Mahindra Finance Fixed Deposit & Mutual Fund

8/11/2019 Mahindra Finance Fixed Deposit & Mutual Fund

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Our Vision

To be a leading financial services provider in semi-urban and rural India.

It isn't a matter of chance that we are one of India's leading non-banking finance

companies. A clear vision and determined effort has helped us develop a set of

competencies that not only sets us apart, but also helps us propel ahead with

greater force and self-assurance.

Employee Strength

In-depth Knowledge

Business Model

Large Base of Customers

Strong Parentage

Customer Needs

Wide

Network

These values are the compass that guide our actions, both personal and corporate.


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Core Values

Our Core Values are influenced by our past, tempered by our present, and will

shape our future. They are an amalgam of what we are and what we want to be.

Professionalism

Good Corporate Citizenship

Customer First

Quality Focus

Dignity of the Individual


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Rise Philosophy

Core Purpose

We will challenge conventional thinking and innovatively use all our resources to

drive positive change in the lives of our stakeholders and communities across the

world, to enable them to Rise.

Br and Pill ars

Accepting No Limits

Alternative Thinking

Driving Positive Change

Core Val ues

Good Corporate Citizenship | Professionalism

Customer First | Quality Focus | Dignity of the Individual

History

The history of Mahindra Finance has been one of continuous ascent where our

effort to empower our customers has been a constant element. A strong set of

values, an evolved lineage and a group of highly motivated individuals is what we

started with.

What followed was a series of events that helped us grow from strength to

strength. And two decades that witnessed many dreams across the nation see the


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light of day. Come, walk with us through the journey of time and take a glimpse

of how Mahindra Finance grew with all those who believed in it.

Board of Directors

Steering Committee

The board consists of eight noted directors vested with the charge of general

supervision, direction and management of the operations of our company. The

primary responsibilities of the Board of Directors include:

Overseeing high standards of corporate governance and compliance with

various laws

Overseeing our financial management and approving various lines of

business

Shaping our policies and procedures

Monitoring our performance and evolving the growth strategy

Setting up counter-party and other prudential risk management limits

The Board of Directors:

Mr. Bharat N. Doshi

Chairman


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Mr. Uday Y. Phadke

Director

Mr. Ramesh Iyer

Managing Director

Mr. Dhananjay MungaleIndependent Director

Mr. M. G. Bhide

Independent Director


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Mr. Piyush Mankad


Mrs. Rama Bijapurkar


Mr. V. S. ParthasarathyDirector


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The Mahindra Group

The Mahindra Group focuses on enabling people to rise through solutions that

power mobility, drive rural prosperity, enhance urban lifestyles and increase

business efficiency.

A USD 16.7 billion multinational group based in Mumbai, India, Mahindra

employs more than 180,000 people in over 100 countries. Mahindra operates in

the key industries that drive economic growth, enjoying a leadership positionin tractors, utility vehicles, after-market, information technology and vacation

ownership. In addition, Mahindra enjoys a strong presence in the agribusiness,

aerospace, components, consulting services, defence, energy, financial services,

industrial equipment, logistics, real estate, retail, steel, commercial vehicles

and two wheeler industries.

In 2012, Mahindra featured on the Forbes Global 2000 list, a listing of the biggest

and most powerful listed companies in the world. In 2013, the Mahindra Group

received the Financial Times 'Boldness in Business' Award in the 'Emerging

Markets' category.

Mutual Fund Investments in Mahindra Group
http://www.mahindra.com/What-We-Do/Farm-Equipmenthttp://www.mahindra.com/What-We-Do/Automotivehttp://www.mahindra.com/What-We-Do/Aftermarkethttp://www.mahindra.com/What-We-Do/Information-Technologyhttp://www.clubmahindra.com/http://www.clubmahindra.com/http://www.mdsarmouredvehicles.com/http://www.mahindra.com/What-We-Do/Finance-and-Insurance/Companies/Mahindra-and-Mahindra-Financial-Serviceshttp://www.mahindra.com/What-We-Do/Real-Estatehttp://www.mahindra.com/What-We-do/Automotive/Productshttp://www.mahindra.com/What-We-Do/Two-Wheelershttp://www.mahindra.com/What-We-Do/Two-Wheelershttp://www.mahindra.com/What-We-do/Automotive/Productshttp://www.mahindra.com/What-We-Do/Real-Estatehttp://www.mahindra.com/What-We-Do/Finance-and-Insurance/Companies/Mahindra-and-Mahindra-Financial-Serviceshttp://www.mdsarmouredvehicles.com/http://www.clubmahindra.com/http://www.clubmahindra.com/http://www.mahindra.com/What-We-Do/Information-Technologyhttp://www.mahindra.com/What-We-Do/Aftermarkethttp://www.mahindra.com/What-We-Do/Automotivehttp://www.mahindra.com/What-We-Do/Farm-Equipment


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Fixed Deposits

Mutual Funds

Mutual Fund - Product Details

Mutual Fund - Forms

In today's time, we all realise the need to move from just 'saving' to 'investing' our

money in the right areas. It's only then that we help our money to achieve its

potential for growth. And mutual funds are where your money can really flourish

and easily beat the inflation. At Mahindra Finance, we recognise this opportunity

and have designed various schemes to help you invest your money and gain the

most from it.

Fund Distribution (FINSMART)
http://www.mahindrafinance.com/mutual-fund.aspxhttp://www.mahindrafinance.com/mutual-fund-form.aspxhttp://www.mahindrafinance.com/http://www.mahindrafinance.com/http://www.mahindrafinance.com/mutual-fund-form.aspxhttp://www.mahindrafinance.com/mutual-fund.aspx


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Our Mutual Fund Distribution team started its operation in September 2005, and

since then, has spread widely across the Southern, Western and Northern states of

India.

The entire effort here is to provide you with end-to-end solutions to help you

achieve your financial objectives in a hassle-free manner.

When it comes to investing, we understand that everyone has unique needs based

on their own financial objectives and risk profiles. And while many investment

avenues are open to investors, it is usually seen that in the longer run, equities

typically outperform the others. Which is why, we believe that systematic

investment in equity has the potential to help your money reap maximum returns

and in turn, create more wealth for you in a shorter span of time.

However, investing in equity requires thorough understanding of the market and

its myriad complexities. This is where we step in with our expertise. Our advisors

carefully understand your investment objectives and risk appetite. Theyaccordingly help you allocate your money in schemes that are best suited for your

unique needs. This way, you can hang up your boots, lie back and watch your

money do all the hard work.

Risk Documentation

Mutual fund investments are subject to market risk. Please read the offer

document carefully before investing.


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This document has been prepared on the basis of publicly available information,

internally developed data and other sources believed to be reliable. Mahindra &

Mahindra Financial Services Ltd, ('MMFSL') does not warrant its completeness

and accuracy. Whilst we are not soliciting any action based upon this information,

all care has been taken to ensure that the facts are accurate and opinions given fair

and reasonable. This information is not intended as an offer or solicitation for the

purchase or sale of any financial instrument receipt of this information should rely

on their own investigations and take their own professional advice. Neither

MMFSL nor any of its employees shall be liable for any direct, indirect, special,

incidental, consequential, punitive or exemplary damages, including lost profits

arising in any way from the information contained in this material.

MMFSL and its affiliates, officers, directors, and employees, including persons

involved in the preparation or issuance of this material may from time to time,

have long or short positions in, and buy or sell the securities thereof, of company

mentioned herein. MMFSL may at any time solicit or provide, credit, advisory orother services to the issuer of any security referred to herein, Accordingly,

information may be available to MMFSL, which is not reflected in this material,

and MMFSL may have acted upon or used the information prim to, or

immediately following its publication.

Features & Benefits

Equity Mutual Funds: Predominantly investing in equity and equity-related

instruments (Diversified)

Sector Funds: Technically called Thematic Funds, investing in particular

sectors


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Index Funds: Investing in BSE listed stocks, managing the funds passively

Fund of funds: Investing in the best performing mutual funds

Tax Saver Mutual Funds: Section 80 C benefits, where the invested amount

is locked for three years

Debt Mutual Funds: Investing in government-related instruments

Monthly Income Plans: Where the monthly dividend is paid back to the

investor

Liquid Funds: Investing in money market funds with high liquidity

Floating Rate Short term Funds: Invests in debt securities, money market

instruments & floating rate instruments with maturity profile of three

months and upto 2 years

Gilt Funds: Investing in government-related securities

Fixed Maturity Plans: Fixed returns up to the maturity period

Gold Exchange Traded Funds: Predominantly investing in gold commodity

stocks

New Fund Offers: The new funds launched by Fund Houses at a face value

of Rs.10

Eligibility & Documentation

Anybody who would like to invest in mutual funds can invest or start

saving in mutual funds. There is no age, sex or income barrier for

investment

SEBI has made a few changes to the KYC norms after January 1 st, 2012.

These changes will be effective from December 1 st, 2012. So all investors


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who have complied with their KYC norms prior to January 1 st, 2012 need

to complete the additional KYC formalities.

KYC Documents: Duly signed KYC form with supported documents such

as self attested PAN card, ID proof, address proof along with 1 photograph.

A photocopy of the KYC documents is mandatory for all mutual fund

investments.

Fees and Charges

There are no administrative and investment advisory charges incurred by

Mahindra Finance. However, as per SEBI regulations, depending on the Mutual

Funds Schemes, investors have to pay an entry/exit load for each investment.

FAQs

How do I invest in mutual funds and what is the procedure?

You can invest using any of the following investment procedures:

Your respective relationship executive will assist you with all your

investment requirements, at your door step You can walk into any Mahindra Finance branch and meet the respective

relationship executives to assist you with your investments

You have to fill in the application form and hand it over to the relationship

executive along with a copy of your KYC documents and a cheque/DD in favour

of the scheme in which you want to invest.
http://www.mahindrafinance.com/pdf/Individual.pdfhttp://www.mahindrafinance.com/pdf/Individual.pdfhttp://www.mahindrafinance.com/pdf/Individual.pdfhttp://www.mahindrafinance.com/http://www.mahindrafinance.com/http://www.mahindrafinance.com/pdf/Individual.pdf


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Invest in Fixed Depositsof Mahindra Group

Fixed Deposits

Fixed Deposit - Product Details

Fixed Deposit - Forms

Fixed Deposit - Contact Us

Fixed Deposit - Interest Rates

Mutual Funds

FI XED DEPOSI T

Earn more on your savings. Apply for a Fixed Deposit now!
http://www.mahindrafinance.com/fixed-deposit.aspxhttp://www.mahindrafinance.com/fixed-deposit-form.aspxhttp://www.mahindrafinance.com/fixed-deposit-contact.aspxhttp://www.mahindrafinance.com/fixed-deposit-interest-rates.aspxhttp://www.mahindrafinance.com/fixed-deposit-form.aspxhttp://www.mahindrafinance.com/fixed-deposit-form.aspxhttp://www.mahindrafinance.com/fixed-deposit-form.aspxhttp://www.mahindrafinance.com/fixed-deposit-form.aspxhttp://www.mahindrafinance.com/fixed-deposit-form.aspxhttp://www.mahindrafinance.com/fixed-deposit-form.aspxhttp://www.mahindrafinance.com/fixed-deposit-interest-rates.aspxhttp://www.mahindrafinance.com/fixed-deposit-contact.aspxhttp://www.mahindrafinance.com/fixed-deposit-form.aspxhttp://www.mahindrafinance.com/fixed-deposit.aspx


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In these uncertain times, get the most of your hard-earned money without the risk

of losing it. Invest your money in our Fixed Deposit schemes that offer you highly

competitive interest rates and help it grow consistently over a period of time.

Features & Benefits

The MMFSL Fixed Deposit has a Crisil rating of 'FAAA', which indicates a

high level of safety

Cumulative as well as non-cumulative options available

0.25% additional rate for senior citizens & Employees Relatives.

0.35% additional interest for all Mahindra group company employees and

Employees Relatives

For Resident Individuals

ID & Address proof

Passport

PAN Card


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Voters Identity Card

Driving License

Bank Pass book with photo

Aadhaar Card

Any other Govt/Regulator approved ID proof

Cancel cheque leaf for Bank account verification.

Incase the address mentioned above document differs from the current address, a

copy of anyone of the following documents to be furnished as proof of residential

address.

Telephone bill

Bank account statement

Letter from any recognised public authority

Electricity bill

Ration card

Letter from employer

For Companies

PAN Card

Adress Proof (Bank statement, Telephone Bill)

Certificate of incorporation

Memorandum of Article & association & Latest Board resolution with

specimen signatures.

Authorized Signatory list

Photograph of the signatories


ID & Address Proof of Authorized signatories


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For Non-Resident Indians (NRI)

Passport with valid visa

Overseas employment letter (optional for confirmation of residential status

and overseas address)

A PIO card to establish Indian Origin, if it is a foreign passport.

Pan card

A local address proof if different from the passport address

a) Bank account statement or passbook

b) Local Property papers with registration deedc) EB Bill card

d) Voter Id or Driving License

Tax Residency Certificate from the Income Tax department of the country

the investor is a resident

Copy of the passport as of the beginning of the current financial year and

end of financial year

For Partnership Firms

PAN Card

Address Proof (Bank statement, Telephone Bill)

Partnership Deed

Resolution copy ID &Address Proof of all Authorized Signatories

Photograph of the signatories


For Trusts and Foundations

Names of trustees, settlers, beneficiaries and signatories


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Names and addresses of the founder, the managers/directors and the

beneficiaries

Telephone/fax numbers

Please note that we accept deposits from registered trust only and our investment

has not qualified under Sec 11(5) of IT.

For Investment of Rs 1 crore and above, declaration about the source of income

required.

Charitable Trust

Copy of the Registration Certificate AND/OR 12(A) Certificate issued by

Income Tax Dept.

Acknowledgment of registration application if applied for.

Pan Card copy

Address proof

List of signatories

Board Resolution/Consent letter from Trustees

Individual KYC of all Trustees

Photographs .ID & Address proof of Signatories


Trust Deed

Please note Mahindra & Mahindra Financial Services is not registered U/S 11(5)

of income tax act, hence Charitable Trust may invest in Mahindra Finance FD at

THEIR OWN RISK.

HUF

The below documents should be considered for ID proof:


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HUF Pan card

HUF/Kartha Adress Proof & identity proof of Kartha

Photograph


Family Trust


Copy of the Registration Certificate


Pan Card copy

Address proof

List of signatories

Board Resolution/Consent letter from Trustees

Individual KYC of all Trustees Photographs .ID & Address proof of Signatories


Trust Deed

If the trust is not registered OR not willing to be registered in future, a letter duly

signed by Authorized Signatories stating the Trust is not registered & not willing

to be registered in future is required.

Sole Propritorship


ID & Address proof of the proprietor PAN card of proprietor


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Address Proof

Photograph

If the sole proprietorship is in different name, the bank statement, OR

registration certificate OR

telephone bill


CLUB, ASSOCIATION, SOCIETY


Copy of the Registration Certificate ,if registered


Pan Card copy

Address proof

List of signatories MOA & Resolution

Individual KYC of all signatories

Photographs .ID & Address proof of Signatories


Fixed Deposit

In these times of uncertain returns, fixed deposits have become the most preferred

banking instruments for planning a financially worry-free future for the family.

Which is why Mahindra Finance's Fixed Deposit scheme has been specially

designed to assure you of guaranteed returns at highly competitive interest rates

with this low-risk investment. We offer up to *12.21% p.a. for cumulative deposit


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on 5 years for senior citizens. Below is the detailed structure of our Rate of

Interest.

Fixed Deposit Interest Rates

Non-Cumulative Scheme

Period (Months) Interest p.a.*#/(Half Yearly) Interest p.a.*#/(Quarterly)

12 9.00% 8.90%

24 9.75% 9.65%

36 10.00% 9.90%

48, 60 9.50% 9.40%

Minimum Amount Rs. 25,000+ Rs. 50,000+

Cumulative Scheme

Minimum Amount: Rs. 10,000+

Period (Months) Interest */p.a. Effective Yield p.a.**

12 9.25% 9.25%

18 9.75% 10.07%

24 10.00% 10.50%

36 10.25% 11.34%


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48 9.75% 11.27%

60 9.75% 11.85%

Note:

+ Additional amount will be accepted in multiples of Rs. 1,000/-

# Interest payment Half Yearly on 30th September and 31st March only

through NECS/NEFT

Interest Payment Quarterly on 30th June, 30th September, 31st December

and 31st March only through NECS/NEFT

** Compounded annually

* Senior Citizens will get an additional rate of 0.25% per

annum/Employees will get an additional rate of 0.35% per annum (all M &

M Group Company Employees)


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Improvement and Performance in Mahindra Capital

& Financial Services through Rural and Semi Urban

areas

Mahindra & Mahindra Financial Services Ltd (Mahindra Finance) is one of

Indias leading non -banking finance companies focused on providing finance for

utility vehicles, tractors and cars in the rural and urban and semi-urban sectors.

Mahindra Finance is a subsidiary of Mahindra & Mahindra, a leading tractor and

utility vehicle manufacturer. The company has positioned itself between the

organized banking sector and local moneylenders, offering customers

competitive, flexible and speedy lending services and has customized packages

for customers every need.

Mahindra Finance has a network of 436 branches covering more than 80% of the

districts in India. It has entered into more than 600,000 customer contracts and

has disbursements of around Rs. 21000 crore since inception. Almost all the top

mutual funds in the country have reposed their trust in the company and have

invested in it. Mahindra Finance listed on National Stock Exchange of India

Limited and Bombay Stock Exchange Ltd. on March 17, 2014 . CRISIL has

assigned a AA+/ stable rating to the Companys long term debt reflecting a high

degree of safety. This itself shows the level of commitment to the service of this

company.


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MMFSL is the largest amongst NBFCs covering rural and semi-urban areas. This

network has enabled it to develop and maintain the customer relationships. It is

believed that its branch network enables MMFSL to service and support the

existing customers from proximate locations, which gives customers easy access

to our services, and also enables us to reach new customers. The broad geographic

spread of the network also provides some protection against crop failures or

natural calamities, which can from time to time affect parts of India.

Over the years Mahindra & Mahindra Financial Services Ltd (Mahindra Finance)

has increased estimated value of assets. Total assets under management is Rs.

8543 Crores. Its financed amount has increased from Rs . 3152crs to Rs.3966crs

year-on-year basis. MMFSL recorded total revenues of INR 5,784 million and

profit after tax of INR 752 million for the Nine Months ended December 31, 2014

and had Total assets of INR 59,524 million as of December 31, 2014 . As said

above MMFSL has an extensive distribution network with presence in 25 states

and 2 union territories in India through 400 branches. Its market has been

categorised into five zones and 16 regions with branches reporting into their

respective regional office Branches provided authority to approve loans within

prescribed guidelines.

Graph-1:

Total Branches of Mahindra & Mahindra Financial Services Ltd in the

Country


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Auto Industry and Non Banking Finance Companies

This kind of business has become both cause and effect of auto industry, as it has

propelled the growth of sale of vehicles many fold and also enjoyed the benefit of

diversification of vehicle industry especially due to the process of Liberlisation,

Privatisation and Globalisation (LPG).

Over a million passenger cars and utility vehicles are sold in India. The

total demand for cars and utility vehicles is expected to grow at a CAGR more

than 20 % for the period 2013 -12. This is to be taken into notice that the ready

availability of finance has enabled the growth in auto sales. Mahindra and

Mahindra Finance Services Limited is the integral part of this stratagem and

system.

The key drivers for growth in demand for automobiles are:

0

50

100

150

200

250

300

350

400

450

Series1


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Growing incomes have resulted in the increased affordability of

vehicles.

Broader distribution network (both of manufacturers and financiers)

has enabled a larger population to be targeted resulting in greater

demand for vehicles.

Constant fall in equated monthly installments has resulted in the

increased demand for automobiles. This has given rise only after

emergence of competitive market.

Drop in holding period from 10 -12 years to 4 - 5 years also further

increased demand for new vehicles.

Widely spread network of Non-Banking Financial Institutions as

institutionalized system of financing at very competitive rate with

fair policies and open strategy.

More importantly, these kinds of institutions try to cater the demand of customers

and auto companies both, and serve as significant chain between the two. It is

simply recognized as trusted way of business at low risk but high ease. Thisorganized sector of financing accounts for 71% of the entire auto finance market

with the balance being serviced by the local money lenders. The total organized

auto finance market was expected to grow at a CAGR of 20.57% over the period

2014 -2010.

Table-1:


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Market Trend of Auto Industry Growth and Finance

Availability

(Rs.

billion)

2001-02 2004-05 2012 -06 2013 -10 2002-

2014

(CAGR

%)

2014 -2010

(CAGR%)

New Car

Finance

108 206 216 379 18.98 15.07

New UV

Finance

36 67 7 149 20.73 18.10

Total

New

Auto

Finance

Market

144 273 283 628 19.42 1.88

Used

Vehicle

Finance

N.A. 57 81 262 34.09

Total

Auto

Finance

330 374 781 20.67


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Market

If one compares the performance of Mahindra finance with that of other

institutions or companies, one finds very remarkable figure that gives the

testimony of market trust with customers and its performance in this particular

business. The following table depicts the position of M&M vis--vis other similar

companies and its robust performance in the market.

Table-2:

M&Ms Performance and Finance Market for Auto Industry in India

1H F-0 1H F-07 % Growth

Total Industry

(Auto)

845,300 1,034,100 22%

M&M 64,160 74,054 15%

Total Industry

(FES)

113,000 154,000 37%

M&M 36,000 47,000 30%

History of Mahindra & Mahindra Financial Services Limited

Mahindra & Mahindra Financial Services Limited initially began its service on

January 1, 1991 as Maxi Motors Financial Services Limited and received

certificate of commencement of business on February 19, 1991. Its name was


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changed to Mahindra & Mahindra Financial Services Limited (MMFSL) on

November 3, 1992. It is registered with the RBI as an NBFC with effect from

September 4, 1998 under Section 45IA of the Reserve Bank of India Act 1934. It

has now travelled a long journey in the area of financial services and also gained

the reputation of being one of the finest service providers in the country. First of

all in 1993, Mahindra & Mahindra Financial Services Limited (MMFSL)

commenced its service of financing for Mahindra & Mahindra Utility Vehicles

(MMUVs). It opened its first branch outside Mumbai at Jaipur in 1995. A

detailed history of Mahindra Finance can be displayed in a chronological manner

in the following box:

Feature Box-1

In 1993,

commenced financing of M&M UVs

In 1995,

opened our first branch outside Mumbai, at Jaipur

In 1996 ,

commenced financing M&M dealers for purchase of

tractors

In 1998 ,

launched pilot project for retail tractor financing

In 1999,


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commenced tractor retail financing in rural and semi-

urban areas

In 2001 ,

Total Assets crossed Rs. 10 billion

In 2002,

Commenced financing of non-M&M vehicles

Received Tier II debt from International Finance

Corporation

Made first securitisation transaction of Rs. 434.8 million

In 2004 ,

Received a long-term credit rating of AA+/Stable

Opened a branch in Port Blair

Listing of non convertible debentures on BSE on the

wholesale debt market segment

In 2012 ,

Tied up with HPCL

Made MIBL our wholly owned subsidiary

In 2014 ,

Issued IPO

Tied up with Maruti

Launched M&M marketing campaign


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Reached a new benchmark with 400 branches

Vision and Mission of Mahindra and Mahindra Finance Service Ltd

(MMFSL)

Vision:

Mahindra Finance envisions to be the leading Rural Finance Company and

continues to retain the leadership position for Mahindra Products.

Mission:

Mahindra Finance or MMFSL has mission to be recognised as the premier

provider of financial services on the basis of its contribution to sale of

Mahindra range of vehicles, tractors, services and help M&M protect its

sale through availability of finance.

MMFSL will specialise in financing products based on applications and

build on the competence developed in its focus area. It will target all

segments of vehicle financing and deploy the skills acquired through an in-

depth understanding of the chosen product market.


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MMFSL will provide products and services tailored to the needs of M&M,

its most favoured customer, and always meet their needs. In case of

demand-supply mismatch of funds, it will do everything to find a solution.

MMFSL will help M&M develop better products by providing first-hand

information received from the target market.

Strength of MMFSL

In order to achieve the target of company in its financial business, keeping in

view the reality of market requirements, customers needs and their capacity to

expend in auto market, MMFSL has developed a stout strength. These are given

as:

In-depth knowledge of the rural and semi-urban market

Its relationship with Mahindra & Mahindra

Its branch network

Its association with dealers

Its client base

Its loan approval and administration procedures

Its ability to borrow at competitive rates

Experienced Board and executive management team

MMFSLs Relationship with Mahindra & Mahindra

MMFSL was originally set up to provide finance to M&M dealers for the

purchase of M&M vehicles and tractors and M&M. M&M provided MMFSL
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(and continues to provide) with capital and a ready market. MMFSL believe that

it has been benefited substantially from the M&M brand as well as their credit

rating. MMFSL continues to be closely associated with its majority shareholder,

M&M. It has also been able to draw on a range of resources from M&M such as

company secretarial, legal and taxation advice as well as management support.

MMFSL and Dealers

MMFSL provides finance to customers of approximately 1,000 M&M and other

dealers. Its relationship with these dealers is a critical resource in sourcing

customers and in its efforts to provide customers with financial products and

services suited for the rural and semi-urban markets.

Client Base

The numerous strong relationships that MMFSL have developed with its large

client base provide it with opportunities to offer them customised products and

services to meet their needs.

MMFSLs Loan Approval and Administration Procedure

MMFSL experiences in the rural finance market have enabled it to price its

products appropriately and its relationship with dealers and customers has enabled


34/89

it to develop prudent credit appraisal procedures. MMFSL reviews process and

the regular visits by field executives enable it to monitor and evaluate its

customers ability to repay on a regular basis. MMFSL collection and

enforcement procedures are designed to maximise recoveries following any

payment default.

MMFSLs Ability of Borrowing

CRISIL has assigned AA+/stable rating to MMFSL long-term debt and P1+ rating

to its short-term debt. MMFSL has been able to constantly reduce its Average

Cost of Borrowings. It believes that it has achieved reduction in cost of funds as a

consequence of its rating and effective treasury management and innovative fund

raising programs (for example our securitization program) aided by a declining

interest rate environment. Although the interest rates payable by it have recently

increased, in line with increases in rates in India. Generally, MMFSL believes that

it is able to borrow form a range of sources at competitive rates.

Business of MMFSL

MMFSL has devised following business strategy, which are vigorously followed

with full esteem and enthusiasm:

The loan products designed by MMFSL, both in

terms of amount and tenure, are based on usage and the economic

life of the vehicle Commercially, UVs are used both for passenger


35/89

as well as goods transport. Tractors are used for both farm and

haulage applications.

Its innovative and flexible repayment schedule is

designed on a case to case basis and suits the need of every

borrower, with convenient and comfortable repayment schedules

and methods. MMFSL offers quarterly, monthly, half-yearly

repayment schedules and one can repay via post-dated cheques,

demand drafts and cash.

MMFSL customers for retail loans are small

entrepreneurs or self-employed individuals such as transport

operators, taxi operators and agriculturists. It also provides trade

finance to automobile and tractor dealers, which following the

sale of a vehicle, are converted into direct retail customer loans.

Its customers usually provide part of the amount and the balance

of the vehicles price is financed by it.

MMFSL believes that to operate effectively in

rural and semi-urban areas, it is necessary to be familiar with the

local culture, practices and environment. Accordingly, it

endeavours to recruit local employees into its branches and

provide them training on tailor-made training programmes. It

conducts most of its business through its own field executives and


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branch personnel, which it believes is preferable to relying on

outsourced marketing agents and sales agents.

MMFSLs business has grown extensively since

the time it was established. Its loan assets, total income and profit

after tax have all grown considerably over the last few years.

Management of MMFSL

Management: At Mahindra Finance currently have 10 Directors vested

with the charge of the general supervision, direction and management of

the operations and business of the Company.

The primary responsibility of the Board of Directors

includes:

Overseeing high standards of corporate governance and

compliance with various laws.

Shaping policies and procedures.

Monitoring MMFSLs performance and evolving the

growth strategy.

Setting up counter-party and other prudential risk

management limits.

Overseeing its financial management and approving

various lines of business.

Feature Box-2:

Name of Board of Directors


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MR. BHARAT N. DOSHI

MR. UDAY Y. PHADKE

MR. ANJANIKUMAR

CHOUDHARI

MR. DHANANJAY MUNGALE

MR. MANOHAR G. BHIDE

MR. M.B.N. RAO

DR. PAWAN GOENKA

MR. PIYUSH MANKAD

MR. RAMESH G. IYER

Ms. RAMA BIJAPURKAR

Day-to-day management is carried out by a

Management Committee comprising:

Mr. Ramesh Iyer - Managing

Director

Mr. V.Ravi - Chief Financial Officer

Mr. Apurv Verma - Vice President

(Operations)

Code of Conduct for Directors
http://www.mahindrafinance.com/about/bharat_doshi.asphttp://www.mahindrafinance.com/about/bharat_doshi.asphttp://www.mahindrafinance.com/about/uday_phadke.asphttp://www.mahindrafinance.com/about/uday_phadke.asphttp://www.mahindrafinance.com/about/anjanikumar_choudhari.asphttp://www.mahindrafinance.com/about/anjanikumar_choudhari.asphttp://www.mahindrafinance.com/about/anjanikumar_choudhari.asphttp://www.mahindrafinance.com/about/anjanikumar_choudhari.asphttp://www.mahindrafinance.com/about/anjanikumar_choudhari.asphttp://www.mahindrafinance.com/about/dhananjay_mungale.asphttp://www.mahindrafinance.com/about/dhananjay_mungale.asphttp://www.mahindrafinance.com/about/manohar_bhide.asphttp://www.mahindrafinance.com/about/manohar_bhide.asphttp://www.mahindrafinance.com/about/mbn_rao.asphttp://www.mahindrafinance.com/about/mbn_rao.asphttp://www.mahindrafinance.com/about/dr_pawan_goenka.asphttp://www.mahindrafinance.com/about/dr_pawan_goenka.asphttp://www.mahindrafinance.com/about/piyush_mankad.asphttp://www.mahindrafinance.com/about/piyush_mankad.asphttp://www.mahindrafinance.com/about/ramesh_iyer.asphttp://www.mahindrafinance.com/about/ramesh_iyer.asphttp://www.mahindrafinance.com/about/rama_bijapurkar.asphttp://www.mahindrafinance.com/about/rama_bijapurkar.asphttp://www.mahindrafinance.com/about/ramesh_iyer.asphttp://www.mahindrafinance.com/about/piyush_mankad.asphttp://www.mahindrafinance.com/about/dr_pawan_goenka.asphttp://www.mahindrafinance.com/about/mbn_rao.asphttp://www.mahindrafinance.com/about/manohar_bhide.asphttp://www.mahindrafinance.com/about/dhananjay_mungale.asphttp://www.mahindrafinance.com/about/anjanikumar_choudhari.asphttp://www.mahindrafinance.com/about/anjanikumar_choudhari.asphttp://www.mahindrafinance.com/about/uday_phadke.asphttp://www.mahindrafinance.com/about/bharat_doshi.asp


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Mahindra & Mahindra Financial Services Limited is committed to conducting its

business in accordance with applicable laws, rules and regulations and the highest

standards of business ethics and ethical conduct.

This Code of Conduct (Code) reflects the business practice and principles of

behaviour that support this commitment. The Board of Directors (the Board) is

responsible for setting the standards of conduct contained in the Code and for

updating these standards as appropriate to reflect legal and regulatory

developments. The Code is intended to provide guidance and help in recognizing

and dealing with ethical issues and to help foster a culture of honesty and

accountability. Every Director is expected to read and understand this Code and

its application to the performance of his or her duties, functions and

responsibilities.

Every Director must

represent the interests of the shareholders of the Company;

exhibit high standards of integrity, commitment and

independence of thought and judgement;

dedicate adequate time, energy and attention to ensure the

diligent performance of his/her

duties including making all reasonable efforts to attend Board

or Committee Meetings; and

comply with every provision of this Code.


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Compliance Officer

The Company has designated Mr. Ramesh Iyer, Managing Director to administer

this Code.

Directors, at their discretion, may make any report or complaint provided for in

this Code to the Chairman of the Board of the Company or to the Compliance

Officer. The Compliance Officer will refer complaints submitted to the Chairman

of the Board.

Compliance with Applicable Laws

In the discharge of their duties and responsibilities, Directors must comply with

all applicable laws, rules and regulations. These would include securities laws,

insider trading laws and the Companys insider trading compliance policies.

Conflict of Interest

Directors must avoid conflicts of interest. Directors should also be mindful of, and

seek to avoid, conduct which could reasonably be construed as creating an

appearance of a conflict of interest.

While Directors should be free to make personal investments and enjoy social

relations and normal business courtesies, they must not have any interests that

adversely influence the performance of their duties, functions and responsibilities

as Directors of the Company. A conflict of interest can arise when a Director or a

Member of his/her immediate family receives improper personal benefits as a


40/89

result of his/her position as a Director of the Company. A conflict situation can

also arise when a Director takes an action or has an interest that may make it

difficult for him or her to perform his or her duties, functions and responsibilities

objectively and effectively.

While the Code does not attempt, and indeed it would not be possible, to describe

all conceivable conflicts of interest that could develop, the following are some

examples of situations which may constitute conflicts of interest:

Working, in any capacity, for a competitor, customer, supplier

or other third party while employed by the Company.

Competing with the Company for the purchase or sale of

property, products, services or other interests.

Directing business to a supplier owned or managed by, or

which employs, a relative or friend.

Receiving loans or guarantees of obligations as a result of

ones position as a Director.

Accepting bribes, kickbacks or any other improper payments

for services relating to the conduct of the business of the

Company.

Accepting, or having a Member of a Directors family accept,

a gift from persons or entities that deal with the Company,

where the gift is being made in order to influence the

Directors actions as a Member of the Boar d, or where


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acceptance of a gift could otherwise reasonably create the

appearance of a conflict of interest.

Conflicts of interest may not always be clear-cut. Any question

therefore about a Directors actual or potential conflict of

interest with the Company should be brought promptly to the

attention of the Chairman of the Board, who will review the

question and determine a proper course of action, including

whether consideration or action by the full Board is necessary.

Directors involved in any conflict or potential conflict

situations shall recuse themselves from any discussion or

decision relating thereto.

Corporate Opportunity

Directors shall not

a. compete with the Company; or

b. take for themselves personally any business opportunities that

belong to the Company or are

c. discovered through the use of corporate property, information or

position; or

d. use corporate property, information or position for personal

gain.

Confidentiality


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All Directors must maintain the confidentiality of confidential information

entrusted to them or disclosed or acquired by them in carrying out their duties and

responsibilities, except where such disclosure is authorised by the Company or is

required by laws, regulations or legal proceedings.

The term confidential information includes, but is not limited to, non-public

information that might be of use to competitors of the Company or harmful to the

Company or its customers, if disclosed. Whenever feasible, Directors should

consult the Chairman of the Board or the Compliance Officer if they believe they

have a legal obligation to disclose confidential information.

Fair Dealing

Directors should endeavour to deal fairly with the Companys customers,

suppliers, competitors, officers and employees. No Director shall take unfair

adv antage of the Companys customers, suppliers, competitors or employees

through manipulation, concealment, abuse of privileged information,

misrepresentation of material facts or any other unfair dealing practice. Gifts or

entertainment in any form that is likely to result in a feeling of expectation of

personal obligation should not be extended or accepted.

Protection and Proper Use of Company Assets


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Directors should perform their duties in a manner that protects the Companys

assets and ensures their efficient use. The Companys assets should be used for

legitimate business purposes.

Directors are encouraged to promptly contact the Chairman of the Board or the

Compliance

Officer if the Director believes that he or she has observed illegal or unethical

behaviour by any employee, officer or director, or by any one purporting to be

acting on the Companys behalf or any violation or possible violation of this Code

and the reporting Director has any doubt as to the best course of action in a

particular situation. Confidentiality will be maintained, to the extent permitted by

law.

Public Company Reporting

As a public company, it is of critical importance that the Companys filings with

the Securities and Exchange Board of India, the Reserve Bank of India and/or the

concerned Stock Exchange(s) on which the securities of the Company are or may

be listed be full, fair, accurate, timely and understandable. The Directors shall

provide information necessary to ensure that the Companys published reports

meet these requirements. The Company expects Directors to provide prompt and

accurate answers to enquiries relating to its public disclosure requirements.

This Code may be amended, modified or waived only by the Companys Board of

Directors and must be publicly disclosed if required by any applicable law or

regulation. As a general policy, the Board will not grant waivers to the Code.


44/89

Group Structure of MMFSL

MMFSL is a company with a strong foundation and a shining legacy, growing

every day to create a legacy of its own. Its leading promoter Mahindra &

Mahindra holds the majority of its Equity Shares and is also a leading tractor and

UV manufacturer with over 60 years experience in the Indian market. As a

supplement to its business, in May 2004, we started an insurance broking business

through our wholly owned subsidiary, Mahindra Insurance Brokers Limited.

Mahindra Finance has pride on having pioneered rural finance in India. It has

grown with each passing year, met targets, exceeded expectations and in the

process created wealth for its shareholders. Here MMFSL has a dedicated section

of up-to-date information, from financials to our events and presentations easy

access to information, at the click of a button. Much like most of it quick and

simple processes at Mahindra Finance.

Investors Zone

Mahindra Finance have a wide range of products and services, with something to

suit everyones needs. Right from finance for two wheelers , tractors , farm

equipment , cars and utility vehicles to commercial vehicles and construction

equipment . It also has a group of experts providing investment

advice, surveying available market products and choosing the most suitable to its

customers needs.
http://www.mahindra.com/http://www.mahindra.com/http://www.mahindrainsurance.com/http://www.mahindrainsurance.com/http://www.mahindrafinance.com/investor_zone/summary_results.asphttp://www.mahindrafinance.com/investor_zone/presentations.asphttp://www.mahindrafinance.com/prod_twowheel/two_wheeler.asphttp://www.mahindrafinance.com/prod_twowheel/two_wheeler.asphttp://www.mahindrafinance.com/prod_twowheel/two_wheeler.asphttp://www.mahindrafinance.com/prod_tractor/prod_tractor.asphttp://www.mahindrafinance.com/prod_tractor/prod_tractor.asphttp://www.mahindrafinance.com/prod_tractor/prod_tractor.asphttp://www.mahindrafinance.com/prod_tractor/prod_tractor.asphttp://www.mahindrafinance.com/prod_tractor/prod_tractor.asphttp://www.mahindrafinance.com/prod_tractor/prod_tractor.asphttp://www.mahindrafinance.com/car_loan/car_loan.asphttp://www.mahindrafinance.com/car_loan/car_loan.asphttp://www.mahindrafinance.com/car_loan/car_loan.asphttp://www.mahindrafinance.com/prod_utility/prod_utility.asphttp://www.mahindrafinance.com/prod_utility/prod_utility.asphttp://www.mahindrafinance.com/prod_utility/prod_utility.asphttp://www.mahindrafinance.com/prod_commercial/prod_commercial.asphttp://www.mahindrafinance.com/prod_commercial/prod_commercial.asphttp://www.mahindrafinance.com/prod_commercial/prod_commercial.asphttp://www.mahindrafinance.com/prod_commercial/prod_commercial.asphttp://www.mahindrafinance.com/prod_commercial/prod_commercial.asphttp://www.mahindrafinance.com/prod_commercial/prod_commercial.asphttp://www.mahindrafinance.com/prod_commercial/prod_commercial.asphttp://www.mahindrafinance.com/prod_investment/prod_investment.asphttp://www.mahindrafinance.com/prod_investment/prod_investment.asphttp://www.mahindrafinance.com/prod_investment/prod_investment.asphttp://www.mahindrafinance.com/prod_investment/prod_investment.asphttp://www.mahindrafinance.com/prod_investment/prod_investment.asphttp://www.mahindrafinance.com/prod_investment/prod_investment.asphttp://www.mahindrafinance.com/prod_commercial/prod_commercial.asphttp://www.mahindrafinance.com/prod_commercial/prod_commercial.asphttp://www.mahindrafinance.com/prod_commercial/prod_commercial.asphttp://www.mahindrafinance.com/prod_utility/prod_utility.asphttp://www.mahindrafinance.com/car_loan/car_loan.asphttp://www.mahindrafinance.com/prod_tractor/prod_tractor.asphttp://www.mahindrafinance.com/prod_tractor/prod_tractor.asphttp://www.mahindrafinance.com/prod_tractor/prod_tractor.asphttp://www.mahindrafinance.com/prod_twowheel/two_wheeler.asphttp://www.mahindrafinance.com/investor_zone/presentations.asphttp://www.mahindrafinance.com/investor_zone/summary_results.asphttp://www.mahindrainsurance.com/http://www.mahindra.com/http://www.mahindra.com/


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Funding of MMFSL

MMFSL has consistently enjoyed a good credit rating enabling it to borrow funds

at competitive rates. Rating linked to credit rating of M&M, decline in rating in

FY03 due to rating downgrade of M&M. Total Consortium Size of Rs. 7,500

Million. MMFSL has also securitised part of its loan portfolio to raise funds. The

first securitisation transaction was done in FY02 and since has done 22

securitisation / Assignment transactions till date aggregating Rs. 18 bn.

Key Investment Themes of MMFSL

Immense potential in the rural and semi urban markets

Strong Capital Base

M&M Parentage

Extensive Branch Network / Dealer Relationships

Consistent financial performance

Client Base

Prudent loan approval and administration procedures

Ability to borrow at competitive rates

Early entry and knowledge of the rural and semi urban market

Experienced Board and executive management team

Sources of Borrowings

Since there are many sources of borrowing, these can, however, be shown as:


46/89

Graph-2

Graph-3

Mutual Funds

Insurance Co.

Others

Banks

Series1

0%

10%

20%

30%

Series1


47/89

Assets Securitization

MMFSL securitises parts of its loan portfolio to improve its cash flows and

reduce borrowings.

The company did its first securitisation / Assignment transaction in FY02 and has

done 22 securitisation transactions till date aggregating Rs. 18 bn. All

securitisation programs (except bilateral deals) have been rated AAA (so) by

Crisil Credit enhancements in form of cash collateral, Subordinate Class B

PTCsetc. As a prudent measure, MMFSL makes enhanced loan and expense

provision on securitisation upfront even though it is not required as per

accounting guidance.

Assets Securitization

MMFSL securitises parts of its loan portfolio to improve its cash flows and

reduce borrowings.

The company did its first securitisation / Assignment transaction in FY02 and has

done 22 securitisation transactions till date aggregating Rs. 18 bn. All

securitisation programs (except bilateral deals) have been rated AAA (so) by

Crisil Credit enhancements in form of cash collateral, Subordinate Class B PTCs

etc. As a prudent measure, MMFSL makes enhanced loan and expense provision

on securitisation upfront even though it is not required as per accounting

guidance. This can be drawn as:


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Feature Box-4

FY11 FY12 FY13 Dec12 Dec13

Receivable Securitised 3190 5428 553 2396 2807

Discount Rate%

5.48-6.15

5.10-.67

5.20-6.48

5.40-6.50

6.25-7.50

ConsiderationReceived (Rs. Mn.) 2,978 4,243 5,147 2,233 2,667

Nate Income fromSecuritisation) 146 193 489 252 248


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Graph-4

0

1000

2000

3000

4000

5000

6000

FY04 FYO5 FY06 5-Dec ec0

Receivable Securitised

Discount Rate %

Consideration Received (Rs. Mn.)

Nte Income from Securitisation)


50/89

Profit and Loss Statement of MMFSL

Table-2

Rs. in Mn. December 2012 Dec 2013 March 2014

Income from

Operation

3913 5669 5823

Other Income 70 115 141

Total Income 3983 5784 5964

Interest Cost 1518 2283 2194

Administrative

Cost

1502 2315 2096

Depreciation 36 45 52

Total

Expenditure

3056 4643 4342

PBT 927 1141 1622

PAT 611 752 1083


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Profit & Loss Statement

(excluding securitization prov. Write back)

Table-3


Income from

Operation

3785 5613 5695




Administrative

Cost

1502 2315 2096


Total

Expenditure

3056 4643 4342

PBT 799 1085 1494

PAT 482 696 998


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Balance Sheet: Liabilities

Table-4


Net Worth 4011 7541 6819

Equity Share

Capital

705 833 833

Reserve and

Surplus

3306 6708 5986

Employee Stock

Option

2 22 8

Preference Share

Capital

500 ---- 500

Secured Loans 28834 41435 34837

Unsecured Loans 7183 5228 3993

Current

Liabilities and

Provs.

3586 5298 4044


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Consolidated Profit and Loss

Table-5


Income from

Operation

3946 5732 5861




Administrative

Cost

1502 2315 2096


Total

Expenditure

3051 4641 4334

PBT 963 1184 1646

PAT 634 776 1091


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Summary Results

Table-6



Profit before Tax 927 1141 1622

Profit after Tax 611 752 1083

Dividend -- -- 35

Equity Share

Capital

705 833 833

Reserves &

Surplus

3306 6708 5987

Net Worth 4011 7541 6819

EPS (Basic) 8.42 8.91 14.59

Market

Capitalistaion

-- 24110 20830

No. of Branches 295 400 305

New Contracts

during the Period

(No.)

92477 127289 131,158

No. of Employees 2322 2575 2296


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Ratio Analysis

Table-7

December 2012 Dec 2013 March 2014

PBT/Total

Income

23.3% 19.7% 27.2%

PBT/Total Asset 2.6% 2.4% 3.3%

RONW (Avg. Net

Worth)

19.0% 13.2% 20.1%

Overheads/Total

Assets

2.7% 3% 2.7%

Debt/Equity 8.81:1 6.08:1 5.65:1

Book Value

Multiple

- 3.1% 3%

Capital Adequacy 14.3% 15.2% 18.2%

Tier-I 8.4% 11.8% 13.2%

Tier II 5.9% 3.4% 5%

Book Value 57.4 90.5% 81.9%


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Key Risks & Management Strategy

Volatility in interest rates Matching of

Asset Liabilities

Rising competition Increasing

Branch Network

Funds at competitive rates Maintaining Credit Rating &

Asset Quality

Dependence on M&M Increasing Non-

M&M Portfolio

Vagaries of nature Increasing

Geographical Spread

Controlling write-offs Improving the

Portfolio Mix

Employee retention Job Rotation / ESOP /

Group Opportunity

Handling cash Insurance & Effective

Internal Control


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Treasury & Risk Management of MMFSL

Table-8

Treasury Management Risk Management

The treasury departmentundertakes liquidity management

by maintaining optimum level ofliquidity and complying withRBI requirement of asset liabilitymanagement.

The surplus funds are invested inaccordance with the investment

policy of the board

Surplus funds are invested in

Government securities, liquiddebt based mutual funds and

bank fixed deposits

As of Dec 31, 2014 , Rs500.00million was invested in mutualfunds and Rs13.4 million wasinvested in Governmentsecurities

The Risk management team is aeight member team whichidentifies, assesses and monitorsthe principal risks of theCompany, in accordance with thedefined policies and procedures

The Audit Committee overseasthe risk management policies and

procedures and also reviews thecredit risk of the Company

The Asset Liability Management

Committee reviews riskmanagement policies in relationto various risks includingliquidity, interest rate, investment

policies and strategy

We have also appointed anumber of audit firms across thecountry to review and audit our

branch operations and their auditreports are reviewed by the AuditCommittee

Performance of MMFSL in the Year 2008

Mahindra Finance Top Line grew by 15% at Rs.988 crores

Disbursement up by 7% at Rs. 4843 crores


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April to December08 ( 9 months) Results Highlights

Total Income up by 15% at Rs. 987.80crores

PAT up 5% to Rs 109.73 Crores


Q3 Highlights :

Total Income up by 11% at Rs. 357.74 crores

PAT up 6% at Rs .45.61 crores

Press release from Mumbai on January 23, 2013 presented the performance

of Mahindra Finance as: Mahindra & Mahindra Financial Services Ltd

(Mahindra Finance), a leading player in providing financial services in the rural

and semi-urban markets, has registered a growth of 15% in its consolidated

Income at Rs. 987.80 Crores for the first 9 months period (April t o December08)

as compared to Rs. 858.36 crores registered during similar period in the previous

year. Profit After Tax (PAT) for this period stood at Rs 109.73 Crores, up by 5%

from Rs 104.23 Crores as compared to the same period of the previous year.

During the third quarter, the Companys income was at Rs.357.74 crores as

against Rs. 321.53 crores for similar period in the last year. The Profit After Tax

(PAT) stood at Rs. 45.61 crores as against Rs.43.13 crores in the previous year.


59/89

The Companys disb ursement registered a growth of 7% at Rs. 4843 crores for the

first nine months period as compared to Rs.4546 crores during last year. The

Company continues to be the largest retail financier for Mahindra range of

vehicles and tractors. Taking full advantage of the wide branch network spread

across semi-urban and rural markets coupled with encouraging cash flow from the

rural centres, the Company has been able to reduce the impact of the pressure of

economic meltdown witnessed in this quarter.

Performance of Mahindra Finance in the Year 2013

Quarter 1

Consolidated Q1 PAT up by 52% at Rs.43 crores,

Consolidated

Q1 Highlights F10

Total Income up by 10.61% at Rs. 336 crores

PAT up by 52.48% at Rs. 43.16 crores

Standalone

Q1 Highlights F10

Total Income up by 10% at Rs. 329.31 crores

PAT up by 49.48% at Rs. 40.00 crores

Press release from Mumbai on July 27, 2013 describes the performance as:Mahindra & Mahindra Financial Services Ltd (Mahindra Finance), a leading


60/89

player in providing financial services in the rural and semi-urban markets, has

registered on a standalone basis a growth of 10% in its Total Income at Rs. 329.31

crores during the first quarter ended 30th June, 2013 as compared to Rs. 299.43

crores during the same period previous year. The company made a Profit After

Tax (PAT) during the quarter ended 30th June, 2013 of Rs 40.00 crores, an

increase of 49.48% from Rs. 26.76 crores for the same period previous year.

During the period, the Company increased its focus on NPA reduction and funds

from various sources were raised at very competitive rates bringing down the

overall cost of borrowings thereby resulting in increased PAT during the quarter.

The Companys disbursement registered a growth of 8% at Rs. 1617 crores for the

first quarter ended 30th June, 2013 as compared to Rs.1496 crores during the

same period previous year. The Company continues to be the largest retail

financier for Mahindra range of vehicles and tractors.

On a consolidated basis the Total Income for the quarter ended 30th June, 2013

increased by 10.61% to Rs.336.00 crores from Rs.303.78 crores & the Profit After

Tax (PAT) increased by 52.48% to Rs.43.16 crores from Rs. 28.30 crores in thecorresponding period of the previous year.

SUBSIDIARIES

Mahindra Insurance Brokers Limited (MIBL)

During the first quarter, MIBL registered a growth of 23% in its income at

Rs.7.70 crores as against Rs.6.23 crores in the previous year. The profit after tax


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(PAT) also rose by 53% at Rs. 2.95 crores as against Rs.1.92 crores registered for

the same period a year ago.

Mahindra Rural Housing Finance Limited (MRHFL)

MRHFL has disbursed Rs.11.99 crores during the three months period ended

June13 as against Rs.4.75 crores disbursed during the same period a year ag o.

The Company presently operates in Western and Southern Regions. The

Company made a profit of 0.19 crore during the first quarter ended 30th June,

2013 as compared to loss of Rs.0.38 crore made during the quarter ended 30th

June, 2008.

Mahindra Finance Q4 PAT up by 43% at Rs. 108 crores, proposes a

dividend of Rs. 5.50 per share

Standalone

Q4 Highlights

Total Income up by 10% at Rs. 398 crores

PAT up by 43% at Rs. 108 crores

F-09 - Results : Highlights





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Consolidated

Q4 Highlights



F-09 - Results : Highlights



Press Release from Mumbai on April 22, 2013 about the recent

performance of MMFSL as: Mahindra & Mahindra Financial Services Ltd

(Mahindra Finance), a leading player in providing financial services in the rural

and semi-urban markets, has registered on a standalone basis a growth of 10.07%

in its Total Income at Rs. 397.69 crores during the quarter ended 31st March,

2013 as compared to Rs. 361.30 crores during the same period previous year.The company on a standalone basis made a Profit After Tax (PAT) during the

quarter ended 31st March, 2013 of Rs 108.04 crores, an increase of 43.30% from

Rs. 75.39 crores for the same period.

The Companys Total Income on a standalone basis for the year ended 31st

March, 2013 increased by 12.86% to Rs. 1384.66 crores from Rs. 1226.80 crores


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during the previous year. The Profit After Tax (PAT) increased by 21.18% to Rs.

214.52 crores from Rs. 177.02 crores in the previous year.

The Companys disbursement registered a growth of 7% at Rs. 6281 crores for the

financial year ended 31st March, 2013 as compared to Rs.5850 crores during last

year. The Company continues to be the largest retail financier for Mahindra range

of vehicles and tractors.

On a consolidated basis the Total Income during the year ended 31st March, 2013

increased by 13.24% to Rs.1400.45 crores from Rs.1236.65 crores in the previous

year. The Profit After Tax (PAT) for the same period increased by 21.28 % to Rs.

219.69 crores from Rs. 181.14 crores. The Consolidated Income for the quarter

ended 31st March, 2013 increased by 10.27 % to Rs.401.51 crores from

Rs.364.10 crores & the Profit After Tax (PAT) increased by 42.97% to Rs.109.96

crores from Rs. 76.91 crores.

The Board of Directors has recommended a Dividend of Rs.5.50 per share on

equity of Rs. 10/ each as against Rs.4.50 per share declared last year.

Our disbursement and collection both have been very encouraging in the

last quarter. The cash flow from rural segment continues to be steady, said

Ramesh Iyer, Managing Director, Mahindra Finance.

Even during the financial tightness, we were able to tie -up funds required

to meet our business demands at competitive price. The Company was able


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to discharge all its liabilities without a single day of default. said, Mr. V.

Ravi, Chief Financial Officer, Mahindra Finance.

SUBSIDIARIES

During the year ended period, the Companys insurance broking business

(Mahindra Insurance Brokers Limited) registered a growth of 28.55% in its

income at Rs.23.15 crores as against Rs. 18.01 crores in the previous year. The

profit after tax (PAT) also rose by 30.44% at Rs. 6.47 crores as against Rs.4.96

crores registered during last year.

The Companys rural housing business (Mahindra Rural Housing Finance

Limited) has disbursed Rs.43.39 crores during the twelve months period with

operations from Western and Southern Regions.

SUBSIDIARIES

During the nine months period, the Companys insurance broking business

(Mahindra Insurance Brokers Limited) registered a growth of 41% in its income

at Rs.17.23 crores as against Rs. 12.20 crores in the same period of the previous

year. The profit after tax (PAT) also rose by 44% at Rs. 4.28 crores as against Rs.

2.97 crore registered during the nine month period of the last year.

The Companys rural housing business (Mahindra Rural Housing Finance

Limited) has disbursed Rs.31.42 crores during the nine months period with

operations from Western and Southern Regions. During the third quarter, National

Housing Bank took a stake of 12.5% in the Company.


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The project was developed under the leadership of Mr. Suresh Shanmugam and

demonstrates the benefits of deploying large-scale IT systems both within the

organisation as well as outside business environment. MF Connect 3000 has

been designed in line with Mahindra Groups c ustomer centricity approach. As a

leading player in rural finance, MMFSL has always been in the forefront of

innovation with products that benefit a larger customer base.

MF Connect 3000 works with the help of a hand held device referred to as a

mini computer. The software & process have been developed in-house.

The service level to the customer is substantially enhanced in the rural geography

through the hand held device capability and it also has the ability of covering our

CRM initiatives. To & fro communication between the corporate office and the

field level is on real time basis. It is a one-of-its-kind process in the industry.

In turn, MMFSL benefits by eliminating duplication of work; mapping incentives

& performances on real time basis; security of critical data in the central server;

lower IT administration and support cost; complete monitoring of cash flow in the

market; and a robust control system.


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OBJECTIVES

With an objective to make the investors aware of functioning of mutual

funds and other investments, an attempt has been made to provide information in

question-answer format which may help the investors in taking investment

decisions.

To find out the benefits given to the investor by Mahindra Finance

1-To know the benefits getting by promoting Mutual Fund of Mahindra Finance

2-To find out the role of Mutual Fund and FD in improvement of the growth of

Mahindra Finance.

3-To find out the Risk factor in investment in Mahindra Finance.

4-To find out the awareness of Financial Services of Mahindra Finance.


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RESEARCH

METHODOLOGY

Research Problem:

The research problem was to find out Financial Services like Fixed

Deposit & Mutual Fund of Mahindra finance in Market and Investors

Perception. The research conducted was descriptive in nature.

Research Design:

The research problem is the preparation of the design of the research

project, popularly known as the Research Design .

A research design is the arrangement of conditions for collection and

analysis of data in a manner that aims to combine relevance design is the

conceptual structure within which research is conducted.

Sample Design:

The sample was constructed in which the respondents were in adolescence.

a) Area Selected for research:

The survey was conducted in the Varanasi city.


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b) Sampling Units:

Each respondent was considered as a single unit in the survey.

c) Sampl e size:

The sampling was done taking 100 units

Collection Of Data:

The data that is used for the survey is primary data i.e., first hand data is

used. The method used for collection of data is through questionnaire

method. The questions were asked related to the problems and feedback

was received.


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FINDINGS AND

INTERPRETATION

Q.1 Have you invested in Services of Mahindra Finance?

OPTIONS No. OF RESPONDENTS PERCENTAGE

YES 92 92%

NO 8 8%

TOTAL 100 100%

Interpretation

From the above diagram, it can be interpreted that investment in the

Mahindra Finance is 92%. Respondents saying no is 8%. It shows a

good indication towards the Mahindra Finance market.

0

20

40

60

80

100

No. Of

Respondents In%

92

8

Yes No


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Q.2 If yes, you have invested in

OPTIONS No. OF RESPONDENTS

PERCENTAGE

Fixed Deposit 25 25%

Mutual Fund 36 36%

Both 28 28%

No Answer 11 11%

TOTAL 100 100%

Interpretation

It can be assumed from the above bar diagram that among 100

respondents 25% have interest in investing in FD, 36% are invested in

mutual funds, 28% for investing in both and rest 11% are those whohave not made any investment.

0

5

10

1520

25

30

35

40

Percentage

F D

Mutual Fund

Both

No Answer


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Q.3 Are you satisfied with your investment?

OPTIONS PERCENTAGE

Yes 83%

No 17%

TOTAL 100%

Interpretation

From the above diagram it can be seen that there are diversified interest

of the respondents which drives them towards the Mahindra Finance .

83% are satisfied with there investment in Mahindra Finance and

17%(including those who had not invested in Mahindra Finance) are

not satisfied with their investment.

0

10

2030

4050

6070

80

90

Percentage

Yes

No


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Q.4 If you have invested in Mutual Fund , are you happy with the growth rate

of price?

OPTIONS PERCENTAGE

Yes 58%

No 22%

To an extent 20%

TOTAL 100%

Interpretation

The diagram shows that 58% of the respondents are happy with the

growth in the market price of their Mutual Fund; 22% said they are not

happy and 20% said that to an extent there investment is giving the

returns are nice.

0

10

20

30

40

50

60

No. of Respondents in%

58

YesNo

To an extent


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Q.5 In which sectors () you have invested your money?

OPTIONS PERCENTAGE

Mutual Fund 51%

Fixed Deposit 39%

Others 10%

TOTAL 100%

Interpretation

The respondent seems to be very diversified and investment are done

after deep thinking. 51% of respondent agreed that they have invested

in Mutual Fund; 39% says their investment is in F D and 10% for

others.

Mutual fund

Fixed Deposit

Others


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Q.6 Have made any investment in Mutual Funds?

OPTIONS PERCENTAGE

Yes 84%

No 16%

TOTAL 100%

Interpretation

The pie chart shows that almost maximum number of public are

interested in investing in mutual funds of Mahindra Finance. The percentage also says that which is 84%. 16% have not made any

investment in mutual fund as they have invested in shares or are new in

this market

Yes

No


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Q.7 If yes, in which fund you have invested?

OPTIONS PERCENTAGE

Mahindra Finance 64%H.D.F.C 38%I.C.I.C.I 51%Kotak 28%Tata 15%Others 42%

Interpretation

In the above diagram we can get a rough picture of the respondents who

have made investment in mutual fund. In the sample size of 100 64%

have invested in Mahindra Finance , 38% in HDFC, 51% in ICICI,

28% in Kotak, 15% in Tata, 42% in others. In others the option mostly

given by respondents are Reliance, Birla, Franklin.

0

10

2030

40

50

60

70

No. of Respondent in %

64

38

51

28

15

42

Mahindra Finance

HDFC

ICICI

Kotak

Tata

Others


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Q.8. What is your option in which you have invested in Mahindra Finance?

OPTIONS PERCENTAGE

Growth 22%

Dividend-Reinvest 35%

Dividend Payout 43%

TOTAL 100%

Interpretation

In the above bar chart shows that 43% of the respondent are interested

in Dividend Payout option, 35% in dividend reinvest and 22% opted for

growth.

010

20304050

No. of Respondents in %

22

3543

Growth

DividendReinvest

DividendPayout


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Q.9. Investment you made in Mahindra Finance is

OPTIONS PERCENTAGE

One-time 64%

S.I.P 36%

TOTAL 100%

Interpretation

From the above graph it shows that 64% of the respondent prefers

investing the amount one time; and 36% are interested in investing SIP

(Systematic Investment Plan).

0

10

20

3040

50

60

70

Onetime SIP

64

36


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Q.10 What is the S.I.P amount you pay each month?

OPTIONS PERCENTAGE

500-1000 74%

1000-2000 12%

Others 14%

TOTAL 100%

Interpretation

The graph shows that the respondent invests their money mostly in the

monthly installment amounting to Rs. 500-1000. The percentage of the

investors are 74%. For amount Rs. 1000-2000 the percentage is 12%

and for others it is 14%.

0

10

2030

40

50

60

70

80

Percentage

500-1000

1000-2000

Others


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Q.11 If your option is dividend, then the percentage dividend by AMC is

OPTIONS PERCENTAGE

10% 67%

20% 5%

Dont Know 28%

TOTAL 100%

Interpretation

According to this bar graph 67% of the respondent said that they get

dividend at the rate of 10%. 5% said that the dividend given by their

AMC is 20% and 28% says that they dont know the rate of dividend.

0

10

20

30

40

50

60

70

Percentage

10%

20%

Dont Know


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Q.12 Do you receive the statement of your investment regularly in Mahindra

Finance?

OPTIONS PERCENTAGE

Yes 76%

No 24%

TOTAL 100%

Interpretation

The respondents are more sincere about getting the statement of their

investment. 76% says they get the statement regularly and 24% says

they dont get statement.

0

10

20

30

40

50

60

70

80

Percentage

Yes

No


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Q.13. You make investments in funds of Mahindra Finance

OPTIONS PERCENTAGE

Through Broker 83%

Directly 17%

TOTAL 100%

Interpretation

The above graph shows that 83% investors do their investment through

brokers and 17% directly.

0102030405060708090

Percentage

Through broker

Directly


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Q.14. Are the other services provided by the AMC/Trustee of your fund in

Mahindra Finance is satisfactory

OPTIONS No. OF RESPONDENTS PERCENTAGE

YES 35 35%

NO 15 15%

To an extent 50 50%

TOTAL 100 100%

Interpretation

The above diagram exhibits that 35% of the respondent believes that

other services provided by the AMC/Trustee is satisfactory. Theyget

the statement from the AMCs. Whereas 15% says the services are not

satisfactory or which do not meet there requirements. Large number of

people says that the services provided by the AMC are satisfactory toan extent.

Yes

No

To an Extent


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Q.15 In the present market scenario, investment in mutual fund is better than

shares because

OPTIONS PERCENTAGE

Less Risk 33%

Nice Return 14%

Easy to Understand 28%

All Three 25%

TOTAL 100%

Interpretation

From the above graph it can be conclude that the investor thinks that

investing in mutual fund is better than investing in shares. They feel

that there is less risk in mutual fund in comparison to shares. The

percentage tends to 33% for Less risk, 145 for Nice return, 28% foreasyto understand, 25% for All three.

0

5

10

15

20

25

30

35

Percentage

Less Risk

Nice Return

Easy Return

All Three


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CONCLUSIONS

It is well known that now-a-day, Services of Mahindra Finance like mutual fundsand Fixed Deposit are most popular and safe parameter for an investor to invest.

Keeping the present and future aspects regarding the mutual funds in the India, it

is easily concluded that this market will give enough to an investor for long

period.

The Sharpe Index model is easily understood and helps investors to decide which

mutual funds are performing well and which funds are not.

Instead of concluding anything, I would like to show the comparisons of the

various investments opportunities concerning their safety, interest rate, liquidity,

etc. through following table:

INSTRUMENTS RETURN SAFETY VOLATILITY LIQUIDITY

STOCKS HI LO HI HI / LO

BONDS MOD HI MOD MOD

FIXED

DEPOSITS

LO HI LO HI

MUTUAL

FUNDS

HI HI MOD HI

Where;

HI= High,

LO= Low,


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MOD= Moderate.

Now it depends from person t