A

Summer Internship Project

On

MAHINDRA AND MAHINDRA OF “Ratio Analysis ” With Reference of Sidhhivinayak Motors

Pvt. Ltd.

Submitted toGujarat Technological University

Under the Guidance of

Ms. Rutu padhiyar(Professor)

In partial Fulfillment of the Requirement of the award of the degree ofMaster of Business Administration (MBA)

Offered byGujarat Technological University

Ahmedabad

Prepared by:KETAN M. ZALA

MBA (Semester – 2) July- 2015

DECLARATION

I, following Mr. KETAN MAHESHBHAI ZALA , hereby declare that the

summer internship project report titled “RATIO ANALYSIS in is a result of my own

work and Sidhhivinayak Motors Pvt. Ltd. Indebtedness to other work publications,

reference, if any, have been duly acknowledged. If I am found guilty of copying any

other report or published information and showing as my original work, I understand

that I shall be liable and punishable by GTU, which may include ‘Fil in examination,

‘Repeat study & re-submission of the report’ or any other punishment that GTU may

decide.

Enrollment no. Name Signature

PREFACE

Practical training plays an important role in the field of

education. In each and every field of life, practical study is necessary. Theoretical

knowledge isn’t enough.

Education policy adopted practical training been introduced

for the students along with the theoretical study. This helps the students to make their

future better and also gives them a chance to show their skills and abilities.

In today's competitive environment, time plays a critical role.

A famous idiom,” Time once lost cannot be recovered. “So I have prepared this report

on the basis of practical training undertaken a' siddhivinayak motors pvt. Ltd.' Gondal

road, Near Rajkamal Petrol Pump, RAJKOT- 360004.

ACKNOWLEDGEMENT

I am glad to take this practical training

SIDHHIVINAYAK MOTORS PVT. LTD. RAJKOT. Which integral part in our real life

by helping us in improving our knowledge, skill,etc.

I am thankful to prof. RUTU PADHIYAR for

assinging me the project which has created interest to me for management of business

& even thankful to MR. Rajesh Sampat for allowing me to visit his company.

I personally want to thanks my parents and my friends

who have directly or indirectly has helped me in preparing the project report.

TABLE OF CONTENTS

SR No. PARTICULAR PAGE NO.

1

INDUSTRY OVERVIEW

> History > Growth & development

> Performance of industry

> Current Market Scenario

2 COMPANY OVERVIEW

> History

> Growth & development

> Project at glance > Promoters & other information > Mission-vision & Competitors > Product overview

> Awards & Achievements > Detailed department overview > SWOT analysis > Literature review.

3 Research > Research Type. > Research meaning. > Research problem. > Research Methodology.

4 Ratio analysis. > Suggestions.

5 Conclusion6 Limitation of the study.7 Bibliography.

INTRODUCTION

In the year 1769, a French engineer by the name

of Nicolas J. Cognate invented the first automobile to run on the

road. This automobiles, in fact, was a self powered, three wheeled,

military tractor that made the use of a steam engine. Oliver Evans

was the first to design a steam engine driven automobile in U.S.

A Scotsman Robert Anderson was the first to

invent an electric carriage between 1832 and 1839. Development of

roads made travelling comfortable.

According to the history of automobile industry

US, dominated the automobile market around the globe with no

notable competitors. However, after the end of Second World War in

1945, the Automobile Industry of other technologically advanced

nations such as Japan and certain European nations gained

momentum within a very short period beginning in the early 1980s.

The current trends of the global automobile

industry reveal that in the developed countries the Automobiles

Industries are stagnating as a result of the dropping car markets,

whereas the Automobile Industry in the developing nations such as

India and Brazil, have been consistently registering higher growth

rates every passing year for their flourishing domestic automobiles

markets.

GROWTH & DEVELOPMENT

The world automobile Industry is turned to the developing

Market:

With the developed markets almost saturated, the World

Automobile Industry is now focused on the developing markets of

South America and Asia, and Eastern Europe with special emphasis

on BRIC (Brazil, Russia, India and China). As per the reports of the

International Organization of Motor Vehicle Manufacturers or OICA

(the Association of the Company involved in World Automobile

Industry), for the fiscal end in 2010, the automobile manufacturer in

the U.S. has been overtaken by those in Japan.

In keeping with the Automobile Industry Trends, the leading

automobile manufacturers are turning to the Asian markets that

appear set to grow immensely over the next decade. The automobile

markets in the U.S. Europe and Japan have almost matured as a result

of saturation appears set to decline through the next decade.

As a growing percentage of the population in the developed

nations age rapidly, in comparison to the rest of the world these

numbers necessitate automobiles to fit the physiological change in

the world population.

PERFORMANCE OF INDUSTRY

The Indian auto industry ended the year 2011-12 on a positive note.

The total production data for the period shows production growth of

13.83% over the same period last year. In 2011-12, the industry

produced 20,366,432 vehicles of which share of two wheelers,

passenger vehicles, three wheelers and commercial vehicles were

76%, 15%, 4% and 4% respectively.

The growth rate for overall domestic sales for 2011-12 was

12.24 percent amounting to 17,376,624 vehicles. Passenger Cars

grew by 2.19%, Utility Vehicles grew by 16.47% and Vans by

10.01% during this period. For the first time in history car sales

crossed two million in a financial year.

During April to March 2012, the industry exported 2,910,055

automobiles registering a growth of 25.44%. Passenger vehicles

registered growth at 14.18% in this period. Commercial vehicles,

three wheeler and two wheeler segment recorded growth of 25.15%,

34.41% and 27.13% respectively during April to March 2012. For the

first time in history, car exports crossed half a billion in a financial

year.

In March 2012 compared to March 2011, overall automobiles

exports registered a growth of 17.81

CURRENT MARKET SCENARIO

The passenger car industry in India constitutes around 16

percent share of the Indian automobile market, and is a rapidly

growing one, with a growth rate of 10 percent in the last year.

Domestic Market Share in 2014-2015

Type of vehicle Percent sales Domestic sales

Passenger vehicles 15.86 19,49,776

Commercial vehicles 4.32 5,31,395

Three wheelers 3.58 4,40,368

Two wheelers 76.23 93,71,231

Total 100 1,22,90,770

The passenger car segment has witnessed more than 30 launches in

the past years as new brands and companies enter the scene. Also, the

segment focus has shifted from being an internationally laggard one,

to one being at par with it. Many companies such as Toyota, General

Motors now launch their international car versions in India rather

than other markets.

The passenger car segment is still dominated by Maruti Suzuki, has

share of 47.68 percent in 2009-10, though it represents a decline to

that of previous year. It is followed by Hyundai Motors with a share

of 18.89 percent. Tata Motors with 14.72 percent etc. the next in line

are Ford, General Motors, Honda, Toyota etc.

INDEX

SRNO

PARTICULARS PG.NO.

1 History2 Growth & development3 Project at glance4 Promoters and other information5 Mission-vision & Competitors6 Product overview7 Awards & Achievements8 Detailed department overview9 SWOT analysis

HISTORY

Few groups can identify as closely with

India’s destiny and industrial progress as

the Mahindra group. In fact, Mahindra is

like a microcosm of India. Both were

born around the same time, had the same

aspirations and both experience d the

inevitable troughs and crests in the journey towards their goals. And

both continue to march on the path to progress and global

recognition.

Mahindra & Mahindra was set up as a steel trading company in

1945 in Ludhiana as Mahindra and Mohammed by brother

J.C.Mahindra and J.C.Mahindra. After India gained independence

and Pakistan was formed, Mohammed immigrates to Pakistan. The

company changed its name to Mahindra & Mahindra in 1948.

Swift action followed thought. The Mahindra brothers joined hands

with a distinguished gentleman called Ghulam Mohammad. And, on

October 2nd 1945, Mahindra and Mohammad were set up as a

franchise for assembling jeeps from Willys, USA.

Since then, Mahindra & Mahindra has grown steadily in size

and stature and evolved into a group that occupies a premier position

in almost all key sectors of the economy. In fact, today, its total

turnover is about 6 billion dollars.

In India, soon established as the jeep manufacturers of India, the

company later commenced manufacturing light commercial vehicles

and agricultural tractors. Today Mahindra & Mahindra is key players

in the utility vehicles manufacturing and branding sectors in the

‘Indian Automobile Industry’ with the flagship UV Scorpio and uses

India’s growing global market presence in both automotive and

farming industries to push its product in other countries.

Mahindra Company is a large scale industry according to companies

to act 1956. Today turnover of Mahindra Company is about 6 billion

dollars treated as large scale industries.

In 2012 - Mahindra and Mahindra had acquired Ssangyong Motor

Company, a South Korean SUV maker, almost a year ago and are

now planning to set up a assembly plant and invest Rs 800 crore over

next 3-4 years. Mahindra and Mahindra wins arbitration award and

class action suit against global vehicles.

Mahindra & Mahindra has entered the Kenyan

passenger vehicles market with the launch of their utility

vehicles, XUV500 and Scorpio. Other vehicles include pick-up

range, Genio and Maxximo mini-truck. Mahindra & Mahindra Ltd

said that the company has signed an agreement with Telephonic

Corporation to form a joint venture, named as Mahindra-

Telephonics Integrated System Limited.

Mahindra planned to sell the diesel SUV and pickup trucks starting in

late 2010 in North America through an independent distributor, Global Vehicles

USA, Mahindra announced it will import pickup trucks from India in knock

down kit (kcd) form to circumvent the chicken tax

CKD are complete vehicles that will be assembled in the U.S. from kits of parts shipped in crates. On 18 October 2010, however, it was reported that Mahindra

had indefinitely delayed the launch of vehicles into the North American

market, citing legal issues between it and Global Vehicles after Mahindra

retracted its contract with Global Vehicles earlier in 2010, due to a

decision to sell the vehicles directly to consumers instead of through

Global Vehicles.

However, a November 2010 report quoted John Perez the CEO

of Global Vehicles USA, as estimating that he expects Mahindra’s small

diesel pickups to go on sale in the U.S. by spring 2011, although legal

complications remain, and Perez, while hopeful, admits that arbitration

could take more than a year.

Later reports suggest that the delays may be due to an

Mahindra scrapping the original model of the truck and replacing it with

an upgraded one before selling them to Americans In June 2012, a

Mass tort lawsuit was filed against Mahindra by its American dealers,

alleging the company of conspiracy and fraud.

Mahindra & Mahindra has a controlling stake in Mahindra reva

electric vehicle In 2011, it also gained a controlling stake in South Korea's

SsangYong Motor Company.

Mahindra has launched its relatively heavily published SUV,

XUV 500, code named as W201 in September 2011. The new SUV by

Mahindra has been designed in-house and it is developed on the first

global SUV platform that could be used for developing more SUVs. In

India, the new Mahindra XUV 500 comes in a price range between Rs

11 lakh to Rs 15 lakh. The company is expected to launch 3 production

CY'15 (2 SUVs and 1 CV) and an XUV 500 hybrid. M&M’s two wheeler

segment will launch a new scooter in Q1FY'15.

Besides India, the company also targets Europe, Africa,

Australia and Latin America for this model. Mahindra President

Mr. pawan Goenka stated that the company plans to launch six new

models this fiscal. The company launched CNG version of its mini truck

Maxximo on 29 June 2012. A new version of Verito in diesel and petrol

options was launched by the company on 26 July 2012 to compete with

Maruti's Dzire and Toyota Kirloskar Motor's Etios.

Mahindra Ugine inked joint venture with Sanyo Special

Steel & Mitsui & Co. Ltd. names new venture as Mahindra Sanyo Special

Steel Pvt Ltd.

In 2013,Auto major Mahindra and Mahindra has inked

partnership with online shopping portal, Snapdeal.com to sell its two-

wheeles on the site.

Mahindra launches MPOWER to train young

transport entrepreneurs at Indian Institute of Management. Mahindra

unveils the new Maxximo Plus Mini-truck in Bengaluru and Chennai.

Mahindra expands dealership network. across India. Mahindra

launches the new Bolero Maxi Truck Plus - The Perfectly Styled

City Pick-up in Ahmedabad.

Mahindra Two Wheelers wins 3 Awards at the

CMO Asia – Manufacturing Excellence Awards 2013.Mahindra 2

Wheelers opens new dealership Zirakpur, Punjab.

In ,2014, Mahindra introduces 'yoga seats' in quanto

compact. Mahindra signs mou with government of bhutan to promote

usage of electric vehicles in the country.

Mahindra defence naval systems inaugurates new

chakan plant. Mahindra integrated business solutions signs mou

with advisory. Mahindra logistics acquires majority stake in lord

freight (India) PVT. LTD. Mahindra to launch new global scooter

called gusto.

GROWTH & DEVELOPMENT

Mahindra and Mahindra limited is an Indian multinational

automobile manufacturing corporation. It is one of the largest vehicle

manufactures by production in India and the largest seller of tractors

across the world.

It is a part of Mahindra Group an Indian conglomerate. It was ranked

as the 10th most trusted brand in India, by the brand trust report, in

2014.

It was ranked 21st in the list of top companies of India in FORTUNE

INDIA 500 in 2011

PROJECT AT GLANCE

Name of the company : Mahindra & Mahindra

Registered office : Mahindra & Mahindra Ltd.

Gateway building,

Apollo bunder,

Mumbai; 400001

Industry : Automotive

Established Year : 1945

Founded : In Ludhiana

Form of an organization : Public Limited Company

Size of an organization : Large Scale Company

Headquarters : Mumbai, Maharashtra, India.

Area served : Worldwide

Managing Director : Anand Mahindra

Product : Automobiles,

Commercial vehicles,

Two –wheelers

Parents : Mahindra Group

revenue : 691 billion (us $ 11 billion) Net income : 71 billion (us $ 650 million) Total assets : 712 billion (us $ 11 billion)

Website : www.Mahindra.com

MANAGING DIRECTOR

HOD

MIDDLE MANAGER

SUPERVISOR

LINE SUPERVISOR

LABORERS

SUPERVISOR

LINE SUPERVISOR

LABORERS

ORGANIZATION STRUCTURE

PROMOTORS AND INFORMATION

SRNo.

NAME DESIGNATION

1 Mr. Keshub Mahindra Chairman

2 Mr. Anand Mahindra Vice chairman &managing director

3 Deepak Parekh Director

4 Nadir Burjorji Godrej Director

5 M.M.Murugappan Director

6 Bharat Narotam Doshi Executive director &Group Chief Financial

Officer7 Arun Kumar Nanda Executive Director &

secretary8 Narayanan Vaghul Director

9 Dr. Ashok Ganguly Director

10 Mr. R.K. Kulkarni Director

11 Anupam Pradip Puri Director

MISSION & VISION

* MISSION:

To create India’s largest automobile and automobile-related products

distribution network by providing dealers and customers with the

largest choice of unique world-class products and services.

* VISION:

To create a fully collaborative environment in which suppliers can

deliver exactly what the company needs, when it needs it, and at a

competitive cost.

COMPETITORS

Now a day’s competitors are plays an important role in a market. The

major competitors of Mahindra cars in the Indian market include:

1] Maruti Suzuki 7] Fiat

2] Tata Motors 8] Nissan

3] Ashok Leyland 9] Volkswagen

4] Toyota 10] Honda

5] Hyundai 11] Mercedes-Benz (Merc)

6] Skoda

AUTOMOBILE ASSEMBLY PLANTS

> Bangalore , Karnataka , India.

> Chakan , Maharashtra , India.

> Haridwar, Uttarakhand, India.

> Nasik , Maharastra , India.

Military Defence

The company has built and assembled military vehicles,

commencing in 1947 with the importation of the WILLYS JEEP that had

been widely used in World War II. Its line of military vehicles

include the AXE. It also maintains a joint venture with BAE Systems,

Defence Land Systems India.

Energy

Mahindra & Mahindra entered the energy sector in 2002,

in response to growing demands for increased electric power in India.

Since then, more than 150,000 Mahindra Power of engines and diesel

generator sets (gensets) have been installed in India, offering standard

proper quality power, as do most larger companies, in areas with

arguably less reliable grid electricity. The inverters, batteries, and

gensets are manufactured at three facilities in Pune (Maharastra),

Chennai (Tamil nadu), and Delhi; and 160 service points across India

offer 24-7 support to most key markets. Power of is present in countries

across Latin America, Africa, the Middle East, and Southeast Asia—and

expanding into the United Arab Emirates, Bangladesh, and Nepal.

Mahindra Powerol's energy services consist mostly of

power leasing and telecom infrastructure management. In 2006, it

became a major market leader in the telecom segment (and in 2011,

its market share passed 45 percent). In 2007, it won the Frost and

Sullivan "Voice of the Customer" award for best practices in telecom.

Mahindra Cleantech Ltd focuses in eco-friendly, or

'green' power. In response to growing acceptance of Solar power,, it

formed a subsidiary, Mahindra Solar, in 2010 to offer a range of solar

solutions, both off grid and on grid, alongside Engineering,

Procurement, and Construction (EPC).

Mahindra EPC, is the Engineering Procurement &

Construction arm of the Mahindra group. A portfolio company under

the Cleantech arm of Mahindra Partners, they offer solar solutions

spanning On-Grid solutions, EPC (Engineering, Procurement and

Construction) and Off-Grid Product solutions. The company

commenced its operations in the year 2011 and has successfully

commissioned over 60 MW worth of Solar PV projects.

Meanwhile, its off-grid products include power packs

and rooftop setups for business organisations and public institutions

alongside rural electrification through lanterns and home and street

lighting systems. The company works closely with Mahindra’s farm

equipment division to offer lighting products to some of the more rural

areas in India. It also works with Mahindra Powerol to offer solar power

backup to telecom sites in India. In 2011, Mahindra Solar received a

CRISIL rating of SP1A in 2011, the highest rating for any solar

photovaltaic off-grid company.

Farm equipment

Mahindra began manufacturing tractors for the

Indian market during the early '60s. It is the top tractor company in the

world (by volume) with annual sales totaling more than 200,000

tractors. Since its inception, the company has sold over 2.1 million

tractors. Mahindra & Mahindra’s farm equipment division has over

1,000 dealers servicing approx. 1.45 million customers.

Mahindra tractors are available in 40 countries,

including India, the United States, China, Australia, New Zealand, Africa

(Nigeria, Mali, Chad, Gambia, Angola, Sudan, Ghana, and Morocco),

Latin America (Chile, Argentina, Brazil, Venezuela, Central America,

and the Caribbean), South Asia (Sri Lanka, Bangladesh, and Nepal),

the Middle East (Iran and Syria) and Eastern Europe (Serbia, Turkey,

and Macedonia.

Mahindra Tractors manufactures its products at four

plants in India, two in Mainland China, three in the United States, and

one in Australia. It has three major subsidiaries: Mahindra USA,

Mahindra (China) Tractor Company, and Mahindra Yueda (Yancheng)

Tractor Company (a joint venture with the Jiangsu Yueda Group).

In 2003, the Farm Equipment Sector of Mahindra &

Mahindra won the Deming Appication and in 2007 it received the Japan

Quality Medal for implementing Total Quality Management in its entire

business operations. The company has garnered the highest customer

satisfaction index (CSI) in the industry at 88 percent.It earned a 2008

Golden Peacock Award in the Innovative Product/Services category for its

in-house development of a load car. In its 2009 survey of Asia’s 200

most admired and innovative companies, the Wall Street Journal

named Mahindra & Mahindra one of the 10 most innovative Indian

companies.

In addition to tractors, Mahindra sells other farm

equipment. It has expanded its product-line to include farm-support

services via Mahindra AppliTrac (farm mechanisation products),

Mahindra ShubhLabh (seeds, crop protection, and market linkages

and distribution), and the Samriddhi Initiative (farm counselling and

information services).

• Consumer

• Mahindra e2o

• Mahindra Thar

• Mahindra Bolero

• Mahindra Xylo

• Mahindra Scorpio

• Mahindra Scorpio Getaway

• Mahindra Verito

• Mahindra XUV500

• Mahind

• ra Quanto

• Mahindra Verito Vibe

Employees

As on 31 March 2013, the company had 34,612

employees, out of which 699 were women (2%). It also had around

16,000 temporary employees on the same date.

Company updates

In 2015, it was announced that the company was

to offer Android Auto, a Telematics standard developed by Google,

technology with its in-vehicle infotainment system for its XUV500 and

Scorpio vehicles.

AUTOMOTIVE PRODUCT

Mahindra Scorpio Mahindra Bolero

Mahindra XUV 500 Mahindra Thar

Mahindra Verito Mahindra Quanto

Mahindra Xylo Mahindra Logan

Mahindra Verito Vibe Mahindra e20

AWARDS AND ACHIEVEMENT

Anand Mahindra receives business India’s prestigiousBusiness of the year awards.

Mumbai, January 19, 2008: Mr. AnandMahindra, vice chairman and managing directorof Mahindra & Mahindra, was today honoredwith business India’s businessman of the year2007.

Bombay Chamber Good Corporate Citizen Award for 2006-2007.

Business world FICCI-SEDF Corporate Social Responsibility Award 2007.

The Brand Trust Report ranked M&M as India’s 10th most trusted Brand inits India Study 2014 survey (from 20,000 brands analyzed).

Its farm equipment division received the Japan Quality Medal in 2007.

The US based Reputation Institute ranked M&M amongst the top TenIndian companies in its “Global 200:The World’s Best CorporateReputations” list for 2008.

Blue bytes News rated M&M as India’s second Most Reputed car companyconducted for the Auto [cars] sector in 2012.

DETAILED DEPARTMENT OVERVIEW

MARKETING DEPATMENT

SR NO. PARTICULARS PG NO.

1 Introduction

2 Organization chart

3. Distribution channel

4. Pricing policy

INTRODUCTION TO MARKETING

Marketing management needs to perform all the activities to satisfy consumer’s needs

and wants.

The marketing philosophy of business assumes that an organization can best serve and

prosper by identifying and satisfying the needs of its customers.

Definition of marketing:

According to Philip Kotler, “marketing is the social and managerial process by

which individual and groups obtain what they need and want through creating, offering

and exchanging products of value of with others.”

Definition of marketing management:

According to Philip Kotler, “marketing management is the art and science of

choosing target markets and getting, keeping and growing customers through creating,

delivering and communicating superior customer value.”

The main characteristic of modern marketing is that you are accepting that,

“consumer is the KING of the market.”

ORGANIZATION CHART

Marketing manager

Service manager

office manager

Advertising manager

Customer care

Brand manager

Sales manager

Physical distributor

DISTRIBUTION CHANNEL

According to Philip Kotler, “Every producer seeks to link together the set of marketing

intermediaries that best fulfill the firm’s objectives. This set of marketing intermediaries

is called the channel also trade of channel of distribution.”

There are various types of distribution channels through which the producers can

move the goods to the end users.

PRICING POLICY

Pricing for the product is a crucial element of marketing mix. On the

one hand it is a complex mechanism and on the other it is simultaneously a strategic

element as it is related to the perception of quality. Without price there can’t be

marketing. Price denotes the value of a product or service expressed in money.

The most important task of any business is to decide about the pricing

policy for its products. There are so many pricing techniques used in today’s business

activities.

2.PRODUCTION DEPARTMENT

SR NO. PARTICULARS PG NO.

1 Introduction

2 Meaning

3. Production function chart

4. Plant Layout

5. Types Of Product

6. Quality Management

INTRODUCTION:

The production department business is concern with the creation of the

product as service required satisfying the customers needs, wants, and desired.

Production is an organizational activity of converting raw-material

into finished goods by organized utilization of natural resources, men, money,

material, and machines.

According to H.A. Harding, “production management is

concerned with those processes which convert the input into outputs. The inputs are

various resources like raw material, men, machines, method, etc. and the outputs are

goods and services.”

PRODUCTION FUNCTION CHART

Inputs OUTPUTS

RESOURCES PRODUCTS OR SERVICES

PRODUCTIUON FUNCTION

MATERIALSLABOURCAPITALENERGYINFORMATION

PRODUCTSSERVICES

INFORMATION

PLANT LAYOUT:

Plant layout is plan for arranging physical facility and manpower

required.

Plant layout is physical arrangement of equipment facility within the

plant. The plant layout can be indicated on a floor plant showing the

distance between different features of the plant. Plant layout is

optimized this is valid for:

Distance material has to move

Distance equipment has to move

Type of handling equipment needed

M & M has a big building facility with, nice garden. So, they don’t

find much problem and along with their production system is also

nice.

TYPES OF PRODUCT :

* Automobile

* Commercial vehicles

* Two-wheelers

QUALITY MANAGEMENT:

M & M’s quality management system encompasses all current

industry standard method, including process capability analysis

etc.M & M is committed to customer satisfaction through continuous

improvement.

3.HUMAN RESOURCE DEPARTMENT

INDEX

SR NO. PARTICULAR PG NO.

1 Introduction

2. Organization structure

2 Recruitment and selection

3 Development

4 Employee’s benefit &facilities

INTRODUCTION:

Human resource management is concern with people dimension in

management. Since every organization is made up of people accruing

their services, developing their skill, motivating them to higher level

of performance and ensuring that they continue to maintain to their

commitment to the organization.

A Mahindra & Mahindra company is only as good as the people it

keeps. Achievement is attributed to our dedicated and innovative

employees and supportive customers.

M & M’s entire team is committed to providing us with real

competitive advantages with the best concept, optimum performance

and quality, the lowest cost of ownership and enhanced flexibility.

ORGANIZATION STRUCTURE

HUMAN RESOURCE MANAGER

CLERK

EMPLOYEES

RECRUITMENT AND SELECTION:

Recruitment is the process of acquiring at the right time, in the right

position, person with the right qualification.

In M & M Company, recruitment plays an important role and the

internal and external sources of recruitment are as follows:

INTERNAL SOURCES

EXTERNAL SOURCES

M & M mostly follows External sources for the recruitment procedure.

SELECTION

The main object of Selection process is to find out about applicant, so

that ha may be fit with job or not.M& M adopts only one step

employment interview for the selection.

PLACEMENT:

M & M Company after the initial training is over, they normally

decides the final placement on the basis of performance and results

output during the training.

TRAINING:

Training is the act of increasing the knowledge and skill of an

employee during a particular job. There are mainly two types of

training:

On the job training

Off the job training

DEVELOPMENT:

The purpose of such development is the development of their mental

abilities, skill & inherent qualities.

M & M organize special development program for office staff &

workers.

EMPLOYEES BENEFIT & FACILITIES:

M & M provides wealth of service so that employee’s find desirable

and employees are motivated to perform the best of their jobs and try

to increase the efficiency of the organization. An employee is most

valuable assets of any organization.

These workers on ethical basis so it provides lot of facilities to the

workers:

Financial facilities

Canteen facilities

Safety facilities

Provident fund

4.FINANCE DEPARTMENT

INDEX

SR NO. PARTICULAR PG NO.

1 Introduction

2. Organization structure

3. Financial planning

4. capitalization

5. Sources of finance

INTRODUCTION:

Finance is life blood of business. We need finance for production of goods

& services as well as distribution. Finance function assumes an important role in

the business system.

Finance is required for production, distribution, and advertising as well as

for purchase machinery to purchase raw-material etc. so everything is brought by

finance and without finance business can’t be survival.

The management of finance department assumes an important role in

the business system and it should be of equal importance with production and marketing

function.

Financial management is that management activity which is concerned

with the planning and controlling of the firm’s financial resources.

ORGANIZATION STRUCTURE

FINANCE MANAGER FINANCE MANAGER

ASS. FINANCE MANAGER ASS. FINANCE MANAGER

ACCOUNTANT ACCOUNTANT

CLERK CLERK

FINANCIAL PLANNING:

Financial planning naturally deals with function of

financial system of the firm.

Financial planning indicates a firm’s growth, performance,

investments and requirements of funds during a given period of time

usually three to five years. It involves the preparation of projected or

performance profit and loss account, balance sheet and fund flow

statement. Financial planning and profit planning help a firm’s

financial manager to regulate flows of funds which is his primary

concern.

In M & M Company one of the important decisions is to

be taken by financial manager is of financial planning. They do

financial planning to the basis of past data. They compare past data

and likewise prepare financial plan

CAPITALIZATION:

Capitalization includes ownership capital and borrowed capital as

represented by long term indebtedness. Capitalization should be

based on earning power.

There are mainly three types of capitalization

Fair & Proper capitalization

Over capitalization

Under capitalization.

SOURCE OF FINANCE:

There are mainly two types of source for collect money in

market first one is short term finance and second is long term sources

of finance. Long term source of finance is useful for fixed assets and

short term finance useful for day to day activity.

Long term source of finance:

Equity

Loan

Right issue

Short term source of finance:

Bank loan

Working capital

Bank overdraft

Credit

BALANCE SHEET

Balance Sheet of Mahindra and Mahindra

------------------- in Rs. Cr. -------------------

Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of FundsTotal Share Capital 295.16 295.16 294.52 293.62 282.95Equity Share Capital 295.16 295.16 294.52 293.62 282.95Share Application Money 0.00 0.00 0.00 0.02 8.01Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 16,496.03 14,352.92 11,876.57 10,019.75 7,527.60Networth 16,791.19 14,648.08 12,171.09 10,313.39 7,818.56Secured Loans 294.10 266.67 400.18 407.23 602.45Unsecured Loans 3,451.06 2,960.40 2,774.04 1,913.87 2,277.70Total Debt 3,745.16 3,227.07 3,174.22 2,321.10 2,880.15Total Liabilities 20,536.35 17,875.15 15,345.31 12,634.49 10,698.71

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of FundsGross Block 10,242.58 8,602.96 7,502.36 5,858.26 4,866.18Less: Revaluation Reserves 0.00 10.84 0.00 0.00 11.67Less: Accum. Depreciation 4,365.63 3,645.10 3,216.34 2,725.35 2,537.77Net Block 5,876.95 4,947.02 4,286.02 3,132.91 2,316.74Capital Work in Progress 1,228.44 863.48 794.73 773.68 1,374.31Investments 11,379.85 11,833.46 10,310.46 8,925.63 6,398.02Inventories 2,803.63 2,419.77 2,358.39 1,694.21 1,188.78Sundry Debtors 2,509.84 2,208.35 1,988.36 1,260.31 1,258.08Cash and Bank Balance 2,950.39 1,781.41 1,188.43 614.64 475.17Total Current Assets 8,263.86 6,409.53 5,535.18 3,569.16 2,922.03Loans and Advances 4,539.55 3,389.26 2,985.59 3,138.40 2,034.47Fixed Deposits 0.00 0.00 0.00 0.00 1,268.06Total CA, Loans & Advances 12,803.41 9,798.79 8,520.77 6,707.56 6,224.56Deferred Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 8,678.28 7,662.13 6,721.40 5,223.75 3,822.50Provisions 2,074.02 1,905.47 1,845.27 1,681.54 1,796.54Total CL & Provisions 10,752.30 9,567.60 8,566.67 6,905.29 5,619.04

Net Current Assets 2,051.11 231.19 -45.90 -197.73 605.52Miscellaneous Expenses 0.00 0.00 0.00 0.00 4.12Total Assets 20,536.35 17,875.15 15,345.31 12,634.49 10,698.71

Contingent Liabilities 6,421.09 87.20 2,307.66 1,893.85 2,307.70Book Value (Rs) 272.63 238.58 198.23 167.99 138.02

PROFIT AND LOSS ACCOUNT

Profit & Loss account of Mahindra and Mahindra

------------------- in Rs. Cr. -------------------

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

IncomeSales Turnover 40,508.50 43,412.65 31,853.52 23,460.26 20,323.63Excise Duty 0.00 2,971.49 0.00 0.00 1,807.30Net Sales 40,508.50 40,441.16 31,853.52 23,460.26 18,516.33Other Income 770.78 639.79 574.06 551.63 285.09Stock Adjustments 274.67 87.31 597.33 202.23 23.69Total Income 41,553.95 41,168.26 33,024.91 24,214.12 18,825.11ExpenditureRaw Materials 29,889.44 30,675.27 24,258.94 16,604.88 12,461.56Power & Fuel Cost 221.35 206.39 175.78 143.93 120.97Employee Cost 2,163.72 1,866.45 1,701.78 1,431.52 1,199.85Other Manufacturing Expenses 0.00 0.00 0.00 0.00 96.92Selling and Admin Expenses 0.00 0.00 0.00 0.00 1,439.26Miscellaneous Expenses 3,787.45 3,071.06 2,543.63 2,027.83 264.21Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 -59.55Total Expenses 36,061.96 35,819.17 28,680.13 20,208.16 15,523.22

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 4,721.21 4,709.30 3,770.72 3,454.33 3,016.80PBDIT 5,491.99 5,349.09 4,344.78 4,005.96 3,301.89Interest 259.22 191.19 162.75 72.49 156.85PBDT 5,232.77 5,157.90 4,182.03 3,933.47 3,145.04Depreciation 863.34 710.81 576.14 413.86 370.78Other Written Off 0.00 0.00 0.00 0.00 0.00Profit Before Tax 4,369.43 4,447.09 3,605.89 3,519.61 2,774.26Extra-ordinary items 0.00 0.00 0.00 0.00 72.49PBT (Post Extra-ord Items) 4,369.43 4,447.09 3,605.89 3,519.61 2,846.75Tax 611.08 1,094.27 727.00 857.51 759.00Reported Net Profit 3,758.35 3,352.82 2,878.89 2,662.10 2,087.75Total Value Addition 6,172.52 5,143.90 4,421.19 3,603.28 3,061.66Preference Dividend 0.00 0.00 0.00 0.00 0.00Equity Dividend 862.25 798.17 767.48 706.08 549.52Corporate Dividend Tax 104.04 92.98 101.13 96.56 74.23Per share data (annualised)

Shares in issue (lakhs) 6,158.92 6,139.81 6,139.75 6,139.40 5,659.08Earning Per Share (Rs) 61.02 54.61 46.89 43.36 36.89Equity Dividend (%) 280.00 260.00 250.00 230.00 190.00Book Value (Rs) 272.63 238.58 198.23 167.99 138.02

CASH FLOW

Cash Flow of Mahindra andMahindra

------------------- in Rs. Cr. -------------------

Mar '15 Mar '14 Mar '13 Mar '12 Mar '1112 mths 12 mths 12 mths 12 mths 12 mths

Net Profit Before Tax 3833.17 4316.64 4356.47 3497.62 3402.13Net Cash From Operating Activities 3219.49 3727.64 4145.71 2734.95 2979.78Net Cash (used in)/fromInvesting Activities

-2423.09 -2407.08 -2895.95 -1936.54 -3734.99

Net Cash (used in)/from Financing Activities -1584.82 -823.93 -1221.89 -306.15 -383.75Net (decrease)/increase In Cash and Cash Equivalents

-788.42 496.63 27.87 492.26 -1138.96

Opening Cash & Cash Equivalents 1705.61 1208.98 1136.09 695.97 1753.13Closing Cash & Cash Equivalents 917.19 1705.61 1163.96 1188.23 614.17

SWOT ANALYSIS

SWOT analysis means the analysis of,

S-strength

W-Weakness

O-Opportunity

T-Threat

STRENGTH:

Mahindra has been one of the strongest brand in the Indian

automobile market.Excellent branded & advertising and low after

sales service cost.

WEAKNESS:

Mahindra’s partnership with Renault did not live up to

international quality standards through their brand Logan.

OPPORTUNITY:

Developing hybrid cars and fuel efficient cars for the

future.

Tapping emerging market across the world and building a

global brand

Fast growing automobile market.

THREAT:

Government policies for the automobile sector across

the world

Ever increasing fuel prices

Intense competition from global automobile brand

Substitute mode of public transport like buses, metro

trains etc.

CREDIT TERMS

Credit Terms refers to the rules and regulations in the form of an

agreement between the producer and the customers in relation to the

credit facility which the producer gives to their customers. In other

words credit terms are the terms and Conditions which are mutually

agreed upon by the customers and producers and relates to the

benefits which each will provide to other party.

Credit facilities are one of the important decisions it can be taken by

finance manager. Credit facilities must be planned out effectively. So

we can reduce our debtor. Credit facilities help to retain old

consumer and credit new customer by running them away from

competitors.

In Mahindra Pvt. Ltd. Credit facility plays an important role. The

credit terms of Mahindra Limited are fairly straightforward. The

credit period allowed to the dealers is 90 days.

LITERATURE REVIEW

Lev and Sunder (1979) point out, using theoretical deduction, that in order

to control for the size effect, the financial ratios must fulfill very restrictive

proportionality assumptions. It is shown that the choice of the size deflator

(the ratio denominator) is a critical issue. Furthermore, Lev and Sunder bring

up the problems caused in multiple regression models where the explaining

variables are ratios with the same denominator. This is a fact that has been

discussed earlier in statistics oriented literature like in Kuh and Meyer (1955).

Barnes (1982) shows how the non-normality of financial ratios can result from

the underlying relationships of the constituents of the financial ratios.

He is thus able to tie in the ratio format aspects with the distributional

properties of financial ratios. In the discussion on Barnes's paper (Horrigan,

1983, Barnes, 1983), Horrigan puts forward that financial ratio research

should be more interested in the role of the financial ratios themselves than in

"the nature of the ratios' components or to the ratios' incidental role as data

size deflators". To extrapolate from Horrigan's critique, in our own

interpretation the validity of financial ratio analysis should be determined

by its usefulness to the decision making process of the different interested

parties (owners, management, personnel etc.)

Mecimore (1968) In the history of FRA it is common that professional journals

and academic papers do not recognize each other. An early paper on financial

ratio distributions was published in Management Accounting by Mecimore

(1968). It is interesting to recognize that all ingredients of modern distribution

analysis already appear incumbent in Mecimore's paper. Using descriptive

statistical measures (average and relative deviations from the median) he

observes cross-sectional non-normality and positive skewness for twenty ratios

in a sample of randomly selected forty-four Fortune-500 firms.

Bird and McHugh (1977) adopt an efficient small-sample test for the normality

of financial ratios for an Australian sample of five ratios over six years. They

find in their independent study that normality is transient across financial

ratios and time. They also study the adjustment of the financial ratios

towards industry means which is a different area of FRA research.

Bougen and Drury (1980) also suggest non-normality based on a cross-section of

700 UK firms. The results indicating non-normality of financial ratio

distributions have led researchers into looking for methods of restoring

normality to warrant standard parametric statistical analyses. Frecka and

Hopwood(1983) observe that removing outliers and applying transformations in

a large sample covering 1950-79 restored normality in the same financial ratios

as tackled by Deakin (1976).

They point out that if the ratios follow the gamma distribution, the square root

transformation makes the distribution approximately normal. The gamma

distribution is compatible with ratios having a technical lower limit of zero.

While improving the statistical results trimming and transformations can pose a

problem for the theoretical rigor in FRA research. Instead of deleting or

adjusting the observations McLeay (1986a) proposes using a better fitting

distribution with fat tails for making statistical inferences in FRA. He seeks for

a best fitting t-distribution for a cross-section of 1634 UK and Irish firms. Also

his empirical results confirm non-normality.

The best-fitting t-distribution varie across financial ratios (the t-distribution can

be considered a family of distributions defined by its degrees of freedom).

McLeay (1986b) also tackles the choice between equally weighted and value

aggregated financial ratios in terms of ratio distributions on a sample of French

firms.

Typically, many later papers tackle the same basic question of ratio distributions

using different samples and expanding on the methodologies. Buijink and Jegers

(1986) study the financial ratio distributions from year to year from 1977 to

1981 for 11 ratios in Belgian firms collaborating the results of the earlier papers

in the field. Refined industry classification brings less extreme deviation from

normality. They also point to the need of studying the temporal persistence of

cross-sectional financial ratio distributions and suggest a symmetry index for

measuring it.

Salamon (1973) described that the fundamental task of accounting is income

determination and the evaluation of the firm's assets. The measurement of

profitability is intimately linked with both. There is significant body of literature

which considers profitability assessment. In terms of economic theory the

profitability of a firm could be defined as the internal rate of return of the capital

investments constituting the firm, although Salamon (1973) casts doubt of

this view. There is a strong tradition in literature that seeks to estimate the

internal rate of return, either from a time series of the financial statements of the

firm, or, more narrowly, by considering the relationship between the familiar

accounting rate of return (the firm's annual profit in relation to its assets)

and the internal rate of return.

British economists’ present one tradition of tackling the question of the

divergence between the ARR and IRR since Harcourt (1965) put forward his

position that the accountant's rate of return is "extremely misleading". Using four

different cases of accumulation of assets (growth) he asserts that it is not

possible to develop rough rules of thumb to adjust ARR to reflect IRR under

different life spans of investments, the net cash flow patterns generated by

the investments, different growth rates, and different depreciation methods.

He concludes by an explicit warning about profitability comparison between

firms in different industries or different countries if accountants' measurements

are used. It can only be deduced that he implicitly gives very little value for the

financial statements annually prepared by the accounting profession.

Stauffer (1971) presents a generalized analysis of ARR vs IRR relationship using

continuous mathematics under several cash profile assumptions. He

demonstrates that the depreciation schedule affects the relationship. Also he puts

forward that the accounting and the economic measurements (ARR/IRR) are

irreconcilable, and that the situation is aggravated by the introduction of taxation

into the analysis. From the accounting point of view it is interesting that he

points to the task of estimating the real rates of return from historical accounting

data.

Springer (1980) present that Ratio Analysis is an early warning indicator that

enables the business owner and manager to spot trends in a business and to

compare its performance and condition with the average performance of

similar businesses in the same industry. The author relates that Ratio Analysis is

done by comparing the specific company's ratios with the average of similar

businesses and comparing the business's own ratios for several successive

years, watching especially for any unfavorable trends that may be starting. The

paper states that the current ratio measures the ability of the firm to pay is

cu amount needed to pay current obligations.

The Latin American Studies Association (1966) compare and contrasts the

financial performance and position of John Lewis Plc, and Marks & Spencer Plc,

mainly through the process of the ratio analysis of the financial statements of the

two companies. The writer provides a brief introduction of the two

companies under discussion, such as their background information,

similarities and differences and their core business. The writer deals with

calculations of important financial ratios of the two companies and then analyses

these figures. The writer compares and discusses the ratios in detail, discussing

possible causes of changes and fluctuations and coming to various conclusions

about the performance of the two companies.

In addition, the writer looks at certain limitations of the exercise of ratio

analysis, emphasizing the fact, that even though ratio analysis is a great

means of understanding the financial position of a company better, there are still

many other factors which can impact those numbers but are difficult to quantify.

The writer concludes by highlighting the main findings of the report and

presenting a personal opinion on the attractive of two companies from an

investor's viewpoint.

TYPES OF RESEARCH

The research done here is an ANALYTICAL type of research. In

ANALYTICAL RESEARCH the published facts and figures is used. In this type of

research than the information is analyzes to make a critical evaluation of the

material.

There is balance sheet and P & L a/c of the company for last 3

years and through this information it is best choose analytical research.

MEANING OF RESEARCH

Research in common parlance refers to a search for knowledge. One

can also define research as a scientific and systematic for pertinent information on a

specific topic. In fact, research is an art of scientific investigation. The Advanced

Learner’s Dictionary of Current English lays down the meaning of research as a“a

careful investigation or inquiry specially through search for new facts in any branch of

knowledge.”

Research is an academic activity and as such the term should be

used in a technical sense, According to Clifford Woody, “research comprise defining

and redefining problems , formulating hypothesis or suggested solution: collecting ,

organizing and evaluating data ; making deduction and reaching conclusions ; and

at last carefully testing the conclusions to determine whether they fit the formulating

hypothesis.

DATA COLLECTION METHOD

Data collection is the selection of sources of information and

selection of methods and procedures for gathering the data needed for any

research.

“ The search for answers to research questions is called collection

of data.”

“Data are facts and other relevant materials serving a bases for

study& analysis.”

For economy analysis, various types of survey’s data are collected

from ministry of finance. Industry analysis was carried from the various research

report prepared by the government of India. The company analysis is done through

financial statements , which are required for analyzing the ratios, balance sheet and

profit & loss a/c , which is collected from the company Sidhhivinayak Motors Pvt. Ltd.

The task of data collection begins after a research problem has

been defined and research design/plan chalked out.

While deciding about the method of data collection to be

used for the study, the researcher should keep in mind two types of data…

1. Primary data method.

2. Secondary data method.

For my study purpose I have used SECONDARY DATA

METHOD. And the data is collected from the internet (website) and some data

from the company and then calculation & analysis is done.

The basic significance or merits of secondary data are:-

- Readymade availability.

- Available quickly and cheaply.

- Less time is consumed.

- Less effort is required to collect the data.

RESEARCH PROBLEM

There are so many industries contributing to economic development

of the nation and manufacturing industries touch almost every sphere of economic

activity. They have far reaching consequences on economic development of

country. Manufacturing industries is one of the leading factors in economic

development.

Although the manufacturing industry runs successfully, it does have to

face many problems faced by the manufacturing industries is inconsistency in the

profit they earn. While taking major decisions, the manufacturing need to take

into consideration the prevailing in its profit.

Thus, it becomes necessary for every manufacturing industry to know

its current trend of profit earned.

OBJECTIVE OF THE STUDY

The main aim of research is to find out the truth which is hidden and which

has not been discovered yet.

Our main objective is to explore the factors affecting the financial position of the

company through analysis of ratios of the financial ear 2011-2012, 2012-2013,

2013-2014, and 2014-2015

To know the current trend of profits of different suitings firm and

estimate the forecast for the coming year.

To compare and analyze the profitability ratios between the past

records.

TO UNDERSTAND THE nature of the profit in manufacturing industry.

To display the strategies this helped the firm for future success.

To study the effect when all ratio are combined together.

To identify the effect of one thing on another.

To understand the working of all through which financial position is

known.

RATIO ANALYSIS

The financial statements as prepared and presented annually are

of little use for guidance of prospective investors, creditors, and even management.

If relationship between various related items in these financial statement is

established, they can provide useful clues to gauge accurately the financial health

and ability of business to make profit. This relation between two related items of

financial statements is known as Ratio. A ratio is thus, one number expressed in

terms of another.

Ratio analysis is one of the techniques of financial analysis

where ratios are used as a yardstick for evaluating the financial condition and

performance of a firm. Analysis and interpretation of various accounting ratios gives

a skilled and experienced analyst a better understanding of the financial

condition and performance of the firm than he could have obtained only through

a perusal of financial statements.

Ratios are relationship expressed in mathematical terms

figures which are connected with each other in some manner.

Obviously, no purpose will be served by comparing two sets

of figures which are not at all connected with each other.

Ratio analysis simplifies the comprehension of financial

statements. Ratios tell the whole story of changes in the financial condition of the

business. Ratio analysis helps in planning and forecasting. Over a period of time a

firm or industry develops certain norms that may Indicate future success or

failure. If relationships changes in firm’s data over different time periods , the

ratios may provide clues on trends and future problems.

Thus, “ratios can assist management in basic function of

forecasting, planning, coordination, control and communication.”

A ratio is customarily expressed in three different ways

.

1. It may be expressed as “proportion” between two figures,

E.g. 2:1

2. Second is to express it in the form of “percentage”,

E.g. 30%

3. Third is to express it as “rates”,

E.g. 6 times a year

UTILITY OF RATIO ANALYSIS

1. Liquidity position:-

With the help of ratio analysis, conclusion can be drawn

regarding the liquidity position of firm. The liquidity position of a firm

would be satisfactory if it is able to meet its current obligations when they

become due.

2. Long-term solvency:-

This aspect of the financial position of a borrower is of concern

to the long term creditors, security analysis and the present and potential

owners of a business.

3. Operating efficiency:-

It throws light on the degree of efficiency in the management

and utilization of its assets. It would be recalled that the various activity

ratios measure this kind of operational efficiency.

4. Over-all profitability:-

The management is concerned about the ability of the firm to

meet its short-term as well as long term obligations to its creditors, to

ensure a reasonable return to its owners and secure optimum utilization of

the assets of a firm.

5. Inter-firm comparison:-

Ratio analysis is not only throws light on the financial position

of a firm but also serves as a stepping stone to remedial measure. This is made

possible inter-firm comparison/comparison with industrial averages.

6. Trend analysis:-

Whether the financial position of a firm is improving or

deteriorating over the years. This is made possible by the use of a trend analysis.

TYPES OF RATIO

1. Solvency ratio :-

a. Short term solvency (liquidity)

> Current ratio.

> Liquidity ratio.

b. Long term solvency

> Debt-equity ratio.

> Total debt to owners fund

> Interest coverage ratio. Etc.

2. Profitability :-

> Gross profit ratio.

> Net profit ratio.

> Return on assets ratio.

> Return on capital employed.

> Operating profit ratio

3. activity ratio :-

> Inventory turnover ratio.

> Debtors turnover ratio.

4. EARNINGS :-

> EARNING PER SHARE .

DATA ANALYSIS & INTERPRETATIONCALCULATION OF RATIO

1. Solvency ratio :- (Liquidity Ratios)

Current ratio :-

The current ratio is the ratio of total current assets to

total current liabilities. The ideal current ratio of any firm is 2:1. The current ratio of a

firm measures its short- term solvency, that is, its ability to meet short term obligations.

The higher the current ratio, the larger is the amount of rupees available per rupee of

current liability, the more is the firm’s ability to meet current obligations and the greater

is the safety of funds of short –term creditors

Formula:-

C U R R E N T R AT I O=C U R R E N T A S S E T S

C U R R E N T L I A B I L I T I E S

Table: - 1

( IN CR)

Year 2010-'11 2011-'12 2012-'13 2013-'14 2014-'15

Current

assets

3569.16 5535.18 6409.53 8263.86 9678.1

Current

liabilities

3679.55 5591.09 6283.85 6944.42 7932.87

Current

ratio

0.97 0.99 1.02 1.19 1.22

Chart: - 1

2010-'11 2011-'12 2012-'13 2013-'14 2014-'150

0.2

0.4

0.6

0.8

1

1.2

1.4

INTERPRETATION :-

From graphical representation we can observe that

current ratio improve from 2011 to 2015 means firm’s liquidity improved year by

year .Higher ratio is preferable because it shows better short term solvency. But very

high ratio of current asset to current liability is indication of poor credit management

and firm may not make full use of its borrowing capacity.

QUICK RATIO:

This ratio is also called liquid ratio or acid test ratio. It

establishes a relationship between quick assets and quick liabilities. Quick assets

includes all the current assets except stock & prepaid expenses and quick liabilities refer

to liabilities which are repayable within a short period. It refers to current liabilities

excluding bank overdraft & cash credit.

The actual quick ratio has to be compared with the

standard or ideal quick ratio of 1:1. If the actual quick ratio is equal to or more than the

standard quick ratio of 1:1, the conclusion can be that the concern is liquid, and so,

it can pay off its short-term liabilities out of its quickly realizable assets without

any difficulty. On the other hand, if the actual quick ratio is less than the standard ratio

of 1:1, the conclusion can be that the concern is not liquid.

Formula:-

Where,

Quick Assets = current assets-(stock + prepaid expenses)

Quick Liabilities = current liabilities - bank O

Q U I C K A S S E T S=L I Q U I D A S S E T S

L I Q U I D L I A B I L I T I E S

Table: - 2

(IN CR)

year 2010-'11 2011-'12 2012-'13 2013-'14 2014-'15

Currentassets

3569.16 5535.18 6409.53 8263.86 9678.1

inventories 871 1450 1553 1827 1500

current liabilies

3679.55 5591.09 6283.85 6944.42 7932.87

Quick ratio

0.73 0.72 0.77 0.93 1.02

Chart :- 2

2011 2012 2013 2014 20150

0.2

0.4

0.6

0.8

1

1.2

INTERPRETATION:-

Quick ratio shows liquidity of firm. It is same as

current ratio but it’s more stringent than current ratio. Because it exclude inventory and

advance means those current assets which can not easily convert in cash. Liquidity in

terms of ability of firm to meet obligation immediately and that can be current assets and

all those assets which can easily convert into cash.. So from table we can see quick

ratio improved means firm’s liquidity improved. It shows decrease in liquid liabilities.

DEBT TO EQUITY RATIO:-

D E BT E Q U I T Y R AT I O=LO N G T E R M D E B T

S H AR E H O L D E R S E Q U I T Y

Debt= Current Liabilities Shareholder’s equity= Equity and preference share Capital + Past accumulated profits - Past accumulated loss - Discount on issue of share

T ABLE:-3

( in cr)YEAR 2010-'11 2011-'12 2012-'13 2013-'14 2014-'15

Long termdebt.

2321.1 3174.22 3227.07 3745.16 3987

Share holderequity

293.62 294.52 295.16 295.16 295.87

Debt to equity ratio

7.91 10.77 10.93 12.69 13.48

chart:-3

INTERPRETATION:-

As per Chart debt ratio is very low in year 2013-'14 compare to other year it shows in year 2010-'11 debt proportion is less compare to owner’s fund which may dilute control over operation because no of equity shares increase. At same time its very good condition from creditor’s point of view becausefirm have enough fund to meet obligation .

Ratio is very high in year 2010-'11 is dangerous for creditors. If firm fail financially, creditors loose very high at a same time interruption of creditors increase in operation.

2010-'11 2011-'12 2012-'13 2013-'14 2014-'150

2

4

6

8

10

12

14

16

DEBT TO CAPITAL RATIO:-

D E BT T O C A P I T A L R AT I O=LO N G T E R M D E BT

P E RM AN E N T C A P I T A L

The Relationship between Creditor’s funds and owner’s capital can also be expressed in terms of another leverage ratio. Here, the outside liabilities are related to the total capitalization of the firm and not merely to the shareholder’s equity.

TABLE:-4

( in cr)

Year 2010-'11 2011-'12 2012-'13 2013-'14 2014-'15

Long term debt

5739.49 5742.03 4833.57 4876.64 8185.1

Permanentcapital

6078.84 6072.38 5822.87 5914.89 10970.39

Debt to capital ratio

0.94 0.94 0.83 0.82 0.74

chart:-4

INTERPRETATION:-

Ratio decreased from 2010 to 2015 Lower ratios is

better condition for creditors of firm. It means proportion of debt in total capital

employed is very less compared to owner’s firm which shows sufficient safety margin

available to creditor.

But it reduces possibility of equity trading so firm

can not utilize its ability for capital gearing. Initially ratio is very high which is

dangerous for firm’s creditors.

2010-'11 2011-'12 2012-'13 2013-'14 2014-'150

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

INTEREST COVERAGE RATIO

This ratio measure the debt servicing capacity of the firm in so

far as fixed interest on long term loan is concerned. It is determined by dividing the

profits or earnings before interest and taxes by the fixed interest charges on loans.

This ratio, as the name suggests shows how many times the

interest charges are covered by the EBIT out of which they will be paid .In other words,

it indicates the extent to which fall in EBIT is tolerable in the sense that the ability of the

firm to service its debt would not be adversely affected .

Formula:

I N T E R E S T C O V E R AG E=E B I T

I N T E R E S T

TABLE:-5

(in cr)

year 2010-'11 2011-'12 2012-'13 2013-'14 2014-'15

Ebit 4005.96 4344.78 5349.09 5491.99 5794.78

interest 192.78 193.19 224.85 311.16 282.95

Interest

coverage

ratio

20.78 22.49 23.79 17.65 20.48

chart:-5

INTERPRETATION:

From the table, we can see initially ratio is low

during initial period but after ratio increase .There is coverage of four times which

indicate that fall in operating earning to only up to one fourth level can be tolerated arger

is the ratio means greater is the ability of the firm to handle fixed charge liabilities and

the more assured is the payment of interest to the creditors. However too high a ratio

may imply unused debt capacity. In contrast, low ratio is a danger signal the firm is

using excessive debt and does not have the ability to offer assured payment of interest to

the creditors.

2011 2012 2013 2014 20150

5

10

15

20

25

PROFITABILITY RATIO

A company should earn profit to survive and grow

over a long time. Profits are essential, but it would be wrong to assume that every

initiated by management of a company should be aimed maximizing profit fact that

sufficient profit must be earned to sustain the operations of the bus in be able to obtain

funds from investors for expansion and growth and to can towards the social overhead

for the welfare of the society.

Profit is ultimate output of a company, and it will have

no future fails to make sufficient profit. Therefore, the financial manager should

continue valuate the efficiency of its company in term of profit. The profitability ratio

calculated to measure the operating efficiency of the company. Besides management of

the company, creditors and owners are also interested in the profitability firm.

Generally, two major types of profitability ratios are calculated:

# Profitability in relation to sales

# Profitability in relation to investment

GROSS PROFIT MARGIN:

Gross profit is the result of relationship between prices,

sales volume and costs .A change in the gross margin can be brought about by change in

any of these factors. The gross margin represents the limit beyond which fall in sales

prices are outside the tolerance limit. Further the gross profit ratio/margin can also be

made use of determining the extent of loss caused by theft, spoilage, damage and so on

in the case of those firms which follows the policy of fixed gross profit margin in pricing

their products.

Formula :-

G R O S S P RO F I T M A RG I N=G RO S S P R O F I T

S A L E S*100

TABLE: 6

year 2010-'11 2011-'12 2012-'13 2013-'14 2014-'15

Gross

profit

3040.44 3191.72 3995.58 3859.4 3872.02

sales 23460.26 31853.53 40441.16 40508.5 40844.1

G.p. ratio 12.96% 10.02% 9.88% 9.52% 9.48%

Chart:-6

INTERPRETATION:

A high gross profit margin relative to the industry average

implies that he firm is able to produce at relatively lower cost. It’s sign of goods

management. The more the firms maintain it, better would for his firm itself.

A high gross profit margin relative to the industry average

implies that he firm is able to produce at relatively lower cost. Company’s gross profit

increase a sign of goods management. The more the firms maintain it, better would for a

high gross profit margin relative to the industry average implies that Company’s gross

profit increase a sign of goods management. The more the firms maintain it.

2010-'11 2011-'12 2012-'13 2013-'14 2014-'150

2

4

6

8

10

12

14

NET PROFIT:-

N E T   P R O F I T  R AT I O=N E T   P RO F I T

S A L E S*100

Net profit margin is indicative of management abilities

to operates the business with sufficient success not only to recover from revenue

of the period, cost of merchandise or service , the expense of operating the

business and the cost of borrowed funds but also leave a margin of reasonable

compensation to the owner for providing their capital at risk.

TABLE:-7

Year 2010-'11 2011'-12 2012-'13 2013-'14 2014-'15

Net profit 2662.1 2878.89 3352.82 3758.35 3812.28

sales 23460.26 31853.52 40441.16 40508.5 40681.47

Net profit ratio.

11.14 8.9 8.17 9.11 9.34

Chart:-7

INTERPRETATION:-

From graph we can see net profit margin was

initially negative means initially firm's ability was so poor that it could not meet even

expenses. Than after firm’s ability improved day by day. On an average net profit was

high in the year 2010-'11 compare to other years .High net profit margin ensure adequate

return to the owners as well as enable a firm to with stand adverse economic

conditions .so we can say firm’s performance was better in year 2011-'12 compare to

other year.

2010-'11 2011-'12 2012-'13 2013-'14 2014-'150

2

4

6

8

10

12

RETURN ON CAPITAL EMPLOYED:-

E B I T R E T U R N O N C A P . E M P LO Y E D=E B I T

S H A R E C A P I T A L+R E S E R V E S+LO N G T E R M LO A N

Here the profits are related to the total capital

employed. The term capital employed refers to long term fund supplied by the creditors

and owners of the firm. Thus the capital employed basis provides a test of profitability

related to the source of long term funds. It would provide sufficient insight into how

efficiency the long term funds of owners and creditors are being used. The higher the

ratio, the more efficient is the use of capital employed.

TABLE:-8

year 2010-'11 2011-'12 2012-'13 2013-'14 2014-'15

Eat +int.-tax 255.15 110.31 409.59 1033.32 841.26

Avg. totalcapital employed

7829.37 7493.87 7152.33 7172.48 9367.5

ROCE (%) 3.25 1.47 5.72 14.4 8.98

Chart:-8

INTERPRETATION:-

From the table, we can see ratio is very high in 2013-'14

compare to other year. Ratio improving year by year .From ratio we can see firm utilize

very efficiently its capital employed. Thus the capital employed basis provided a

test of profitability related to source of long –term funds.

In year firm utilized its capital very efficiently which

make firm to earn more profit on capital employed. In year ratio is very less in year

2011-'12 means firm didn't utilized its capital fully.

So if firm want to increase its revenue as well enhance its

growth, firm must give more important on utilization on capital employed.

2010-'11 2011-'12 2012-'13 2013-'14 2014-'150

2

4

6

8

10

12

14

16

RETURN ON ASSET:-

R et u r nO n A s se t s=E AT ( N et P r o f i t A f t e r T a x )

A v er a g eT o t a l A s se t s*100

Profitability ratio is measured in terms of the

relationship between net profits and assets. The Return on assets may also be called as

profit to asset ratio.

TABLE:-9

Year 2010-'11 2011-'12 2012-'13 2013-'14 2014-'15

EAT 59.99 590.15 530.18 600.14 650.24

ASSETS 5774.36 6234.22 13159.32 15148.7 18007.15

RETURN

ON ASSETS

(IN %)

1.03 9.45 4.02 3.96 3.61

Chart:-9

2010-'11 2011-'12 2012-'13 2013-'14 2014-'150

1

2

3

4

5

6

7

8

9

10

INTERPRETATION:-

This ratio gives the relationship between profit and

asset. From table we can see ratio is negative in year 2011and it increase from 2011 to

2015. So we can see firm was able to earn higher profit in year 2010 on asset.

The Return on assets measures the profitability of the

total funds /investments of a firm .so we can say year by year firm’s ability to earn.

OPERATING PROFIT RATIO:-

O pe r a t i n g R a t i o=C o st o f g oo d s o l d +o p er a t i n g e x pe n se

S a l e s* 100

O pe r a t i n g P r o f i tS a l e s

*100

It is a ratio showing relationship between cost of

goods sold plus operating expenses and sales. It shows the efficiency of the

management this ratio suggests that a particular share of selling price is absorbed by

cost of sales and other operating expenses and the remainder is left for the owner of

the business.

Hence, the higher this ratio, the less profitable it is,

because it would prove insufficient to pay dividend and create necessary reserves.

TABLE:- 10

year 2010-'11 2011-'12 2012-'13 2013-'14 2014-'14

EBIT 208.97 472.25 1542.46 1207.01 1578.42

SALES 1764.78 3700.95 6116.71 6182.58 6207.2

Operating ratio ( in %)

11.84 11.73 25.22 19.58 25.43

Chart:-10

INTERPRETATION:-

From the table, we can see net profit margin was

initially negative means initially firm’s ability was so poor that it could not meet even

expenses. Than after firm’s ability improved day by day.

On an average net profit was high in the year 2012-'13

compare to other years .High net profit margin ensure adequate return to the owners as

well as enable a firm to with stand adverse economic conditions .

So we can say firm’s performance was better in

year2012-'13 compare to other year.

2010-'11 2011-'12 2012-'13 2013-'14 2014-'150

5

10

15

20

25

30

Activity ratio:-

INVENTORY TURNOVER RATIO

formula:-

I n ve n t or yT u r no ve r Ra t i o=C o st o f G oo d s S o d

A v e r a g eS t oc k

The number of times the average stock is turned over

during year is known as inventory turnover. It is computed by dividing the cost of goods

sold by the average stock in the business. The ideal value of this ratio is 8 to 12 times.

The ratio is very important in judging the ability of management with which it can move

the stock. The higher the turnover, the more profitable the business would be. A low

turnover indicates accumulation of slow –moving, obsolete and low- quality goods,

which is a danger signal to the management.

Low figure are generally poor as they indicate

excessively high low moving stocks. At the end of the scale, and apart from advertising

agencies and other service industries, ready mixed concrete companies probably have

one of the better inventory figures

.

Measure the number of times a company converts its

stock into sales during the year. When examining this ratio it should be born in that

different companies will have varying levels of stock turnover depending on what they

produce and the industry they operate in.

TABLE:-11

year 2010-'11 2011-'12 2012-'13 2013-'14 2014-'15

Cost of

goods

sold

23464.81 31861.85 43410.67 40512.45 46391.11

Average

inventory

1694.21 2358.39 2419.77 2803.63 3012.41

Inventory

turnover

ratio

13.85 13.51 17.94 14.45 15.4

Chart:-11

2011 2012 2013 2014 20150

2

4

6

8

10

12

14

16

18

20

INTERPRETATION:-

This ratio show mainly how fast inventories is sold .In year

ratio is highest it means inventory sold at very rapid rate which increase liquidity

position of firm.

From graph we can see on an average ratio remain constant.

But ratio is not so high so firm is not so much efficient to convert into cash .Most of

its inventory remain idle in storage.

DEBTORS TURN OVER RATIO:-

D eb t o r sT u r no ve r R a t i o=N e t C r e d i t S a l e sAv e r a g e D e b t o r s

Net credit sales =Gross credit sales –return

Debtor turnover ratio supplements the information

regarding the liquid one item of current assets of the firm. The ratio measures how

rapidly debt collected. A high ratio is indicative of shorter time lag between credit sales

and collection. A low ratio shows that debts are not being collected rapidly.

TABLE:-12

year 2010-'11 2011-'12 2012-'13 2013-'14 2014-'15

SALES 3261.88 1764.78 3700.95 6116.71 6182.58

AVERAGE

DEBTORS

Rs

482.98 310.76 339.26 432.48 505.73

ratio 6.75 5.68 10.9 14.14 12.22

Chart:-12

INTERPRETATION :-

This ratio show mainly how fast inventories are sold. In year

2013-'14 is highest it means inventory sold at very rapid rate which increase

liquidity position of firm .From graph we can see on an average ratio remain constant .

But ratio is not so high so firm is not so much efficient to convert into cash .Most of its

inventory remain idle in storage.

From above data it is clear that the turnover of Sidhhivinayak

Motors pvt. Ltd. is constantly increased.

2010-'11 2011-'12 2012-'13 2013-'14 2014-'150

2

4

6

8

10

12

14

16

Earnings:-

EARNING PER SHARE:-

E a r n i n g P er S h ar e=N e t P r o f i t A va i l a b l e t o eq u i t y s ha r e ho l d e r s (E AT P r e f .d i v i d e nd )

N o .o f O r d i n ar y S ha r e

It measures the profit available to the equity shareholders on per

share basis, that is the amount that they can get on every share held. It is calculated by

dividing the profits available to the shareholders by the number of the outstanding shares

.it is measure of profitability of firm from owner’s point of view should be used

cautiously as it does not recognize the effect of increase in equity capital as a result of

retention of earning .

TABLE :- 13

YEAR 2010-'11 2011-'12 2012-'13 2013-'14 2014-'15

EAT 2662.1 2878.89 3352.82 3758.35 4012.25

Preference

dividend

- - - - -

No. of

ordinary

share.

61.4 61.4 61.4 61.6 63.52

EPS 43.36 46.89 54.61 61.02 63.17

CHART:-13

INTERPRETATION:-

Earnings per share represented profit available to equity share

per share. From graph we can see from year 2011 TO 2015 EPS increase year by year.

It means profit available to share holder increase year by year,

it does not mean profitability increase year by year.

It is because retention of profit increases return per share. In

year earnings per share declined may be because of no of share increase means either

new share holder or bonus share issued.

2010-'11 2011-'12 2012-'13 2013-'14 2014-'150

10

20

30

40

50

60

70

CONCLUSION

Viewing MAHINDRA INTERNATIONAL from every angle, it can

be conclude that the entire unit is progressing well because kinetic has

provided excellent quality of product due to sophisticated technology and

highly qualified technical & management staff. By this way, they can able

to create a good demand for their product and satisfy the consumer.

In the report presented, an attempt has been made to focus on the

ratio analysis through SHIDDHIVINAYAK MOTORS OF MAHINDRA

INTERNATIONAL at Rajkot. It was an excellent opportunity and I am

glad that I was provided an opportunity to make an internship report on

such a famous company.

It can be said that credit of success of the company goes to the

management as well as workers and employee that MAHINDRA INTER-

NATIONAL has bring bright future.

In Short, Its grip on every aspect of the business is right which helps it in

fight every uncertainty. It is continues to do well, sure its future will be full

of success. Again, I am thanking to all who directly or indirectly helped

me.

SUGGESTIONS:-

After analyzing the ratio and watching the whole condition

of the business. I would like to give suggestions as bellow.

The operating expenses are very high .such as a raw material

research &extension, packaging, power & fuel etc. In this expense raw material

consumption is the most and company can never controlled. Such expenses, because

SIDDHIVINAYAK MOTORS PVT. LTD. Is expanding its network year by year. So

plant machinery consumption, operation expenses and other expenses will be increase in

future.

So the firm should more focus to increase in sales, because

selling is being increased more and more company can achieve such an expenses. So

increasing the selling of the products is necessary.

In the globalization world when cutthroat competition is

prevailing in all developed or developing country so to survive in the market, high

qualified persons are more necessary for every firm. Due to, lack of salary and other

Facilities qualified person cannot stay in the particular firm. So, for SIDDHIVINAYAK

MOTORS PVT. LTD manufacturing ltd. should take necessary steps for this. Firm

should increase extra facility or high salary.

In the marketing field, to increase the market of new

products, Firm should use more and more distribution channels like

SIDDHIVINAYAK MOTORS PVT. LTD retailer, and direct selling and media like

more advertisement in television, news-paper posters, board and many more.

BIBLIOGRAPHY

Reference Book:

Financial Management.

- By Khan & Jain.

Websites:

www.Mahindra.com

www.Mahindragroup.com

www.Mahindra & Mahindra ltd.com

www.Mahindraworld.com