Mahindra And Mahindra

Project On:

MAHINDRA & MAHINDRA Submitted To:

Professor Mrs Vani Kamath Submitted By:

Kavita Bagayatkar MBA - IB Roll No:09

Anand Mahindra to Co-Chairman

CORE PURPOSE

'We don't have a group-wide mission statement. Our Core Purpose is what makes all of us want to get up and come to work in the morning.'

- Anand G. Mahindra

Indians are second to none in the world. The Founders of our nation and of our Company passionately believed this. We will prove them right by believing in ourselves and by making Mahindra & Mahindra Limited known world-wide for the quality of its products and services.

CORE VALUES Our Core Values are influenced by our past, tempered by our present, and will shape our future. They are an amalgam of what we have been, what we are and what we want to be.

Good Corporate Citizenship As in the past, we will continue to seek long term success, which is in alignment with our country's needs. We will do this without compromising ethical business standards.

Professionalism We have always sought the best people for the job and given them the freedom and the opportunity to grow. We will continue to do so. We will support innovation and well reasoned risk taking, but will demand performance.

Customer First We exist and prosper only because of the customer. We will respond to the changing needs and expectations of our customers speedily, courteously and effectively.

Quality Focus Quality is the key to delivering value for money to our customers. We will make quality a driving value in our work, in our products and in our interactions with others. We will do it 'First Time Right'. Quality is the key to delivering value for money to our

Dignity of the Individual We will value individual dignity, uphold the right to express disagreement and respect the time and efforts of others. Through our actions, we will nurture fairness, trust and transparency. These values are the compass that will guide our actions, both personal and corporate.

Mahindra Group Achieving New Milestones

Globalization : Present across Five Continents

Mahindra Group : A US$ 6.7 B Indian conglomerate with interests across the economic spectrum • • • • • • • •

Automotive Sector Infrastructure Development sector Systems & Technologies Sector IT Sector Farm Equipment Sector After Market Sector Financial Services Sector Trade, Retail & Logistics Sector

BOARD OF DIRECTORS NAME

DESIGNATION

1.

Mr. Keshub Mahindra

Chairman

2.

Mr. Anand G. Mahindra

Vice Chairman and Managing Director

3.

Deepak Shantilal Parekh

Director

4.

Nadir Burjorji Godrej

Director

5.

M. M. Murugappan

Director

6.

Bharat Narotam Doshi

Executive Director & Group Chief Financial Officer (Group CFO)

7.

Arun Kumar Nanda

Executive Director & Secretary

8.

Narayanan Vaghul

Director

9.

Dr. Ashok Sekhar Ganguly

Director

10.

R. K. Kulkarni

Director

11.

Anupam Pradip Puri

Director

12.

Thomas Mathew T.

Nominee of LIC

Financial Statements Balance Sheet as on March 31, 2006, 2007 and 2008

Rupees in crores Schedule 31-3-2006 31-3-2007 31-3-2008 SOURCES OF FUNDS SHAREHOLDERS’ FUNDS Capital Employee Stock Options Outstanding Reserves and Surplus

I II

LOAN FUNDS (a) Secured Loans (b) Unsecured Loans

III A III B

DEFERRED TAX LIABILITY (Net) Total APPLICATION OF FUNDS : FIXED ASSETS Gross Block Less : Depreciation Net Block CAPITAL WORK-IN-PROGRESS

IV

238.03 3.18 3,311.70 3,552.91

239.07 4 4,107.00 4,350.07

216.68 666.71 883.38 146.75 3,939.00

106.65 1,529.35 1,636.00 19.79 5,208.70

617.26 1,969.80 2,587.06 56.72 6,993.85

2,885.52 1,510.27 1,375.26 179.19 1,554.44 1,669.09

3,229.69 1,639.12 1,590.57 280.6 1,871.17 2,237.46

3,656.13 1,841.68 1,814.45 546.45 2,360.90 4,215.06

INVESTMENTS CURRENT ASSETS, LOANS AND ADVANCES (a) Inventories (b) Sundry Debtors (c) Cash and Bank Balances (d) Other Current Assets (e) Loans and Advances

VI VI VI VI VI

A B C D E

878.74 637.97 730.3 3.14 498.9 2,749.06

878.48 700.89 1,326.07 3.31 839.42 3,748.17

1,084.11 1,004.88 861.23 13.27 691.88 3,655.37

CURRENT LIABILITIES AND PROVISIONS (a) Current Liabilities (b) Provisions

VII A VII B

1,520.84 530.8 2,051.64 697.41

1,950.22 715.43 2,665.65 1,082.52

2,307.55 943.46 3,251.01 404.36

VIII

18.05 3,939.00

17.55 5,208.70

13.53 6,993.85

NET CURRENT ASSETS MISCELLANEOUS EXPENDITURE (TO THE EXTENT NOT WRITTEN OFF OR ADJUSTED) Total NOTES ON ACCOUNTS

V

233.4 1.58 2,673.88 2,908.87

XIV

Profit and Loss Account for the Year ended March 31, 2006, 2007 and 2008

SALES - Traded and Manufactured Goods Less : Excise Duty on Sales (Net) Net Sales Income from Operations and Other Income Net Income EXPENDITURE : Raw Materials, Finished and Semi-finished Products Excise Duty Personnel Interest, Commitment and Finance Charges (Net) Depreciation/Amortisation Other Expenses

Rupees in crores Schedule 31-3-2006 31-3-2007 31-3-2008 9,113.66 10,940.50 12,371.03 1,124.90 1,336.78 1,566.39 7,988.77 9,603.72 10,804.64 IX 337.77 617.52 867 8,326.54 10,221.24 11,671.64 X

Total of Profit and Loss Account balances shown above

5,713.76 11.61 551.78 -18.4 200 1,004.03 7,462.79 26.53 7,436.26 890.28 78.45 889.49 210.01 1,099.50 285.4 -43 857.1 — 857.1 996.4 43.39 996.83 1,853.94

6,827.93 -2.14 666.15 -67.45 209.59 1,318.57 8,952.65 47.1 8,905.55 1,315.69 — 1,315.69 121.99 1,437.68 365.73 -15.63 1,087.58 19.19 1,068.39 1,475.75 15.67 1,491.42 2,559.81

7,725.91 18.18 852.45 24.24 238.66 1,608.96 10,468.40 46.49 10,421.91 1,249.73 8.16 1,241.57 165.2 1,406.77 278.75 24.65 1,103.37 — 1,103.37 2,125.08 -16.88 2,108.20 3,211.57

Deduct : General Reserve : Interim Dividend Paid : Income Tax on Interim Dividend Paid : Proposed Dividend : Income Tax on Proposed Dividend Balance for 2007-2008 and earlier years carried to Balance Sheet

100 — — 243.97 34.22 1,475.74

110 184.03 25.81 98.2 16.69 2,125.08

115 — — 282.61 38.48 2,775.48

38.07 34.93

45.15 40.94

46.24 41.52

XI XII XIII

Less : Cost of Manufactured Products Capitalised Profit before provision for contingencies, exceptional items and taxation Less : Provision for contingencies Profit before exceptional items and taxation Add : Exceptional Items Profit before taxation Less : Provision for Tax - Current Tax (including Fringe Benefit Tax) -Deferred Tax (Net) Profit for the year before prior period adjustments Prior Period Adjustment (Net of Tax) Profit for the year Balance of Profit for earlier years (Less)/Add : Transfer (to)/from Debenture Redemption Reserve

EARNINGS PER SHARE (Face value Rs. 10/- per share) (Rupees) Basic Diluted NOTES ON ACCOUNTS

XIV

COMPARISON -PARAMETER

YEAR 2006-07 v/s 2005-06

YEAR 2007-08 v/s 2006-07

ANNUAL SALES GROWTH IN %

20.22 %

12.51 %

ANNUAL INCOME NET PROFIT

24.62 %

3.28 %

INCREASE IN SOURCE OF FUNDS (LOANS)

85.28 %

58.13 %

INCREASE IN NET ASSET

55.23 %

(-)62.66 %

MAHINDRA FOUNDATION SOCIAL ACTIVITIES

The Mahindra Foundation has been set up with a specific objective: to provide medical relief to the poor and needy sections of society. The foundation has helped patients suffering from cancer, heart ailments as well as burn victims. It has also been very active during national calamities and disasters and has helped contribute and mobilize resources. The foundation also extends its support to academia and other professionals and sportsmen by helping them attend workshops and conferences overseas. The Mahindra Group has always been very responsive to any major disaster in India. Whether it's been the tsunami or the Gujarat earthquake, the Mahindra family has got together and always provided support either by way of financial help or by way of sending vehicles, supplying material or manpower.

AWARDS & RECOGNITION • The Mahindra Group was honoured with nine communication awards at the 48th annual ABCI (Association of Business Communicators of India) awards nite in Mumbai on Friday, 7th November 2008. These are among the most prestigious communication awards in India. ABCI is a 52 year old organization committed to the cause of Business Communications. Mahindra won in the following categories - External Magazine (Hello), Indian Language Publications (Ingenious), Newsletter Design (Mahindra Newsletter), Brochure Design (Systech Brochure Design), Photo Features (Refresh), Social Responsibility Communication (Lifeline Express), E-Zine (Mahindra Spectrum), Web Communication (Monsoon Special on Intranet & One Mahindra) and Corporate Website (Nanhi Kali).

AWARDS & RECOGNITION

Mr. Anand Mahindra received the CEO of the Year award at the Asia Pacific HRM Congress held at Land's End, Bandra, Mumbai on February 13, 2008. Mr. Mahindra was felicitated for his "outstanding and unparalleled contribution for providing strong, efficient, ethical and visionary leadership“. On January 19, Mr. Anand Mahindra, Vice Chairman and Managing Director of Mahindra & Mahindra, was honoured with Business India's Businessman of the Year 2007. Now in its 26th year, the award was instituted by Business India in 1982 to recognize that one outstanding individual in the business community who is a role model for our times.

Thank you