REPORT OF FINANCIAL STATEMENT ANALYSIS

OF
MAHINDRA & MAHINDRA LTD.
In partial fulfilment for the award of the Degree of Bachelor of
Commerce (Hons.)

Teerthanker Mahaveer Institute of Management and Technology

(TMIMT)
Session: 2021-2024
Teerthanker Mahaveer University, Moradabad, Uttar Pradesh

SUBMITTED BY: SUBMITTED TO:

PRIYAL AGARWAL GURLEEN KAUR

TMG2109050 (ASSISTANT PROFESSOR)

B.Com (Hons.) TMIMT,TMU
VI Semester
3rd Year

1
 INDEX

S.no Name Page no

1. Student’s declaration 3

2. Acknowledgement 4

3. Company profile 5-11

4. Introduction to the topic 12-14

5. Research objectives 15

6. . Research methodology 16

7. Data analysis and interpretation 17-27

8. Results and finding 28-29

9. Conclusion 30

10. Recommendation 31

11. Reference 32

12. Annexure 33-34

2
 STUDENT DECLARATION

I Priyal Agarwal, undersigned solemnly declare the project report entitled

analysis of annual report is based on my own work carried out during course of
our study.
I assert the statement made and conclusion drawn are an outcome of my
research work. I further certify that:-
The work contained in the report is original.
 We have followed the guidelines provided by the university in writing
the report.
 Whenever we have used material (data, theoretical analysis & text) from
other sources, I have given due credit to them in the text of the report
and giving their details in the references.

Priyal Agarwal
B.com (Hons.)
TMG2109050
VI Semester
Student Signature

3
 ACKNOWLEDGEMENT

It gives me immense pleasure and privilege to acknowledge my deepest sense of

gratitude towards all those who helped me in the successful execution of this
dissertation.
I would like to express my special thanks of gratitude to our principal DR. VIPIN
JAIN, for the facilities provided to accomplish this report.
I would like to thank my Head of Department DR. MANOJ AGARWAL for this
constructive criticism throughout my project.
I also extend my gratitude toward DR. NITIN AGARWAL (Program coordinator),
who entrusted me for the completion of this project.
I would also like to express my special thanks to my Assistant Professor MS.
GURLEEN KAUR who helped me for the completion of this project.
I am extremely grateful to my department staff members and friends who helped me
in successful completion of this project.
The acknowledgement would be incomplete without thanking my family who were a
big support throughout.

Priyal Agarwal
B.com (Hons.)
TMG2109050
VI Semester
Student Signature

4
 COMPANY PROFILE

ABOUT
Mahindra & Mahindra is an automobile manufacturing company located in
Mumbai, Maharashtra. It was established in 1945 as Mahindra & Mohammed
and later renamed Mahindra & Mahindra. Part of the Mahindra Group, M&M is
one of the largest vehicle manufacturers by production in India. Its unit,
Mahindra Tractors, is the largest manufacturer of tractors in the world by
volume. It was ranked 17th on a list of top companies in India by Fortune India
500 in 2018.Its major competitors in the Indian market include Maruti Suzuki
India and Tata Motors.
Dr. Anish Shah is the current CEO and Managing Director of Mahindra &
Mahindra.
Website
https://www.mahindra.com/ https://auto.mahindra.com/
Industry
Automotive

Traded as
BSE: 500520
NSE: M&M
BSE SENSEX Constituent
NSE NIFTY 50 Constituent
Company size
10,001+ employees
Headquarters
Mumbai, Maharashtra
Type

5
 Privately Held
Founded
1945
Founders

 J. C. Mahindra
 K. C. Mahindra
 Malik Ghulam Muhammad
Key People
 Keshub Mahindra (Chairman emeritus)
 Anand Mahindra (Chairman)
 Anish Shah (Managing Director and CEO)
Products
 Automobiles
 Commercial vehicles
 Tractors
 Motorcycles

Specialties
Manufacturing, Human Resources, Automotive, Agriculture, Farm Equipment,
Marketing, Research and Development, Sales, Finance, Design, Automation, and
Analytics

VISION AND MISSION

We've made humanity's innate desire to Rise our driving purpose. We challenge
conventional thinking and innovatively use our resources to drive positive
change in the lives of our stakeholders and communities across the world, to
enable them to Rise.

6
HISTORY
945: Foundation
In 1945, the Mahindra Group was established in Ludhiana, Punjab, by brothers
JC Mahindra and KC Mahindra, along with Malik Ghulam Muhammad.
Initially named Mahindra & Mohammed, the company was set up to trade steel
with the United States and the United Kingdom during World War II.

1947: Assembling Willys Jeeps

In 1947, the company was renamed Mahindra & Mahindra after Ghulam
Muhammad migrated to Pakistan. This year marked a significant milestone as
the company began assembling Willys Jeeps in India, which played a vital role
in India’s transportation landscape, especially in rugged, rural areas.

1950s: Diversification Begins

During the 1950s, the Mahindra Group started its journey of diversification.
They ventured into the manufacturing of Jeep kits, which were assembled in
India. This was a critical step, providing the foundation for Mahindra’s future
growth in the automotive sector.

1960s: Expansion into IT and Software

The 1960s was a decade of further expansion for the Mahindra Group. They
entered the IT and software industry, which would later become one of the
significant sectors for the group. During this period, they also expanded their
automotive manufacturing, creating a more diverse product range.

1970s: Inception of Mahindra Ugine Steel

The 1970s brought another subsidiary, Mahindra Ugine Steel. This period
marked the group’s expansion into the steel industry, making it one of the
leading steel manufacturers in India.

1980s: Global Expansion and Establishing Tech Mahindra

In the 1980s, the Mahindra Group took its businesses to a global platform. Tech
Mahindra was established in 1986, marking the group’s significant presence in
the Information Technology sector. It became a global leader in offering IT
solutions and Business Process Outsourcing services.

1990s: Venturing into Hospitality and Software Services

The 1990s saw the Mahindra Group venturing into new arenas, including the
hospitality and tourism sector with Club Mahindra Holidays in 1996.

7
Additionally, they cemented their position in the software services sector,
marking a substantial footprint in IT and software industries globally.

2000s: Acquisitions and Further Diversification

The new millennium saw the Mahindra Group growing exponentially. In 2002,
they acquired SsangYong Motor Company in South Korea, and in 2007, they
purchased the British motorcycle maker, Peugeot Motorcycles. Thisdecade saw
extensive diversification with the initiation of Mahindra Reva (an electric car
company), and Mahindra Aerospace.

2010s: Continual Growth and New Ventures

The 2010s decade marked continual growth for the Mahindra Group. They
launched the compact and sub-compact SUVs, the XUV 500 and TUV 300,
which received a warm response in the automotive market. The group also
ventured into the health sector with the inception of Mahindra Health Care.

2020 and Beyond: Focusing on Sustainability and Innovation

As we step into this new decade, the Mahindra Group is prominently
highlighting its commitment towards sustainability and innovation. The
conglomerate is engaged in the progression of electric vehicles and renewable
energy, showcasing their dedication to supporting a sustainable future.

MAJOR SUBSIDIARIES OF MAHINDRA GROUP

S. Name Sector Market Cap Year

No. (in Crores) Founded
1 Mahindra and Mahindra Automobile ₹ 1,90,270 1945
Ltd
2 Tech Mahindra Ltd IT Services & ₹ 1,26,761 1986
Consulting
3 Mahindra and Mahindra Consumer Finance ₹ 37,023 1991
Financial Services Ltd
4 Mahindra Life space Real Estate ₹ 8,397 1994
Developers Ltd
5 Mahindra Holidays and Hotels, Resorts & ₹ 8,006 1996
Resorts India Ltd Cruise Lines
6 Mahindra Logistics Ltd Logistics ₹ 2,825 2007
7 Swaraj Engines Ltd Tractors ₹ 2,402 1985

8
8 Mahindra EPC Irrigation Agricultural & ₹ 327 1981
Ltd Farm Machinery

MAJOR PRODUCTS/BRANDS UNDER MAHINDRA

GROUP

1. Mahindra Thar
When you think about sturdy and robust vehicles, the Mahindra Thar surely
comes to mind. It is one of the most popular SUVs in India, especially known
for its exceptional off-roading capabilities. With a powerful engine, 4-wheel
drive, and high ground clearance, the Thar can easily navigate through rough
and uneven terrains. It’s not just about power and toughness; the Thar also has a
stylish design, comfortable interiors, and advanced safety features, ensuring a
seamless and secure driving experience. Whether for adventurous trips or
everyday use, the Mahindra Thar is a reliable and popular choice among many
Indians.

2. Mahindra Tractors
In the farming world, Mahindra Tractors stands tall. As one of the top tractor
makers globally, Mahindra has boosted farmers’ work for many years. Known
for their effectiveness, trustworthiness, and long life, Mahindra tractors have a
model for every farming need. This helps farmers with the right technology and
strength to get the best farming results. Moreover, Mahindra Tractors come with
the assurance of excellent after-sales service, further adding to the ease and
convenience for farmers across the nation.

1. Mahindra Thar
When you think about sturdy and robust vehicles, the Mahindra Thar surely
comes to mind. It is one of the most popular SUVs in India, especially known
for its exceptional off-roading capabilities. With a powerful engine, 4-wheel
drive, and high ground clearance, the Thar can easily navigate through rough

9
and uneven terrains. It’s not just about power and toughness; the Thar also has a
stylish design, comfortable interiors, and advanced safety features, ensuring a
seamless and secure driving experience. Whether for adventurous trips or
everyday use, the Mahindra Thar is a reliable and popular choice among many
Indians.

2. Mahindra Tractors
In the farming world, Mahindra Tractors stands tall. As one of the top tractor
makers globally, Mahindra has boosted farmers’ work for many years. Known
for their effectiveness, trustworthiness, and long life, Mahindra tractors have a
model for every farming need. This helps farmers with the right technology and
strength to get the best farming results. Moreover, Mahindra Tractors come with
the assurance of excellent after-sales service, further adding to the ease and
convenience for farmers across the nation.

3. Mahindra XUV500
The Mahindra XUV500 is another achievement for Mahindra’s automotive
sector. This premium SUV has won the hearts of many with its sleek and
sophisticated design, luxurious interiors, and high-tech features. The XUV500
provides not just comfort but also ensures safety with its advanced security
features. The powerful engine and smooth transmission offer a delightful
driving experience, making it a preferred choice for families.

4. Mahindra Trucks
The logistics and transportation sectors are backed by the strength of Mahindra
Trucks. These trucks, known for their durability and robust performance, play a
crucial role in ensuring the smooth transportation of goods across the country.
With different models and capacities, Mahindra Trucks meet the diverse needs
of the logistics sector. Their high loading capacity, powerful engine
performance, and reliability ensure that businesses can depend on them for their
transportation needs, contributing to the seamless flow of commerce and
industry.

3. Mahindra XUV500
The Mahindra XUV500 is another achievement for Mahindra’s automotive
sector. This premium SUV has won the hearts of many with its sleek and
sophisticated design, luxurious interiors, and high-tech features. The XUV500
provides not just comfort but also ensures safety with its advanced security

10
features. The powerful engine and smooth transmission offer a delightful
driving experience, making it a preferred choice for families.

4. Mahindra Trucks
The logistics and transportation sectors are backed by the strength of Mahindra
Trucks. These trucks, known for their durability and robust performance, play a
crucial role in ensuring the smooth transportation of goods across the country.
With different models and capacities, Mahindra Trucks meet the diverse needs
of the logistics sector. Their high loading capacity, powerful engine
performance, and reliability ensure that businesses can depend on them for their
transportation needs, contributing to the seamless flow of commerce and
industry.

5. Mahindra Powerol
In the energy sector, Mahindra Powerol is a leading name. It provides efficient
and reliable energy solutions with its range of generators and inverters. Known
for their technological innovation, durability, and performance, Mahindra
Powerol products are widely used across various sectors, ensuring uninterrupted
power supply and contributing to operational efficiency.

11
 INTRODUCTION

FINANCIAL STATEMENT ANALYSIS

Financial statement analysis is the process of reviewing and analysing a
company’s financial statement to make better economics decisions to earn
incoming future. These statements include income statement, balance sheet,
statement of cash flows, notes to account and a statement of change in equity.
Financial statement analysis is a method or process involving specific
techniques for evaluating risks, performance financial health future prospects of
an organisation

OBJECTIVE
The objectives of financial statement analysis are as follows: -
1. Judging the operation of efficiency of the business
2. Measuring the profitability
3. Measuring the short term and long-term financial position
4. Indicating the trend of achievements
5. Assessing the growth potential of the business
6. Inter firm comparison

TECHNIQUES/TOOLS
There are different tools of financial statement analysis available for analyst the
following tools are used to measure operational efficiency and financial
soundness of an enterprise.
The most common techniques are as follows:
1. Comparative financial statements
2. Common size statements
3. Ratio analysis
4. Cash flow statement

12
 5. Trend Analysis

1. COMPARATIVE FINANCIAL STATEMENT

Comparative financial statement is used to compare the items of financial
statements.i.e. profit and loss account and position statement i.e. balance sheet
for ascertaining the trend of the performance and profitability of an enterprise
are known as comparative financial statement
• Comparative income statement
It is a statement which shows in percentage term the total of income earned
and expenses in Accord during two or more accounting periods.
• Comparative balance sheet
It is a statement showing asset and liabilities of the business for two or more
accounting period. It also shows the percentage change in the monetary
values of asset and liabilities.

2 COMMON SIZE STATEMENT

The statement where in figures reported are converted into percentage to some
common base is known as common size statemen. Each percentage shows the
relation of the individual item to its respective total.
• Common size income statement
The statement in which sales figure is assume to be 100 and all other figures
are expressed as a percentage of sales is known as common size income
statement
• Common size balance sheet
In common size balance sheet, the total of asset and liabilities are resume to be
100 and figures are expressed to be percentage of the total.

3.RATIO ANALYSIS
The mathematical expressions that shows the relationships between various
groups of items contained in the financial statement is known as ratio analysis

13
Ratio analysis there are five type of ratios namely profitability ratio, solvency
ratio, liquidity turnover and earning ratio.

4. CASH FLOW STATEMENT

It shows the inflows and out flows of cash and cash equivalent of an enterprise
buy classifying cash flows into operating investing and financing activities
during a particular period and the analysis reasons for changes in balance of
cash between the two balance sheet dates.

14
 RESEARCH OBJECTIVES

The following are the objectives of this research:

 To understand the financial position of Mahindra & Mahindra

Ltd. company based on financial statement of the Mahindra &
Mahindra Ltd. company and different ratio analysis.

 To judge the financial position of the Mahindra & Mahindra

Ltd. company.

 To evaluate profitability of the Mahindra & Mahindra Ltd.

company.

 To gauge the debt servicing capacity of the firm.

 To understand the long term and short-term solvency of the

Mahindra & Mahindra Ltd. company.

 To know the return on capital employed or invested.

15
 RESEARCH METHODOLOGY

Desk research method is adopted for this study. The required

information was collected from the secondary sources. Secondary
data was collected from various sources including the annual report of
the company Data collection tools Secondary data
• The data related to TCS has been collected from the published
annual report the data related to the financial statements
• Internet website-
Mahindra & Mahindra Ltd..com
google.com

16
COMPARATIVE STATEMENT OF PROFIT AND LOSS
for the years ended 31st March 2022 and 2023
(₹ in cr.)

Particular 31 March, 31March, Absolute Percentage

2022 2023 Change Change
(₹) (₹)
(₹) (%)
A. Income:
Revenue from Operations
Gross Revenue from Sale of 90,170.57 1,21,268.55 31,097.98 34.49
Products and Services

Less: Excise Duty - - -

Net Revenue from Sale of 90,170.57 1,21,268.55 31,097.98 34.49

Products and Services

Other Operating Revenue - - -

Revenue from Operations 90,170.57 1,21,268.55 31,097.98 34.49

(Net)

B. Cost of sales (Direct Expenses)

Cost of Materials Consumed 46,265.48 68,477.97 22,212.49 48.01

Purchases of Stock-in-Trade 6,399.37 7,541.90 1,142.53 17.85

Changes in Inventories of (861.66) (2,032.31) (1,170.65) 135.86

Finished Goods, Work-in-
Progress, Stock-in-Trade and
Manufactured Components

Total (Cost of Production) 51,803.19 73,987.56 22,184.37 42.82

C. Gross Profit 38,367.38 47,280.99 8,913.61 23.23

D. Indirect Expenses
Employee benefit 8,386.74 9,677.95 1,291.21 15.40
expenses
Finance cost (Other - -
Borrowing Costs)
Other expenses 15,297.79 17,317.75 2,019.96 13.20
Total Indirect Expenses 23,684.53 26,995.70 3,311.17 13.98

E. EBITDA 14,682.85 20,285.29 5,602.44 13.16

17
 Depreciation 3,507.50 4,356.81 849.31 24.21
Amortization
- -
Total Depreciation and 3,507.50 4,356.81 849.31 24.21
Amortisation Expense

F. EBIT 11,175.35 15,928.48 4,753.13 42.53

Interest Expense 5,018.05 5,829.70 811.65 16.17
Other income 934.51 1,206.49 271.98 29.10

G. Profit Before Exceptional 7,091.81 11,305.27 4,213.46 59.41

Items and Tax
Add: Exceptional Items 414.17 1,249.52 835.35 201.69
Share of Profit of Associates 1,855.79 1,505.44 (350.35) (18.88)
& JV
Profit Before Tax 9,361.77 14,060.23 4,698.46 50.19
(Add)/Less: Tax Expense - -
Current Tax 1,868.10 2,742.04 873.94 46.78
Deferred Tax (Net) 240.66 (56.29) 296.95 123.39
Net Current Tax 2,108.76 2,685.75 576.99 27.36

H. Profit for the Year 7,253.01 11,374.48 4,121.47 56.82

OBSERVATION
• Operating income during the year rose 34.49%, On a year-on-year (YoY)
basis.
• Gross Profit witnessed a rise and stood at 47,280.99 in FY23 as against 38,367.38
in FY22.
• Depreciation charges increased by 24.21%, Respectively.
• Net profit for the year grew by 56.82% YoY

18
 COMPARATIVE BALANCE SHEET
for the years ended 31st March 2022 and 2023
(₹ in cr.)

Particulars 31 March, 31 March, Absolute Percentage

2022 2023 Change Change
(₹) (₹) (₹) (%)
A. EQUITY AND
LIABILITIES
I. Shareholders’ Funds
(a) Equity Share Capital 556.06 556.82 0.76 0.14
(b) Other Equity 46,566.58 55,808.97 9,242.39 19.85
Equity attributable to owners of 47,122.64 56,365.79 9,243.15 19.62
the Company

Total Equity 47,122.64 56,365.79 9,243.15 19.62

Minority Interest 9,702.62 10,716.32 1,013.70 10.45

II. Non - Current Liabilities

(a) Long Term Borrowings 51,057.61 57,909.89 6,852.28 13.42
(b) Deferred Tax Liabilities (Net) 1,786.10 1,608.64 (177.46) (9.94)
(c) Other Long Term Liabilities 6,657.51 6,895.77 238.26 3.58
(d) Long Term Provisions 1,497.99 1,815.95 317.96 21.23
Total Non - Current Liabilities 60,999.21 68,230.25 7,231.04 11.85

III. Current Liabilities

(a) Short Term Borrowings 26,547.60 34,336.96 7,789.36 29.34
(b) Trade Payables 19,036.55 23,835.66 4,799.11 25.21
(c) Other Current Liabilities 9,735.99 11,217.31 1,481.32 15.21
(d) Short Term Provisions 968.19 1,189.48 221.29 22.86
Total Current Liabilities 56,288.33 70,579.41 14,291.08 25.39

Total 1,74,112.80 2,05,891.77 31,778.97 18.25

B. ASSETS
I. Fixed Assets
Net Block (PPE) 21,902.26 20,351.33 (1,550.93) (7.08)
Capital Work-in-Progress 3,036.10 1,222.66 (1,813.44) (59.73)
Net Fixed Assets 24,938.36 21,573.99 (3,364.37) (13.49)
Investments accounted 13,149.70 14,380.57 1,230.87 9.36
using Equity method
Intangible assets 2,775.83 4,239.75 1,463.92 52.74

19
 Intangible under 3,666.71 2,745.92 (920.79) (25.11)
development
Goodwill 1,340.40 2,548.90 1,208.50 90.16

II. Non - Current Assets

Non-current investments 6,060.85 6,625.93 565.08 9.32
Deferred tax assets (net) 1,724.31 1,615.46 (108.85) (6.31)
Long-term loans and 38,849.40 52,772.75 13,923.35 35.84
advances
Other non-current assets 6,459.24 8,063.06 1,603.82 24.83
Total Non - Current Assets 98,964.80 1,14,566.33 15,601.53 15.76

III. Current Assets

Current investments 10,849.88 14,265.92 3,416.04 31.48
Inventories 11,595.82 16,854.97 5,259.15 45.35
Trade receivables 6,373.95 7,028.02 654.07 10.26
Cash and bank balances 11,117.61 11,273.43 155.82 1.40
Short-term loans and 29,242.26 34,684.81 5,442.55 18.61
advances
Other Current Assets 5,968.48 7,218.29 1,249.81 20.94
Total Current Assets 75,148.00 91,325.44 16,177.44 21.53

Total 1,74,112.80 2,05,891.77 31,778.97 18.25

OBSERVATIONS
 The company’s total current liability during the year the FY 23 stood at rupees
70,579.41 cr., as compared to rupees 56,288.33 cr. in FY 22 they are by
witnessing and increase of 25.39%
 Total non-current liability is stood at 68,230.25 in FY 23 as compared to
60,999.21 in FY 22 and a growth of 11.85%
 Total Current asset rise 21.53% and stood at 16,177.44 in FY23
 Over all the total asset and liabilities for FY 23 stood at 2,05,891.77 as
compared to 1,74,112.80 during FY 22 there by witnessing a growth of 18.25%

20
COMMON-SIZE STATEMENT OF PROFIT AND LOSS
for the years ended 31st March 2022 and 2023
(₹ in Cr.)

Absolute Change Percentage Change

Particular 31 March, 31 March, 31 March, 31 March,

2022 2023 2022 2023
(₹) (₹) (%) (%)
A. Income :
Revenue from Operations

Gross Revenue from Sale of 90,170.57 1,21,268.55 100.00 100.00

Products and Services

Less : Excise Duty - -

Net Revenue from Sale of 90,170.57 1,21,268.55 100.00 100.00

Products and Services

Other Operating Revenue - - - 0.00

Revenue from Operations 90,170.57 1,21,268.55 100.00 100.00

(Net)

B. Cost of sales (Direct

Expenses)
Cost of Materials Consumed 46,265.48 68,477.97 51.31 56.47
Purchases of Stock-in-Trade 6,399.37 7,541.90) 7.10 6.22
Changes in Inventories of (861.66) (2,032.31) (0.96) 1.68
Finished Goods, Work-in-
Progress, Stock-in-Trade and
Manufactured Components
Total (Cost of Production) 51,803.19 73,987.56 57.45 61.01

C. Gross Profit 38,367.38 47,280.99 42.55 38.99

D. Indirect Expenses
Employee benefit 8,386.74 9,677.95 9.30 7.98
expenses
Finance cost (Other
Borrowing Costs)
Other expenses 15,297.79 17,317.75 16.97 14.28
Total Indirect Expenses 23,684.53 26,995.70 26.27 22.26

21
 E. EBITDA 14,682.85 20,285.29 16.28 16.73

Depreciation 3,507.50 4,356.81 3.89 3.59

Amortization
Total Depreciation and 3,507.50 4,356.81 3.89 3.59
Amortisation Expense

F. EBIT 11,175.35 15,928.48 12.39 13.13

Interest Expense 5,018.05 5,829.70 5.57 4.81
Other income 934.51 1,206.49 1.04 0.99
- 0.00
G. Profit Before 7,091.81 11,305.27 7.86 9.32
Exceptional Items and Tax
Add : Exceptional Items 414.17 1,249.52 0.46 1.03

Share of Profit of Associates 1,855.79 1,505.44 2.06 1.24

& JV
Profit Before Tax 9,361.77 14,060.23 10.38 11.59

Less: Tax Expense

Current Tax 1,868.10 2,742.04 2.07 2.26

Deferred Tax (Net) 240.66 (56.29) 0.27 0.05
Net Current Tax 2,108.76 2,685.75 2.34 2.21

H. Profit for the Year 7,253.01 11,374.48 8.04 9.38

OBSERVATIONS
 Revenue from operations in FY 23 issued at 1,21,268.55 as compared to
90,170.57 in FY 22
 Gross Profit increases 47,280.99 in FY 23 as compared to 38,367.38 in FY22
 Net profit for the year witness and increase stood at 11,374.48 in FY
23 as compared to 7,253.01 in FY 22.

22
 COMMON-SIZE STATEMENT BALANCE SHEET
for the years ended 31st March 2022 and 2023
(₹ in cr.)

Absolute Amounts Percentage of

Particulars Balance Sheet
Total
31 March, 31March, 31 31 March,
2022 2023 March, 2023
(₹) (₹) 2022 (%)
(%)
A. EQUITY AND LIABILITIES
I. Shareholders’ Funds
(a) Equity Share Capital 556.06 556.82 0.32 0.27
(b) Other Equity 46,566.58 55,808.97 26.75 27.11
Equity attributable to owners 47,122.64 56,365.79 27.06 27.38
of the Company

Total Equity 47,122.64 56,365.79 27.06 27.38

Minority Interest 9,702.62 10,716.32 5.57 5.20

II. Non - Current Liabilities

(a) Long Term Borrowings 51,057.61 57,909.89 29.32 28.13
(b) Deferred Tax Liabilities (Net) 1,786.10 1,608.64 1.03 0.78
(c) Other Long-Term Liabilities 6,657.51 6,895.77 3.82 3.35
(d) Long Term Provisions 1,497.99 1,815.95 0.86 0.88
Total Non - Current Liabilities 60,999.21 68,230.25 35.03 33.14

III. Current Liabilities

(a) Short Term Borrowings 26,547.60 34,336.96 15.25 16.68
(b) Trade Payables 19,036.55 23,835.66 10.93 11.58
(c) Other Current Liabilities 9,735.99 11,217.31 5.59 5.45
(d) Short Term Provisions 968.19 1,189.48 0.56 0.58
Total Current Liabilities 56,288.33 70,579.41 32.33 34.28

Total 1,74,112.80 2,05,891.77 100.00 100.00

B. ASSETS
I. Fixed Assets
Net Block (PPE) 21,902.26 20,351.33 12.58 9.88
Capital Work-in-Progress 3,036.10 1,222.66 1.74 0.59
Net Fixed Assets 24,938.36 21,573.99 14.32 10.48

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 Investments accounted using 13,149.70 14,380.57 7.55 6.98
Equity method
Intangible assets 2,775.83 4,239.75 1.59 2.06
Intangible under development 3,666.71 2,745.92 2.11 1.33
Goodwill 1,340.40 2,548.90 0.77 1.24

II. Non - Current Assets

Non-current investments 6,060.85 6,625.93 3.48 3.22
Deferred tax assets (net) 1,724.31 1,615.46 0.99 0.78
Long-term loans and advances 38,849.40 52,772.75 22.31 25.63
Other non-current assets 6,459.24 8,063.06 3.71 3.92
Total Non - Current Assets 98,964.80 1,14,566.33 56.84 55.64

III. Current Assets

Current investments 10,849.88 14,265.92 6.23 6.93
Inventories 11,595.82 16,854.97 6.66 8.19
Trade receivables 6,373.95 7,028.02 3.66 3.41
Cash and bank balances 11,117.61 11,273.43 6.39 5.48
Short-term loans and advances 29,242.26 34,684.81 16.80 16.85
Other Current Assets 5,968.48 7,218.29 3.43 3.51
Total Current Assets 75,148.00 91,325.44 43.16 44.36

Total 1,74,112.80 2,05,891.77 100.00 100.00

OBSERVATION

 Total shareholders fund witnesses an increase stood at 56,365.79 in FY

23 as compared to 47,122.64 in FY 22
 Total current liabilities at in 70,579.41 FY 23 as compared to 56,288.33 in FY 22
 Total current asset witnessed a rise and stood at 91,325.44 in FY 23 as
 compared to 75,148.00 in FY 22
 Over all total assets and liabilities witness an increase of 2,05,891.77 in FY 23 as
compared to 1,74,112.80 in FY 22

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 RATIO ANALYSIS

1. CURRENT RATIO
= current assets/current liabilities

As at 31 March 2023: 91,325.44/70,579.41 = 1.29:1

As at 31 March 2022: 75,148.00/56,288.33= 1.33:1

2. QUICK RATIO
= Quick assets/Liabilities

As at 31 March 2023: 74,470.47/70,579.41 =1.05:1

As at 31 March 2022: 63,552.18/56,288.33=1.12:1

3. OPERATING PROFIT RATIO

=operating profit/net sales ×100

As at 31 March 2023: 73,987.56/1,21,268.55x100 = 61.01%

As at 31 March 2022: 51,803.19/90,170.57x100 = 57.45%

4.RETURN ON ASSET RATIO

= Net profit (after tax)/Total assets×100

As at 31 March 2023: 11,374.48/2,05,891.77 x100 =5.52%

As at 31 March 2022: 7,253.01/1,74,112.80 x100 = 4.16%

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5.NET PROFIT RATIO
= Net profit (after tax)/Revenue from operations net sales×100

As at 31 March 2023: 11,374.48/1,21,268.55 x100 = 9.37%

As at 31 March 2022: 7,253.01/90,170.57 x100 = 8.04%

6.INVENTORY TURNOVER RATIO

= Revenue from Operations (Net Sale)/Inventories
As at 31 March 2023: 1,21,268.55/16,854.97= 7.19
As at 31 March 2022: 90,170.57/11,595.82= 7.77

7.FIXED ASSET TURNOVER RATIO

=Revenue from Operations/Fixed Assets

As at 31 March 2023: 1,21,268.55/21,573.99= 5.62

As at 31 March 2022: 90,170.57/24,938.36= 3.61

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8. PROPRIETOR’S RATIO
= Proprietor’s Fund/Total Assets
Proprietor’s fund= Equity share capital + Reserve and surplus
As at 31 March 2023: 56,365.79/2,05,891.77 = 0.27
As at 31 March 2022: 47,122.64/1,74,112.80 = 0.26

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 RESULTS AND FINDING

 The company’s current ratio decreased and stood at 1.29 during a FY23,
as compared to 1.33 in FY 22
The current ratio measures the company’s ability to pay the short term
and long-term obligations

 Quick Assets decreased to 1.05 FY23 as compared to 1.12 in FY22

 Return on asset ratio-the return on asset for the company increased

5.52 in FY 23 as compared to 4.16 in FY 22

 Net profit ratio is increased and stored at 9.37% in FY 23 as compared to

8.04% in FY 22

 Inventory turnover ratio is decreased to 7.19 in FY23 as compared to

7.77 in FY 22

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 Fixed asset turnover ratio is decreased 5.62 in FY 23 as compared to
3.61 in FY 22

 Operating ratio is decreased and stood at 961.01% in FY 23 as

compared to 57.45% in FY 22

 Proprietor’s ratio is increased to 0.27 in FY 23 as compared to 0.26 in

FY 22

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 CONCLUSION

This report has been very useful to me because I have learned how to analysis the various
financial statement of the Mahindra & Maindra Ltd.. This has improved my knowledge on
financial statements, which is very useful in business and every day. The work I did in this
report has helped me to understand the techniques, applications and usefulness of financial
statements to understand the performance of a particular company without much difficulty and
also understand how to prepare them in future.

On a final note, I would like to conclude that the financial position of Mahindra & Maindra
Ltd. is quite comfortable. Still there are many rooms for improvement and further strengthening
of its financial position and their profit.

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 RECOMMENDATION

In the financial statement analysis of Mahindra & Maindra Ltd.. I would like to recommend
that the recommendation helps to pinpoint the area where in the managers have shown better
efficiency and the areas of inefficiency. The company should emphasize on the profit of the
business for the company to run smoothly throughout the year.

Company also focused on the expenses of the business which more as compared to previous
year and It should be maximized. Other income of the company increased from last year.

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 REFERENCE

Annual Report of a company.

https://www.mahindra.com/sites/default/files/2024-01/MM-Annual-Report-2022-23.pdf

Other Details of the company:

https://auto.mahindra.com/about-us

Ratio Analysis
New ISC Accountancy
D K Goel
Rajesh Goel

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ANNEXURE

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