PROJECT REPORT

ON
“A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA &
MAHINDRA”

Submitted to
Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur
For the award of degree of
Master of Business Administration
Course specialization in

Financial Management

Prepared by:
Shubhangi G. Shende

Guide:
Prof. Vaibhav Bhalerao

2023 – 2024
NIT Graduate School of Management
Survey No. 13/2, Mahurzari, Katol Road, Nagpur – 441 501

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CERTIFICATE

This is to certify that Ku. Shubhangi G. Shende has submitted the project report titled “A
STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA &
MAHINDRA”, is a bonafide work of Shubhangi G. Shende is student of MBA (Second year), NIT
Graduate School Management (Academic Session – 2023-2024). This report is being submitted in
partial fulfillment of requirement for the course of Post Graduate Degree of MASTER OF BUSINESS
ADMINISTRATION (MBA) Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur

DR. Vaibhav Bhalerao

(Project guide)

Place:
Date:

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DECLARATION

I Shubhangi G. Shende here-by declare that the project titled, “A STUDY ON WORKING CAPITAL
MANAGEMENT OF MAHINDRA & MAHINDRA”, which is being submitted by me in partial
fulfillment of requirement for the Degree of MASTER OF BUSINESS ADMINISTRATION of
Rashtrasant Tukadoji Maharaj Nagpur University, is a bonafide record of work exclusively carried out by
me. It is the result of my genuine efforts and the same has not been previously submitted towards
requirements of any course or examination of this or any other university. The sources of material and
information used int this research study has been duly acknowledged and certified. I hereby further
comfirm that this project truly represents the bonafide work undertaken by me and is the outcome of
thorough and systematic research.

Ku. Shubhangi G. Shende

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ACKNOWLEDGEMENT

Blessing, guidance, cooperation and support are always needed to accomplish any task and at the same
time faith, endeavor and dedication are also required for gaining knowledge.

I am indebted to Dr. Mukesh Patil, Directo, NIT GSM who has been a source of inspiration through his
constant guidance, personal interest, encouragement and help.

I have a great pleasure to put my deep sense of gratitude to Prof. Vaibhav Bhalerao, Project Guide, for her
able guidance throughout this project, who had been a constant source of inspiration and under whose
dynamic guidance, I have been able to complete my project.

I am highly obliged to my parents for their personal care and inspiration that has placed me to work on this
project.

I would be failing in my duty if I omit to thank the Staff of Organization without whose cooperation, my
project would remain an incomplete assignment.

Ku. Shubhangi G. Shende

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CONTENT TABLE

SR. NO PARTICULARS PAGE

NO.

1. INTRODUCTION 1

2. COMPANY PROFILE 20

3. RESEARCH METHODOLOGY

4.
OBJECTIVE OF THE STUDY
5.
NEED OF STUDY
6.
RELEVANCE OF STUDY
7.
HYPOTHESIS

8. DATA ANALYSIS AND INTERPRETATION

9. LIMITATIONS OF STUDY

10. CONCLUSION

11. SUGGESTIONS

12. BIBLIOGRAPHY
13. ANNEXURE

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CHAPTER 1

INTRODUCTION

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INTRODUCTION

“Working capital means the part of the total assets of the business that change from one form to form in

ordinary course of business operation.”

Concept of Working Capital:-

The word working capital is made of two words

1. Working

2. Capital

The word working means day to day operation of the business, whereas the word capital means monetary

value of all assets of the business.

Working capital:-

Working capital may be regarded as the life blood of business. Working capital is of major importance to

internal and external analysis because of its close relationship with the current day today operation of a

business. Every business needs funds for two purposes.

 Long term funds are required to create production facilities though purchase of fixed assets such as

plants machines, lands, buildings &etc.

 Short term funds are required for the purchase of raw materials, payment of wages, and other day-

to-day expenses. It is otherwise known as revolving or circulating capital it is nothing but the

difference between current assets and current liabilities .i.e.

WORKING CAPITAL = CURRENT ASSET – CURRENT LIABILITIES

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Businesses use capital for construction, renovation, furniture, software, equipment or machinery. It is also

commonly used to purchase inventory, or to make payroll. Capital is also used often to put a down payment

down on a piece of commercial real estate. Working capital is essential for any to succeed. It is becoming

increasingly important to have access to more working capital when we need it.

Concept of working capital

GROSS WORKING CAPITAL = TOTAL OF CURRENT ASSET

NET WORKING CAPITAL = EXCESS OF CURRENT ASSET OVER CURRENT LAIBILITY

CURRENT ASSET CUREENT LAIBILITY

 Cash in hand / at  Bills payable

bank
 Bills receivable  Sundry creditors

 Sundry debtors  Outstanding expenses

 Short term loans  Accrued expenses

 Investors / stock  Bank over drafts

 Temporary investment

 Prepaid expenses

 Accrued incomes

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COMPONENTS OF WORKING CAPITAL

1. Current assets

A major component of working capital is current assets. A shortened definition of current assets is: a

company's cash plus its other resources that are expected to turn to cash within one year. However, the

following is a more complete definition: Current assets include cash (which is not restricted for a long-term

purpose) plus the company's other resources that will turn to cash or will be used up within one year (of the

date shown in the heading of the balance sheet). However, in the rare situations when a company's normal

operating cycle is longer than one year, the length of the operating cycle is used in place of one year for

determining a current asset. Examples of current assets (listed in the order they are expected to turn into

cash) include:

 cash and cash equivalents

 temporary investments

 accounts receivable

 inventory

 supplies

 prepaid expenses

2. Current liabilities

The other major component of working capital is current liabilities. A shortened definition of current

liabilities is: a company's obligations that will be due within one year. However, a more complete

definition is: Current liabilities are a company's obligations (that are the result of a past event) that will be

due within one year of the balance sheet's date. However, in the rare situations when a company's normal

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operating cycle is longer than one year, the length of the operating cycle is used in place of one year for

determining a current liability. Examples of current liabilities include:

 loan principal amounts that will be due within one year

 accounts payable

 wages payable

 payroll taxes withheld from employees

 Accrued expenses/liabilities (utilities, repairs, interest, etc.)

 customer deposits and deferred revenues

If there is assurance that a current liability will be replaced by a long-term liability, it should be reported as

a long-term liability. (The reason is the liability will not be requiring the use of the company's working

capital.)

3. Operating cycle

The need of working capital arrived because of time gap between production of goods and their

actual realization after sale. This time gap is called “operating cycle” or “working capital cycle”.

The operating cycle of a company consist of time period between procurement of inventory and the

collection of cash from receivables. The operating cycle is the length of time between the

companies’ outlay on raw materials, wages and other expenses and inflow of cash from sales of

goods. Operating cycle is an important concept management of cash and management of cash

working capital. The operating cycle reveals time that elapses between outlays of cash inflow of

cash. Quicker the operating cycle less amount of investment working capital needed it improves

probability. The duration of the operating cycle depends on mature of industries and efficiency

working capital management.

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OPERATING CYCLE

RAW
MATERIAL

CASH WORK IN
PROGRESS

DEBTORS
FINISH
AND
GOODS
RECEVIABLE

SALES

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WORKING CAPITAL RATIOS

Ratio analysis can be used by financial executives to check upon the efficiency with which working

capital is being used in the enterprise. The following are the important ratios to measure the efficiency

of working capital.

A. WORKING CAPITAL RATIO

The working capital ratio, also called the current ratio, is a liquidity ratio that measures a firm’s ability

to pay off its current liabilities with current assets. The working capital ratio is important to creditors

because it shows the liquidity of the company.

WORKING CAPITAL RATIO = CURRENT ASSET – CURRENT LIABILITIES

B. WORKING CAPITAL LIQUIDITY RATIO

Two key measures, the current ratio and the quick ratio, are used to assess short term liquidity.

Generally a higher ratio indicates better liquidity.

1. Current ratio

Liquidity ratios tell you about a company’s ability to meet all its financial obligations, including debt,

payroll, payments to vendors, taxes, and so on. The numbers come from the Balance Sheet. The current

ratio is one of the liquidity ratios. It measures a company’s ability to pay its short-term obligations. The

current ratio looks at current assets and current liabilities.

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𝑪𝑼𝑹𝑹𝑬𝑵𝑻 𝑨𝑺𝑺𝑬𝑻𝑺
CURRENT RATIO = 𝑪𝑼𝑹𝑹𝑬𝑵𝑻 𝑳𝑰𝑨𝑩𝑰𝑳𝑰𝑻𝑰𝑬𝑺

2. Quick ratio

The quick ratio is an indicator of a company’s short-term liquidity position and measures a company’s

ability to meet its short-term obligations with its most liquid assets. Since it indicates the company’s

ability to instantly use its near-cash assets (that is, assets that can be converted quickly to cash) to pay

down its current liabilities, it is also called the ACID TEST RATIO.

𝑪𝑼𝑹𝑹𝑬𝑵𝑻 𝑨𝑺𝑺𝑬𝑻−𝑰𝑵𝑽𝑬𝑵𝑻𝑶𝑻𝒀
QUICK RATIO = 𝑪𝑼𝑹𝑹𝑬𝑵𝑻 𝑳𝑰𝑨𝑩𝑰𝑳𝑰𝑻𝑰𝑬𝑺

3. Working capital turn over ratio

The working capital turnover ratio measures how well a company is utilizing its working capital

to support a given level of sales. Working capital is current assets minus current liabilities. A high

turnover ratio indicates that management is being extremely efficient in using a firm's short-term

assets and liabilities to support sales. Conversely, a low ratio indicates that a business is investing

in too many accounts receivable and inventory assets to support its sales, which could eventually

lead to an excessive amount of bad debts and obsolete inventory write-offs.

𝑺𝑨𝑳𝑬𝑺
WORKING CAPITAL =
𝑾𝑶𝑹𝑲𝑰𝑵𝑮 𝑪𝑨𝑷𝑰𝑻𝑨𝑳

4. The Debtors Turnover Ratio

The Debtors Turnover Ratio also called as Receivables Turnover Ratio shows how quickly the

credit sales are converted into the cash. This ratio measures the efficiency of a firm in managing and

collecting the credit issued to the customers.

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𝑵𝑬𝑻 𝑺𝑨𝑳𝑬𝑺
DEBTORS TURNOVER RATIO =
𝑨𝑽𝑬𝑹𝑨𝑮𝑬 𝑨𝑪𝑪𝑶𝑼𝑵𝑻𝑺 𝑹𝑬𝑪𝑬𝑰𝑽𝑨𝑩𝑳𝑬

5. The Inventory turnover

The Inventory turnover is a measure of the number of times inventory is sold or used in a time period

such as a year. It is calculated to see if a business has an excessive inventory in comparison to its sales

level. The equation for inventory turnover equals the cost of goods sold divided by the

average inventory.

INVENTORY TURNOVER = 𝑺𝑨𝑳𝑬𝑺

I𝐍𝐕𝐄𝐍𝐓𝐎𝐑𝐘

6. Current Assets Turnover Ratio

Current Assets Turnover Ratio indicates that the current assets are turned over in the form of sales more

number of times. A high current assets turnover ratio indicates the capability of the organization to achieve

maximum sales with the minimum investment in current assets. Higher the current ratio better will be the

situation.

𝑵𝑬𝑻 𝑺𝑨𝑳𝑬𝑺
CURRENT ASSET TURNOVER RATIO =
𝑪𝑼𝑹𝑹𝑬𝑵𝑻 𝑨𝑺𝑺𝑬𝑻𝑺

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C. DETERMINANTS OF WORKING CAPITAL

The amount of working capital is depends upon following factors

1. NATURE OF BUSINESS

Some businesses are such due to their very nature, that their requirement of fixed capital is more

rather than working capital. These businesses sell services and not the commodities and that too on

cash basis. As such, no funds are blocked in piling inventories and also no funds are blocked in

receivables. E.g. public utility services like railways, infrastructure oriented project etc. there

requirement of working capital is less. On the other hand, there are some businesses like trading

activity, where requirement of fixed capital is less but more money is blocked in inventories and

debtors.

2. LENTH OF PRODUCTION CYCLE

In some business a like machine tools industry, the time gap between the acquisition of raw material

till the end of final production of finished products itself is quite high. As such amount may be

blocked either in raw material or work in progress or finished goods or even in debtors. Naturally

there need of working capital is high.

3. SIZE AND GROWTH OF BUSINESS

In very small company the working capital requirement is quit high overhead, higher buying and

selling cost etc. as such medium size business positively has edge over the small companies. but if

the business start growing after certain limit, the working capital requirements may adversely affect

by the increasing size.

4. BUSINESS CYCLE

If the company is the operating in the time of boom, the working capital requirement may be more

as the company may like to buy more raw material, may increase the production and sales to take

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the benefit of favourable market, due to increase in the sales, there may more and more amount of

funds blocked in stock and debtors etc. similarly in the case of depressions also, working capital

may be high as the sales terms of value and quantity may be reducing, there may be unnecessary

piling up of stack without getting sold, the receivable may not be recovered in time etc.

5. TERMS OF PURCHASE AND SALES

Some time due to competition or customs, it may be necessary for the company to extend more and

more credit to consumers, as result which more and more amount is locked up in debtors or bills

receivable which increases the working capital requirements. On the other hand, in the case of

purchase, if the credit is offered by suppliers of goods and services, a part of the working capital

requirement may be financed by them, but it is necessary to purchase on cash, the working capital

requirement will be higher.

6. PROFITABILITY

The profitability of the business may be vary in each and every individual case, which is in turn its

depend on numerous factors, but high profitability will positively reduce the strain on working

capital requirement of the company, because the profits to the extent that they earned in cash may

be used to meet the working capital requirement of the company.

7. OPERATING EFFICIENCY

If the business is carried on more efficiently, it can operate in profit which may reduce the strain on

working capital; it may ensure proper utilization of existing resources by eliminating the waste and

improved co-ordination etc.

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NEED OF WORKING CAPITAL MANGEMENT

The need for working capital gross or current assets cannot be over emphasized. As already observed, the

object of financial decision making is to maximize the shareholder wealth. To achieve this, it is necessary

to generate sufficient profits can be earned will naturally depend upon the magnitude of the sales among

other things but sales cannot convert into cash. There is a need for working capital in the form of current

assets to deals with the problem arising out of lack of immediate realization of cash against goods sold.

Therefore sufficient working capital is necessary to sustain sales activity. Technically this is referring to

operating or cash cycle. If the company has certain amount of cash, it will be required for purchasing the

raw material may be available on credit basis. Then the company has to spend some amount for labour and

factory overhead to convert the raw material in work in progress and ultimately finished goods. These

finished goods convert in to sales on credit basis in the form of sundry debtors. Sundry debtors are

converting into cash on credit period. Thus some amount of cash is blocked in raw materials, work in

progress, finished goods, and sundry debtors and day to day cash requirement. However some part of

current assets may be financed by the current liabilities also. The amount required to be invested in this

current assets is always higher than the funds available from current liabilities. This is the precise reason

why the needs for the working capital arise.

D. GROSS WORKING CAPITAL AND NET WORKING CAPITAL

There are two concepts of working capital management

1. GROSS WORKING CAPITAL

Gross working capital refers to the firm’s investment in current assets. Current assets are the assets

which can be convert in to cash within year includes cash, short term securities, debtors, bills

receivable and inventory.

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2. NET WORKING CAPITAL

Net working capital refers to the difference between current assets and current liabilities, Current

liabilities are those claims of outsiders which are expected to mature for payment within an

accounting year and include creditors, bills payable and outstanding expenses. Net working capital

can be positive or negative efficient working capital management requires that firms should operate

with amount of net working capital, the exact Amount varying from firm to firm and depending,

among other things; on nature of industries. Net working capital is necessary because the cash

outflow and inflow do not coincide. The cash outflow resulting from payment of current liabilities

is relatively predictable. The cash inflow is however difficult to predict. The more predictable the

cash inflows are, the less net working capital will be required; the concept of working capital was,

first evolved by Karl Marx. Marx used the term variable capital' means outlays for payrolls

advanced to workers before the completion work. He compared this with 'constant capital' which

according to him is nothing but 'dead labour'. This 'variable capital' is nothing wage fund which

remains blocked in terms of financial management, in working-process along with other operating

expenses until it is released through sale of finished goods. Although Marx did not mentioned that

workers also gave credit to the firm by accepting periodical payment of wages which funded a

portioned of work in progress the concept of working capital, as we understand today was

embedded in his ‘variable capital’.

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TYPES OF WORKING CAPITAL

TYPES OF
WORKING
CAPITAL

ON THE ON THE
BASIS OF BASIS OF
VALUE TIME

GROSS NET REGULAR TEMPORARY

WORKING WORKING WORKING WORKING
CAPITAL CAPITAL CAPITAL CAPITAL

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CHAPTER 2

COMPANY PROFILE

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COMPANY PROFILE

MAHINDRA & MAHINDRA LIMITED

COMPANY TYPE - PUBLIC

INDUSTRY - AUTOMOTIVE

TRADED AS - BSE: 500520

NSE: M&M
BSE SENSEX CONSTITUENT
NSE NIFTY 50

FOUNDED - 02 OCTOBER 1945 (78 year ago)

FOUNDERS - J.C. MAHINDRA

K.C. MAHINDRA
MALIK GHULAM MUHAMMAD

HEADQUARTERS - MUMBAI, MAHARASHTRA, INDIA

KEY PEOPLE - ANAND MAHINDRA (Chairman)

DR. ANISH SHAH (MD & CEO)
RAJESH JEJURIKAR (Executive Director AFS)

PRODUCTS - AUTOMOBILES,
COMMERCIAL VEHICLES,
TRACTORS
MOTORCYCLES

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PRODUCTION OUTPUT - 14,076,043

Vehicles (2022)
REVENUE - 122,475 crore
(US$15 billion) (FY2023)

OPERATING INCOME - 12,554 crore

(US$1.6 billion) (FY2023)

NET INCOME - 11,187 crore

(US$1.4 billion) (FY2023)

TOTAL ASSETS - 205,891 crore

(US$ 26 billion) (FY2023)

TOTAL EQUITY - 67082 crore

(US$ 8.4 billion) (FY2023)
NUMBER OF EMPLOYEES - 140,619 (2022)

PARENT - MAHINDRA GROUP

SUBSIDIARIES - MAHINDRA LAST MILE

MOBILITY
MAHINDRA TRACTORS
MAHINDRA 2 WHEELERS
MAHINDRA TRUCK AND BUS
BSE COMPANY
DIVISION
YEZDI
JAWA MOTO
AUTOMOBILI PININFARINA
PININFARINA

WEBSITE - [Link]

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HISTORY OF MAHINDRA & MAHINDRA

Mahindra & Mahindra Limited is an Indian multinational car manufacturing corporation headquartered

in Mumbai, Maharashtra, India. Mahindra & Mahindra was founded as a steel trading company on October

2, 1945 in Ludhiana as Mahindra & Muhammed by brothers Harikrishnan and Jayakrishnan and Jagdish

Chandra Mahindra along with Malik Ghulam Muhammad. Anand Mahindra, the present Chairman of

Mahindra Group, is the grandson of Jagdish Chandra Mahindra. After India gained

independence and Pakistan was formed, Muhammad immigrated to Pakistan. Muhammad acquired

Pakistani citizenship and settled in Lahore, and in 1948 become Pakistan's first finance minister.

Thereafter, the company changed its name to Mahindra & Mahindra in 1948. It eventually saw a business

opportunity in expanding into manufacturing and selling larger MUVs, starting with the assembly under

licence of the Willys Jeep in India. Soon established as the Jeep manufacturers of India, the company later

commenced manufacturing light commercial vehicles (LCVs) and agricultural tractors.

Over the past few years, the company has taken interest in new industries and in foreign markets. They

entered the two-wheeler industry by taking over kinetic motors in India.

In 2011 Mahindra acquired a majority stake of south Korea’s Ssangyong Motor, turning it into a

subsidiary. In December 2020, after Mahindra stopped funding it, Ssangyoung enterd into receivership de

facto no longer being a Mahindra subsidiary from that point on and de jure after November 2022 when a

KG Group led consortium completed the acquisition procedures for a controlling stake, moving Ssangyong

out of receivership.

In October 2014, Mahindra acquired a 51% controlling stake in Peugeot Moto cycles and a 100%

controlling stake in October 2019. In March 2016, Mahindra acquired 35% of Finland- based Sampo

Rosenlew, entering the combine harvester business, subsequently increasing its stake in the company to

49.04% in December 2019.

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In January 2018, Mahindra announced its foray into the sprayers business through the acquisition of a 26

equity stake in MI TRA Agro Equipmen Pvt Ltd, a Maharashtra- based AgTech company (MITRA) In

March 2020, Mahindra further increased its stake in the company to 39%

In June 2019, Mahindra purchased an 11.25% stake in Switzerland – based agro technology firm Gamaya.

The acquisition enabled Mahindra to further develop and deploy next – generation farming capabilities

such as precision agriculture and digital farming technologies.

In December 2023, Mahindra & Mahindra acquired a 60.01% stake in Emergent Solren Private Limited, a

solar power generator subsidiary of Mahindra Holdings limited, for Rs. 288.05 crore.

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SHARE HOLDING

SHAREHOLDERS SHAREHOLDING

PROMOTERS 19.33%

MUTUAL FUNDS 40.86%

FOREIGN INSTITUTIONAL INVESTOR 26.26%

OTHER INSTITUTIONS 0.07%

PUBLIC 9.71%

OTHER 3.77%

TOTAL 100.0%

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CHAPTER 3

RESEARCH
METHODOLOGY

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RESEARCH METHODOLOGY

 Research methodology is a way to systematically solve the research problem.

 It may be understood as a science of studying now research is done systematically.

 In that various steps, those are generally adopted by a researcher in studying his problem along with

the logic behind them.

 It is important for research to know not only the research method but also know methodology.

 “The procedures by which researchers go about their work of describing, explaining and predicting

phenomenon are called methodology”.

 All this means that it is necessary for the researcher to design his methodology for his problem as

the same may differ from problem to problem.

 Data collection is important step in any project and success of any project will be largely depend

upon now much accurate you will be able to collect and how much time, money and effort will be

required to collect that necessary data, this is also important step.

 Data collection plays an important role in research work. Without proper data available for analysis

you cannot do the research work accurately.

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DATA COLLECTION

TYPES OF DATA COLLECTION

Data can be defined as the quantitative or qualitative values of a variable. Data is plural of datum which

literally means to give or something given. Data is thought to be the lowest unit of information from which

other measurements and analysis can be done. Data can be numbers, images, words figures, facts or ideas.

Data in itself cannot be understood and to get information from the data one must interpret it into

meaningful information. There are various methods of interpreting data. Data sources are broadly classified

into primary and secondary data.

IMPORTANCE OF DATA AND DATA COLLECTION

Data is one of the most important and vital aspect of any research studies. Researchers conducted in

different fields of study can be different in methodology but every research is based on data which is

analyzed and interpreted to get information.

Data is the basis unit in statistical studies. Statistical information like census, population variables, health

statistics, and road accidents records are all developed from data.

Data is important in computer science. Numbers, images and figures in computer are all data.

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TYPES OF DATA

PRIMARY DATA

Primary data is information collected directly from the first-hand experience. This is the information that

you gather for the purpose of a particular research project. Primary data collection is a direct approach that

fits to specific company needs. It can be a long process but does provide important first-hand information

in many business cases. Primary data is original data – from the first source. It is like raw material.

Most popular examples of primary data sources are:

 Interview (personal interview, telephone, e-mail)

 Self-administered surveys and questionnaires

 Field observation

 Experiments

 Life histories

 Action research

 Case studies

 Diary entries, letters, and other correspondence

 Eyewitness accounts

 Ethnographic research

 Personal narratives, memoirs.

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Advantages of primary data:

 Resolve specific research issues

Performing your own research allows you to address and resolve issues specific to your own

business situation. The collected information is the exact information that the researcher wants to

know and he reports it in a way that benefits the specific situation in an organization. Marketers and

researchers are asked to find data regarding specific market instead of finding data for the mass

market. This is the main difference from secondary data.

 Better accuracy

Primary data is much more accurate because it is directly collected from a given population.

 Higher level of control

the marketer can control easily the research design and method. In addition, you have a higher level

of control over how the information is gathered.

 Up-to-date information

the primary market research is a great source of latest and up-to-date information as you collect it

directly from the field in real time. Usually, secondary data is not so up-to-date and recent.

 You are the owner of the information

Information collected by the researcher is their own and is typically not shared with others. Thus,

the information can remain hidden from other current and potential competitors.

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 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

Disadvantages:

 More expensive – it could be very expensive to obtain primary data collection because the

marketer or the research team has to start from the beginning. It means they have to follow the

whole study procedure, organizing materials, process and etc.

 Time consuming – it is am matter of a lot of time to conduct the research from the beginning to the

end. Often it is much longer in comparison with the time needed to collect secondary data.

 Can have a lot of limits - Primary data is limited to the specific time, place or number of

participants and etc. To compare, secondary data can come from a variety of sources to give more

details

What is secondary data?

Secondary data is the data that have been already collected for another purpose but has some relevance to

your research needs. In addition, the data is collected by someone else instead of the researcher himself.

Secondary data is second-hand information. It is not used for the first time. That is why it is called

secondary. Secondary data sources provide valuable interpretations and analysis based on primary

sources. They may explain in details primary sources and often uses them to support a specific thesis or a

point of view.

Most common examples of secondary data sources are:

 Previous research

 Mass media products

 Government reports

 Official statistics

 Web information

 Historical data

 Journal articles

 Biography

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 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR
 Research analysis

 Financial sources such as profit and loss statements balance sheets, inventory records, sales

records and etc.

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 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

Advantages of Secondary Data:

Time and Cost Effective

Generally, the secondary data can be collected very easily where researchers have to find the source

of that data and then collect it at all. Besides, the time and cost required to collect this type of data is very

lesser as compared to that of primary data. Hence, it can be said that it is primary advantage of secondary

data. This thing helps the researchers to collect the data easily and without spending much time and

financial resources.

Ease of Access

In order to access good secondary data, the marketers visit libraries or the places where the secondary data

can be found easily. Besides, internet has also made the secondary data also very much easier to access and

it can be said as another advantage of the secondary data. As an example of a research study, the literature

review can be said as a secondary data which can be accessed very easily.

Disadvantages of Secondary Data

The disadvantages of the secondary data can include a number of things. Following are some of them:

 Not Specific to One’s Needs

In many forms of the secondary research data, it is not specific to the needs of a researcher.

Therefore, the researcher cannot only rely on the secondary research data and it is not of much use to him.

It can be exemplified better by stating a simple scenario. For example, a person or organization that

collected the data for it will be saved as secondary data for future researches. However, the future

researchers who will use that data as secondary data might not find it appropriate and specific to their

needs.

 Biasness

The secondarily collected data is usually collected by someone else than the one who uses it.

Hence, generally the secondary data is biased in the favour of one who collected it and might not

necessarily meet with the requirements of another researcher. In addition, biasness can also refer to the

disadvantage in terms of the researcher manipulating the secondary data.

A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA

Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

34

A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA

Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

 Lack of Availability

This can also be said as other disadvantages where the secondary data might not be available and

accessible easily. Sometimes, it can be the case that researcher may not be able to find the exactly relevant

and appropriate secondary available data. Sometimes, a researcher conducting a study on a particular topic

does not find himself in a position to find the data which addresses his research question and purpose in a

proper manner.

 Time Lag Issues

Information which is collected from secondary sources such as books and historical surveys might not sync

with the times and it can change drastically. Hence, this can emerge as another disadvantage of the
28
secondary research data where the time lag issue rises and as a result, it can be highly risky for the business

or a project.

In my project report I have used secondary data for analysis of working capital management of Mahindra

& Mahindra.

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

CHAPTER 4

OBJECTIVES OF
THE STUDY

A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA

Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

OBJECTIVIES OF THE STUDY

Study of the working capital management is important because unless the working capital is managed

effectively, monitored efficiently planed properly and renewed periodically at regular intervals to remove

bottlenecks if any of the company cannot earn profits and increase its turnover. With this primary objective

of the study, the following further objectives are framed of a depth analysis.

 To study the working capital management of Mahindra & Mahindra.

 To gain familiarity with various components of working capital in Mahindra & Mahindra.

 To study the liquidity position through various working capital ratios.

 To offer suitable suggestions based on findings of the study.

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Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

CHAPTER 5

NEED OF
THE STUDY

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Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

NEED OF THE STUDY

 Well-managed working capital is crucial to the running of a healthy and successful business.

 An important part of working capital management is a company’s cost structure. Working capital

represents the liquidity available to a business.

 In this background the present study is needed to know the significance of the working capital is for

Mahindra & Mahindra, how the Mahindra & Mahindra managed the working capital for the smooth

running of the business.

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Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

CHAPTER 6

RELEVANCE OF
STUDY

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Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

RELEVANCE OF STUDY

A company spends most of their time and effort on day to day working capital management. Still,

due to the inability of financial mangers to properly plan and control the current assets and current

liabilities of their company, the failure of business can be attributed to the inefficient working capital

management. Inadequate working capital leads to company bankruptcy. On the other hand, too much

working capital results in wasting cash and ultimately the decrease in the profitability. A decrease in

profitability can leads to the decrease in the company share prices. So it is important to for the company to

make effective working capital for the betterment of the company.

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

CHAPTER 7

HYPOTHESIS OF
THE STUDY

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

HYPOTHESIS OF THE STUDY

A hypothesis is a tentative statement about the relationship between two or more variables. Remember, a

hypothesis does not have to be correct. While the hypothesis predicts what the researchers expect to see, the

goal of research is to determine whether this guess is right or wrong.

 Null Hypothesis H0:

1) the firm is facing difficulty in paying short term debt.

2) the current liabilities are increasing than current asets year by year.

 Alternative Hypothesis H1 :

1) the firm is not facing difficulty in paying short term debt.

2) the current liabilities are decreasing than current asets year by year.

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

CHAPTER 8

DATA ANALYSIS
INTERPRETATION

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

DATA ANALYSIS AND INTERPRETATION

LIQUIDITY RATIOS:-

 CURRENT ASSET:-

YEAR CURRENT ASSETS

MARCH 19

MARCH 20

MARCH 21

MARCH 22

MARCH 23

20000
18071
18000 16474.47
16000
14000 12608
11635.68
12000
10128.21
10000
8000
6000
4000
2000
0
2015 2016 2017 2018 2019

INTERPRETATION

Current assets of the company are increasing continuously from 10128.21 to 18071 from the year march

2015 to march 2019.

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

 CURRENT LIABILITY:-

YEAR CURRENT LIABILITIES

MARCH 19

MARCH 20

MARCH 21

MARCH 22

MARCH 23

16000
14334.07
14000 13323.21

12000
9844.32 9634.05
10000 8974.27

8000

6000

4000

2000

0
2015 2016 2017 2018 2019

INTERPRETATION

Current liabilities of the company are increasing continuously from 8974.27 to 14334.07 from the year march

2015 to march 2019. When companies have minimum liabilities it creates a better goodwill in market. High

current liabilities indicate that company is using credit facilities by creators.

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

 CURRENT RATIO:-

𝑪𝑼𝑹𝑹𝑬𝑵𝑻 𝑨𝑺𝑺𝑬𝑻𝑺
CURRENT RATIO = 𝑪𝑼𝑹𝑹𝑬𝑵𝑻 𝑳𝑰𝑨𝑩𝑰𝑳𝑰𝑻𝑰𝑬𝑺

YEAR CURRENT ASSETS CURRENT LIABILITIES RATIOS

MARCH 19

MARCH 20

MARCH 21

MARCH 22

MARCH 23

1.35
1.31
1.3
1.26
1.25 1.24

1.2 1.18

1.15 1.13

1.1

1.05

1
2015 2016 2017 2018 2019

INTERPRETATION

Current ratio of the company is increasing continuously from 1.13 to 1.31 from the year march 2015 to

march 2017. And it decreases from 1.31 to 1.24 from march 2017 to march 2018 and it further slightly

increase from 1.24 to 1.26 from march 2018 to march 2019. As the current ratio in slightly decline from

March 2017 to march 2019 the company needs to improve its position.

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

 QUICK RATIO:-

𝑪𝑼𝑹𝑹𝑬𝑵𝑻 𝑨𝑺𝑺𝑬𝑻−𝑰𝑵𝑽𝑬𝑵𝑻𝑶𝑻𝒀
QUICK RATIO = 𝑪𝑼𝑹𝑹𝑬𝑵𝑻 𝑳𝑰𝑨𝑩𝑰𝑳𝑰𝑻𝑰𝑬𝑺

YEAR CURRENT ASSETS - CURRENT LIABILITIES RATIOS

INVENTORY

MARCH 19

MARCH 20

MARCH 21

MARCH 22

MARCH 23

1.05 1.03
1.02

1 0.99

0.95
0.91
0.9
0.86
0.85

0.8

0.75
2015 2016 2017 2018 2019

40
A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

INTERPRETATION

Quick ratio of the company is increasing continuously from 0.86 to 1.03 from the year march 2015 to

march 2018 but it slightly decreases from 1.03 to 0.99 from March 2018 to March 2019. A company

should have quick ratio greater than 1 so that it can pay for its current liabilities easily. The company has to

improve its quick ratio for smooth pay of current liabilities.

 WORKING CAPITAL:-

WORKING CAPITAL = 𝑪𝑼𝑹𝑹𝑬𝑵𝑻 𝑨𝑺𝑺𝑬𝑻𝑺 – 𝑪𝑼𝑹𝑹𝑬𝑵𝑻 𝑳𝑰𝑨𝑩𝑰𝑳𝑰𝑻𝑰𝑬𝑺

YEAR CURRENT ASSETS CURRENT LIABILITIES RATIOS

MARCH 19

MARCH 20

MARCH 21

MARCH 22

MARCH 23

4000

3500
2973.95
3000

2500

2000

1500

1000

500

0
2015 2016 2017 2018 2019

41
A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

INTERPRETATION

Working capital of the company is increasing continuously from 1153.94 to 3736.99 from the year march

2015 to march 2019. From this we can conclude that the current assets of the company are higher than

the current liabilities.

INVENTORY TURNOVER RATIO:-

INVENTORY TURNOVER 𝑺𝑨𝑳𝑬𝑺

= 𝐈𝐍𝐕𝐄𝐍𝐓𝐎𝐑𝐘

YEAR SALES INVENTORY RATIOS

MARCH 19

MARCH 20

MARCH 21

MARCH 22

MARCH 23

20
18.02
18
15.98 15.97
16 15.21
13.96
14
12
10
8
6
4
2
0
2015 2016 2017 2018 2019

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

INTERPRETATION

Inventory turnover ratio of the company is increasing from 15.98 to 18.02 from the year march 2015 to

march 2018. But in March 2018 to march 2019 it slightly decreases from 18.02 to 13.96. The company has

to improve its position so that the stocks are frequently sold and less amount of money is required to

finance the inventory.

 WORKING CAPITAL TURNOVER RATIO :-

𝑺𝑨𝑳𝑬𝑺
WORKING CAPITAL =
𝑾𝑶𝑹𝑲𝑰𝑵𝑮 𝑪𝑨𝑷𝑰𝑻𝑨𝑳

YEAR NET SALES WORKING CAPITAL RATIOS

MARCH 19

MARCH 20

MARCH 21

MARCH 22

MARCH 23

35 33.27

30

25 22.81

20
14.72 15.45
14.35
15

10

0
2015 2016 2017 2018 2019

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

INTERPRETATION

Working capital turnover ratio of the company is decreasing continuously from 33.27 to 14.35 from the

year march 2015 to march 2019. This is because the current liabilities are increasing therefore the working

capital turnover ratio is decreasing.

 CURRENT ASSET TURNOVER RATIO:

𝑵𝑬𝑻 𝑺𝑨𝑳𝑬𝑺
CURRENT ASSET TURNOVER RATIO=
𝑪𝑼𝑹𝑹𝑬𝑵𝑻 𝑨𝑺𝑺𝑬𝑻𝑺

YEAR NET SALES CURRENT ASSETS RATIOS

MARCH 19

MARCH 20

MARCH 21

MARCH 22

MARCH 23

44
A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

4.5
4.06
4 3.75 3.76

3.5
3 2.97
3
2.5

1.5

0.5

0
2015 2016 2017 2018 2019

INTERPRETATION

Current assets turnover ratio of the company is decreasing continuously from 4.06 to 2.97 from the year

march 2015 to march 2019. High current assets indicate the capability of the organisation to achieve

maximum sales with the minimum investment in current assets. But the current asset turnover ratio is

decreasing so the company needs more source of finance.

 DEBETORS TURNOVER RATIO:-

𝑵𝑬𝑻 𝑺𝑨𝑳𝑬𝑺
Debtors Turnover Ratio =
𝑨𝑽𝑬𝑹𝑨𝑮𝑬 𝑨𝑪𝑪𝑶𝑼𝑵𝑻𝑺 𝑹𝑬𝑪𝑬𝑰𝑽𝑨𝑩𝑳𝑬

YEAR RATIO

MARCH 19

MARCH 20

MARCH 21

MARCH 22

MARCH 23

45
A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

16.4
16.13 16.17
16.2
16 15.93

15.8
15.6
15.37
15.4
15.2 15.06
15
14.8
14.6
14.4
2015 2016 2017 2018 2019

INTERPRETATION

Debtor’s turnover ratio of the company is increasing continuously from 15.37 to 16.17 from the year march

2015 to march 2017. But it decreases from 16.17 to 15.06 from March 2017 to March 2019. This means

that the average collection is taking longer time.

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

LIMITATIONS OF THE STUDY

 This project has completed with the annual reports; it just constitutes one part of data collection i.e
secondary data.

 This project is based on 5 years annual report. Conculsion and recommendation are based on such

limited data. The trend of last 5 years may or may not reflect the real working capital position of the

company.

 Many facts and data are such that they are not to be disclosed because of the confidential nature of

the same.

 There may be some fractional differences in the calculated ratios.

 Also this project is completely based on secondary data collected from various sources like internet,

books, etc.

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

CHAPTER 9

CONCLUSION

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Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

CONCLUSION

 Working capital of the company is increasing and showing positive working capital per year. It

shows goods liquidity position.

 Positive working capital indicates that company has the ability of payment of short term debts.

 Working capital of the company increases because the current assets of the company are more than

the current liabilities of the company.

 Current ratio of the company is increasing which means company has the ability to pay the short

terms debts.

 Quick ratio is less than 1 in march 2019 which means the company may not able to fully pay off its

current liabilities.

 Current assets turnover ratio of the company is decreasing means the company needs more finance.

 Debtor’s turnover ratio is decreasing means the average collection is taking longer time.

 Testing of hypothesis H1

 Alternative Hypothesis H1 :

1) the firm is not facing difficulty in paying short term debt.

2) the current liabilities are decreasing than current asets year by year.

 From the analysis it is proven that the firm is not facing difficulty in paying the short term debt .

Hence we accept the alternative hypothesis.

 From the analysis it is proven that the firm current liability is decreasing than current assets year by

year. Hence we accept the alternative hypothesis.

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

CHAPTER 10

SUGGESTIONS

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

SUGGESTIONS

 The company should follow the present working capital.

 The company should maintain the same current ratio.

 The company should increase its quick ratio so that it is able to pay off its current liabilities.

 The company should increase its current assets turnover ratio.

 Debtor’s turnover ratio should be increase.

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

CHAPTER 11

BIBLIOGRAPHY

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

BIBLIOGRAPHY

Book preferred:-

 FINANCIAL MANAGEMENT-BY. KHAN & JAIN

Magazine:-

 Business Today

 Business world

Newspapers:-

 The Time of India

 Economics Times

Web Site

 [Link]

 [Link]

 [Link]

 [Link]&[Link]

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

CHAPTER 12

ANNEXURE

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

PROFIT AND LOSS ACCOUNT OF MAHINDRA & MAHINDRA FOR LAST 5 YEARS
Mar 23 Mar 22 Mar 21 Mar 20 Mar 19

12 months 12 months 12 months 12 months 12 months

INCOME
Revenue From Operations [Gross] 119,040.38 89,353.96 72,678.98 74,304.07 103,015.23
Revenue From Operations [Net] 119,040.38 89,353.96 72,678.98 74,304.07 103,015.23
Other Operating Revenues 2,228.17 816.61 1,598.80 1,077.86 1,705.45
Total Operating Revenues 121,268.55 90,170.57 74,277.78 75,381.93 104,720.68
Other Income 1,206.49 934.51 1,033.11 1,028.69 1,085.61
Total Revenue 122,475.04 91,105.08 75,310.89 76,410.62 105,806.29
EXPENSES
Cost Of Materials Consumed 68,477.97 46,265.48 32,797.56 32,321.80 56,120.20
Purchase Of Stock-In Trade 7,541.90 6,399.37 5,473.64 5,273.50 5,961.90
Changes In Inventories Of FG,WIP And Stock-In
-2,032.31 -861.66 135.59 826.62 -1,730.48
Trade
Employee Benefit Expenses 9,677.95 8,386.74 7,813.26 8,214.82 11,563.89
Finance Costs 5,829.70 5,018.05 6,102.22 6,021.15 5,021.35
Depreciation And Amortisation Expenses 4,356.81 3,507.50 3,378.11 3,366.68 3,990.77
Other Expenses 17,317.75 15,452.96 14,541.92 15,871.20 19,052.43
Less: Amounts Transfer To Capital Accounts 0.00 155.17 160.74 317.58 1,453.77
Total Expenses 111,169.77 84,013.27 70,081.56 71,578.19 98,526.29
Profit/Loss Before Exceptional, Items And
11,305.27 7,091.81 5,229.33 4,832.43 7,280.00
Tax
Exceptional Items 1,249.52 414.17 -1,158.26 -1,171.28 224.32
Profit/Loss Before Tax 12,554.79 7,505.98 4,071.07 3,661.15 7,504.32
Tax Expenses-Continued Operations
Current Tax 2,742.04 1,868.10 2,014.89 2,314.16 2,350.46
Deferred Tax -56.29 240.66 -369.08 -338.55 503.53
Total Tax Expenses 2,685.75 2,108.76 1,645.81 1,975.61 2,853.99
Profit/Loss After Tax And Before
9,869.04 5,397.22 2,425.26 1,685.54 4,650.33
ExtraOrdinary Items
Profit/Loss From Continuing Operations 9,869.04 5,397.22 2,425.26 1,685.54 4,650.33
Profit Loss From Discontinuing Operations 0.00 0.00 -2,189.53 -3,033.82 0.00
Net Profit Loss From Discontinuing Operations 0.00 0.00 -2,189.53 -3,033.82 0.00
Profit/Loss For The Period 9,869.04 5,397.22 235.73 -1,348.28 4,650.33
Minority Interest -1,092.98 -675.69 300.10 448.04 -701.39
Share Of Profit/Loss Of Associates 1,505.44 1,855.79 1,276.66 1,027.28 1,366.52
Consolidated Profit/Loss After MI And
10,281.50 6,577.32 1,812.49 127.04 5,315.46
Associates
OTHER ADDITIONAL INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 92.00 59.00 16.00 -1.00 49.00
Diluted EPS (Rs.) 92.00 59.00 16.00 -1.00 49.00
DIVIDEND AND DIVIDEND PERCENTAGE
Equity Share Dividend 1,284.77 979.17 262.16 1,135.09 937.46

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
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 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

Loss account ------------------- in Rs. Cr. -------------------

56
A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

BALANCE SHEETOF MAHINDRA & MAHINDRA

(In Rs. Cr.)

57
A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 PARTICULAR MARCH SCHOOL
NIT GRADUATES 23 MARCH 22 MARCH 21
OF MANAGEMENT, MARCH 20 MARCH
NAGPUR
19
EQUITIES AND LIABILITIES

SHAREHOLDER’S FUNDS

Equity Share Capital 599.05 598.30 597.39 596.52 595.80

TOTAL SHARE CAPITAL 599.05 598.30 597.39 596.52 595.80

Reserves and Surplus 42,497.35 38139.19 33649.65 33,606.36 33,613.43

TOTAL RESERVES AND 42,497.35 38139.19 33649.65 33,606.36 33,613.43

SURPLUS
TOTAL SHAREHOLDERS 43356.73 38960.95 34501.92 34467.84 34209.23
FUNDS
NON CURRENT LIABILITIES

Long Term Borrowings 2,331.56 5,678.02 7,070.03 2,032.03 2,031.78

Deferred Tax Liabilities (Net) 1,470.29 1,700.80 1,343.15 1,408.17 634.13

Other Long Term Liabilities 1,374.15 1,057.54 585.11 698.22 6,04.92

Long Term Provisions 1207.09 912.66 955.42 922.98 882.93

TOTAL NON - CURRENT 6,383.09 9,349.02 9,953.71 5,061.40 4,153.76

LIABILITIES
CURRENT LIABILITIES

Shor Term Borrowings 2,312.17 811.93 24.74 900.00 448.54

Trade Payables 17,145.62 12,893.54 9,988.16 6,785.83 9,678.15

Other Current Liabilities 5,975.37 4,661.21 4,633.79 2,691.43 3,518.71
Short Term Provisions 606.83 453.61 486.48 595.56 688.67

TOTAL CURRENT 26,039.99 18,820.29 15,133.17 10,972.82 14,334.07

LIABILITIES
TOTAL CAPITAL AND 75,780 66,606 61,564 50,502.06 52,697.06
CURRENT LIABILITIES

ASSETS

NON -CURRENT ASSETS

Tangible Assets 13,050.12 12,004.37 7,872.59 7,980.76 7,614.71

Intangible Assets 3,926.08 2,544.25 2,306.76 2,413.83 2467.04

Capital Work in Progress 950.27 1,521.52

58 1,708.88 1,196.68 706.77
A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
FIXED ASSETS 19,760.82 19,566.79
Shubhangi G. Shende 15,011.51 14,404.05 12,501.54
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

59
A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende
 NIT GRADUATES SCHOOL OF MANAGEMENT, NAGPUR

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A STUDY ON WORKING CAPITAL MANAGEMENT OF MAHINDRA AND MAHINDRA
Shubhangi G. Shende