
like how quickly they can turn assets into cash (liquidity), how much profit they’re making (profitability),
and how efficiently they’re using their resources (activity). It’s like using these ratios to get a clear picture of
how healthy the company’s finances are.

Hardik S Joshi and Dr. Ashwin Purohit (2018) Analyzed about “Profitability analysis of Mahindra
and Mahindra” The automotive sector is like the powerhouse for driving economic. Growth in a country.
Indian vehicle makers are spreading their influence globally and have done well in international competition.
However, there are still challenges holding them back from expanding fully. Mahindra and Mahindra, a
major player in India’s vehicle manufacturing, holds a significant market share. The study looks at Mahindra
and Mahindra’s financial statements, focusing on how much profit the company is making. The analysis
shows

that the company has the potential for significant growth, despite having a somewhat inconsistent track
record. To become a global leader, the key is to provide the right support-politically, environmentally, and
economically to the company in the coming years. In simpler terms, it’s about understanding how well

Mahindra and Mahindra are doing financially and how it can grow even more with the right kind of support.

Dr. Keval K. Shah (2018) Analyzed about “A Profitability analysis of financial performance of
Mahindra logistics and VRL logistics” In this study, we analyse the financial Statements of Mahindra
Logistics and VRL Logistics to understand how well these companies have performed. We use ratio analysis
25
and a statistical tool called t-test to evaluate their financial performance over the last three years. Ratios such
as PBDIT, PBIT, PBT, Return on Capital Employed, and Return on Assets are calculated to gauge the
efficiency of their finances during this period. The t-test is employed to compare the actual data with that of
another company in the same industry, determining if there is a significant difference between their
averages. This helps us draw conclusions about the relative financial strength and performance of Mahindra
Logistics and VRL Logistics.

CHAPTER 2
OBJECTIVES OF STUDY

26
OBJECTIVES OF THE STUDY:

 To identify the liquidity position of the Mahindra and Mahindra company.

 To determines the profitability of the Mahindra and Mahindra company

Objective 1: To identify the liquidity position of the Mahindra and Mahindra company.

Elaboration: This objective aims to assess Mahindra & Mahindra's ability to meet its short-term financial
obligations. By analysing liquidity ratios, the study will determine:
 The company's capacity to convert assets into cash to meet current liabilities.
 The sufficiency of working capital to support day-to-day operations.
 The potential risks associated with insufficient liquidity.

Objective 2: To determine the profitability of the Mahindra and Mahindra company.

Elaboration: This objective seeks to evaluate Mahindra & Mahindra's financial performance and its ability to
generate profits. By calculating profitability ratios, the study will:
 Measure the company's efficiency in generating profits from its operations.
 Assess the company's return on investment for shareholders.
 Identify trends in profitability over time.
 Compare Mahindra & Mahindra's profitability with industry benchmarks.

TOOLS AND TECHNIQUES OF FINANCIAL STATEMENT

There are numerous procedures which might be utilized for examining the budget reports.
These strategies might be delegated pursues.

ACCOUNTING TECHNIQUES: -
Accounting methods tool which may use for financial analysis are many such as comparative statement
analysis, ratio analysis, trend analysis, value added analysis, common size statement analysis etc. The clients
get the techniques to suit their seamier. The bookkeeping procedures which are intended to be utilized for the
examination of finance reports.

1) RATIO ANALYSIS:

The gauge the monetary state and execution of a venture the money related investigator needs sure under sticks
cone at such rustics every now and again utilized is a proportion or list, seating two pieces at budgetary
information to each other's. Proportions, as an apparatus at monetary administration, can be expressed as (a)
rate, (b) part, and (c) an expressed correlation between numbers.
As per batty, the term “accounting ratios” is utilized to portray imperative relationship which occur between
figures uncovered in monetary record, in a benefit and misfortune account, in a budgetary controller,
27
framework, or in some other chronicled at the bookkeeping association

Financial ratios can be isolated into specific classes on the premise at the things which are utilized for
proportions. Four sorts at financial proportion are ordinarily utilized

Liquidity ratios
1. Activity ratios and Leverage ratios
2. Profitability ratios

2) COMMON SIZE STATEMENT:

The basic size articulations are known as segment rate proclamations or know as part rate proclamations or
vertical explanations. In this method, the aggregate Resources or liabilities and the figure or net deals are taken
equivalent to one hundred and the rates at individual things are determined linsey.
In the regular size pay articulation, the net deals are relied upon to be 100% and different things are expressed,
as a rate at deals. In like manner in the basic size monetary record the all-out resources as absolute liabilities
are expected to be100% and different things at resources and liabilities are conveyed as a rate at this aggregate.

Formula = (analysis amount / base amount of total assets) x 100%

COMPARATIVE STATEMENT ANALYSIS

Examination at budget summaries for at least two years is another's methods utilized in breaking down
information similar fiscal summaries are explanations at money related position at a business so planned as o
position at a business so sear as to give time viewpoint to the thought at different components at budgetary
setting exemplified in such articulations for this rationale the asset report and benefit and misfortune the
monetary record and benefit and misfortune account are make in near structure, relative proclamations might
be made to appear.

 Entire data (rupee amount or money values)


 •Rise or decline in absolute data in terms at percentages

 Rise or decline in absolute values data in terms at money values.

FINANCIAL ANALYSIS PROCESS

IDENTIFY THE INDUSTRY ECONOMIC FEATURES

To begin with, choose a regard chain examination for the business—the chain of activities related with the
advancement, with the development, assembling and conveyance of the company's items as well as
administrations. Techniques models Porter's Five Forces or investigations of financial properties are commonly
utilized in this progression.

28
2. IDENTIFY COMPANY STRATEGIES

Next, look at the kind of the thing/organization being offered by the firm, incorporates the uniqueness of thing,
measurement of pay edges, and generation of brand steadfastness and control of costs. Moreover, factors, for
instance, stock system compromise; geographic widening and industry augmentation should be considered.

3. ASSES THE VALUE OF THE FIRM'S FINANCIAL STATEMENTS

Review the key spending outlines inside the setting of the reasonable accounting models. In researching money
related record accounts, issues, for instance, affirmation, valuation and portrayal are keys to proper evaluation.
The focal request should be whether this bookkeeping report is a completed depiction of the affiliation's
budgetary status. While surveying

the pay explanation, the focal issue is to appropriately assess the idea of benefit as a complete depiction of the
affiliation's money related execution. Appraisal of the declaration of cash streams helps in understanding the
effect of the affiliation's liquidity position from its assignments, hypotheses and money related activities over
the period—fundamentally, where spares began from, where they went, and how the general liquidity of the
firm was affected.

4. ANALYSE PRESENT PROFITABILITY AND RISK

This is the place financial experts can really incorporate an impetus in the valuation of the
firm and its spending reports. The most conventionally examination gadgets are key monetary rundown extents
associating with liquidity, asset the officials, profitability, and commitment the board/incorporation and
peril/exhibit valuation. Concerning efficiency, there are two far reaching request to be requested: how helpful
are the techniques of the firm regarding its advantages—free of how the firm subsidizes those focal points—
and how productive is the firm from the viewpoint on the esteem speculatorsit is fundamental to examine any
financial report extents by and large, seeing at the present extents in association with those from earlier periods
or as for various affiliations or industry midpoints.

5. PREPARE ESTIMATED FINANCIAL STATEMENTS

Despite the fact that normally testing, budgetary professionals must make reasonable assumptions about the
inevitable destiny of the firm (and its industry) and choose how these doubts will affect both the cash streams
and the financing. This routinely shows up as expert forma spending rundowns, in perspective on procedures,
for instance, the percent of offers approach.

6. VALUE THE FIRM

While there are various valuation approaches, the most notable is a kind of diminished salary technique. These
cash streams could be as foreseen benefits, or progressively through and through techniques, for instance, free
cash streams to either the esteem holders or on affiliation premise. Diverse systems may join using related
valuation or accounting based evaluations, for instance, budgetary regard notwithstanding.

29
ADVANTAGES OF EFFECTIVE ANALYSIS
 Demonstrate the money related feasibility of a business adventure. Enables you to build a model of
how you may perform monetarily if certain procedures, occasions and plans are completed.

 Allow you to manage your business right way and assume responsibility for your income.

 Identifies potential dangers and money shortages to keep the business out of the budgetary
inconveniences.

 Allows you to quantify the genuine money related activity of the business against the investigation
monetary arrangement and make alteration were vital.

 Provides an estimation of future money needs and whether extra private value or getting is essential.
 Provides a standard against which to quantify future execution.

STATEMENT ANALYSIS –USERS

•CREDITORS:
Anyone who has advanced assets to an association is excited about its capability to pay back the commitment,
in this manner will effort on a couple of pay measures.

•MANAGEMENT:
The association controller makes an on-going examination of the association's budgetary outcomes,
particularly in association with different operational estimations that are not seen by outside components.

•REGULATORY BODIES:
If an association is transparently held, its spending rundowns are inspected by the Securities and Exchange
Commission to check whether its declarations conform to the numerous accounting measures & the principles
of the SEC.

•INVESTORS:
Both present and inevitable theorists look at spending outlines to get some answers regarding an association's
ability to keep issuing benefits, or to make salary, or to continue creating at its past rate.

30
STATEMENT OF THE PROBLEM:

The project focuses on conducting a comprehensive financial analysis of Mahindra and Mahindra company,
covering its performance over a five-year period from 2018 to 2022. This analysis aims to evaluate the
correlation between financial statements, assess the company's competitive position within its industry, and
examine the effectiveness of its financial strategies and investments. Additionally, the study aims to identify
key financial challenges or risks faced by Mahindra and Mahindra. Through this analysis, a detailed review
of the company's financial performance will be conducted.

LIMITATIONS OF THE STUDY:

 The date used in this study was secondary data.

 This study is limited to only five-year time period (2018-2022).
 It does not cover any non-financial data which have some impact on financial analysis on the whole.
 The statement that are studied are historical past cannot be the index for future estimation.

31
 CHAPTER 3
RESEARCH METHODOLOGY

32
RESEARCH METHODOLOGY:

This study relies on secondary data collected over a five-year period from 2018 to 2022 to evaluate the
financial performance of Mahindra and Mahindra. The main approach used is ratio analysis, which involves
examining various financial ratios such as current ratio, quick ratio, operating Profit ratio to assess the
company's financial position. Additionally, ratios like operating ratio, net profit ratio, are utilized to analyse
the firm's profitability. This methodology allows for a comprehensive understanding of Mahindra and
Mahindra's financial health and performance during the specified timeframe.

DATA SOURCE:

Secondary data: source of secondary data is collected from magazines, websites and articles.

RESEARCH DESIGN-
A Research Design is the arrangement of conditions for collection and analysis of data in a manner that aims to
combine relevance to the research purpose with economy in procedure. Infact, the research design is the
conceptual structure within which the research is conducted. This research was descriptive in nature.
I proposed to first conduct a intensive secondary research to understand a the full impact and implication of the
industry, to review and critique a industry, norms and reports, on which certain issue shall be selected, which I
feel remain unanswered or liable to change, this shall be further taken up in the next stage of exploratory
research. This stage shall help me to restrict and select only the important questions and issue. Which inhabit
growth and segmentation in the industry.
There are various stages to solve the research problem as shown in following program:

33
DESCRIPTIVE RESEARCH-
The research undertaken was descriptive research as it was concerned with specific predictions, with narration
of facts and characteristics concerning Fixed Deposits Product provided by Mahindra & Mahindra Financial
Services Ltd.

SAMPLING DESIGN-
The following factors have been decided within the scope of sample design:

Sample Size- A Sample of minimum respondents was selected from the Jalandhar Region. An effort was made
to select respondents evenly. The survey was carried out on 50 respondents.

Sample Unit- In this project sampling unit consisted of the various individuals, businessman and services.

Sampling Technique- For the purpose of research Convenient Sampling Technique was used.

Sampling Frame- It consisted of various sources from where information about the respondent is extracted.
Mainly personal links, customers of Mahindra Finance and common people are used for getting information
about the respondents.

DATA COLLECTION AND ANALYSIS- There were 2 types of data sources used in this research. These
were: -

SECONDARY DATA-It is the data collected for already being used or published information like Journals,
Magazines, Research Papers, Internet, Books etc. In this research project secondary source used were various
journals, research papers, Books etc.

In this project report, the secondary data was given to me by mentor. It contains a list of 238 AMFI certified
peoples in Jalandhar.

PRIMARY DATA-It is the data collected for the first time from the source and never have been used earlier.
The data can be collected through interviews, observations and questionnaires. In this project, an appropriate
questionnaire was designed which was filled by the customers of Mahindra Finance, the investors and others
people who want to invest their money. In this project report, the primary data has been collected through the
questionnaires which helped in the analysis and the interpretation part.

Contact Method:

Personal approach to each and every customer for all surveys and interviews was the contact method used for
obtaining a proper and detailed feedback. A face-to-face interaction took place with each sample representative.

The data collected through questionnaire was properly classified and tabulated in the form of a report. These
reports formed the basis for the comparative analysis and drawing inferences there from. From the inferences
drawn certain conclusions and recommendations were made.
34
 Field Work:

The fieldwork was conducted for a period of 15 to 20 days.

Mahindra and Mahindra finance brand awareness:

People are aware of Mahindra Finance but somewhere it is lacking due to its less rate of interest than
“SHRIRAM” and fast FD processing like “HDFC”, Mahindra and Mahindra finance have very good reputation
in the minds of the customers and mostly the people know Mahindra and Mahindra is a good reputed
company.So people are very well aware of this brand rather than its product.

Distribution channel of Mahindra and Mahindra finance ltd:

The Mahindra and Mahindra finance have a very large network of distribution channel. They have some tie up
with some large broking companies. Who work as principal brokers/ agents to the fixed deposit scheme. The
name of that companies are as follows.
1. JM financial services private ltd.
2. RR investors capital services pvt ltd.
3. ICICI securities ltd.
4. Karvy stock broking ltd.
5. Bajaj capital.
6. Integrated enterprises (India) ltd.
7. ING financial service pvt ltd.
8. HDFC securities
9. Kotak securities
10. Stock holding corporation of India ltd.
11. Brokers and sub-brokers

Investment pattern of Mahindra and Mahindra financial service ltd:

Mahindra and Mahindra finance investment pattern in which they deal are as follows.
1. Fixed deposit
2. Mutual fund distribution
3. Personal loan
4. vehicle loan (utility vehicles, commercial vehicles, tractors, cars, two-wheelers and used vehicles)
5. Auto loan
6. Refinancing
7. Housing finance
8. SME financing
9. Insurance broking
10. Loan against gold
35
 11. Construction equipment loan

LIMITATIONS
1. NOT A SUBSTITUTE OF JUDGEMENT
An examination of fiscal report can't occur of quality choice. It is just a way to achieve ends/results. At last,
the choices or judgment are taken by a participated individual or examiner on his/her knowledge and
expertise.

2. BASED ON HISTORICAL DATA

Just past data of bookkeeping data is combined into the finance reports, which are dissected. The future cannot

be much the same as past. Consequently, the study of fiscal reports can't give a
premise to planning, upcoming gauge, foreseeing, and arranging.

3.PROBLEM IN COMPARABILITY
The measure of business concern is changing as per the volume of exchanges. Hence, the figures of various
budget reports lose the normal for similarity.

4.RELIABILITY OF FIGURES
Some of the time, the segments of the fiscal summaries are changed by window dressing. Provided that this is
true, the examination of budget summaries results in false or inane.

5. DIFFERENT PROCEDURES OF ACCOUNTING AND FINANCING

The end heap of rough material is resolved at purchase cost. The end heap of finished things is a motivation at
market cost or cost esteems whichever is less. At the point when all is said in done, the end stock is regarded at
expense or market esteem whichever less is. It suggests that the end heap of unrefined material is regarded at
expense or market esteem whichever less is. So; an expert should keep in view these concentrations while
making examination and illumination by and large the results would bamboozle.

6. CHANGE IN ACCOUNTING METHODS

There should be uniform accounting techniques and frameworks for number of years. In case there are
ordinary changes, the fig of different periods will be unprecedented and uncommon. In such a case, the
examination has no regard and sense.

7. CHANGES IN THE VALUE OF MONEY

The procuring impact of money is diminished from one year to other year on account of extension.
It produces issues in relative examination of monetary outlines of different years.

36
8. LIMITATIONS OF THE TOOLS APPLICATION FOR ANALYSIS
There are diverse instruments utilized by an investigator for an examination. Despite the fact that, the use of a
specific instrument or procedure depends on the aptitude and routine with regards to the examiner. In the
event that an inadmissible gadget or strategy is connected, absolutely, the outcomes are misdirecting.

9. NO VALUATION OF MANAGERIAL ABILITY

The aftereffects of the investigation of fiscal reports ought not to be taken as an suggestion of fortunate or
unfortunate administration. Subsequently, the administrative capacity can't be estimated by examination.

10. CHANGE OF BUSINESS SITUATION

The circumstances and conditions of one firm can never be like another firm. Also, the business condition and
conditions of one year to resulting can never be comparable. Subsequently, it is hard for investigation and
correlation of one firm with another.

37
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

38
HOW TO WRITE A COMPANY S FINANCIAL ANALYSIS?

Composing an organization's money related examination can be important to decide if to put resources into the
organization. There is no particular strategy for doing as such and introduction styles with shift, yet key
segments ought to be incorporated into any budgetary examination. Simply after cautiously updating every one
of the segments can an end be drawn with respect to the organization's monetary wellbeing and execution?

ANALYTICAL TOOLS:
FINANCIAL RATIOS:
1. Liquidity ratios (current ratio, quick ratio)
2. Profitability ratios (operating profit ratio, operating ratio, net profit ratio)

ANALYSIS AND INTERPRETATION:

1. LIQUIDITY PERFORMANCE:
a) CURRENT RATIO:

Year Current assets Current labilities Current Ratio

2017-2018 16,474.47 13,323.21 1.24
2018-2019 18,071.06 14,334.07 1.26
2019-2020 15,141.49 10,972.82 1.38
2020-2021 20,312.30 15,133.17 1.34
2021-2022 25,917.70 18,820.29 1.38

INTERPRETATION:

According to the Mahendra and Mahendra company, the current ratio has been maintained between the
thumb rule of 2:1. Although, the current asset is higher than the current liabilities for 5 years, the company
has to give more attention to maintain stable liquidity. The ratio is quite satisfactory.

39
 b) QUICK RATIO:

Liquid Assets Current labilities

Year Quick Ratio
2017-2018 13,772.78 13,323.21 1.03
2018-2019 14,231.79 14,334.07 0.99
2019-2020 11,740.58 10,972.82 1.07
2020-2021 16,356.83 15,133.17 1.08
2021-2022 20,034.85 18,820.29 1.06

INTERPRETATION:
The company has maintained good ratios during 2018-19. The company needs to concentrate on current
liabilities as it exceeds the quick assets for continuous 3 years. Although the ratio is nearer to satisfactory i.e.
thumb rule of 1:1. The company has in need of improving their position.

2. PROFITABILITY RATIOS:
a) OPERATING PROFIT RATIO:

Operating profit
Operating profit Sales
Year
Ratio

2017-2018 6,224.00 48,686 12.78

2018-2019 6,640.00 53,614 12.38

2019-2020 5,798.00 45,488 12.75

2020-2021 6,957.00 44,630 15.59

2021-2022 7,027.00 57,787 12.16

40
 3. PROFITABILITY RATIOS:
b) OPERATING PROFIT RATIO:

Operating profit
Operating profit Sales
Year
Ratio

2017-2018 6,224.00 48,686 12.78

2018-2019 6,640.00 53,614 12.38

2019-2020 5,798.00 45,488 12.75

2020-2021 6,957.00 44,630 15.59

2021-2022 7,027.00 57,787 12.16

INTERPRETATION:
Typically, operating profit ratio of about 20% is considered as good and below 5% is low. The company has
shown stable value in 2017, 2018 and 2019 as 12% and increased value in the very next year 2020 as 15.6%.
But in 2021- 2022 the value decreased to the stable value of 12%, the operating profitability of the company
is not good and it has maintained same ratios for years. The ratio is not satisfactory.

c) OPERATING RATIO:

Operating profit
100 Operating profit
Year
Ratio
2017-2018 100 12.78 87.22
2018-2019 100 12.38 87.62
2019-2020 100 12.75 87.25
2020-2021 100 15.59 84.41
2021-2022 100 12.16 87.84

INTERPRETATION:
The ideal level of Operating Ratio is between 60% to 80%; Although the lower, the better it is. The
company is showing operating ratio between 80% to 90% for the past five years. During the post and pre-era
of covid- 19, the company failed to maintain proper operative decision and management as the ratios
interpreted. While comparing the years, the Mahendra and Mahendra company is overall not doing good and
it has to focus on building good operative management.

41
 d) NET PROFIT RATIO:

Year Net Profit Sales Net Profit Ratio

2017-2018 4,356.01 48,685.55 8.95

2018-2019 4,796.04 53,614.00 8.95

2019-2020 1,330.55 45,487.78 2.93

2020-2021 248.46 45,040.98 0.55

2021-2022 4,935.22 57,445.97 8.59

INTERPRETATION:
The table shows that there is a net decrease in Net profit margin from 2017(8.95) to 2021(0.55). So, the
profitability of Mahendra and Mahendra company has actually decreased from 2017, 2018, 2020 and 2021.
The higher ratio implies the better profitability. When covid-19 is at the peak, in that period, the company
does not balance good ratio but it has increased from 0.55 to 8.59 in the very next year of 2022. As the profit
fluctuates through the years, the net profitable ratios need to be improved.

42
 CHAPTER 5

FINDINGS, SUGGESTIONS AND CONCLUSION

43
FINDING OF THE STUDY:

1. The current ratio has to be maintained at 2:1. Mahendra and Mahendra company show the variability
in their ratios as it is also affected by pandemic. While comparing the years, the ratio is quite
satisfactory. The satisfactory convention of quick ratio is considered as 1:1 and the ratios of the
company does meet the required level of satisfaction. Here, the company is better in quick liquidity.
2. The ideal ratio of operating profit ratio is 20%, when compared to 5 years, the company has
maintained a low profit level due to its worst operational management. A relatively low operating
ratio is indicated as good. While analysing the company, it is not good at managing operating
expenses for 5 years as it shows more than ideal percentage. High net profitability makes the M&M
company more efficient because of high sales. It decreased over the years but managed to overcome
after 2020- 2021.

My Woking Experience in Mahindra & Mahindra Financial Services Ltd.

My working experience in this kind of organization is very good because before joining this organization I was
feeling not so good because I was not familiar with this kind of organizational environment and I did not know
that how this organization runs. But when I joined this company, I was assigned, we can say the whole
department of Fixed Deposit of Jalandhar city. Because there is not any separate department of FD in the city
so in this 2 month, I was the person who was handling each and everything regarding fixed deposit so it was a
very big achievement for me. My parents have their own FDs in banks but at that time I was not aware about
fixed deposit but after this internship and by practical knowledge I came to almost all the aspects of FD.

On the first day I was feeling so nervous when the data was provided to me for calling. But when I started
doing this it was started becoming interested for me because every day I made calling to different persons and
in the evening, I met out of those people who were interested for Fixed Deposit or Empanelment.

As the rightly said we learn something from everything, same as I have learned so many things in these 2
months e.g. professional ethics how to talk on phone, how to take appointments from client, how to deal with
them, how to behave when somebody insults about your product, we can say how to show patience to clients.
These all things would definitely help me in my career.

On the starting days it was so difficult to deal with a customer because now a days all persons analyze each
and everything before investing into any type of investment, so then I searched about its competitors and their
rates and ratings so before reading that data I started visiting clients so that I should have enough knowledge to
keep my product different from its competitors, and solve the queries of clients.

SUGGESTION OF THE STUDY:

Over the past five years, Mahindra and Mahindra's financial position has been inconsistent, highlighting the
need for improvement. To enhance stability, the company should prioritize increasing net sales to boost
profitability. A thorough comparison of performance over this period can pinpoint areas where sales growth
is critical for financial health. Despite a slight improvement in liquidity, Mahindra and Mahindra could
further optimize its current assets for greater efficiency. Additionally, managing operating expenses is
44
pivotal for enhancing operational management quality. Implementing cost-control strategies can lead to
improved

financial performance and increased competitiveness. Therefore, it is essential for Mahindra and Mahindra
to prioritize measures such as boosting sales, optimizing assets, and effectively managing expenses to
strengthen its financial position.

CONCLUSION:

Efficient financial management is crucial for enterprise success, and assessing a company's financial
performance over time is essential. Mahendra and Mahendra's financial analysis over five years highlights
strengths and weaknesses, particularly in liquidity and profitability. The company demonstrates a strong
liquidity position, indicating its ability to meet short-term obligations comfortably. This suggests effective
financial planning and management. In terms of profitability, Mahendra and Mahendra has maintained a net
profitable position, showcasing its ability to generate returns on investments. However, the company faces
challenges in establishing a strong market position due to internal operational and sales management issues.
These challenges hinder the company's competitiveness and market appeal. Despite its financial strengths,
Mahendra and Mahendra must address these internal deficiencies to enhance overall performance and
market position. In conclusion, while Mahendra and Mahendra excel in liquidity and profitability, improving
operational efficiency and sales management is critical for sustained success and market growth.

Mahindra and Mahindra have very high market share. The company is offering good services which
reflected on the satisfaction of the customers. Mahindra and Mahindra providing better facility than the
other.
 On the first mostly the people are preferring FD with good rate of interest rather than any other
scheme So Mahindra is competing with two organizations in the terms of Fixed Deposit, these are
HDFC Bank (Because of CRISIL FAAA rating) and
Shriram Transport Finance Ltd. (Because of Higher rate of interest)
 The second thing I have found that brokers are not so willing to sell this product because of less
interest rates as compared to its customers.
 In the city like Jalandhar, as one of the major cities of state Punjab, does not have any FD department,
which is resulting the problem for those who are ready to invest in FD
 Another thing is found that some people are still stuck with govt. banks for their investment.

To conclude we can say that people prefer more branded and variety of products with good rate of interest.
Customers also feel that there should be proper customer service. As customer satisfaction plays a vital role,
it has to be concentrated on seriously. The report reveals that there is huge scope for the growth of organized
retailing. The main factor that affects the business is location.They seek value for money so also matter for
customers to focus mainly on the service part. The reason for which people prefer to buy from organized and
45
reputed company’s’ product available under one roof and customer has not to move to other as it has its
department in Amritsar, Ludhiana, Patiala and Chandigarh but not in local branch.

BIBILOGRAPHY:

1. Hardik S Joshi and Dr. Ashwin Purohit (2018) Analyzed about “Profitability analysis of Mahindra
and Mahindra”. Andra GARI Publisher, Vol 04, Issue: 06, pp: 76-84, ISSN 2424-6492, ISBN 978-
955- 7153-00-1, (2018).
2. Professors Mr. S. Muruganantham and Mr. S. Arun “A study on financial performance of Mahindra
and Mahindra company” EPRA International Journal of Environmental Economics, Commerce and
Educational Management Journal DOI: 10.36713, ISSN: 2348-814X, Vol: 8, Issue:7 (July 2021)
3. Dr. Keval K. Shah “A Profitability analysis of financial performance of Mahindra logistics and VRL
Logistics” International Journal of Research in Humanities and social sciences, Vol:6, Issue: 1,
ISSN:
(P) 2347-5404 ISSN: (0)2320771X,2018
4. Dr. W. Saranya Analyzed about “A Study on Financial Performance on Mahindra and Mahindra
Company” IJSART (ONLINE), Vol: 8, Issues 6, pp: 24-27, ISSN: 2395-1052 (2022)
5. Shubhra Johri," Mergers & Acquisitions: An insight into Value Creation and Post Merger Synergies
"Pacific Business Review International Vol.6, No. 9, March 2014.
6. www.wikipedia.com
7. www.mahindra.com
8. www.fincover.com
9. www.thehindubusinessline.com
10. www.mahindrafinance.com

46
Questionnaire
Name: - ………………………………………………………….
Address: - ………………………………………………………….
Age: - …………………………………… Sex: - M/F
Marital Status: - Married/Single
Contact No.: - ………………………………….
Q.1 How many bank accounts do you have?
Ans. …………………………………………………..
Q.2 What type of Account do you have in this bank?
Ans. ………………………………………………......
Q.3 How many of your family members have bank account here?
Ans. …………………………………………………..
Q.4 What other services do you take from bank?
Ans. …………………………………………………...
Q.5 What do you prefer: -
Internet Banking Over the counter banking
Q.6 Have you ever avail the loan facility from this bank?
Yes No
Q.7 What is the purpose of borrowing a loan?
Ans. …………………………………………………..
Q.8 How did you come to know about the other services offered by bank?
Ans. …………………………………………………..
Q.9 Are you Satisfied with the services of the bank?
Ans. …………………………………………………..
Q.10. Any suggestions for your end for the bank?
Ans. ……………………………………………………

47