Mahindra – Renault

INTEGRATED ASSIGNMENT ON

MAHINDRA – RENAULT

Project Guide: Submitted By:

AJAY SINGH

SESSION: 2009-2012

PREFACE

Our comprehensive study on Mahindra Renault is mainly about application of theoretical knowledge to practicality in marketing of the product. It also gives the detailed study of environmental factors which effect the Market and the customer. ACKNOWLEDGEMENT.

PROJECT WORK IS NEVER THE WORK OF AN INDIVIDUAL IT IS MORE A COMBINATION OF IDEAS, SUGGESTION, CONTRIBUTION AND WORK INVOLVING MANY FOLKS. ONE OF THE MOST IMPORTANT PARTS OF WRITING A REPORT IS TO CONVEY THANKS TO THOSE WHO HAVE CONTRIBUTED TO IT.

MY THANKS MUST GO TO ______, WHO WAS MY GUIDE FOR THE EXCELLENT ADVICE, GUIDANCE AND ENCOURAGEMENT GIVEN TO ME DURING THE ENTIRE COURSE OF PROJECT WORK.

I also wish to extend my appreciation and thanks to ______the project manager for their useful blessings contributions in writing this paper.

TRULY

AJAY SINGH TABLE OF CONTENT

SERIAL NO TOPIC

1. INTRODUCTION

2. PRODUCT INFORMATION

3. OBJECTIVE OF THE STUDY

4. METHODOLOGY

5. FINDING & OBSERVATIONS

COMPARISIONS OF FINANCIAL STATEMENT

7. ANNEXURES INTRODUCTION

21 March 2005,, Mumbai: Renault SA, France's second-largest carmaker, formed a 125 million euro ($165 million) venture with Mahindra & Mahindra Ltd to make Logan sedans in India, tapping into Asia's fourth-largest car market.

The venture has built 50,000 cars a year beginning in 2007 for Indian buyers, Mahindra said in a statement to the Bombay Stock Exchange today. Mahindra, India's biggest maker of sport-utility vehicles and tractors, will own 51% of the company, with Renault holding the remainder.

the first car to be launched is "The Logan" Mahindra Logan's pricing is still hazy. It is now dominated by the Honda City and Ford fiesta. In Europe, the Logan costs barely $6100.VISION STATEMENT

COMPANY’S PROFILE

In 2005, the company entered into a joint venture with renault of France for the manufacture of a mid- sized sedan, Logan, a newly developed vehicle that meets all the European regulations for emissions and safety. The Logan is expected to be launched in the Indian market in 2007. M&M has also launched a joint venture with International Truck & Engine Corporation, one of the leading commercial vehicle producers in the USA, for manufacture of trucks and buses in India. The Farm Equipment division was established in 1963 in the form of a joint venture with International Harvester Inc., and Voltas Limited, and christened as the International Tractor Company of India (ITCI). In 1977, ITCI merged with M&M and became its Tractor Division. After M&M's organisational restructuring in 1994, this M&M is the market leader in the Indian MUV and tractor segments of the automotive industry.

Background

Mahindra & Mahindra Limited (M&M), the flagship company of the US$ 3 billion Mahindra Group, was set up in 1945 to make general-purpose utility vehicles for the Indian market. It soon branched out into manufacturing agricultural tractors and LCV and later expanded its operations from automobiles and tractors to other sectors. The company has recently started a new division, Mahindra Systems and Automotive Technologies (MSAT) in order to focus on developing components and to offer engineering services. M&M has two main operating divisions – Automotive division and Farm Equipment division. The company entered into collaboration with Willys Overland Corporation (now part of the Daimler Chrysler group) to import and assemble the Willys Jeep for

the Indian market. Thereafter, in 1965 the company started producing LCV. It went on to develop its manufacturing technology to indigenously produce vehicles within a short time of signing the collaboration agreement with willys. Today, the Automotive Division of M&M manufactures and

markets MUV, LCV and three-wheelers.

MAHINDRA & MAHINDRA LIMITED

Company Products Established Founder Distribution Production plants M&M Automobiles 1945 K.C. Mahindra & Europe, Russia, India Tractors, Auto J.C. Mahindra with Asia, Africa, USA,

Components Ghulam Mohammed South America.

The promoters of the company along with persons acting in concert hold 22.97% of the Company’s shares. The total foreign investment in equity constitutes 46.91%, the largest contributor being FIIs with 34.45% (excluding Aranda Investments Mauritius Pte. Ltd, as it is included in persons acting in concert). Domestic Financial Institutions including insurance companies hold 15.26% of the equity with the remaining being held by public and other corporate bodies.

Products and brands

Over the years, the Mahindra brand of vehicles has come to represent high quality, ruggedness, durability, reliability, easy maintenance and division was re-christened the Farm Equipment Sector Division. Today M&M is the largest manufacturer of tractors in India. It designs, develops, manufactures and markets tractors as well as implements which are used in conjunction with tractors. In addition to these two divisions, M&M has a defence system division. The Mahindra Defence System (MDS) was set up in mid 2000 with a view to providing a sharp focus to service the Defence sector. With the announcement by the Government regarding participation of private sector in defence, MDS intends to become a major defence equipment/ product manufacture and supplier. The company now plans to set up Mahindra Research Valley, a facility that will house the company's engineering research and product development wings under one roof. M&M's operations are also supported by its subsidiary Mahindra and Mahindra Financial Services Ltd, that finances around 40 per cent of the company's MUV sales and 20 per cent of the tractor sales. The Automotive division of M&M has manufacturing plants at Mumbai, Nashik and Igatpuri in the state of Maharashtra, at Zaheerabad (Andhra Pradesh) and at Haridwar (Uttaranchal).The Farm Equipment division has two main tractor manufacturing plants located at Mumbai and Nagpur in Maharashtra and satellite plants located at Rudrapur (Uttarachal), Jaipur (Rajasthan) and Jiangling (China).

Type of vehicles Name of Products

Utility Vehicles Commander, Maxx, Bolero, Scorpio Pickups / Vans Pik-up, Utility, Bolero Camper LCV Cabking,Tourister Minibus, (for JV with ITEC) Loadking Three-Wheelers Champion, Alfa Defence vehicles Rakshak, 550 XD Alternative Fuel Bijlee, Tourister, CNG Minibus Vehicles

Category of tractor

The tractor industry in India is segmented by horsepower (HP) - below 30 HP (lower segment), between 30-40 HP (mid-segment) and above 40 HP (higher segment). M&M's Farm Equipment division has a presence in all three Segments with sales of more than 65,000 tractors in 2005, including exports. Under the MDS division, M&M supplies MUV to the Indian security forces. It has extended its product range to include variants like double stretcher ambulances, weapon carriers, rapid intervention vehicles, water trucks, light logistic carriers and station wagons. MDS also carries out bullet proofing of vehicles and cash in transit vans. MDS has offered RAM 2000 light armoured multi-role vehicle for trials to the Indian army. RAMTA Division of Israel Aircraft Industries, Israel, has developed these vehicles and MDS intends to eventually manufacture this vehicle in India with a high degree of indigenisation. operational economy. The Automotive division that manufactures and markets MUV and LCV has a customer profile that includes individuals, traders, entrepreneurs, contractors, tour operators, taxi owners, car hire companies as well as government departments and institutions and the Indian Army. In the year 2004 vehicle production and sales reached an all-time high for the company and crossed the 100,000 mark for the first time. In 2005, the company sold more than 1,45,000 vehicles, including exports. The company's indigenous development of its model Scorpio has received international attention for the fact that it cost barely US$ 120 million to develop, whereas globally developing such a vehicle can cost US$ 0.6-1.5 billion .

The Farm Equipment division manufactures agricultural tractors, implements that are used in conjunction with tractors and industrial engines. are to be used for product development, modernisation, and expansion by internal growth as well as overseas acquisitions.

M&M's contribution in making ‘Made in India’ global

M&M has nurtured ambitions to be a global player in the auto industry and has been active in developing relationships that would enable it to access technology and markets. This is evident from the joint ventures that it has formed with International Truck and Engine Corporation of the US and the Renault Group of France. M&M holds majority stake of 51 per cent in both these joint ventures.

M&M's joint venture with International Truck and Engine Corporation was formed in June 2005 to

Financial analysis

Sales revenues have increased at a CAGR of 10.6 per cent between 1999 and 2005.This is a result of the continued growth in the automotive industry as well as a substantial recovery in the tractor industry. Export revenues have grown at an impressive CAGR of 18.6 per cent during this period as the company has ventured into new overseas markets. Profitability of the company has improved over the years due to a restructuring exercise that has resulted in optimal utilization of capacities and improved cost competitiveness. The company has outsourced some of its non-core activities in addition to rightsizing business operations. In 2004 the company raised US$ 100 million through the issuance of a five-year zero coupon foreign currency convertible bonds (FCCB) which has provided the company with substantial low cost funds to finance its expansion and product development plans. The debt-equity ratio remained low at 0.52 in 2005, thus giving the company financial flexibility for the future. In 2006, Mahindra & Mahindra Ltd successfully completed its US$ 200 million FCCB issue with broad geographical distribution of investors from Europe and Asia. The issue received overwhelming response and was oversubscribed. The proceeds

Americas

Argentina

Costa Rica

Dominican Republic

Maxico

Surinam

Uruguay

USA

West Indiesurope

France

Georgia

Italy

Russia

Turkey

UkraineAsia Pacific & Middle East

Australia

Bangladesh

China Kuwait

Malaysia

Maldives

Nepal

Oman

Saudi Arabia

Sri Lanka

Global presence

Africa

Angola

Ethiopia

Mozambique

Nigeria

Rwanda

South Africa

Tanzania

Uganda

88 manufacture and market LCV, MCV and HCV for both the domestic and export markets in Asia, Middle East, Africa, Russia and Central Europe. The company, christened Mahindra International Pvt Ltd, will have a project outlay of US$ 90 million. M&M has sold its LCV business to the venture. This venture would also source components for International's North American operations and provide engineering services to it. In February 2005, M&M flagged off Mahindra Renault Ltd, a joint venture with France's Renault Group, which would make and sell Renault's car, Logan in India. This joint venture will invest US$ 155 million and target to sell around 50,000 cars annually under the Mahindra Renault name in the mid-size car segment in India. Similarly, the company has also entered into an agreement with Malaysia-based USF-HICOM Sdn Bhd to market its sports utility vehicle Scorpio in that country. M&M's Automotive division exports its products to several countries in Africa, Asia, Europe and Latin America. M&M crossed a global milestone - for the first time the company launched a new vehicle overseas even before introducing it in the domestic market. The Scorpio Pik-Up saw a maiden unveiling in Johannesburg, South Africa in April 2006. The all new Scorpio was also launched globally at the same venue simultaneously, a month after its India launch. It entered the markets of South Africa, Uruguay and Malaysia for the first time in 2004-05. It exported 3046 fully built vehicles in fiscal 2005 and is expected to near double its exports in fiscal 2006. The indigenously developed Scorpio is being exported to the markets of South Africa, Italy, France, the Middle East and Malaysia. In the long run, the company plans to set up assembly operations in countries such as Russia and Malaysia once demand from overseas markets reach a minimum economic demand size. Under its Farm Equipment division, M&M has grown to become the fifth largest tractor manufacturing company in the world with sales supported by its branch office and assembly operations at Brisbane. A few months later the company entered China, the third largest tractor market in the world after India and USA. It launched its Chinese operations in July 2005, through Mahindra (China) Tractor Co Ltd, an 80-20 joint venture with Jiangling Motor Co Group (JMCG), with M&M having a greater equity stake. Mahindra (China) Tractor Co Ltd has acquired the tractor manufacturing assets from Jiangling Tractor Company, a subsidiary of JMCG.The plant has the capacity to produce 12,000 tractors per year in the 18-33 HP segment. Strategically this venture confers on M&M a quick entry in China as well as export markets. M&M also plans to utilise the partnership with JMCG to source components from China and to sell tractors in China through

JMCG's network of more than 11 lakh tractors since inception. Besides being the leader in the domestic market for 23 consecutive years, the Farm Equipment division has also found significant success in the international market. Around 90 per cent of the tractor exports are to the eve loped market of the USA for which the company has indigenously designed higher HP models (75 HP). M&M operates two assembly facilities in the US - one at Tomball,

Texas and the other at Calhoun, Georgia, both of which are fully functional units, along with full service capabilities. M&M's tractor business in the US, which clocked a turnover of US$ 128 million in FY05 is supported by a strong dealer network. Mahindra USA clocked sales of 10,000 tractors for the first time last fiscal. Other major export markets for tractors include Nepal, Bangladesh, Sri Lanka, Uganda, Nigeria, and Zambia. M&M launched its Australian operations with the launch of Mahindra Australia in February 2005, which is critical to gain acceptance in key global markets. The farm equipment sector created history by becoming the first tractor company in the world to secure the coveted Deming Prize. M&M has also developed capabilities to develop new products that can meet global standards. Scorpio, which was launched in 2002 has been successful in the market and was declared to be the "Car of the Year" by CNBC Autocar, BBC Wheels and Business Standard Motoring.

• Capitalising on outsourcing opportunities:

One of the emerging trends in the global auto industry is outsourcing of sourcing and business processes to low costs countries like China and India. This has been primarily driven by the increasing competitiveness of the advanced markets and the need to cut costs in order to remain profitable. This has created a number of opportunities to Indian players. M&M has acquired expertise to capitalise on these opportunities and can offer global OEM and tier.

Factors fuelling M&M's global initiatives

M&M's global ventures have been strategically thought out and well planned for. There are several factors for its success in the international markets, some of which are: • Presence in key markets: After establishing its leadership in the Indian automotive market, M&M has begun to seek opportunities in global markets that have growth potential. M&M has set up subsidiaries in South Africa and Italy for accessing the African and European automotive markets. M&M has been selling its vehicles globally under the “Mahindra” badge. USA and China are key markets for tractors globally. Besides establishing a sizeable presence in the US market, M&M acquired a tractor facility from Jiangling Motor Group of China to get access to the Chinese market.

• Emphasis on quality and R & D: M&M has focused on improving the quality of its products, Simultaneously, M&M will continue its focus on achieving cost leadership through focused cost optimisation, value engineering, improved efficiency measures like supply chain management and countrywide connectivity of all its suppliers and dealers and exploiting synergies between its divisions. 1 suppliers, products and services across the chain, right from the sourcing of steel to the design of systems.

• Joint ventures to access markets and technology: M&M has adopted the route of strategic partnerships to ensure access to products, technology and new markets. Its joint ventures with Renault, International Truck and Engine Corporation and JMCG are pointers to this fact.

Future plans

Going forward, the company's growth is expected to be driven by the Farm Equipment division in the backdrop of greater focus on the farm sector by the Government, improved agriculture infrastructure like irrigation and easier availability of rural credit. M&M with its range of tractors across all segments is well placed to keep pace with the market. The emerging second hand tractor market provides an interesting opportunity for the company. The Farm Equipment division has started an initiative 'Mahindra Vishwas' that aims at organising the second hand tractor market. This initiative will help generate additional new tractor sales as well as expanding the second hand tractor market. Under the Automotive division, the Logan, expected to be introduced in 2007, will give M&M a world-class product in the mid size passenger car segment, which is expected to be one of the fastest growing segments in the Indian passenger car industry. With MUV gaining popularity, the Scorpio's sales will continue to grow. With the company entering new export markets, it is expected to double its volume of exports within a year. This increase in volume will be driven by entry into selected large potential markets like Russia and launch of new products like the Scorpio Pick -ups.

Globalisation at a glance

• Joint ventures that it has formed with International Truck and Engine Corporation of the US and the Renault Group of France

• Exports of Automotive division to Africa, Asia and Europe and Latin America

• Fifth largest tractor manufacturing company in the world

• Around 90 per cent of the tractor exports are to the developed market of the USA for which the company has indigenously designed higher HP models (75 HP)

• Assembly operations in the US and Australia.

ABOUT THE MAHINDRA-RENAULT LOGAN Mahindra-Renault launches the premium Wide body logan

Logan launched on 4th april,2007 has been the target of many people willing to buy a low cost c segemnt car, a bold, muscular and feature-packed car, powered by a B-30 compatible 1.6l engine that decvelops 85 hp.It’s wider, it’s better. Logan gives the expression “spacious sedan” an entirely new meaning. Built around Renault’s famous space optimization design, the car redefines space and luxury. It’s loaded with trailblazing technology and advanced safety features. Its robust lines, strongly marked wheel arches and carved hood ensure it stands out in the crowd. The expansive interiors are tastefully done. The wide-body experience awaits you., after the Scorpio, from M&M Motor Corporation,Europe’s largest company Renault is making its debut n India, before being launched in Europe an many other countries

”..

Eco friendly car with Eco2 compatibility

The Logan sedan is fitted with an advanced ECO2 compatible engine. The Eco2 represents the future of Mahindra renault’s engine technology. It is designed to be compliant to Euro 4 and Euro 5 norms in future. Renault has developed this engine by picking up the best features of the engine series used so far in Mahindra-Renault vehicles and incorporating them in this latest series.

The 16-valve, 1.6 liter engine will produce a maximum power of 85 bhp @3100 rpm. The engine also has a high torque of 145Nm @5500 rpm, which makes driving comfortable.

Xtra large

The Logan sedan is the tallest, widest and the longest car in its class. It comes with the widest tyres, and a boot space of 500 liters. The ground clearance of SX4 sedan is 175 mm.

Feature packed sedan

Logan sedan is equipped with features that impart aesthetics, status, convenience and safety. It offers a music system integrated with the dashboard.The antenna is embedded in the glass, further enhancing aesthetics of the car. An illuminated key insert and variable instrument illumination are among the other unique features of the Logan.

Logan Versions

Mahindra Logan comes in total of 3 petrol (GL/GLE/GLS) and 2 diesel (DLE/DLS) variants. The *LS versions are the fully loaded version where all available features are included. The version *LE indicate they have power steering.

Variants Specifications

1.4l Petrol Engine (GL Version)

Engine Type : 4 Cylinder, 8 Valve Piston Displacement : 1390cc Maximum Output : 75bhp @ 5500 rpm Maximum Torque : 112 nm @ 3000 rpm Transmission Type : 5 Speed Manual

1.6l Petrol Engine (GLE/GLS)

Engine Type : 4 Cylinder, 8 Valve Piston Displacement : 1598cc Maximum Output : 84.5bhp @ 5500 rpm Maximum Torque : 128 nm @ 3000 rpm Transmission Type : 5 Speed Manual

1.5l Diesel Engine (DLE/DLS)

Engine Type : 4 Cylinder, 8 Valve Piston Displacement : 1461cc Maximum Output : 65bhp @ 4000 rpm Maximum Torque : 160 nm @ 2000 rpm Transmission Type : 5 Speed Manual

OBJECTIVE OF THE STUDY • Bringing theoretical knowledge of different subjects into practical implication.

• To understand the environment of the company.

• Collection of primary & secondary data for the purpose of analyzing and interpreting on various grounds such as demand analysis, demand forecasting etc.

• Making comparisons with the competitor.

METHODOLOGY

• Primary data: By way of interaction with the dealer sales assistants, dealer sales executives. Market segment is done and personals of West Delhi showrooms (Bhasin motors) are interviewed.

•

• Secondary data:

Website: WWW.Mahindrarenault.com

Journals: Marketing 4p’s.

FINDING AND OBSERVATIONS

Corporate Social Responsibility

IDTR IDTR (Institute of Driving, Training and Research) is a professional school for driving, managed and sponsored by MUL. It conducts one-day courses for both learners as well as those wanting a refresher course. The institute is well equipped for both practical as well as theoretical training using TV and other visual aids. Successful participants get an IDTR certificate, which enables them to procure a driving license from the regional transport office.

Interceptor Vehicle

Mahindra has also assisted traffic enforcement in Delhi through the sponsorship of Traffic Interceptors. Conceived by the Institute of Road Traffic Education (IRTE), the Interceptor project is being implemented in conjunction with Delhi Transport Department, the Delhi Traffic Police Mahindra -Renault India Limited. Three Maruti Interceptors equipped with State-of-the-art surveillance equipment were put on the roads in January 2001, taking the total number of interceptors in Delhi up to more then 8.

The Mahindra Renault Traffic Beat

Started in New Delhi in June 1995, Mahindra -Renault Traffic Beat on AIR FM is an innovative radio programme aimed at providing listeners with a regular and reliable update of the traffic situation.. The information is relayed by the Traffic policemen to the Traffic Police Headquarters where it is collected and collated, to commuters through AIR FM. Besides helping ease peak rush-hour traffic congestion, the programme also incorporates handy motoring and car care tips for the listener, enabling him to improve his driving skills and look after his vehicle better.

School Initiatives

To ensure that children later become responsible drivers, Maruti has begun producing several films on the safety of roads. These films have been sent to over 300 schools in Delhi, Chandigarh and Kolkata. To take the initiative further, we have sent road safety posters to schools. We have also sponsored painting competitions and All India School Quizzes with emphasis on the environment and traffic safety.

Handbook of Safe Driving Chief among Mahindra initiatives towards the NTC of Delhi is the Handbook of Safe Driving, which was produced in conjunction with the State Transport Department. The booklet is published in Hindi and English and provides comprehensive details on safe driving. It is distributed free of cost in the NCT of Delhi at all Licensing Authorities. A similar booklet has also been produced for Chandigarh.

Core belief Mahindra & Mahindra believes that its human resources are its richest assets. Thus a large part of the wealth created by the company must go towards the enrichment of its people.

Mahindra Foundation

This trust has been set up to contribute during the national calamities such as droughts, floods, and earthquakes. The Foundation in the past has helped patients requiring cancer treatment, kidney transplant etc. The Foundation has extended its support to numerous Academicians and other Professionals during their visits abroad to attend various conferences and conventions.

Mahindra United World College of India (MUWCI)

The Mahindra United World College of India (MUWCI) was founded in 1997, as a premier educational institute offering ‘true’ international education to students from India and abroad. The college is promoted by Mahindra & Mahindra Ltd., one of the leading business houses in India.

Situated about 40 Kilometers to the West of Pune, the MUWCI campus is built on the scenic shoulder of a hill which overlooks the Mulla river.

The global education offered by MUWCI brings together students of various nationalities for a pre-university degree. The school is global not only because of the International Baccalaureate degree, but because of the true international culture in which the students study, live and learn. Each years’ batch of about 100 students accommodates about 65 to 70 international students. The highly qualified global faculty brings in rich experience and expertise to put the students through a rigorous, yet stimulating two year learningexperience. This international mix of students from across 60 countries allows global exposure to the students which helps them open their minds and transcend all artificial barriers based on race, religion, ethnicity, class, gender or nationality. Keen focus is given on all-round development of the students, and the students are encouraged to become ‘agents of change’ by involving themselves in socially and environmentally relevant issues. The students also contribute to the local neighborhood through community service programs as an intrinsic part of their curriculum.

K C Mahindra Education Trust

Established in 1953 by the late K.C. Mahindra, M&M is the main sponsor of the KC Mahindra Education Trust. The trust's objective is the promotion of education at various levels, and it is involved in and contributes to various education initiatives. Every year the trust offers between 30 and 40 interest-free loan scholarships to post-graduate students going abroad for higher studies. The trust has instituted the Mahindra Search for Talent scholarships in 34 schools in India to encourage and reward students who have achieved academic excellence. These scholarships are awarded every year to over 300 students from all over India. These are students with good scholastic records who come from lower income groups and are keen on pursuing job-oriented diploma courses. The trust has also instituted the KC Mahindra Chair at the Institute of Science, Mumbai, since 1970 to encourage research in the field of nuclear chemistry. Besides, the trust has established the Mahindra Search for Talent scholarship at the Banasthali Vidyapeeth, a deemed university in the state of Rajasthan, where it has also recently started a management school called Wisdom - Women's Institute for Studies In Development-Oriented Management.

Nanhi Kali

In 1996 the KC Mahindra Trust kicked off an ambitious program aimed at helping the underprivileged girl child in India. Christened Nanhi Kali, the project's principal goal is to promote primary education for the underprivileged girl child in both rural and urban parts of the country. The programme is implemented with the help of several non-government organisations (NGOs) and voluntary agencies doing community-based development work.

To make the project more participatory and involving, individual sponsorship is encouraged wherein individual donors adopt a girl child. The Nanhi Kali project, backed by an encouraging response from sponsors, currently supports the education and general welfare of over 1,700 girl children through 18 NGOs. The project hopes to reach out to thousands of such underprivileged girls across India to provide them with opportunities and choices that give them a fighting chance in life.

Welfare Centres

M&M's welfare centres run several programmes and projects in the spheres of education, health and social welfare. Education: A variety of initiatives are in place to help the company's employees and their family members. The children of deceased employees are given educational assistance, and educational programmes are conducted to help employee self- development and encourage a higher standard of living. The welfare centre also conducts various career guidance programmes for the children of employees. Summer camps are organised for employees' children during vacations to give them an opportunity to play diverse sports, learn computers and various crafts, watch educational films, or just have fun. Parents are given counselling on topics such as effective parenting, understanding the handicapped child, etc. Healthcare: There are diverse health-related services offered by the company's welfare centres. Doctors from various medical fields are available for consultation at the medical centre. Family planning and sex-education programmes are conducted, and blood-donation drives are a regular feature. There are lots of social awareness programmes on topics such as family welfare, cancer, AIDS-awareness, heart-care, diabetes, etc. Special yoga classes are conducted and health check-ups are a periodic affair for all employees. Psychiatric consultation is also provided to employees and their families when the need arises. Overall welfare: For M&M, the overall development of employees and their families is as important as their physical well-being. Programmes are conducted for retiring employees and their spouses, covering aspects like adjustment to a new role, finance management, diet and health. The company's community service programmes also include free medical check-ups for women and children living in the vicinity of an M&M facility, and schemes aimed at generating income for economically weaker sections of women.

First Prize Automobile MAHINDRA & MAHINDRA LIMITED

Zaheerabad Unit, Medak (Andhra Pradesh)

Unit Profile

Mahindra & Mahindra Ltd., is a US $ 4.5 Billion group and is among the top 10 Industrial Houses in India. With over six decades of manufacturing experience, the Mahindra Group has built a strong base in technology, engineering, marketing and distribution.

The Automotive sector is part of a group of six sectors within M&M Ltd. It has five manufacturing units, three in the state of Maharastra, located at Kandvili ( Mumbai), Igatpuri & Nasik ; the fourth unit located at Zaheerabad, Medak- Andhra Pradesh and the fifth unit located at Haridwar, Uttaranchal.

The Zaheerabad plant manufactures Multi Utility Vehicles (MUVs), Light Commercial Vehicles (LCVs) and three wheelers. The plant has been in operation since the year 1985. It was merged into M&M Ltd in 1994. It produces around 40,000 vehicles per annum of various models.

The Zaheerabad unit is a certified ISO / TS 16949 – 2002 unit. It has also been recently cleared for the Integrated ISO14001:2004 & OHSAS 18001:1999 Certification. The unit was a runner-up in the “National Energy Conservation Award - 2006” conducted by the Bureau of Energy Efficiency.

Energy Consumption

By implementing various energy conservation measures at the Zaheerabad unit, there has been consistent decrease in the Specific electrical & Thermal energy consumptions.

Description Unit 2004 - 2005 2005 - 2006 2006-2007

Annual equivalent No’s 17044 17294 22152 vehicles produced

Total Electrical Lac. kWh 87 86 101.94 energy consumption per annum

Specific electrical kWh/ equivalent 511 500 448 energy vehicle consumption

Total thermal Lakh M3 2.29 2.26 2.60 ( Fuel) consumption per annum Million K Cals/ annum

3624 3571 4102

Specific thermal Million K Cals/ 0.213 0.206 0.185 energy equivalent vehicle consumption per annum

ENVIRONMENT CONCERN

Mahindra-Renault India Ltd. is committed to:

• Maintain and continually improve upon our Environmental Management system and performance.

• Prevention of pollution resulting from our business activities and products.

• Strictly adhere to environmental laws and further follow our own standards.

Recognizing our responsibility to provide a green and safe environment, we put forward following action guidelines:

• Promote energy conservation

• Promote three R's (Reduce, Reuse, Recycle)

• Promote "Green" procurement

• Provide environmental education to all the personnel working for or on the behalf of Maruti Udyog Limited Since the commencement of operations in 1981 we've been committed to the protection of the environment and conservation of non-renewable energy sources. Our proactive approach depends not only upon meeting the expectations of the regulatory authorities but achieving the high standards that we've set as a responsible corporate citizen.

This philosophy of trying to make a difference to the environment penetrates through our employees to the process of manufacture and finally into our products.

Pollution Control Camps

Our elaborate system of Free Pollution Check-Up Camps which run at regular intervals, is designed at making the cars already on the road operate more efficiently. It also inculcates awareness for environmental protection among the many car users of India.

ECO2

We have introduced Eco2compatible engines in all our models.

CNG

Mahindra-Renault is a strong advocate of CNG, a more eco-friendly fuel alternative to diesel and petrol. In our endeavor to provide a cleaner and greener option to the customer, we are in the process of equipping an extensive dealer network to assist Mahindra owners in fitting CNG kits.

ETHICS

To adhere to a code of business, ethics and values. To serve as a role model in support of corporate policies and professional ethics in our dealings with all our stakeholders

To co-operate and collaborate with colleagues in order to achieve company objectives. To work effectively with others irrespective of position, department, etc To deliver as promised and to adhere to commitments. To meet deadlines, and take responsibility for actions and admit mistakes. To work effectively with little or no supervision.

To honor rather belittle the opinion of work of others, regardless of their status or position in the organization. To support the growth and development aspirations of individuals.

Energy Conservation Commitment, Policy and Set up

Mahindra & Mahindra ltd., Automotive sector, Zaheerabad unit strongly believes that Energy saving is a multi disciplinary approach. The Plant’s energy profile consists of Electricity, LPG,HSD, Compressed air and Water.

Top Management periodically reviews Energy Management policy, Conservation plans, their implementation and status. A special ENCON cell has been formed with a cross functional team members from Maintenance, production, utilities, administration, purchase etc. Energy audits are regularly conducted by external agencies like CII, Ingersoll-Rand, synergy services etc. in addition to the in-house energy manager’s audits.

The company is strongly pursuing the TPM (Total Productive Management) methodology for its excellence in performance. This has also resulted in greater awareness on conservation activities.

ENERGY MANAGEMENT POLICY

We are committed :

• Bench mark specific energy consumption with National & International standards, and setting up systems to achieve them.

• Increase use of non-conventional sources of energy & alternate fuel sources.

• Incorporate energy efficient designs & equipments in all projects.

• Conduct regular Energy Audits to reduce energy wastage in all areas.

• Formation of small group activities to increase employee involvement. • Promote awareness among all employees through leaflets, seminars, competitions and company visits.

• Recognize energy conservation initiatives taken by employees and award them.

• Promote awareness among students, nearby areas through leaflets, seminars.

Energy Conservation Achievements

(1) Reduction of Transport Fuel by a. Capacity utilization has been improved by modifying the size of the pallet. b. Getting the same quantity of material in the smaller trucks. c. Localization and Rationalization of vendors.

Utilization of compressed air from central compressor

Before:

Compressed air being used for supply to the Vehicle Assembly line through dedicated compressor(30 hp motor)

After:

Utilization of compressed air from central compressor by providing airline & removed the dedicated compressor (This EC measure was found during the air audit)

Investment : Rs. 0.20 Lakhs

Savings per annum : Rs. 2.10 Lakhs

Pay Back period: 2 Months

Environment and Safety

Mahindra & Mahindra Ltd.– Zaheerabad unit is committed to enhancement of Safety, Health & Environment aspects on continual improvement basis. Environment

The Management is committed to the Green belt development in and around the Zaheerabad unit. Both internal & external environmental audits are regularly conducted to maintain ecological balance.

Safety

Safety audits are being conducted regularly by the second party & annually by third party for identification, elimination / minimization of Occupational Health & Safety hazards.

Safety patrol rounds are being conducted monthly section wise by involving workmen & also safety committee members. A new initiative has been started in the form of Safety Tool box talks at the beginning of the shift for all the workmen to create awareness on the safe work practices.

Internal, second & third party safety audits are done as well to avoid unsafe conditions prevailing in the working environment.

ENVIRONTMENTAL FACTORS

The Logan was one of the most-awaited car launches of 2007. On it rode Mahindra & Mahindra's second shot at the car market and French auto giant Renault's first shot at India.

A year down the road, the Logan has been spruced up and actor Kunal Kapoor is on their commercial giving the brand some star push.

Rajesh Jejurikar, Managing Director of Mahindra Renault said he is delighted that Logan is number three in the C-segment which is very competitive.

He added that positioning with respect to Logan is changing. "When it was launched, it was a product-based position. At that stage, we needed to establish product and the advertising about a product benefit or a product attribute. We are now taking it to the next level, which is creating an emotional connect. So, we are changing the tag and moving the product proposition up to a higher level and connecting with an emotional reason." Logan overtakes City, Verna and SX4 in Feb7 Mar, 2008

NEW DELHI: Utility vehicle major Mahindra & Mahindra’s (M&M) foray into the sedan segment is bearing fruit. It sold 2,753 units of Logan in February, claiming the second position in the segment, leaving behind its traditional mid-segment rival sedans like Honda City, Hyundai Verna and the Maruti Suzuki SX4.

Tata Motors’ Indigo sedan became the highest seller with sales of around 3,322 units in February on account of huge demand of its compact sedan launched in February, which avails concessional excise duty. It is priced at Rs 4.3 lakh, the lowest for any sedan, which had pushed its demand and sales last month. Honda had sold 2,310 units of City, Hyundai has sold 2,132 units of Verna while Maruti Suzuki has sold 1,953 units of SX4 in February.

Logan, after successive pricing and re-positioning in the market, now comes for Rs 4.5 lakh for petrol and Rs 5.75 lakh for diesel variant. According to analysts, it has posted a stronger performance due to high demand in commercial fleet operations and customers upgrading from the premium hatchback segment.

Mahindra Renault managing director Rajesh Jejurikar told ET, “Logan’s application in commercial fleet operations is a big booster for us. It has helped us to give the highest numbers since its launch. We have given the customers the options to own a big car at the price of a hatchback, which has been accepted well. Logan is emerging as a strongest contender in the mid-size car segment. There is huge a demand for the diesel variant which forms around 65% of our total sales due to its high fuel efficiency and now comes with a waiting period in some markets.”

The company had sold more than 22,500 units of Logan, since its launch in May last year. While it has ruled out any hatchback or a compact variant (under 4-metre length like the Indigo sedan) which is now taxed at concessional 12% excise (after the budget), against 24% for all other sedans, it will soon be launching a new brand campaign for Logan.

“We shall be informing the customers of the high-quality of this international car and its phenomenal fuel efficiency. With one of cheapest sedan, we are looking at significant increase in the market-share in the mid-size car segment,” Mr Jejurikar said. Logan’s improved sales in February increase the company’s market share to 16.8% against January’s 12% in mid-size car segment. The company fared well on its flagship model Scorpio too.

Mumbai May 24 Mahindra Renault's Logan has received more than 3,000 bookings in three weeks since its debut on April 3. The car that is launched in 11 cities initially had 25,000 inquiries so far; this is very significant considering the Logan has been launched in only 40 per cent of the markets, said Mr Rajesh Jejurikar, Managing Director, Mahindra Renault Pvt Ltd.

More than 11,000 test drives were given to customers, 3,000 of which were converted to bookings. "This is a healthy ratio of over 30 per cent conversion from test drives to bookings," said Mr Jejurikar.

Bookings have opened in dealerships across Mumbai, Pune, Bangalore, Nashik, Delhi - NCR, Chennai, Hyderabad, Kolkata, Chandigarh, Ludhiana and Jalandhar.

Heavy enquiries

The Logan has been getting over 1,200 inquires every day. The city-wise launches have been made in a phased manner starting with Mumbai on April 9. The phased ramp-up is to help cushion demand as the company increases its plant capacity to the planned level of 50,000 per annum by July.

Mr Nalin Mehta, Vice-President Sales & Marketing, Mahindra Renault, said, "The trend so far has shown that the 1.5-litre diesel variant has been a great hit among customers. This is very much in line with our expectations given the fuel and cost efficiency of diesel combined with Logan's superior technology, which rivals the best petrol cars on the road." "Our challenge now is to meet customer demand for the car," concluded Mr Jejurikar.

Energy Conservation Commitment, Policy and Set up

The company is strongly pursuing the TPM (Total Productive Management) methodology for its excellence in performance. This has also resulted in greater awareness on conservation activities.

ENERGY MANAGEMENT POLICY

We are committed :

• Bench mark specific energy consumption with National & International standards, and setting up systems to achieve them.

• Increase use of non-conventional sources of energy & alternate fuel sources.

• Incorporate energy efficient designs & equipments in all projects.

• Conduct regular Energy Audits to reduce energy wastage in all areas.

• Formation of small group activities to increase employee involvement.

• Promote awareness among all employees through leaflets, seminars, competitions and company visits.

• Recognize energy conservation initiatives taken by employees and award them.

• Promote awareness among students, nearby areas through leaflets, seminars. Energy Conservation Achievements

Utilization of compressed air from central compressor

Before:

Compressed air being used for supply to the Vehicle Assembly line through dedicated compressor(30 hp motor)

After:

Utilization of compressed air from central compressor by providing airline & removed the dedicated compressor (This EC measure was found during the air audit)

Investment : Rs. 0.20 Lakhs

Savings per annum : Rs. 2.10 Lakhs

Pay Back period: 2 Months

Environment and Safety

Mahindra & Mahindra Ltd.– Zaheerabad unit is committed to enhancement of Safety, Health & Environment aspects on continual improvement basis.

Environment

The Management is committed to the Green belt development in and around the Zaheerabad unit. Both internal & external environmental audits are regularly conducted to maintain ecological balance.

Safety

Safety audits are being conducted regularly by the second party & annually by third party for identification, elimination / minimization of Occupational Health & Safety hazards. Safety patrol rounds are being conducted monthly section wise by involving workmen & also safety committee members. A new initiative has been started in the form of Safety Tool box talks at the beginning of the shift for all the workmen to create awareness on the safe work practices.

Internal, second & third party safety audits are done as well to avoid unsafe conditions prevailing in the working environment.

Energy Conservation Policy and Set up

Mahindra & Mahindra Ltd, Automotive Sector, Nashik emphasises on all types of energy (Electrical, Thermal and Compressed air.) conservation. Energy conservation measures are identified, reviewed periodically for techno-commercial viability in ECON Cell, implementation & verification strategies are made. ECON meeting is held on every alternate Tuesday of the month to review the action plan.

Energy Management Policy

Environment and Safety

Environment

Mahindra & Mahindra Ltd. is committed to “Protect the Environment, Prevention & Control of Pollution, Minimise the Waste Generation, Promote Energy Saving and Conservation of Resources”. An “Environmental Policy” duly signed and documented is provided expressing our commitment towards the EMS.

Plant Head along with Union President Planting the tree on Borgargh Hill Forest

Tree

The company has successfully obtained the Environment Management Certificate of ISO 14001 in the month of June 2004 from M/S. RWTuV of India. Efforts are being made for the achievement of the goals of Legal Compliance, Proper Waste disposal, Promote recycling and reuse of waste / Materials, etc. during the implementation and after the certification of the Environment Management System. Following are some of the initiatives taken by the management towards Environment protection

1. Installed Effluent Treatment Plant and the treated effluent is being used for Gardening spread over the area of about 1.00 Lac M2.

2. Installed Bio-Gas plant for processing Canteen solid Waste to generate a cooking gas for its use at canteen

3. Installed Solar Water Heating Systems for canteen hot water requiremen

4. Around 25% of the electricity requirement for the FY 06- 07 is met by clean energy i.e. wind power.

5. An Oil Separation unit is installed to prevent the Water Pollution before its disposal through ETP / STP.

6. Implemented the projects of providing a Sewage Treatment Plant

7. Acoustic Insulation for the Generator House, Vehicle Testing, Engine Testing to prevent the noise pollution. Noise level is 64 dB in the day time and 58 dB in the night time on average.

8. Around 5000 Trees planted in various schools & other institutions in the Nashik apart from 18% green area coverage in our own premises in FY 06-07. As of now 25% area is under green coverage and expecting to have 33% area under green coverage by FY 07- 08. For FY 07-08 massive plantations of 1 Lakh trees in the Nashik has been planned in association with Forest deptt. & Air Force.

Barriers that industry offers

• Government policy and regulations: Every company has to abide by the various government policy and regulations if they have to operate and this sometimes becomes the barrier for any new entrant.

For instance:

NVH(Noise Vibration Harshness) norm: It states that the three factors i.e noise, vibration and harshness should me minimum in the automobile and this requires a huge investment in the form of advanced machinery.

ECO2 compatibily: States that vehicle should be less polluting. Also heavy penalties are being paid by almost every automobile firm because of not abiding this norm as this is unavoidable.

• Capital requirements: For any new firm to enter into automobile industry requires a huge amount of capital because of heavy machinery required for the production. Also automobile industry is more of a capital intensive. This was also the basic reason that government restricted the entry of private players in automobile industry before 1991.

• Proprietary products and knowledge: Vast knowledge is required for any new entrant before he decides to enter into the automobile sector in various fields such as norms, from where to take the raw material, best location for the plant that minimizes the transportation cost.

Economies of scale and other cost advantages: It is very difficult for any new firm to generate economies of scale or other cost advantage because for this they have to produce in bulk and this requires a huge capital and demand for the product but this is very difficult for new firm to shift the customers towards them when already huge giants are operating in the market.

• Switching costs and brand identity: In automobile industry the mere existence of the firm depends upon that is the brand they are offering is identified in the market or not. As it has direct impact on the demand for the product, higher brand identification results in higher demand. And for this any new firm has to spend heavily on promotion.

• Increased customer demand: Now customer is demanding for new model in short period and this becomes a big barrier for any new entrant to generate new models in short span of time.

• Innovation: Huge amounts are being spend by different competitors on research and development so that they can attract more customers towards there product.

Reasons for opting sales force estimate method

1. Sales force is in the best place to tell the potential demand for the product because they know the past trends of the sales.

2. They also are in direct contact with the customers thus knowing there taste and preferences helping them to judge the potential demand.

3. Data generated by them are mostly accurate i.e the figures forecasted by them are very close to the actual sales.

4. Convenient to interpret and analyze the data when compared with the other forecasting tools namely econometric model, regression analysis.

5. Method use is also less time consuming when only few personals are interviewed as compared to Delphi method or expert opinion method.

6. Less chances of error because no calculations are involved.

7. Best method to generate sales data for short period. Financial analysis

Financial analysis is the process of identifying the financial strength and weakness of the firm by properly establishing relationship between the items of the items of the balance sheet and profit and loss account. Management of the firm, or the parties outside the firm, viz. owners, investors, and others, can undertake financial analysis. The nature of analysis will differ depending on the purpose of the analyst.

 Trade creditors are interested in the firm’s ability to meet their claims over a very short period of time their analysis will, therefore, confines to the firms liquidity position. Suppliers of long term debt, on the other hand, are concerned with the firm’s long term solvency and survival. They analyze the firm s profitability over time, it s ability to generate cash to be able to repay interest and principal and the relationship between various sources of funds. Long-term creditors do analyze the historical financial statements, but the place more emphasis on the firm s projected financial statements to make analysis about its future solvency and profitability.

 Investors, who have invested their money in the firm s shares, are most concerned about the earnings. They restore more confidence in those firms that show steady growth in earnings. As such they concentrate on the analysis of the firm’s financial structure to the extent it influences

the firm’s earnings ability and risk.

Management of the firm would be interested in every aspect of the financial analysis. It is their overall responsibility to see that the resources of the firm are used most effectively and efficiently, and the firm s financial condition is sound.

Cash Flow:

Cash flow is a term that refers to the amount of cash being received and spent by a business during a defined period of time, sometimes tied to a specific project. Measurement of cash flow can be used

• To evaluate the state or performance of a business or project.

• To determine problems with liquidity. Being profitable does not necessarily mean being liquid. A company can fail because of a shortage of cash, even while profitable.

• To generate project rate of returns. The time of cash flows into and out of projects are used as inputs to financial models such as internal rate of return, and net present value.

• To examine income or growth of a business when it is believed that accrual accounting concepts do not represent economic realities. Alternately, cash flow can be used to 'validate' the net income generated by accrual accounting

Cash flow analysis of Mahindra and Tata motors

Considering the figures of 2007 we can conclude that both the company’s are making their profit from their actual business. I.e from the operating activity

Cash Flow analysis of Mahindra & Mahindra

Cash flow

Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03

Profit before tax 1,315.69 889.49 700.62 408.71 139.38 Net cashflow-operating activity 1,168.95 686.90 379.21 740.90 543.78

Net cash used in investing activity -950.39 -502.66 -174.30 -107.36 -54.59

Netcash used in fin. activity 418.08 -89.78 192.45 -643.93 -438.39

Net inc/dec in cash and equivlnt 636.64 94.47 397.36 -10.39 50.80

Cash and equivalnt begin of year 725.15 630.69 233.33 243.72 189.74

Cash and equivalnt end of year 1,361.79 725.15 630.69 233.33 240.54

Cash flow analysis of TATA Motors

Cash flow

Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03

Profit before tax 1,913.46 1,528.88 1,236.95 810.34 300.11

Net cashflow-operating activity 2,210.13 -221.03 1,249.82 2,717.53 1,311.40

Net cash used in investing activity -2,805.10 -1.06 -956.57 -2,043.19 -183.92

Netcash used in fin. activity 303.58 -855.27 940.67 -149.20 -1,208.75

Net inc/dec in cash and equivlnt -291.39 -1,077.36 1,233.92 525.14 -81.27

Cash and equivalnt begin of year 1,118.15 2,196.79 771.12 245.35 326.62

Cash and equivalnt end of year 826.76 1,119.43 2,005.04 770.49 245.35

 If we compare cash flow statement of both the company, we see that tata motors are making more profits on an account of operating activity. Annexure

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Sources of funds

Owner's fund

Equity share capital 238.03 233.40 116.01 116.01 116.01

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 3,302.01 2,662.14 1,881.93 1,644.15 1,438.31

Loan funds

Secured loans 106.65 216.68 336.82 485.23 924.15

Unsecured loans 1,529.35 666.71 715.80 244.58 215.69

Total 5,176.05 3,778.92 3,050.56 2,489.96 2,694.17

Uses of funds

Fixed assets

Gross block 3,180.57 2,859.25 2,676.51 2,499.56 2,436.82

Less : revaluation reserve 12.86 13.33 14.32 14.88 15.51

Less : accumulated depreciation 1,639.12 1,510.27 1,335.56 1,165.83 1,023.04

Net block 1,528.59 1,335.65 1,326.63 1,318.86 1,398.27

Capital work-in-progress 329.72 205.46 133.93 57.86 52.31

Investments 2,237.46 1,669.09 1,189.79 1,111.15 862.27

Net current assets

Current assets, loans & advances 3,916.94 2,805.04 2,356.41 1,532.05 1,673.78

Less : current liabilities & provisions 2,854.20 2,254.37 1,980.58 1,539.60 1,332.18

Total net current assets 1,062.74 550.66 375.83 -7.56 341.60

Miscellaneous expenses not written 17.55 18.05 24.38 9.64 39.72

Total 5,176.05 3,778.92 3,050.56 2,489.96 2,694.17

Notes:

Book value of unquoted investments 1,515.23 1,419.01 1,047.67 953.86 745.75

Market value of quoted investments 10,285.25 2,030.85 240.83 121.38 112.70

Contingent liabilities 1,008.27 946.36 758.14 528.62 408.97

Number of equity sharesoutstanding (Lacs) 2380.33 2334.00 1116.48 1160.09 1160.09 BALANCE SHEET OF MAHINDRA & MAHINDRA

RATIOS

(Rs crore)

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Per share ratios

Adjusted EPS (Rs) 40.38 25.61 43.83 26.46 7.61

Adjusted cash EPS (Rs) 49.20 34.19 60.33 41.74 22.29

Reported EPS (Rs) 44.88 36.72 45.92 30.04 12.55

Reported cash EPS (Rs) 53.70 45.30 62.42 45.32 27.23

Dividend per share 11.50 10.00 13.00 9.00 5.50

Operating profit per share (Rs) 47.73 37.34 64.39 44.52 26.29

Book value (excl rev res) per share (Rs) 147.98 123.29 176.77 150.89 130.56

Book value (incl rev res) per share (Rs.) 148.52 123.86 178.05 152.18 131.90

Net operating income per share (Rs) 416.81 348.61 590.67 425.11 320.08 Free reserves per share (Rs) 135.66 109.86 158.02 129.83 105.33

Profitability ratios

Operating margin (%) 11.45 10.71 10.90 10.47 8.21

Gross profit margin (%) 9.33 8.25 8.10 7.12 3.75

Net profit margin (%) 10.34 10.28 7.56 6.88 3.79

Adjusted cash margin (%) 11.34 9.57 9.93 9.55 6.74

Adjusted return on net worth (%) 27.28 20.77 24.79 17.53 5.82

Reported return on net worth (%) 30.33 29.78 25.97 19.91 9.60

Return on long term funds (%) 26.09 23.17 24.32 19.31 9.58

Leverage ratios

Long term debt / Equity 0.53 0.40 0.60 0.50 0.82

Total debt/equity 0.46 0.30 0.52 0.41 0.73

Owners fund as % of total source 68.39 76.62 65.49 70.69 57.69

Fixed assets turnover ratio 3.14 2.85 2.47 1.97 1.52

Liquidity ratios

Current ratio 1.37 1.24 1.19 0.99 1.26

Current ratio (inc. st loans) 1.31 1.21 1.10 0.95 1.21

Quick ratio 1.01 0.83 0.78 0.65 0.86

Inventory turnover ratio 13.42 11.13 10.66 13.11 11.47

Payout ratios

Dividend payout ratio (net profit) 30.39 32.45 33.54 33.79 49.46

Dividend payout ratio (cash profit) 25.40 26.30 24.67 22.40 22.79

Earning retention ratio 66.22 53.46 64.87 61.62 18.44

Cash earnings retention ratio 72.28 65.14 74.48 75.68 72.17

Coverage ratios

Adjusted cash flow time total debt 1.40 1.11 1.56 1.51 4.41

Financial charges coverage ratio 77.85 39.60 29.94 8.46 3.68 Fin. charges cov.ratio (post tax) 65.57 40.23 24.04 7.83 3.73

Component ratios

Material cost component (% earnings) 69.92 72.33 73.22 69.29 67.75

Selling cost Component 6.40 5.63 5.60 5.85 5.26

Exports as percent of total sales 7.18 6.24 5.14 4.63 5.76

Import comp. in raw mat. consumed 1.97 1.86 2.41 2.88 3.59

Long term assets / total Assets 0.50 0.53 0.52 0.61 0.58

Bonus component in equity capital (%) 71.67 73.09 47.06 47.06 47.06

Income Statement of tata motors

As on( Months ) 31-Mar-10(12) 31-Mar-09(12) 31-Mar-08(12)

Profit / Loss A/C Rs mn Rs mn Rs mn

Net Sales 265739.90 200374.90 171539.80

Operating Income (OI) 267822.60 204880.70 172658.20

OPBDIT 25523.60 20793.20 19470.30

OPBDT 23697.70 18529.70 17928.80

OPBT 17834.80 13320.30 13427.20

Non-Operating Income 7917.00 7217.80 3097.30

Extraordinary/Prior -13.50 -1421.50 -511.30 Period Tax 6603.70 3827.80 3643.70

Profit after tax(PAT) 19134.60 15288.80 12369.50

Cash Profit 24997.50 20498.20 16871.10

Dividend-Equity 5780.70 4979.40 4521.90

Balance Sheet of tata motors

As on 31-Mar-10 31-Mar-09 31-Mar-08

Assets Rs mn Rs mn Rs mn

Gross Block 87153.40 79106.50 65774.40

Net Block 38553.10 35436.50 31576.70

Capital WIP 25133.20 9511.90 5388.40

Investments 23585.10 18377.80 13830.00

Inventory 25009.50 20122.40 16013.60

Receivables 7821.80 7157.80 8113.20

Other Current Assets 71537.80 72614.10 63652.60

Balance Sheet Total(BT) 191640.50 163220.50 138574.50

Liabilities Rs mn Rs mn Rs mn

Equity Share Capital 3854.10 3828.70 3617.90

Reserves 64483.00 51136.90 37314.40

Total Debt 40091.40 29368.40 24954.20 Creditors and Acceptances 57135.10 55358.70 50770.10

Other current liab/prov. 26076.90 23527.80 21917.90

Balance Sheet Total(BT) 191640.50 163220.50 138574.50

Ratio:

2010 2009 2008

Current ratio 1.25 1.27 1.21

Quick ratio 0.86 1.01 1.06

Debt equity ratio 0.37 0.41 0.59

Total debt equity ratio 0.59 0.53 0.61

Inventory turnover ratio 10.6 9.95 10.7

Fixed asset turnover ratio 6.89 5.65 5.46

Capital turnover ratio 4.45 3.55 3.67

Gross profit ratio 9.60 10.02 11.35

Net profit ratio to fixed asset 7.20 7.63 7.21

Return on investment 14.55 12.89 15.66 CASH FLOW STATEMENT OF MAHINDRA & MAHINDRA

Cash flow

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Profit before tax 1,315.69 889.49 700.62 408.71 139.38

Net cashflow-operating activity 1,168.95 686.90 379.21 740.90 543.78

Net cash used in investing activity -950.39 -502.66 -174.30 -107.36 -54.59

Netcash used in fin. activity 418.08 -89.78 192.45 -643.93 -438.39

Net inc/dec in cash and equivlnt 636.64 94.47 397.36 -10.39 50.80

Cash and equivalnt begin of year 725.15 630.69 233.33 243.72 189.74

Cash and equivalnt end of year 1,361.79 725.15 630.69 233.33 240.54